HomeMy WebLinkAbout04-08-2015 Administration Committee Agenda Orange County Sanitation District Wednesday, April 8, 2015
Regular Meeting of the a 5:30 P.M.
Administration Committee - Administration Building
Board Room
10844 Ellis Avenue
Fountain Valley, CA
714 593-7433
AGENDA
PLEDGE OF ALLEGIANCE:
DECLARATION OF QUORUM:
PUBLIC COMMENTS: If you wish to speak, please complete a Speaker's Form and give it to the
Clerk of the Board. Speakers 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:
1. Approve Minutes of the March 11, 2015, Administration Committee Meeting.
INFORMATION ITEMS:
2. Procurement Process
3. OCSD Budget Update FY 2015-16
4. Capital Improvement Program (CIP) Update
041OW15 Administration Committee Agenda Page 1 of 2
5. Status Update of 2015-16 Insurance Renewals
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
ADJOURNMENT:
The next Administration Committee meeting is scheduled for Wednesday, May 13, 2015
at 5:30 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 10844 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.
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
Acting Clerk of the Board
(714)593-7433
kloreeocsd.com
For any questions on the agenda,Committee members may contact staff at:
General Manager James Herberg (714)593-7300 iherbem(rpocsd.com
Assistant General Manager Bob Ghirelli (714)593-7400 rohirelli0ocsd.00m
Director of Finance and Lorenzo Tyner (714)593-7550 ItwentDomd.com
Administrative Services
041OW15 Administration Committee Agenda Page 2 of 2
ITEM NO. 1
MINUTES OF THE
ADMINISTRATION COMMITTEE
Orange County Sanitation District
Wednesday, March 11, 2015, at 5:30 P.M.
A regular meeting of the Administration Committee of the Orange County Sanitation
District was called to order by Committee Vice-Chair Curry on March 11, 2015, at
5:30 p.m., in the Administration Building of the Orange County Sanitation District.
Committee Vice-Chair Curry led the Flag Salute.
A quorum was declared present, as follows:
COMMITTEE MEMBERS PRESENT: STAFF PRESENT:
John Withers, Chair Jim Herberg, General Manager
Keith Curry, Vice-Chair Bob Ghirelli, Assistant General Manager
Steven Choi Lorenzo Tyner, Director of Finance
Tyler Diep &Administrative Services
James Ferryman Rob Thompson, Director of Engineering
Jim Katapodis Nick Arhontes, Director of Facility Support
Peter Kim Services
Greg Mills Kelly Lore, Acting Clerk of the Board
Glenn Parker Mike White
Teresa Smith Cindi Ambrose
Sal Tinajero Jennifer Cabral
Tom Beamish, Board Chair Marc Dubois
John Nielsen, Board Vice-Chair Anne Marie Feery
Norbert Gaia
COMMITTEE MEMBERS ABSENT: Al Garcia
None. Randy Kleinman
Jackie Santos
Cori Voss
OTHERS PRESENT:
Brad Hogin, General Counsel
PUBLIC COMMENTS:
None.
REPORT OF COMMITTEE CHAIR:
Committee Vice-Chair Curry did not provide a report.
ON11/2015 Administration Committee Minutes Page 1 of 5
REPORT OF GENERAL MANAGER:
General Manager, Jim Herberg, did not provide a report.
REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES:
Director of Finance and Administrative Services, Lorenzo Tyner reported on two
violations that were received from Cal/OSHA. The first was an employee who injured
their finger while working on some fan belts. Because of the injury, OSHA fined us and
we appealed that fine, however we were unsuccessful in the appeal. The exposure is
about $22,000 and is considered a serious violation. If there is a second violation, it
could be considered willful, with a fine of about $70,000 and other possible
assessments. Mr. Tyner stated that he does not anticipate that being an issue as we
have used this particular procedure over the last 20 years with no injuries. However,
we do take the OSHA report and the health of our employees seriously, and for
prevention, have done additional training, will be putting in additional guards, and will do
what is known as a safety stand-down where we will meet with the managers and
supervisors impacted by that area, making sure they are aware of the injury and the
additional safeguards.
Mr. Tyner stated that the second violation involved the use of a crane about 18 months
ago. This involved a procedural issue, there was no injury or potential injury, however,
OSHA found that we might not have been in complete compliance with our Standard
Operating Procedures (SOP). They found a technical variance in the way we used, or
planned for the use of the crane. We are in the process of looking at that item with
OSHA and anticipate the item be settled shortly. This violation contains three items; a
procedural item with exposure in the $100-400 fine range, the second item should be
vacated as there is not enough evidence to support the violation, and the third is a
technical procedural item with exposure in the $5000 fine range.
CONSENT CALENDAR:
1. MOVED, SECONDED and DULY CARRIED TO: Approve Minutes of the
February 11, 2015, Administration Committee Meeting.
AYES: Beamish, Choi, Curry, Ferryman, Katapodis, Kim, Mills,
Nielsen, and Parker
NOES: None
ABSTENTIONS: None
ABSENT: Diep, Smith, Tinajero and Withers
03/11/2015 Administration Committee Minutes Page 2 of 5
2. MOVED, SECONDED and DULY CARRIED TO: Recommend to the Board of
Directors to: Approve the Senior Human Resources Analyst Lending Agreement
between Orange County Sanitation District (OCSD) and Costa Mesa Sanitary
District (CMSD), to contract an OCSD Senior Human Resources Analyst as the
Interim Human Resources Manager from March 21, 2015 through June 30, 2015,
as a workforce development opportunity.
AYES: Beamish, Choi, Curry, Ferryman, Katapodis, Kim, Mills,
Nielsen, and Parker
NOES: None
ABSTENTIONS: None
ABSENT: Diep, Smith, Tinajero and Withers
NON-CONSENT CALENDAR
Mr. Tyner provided a brief overview of this item. Director Parked requested information
regarding what controls are in place to provide compliance for this Ordinance. Mr.
Herberg stated the information would be provided at the next Board meeting.
3. MOVED, SECONDED and DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Introduce Ordinance No. OCSD-47, entitled "An Ordinance of the Board of
Directors of the Orange County Sanitation District, Establishing
Requirements and Procedures for the Purchase of Goods, Services, and
Public Works Projects' for first reading at the March 2015 Board meeting."
and
B. Motion to read Ordinance No. OCSD-47 by title only and waive reading of
said entire Ordinance on March 25, 2015; and
C. Set April 22, 2015, as the date for the second reading and adoption of
Ordinance No. OCSD-47; and
D. Direct the Clerk of the Board to publish summaries of the Ordinance as
required by law.
AYES: Beamish, Choi, Curry, Ferryman, Katapodis, Kim, Mills,
Nielsen, and Parker
NOES: None
ABSTENTIONS: None
03/11/2015 Administration Committee Minutes Page 3 of 5
ABSENT: Diep, Smith, Tinajero and Withers
INFORMATION ITEMS:
Director Theresa Smith arrived at 5:36 p.m.
Director Diep arrived at 5:37 p.m.
4. Status of 2015-16 Insurance Renewals
Director of Finance and Administrative Services, Lorenzo Tyner stated that
insurance renewals are brought to the Board twice during the budget process.
These preliminary assumptions are being brought to the committee prior to the
actual action needed in June.
Dennis Mulqueeny, Senior Vice President of Alliant insurance provided a brief
presentation regarding each of OCSD's four major insurances (General Liability,
Workers' Compensation; Property and Flood, and Boiler & Machinery) with
coverages designed for government entity operations and the renewal costs of
each. The possibility of earthquake insurance was also discussed.
Mr. Mulqueeny then answered questions from the Committee regarding:
marketing processes to provide quotations; earthquake insurance estimates;
previous earthquake damage; California admitted/non-admitted carriers; and
minimum standards for a carrier which is AT
Director Choi requested a rate comparison and Director Parker requested
information on non-admitted carriers and further analysis prior to required action.
Mr. Herberg and Mr. Tyner stated that the information requested would be
provided in the near future.
Committee Chair Withers arrived at 5:50 p.m.
Director Diep left the meeting at 5:50 p.m.
5. FY 2015-16 District Budget Update
Controller, Mike White provided an informative PowerPoint Presentation on the
budgeted revenue update for fiscal years 2014-15 and 2015-16, including fees
and charges, which represent the largest component of revenues, property taxes
and single family residential fees which represent OCSD's largest revenue. Mr.
White stated that there is no new money debt issuance projected.
Director Tinajero arrived at 6:00 p.m.
ON11/2015 Administration Committee Minutes Page 4 of 5
6. Workforce Planning
Human Resources Manager, Rich Spencer provided an informative PowerPoint
Presentation on Workforce Planning, which includes: organizational structure;
organizational overview; recognized employee organizations; unrepresented
employee groups; importance of workforce planning development efforts; and
workforce analysis, planning and development.
Questions were answered from Mr. Spencer regarding: percentage of internal
promotions; entry level hiring; internships; licensing; attracting higher level
employees; anticipated retiree costs; technical programs such as Santiago
Canyon College and transition and succession plans.
Director Choi left the meeting at 6:20 p.m.
Vice-Chair John Nielsen left the meeting at 6:25 p.m.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
Mr. Herberg, stated that an update on budgeted expenditures will be provided next
month.
ADJOURNMENT:
Committee Chair Withers declared the meeting adjourned at 6:34 p.m., to the next
regularly scheduled meeting of April 8, 2015 at 5:30 p.m.
Submitted by:
Kelly A. Lore
Acting Clerk of the Board
03/11/2015 Administration Committee Minutes Page 5 of 5
ADMINISTRATION COMMITTEE Neebng Dare TO ad.of Dir.
04,08,15 --
AGENDA REPORT Item Number Item Number
z
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Robert D. Ghirelli, Assistant General Manager
SUBJECT: PROCUREMENT PROCESS
GENERAL MANAGER'S RECOMMENDATION
Information Only.
SUMMARY
Staff will present an informational overview on the Procurement Process.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
N/A
CEQA
N/A
BUDGET/PURCHASING ORDINANCE COMPLIANCE
N/A
ATTACHMENT
N/A
Page 1 of 1
ADMINISTRATION COMMITTEE Meeting Date To ad.of Dir.
04/08/15 --
AGENDA REPORT em Number Item Number
3
Orange County Sanitation District
FROM: James Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: FY 2015-16 BUDGET UPDATE
GENERAL MANAGER'S RECOMMENDATION
Information Only.
SUMMARY
Discussion of the OCSD FY 2015-16 Budget was initiated at the February 11, 2015
Administration Committee meeting. Additional materials are now being provided to
further this discussion (attached). Included in the materials being provided are line-item
expense details for the Operating Budget.
The Budget will be presented for re-adoption at the June 24, 2015 Board meeting.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
N/A
CEQA
N/A
BUDGET / PURCHASING ORDINANCE COMPLIANCE
N/A
ATTACHMENTS
The following attachment(s) are attached and may be viewed on-line at the OCSD website
(www.ocsd.coml with the complete agenda package and attachments:
• FY 2015-16 Budget Summary
• FY 2015-16 Budget Development-Additional Detail
Page 1 of 1
2015-16 Budget Update Development - Expenditure Summary
2015-16
2014-15 2015-16 Proposed
Description Projected Adopted Revision
1 Salaries &Wages 62.2 64.2 65.4
2 Benefits 31.1 36.4 28.6
3 Operating Materials & Supplies 16.0 16.3 17.4
4 Contractual Services 22.8 24.5 23.8
5 Repairs & Maintenance 12.6 12.9 12.3
6 Utilities 7.7 7.8 7.8
7 Professional Services 2.5 3.1 3.5
8 Other Operating Supplies 1.6 1.8 1.7
9 Administrative Expenses 1.4 1.6 1.6
10 Research & Monitoring 0.8 0.8 0.8
11 Other Non-Operating Expenses 0.1 1.0 1.0
12 Training & Meetings 0.9 1.1 1.1
13 Printing & Publication 0.4 0.4 0.4
14 Cost Allocation (16.5) (16.9) (16.9)
Net Operating Requirements $143.6 $155.0 $148.5
2015-16 BUDGET UPDATE DEVELOPMENT - ADDITIONAL DETAIL
Previously
Projected Adopted Proposed
2014-15 2015-16 2015-16
1) SALARIES AND WAGES $62.2 $64.2 $65.4
1a) Regular Salaries $49.6 $50.5 $52.1
Salaries for 626.0 full-time equivalent (FTE) positions in FY 2014-15 projected and FY
2015-16 proposed are included in this line item, and equals the FTE approved
positions authorized in the FY 2013-14 adopted budget. The increase is attributable to
salary increases per adopted bargaining agreements. The Vacancy Factor was set at
3 percent based on trend information.
1 b) Leave Payoffs $ 2.1 $ 2.3 $ 2.2
Leave Payoffs for retirements are anticipated to be in line with recent history reflecting
a surge in retirements of long-term employees.
1c) Overtime $ 1.7 $ 1.6 $ 1.8
Overtime is proposed to remain flat at $1,776,000 in FY 2015-16. Of this total, $1.4
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
$300,000 is budgeted in other divisions and has remained essentially the same.
2) BENEFITS $31.1 $36.4 $28.6
2a) Orange County Emp. Ret. System $18.4 $23.2 $13.9
District employees are members of the Orange County Employees' Retirement
System (OCERS). The employer's required contribution rate has decreased from
36.57 percent (Plans G & H), from 34.87 percent (Plan B), and from 33.52 percent
(Plan U) in FY 2014-15 to 20.75 percent, 18.39 percent, and 17.52 percent,
respectively, in FY2015-16, a total proposed revised budget decrease of $9.3 million,
as a result of the $125 million unfunded actuarial accrued liability pay down by the
District in November of last year.
2b) Group Insurance $ 8.8 $ 9.4 $ 9.8
Includes Medical, Dental, Vision, Life Insurance, Medicare, Disability. In FY 2015-16,
the proposed group insurance budget includes approximately $15,677 per employee
(626 proposed full time equivalent positions), an estimated 4.3 percent increase over
the previously budgeted amount for FY 2015-16.
2c) Benefits, Other $ 3.9 $ 3.8 $ 4.9
Includes Workers' Compensation, Tuition Reimbursement, Development Pay and
Uniform Rental. Workers' Compensation ($0.8 million in FY 2014-15 and $1.5 million
1
2015-16 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL
Previously
Projected Adopted Proposed
2014-15 2015-16 2015-16
in FY 2015-16) is used to maintain the level of accumulated reserves within the
Workers' Compensation self-insurance funds. The Development Pay Program
($294,000) is intended to promote employee efforts that increase job knowledge, skills,
and abilities.
3) OPERATING MAT'LS & SUPPLIES $16.0 $16.3 $17.4
3a) Chemical Coagulants $ 6.0 $ 6.1 $ 6.2
Anionic Polymer — Anionic polymer is added to the primary clarifiers in combination
with ferric chloride to enhance primary clarifier performance. The projected usage will
remain approximately the same at 125600 active pounds with an estimated 5% rate
increase. The anionic polymer budget for FY 2015-16 is $392,000.
Cationic Polymer— Cationic polymer is added to digested sludge prior to dewatering
in order 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 solid(s) coagulation. During FY 2015-16, the rate is projected to be 5% higher
and usage to decrease 4% to 630,000 active pounds at a cost of$1,680,000.
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 2015-16 is 6,880 dry tons, at an estimated cost
of$4,140,000.
3b) Odor Control $ 7.3 $ 7.3 $ 8.0
Hydrogen Peroxide — Hydrogen peroxide is used in the foul air scrubbers at the
treatment facilities to control hydrogen sulfide. Usage for FY 2015-16 is estimated to
be 453,000 gallons at a cost of$959,000. The budget increase is due to an estimated
5% rate increase.
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.
For FY 2015-16, staff proposes the usage for the scrubbers to be 235 dry tons with a
budget of$130,500. The collection system usage is estimated to be 650 dry tons with
a budget of$343,000. The total caustic soda budget for FY2015-16 is $473,500.
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.
2
2015-16 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL
Previously
Projected Adopted Proposed
2014-15 2015-16 2015-16
The projected usage for FY 2015-16 is 20,400 gallons with a budgeted cost of
$35,000.
Odor Neutralizers — Odor neutralizers are used in the solids processing facilities of
both plants to mask the odors from the processed biosolids as they are loaded into the
trucks for reuse. In FY 2015-16, the projected budgets are $2,700 for approximately
22.5 drums of highly concentrated solution.
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 budget
for FY2015-16 is $1,782,000.
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 5,900 dry tons in FY 2015-16, and
the proposed budget is $3,821,000.
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
2015-16 proposed usage is estimated to be 34,000 gallons with a budget of$792,000.
Bleach, Treatment Plant Odor Control — Bleach is used in treatment plant odor
control scrubbers and has replaced more expensive chemicals. For FY 2015-16, staff
proposes the usage for the scrubbers to be 331,000 gallons with an estimated budget
of$178,000.
3c) Disinfection $ 0.4 $ 0.4 $ 0.2
Sodium Hypochlorite (Bleach) — As of March 17, 2015, the District was no longer
required to disinfect the effluent. However, there will be continue to be effluent
disinfection bleach storage on-site. There are ten possible power shut-downs, at Plant
1 to support the Groundwater Replenishment System along with primary bleach
addition at Plant 2 for sludge settling enhancement which may require disinfection.
The Bacteria Reduction Bleach budget for FY 2015-16 is $111,000 with a rate
3
2015-16 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL
Previously
Projected Adopted Proposed
2014-15 2015-16 2015-16
increase of 5% and an estimated use of 202,700 gallons. The other 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 69,400 gallons of process bleach in FY 2015-16 at a
budgeted amount of$38,000.
Sodium Bisulfite — Sodium bisulfite is used for dechlorination of outfall effluent at
Plant 2 to ensure that no residual chlorine is discharged into the ocean. Sodium
bisulfite usage will significantly decrease in FY 2015-16 because of the major
decreases in outfall bleach disinfection. It is anticipated that the District will use 7,000
gallons of sodium bisulfite at a cost of$5,000 in FY 2015-16.
3d) Tools and Safety Equipment/Tools $ 0.9 $ 0.8 $ 0.8
O&M and Facilities Support Services uses 78% of these budgets with the remaining
22% 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 $ 0.6 $ 0.7 $ 0.6
Over 88% 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 $ 0.6 $ 0.7 $ 0.7
Gasoline, compressed natural gas, diesel, and oil 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 $ 0.2 $ 0.3 $ 0.9
Other smaller operating expenses are collectively reported within this one line item
such as janitorial supplies, miscellaneous operating supplies, and property tax fees.
4) CONTRACTUAL SERVICES $22.8 $24.5 $23.8
4a) Solids Removal $17.7 $18.6 $17.5
4
2015-16 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL
Previously
Projected Adopted Proposed
2014-15 2015-16 2015-16
Biosolids — For FY 2015-16, biosolids production is estimated to be 276,000 wet tons.
Primary sludge will continue to be diverted to Plant 2. Approximately half of the
biosolids produced will be sent to Arizona. Contracted testing for those biosolids must
meet the State of Arizona requirement for analyses to be performed in an Arizona
certified laboratory.
4b) Other Residual Solids and Waste $ 1.0 $ 0.9 $ 0.9
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's crews and other city crews in the District's service area. The
budget for disposal of grit, screenings and other waste is $732,000 in FY 2015-16.
4c) Grounds keeping/Janitorial/Security $ 0.7 $ 0.7 $ 0.7
Security Services, Grounds-keeping, and Janitorial services are all proposed in the FY
2015-16 budget update as the original amounts previously approved.
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 $ 0.5 $ 0.7 $ 0.3
The District Oxygen Plant was demolished and currently the activated sludge plant
operates solely with purchased oxygen. There will be less flow treated at Plant 2
because of the increase in flow to GWRS. There will also be a decrease in oxygen
usage in FY 2015-16 because of the decrease in flow through the oxygen activated
sludge plant and an increase in flow through the tricking filter. The budget will
decrease accordingly to $274,000
4f) Temporary Services $ 0.4 $ 0.4 $ 0.4
Temporary Services are proposed to remain flat in FY 2015-16 due to the reduction in
temporary services beginning in FY 2012-13 through the elimination of long-term
temporary help and finding alternative solutions in-house (reallocation of labor and
work as required, essential overtime).
5
2015-16 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL
Previously
Projected Adopted Proposed
2014-15 2015-16 2015-16
4g) Outside Lab Services $ 0.2 $ 0.2 $ 0.3
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. Approximately half of biosolids are used 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 $ 1.6 $ 2.3 $ 3.0
Over 95% of contracted services are in support of operating and maintaining the
collection system and the treatment plants. These services include line cleaning,
closed circuit television of lines, manhole rehabilitation and replacement, and tunnel
cleaning.
5) REPAIRS AND MAINTENANCE $12.6 $ 12.9 $ 12.3
5a) Materials & Services $10.9 $ 10.9 $ 10.3
8.9% Over 98.9% of these budgets support the maintenance of the collection system
and the treatment plants. O&M Contracted materials and services for FY 2015-16
include: Digester Cleaning Contract; CenGen Overhaul); Plant 2 Gas Compressor
Overhaul ; Interplant Gas Line Inspection and Maintenance Program; CenGen
Generator Rehabilitation; Maintenance Painting Contract ($350K); and Electric
Protective Relay Calibration and Testing. Facilities Support Services contracted
services include services to maintain the District fleet ($369.5K); scale repairs; crane
repairs; root and pest control; street overlays/manhole raising; manhole cover
purchases; surveying services; easement improvements and other materials and
services$642K.
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.
5b) Service Agreements $ 1.7 $ 2.0 $ 2.0
Approximately 36% and 64% of service contracts are computer-related or O&M
maintenance-related respectively. Major contracts for Information Technology include
IBM Software Maintenance; Microsoft Enterprise License Agreements; Oracle support;
and various smaller service agreements3M). Contractor Support Services in the
Facilities Support Services Department manages nearly all service contracts for the
maintenance of the collection system and treatment plants. The service agreements
include:; crane certification; polymer tank cleaning; Dig Alert; Operations Divisions
manage service agreements for tree trimming; fire extinguisher and fire sprinkler
certification; Uninterruptible Power Supply electrical maintenance; filter carbon media
6
2015-16 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL
Previously
Projected Adopted Proposed
2014-15 2015-16 2015-16
exchanges; and various other plant maintenance and service maintenance
agreements covering various equipment located throughout the District and the carbon
changes for Steve Anderson Lift Station (SALS) odor control and the Plant 2 Trickling
Filter Solids Contact odor control.
6) UTILITIES $ 7.7 $ 7.8 $ 7.8
6a) Power $ 6.3 $ 6.2 $ 6.3
Electricity—
The estimated consumption and resulting costs for electrical energy purchased from Southern
California Edison for the 2015-16 fiscal year are shown below and total $5,574,000. This
budgetary number contains no contingency and excludes the electricity requirements of all
outlying pump stations.
FY 2015-16
Item Estimated Cost per kWh Proposed Budget
Consumption Value
(kWh/year)
Plant No. 1 Energy 24,000,000 @$0.083 $2,000,000
Charges
Plant No. 1 Demand ----- ---- $ 450,000
Charges
Plant No. 1 Fixed Charges ---- ----- $ 550,000
Centrifuge Startup Energy 0 @$0.083 $ 0
Charges
Centrifuge Startup ----- ----- $ 0
Demand Charges
Total for Plant 1 24,000,000 $3,000,000
Plant No. 2 Energy 15,300,000 @$0.083 $1,270,000
Charges
Plant No. 2 Demand $ 420,000
Charges
Plant No. 2 Fixed Charges ----- ----- $ 310,000
Total for Plant 2 15,300,000 $2,000,000
Plant 1 Control Center 28,000 @$0.21 $ 6,000
P1 Contracts Adm. Trailers 120,000 @$0.21 $ 26,000
Total Plants 39,448,000 $5,032,000
Laboratory 3,000,000 @$0.14 $ 406,000
Administration Building 850,000 @$0.16 $ 136,000
Total 43,298,000 E5,574,000
7
2015-16 BUDGET UPDATE DEVELOPMENT— ADDITIONAL DETAIL
Previously
Projected Adopted Proposed
2014-15 2015-16 2015-16
6b) Water $ 0.5 $ 0.7 $ 0.6
Green Acres Project (Gap) Water — GAP water is made up of secondary treated
effluent from the District that is further treated by the Orange County Water District.
GAP water is significantly less expensive than potable water and is used in the
process wherever possible. The major uses of GAP water include cooling water,
solids handling, and landscaping. The proposed total GAP water cost for FY 2015-16
is $10,000.
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. The majority of the irrigation at both plants uses reclaimed
water. Less than 1 percent 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 2014-15 is $523,000 and the proposed budget for FY 2015-16 is$529,000.
6c) Natural Gas $ 0.5 $ 0.4 $ 0.5
Natural Gas —The total FY 2015-16 gas estimate is $500,000.
The estimated natural gas to be purchased from Southern California Gas
Company and gas marketer Constellation Energy for Plants 1 and 2 for fiscal
year 2015-16 is shown below.
FY 2015-16 Estimates
User Estimated Cost Per Total Cost
Consum lion Therm
P1 Cen Gen Normal 200,000 therms $0.52/therm $104,000
Operation
P1 Can Gen Peak Shaving 210,000 therms $0.52/therm $109,000
P1 Core Subscription 220,000 therms $0.68/therm $150,000
P2 Cen Gen Normal 238,000 therms $0.52/therm $124,000
Operation
P2 Can Gen Peak Shaving None $0.52/therm $0
P2 Core Subscription 20,000 therms $0.64/therm $13,000
Total 888,005 therms $500,000
The total FY 2015-16 gas estimate is slightly higher than last year. The Plant 1
Central Generation actual gas usage was higher with operation of Engine 1 for
peak shaving during last summer; this will be done again this summer peak
season as long as gas prices remain favorable.
8
2015-16 BUDGET UPDATE DEVELOPMENT— ADDITIONAL DETAIL
Previously
Projected Adopted Proposed
2014-15 2015-16 2015-16
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$0.11/therm.
This FY 2015-16 budget is somewhat higher than last year's two-year estimate
for FY15/16 reflecting anticipated higher consumption in the CenGens and P1
Core Subscription.
9
2015-16 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL
Previously
Projected Adopted Proposed
2014-15 2015-16 2015-16
7) PROFESSIONAL SERVICES $ 2.5 $ 3.1 $ 3.5
7a) Legal Services ($1.0M)
Legal services are the services provided by General Counsel for general legal support,
hours at the District, hours attending committee and board meetings, and for legal
support provided by other legal counsel. The 2015-16 budget is proposed to increase
to $973,200 from $882,900 as a result of increased expenses for arbitration, contracts
and employee relations.
7b) Engineering Services ($0.8111
These services provide technical support that in-house staff cannot provide or do not
have the time to provide. In FY 2015-16 requested engineering services include
support for writing technical procedures, biofilter operation and compliance, an arc
flash consultant, and 37.5% of the Enginering budget will support the Civil Assets
Management Program (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 ($0.2M)
These services represent the cost for the District's independent annual financial audit
and contracted internal auditing services.
7e) Software Program Consultant ($0.3M)
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 ($1.0M)
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 lock-out — 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. Costs are anticipated to
increase $220K.
10
2015-16 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL
Previously
Projected Adopted Proposed
2014-15 2015-16 2015-16
8) OTHER OPERATING SUPPLIES $ 1.6 $ 1.8 $ 1.7
8a) Property and General Liability Insurance ($0.5M)
The District's outside excess general liability insurance coverage is $30 million with a
self- insurance retention of $250,000. The District's property insurance coverage of
$1 billion for perils other than flood and $300 million for flood is subject to self-
insurance retention of$250,000 and $100,000 respectively. The District is self-insured
for all property damage from the perils of 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 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 $ 1.4 $ 1.6 $ 1.6
9a) Small Computer Items ($0.7M)
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 ($0.1M)
Office supplies include such items as envelopes, letterhead, notebooks, calendars, etc.
9d) Other ($0.2M)
Other smaller administrative expenses collectively reported within this one line item.
11
2015-16 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL
Previously
Projected Adopted Proposed
2014-15 2015-16 2015-16
10) RESEARCH AND MONITORING $ 0.8 $ 0.8 $ 0.8
10a) Environmental Monitoring ($0.3M)
The budget line item for "Environmental Monitoring" includes costs associated with the
District's National Pollution Discharge Elimination System (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, 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 $ 1.0 $ 1.0
11a) General Manager Contingency ($0.6M)
These funds are centrally budgeted and expended through the direct discretion and
specific approval of the General Manager to support unanticipated District needs or
requests of the Board.
11 b)Prior year Appropriations ($0.3M)
Since the operating budget lapses at the end of each fiscal year, funds need 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 2014-15 budget
reflects application of these funds.)
11c) Other ($0.1M)
Other non-operating expenses and obsolete inventory are in this group of expenses.
12
2015-16 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL
Previously
Projected Adopted Proposed
2014-15 2015-16 2015-16
12) TRAINING AND MEETINGS $ 0.9 $ 1.1 $ 1.1
12a)Training ($.9M)
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 $ 0.4 $ 0.4 $ 0.4
13a) In-House Publishing ($0.4M)
Although the budget provides for some outside reproduction, the majority of OCSD
printing activities are completed In-house, reflecting an expanded management
information system and administrative requirements. As well as continuing demand by
the public and regulatory agencies for information. These activities including printing
of District's maps, brochures, Board reports and agenda items, budget materials, etc.
13b)Other ($O.OM)
Other printing and publishing expenses collectively reported within this one line item.
14) COST ALLOCATION ($16.5) ($16.9) ($16.9)
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 Neebng Date To ad.of Dir.
04/0
8
/15 --
AGENDA REPORT Item Number Item Number
a
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Director of Engineering
SUBJECT: CAPITAL IMPROVEMENT PROGRAM UPDATE
GENERAL MANAGER'S RECOMMENDATION
Information Only.
SUMMARY
Staff will present an informational overview on the status and performance of the Capital
Improvement Program (CIP) over the fiscal year to date.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
N/A
CEQA
N/A
BUDGET/PURCHASING ORDINANCE COMPLIANCE
N/A
ATTACHMENT
N/A
MP:dm:gc
Page 1 of 1
ADMINISTRATION COMMITTEE Neebng Dare To ad.of Dir.
04,08,15 --
AGENDA REPORT Item Number Item Number
s
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance &Administrative Services
SUBJECT: STATUS UPDATE OF 2015-16 INSURANCE RENEWALS
GENERAL MANAGER'S RECOMMENDATION
Information Only.
SUMMARY
Staff will provide an update to the Administration Committee's request for additional
information regarding the renewals of major insurance policies.
PRIOR COMMITTEE/BOARD ACTIONS
March 2015 - The Committee was provided information regarding: Excess General
Liability Insurance Program, Excess Workers' Compensation Insurance;
All-Risk Property and Flood Insurance and Boiler & Machinery
Insurance.
June 2014 - The Board approved renewal of the above four policies for the period
July 1, 2014 through June 30, 2015.
ATTACHMENT
• Letter from Alliant Insurance Services
• OCSD Schedule of Insurers
Page 1 of 1
•A4/liant
March 30, 2015
Mr. Randall Kleinman
Risk Management-Division 260
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, CA 92708
Property and Casualty Insurance
Schedule of OCSD Carriers
Dear Randy:
As requested, we have forwarded the schedule of OCSD's insurers by line of coverage showing
each carriers' A.M. Best Rating, and their California regulatory status. This material is being
presented as a result of some of the "Q&A" discussion at the March 11' Administration
Committee meeting. The discussion centered on identifying the financial strength of carriers on
the program, as well as the regulatory rules under which the carriers operate in California.
Because of this interest, beyond just the schedule, I thought I should offer some commentary on
these issues as they relate to the current OCSD coverage program.
The "A.M. Best Company Key Rating Guide" is the most commonly used tool to independently
evaluate a carriers' financial strength. In their credit rating system, the A.M. Best Company
assigns letter and numeric grades to insurers with the letter grade (A through F) essentially
corresponding to the "quality' of a carriers' assets (investments) and the roman numeral (I
through XV) corresponding to the amount of policyholder surplus (equity)a company owns.
In building a complex commercial insurance coverage program, such as that which is in place for
OCSD, brokers and risk managers seek to create a broad and competitively priced program
utilizing the financially strongest carriers possible. In the OCSD program, only one carrier is
rated below "A-X", and many carry the highest rating of AXV. All carriers used in the program
meet Alliant's minimum corporate guideline for utilization, which is set at "A-VII". The
"lowest" rated carrier in the OCSD program, Maxum Indemnity, is rated A-VIII by AM Best,
meaning their asset base is considered "excellent", and they have between $100MM and
$250MM of policyholder surplus. In the OCSD property program, Maxum provides $4,500,000
of capacity out of a $1,000,000,000 coverage limit. Their capacity is provided excess of
$75,000,000.
As respects a carriers' regulatory status, insurers are regulated at the State level rather than either
the national or local level. When an insurer incorporates, it will have a State (or country) of
domicile, and it subsequently chooses which States it wishes to operate in on either an
"admitted" or "non-admitted" basis. When choosing "admitted" status in one or more States, it
agrees to not only be subject to the insurance regulations of its State of domicile, but also to the
regulations of those States when transacting business within them. A carrier can legally operate
in a State that it has "non-admitted" status in, as long as it follows the less stringent rules for a
"non-admitted"carrier,and pays State taxes on the business it transacts within the State.
Alliant Insurance Services,Inc.• 1301 Dove St.,Ste 200 Newport Beach,CA 92658
PHONE(949)756-0271 •www.alliantinsorance.com•License No.OC36861
•A4/liant
Page 2
Randall Kleinman
March 30, 2015
The key benefit to an insurer operating as "admitted" in California is that its policyholders have
access to the California Insurance Guarantee Association (CIGA) fund which is intended to pay
policyholder claims in the event of carrier insolvency. This is normally viewed as a competitive
advantage in the market, as policyholders generally prefer such additional protection when it can
be had. The key detriment to operating as an admitted carrier is the lack of flexibility in pricing
and designing coverage terms for policyholders as rates and coverage terms for admitted carriers
are regulated by the State. Given this, what one normally finds in the open insurance market is
that "simple' or `vanilla" risks will generally obtain their coverage from "admitted" carriers
where a high degree of standardization is the norm. However, those risks that are more complex,
or less desirable from an insurer's perspective, will normally have at least some mix of admitted
and non-admitted carriers in their program. Lloyd's of London is the most noteworthy non-
admitted market operating in California, being primarily known for their flexibility and
willingness to underwrite unconventional risks.
In the public entity insurance space, due to the complex and non-standard risks involved, issues
of scope and price of coverage in carrier selection more often than not take precedence over a
carriers' regulatory status. Usually, as long as a policyholder can assure themselves that a carrier
is financially strong, and further, knowing that carrier insolvency is raze, brokers and risk
managers will prefer carriers that offer the broadest and most competitively priced terms.
Further, many (probably most) carriers operating as "admitted" in California, will not consider
writing insurance for public entities at the terms or levels desired, thereby effectively eliminating
a choice based on this selection criteria.
For OCSD's coverage program, in consultation with the District, we have assembled a panel of
insurers (and one joint powers insurance authority) utilizing both admitted and non-admitted
carriers, as this mix, at least in the current term, resulted in the broadest terms available at the
most competitive pricing. Our scope of work for OCSD calls upon us to negotiate the best terms
and conditions of coverage available, and OCSD's coverage program is vigorously marketed to
interested insurers around the globe annually. To obtain the best coverage and competitive
pricing terms demanded by the District, some non-admitted carriers must be utilized.
For example, OCSD participates in the Alliant Public Entity Property Insurance Program
(PEPIP). At some $400,000,000,000 in total insured values, PEPIP is the single largest property
insurance placement in the world, and to get the most competitive pricing for the program,
numerous non-admitted carriers are utilized. The majority of California public entities obtain
their property coverage either in PEPIP or in other programs that are very similar to it. Coverage
limits are provided on a "layered and quota share" basis where a carriers' capacity is optimized
at that carriers' most financially efficient level resulting therefore in a low cost program to
policyholders.
As the largest provider of insurance brokerage services to public entities in California, we are
confident that the program constructed for OCSD is the broadest and most competitive available.
Alliant Insurance Services,Inc.• 1301 Dove St.,Ste 200 Newport Beach,CA 92658
PHONE(949)756-0271 •www.allian6nsorance.com•License No.OC36861
•A4/liant
Page 3
Randall Kleinman
March 30, 2015
I hope that this discussion assist the Committee in understanding these topics, and of course we
are happy to continue to discuss this, or any other topic in as much detail as is desired. As
always,we appreciate the opportunity to be of service to the District.
V ry ly,
L�
Dennis Mu eeney, A, CPCU
Senior Vice Preside
(415)403-1421 work
(415) 309-9926 mobile
dmuloueenevAalliant.com
Alliaot Insurance Services,Inc.• 1301 Dove St.,Ste 200 Newport Beach,CA 92658
PHONE(949)756-0271 •www.allian6nsurance.com•License No.OC36861
Orange County Sanitation District Schedule of Insurers
July 1, 2014 to July 1, 2015
ProRerty Insurance
ACE—Btinois Onion Insurance Company A++,Superior; nmrAdmitted
Financial Siff Category 15;
$2,0(As o of 411 or greater
(As f /I1114)
ACE European Group Limited A++,Superior; Non-Admitted
Financial Stu Category 14;
$1,500,0110,000 to$2,",000,000
(As of 5/2/14)
Arch Spreialty Insurance A+,Superior, Non-Admitted
Company Finanoial Size Category 11;
$250,00 ,000 to$500,000,000
(As of 3/20I14)
Axis Surplus Insurance A+,Superior, Non-Admitted
Company Financial Size Category 15;
$2,M,000,000 or groaner
(As o17925/13)
Axis Specialty Europe Ltd A+,Superior; Non-Admitted
Financial Siff Category 15;
$2,000,000,000 or greater
(As of9/35/13)
Endurance Worldwide Insurance Limited A.Exeellent; Non-Admitted
Financial St.Category 15;
$2,000,000,000 or greater
(As of 5/6/14)
Essex lasutance Company A,Excellent; Non-Admitted
Financial Siu Category 14;
$1,500,000,000 to$2,000,000,000
(As n173mn4)
Hanford Steam Boiler Inspec&Ina(Inspections A++,Superior; Admitted
Only) Financial Size Category 10
$500,000,000 to$750,000,000
(As of 10/25/13)
Homeland Insurance Company of New York A,Excellent; Non-Admitted
Financial Siff Category 11;
$750,000,000 to$1,000,000,W0
(As of 10/4/13)
Ironshore Specialty Insurance Company A.Exeellent; Admitted
Financial Stu Category 14;
$1,500,0110,000 to$2,",000,000
(Asof6 5/13)
Ironshore Indemnity Ina(AZ only) A,Excellent; Noo-Admitted
Financial Siu Category 14;
$1,500,000,000 to$2,000,000,000
(As o176MV13)
Lancashiu Insurance Company(UK)Ltd. A,Excellent, Non-Admitted
Financial Siu Category 13;
$1,250,000,000 to$1,500,000,000
(As of 6/19/13)
Lexington Ins,Company A,Excellent; Non-Admitted
Financial Siff Category 15;
$2,000,000,000mgmwer
(As fMO/14)
Page 1 of 3
Cnn,pau, A.M. Rest's(46cle Rating CA loan.tunne Reg.l.tocy Status
Lloyd's of London A, Excellent; NnlrAdmaled
Financial Sis Category 15;
$2,000,000,000 or Greater
(As of9/19/13)
Maxum Indemnity A-,Excellent; Non-Admitted
Company Financial Sis Category 8;
$100,000,000 to$250,000,000
(As o176/14/13)
Scottsdale Surylus Lines Insurance Company A+,Superior; Non-Admitted
Financial Sine Category 15;
$2,000,000,000 or greater
(AID of4/2/14)
XL Insurance America Inc. A,Excellent; Admitted
Financial Siff Category 15;
$2,000,000,000 or greater,
(As of 10/29/13)
Liability Insurance
Compa., A.M. Best',(;,rule Rating is Ins,nance Rv,Uh1tOt s Str1tUx
AmTrust—Smurity National Insurance Company A,Excellent; Admitted
Financial Sis Category 12;
$1,000,000,000 to$1,250,M0,000
(As of 5/30/14)
Bedeley National Insurance Company A+,Superior; Admitted
Financial Sis Category 15;
S2,M0,000,000 on Greater
(AID of 1/22/15)
Great American Insurance Company A+,SuperlOr Admincd
Financial Sis Category 13;
$1,250,000,000 to$1,500,000
(As ofMl/14)
Workers' Compensation Insurance
( 4)1111)1111� 1 A.M.Best's Guide Rating CA Insurance Regulatory Status
CSAC Excess Insurance Authority None N/A-Gevermnent Cede
Regulates
National Union Fire Insurance Cra of Faittsbwgh,PA A,Excellent; Admitted
(AIG) Financial Sis Category 15;
S2,M0,000,000 or Greater
(As o172/29/15)
Note
"Admitted" companies are regulated by the California Department of Insurance. Non-Admitted callers are
known as "excess and surplus lines carriers"and are regulated by their individual State ofdonneile.In the case
of insolvency,policyholders of admitted carriers have access to the California Insurance Guarantee Association
(CIGA). Beyond cost, there are various reasons why a policyholder may choose to do business an admitted
carrier vs. a non-admitted carrier. Non-admitted carriers are usually more flexible with their rate structure and
terms and conditions of coverage. In the public entity space, the general thinking is that the flexibility of non-
admitted carriers, if well rated by rating agencies such as A.M. Best, outweighs the advantage meaccess to CIGA
in the case of insolvency.
Page 2 of 1
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
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
FSSD Facilities Support Services Department
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
GOBS Ocean Outfall Booster Station
OSHA Occupational Safety and Health Administration
POTW Publicly Owned Treatment Works
ppm Parts per million
RFP Request For Proposal
RWQCB Regional Water Quality Control Board
SARFPA Santa Ana River Flood Protection Agency
Glossary of Terms and Abbreviations
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
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
WERF Water Environment Research Foundation
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 know 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.
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.
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. coli 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.
Glossary of Terms and Abbreviations
Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic
wastewater contaminants.
Dilution to Threshold (D!f) — the dilution at which the majority of the people detect the odor
becomes the DrT 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 (MGD) 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.
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.
Glossary of Terms and Abbreviations
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.