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HomeMy WebLinkAbout04-12-2017 Administration Committee Agenda Orange County Sanitation District Wednesday, April 12, 2017 Regular Meeting of the 5:00 P.M. ADMINISTRATION Administration Building COMMITTEE Board Room 10844 Ellis Avenue Fountain Valley, CA 0 714 593-7433 AGENDA CALL TO ORDER: PLEDGE OF ALLEGIANCE: DECLARATION OF QUORUM: (Clerk of the Board) PUBLIC COMMENTS: If you wish to address the Committee on any item, please complete a Speaker's Form (located at the table outside of the Board Room) and submit it to the Clerk of the Board or notify the Clerk of the Board the item number on which you want to speak. Speakers will be recognized by the Chairman and are requested to limit comments to three minutes. REPORTS: The Committee Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Committee Members. These reports are for information only and require no action by the Committee. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: CONSENT CALENDAR: The Consent Calendar Items are considered to be routine and will be enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve Minutes of the March 8, 2017 Administration Committee Meeting. 04/12/2017 Administration Committee Agenda Page 1 d3 2. FINANCIAL INFORMATION SYSTEM PURCHASE ORDER CONTRACT RENEWAL (Lorenzo Tyner) RECOMMENDATION: Recommend to the Board of Directors to: A. Approve a five-year Purchase Order Contract with Oracle America, Inc. for an annual amount of$92,143,for a total not to exceed amount of$460,715, commencing July 1, 2017 through June 30, 2022; and B. Approve a contingency of $46,072 (10%). 3. PURCHASE OF RADIO COMMUNICATION EQUIPMENT AND SERVICES (Lorenzo Tyner) RECOMMENDATION: Recommend to the Board of Directors to: A. Authorize an additional $400,000 to sole source Purchase Order No. 105821-OB with Motorola Solutions utilizing Orange County Price Book Agreement No. MA060-15011560, for purchases of equipment, services, and repairs,for a total amount not to exceed $480,000 for the period ending May 20, 2020; B. Authorize an immediate purchase of equipment and services for Orange County Sanitation District's Motorola radio systems, for a total amount of $148,613, plus applicable tax and freight; and C. Approve a contingency of $14,861 (10%). NON-CONSENT: None. INFORMATION ITEMS: 4. FY 2017-18 BUDGET UPDATE (Lorenzo Tyner) 5. BIOSOLIDS MASTER PLAN, PROJECT NO. PS15-01 INFORMATION UPDATE (Rob Thompson) CLOSED SESSION: None. 0411 M017 Administration Committee Agenda Page 2 of 3 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: The next Administration Committee meeting is scheduled for Wednesday, May 10, 2017 at 5:00 p.m. Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at (714)593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10a44 Ellis Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item,including any public records distributed less than 72 hours prior to the meeting to all,or a majority of the Board of Directors,are available for public inspection in the office of the Clerk of the Board. Agenda Description: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Kelly A.Lore Clerk of the Board (714)593-7433 kloreCcaomd.com For any questions on the agenda, Committee members may contact staff at: General Manager James Herberg (714)593-7300 iherbemfglocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 mhirelli(g3ocsd.com Director of Finance and Lorenzo Tyner (714)593-7550 Ilynenttiloosd.cem Administrative Services Director of Human Resources Celia Chandler 714 593-7202 cchandler ocsd.com 04/12/2017 Administration Committee Agenda Page 3 of ITEM NO. 1 MINUTES OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, March 8, 2017 at 5:00 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was called to order by Committee Chairman Wanke on March 8, 2017 at 5:02 p.m. in the Administration Building of the Orange County Sanitation District. Committee Vice-Chair Wagner led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Chad Wanks, Chair Jim Herberg, General Manager Donald P. Wagner, Vice-Chair Bob Ghirelli, Assistant General Manager Jim Ferryman Celia Chandler, Director of Human Resources Peter Kim Jim Colston, Director of Environmental Services Al Krippner Rob Thompson, Director of Engineering Steve Nagel Ed Torres, Director of Operations & Maintenance Teresa Smith Lorenzo Tyner, Director of Finance & Scott Peotter Administrative Services Erik Peterson (Alternate) Tina Knapp, Deputy Clerk of the Board Greg Seboum, Board Chair Mark Esquer David Shawver, Board Vice-Chair Al Garcia Randall Kleinman COMMITTEE MEMBERS ABSENT: Rebecca Long Glenn Parker Mark Manzo Sal Tinajero Kathy Millea Nasrin Nasrollahi James Spears Mike White Paula Zeller OTHERS PRESENT: Kendra Carney, Associate General Counsel Mike Simmons, Alliant Insurance Services Karen Worden, Alliant Insurance Services Robert Lowe, Alliant Insurance Services PUBLIC COMMENTS: None. REPORT OF COMMITTEE CHAIR: Committee Chairman Wanke did not provide a report. 03/0a/2017 Administration Committee Minutes Page 1 of4 REPORT OF GENERAL MANAGER: General Manager Jim Herberg reminded the Committee that Honor Walk nominations are due next week, on March 141h, and that the second Board Orientation is being held on Wednesday, March 15th. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: Director of Finance and Administrative Services Lorenzo Tyner did not provide a report. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED AND DULY CARRIED TO: Approve Minutes of the February 8, 2017 Administration Committee Meeting. AYES: Ferryman, Kim, Krippner, T. Smith, Peotter, Peterson (Alternate), Seboum, Shawver, Wagner, and Wanke NOES: None ABSTENTIONS: Nagel ABSENT: Parker and Tinajero Consent Calendar Item No. 2 was pulled from consideration and, therefore, no action was taken. 2. PURCHASE OF RADIO COMMUNICATION EQUIPMENT AND SERVICES (Lorenzo Tyner) RECOMMENDATION: Authorize the purchase of equipment and services from ComSerCo, Inc. for Motorola radio systems, for a total amount not to exceed $161,000.00, to include all tax and freight in accordance with Ordinance No. OCSD47, Section 2.03(B) Cooperative Purchases. NON-CONSENT: None. INFORMATION ITEMS: Committee Chairman Wanks requested Item No. 4 be heard at this time. 4. STATUS OF 2017-18 PROPERTY LIABILITY INSURANCE RENEWALS (Celia Chandler) Director of Human Resources Celia Chandler introduced this item. Ms. Chandler introduced Mike Simmons from Alliant Insurance Services, who provided an 03/0a/2017 Administration Committee Minutes Page 2 of 4 overview of the renewals of the OCSD major insurance policies for the upcoming year. Mr. Herberg indicated that this item will be considered for approval by the Board of Directors in the next couple of months. 3. FY 2017-18 ORANGE COUNTY SANITATION DISTRICT BUDGET UPDATE (Lorenzo Tyner) Mr. Tyner briefly introduced this item and Mike White, Controller, provided an informative PowerPoint presentation that included a review of the four major categories of revenues: fees & charges, general income, other/interagency, and debt proceeds. Mr. White also reviewed the reserve policy and criteria. 5. ORANGE COUNTY SANITATION DISTRICT COLLECTIONS, OPERATIONS AND MAINTENANCE OF OCSD FACILITIES (Ed Torres) Director of Operations and Maintenance Ed Torres introduced Mark Esquer, Engineering Manager, and Nasrin Nasrollahi, Engineer, who provided an informative PowerPoint presentation regarding operations and maintenance of OCSD facilities and the collection system. Mr. Esquer reviewed the OCSD service area and wastewater collection system, collections system asset replacement value, chemical dosing locations, and provided an overview of cleaning methods. Ms. Nasrollahi presented information regarding waste resource recovery, steps in the treatment process, the methane gas recovery process, odor control, 2015-16 operating expenses, and future flows for the Groundwater Recovery System (GWRS). Committee Vice-Chair Wagner departed the meeting at 6:05 p.m. 6. CAPITAL IMPROVEMENT PROGRAM CONTRACT PERFORMANCE REPORT (Rob Thompson) Director of Engineering Rob Thompson introduced this item and reviewed the information contained in the report for the period ending December 31, 2016. Mr. Thompson indicated that this report will be provided to the Board of Directors on a quarterly basis. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. 03/0a/2017 Administration Committee Minutes Page 3 of 4 ADJOURNMENT: Committee Chair Wanks declared the meeting adjourned at 6:12 p.m.to the next regularly scheduled meeting of Wednesday, April 12, 2017 at 5:00 p.m. Submitted by: Tina Knapp Deputy Clerk of the Board 03/Oa/2017 Administration Committee Minutes Page 4 of 4 ADMINISTRATION COMMITTEE Meeting Dare TOBd. Dil. 04/12/17 0 Of4/26/17 AGENDA REPORT Item Number Item Number z Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Administrative Services SUBJECT: FINANCIAL INFORMATION SYSTEM PURCHASE ORDER CONTRACT RENEWAL GENERAL MANAGER'S RECOMMENDATION A. Approve a five-year Purchase Order Contract with Oracle America, Inc. for an annual amount of $92,143, for a total not to exceed amount of $460,715, commencing July 1, 2017 through June 30, 2022; and B. Approve a contingency of$46,072 (10%). BACKGROUND The Orange County Sanitation District (Sanitation District) has been using JD Edwards Financial Information System (Accounts Payable, Accounts Receivable, Fixed Assets, General Accounting, Human Resources, Job Cost, Payroll, Procurement) since 1997. The Sanitation District upgraded its JD Edwards system to the latest version in 2016 and intends to continue using the system for the long term. The Purchase Order Contract ensures that we can continue to operate the Financial Information System (FIS)while the underlying computer operating and database systems change overtime. Oracle America, Inc. owns and supports JD Edwards and allows customers who commit to longer terms to keep the annual costs level for up to five years while still being able to pay the fee quarterly in arrears. RELEVANT STANDARDS • Maintain and Support Enterprise Asset and Financial Management Systems • Maintain a proactive asset management program • Efficiency efforts reduce the cost to provide the current service level or standard PROBLEM The current Purchase Order Contract for our FIS expires on June 30, 2017. This Purchase Order Contract provides support, updates, and tax and regulatory compliance for our entire financial system. The Sanitation District will face 3% annual increases unless we commit to a multiyear year term. Page 1 of 3 PROPOSED SOLUTION Commit to a five-year term to maintain a fixed support cost of $92,143.00 per year, equivalent to a total of $460,715 for five years, versus a 3% price increase per year, equivalent to a five-year total estimated at$489,199. Below is the comparison of payment and schedule of savings: With 5-Year Without 5-Year Year Commitment Commitment Savings 2017/2018 $92,143 $92,143 $0 2018/2019 $92,143 $94,907 $2,764 2019/2020 $92,143 $97,754 $5,611 2020/2021 $92,143 $ 100,687 $8,544 2021/2022 $92,143 $ 103,708 $ 11,565 Total $460,715 $489,199 $28,484 TIMING CONCERNS The current Purchase Order Contract term will expire on June 30, 2017; renewal must be completed prior to June 30, 2017. We need support for our FIS, as well as tax and regulatory compliance since we run our payroll within the system. The next version of the system is expected to be released in April 2019. The Purchase Order Contract will also entitle us to this new version. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District will pay a 3% yearly increase in support costs for each one-year term for the next five years. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Oracle America, Inc. is listed as a sole source on the Board-approved Original Equipment Manufacturer (OEM) list. Oracle America, Inc. is the only vendor that can provide upgrades to the system since it is their proprietary system. We have been operating this FIS since 1997. These upgrades are important since they ensure legal and regulatory compliance and compatibility with the underlying operating and database systems. CECIA N/A Page 2 of 3 FINANCIAL CONSIDERATIONS No financial impact since the Purchase Order Contract is for set annual amounts paid quarterly in arrears regardless if the term is one year or five years and funds are included in the current budget. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.corn with the complete agenda package: N/A Page 3 of 3 ADMINISTRATION COMMITTEE Meng D310 TOBE. Dir. 04/lti12/17 04/26/1Or7 AGENDA REPORT Item Item Number 3 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: PURCHASE OF RADIO COMMUNICATION EQUIPMENT AND SERVICES GENERAL MANAGER'S RECOMMENDATION A. Authorize an additional $400,000 to sole source Purchase Order No. 105821-OB with Motorola Solutions utilizing Orange County Price Book Agreement No. MA060-15011560, for purchases of equipment, services, and repairs, for a total amount not to exceed $480,000 for the period ending May 20, 2020; B. Authorize an immediate purchase of equipment and services for Orange County Sanitation District's Motorola radio systems, for a total amount of $148,613, plus applicable tax and freight; and C. Approve a contingency of$14,861 (10%). BACKGROUND In 2015, mobile phones were issued to several maintenance staff in lieu of handheld radios. Not all maintenance staff at both treatment plants have access to handheld radios and, as such, cannot communicate directly with operations staff in support of the normal and emergency operations of the treatment plants. During normal maintenance activities, staff communicates with operations staff via mobile phone to Operations Center staff, where requests for operations support are relayed via handheld radio to the operator in the field. During emergency conditions, maintenance staff utilize cell phones or"runners", instead of direct radio-to-radio communication, to communicate and coordinate maintenance activities with operations staff. For the next three years, we anticipate new/additional radio equipment and services requirements, as well as replacement of obsolete and/or repair of broken devices to support our day-to-day operations and maintenance activities. Motorola equipment and services pricing are in accordance with Orange County Price Book Agreement No. MA 060-15011560. Motorola has been identified as an authorized sole source. RELEVANT STANDARDS Efficiency efforts reduce the cost to provide the current service level or standard Maintain a proactive asset management program Page 1 of 3 Maintain a culture of improving efficiency PROBLEM The limited number of radios issued to maintenance staff is an impediment to directly communicate with operations staff during the normal business hours and especially during an emergency. While mobile phones have been issued to maintenance staff, communicating from a mobile device to a handheld radio is not possible, causing delay and a high probability of communication breakdown. PROPOSED SOLUTION Add funds to blanket PO# 105821-OB for the immediate procurement and distribution of 114 digital handheld radios to maintenance staff located at both treatment plants for continuous radio-to-radio communication among staff during normal business activities and in the event of emergency conditions. Additional funds will also cover new/additional radio equipment and services requirements, as well as replacement of obsolete and/or repairs of broken devices for the next three years, until 2020. TIMING CONCERNS As part of the Operations & Maintenance department's transition to combined operator and maintenance craft area teams in January 2017, efficient communication plays an important role in improving the department's efficiency while addressing maintenance activities in both treatment plants. Area teams are expected to coordinate planned activities during each shift across multiple plant locations. The continued practice of relaying messages by cell phone, and then on to an operator by radio, will inhibit the expected efficiency gains through direct maintenance technician to operator communication. RAMIFICATIONS OF NOT TAKING ACTION A communications bottleneck will limit the efficiency of combined maintenance and operator area team collaboration (messages relayed through the Operations Center) during the normal operation of the treatment plants. During emergency operation of the treatment plants, communication between maintenance and operations staff is severely limited and relying on "runners' to communicate between staff members may cause potential communication breakdown and delayed response to calls. PRIOR COMMITTEE/BOARD ACTIONS July 2014 - Administrative Committee approved Minute Order, Item No. 4; Cooperative Purchase Agreement with Motorola. December 2016 - Board approved Minute Order, Item No. 12; Motorola identified as authorized sole source for the procurement of radios. Page 2 of 3 ADDITIONAL INFORMATION Motorola digital radio handsets can be configured to provide safety features to maintenance staff members in the field who operate individually or in remote locations. Such features include "man down" notification, GPS and emergency call features, to list a few. The optional safety features of the Motorola digital radio system provide an additional layer of safety to staff members. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. A budget transfer of unexpended funds will be executed to fund this procurement. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.corn with the complete agenda package: N/A Page 3 of 3 ADMINISTRATION COMMITTEE Meeting Dare To ad.ofDir. 04/12,17 — AGENDA REPORT Itern Number Item Number 4 — Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: FY 2017-18 BUDGET UPDATE GENERAL MANAGER'S RECOMMENDATION Information Only. BACKGROUND Discussion of the Orange County Sanitation District (Sanitation District) FY 2017-18 Budget Update was initiated at the February 8, 2017 Administration Committee meeting. Additional materials are being provided to further this discussion (attached). Included in the materials are line-item expenditure details for the Operating Budget. Staff will make a brief presentation at the Committee meeting. The Budget Update, effective July 1st of this year, will be presented for re-adoption at the June 28, 2017 Board meeting. RELEVANT STANDARDS • Produce Operations and CIP budgets every two years with annual update PRIOR COMMITTEE/BOARD ACTIONS The FY 2016-17 and 2017-18 biennium budget was adopted on June 22, 2016. FINANCIAL CONSIDERATIONS The outlays for the FY 2017-18 Budget Update being proposed for re-adoption on June 28, 2017 will not exceed the amounts within the cash flow model included in the FY 2016-17 and 2017-18 Adopted Budget. ATTACHMENTS The following attachment(s) are included in hard copy and may be viewed on-line at the OCSD website (wwwocsd.com) with the complete agenda package and attachments: • FY 2017-18 Budget Update Development— Expenditure Summary • FY 2017-18 Budget Update Development—Additional Detail Page 1 of 1 2017-18 Budget Update Development - Expenditure Summary (In Millions) 2017-18 2016-17 2016-17 2017-18 Proposed Description Adopted Projected Adopted Revision 1 Salaries &Wages $66.8 $64.9 $67.6 $70.1 2 Benefits 22.5 22.4 23.0 22.3 3 Contractual Services 25.1 24.3 22.6 24.6 4 Operating Materials&Supplies 16.7 15.7 17.4 16.1 5 Repairs& Maintenance 14.3 13.6 16.2 16.5 6 Utilities 8.2 6.9 10.2 7.9 7 Professional Services 4.3 3.6 4.2 5.4 8 Other Operating Supplies 2.3 2.2 2.6 3.3 9 Administrative Expenses 1.9 1.6 1.9 2.0 10 Other Non-Operating Expenses 1.1 0.1 1.1 1.3 11 Training & Meetings 1.2 0.9 1.2 1.3 12 Research & Monitoring 0.8 0.8 0.9 0.9 13 Printing & Publication 0.3 0.3 0.4 0.4 14 Cost Allocation (19.2) (19.0) (19.4) (19.4) Net Operating Requirements $146.3 $138.3 $149.9 $152.7 2017-18 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL (In Millions) Previously Projected Adopted Proposed 2016-17 2017-18 2017-18 1) SALARIES AND WAGES $64.9 $67.6 $70.1 1a) Regular Salaries $52.4 $54.2 $56.5 Salaries for 627 full-time equivalent (FTE) positions approved in the FY 2016-17 and 2017-18 biennium budget are included in this line item. The increase is attributable to salary increases per adopted bargaining agreements that followed the adoption of this two-year budget. The Vacancy Factor was set at 5 percent based on trend information. The adopted budget included 627 FTE's. The proposed budget will include an additional 7 FTE's. The increase in cost will be included in the final budget and will be funded from the reduction of other line items. 1 b) Leave Payoffs $ 2.2 $ 2.7 $ 2.4 Leave Payoffs for retirements are anticipated to be in line with recent history reflecting retirements of long-term employees. 1c) Overtime $ 1.8 $ 1.5 $ 1.8 Overtime is proposed to remain relatively flat in FY 2017-18. Of the $1.8 million total proposed in FY 2017-187 $1.7 million is budgeted in Operations and Maintenance primarily for required overtime as the plants are in operation 24/7 (vacation, sick, shift overlap), emergencies, unscheduled maintenance, backlog, and off-shift construction support. The remaining $100,000 is budgeted in other divisions and has remained essentially the same. 2) BENEFITS $22.4 $23.0 $22.3 2a) Orange County Emp. Ret. System $10.9 $11.0 $10.7 District employees are members of the Orange County Employees' Retirement System (OCERS). The employer's required contribution rates have now remained relatively flat following the payoff of the District's unfunded actuarial accrued liability beginning in the fall of 2015 that had reached a high of close to $200 million. 2b) Group Insurance $ 9.5 $ 10.2 $ 10.3 Includes Medical, Dental, Vision, Life Insurance, Medicare, and Disability. In FY 2017- 18, the proposed group insurance budget approximates $16,427 per employee (627 proposed full time equivalent positions), a 1 percent increase over the previously budgeted amount for FY 2017-18. 1 2017-18 BUDGET UPDATE DEVELOPMENT - ADDITIONAL DETAIL (In Millions) Previously Projected Adopted Proposed 2016-17 2017-18 2017-18 2c) Benefits, Other $ 2.0 $ 1.8 $ 1.3 Includes Workers' Compensation, Tuition Reimbursement, Development Pay, and Uniform Rental. Workers' Compensation ($1.2 million in FY 2016-17 and $0.5 million in FY 2017-18) is used to maintain the level of accumulated reserves within the Workers' Compensation self-insurance funds. The Development Pay Program ($381,000) is intended to promote employee efforts that increase job knowledge, skills, and abilities. 3) OPERATING MAT'LS & SUPPLIES $15.7 $17.4 $16.1 3a) Chemical Coagulants $ 5.2 $ 5.4 $ 5.2 Anionic Polymer - Anionic polymer is added to the primary clarifiers in combination with ferric chloride to enhance primary clarifier performance. A slight reduction in unit cost of 5% will reduce costs in FY2017-18, and the projected usage will remain approximately the same at 125,600 pounds. The anionic polymer budget for FY 2017-18 is $375,000. Cationic Polymer - Cationic polymer is added to digested sludge prior to dewatering to improve the sludge and water separation process. Cationic polymer is also added to the waste activated sludge dissolved air Flotation thickeners (DAFTs) to improve solids coagulation. During FY 2017-18, usage will be lower due to the delay in the start-up of the P1-101 centrifuge project (estimated usage of cationic polymer for centrifuges is an additional 6lbs/ton more than belt presses). The cationic polymer budget for FY 2017-18 is $1.95 million, down from the previously approved amount of$2.2 million. Ferric Chloride - Ferric chloride is an iron salt which is used to increase the solids removal efficiencies in the primary treatment process and to control digester hydrogen sulfide. As the amount of ferric chloride is optimized in primary treatment, additional amounts of ferric chloride are added to the digesters to control hydrogen sulfide. The proposed ferric chloride usage for FY 2017-18 is 6,880 dry tons, at an estimated cost of $2.9 million. 3b) Odor Control $ 7.5 $ 8.7 $ 7.7 Hydrogen Peroxide - Hydrogen peroxide is used in the foul air scrubbers at the treatment facilities to control hydrogen sulfide. Usage for FY 2017-18 is estimated to be 296,000 gallons at a cost of$600,000. This is a decrease of 50% in usage of peroxide from the previously adopted budget because the newly installed bio scrubbers (P1-123 project) capture and treat larger volumes of foul air at the headworks. Sodium Hydroxide (Caustic Soda) - Caustic soda (25%) is used in the foul air scrubbers and in the District's main trunk lines (50%) tributary to the treatment plants. 2 2017-18 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL (In Millions) Previously Projected Adopted Proposed 2016-17 2017-18 2017-18 For FY 2017-18, staff proposes the usage for the scrubbers to be 194 dry tons with a budget of$148,000. The collection system usage is estimated to be 1,200 dry tons with a budget of$615,000. The total caustic soda budget for FY2017-18 is $763,000. Muriatic Acid— Muriatic Acid (Hydrochloric Acid) is used to backwash the media in the foul air scrubbers, associated piping, and pumps. This cleans deposits caused by hard water, sulfides from the reaction with the foul air, and caustic soda used in the scrubbing process. Muriatic Acid is also used as a method for cleaning polymer tanks. The projected usage for FY 2017-18 is 64,000 gallons with a budgeted cost of$35,000. Magnesium Hydroxide, Trunklines — Magnesium hydroxide reduces the formation of hydrogen sulfide in the collection system, which causes odor and corrosion. Contract services include supply, tanks and delivery equipment, operational monitoring, sampling, reporting, and on-going maintenance services for odor control chemical dosing systems within the wastewater collection and conveyance system. The revised budget for FY 2017-18 is being proposed at $1,700,000, a decrease of $379,100 from the previously approved budget due to an estimated decrease in usage based on tests conducted at Main Street Pump Station to effectively remove odor in the Airbase Trunk line. Ferrous Chloride, Trunklines — Ferrous Chloride is used in the trunks to reduce hydrogen sulfide generation. This contract provides supply, tanks and delivery equipment, operational monitoring, sampling, reporting, and on-going maintenance services for odor control chemical dosing systems within the wastewater collection and conveyance system. The usage is projected to be 4,244 dry tons in FY 2017-18, and the proposed budget is $3,300,000. In FY 2017-18, the projected budget increases to $3.3 million from the prior year projection of$2.8 million due to the planned addition of a new dosing site on the Euclid trunk sewer. Calcium Nitrate, Trunklines — Calcium nitrate is a biological approach to controlling odors in wastewater. It provides the naturally occurring bacteria with an alternate source of oxygen which, when metabolized, produces nitrogen gas as a byproduct rather than the sulfides produced by the naturally occurring sources of oxygen. This contract provides supply, tanks and delivery equipment, operational monitoring, sampling, reporting, and on-going maintenance services for odor control chemical dosing systems within the wastewater collection and conveyance system. The FY 2017-18 proposed usage is estimated to be 311,000 gallons with a budget of $900,000. Staff anticipates testing calcium nitrate at the Tiffany Pump Station (City of Garden Grove) and the Mendoza Pump Station (City of Costa Mesa). Bleach, Treatment Plant Odor Control—Bleach is used in treatment plant odor control scrubbers and has replaced more expensive chemicals. For FY 2017-18, staff proposes the usage for the scrubbers to be 643,000 gallons with an estimated budget of$386,000, 3 2017-18 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL (In Millions) Previously Projected Adopted Proposed 2016-17 2017-18 2017-18 a $126,000 increase over the previously approved budget. The increase is due to most scrubbers at Plant 1 using bleach (which reduces the use of caustic soda) and an assumed 5% price increase when the contract is rebid in September 2017. 3c) Disinfection $ 0.2 $ 0.2 $ 0.3 Sodium Hypochlorite (Bleach) — The treatment plant bleach usage is for disinfection of plant water and the control of filamentous organisms in activated sludge in the secondary treatment process. It is anticipated that the District will use approximately 500,000 gallons of process bleach in FY 2017-18 at a budgeted amount of$297,000. 3d) Tools and Safety Equipment/Tools $ 1.1 $ 1.1 $ 1.1 O&M uses 78% of these budgets with another 16% budgeted in Risk Management. Costs include various personal protective equipment items required for job safety. Reflective vests are now required in the working treatment plants and collection system, increasing expenses for safety equipment. 3e) Laboratory Chemicals and Supplies $ 0.5 $ 0.6 $ 0.6 Over 85% of this budget supports the Environmental Laboratory purchases of glassware, filtration supplies, solvents used for organic extractions, acids and bases used in metals digestion and glassware cleaning, reagents, a variety of standards used in quality assurance of the tests, specialty gases, microbiology supplies and growth media, chromatography columns, test organisms for bioassay, toxicity, and various other laboratory supplies. 3f) Gas, Diesel, and Oil $ 0.5 $ 0.6 $ 0.6 Gasoline, compressed natural gas, diesel, and oil are used in the operation of the mobile equipment, within generators and other operating equipment. The future price of gasoline and natural gas are the major impacts to these budgets. 3g) Other $ 0.7 $ 0.8 $ 0.6 Other smaller operating expenses are collectively reported within this one line item such as janitorial supplies, miscellaneous operating supplies, and property tax fees. 4 2017-18 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL (In Millions) Previously Projected Adopted Proposed 2016-17 2017-18 2017-18 4) CONTRACTUAL SERVICES $24.3 $22.6 $24.6 4a) Solids Removal $17.7 $14.0 $15.9 Biosolids — For FY 2017-18, biosolids production is estimated to be 290,000 wet tons. The cost is projected to decrease 10.2 percent in FY 2017-18 to $15.9 million from the current year projection of$17.7 million because of lower diesel prices as fuel surcharges remain low. The proposed budget for FY 2017-18 is more than the previously adopted FY 2017-18 budget due to the delay in the startup and commissioning of the sludge dewatering and odor control facilities at Plant No. 1. 4b) Other Residual Solids and Waste $ 0.8 $ 0.9 $ 1.0 The other residual solids and waste category includes disposal costs for grit and screening waste, digester cleaning waste, and hazardous materials. The Grit and Screening budget includes supplying bins to collect then haul and dispose of grit, screenings, and drying bed material to a landfill. The grit is generated from the grit chambers, and the screenings is the material collected off the bar screens. Drying bed material is typically made up of the material cleaned out of pipes in the collection system by District crews and other city crews in the District's service area. The budget for disposal of grit, screenings, and other waste is $990,000 in FY 2017-18. 4c) Groundskeeping/Janitorial/Security $ 1.7 $ 1.2 $ 2.1 The FY 2017-18 Security Services budget has increased by $880,000 based on the increased level of security services previously approved by the Board in October 2016. The proposed budgets for Groundskeeping and Janitorial Services have remained essentially the same. 4d) County Service Fee $ 0.7 $ 0.7 $ 0.7 The County Service Fee is the fee charged by the County of Orange for the inclusion of the District's sanitation fees on the County of Orange Property Tax Bill and for the collection of these fees by the County on behalf of the District. 4e) Oxygen Plant Operations $ 0.4 $ 0.4 $ 0.4 The District Oxygen Plant has been decommissioned and currently, the activated sludge plant operates solely with purchased oxygen. 4f) Temporary Services $ 0.6 $ 1.1 $ 1.2 Temporary Services are proposed to increase in FY 2017-18 from the previous year to fund journey level maintenance craft workers that will be contracted to reduce work 5 2017-18 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL (In Millions) Previously Projected Adopted Proposed 2016-17 2017-18 2017-18 backlog; and to fund Summer Crews to assist with general housekeeping, painting, and basic maintenance functions. Some functions previously approved in the FY 2017-18 adopted budget have been realigned to professional services for HVAC and lighting maintenance. 4g) Outside Lab Services $ 0.1 $ 0.3 $ 0.2 The District contracts out certain laboratory services that are not cost-efficient to perform in-house. Examples include air quality analyses, oil analyses for transformers and internal combustion engines, contaminants of potential concern, and hi-resolution mass spectroscopy. As approximately half of OCSD biosolids are reused in Arizona; contracted testing for those biosolids must meet the State of Arizona requirement for analyses to be performed in an Arizona certified laboratory. 4h) Contracted Services, Other $ 2.3 $ 4.0 $ 3.1 Over 95% of contracted services are in support of operating and maintaining the collection system and the treatment plants. Collection system services include line cleaning ($270K), closed circuit television of lines ($300K), manhole frame and cover rehabilitation and replacement ($350K), manhole structural repair and coating ($200K), sewer repair and relining ($40K), root and pest control ($20K), and traffic control ($20K). Treatment plant services include Civil Assets Management Project (CAMP)-related support services for asset assessment ($350K), industrial cleaning ($426) and coatings ($400K), and closed circuit TV inspections ($40K). 5) REPAIRS AND MAINTENANCE $13.6 $ 16.2 $ 16.5 5a) Materials & Services $11.1 $ 12.6 $ 13.6 The material and services budget supports the maintenance of the collection system and the treatment plants. Materials and services for the collections system include street overlays/manhole raising, manhole cover purchases, surveying services, and easement improvements and other materials and services ($350K). Plant maintenance materials and services include: CenGen overhaul ($1.4M), Digester cleaning ($1.05M), CenGen generator rehabilitation ($250K), emergency generator maintenance ($225K), clarifier maintenance ($300K), and electric protective relay calibration and testing ($325K). Lastly, materials and services to maintain the District fleet ($366K). The budget for basic scheduled, predictive, and preventive maintenance and emergency maintenance are included in these budgets which are proposed based on historical experience and cost trends. 6 2017-18 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL (In Millions) Previously Projected Adopted Proposed 2016-17 2017-18 2017-18 5b) Service Agreements $ 2.5 $ 3.6 $ 2.9 Service contracts are mostly either computer-related or O&M maintenance-related. Major contracts for Information Technology include IBM Software Maintenance, Microsoft Enterprise License Agreements ($292K), Maximo support ($181K), disaster recovery hardware and software support ($150K), Oracle support ($87K), and various smaller service agreements. Contractor Support Services in the Operations and Maintenance Department manages all service contracts for the maintenance of the collection system and treatment plants. These service agreements include: crane certification ($50K), engine monitoring systems ($125K), door and gate maintenance ($65K), scale certification ($9K), tree trimming ($45K), pest control ($8K), fire extinguisher and fire sprinkler certification ($91K), Uninterruptible Power Supply electrical maintenance ($105K), scaffolding ($40K), and various other plant maintenance and service maintenance agreements covering various equipment located throughout the District. Additional service maintenance agreements covering various equipment items are budgeted throughout the District. 6) UTILITIES $ 6.9 $ 10.2 $ 7.9 6a) Power $ 5.3 $ 8.5 $ 6.0 Electricity— The estimated consumption and resulting costs for electrical energy purchased from Southern California Edison for the 2017-18 fiscal year are shown below and total $5,432,000. This estimate is significantly lower than the previously estimated amount for FY 2017-18 due to delays in the anticipated start-up of the centrifuge projects at Plant Nos. 1 and Plant 2. This budgetary number contains no contingency and excludes the electricity requirements of all outlying pump stations. FY 2017-18 Item Costs (') Proposed Budget ton Value Plant No. 1 Energy Charges @$0.087 (S) $2,360,000 (kWh) $0.057 (W) Facility Related Demand (kW) @ $7.90 $285,000 Plant No. 1 Demand Charges [E22,500 (MP) @$21.25 (OP) $ 530,000 (kW) $5.58 (MP)Plant No. 1 Fixed Charges ---- $ 545,000 Total for Plant 1 $ 3,720,000 7 2017-18 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL (In Millions) Previously Projected Adopted Proposed 2016-17 2017-18 2017-18 Plant No. 2 Energy Charges 11,000,000 @$0.087 (S) $700,000 (kWh) $0.057 (W) Facility Related Demand (kW) 2,000 @ $7.70 $15,000 Plant No. 2 Demand Charges 1000 (OP) @$21.25 (OP) $ 65,000 (kW) 8,000 (MP) $5.58 (MP) Plant No. 2 Fixed Charges $ 270,000 Total for Plant 2 $ 1,050,000 Contracts Trailers and Control 145,000 @$0.22 $ 32,000 Center- P1 Total Plants $ 4,802,000 Laboratory 3,000,000 @$0.18 $ 500,000 Administration Building 720,000 @$0.19 $ 130,000 Total $ 5,432,000 The proposed budget for FY 2017-18 is lower than the previously adopted budget due to the central generation units producing more power using natural gas during summer peak usage periods, and the delay in the start-up of the P1-101 project that is estimated to use more electricity and decrease solids hauling costs. 6b) Water $ 0.6 $ 0.7 $ 0.7 Potable Water — The potable water budget includes the water supplied by the City of Fountain Valley for Plant No. 1 and the City of Huntington Beach for Plant No. 2. Approximately 5% of the potable water at Plant No. 1 is used for domestic uses and less than 1% is used for irrigation. Most of the irrigation at both plants uses reclaimed water. Less than 1% of the potable water used at Plant No. 2 is for domestic uses due to the relatively small number of employees at Plant No. 2. The projected expense for FY 2016-17 is $612,000 and the proposed budget for FY 2017-18 is $667,000. 8 2017-18 BUDGET UPDATE DEVELOPMENT—ADDITIONAL DETAIL (In Millions) Previously Projected Adopted Proposed 2016-17 2017-18 2017-18 6c) Natural Gas $ 0.6 $ 0.6 $ 0.8 The estimated natural gas to be purchased from Southern California Gas Company and gas marketer Constellation Energy for Plant Nos. 1 and 2 for fiscal year 2017-18 is shown below. FY 2017-18 Estimates Estimated Cost User Consumption Total Cost (Therms) ($ Per Therm) P1 Cen Gen Normal Operation 448,300 $0.58 $260,000 P1 Core Subscription 250,000 $0.83 $207,500 P2 Cen Gen Normal Operation 520,500 $0.58 $302,000 P2 Core Subscription 13,250 $0.83 $11,000 Total 1,232,050 $780,500 The total FY 2017-18 gas usage and unit cost is estimated slightly higher than last year. Central Generation actual gas usage was higher with operation of engines for on peak and mid peak shaving during last summer; this will be leveraged again during the next summer peak season as long as gas prices remain favorable. The "core subscription' is natural gas purchased directly from The Gas Company and used mainly for building heating and supplemental process heating. The natural gas used for Central Generation is purchased from a gas marketer, Constellation Energy, and transported through The Gas Company conveyance system at stipulated cost of $0.12/therm. This FY 2017-18 budget is somewhat higher than last year's two-year estimate for FY17/18 reflecting anticipated higher consumption in the CenGens. 6d) Telephone $ 0.4 $ 0.4 $ 0.4 Included in this line item is the funding for over 600 landlines and mobile phones for management and field staff, as deemed appropriate. 7) PROFESSIONAL SERVICES $ 3.6 $ 4.2 $ 5.4 7a) Legal Services ($1.0M) Legal services are services primarily provided by General Counsel for general legal support. Other specialized legal services from other firms are also included in this budgeted amount. 9 2017-18 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL (In Millions) Previously Projected Adopted Proposed 2016-17 2017-18 2017-18 7b) Engineering Services ($2.1M) These services augment technical support for critical projects. In FY 2017-18 requested engineering services include support for corrosion assessment; coatings and cathodic protection ($633K); engineering support staffing for civil, mechanical, and instrumentation programs; and support to maintenance projects falling under the purview of the CAMP. 7c) Advocacy Efforts ($0.2M) These are consultant services for promoting the District's interests in Sacramento and Washington D.0 concerning legislation and funding. 7d) Audit and Accounting ($0.4M) These services represent the cost for the District's independent annual financial audit and contracted internal auditing services. 7e) Software Program Consultant ($0.4M) These support costs are required to supplement programming staff as new software versions and new programs are implemented and revised; they are also in support of the SCADA/ (supervisory control and data acquisition) system for process monitoring and controlling. 7f) Other ($1.3M) Professional services also include labor and industrial hygiene services. Collectively reported within the one line item, "Other' are various smaller services including: succession planning, pre-employment testing, actuarial services, performance management consultant, local sewer service fee rate study, strategic outsourcing, development of lockout — tag-out procedures, stratus environmental groundwater extraction, OCHCA inspections, and grant applications, and an analysis of the business practices of the of maintenance support services. 8) OTHER OPERATING SUPPLIES $ 2.2 $ 2.6 $ 3.3 8a) Property and General Liability Insurance ($2.1M) The District's outside excess general liability insurance coverage is $40 million with a self- insurance retention of $500,000. The District's property insurance coverage of $1 billion for perils other than flood and earthquake, $300 million for flood, and $25 million for earthquake is subject to self-insurance retentions of $250,000 for all perils 10 2017-18 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL (In Millions) Previously Projected Adopted Proposed 2016-17 2017-18 2017-18 other than flood and earthquake, $100,000 for flood, and 5% per structure with a minimum of$5 million for earthquake. The proposed appropriation is needed to fund insurance premiums, claims, and maintain the recommended level of reserve within the general liability and property self- insurance fund. 8b) Regulatory Operating Fees ($0.7M) Payments to the Regional Water Quality Control Board for the National Pollution Discharge Elimination System (NPDES) Permit and to the South Coast Air Quality Management District for permit fees. 8c) Other ($0.5M) Other material, supplies, and services collectively reported within this one line item. 9) ADMINISTRATIVE EXPENSE $ 1.6 $ 1.9 $ 2.0 9a) Small Computer Items ($0.8M) New Computers/Notebooks/Tablets, printers, monitors, networking equipment, computer peripherals, digital equipment, PDAs, digital cameras, etc. 9b) Memberships ($0.6M) OCSD's largest membership costs are for District-wide participation in groups such as the National Association of Clean Water, the National Water Research Institute, the Water Environment Research Foundation, the California Association of Sanitation Agencies, the Southern California Alliance of Publicly Owned Treatment Works, the Association of California Water Agencies, and the Center for Demographic Research. A minor portion of these expenses is for staff memberships in professional associations. 9c) Office Supplies and Postage ($0.4M) Office supplies include such items as envelopes, letterhead, notebooks, calendars, etc. and approximately $300,000 in postage costs for the expected mailing of Proposition 218 notices to 550,000 parcels within the District's service area for potential rate increases. 9d) Other ($0.2M) Other smaller administrative expenses collectively reported within this one line item. 11 2017-18 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL (In Millions) Previously Projected Adopted Proposed 2016-17 2017-18 2017-18 10) RESEARCH AND MONITORING $ 0.8 $ 0.9 $ 0.9 10a) Environmental Monitoring ($0.4M) The budget line item for "Environmental Monitoring" includes costs associated with the District's NPDES permit-required ocean monitoring program. In addition to the funds needed to conduct the permit-required ocean monitoring program, environmental monitoring also includes operating funds and insurance fees for the District's ocean monitoring vessel, the MN Nerissa. 10b)Air Quality Monitoring ($0.1M) Periodic monitoring and analysis of air emissions requires testing from various sources including the central generation facilities, validation of emissions from continuous monitoring equipment, and source testing after CIP installation/modification (i.e. P1 trickling filters, P1 primary basin install and modifications, etc.). Periodically, there is a requirement to test the waste gas flares. 10c) Other Research ($0.4M) OCSD contributes annually to research organizations such as the Southern California Coastal Water Research Project. 11) OTHER NON-OPERATING EXPENSE $ 0.1 $ 1.1 $ 1.3 11a) General Manager Contingency ($0.7M) These funds are centrally budgeted and expended through the direct discretion and approval of the General Manager to support unanticipated District needs or requests of the Board. 11 b)Prior year Appropriations ($0.4M) Since the operating budget lapses at the end of each fiscal year, funds are needed to be set aside for contacts, purchases, commitments, and other legal obligations that have been incurred prior to June 30 in the prior year, but goods or services have not been delivered until after June 30 in the new budget year. (Projected FY 2016-17 budget reflects application of these funds.) 11c) Other ($0.2M) Other non-operating expenses and obsolete inventory are in this group of expenses. 12 2017-18 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL (In Millions) Previously Projected Adopted Proposed 2016-17 2017-18 2017-18 12) TRAINING AND MEETINGS $ 0.9 $ 1.2 $ 1.3 12a) Training ($1.1M) This category includes ongoing technical and safety training and materials for staff, required training for computerized plant monitoring, and control systems and training to allow for a more adaptive and flexible work force. Cost savings have been achieved in part through increased use of on-line training. 12b) Meetings ($0.2M) The General Manager has reviewed all meeting request budgets for necessity, duplication, and redundancy and has limited this amount to a responsible level. 13) PRINTING AND PUBLISHING $ 0.3 $ 0.4 $ 0.4 13a) In-House Publishing ($0.2M) Although the budget provides for some outside reproduction, most OCSD printing activities are completed In-house, reflecting an expanded management information system and administrative requirements, as well as continuing demand by the public and regulatory agencies for information. These activities including printing of District maps, brochures, Board reports and agenda items, budget materials, etc. 13b)Other ($0.2M) Includes outside printing and publishing expenses and notices and ads. 14) COST ALLOCATION ($19.0) ($19.4) ($19.4) This represents direct and indirect labor, benefits, materials, and services charged to the Capital Improvement Program (CIP)where the related work was performed. 13 ADMINISTRATION COMMITTEE MeebngDate To Bd.ofoil. 04/12/17 -- AGENDA REPORT I ern Number I ern Number s Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: BIOSOLIDS MASTER PLAN, PROJECT NO. PS15-01 INFORMATION UPDATE GENERAL MANAGER'S RECOMMENDATION Information Only. BACKGROUND One of eight strategic goals identified in the Five-Year Strategic Plan, approved by the Orange County Sanitation District (Sanitation District) Board of Directors (Board) in 2013, was to study future biosolids management options and solids handling facilities improvements. Biosolids are nutrient-rich treated organic material recovered through the treatment of wastewater that can be recycled as a soil amendment. Effective management of biosolids is critical to resource recovery and permit compliance. In addition, management of biosolids is the largest single-cost item in the Sanitation District's budget. In December 2015, the Board awarded a Professional Services Agreement to Black & Veatch to prepare a Biosolids Master Plan. The study identified mid- and long-term strategies for biosolids management, including facility options to generate a biosolids product that could meet future regulations for a sustainable biosolids beneficial use market. The project also evaluated the existing solids facilities and alternative technologies to make recommendations for future capital facilities improvements. In addition, this projectwill prepare and certify a Programmatic Environmental Impact Report for all recommended capital facilities to comply with the California Environmental Quality Act. In March 2017, the Draft Biosolids Master Plan was completed. Staff will present a summary of the Draft Biosolids Master Plan. RELEVANT STANDARDS • 1, 5, 20 year planning horizons • Biosolids Master Plan, Energy Master Plan • Strategic Plan • Safe beneficial reuse of Biosolids • Support Biosolids Management Program Page 1 of 2 PRIOR COMMITTEE/BOARD ACTIONS December 2015 - Approved a Professional Services Agreement with Black & Veatch to provide professional services for Biosolids Master Plan, Project No. PS15-01, for an amount not to exceed $2,965,556 and a contingency of$296,556 (10%). ADDITIONAL INFORMATION N/A CEQA The Biosolids Master Plan development is exempt from CEQA pursuant to CEQA's Class 6 Exemption for Information Collection (CEQA Guidelines Section 15306). CEQA requirements for the projects proposed by the Biosolids Master Plan will be addressed within the scope of the existing Professional Design Services Agreement. FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (wwmocsd.corn with the complete agenda package: N/A JM:sa:gc Page 2 of 2 ORANGE COUNTY SANITATION DISTRICT Agenda Terminology Glossary Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOD Biochemical Oxygen Demand CARB California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CIP Capital Improvement Program CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA U.S. Environmental Protection Agency FOG Fats, Oils, and Grease gpd Gallons per day GWR System Groundwater Replenishment System (also called GWRS) ICS Incident Command System IERP Integrated Emergency Control Plan LOS Level of Service MGD Million Gallons per Day NACWA National Association of Clean Water Agencies NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O&M Operations and Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District COBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration PCSA Professional Consultant Services Agreement PDSA Professional Design Services Agreement POTW Publicly Owned Treatment Works ppm Parts per million PSA Professional Services Agreement Glossary of Terms and Abbreviations RFP Request For Proposal RWQCB Regional Water Quality Control Board SARFPA Santa Ana River Flood Protection Agency SARI Santa Ana River Inceptor SARWQCB Santa Ana Regional Water Quality Control Board SAWPA Santa Ana Watershed Project Authority SCADA Supervisory Control and Data Acquisition system SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SRF State Revolving Fund SSMP Sanitary Sewer Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation WE&RF Water Environment& Reuse Foundation WIFIA Water Infrastructure Financing and Innovation Act WIIN Water Infrastructure Improvements for the Nation Act Activated-sludge process — A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved nutrients in the wastewater. Benthos—The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone. Biochemical Oxygen Demand (BOD) —The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. Biogas — A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. Biosolids — Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farm land or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Glossary of Terms and Abbreviations Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. Coliform bacteria —A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere used as indicators of sewage pollution. E. coil are the most common bacteria in wastewater. Collections system — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. Certificate of Participation (COP) — A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. Dilution to Threshold (DIT) — the dilution at which the majority of the people detect the odor becomes the D/T for that air sample. Greenhouse gases — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect'). Groundwater Replenishment (GWR) System — A joint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons a day of drinking quality water to replenish the local groundwater supply. Levels of Service(LOS)—Goals to support environmental and public expectations for performance. NDMA — N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership (NBP) — An alliance of the National Association of Clean Water Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S. Environmental Protection Agency (EPA). NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation in order to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. Plume—A visible or measurable concentration of discharge from a stationary source or fixed facility. Publicly-owned Treatment Works(POTW)— Municipal wastewater treatment plant. Santa Ana River Interceptor (SARI) Line — A regional brine line designed to convey 30 million gallons per day of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. Sanitary sewer — Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban run-off. Glossary of Terms and Abbreviations South Coast Air Quality Management District (SCAQMD) — Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment — Biological wastewater treatment, particularly the activated-sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. Sludge— Untreated solid material created by the treatment of wastewater. Total suspended solids (TSS)—The amount of solids floating and in suspension in wastewater. Trickling filter — A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. Urban runoff — Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. Wastewater—Any water that enters the sanitary sewer. Watershed — A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River Watershed.