HomeMy WebLinkAbout04-09-2014 Administration Committee Agenda ORAKIJEODUNTY
Orange County Sanitation District SANITATION DISTRICT Wednesday, April 9, 2014
Regular Meeting of the \ 5:30 P.M.
Administration Committee 1 Administration Building
Board Room
10844 Ellis Avenue
fl�
Fountain Valley, CA(714) 593-7130
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 12, 2014, Administration Committee Meeting.
NON-CONSENT CALENDAR:
2. Recommend to the Board of Directors to:
Authorize the General Manager to issue new fixed rate Certificates of
Participation (COP), to be referred to as Wastewater Refunding Revenue
Obligations, in an amount sufficient to refund up to $267.3 million of COP Series
2007B.
04/09/14 Administration Committee Agenda Page 1 of 3
INFORMATION ITEMS:
3. Status of 2014-15 Insurance Renewals
4. FY 2014-15 Capital Improvement Program Update
5. Community Outreach Program Update
6. FY 2014-15 and 2015-16 Budget
CLOSED SESSION:
During the course of conducting the business set forth on this agenda as a regular meeting of the
Administration Committee, the Chair may convene the Committee in closed session to consider
matters of pending real estate negotiations, pending or potential litigation, or personnel matters,
pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted.
Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation;
(c) employment actions or negotiations with employee representatives;or which are exempt from public
disclosure under the California Public Records Act, may be reviewed by the Board during a permitted
closed session and are not available for public inspection. At such time as the Board takes final action
on any of these subjects, the minutes will reflect all required disclosures of information.
Convene in closed session.
(1) CONFER WITH LABOR NEGOTIATORS
(Government Code Section 54957.6)
Agency Designated Representatives: Steve Filarsky, James Ruth, James
Herberg, Robert Ghirelli, Jeff Reed, and Richard Spencer.
Employee Organizations: 3
• Orange County Employees Association (OCEA);
• International Union of Operating Engineers, Local 501; and
• Supervisor and Professional Group
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
ADJOURNMENT:
The next Administration Committee meeting is scheduled for Wednesday, May 14, 2014
at 5:30 p.m.
04/09/14 Administration Committee Agenda Page 2 of 3
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) 593-7130 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.
Made E.Ayala
Clerk of the Board
(714)593-7130
mavalalglocsd.com
For any questions on the agenda,Committee members may contact staff at:
General Manager James Herberg (714)593-7300 iherberofgocsd.com
Assistant General Manager Bob Ghirelli (714)593-7400 rohirelli0ocsd.com
Director of Finance and Lorenzo Tyner (714)593-7550 Itvnerfrpocsd.com
Administrative Services
Director of Human Resources Jeff Reed (714)593-7144 ireeddocsd.com
04/09/14 Administration Committee Agenda Page 3 of 3
ITEM NO. 1
CORRECTED MINUTES OF THE REGULAR MEETING OF
THE ADMINISTRATION COMMITTEE
Orange County Sanitation District
Wednesday, March 12, 2014, at 5:30 P.M.
A regular meeting of the Administration Committee of the Orange County Sanitation
District was held on March 12, 2014, at 5:35 p.m., in the Sanitation District's
Administration Building. Committee Chair Reese led the Flag Salute.
A quorum was declared present, as follows:
COMMITTEE MEMBERS PRESENT: STAFF PRESENT:
Brad Reese, Chair Jim Herberg, General Manager
John Withers, Vice-Chair Bob Ghirelli, Assistant General Manager
David Benavides Lorenzo Tyner, Director of Finance
Joe Carchio &Administrative Services
Steven Choi Jeff Reed, Director of Human Resources
Tyler Diep Rob Thompson, Director of Engineering
James Ferryman Ed Torres, Director of Operations and
Gene Hernandez Maintenance
Peter Kim Nick Arhontes, Director of Facilities
Prakash Narain Support Services
Teresa Smith Kelly Lore, Secretary Pro Tem
Troy Edgar, Board Chair Jeff Armstrong
Tom Beamish, Board Vice-Chair Wes Bauer
Jennifer Cabral
COMMITTEE MEMBERS ABSENT: Sam Choi
Janet Nguyen Ron Coss
Norbert Gaia
Al Garcia
Dave Halverson
Mike Von Winckelmann
OTHERS PRESENT:
Brad Hogin, General Counsel
PUBLIC COMMENTS:
None.
03 12 2014 Administration Committee Minutes Page 1 of 5
REPORT OF COMMITTEE CHAIR:
Committee Chair Reese did not provide a report.
REPORT OF GENERAL MANAGER:
General Manager, Jim Herberg, introduced Rob Thompson as the newly appointed
Director of Engineering.
REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES:
Lorenzo Tyner, Director of Finance, did not provide a report.
CONSENT CALENDAR:
1. MOVED, SECONDED, AND DULY CARRIED: Approve Minutes of the
February 19, 2014 Administration Committee Meeting.
AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman,
Hernandez, Kim, Narain, Reese and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Nguyen and Smith
2. MOVED, SECONDED, AND DULY CARRIED:
Recommend to the Board of Directors to:
Adopt Resolution No. OCSD 14-XX, adopting a Conflict of Interest Code which
supersedes all prior Conflict of Interest Codes and amendments previously
adopted.
AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman,
Hernandez, Kim, Narain, Reese and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Nguyen and Smith
03/12/2014 Administration Committee Minutes Page 2 d 5
3. MOVED, SECONDED, AND DULY CARRIED:
Recommend to the Board of Directors to:
Approve Service Contract to provide services for industrial hygiene, S-2013-
590BD for a one-year plus four optional renewals effective July 1, 2014, for an
amount not to exceed $500,000 with the following firm: Malcolm Pirnie/Arcadis.
AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman,
Hernandez, Kim, Narain, Reese and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Nguyen and Smith
3. MOVED, SECONDED, AND DULY CARRIED:
Recommend to the Board of Directors to:
Adopt Resolution No. OCSD 14-XX, A Resolution of the Board of Directors of the
Orange County Sanitation District Adopting a Revised Policy Regarding Board of
Directors' Expense Reimbursement and Meeting Attendance and Compensation
and Repealing Resolution No. OCSD 06-11.
AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman,
Hernandez, Kim, Narain, Reese and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Nguyen and Smith
NON-CONSENT:
5. MOVED, SECONDED, AND DULY CARRIED:
Recommend to the Board of Directors to:
A. Introduce Ordinance No. OCSD-XX, entitled "An Ordinance of the Board
of Directors of Orange County Sanitation District Amending Ordinance No.
OCSD-34 Pertaining to the Compensation of the Members of the Board of
Directors"; and
0N12/2014 Administration Committee Minutes Page 3 of 5
B. Motion to read Ordinance No. OCSD-XX by title only and waive reading of
said entire Ordinance on March 26, 2014; and
C. Set April 23, 2014, as the date of the Public Hearing to hear protests and
for the second reading and adoption of Ordinance No. OCSD-XX.
D. Direct the Clerk of the Board to publish summaries of the Ordinance as
required by law.
AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman,
Hernandez, Kim, Narain, Reese and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Nguyen and Smith
INFORMATION ITEMS:
6. Ocean Water Quality and Disinfection Program
Director of Operations and Maintenance Ed Torres introduced Environmental Lab
& OM Manager, Ron Coss who provided a brief PowerPoint regarding the history
of the disinfection program and an update regarding the strategic initiative on
optimization of effluent disinfection using bleach. He introduced the three
principal investigators behind the studies; Environmental Supervisor, Dr. Jeff
Armstrong (Head of Ocean Monitoring Group), Laboratory Supervisor, Mike Von
Winckelmann (Head of Microbiology General Chemistry Group) and Principal
Laboratory Analyst, Dr. Sam Choi (Lead Microbiologist). Mr. Coss answered
questions from the Committee regarding; reduction or elimination of disinfection,
and outreach to stakeholders.
(Director Theresa Smith arrived at 5:45 p.m.)
7. FY 2014-15 and FY 2015-16 Budget Update
Director of Finance and Administrative Services Lorenzo Tyner introduced
Controller, Mike White who provided a PowerPoint presentation on Budget
Development Revenues for Fiscal Years 2014-15 and 2015-16.
03/12/2014 Administration committee Minutes Page 4 of 5
CLOSED SESSION:
The Board did not convene in closed session. Director of Human Resources Jeff Reed
announced that a meet and confer session is scheduled with the Supervisor and
Professional Groups for tomorrow at which time District representatives will carry out
the Board's direction from its last closed session meeting. He also stated that the
Orange County Employees Association (OCEA) has formally requested a meet and
confer and has also requested a financial overview.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
None.
ADJOURNMENT:
Committee Chair Reese declared the meeting adjourned at 6:05 p.m., to the next
regularly scheduled meeting of April 9, 2014.
Submitted by:
Kelly A. Lore
Secretary Pro Tem
0 311 2 2014 Administration Committee Minutes Page 5 d 5
ADMINISTRATION COMMITTEE "I'm,Date T1.1 of Dir.
04/09/14 4/23/14
AGENDA REPORT Item Number Item Number
z
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: WASTEWATER REFUNDING REVENUE OBLIGATIONS, SERIES 2014A
GENERAL MANAGER'S RECOMMENDATION
Authorize the General Manager to issue new fixed rate Certificates of Participation
(COP), to be referred to as Wastewater Refunding Revenue Obligations, in an amount
sufficient to refund up to $267.3 million of COP Series 2007B.
SUMMARY
Tax-exempt interest rates increased significantly from May 2013 through September
2013 due to market concems that the Federal Reserve would start to taper their $85
billion of monthly bond purchases in the coming months. However, due to the lack of
municipal new issuance volume this year, tax-exempt yields have dropped in 2014 as
shown in the recent rate history for the AAA GO Municipal Market Data Index for 10-
year maturities below:
10-Year Maturities AAA MMD
January 1, 2013 to Present
3.5%
3.0%
2.5%
2.0%
1.5%
n n m m m m n n rn m m m v v v
Date
With the decline in interest rates, there is the potential opportunity to refinance a portion
of the outstanding COP Series 2007B to reduce interest costs for the Sanitation District.
Page 1 of 4
Under current market conditions, nine maturities of the COP Series 2007B, equal to
$82.3 million, may be advance refunded generating 7% present value savings, or $6
million (the minimum percentage required by the Sanitation District's debt policy is 3%).
The savings are contingent on market conditions at the time of the refunding sale;
however, if interest rates decline even further, additional maturities could also be
refunded and produce the requisite savings targets. The outstanding amount of COP
Series 2007B is currently $267.3 million.
Approval of the recommended actions above will direct staff to begin the process of
refunding a portion of the outstanding $267.3 million COP Series 2007B debt utilizing
the assistance of Public Resources Advisory Group (PRAG), as financial advisor, and
the bond counsel fine of Fulbright & Jaworski.
PRIOR COMMITTEE/BOARD ACTIONS
September 20, 2012: Adopt Resolution No. OCSD 12-12, authorizing the execution
and delivery by the District of an Installment Purchase
Agreement, a Trust Agreement and a Continuing Disclosure
Agreement in connection with the execution and delivery of
Orange County Sanitation District Revenue Refunding Certificate
Anticipation Notes, Series 2012C, such Notes evidencing
principal in an aggregate amount of not to exceed $145,000,000,
approving a Notice of Intention to Sell, authorizing the distribution
of an Official Notice Inviting Bids and an Official Statement in
connection with the offering and sale of such Notes and
authorizing the execution of other necessary documents and
related actions.
September 25, 2013: Adopt Resolution No. OCSD 13-14, authorizing the execution
and delivery by the Orange County Sanitation District of an
Installment Purchase Agreement, a Trust Agreement and a
Continuing Disclosure Agreement in connection with the
execution and delivery of Orange County Sanitation District
Revenue Refunding Certificate Anticipation Notes, Series 2013A,
authorizing the execution and delivery of such Notes evidencing
principal in an aggregate amount of not to exceed $135,000,000,
approving a Notice of Intention to Sell, authorizing the distribution
of an Official Notice Inviting Bids and an Official Statement in
connection with the offering and sale of such Notes and
authorizing the execution of necessary documents and related
actions.
Page 2 of 4
ADDITIONAL INFORMATION
The Sanitation District currently has ten series of debt issuances outstanding in the par
amount of $1.23 billion. The table on the following page lists each issuance, the
outstanding amount, and the interest rate mode.
Outstandin Interest Rate
m Par Aount) Mode
eries 2013A CANS(4) $ 129,625,000 Fixed Rate (one-year)
eries 2012B Refunding(2) 66,395,000 Fixed Rate
eries 2012A Refunding(3) 100,645,000 Fixed Rate
eries 2011A Refunding(2x3) 130,345,000 Fixed Rate
eries 20100) 157,000,000 Fixed Rate
eries 2010A(a) 80,000,000 Fixed Rate
eries 2009A Refunding(3) 184,090,000 Fixed Rate
eries 2008B Refunding(6) 25,585,000 Fixed Rate
eries 200713(a) 267,255,000 Fixed Rate
eries 2007A Refunding(3) 92,385,000 Fixed Rate
Total : $1,233,325,000
(1) As of March 1,2014
(2) Refunded a portion of Series 2000
(3) Refunded a portion of Series 2003
(4) Series 2013A are fixed one-year certificate of anticipation notes(CANS), that refunded the
Series 2012C CANS, that refunded the Series 2011E CANS, that refunded the 2010E
CANS, that refunded the Series 2009E CANS, that refunded the 2008C CANS that were
issued to refund the Series 20M Daily Variable Rate that were supported by a weak liquidity
facility bank.
(5) New money debt issue
(6) Series 2008E refunded the Series 1993 Synthetic Variable-to-Fixed Rate Debt issues that
were supported by a failing insurance provider. Series 1993 and 1992 refunded the Series
1986 and a portion of the Series W COPs.
Refunding Strateav
Under current market conditions, staff is proposing to refund $82.3 million of COP
Series 2007E maturing in years 2018 through 2026 with annual coupon rates of 4.00%
and 5.00%, as shown in the chart below. A refunding of these maturities would produce
$6.01 million in present value savings (7.3% of refunded par) in the current market.
Additional bond maturities may be refunded depending on the market rates at the time
of issuance.
Maturity Principal Amo
02/01/18 $ 7,470,000 5.00% 02/01/17
02/01/19 7,840,000 5.00% 02/01/17
02/01/20 8,235,000 4.00% 02/01/17
02/01/21 8,645,000 5.00% 02/01/17
02/01/22 9,075,000 5.00% 02/01/17
Page 3 of 4
Principal Am
02/01/23 9,530,000 5.00% 02/01/17
02/01/24 10,005,000 5.00% 02/01/17
02/01/26 10,510,000 5.00% 02/01/17
02/01/26 11,035,000 5.00% 02/01/17
Total : $ 82,345,000
Timeline
Since the proposed refunding is a fixed-rate debt issuance, staff is proposing to issue
the refunding through a competitive sale because it is the most expeditious way to
access the market and it is expected to provide the lowest interest cost for this given
structure.
➢ Board approval of legal and disclosure documents
➢ Financing Corporation approval of legal and
June disclosure documents
➢ Rating Agency discussions
➢ Publish Notice of Intention to Sell
July ➢ Marketing and Sale through a Competitive Sale
Process
August ➢ Closing
➢ Begin debt administration
All costs involved with the refunding, including costs for PRAG and Fulbright & Jaworski
will be paid from the proceeds of the new refunding issue.
CEQA
N/A
BUDGET/DELEGATION OF AUTHORITY COMPLIANCE
N/A
Page 4 of 4
ADMINISTRATION COMMITTEE Meebng Date To ad.ofDir.
04,09,14 --
AGENDA REPORT Item Number Item Number
3
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance &Administrative Services
SUBJECT: STATUS OF 2014-15 INSURANCE RENEWALS
GENERAL MANAGER'S RECOMMENDATION
Information Only.
SUMMARY
Historically, the Administration Committee has asked for status updates regarding the
renewals of major insurance policies each year. The Risk Management Division and
the Sanitation District's operational insurance broker begin the process of renewal each
January, and final quotes are typically received in June shortly before the beginning of
the new fiscal year.
The Sanitation District budget provides funds for the renewal of the following four major
insurances for District operations:
1) Excess General Liability Insurance
2) Excess Workers' Compensation
3) All-Risk Property and Flood insurance
4) Boiler& Machinery insurance
PRIOR COMMITTEE/BOARD ACTIONS
June 2013 — The Board approved renewal of the above four policies for the period
July 1, 2013 through June 30, 2014.
ADDITIONAL INFORMATION
1) Excess General Liability Insurance Program
The Sanitation District's Excess General Liability Insurance Program is currently
provided through the California Municipal Excess Liability Program (CAMEL) and its
sister program, the Alliant National Municipal Liability Program (ANML). The
Sanitation District has participated in the CAMEL program since FY 1996-97.
Page 1 of 4
ADDITIONAL INFORMATION (cont'd)
This program currently provides the Sanitation District with a $30 million policy of
comprehensive coverage for municipal liability, bodily injury and property damage,
and personal injury. The program was structured to also include Employment
Practices, and Public Officials Errors & Omissions coverage. The $30 million
coverage has a self-insured deductible of $250,000 per occurrence and $500,000
deductible for employment practices claims. Since 1997, the Employment Practices
portion of coverage has been enhanced from a $2 million sub-limit to the full $30
million policy limit.
The actual insurance coverage currently consists of two separate layers. The first
layer is the "Basic" $10 million program with self-insured retention of $250,000. The
second layer is $20 million of coverage in excess of the first layer of$10 million.
The premium for 2013-14 was $371,642.
2) Excess Workers' Compensation Insurance
The Excess Workers' Compensation insurance coverage is with the California State
Association of Counties Excess Insurance Authority (CSAC EIA). The Sanitation
District has participated in this program or its predecessor since 2003. Excess
Workers' Compensation Program currently provides so-called "Statutory" (unlimited)
coverage with a self-insured retention (SIR), or deductible, of$750,000.
The use of Excess Workers' Compensation Insurance dates back to the late 1980's.
At that time, the Fiscal Policy Committee approved an SIR, or deductible, of
$250,OOO, for such coverage.
Due to the hardening of the workers' compensation market, this deductible was
raised to $500,000 beginning in FY 2002-03 through a policy with Employers
Reinsurance Corporation (ERC) that provided coverage at the time of $25 million
with a self-insured retention (SIR), or deductible of$500,000.
Some additional risk may be associated with the CSAC EIA joint powers authority in
that a premium surcharge can be assessed to individual members if an unusually
large number of losses were to occur outside of the actuarial evaluation estimates.
However, historically the CSAC EIA premiums for excess workers compensation
have been so much less than competing quotes available to the Sanitation District
that even if there were a surcharge, the cost might still continue to be cheaper.
The renewal of the Excess Workers' Compensation Insurance for the period July 1,
2013 through June 30, 2014 was at a rate of .00307. This premium rate generated
an estimated premium of approximately $198,000 based on the estimated 2013-14
payroll. Since the premium itself is based on final payroll, the Sanitation District will
not know the exact final premium until the year is over.
Page 2 of 4
ADDITIONAL INFORMATION (cont'd)
3) All-Risk Property and Flood Insurance
The All-Risk Property and Flood Insurance Program (Property Insurance) provides
for comprehensive coverage for most of the Sanitation District's real and personal
property regarding virtually all perils including fire, flood, and business interruption.
The Sanitation District previously carried earthquake insurance as part of its
Property Insurance, but in the last few years earthquake insurance has been
impossible to obtain or not cost-effective.
Current Property Insurance limits are $1 billion for most perils other than flood and
earthquakes, and $300 million for flood, with many sub-limits for various situations.
In order to reach $1 billion in limits, the broker had to arrange for more than a dozen
different insurers. The SIR is $250,000 per occurrence for most types of losses.
Since the late 1990's, the Property Insurance has been with a nationwide joint
purchase property insurance program called Public Entity Property Insurance
Program (PEPIP), one of the world's largest property programs. It is important to
note that this joint purchase property insurance program offers the purchasing power
of numerous large public entities without the pooling or sharing of coverage or
losses.
The renewal of All-Risk Property and Flood Insurance for the period July 1, 2013
through June 30, 2014 was at a premium of$681,286.
4) Boiler& Machinery Insurance
The Boiler & Machinery insurance program provides comprehensive coverage for
loss caused by machinery breakdown and explosion of steam boilers or other
covered process equipment, including damage to the equipment itself and damage
to other property caused by covered accident.
The current Boiler & Machinery insurance program provides coverage ($100 million
per occurrence with deductibles ranging from $25,000 to $350,000) for losses
caused by covered machinery breakdown (e.g., motors, steam turbines, digesters,
co-gen engines). Damages to the equipment, as well as damages to other property
and improvements caused by the machinery breakdown, are covered by the boiler &
machinery insurance. This program augments the Sanitation District's all-risk
property insurance that covers perils such as fire and flood.
The renewal of the Boiler & Machinery Insurance Program for the period July 1,
2013 through June 30, 2014 was at $24,280.
Page 3 of 4
CEQA
N/A
BUDGET/DELEGATION OF AUTHORITY COMPLIANCE
N/A
ATTACHMENTS
None
Page 4 of 4
ADMINISTRATION COMMITTEE Meeting Date To Bit of Dlr.
04/09/14 --
AGENDA REPORT em Number Item Number
9
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
None.
ADDITIONAL INFORMATION
N/A
CEQA
N/A
BUDGET/DELEGATION OF AUTHORITY COMPLIANCE
N/A
ATTACHMENT
N/A
DF:dm:gc
Page 1 of 1
ADMINISTRATION COMMITTEE Neebng Date To ad.of Dir.
04,09,14 --
AGENDA REPORT Item Number Item Number
s
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Robert P. Ghirelli, Assistant General Manager
SUBJECT: OCSD'S COMMUNITY OUTREACH PROGRAM
GENERAL MANAGER'S RECOMMENDATION
Information Only.
SUMMARY
As part of the ongoing Board Member Orientation effort, OCSD staff will provide a
general presentation on specific topics that the Board of Directors requested via a
survey conducted in October 2013. Each month a different topic will be presented to
both the Operations Committee and Administration Committee.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
The following informational presentations have been provided to both Operations and
Administration Committees:
• February— OCSD Budget and Finances
• March —Water Quality and OCSD's Disinfection Program
CEQA
N/A
BUDGET/DELEGATION OF AUTHORITY COMPLIANCE
N/A
ATTACHMENT
None
Page 1 of 1
ADMINISTRATION COMMITTEE Meeting Date To ad.of Dir.
04/09/14 --
AGENDA REPORT Item Number Item Number
6
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: FY 2014-15 AND 2015-16 BUDGET
GENERAL MANAGER'S RECOMMENDATION
Information Only.
SUMMARY
Discussion of the OCSD FY 2014-15 and 2015-16 Budget was initiated at the February
19, 2014 Administration Committee meeting. Additional materials are now being
provided to further this discussion (attached). Included in the materials being provided
are line-item details for the Operating Budget.
The Budget will be presented for adoption at the June 25, 2014 Board meeting.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
N/A
CEQA
N/A
BUDGET / DELEGATION OF AUTHORITY COMPLIANCE
N/A
Paps 2 of 2
ATTACHMENTS
The following attachment(s) are attached in hard copy and may also be viewed on-line at the OCSD
website(www.ocsd.coml with the complete agenda package and attachments:
FY 2014-15 and 2015-16 Budget Summary
FY 2014-15 and 2015-16 Budget Development-Additional Detail
JH:LT:MW/imf
Page 2 of 2
ATTACHMENT NO. 1
2014.15 and 2015.16 Budget Development - Expenditure Summary
2013-14 2013-14 2014-15 2015-16
Description Budget Projected Proposed Proposed
1 Salaries & Wages $65.4 $61.4 $63.3 $64.0
2 Benefits 32.6 32.5 36.9 37.6
3 Operating Materials & Supplies 16.9 15.4 16.4 17.0
4 Contractual Services 23.3 21.9 23.2 24.1
5 Repairs & Maintenance 11.2 9.2 12.0 12.5
6 Utilities 7.7 6.7 7.1 7.4
7 Professional Services 3.6 2.7 2.9 3.0
8 Other Operating Supplies 2.5 2.0 1.5 1.7
9 Administrative Expenses 1.1 1.2 1.3 1.4
10 Research & Monitoring 0.9 0.7 0.7 0.7
11 Other Non-Operating Expenses 0.7 0.1 1.0 1.0
12 Training & Meetings 1.2 0.7 0.8 0.8
13 Printing & Publication 0.4 0.3 0.3 0.3
14 Cost Allocation (18.2) (13.9) (14.7) (15.3)
Net Operating Requirements $149.3 $140.9 $152.7 $156.2
ATTACHMENT NO. 2
2014-15 AND 2015-16 BUDGET DEVELOPMENT - ADDITIONAL DETAIL
Projected Proposed Proposed
2013-14 2014-15 2015-16
1) SALARIES AND WAGES $61.4 $63.3 $64.0
1a) Salaries $57.7 $59.4 $60.1
Salaries for 626 full-time equivalent (FTE) positions for all three years shown above
are included in this line item. Salary increases have only been included per existing
bargaining agreements. The Vacancy Factor was raised from the past trend of 3
percent to 5 percent based on the high volume of recent and near-future retirements,
and the time it will take to become fully staffed.
1 b) Leave Payoffs $ 2.2 $ 2.3 $ 2.3
Leave Payoffs for retirements are anticipated to remain constant for the next two years.
1c) Overtime $ 1.5 $ 1.6 $ 1.6
Overtime has remained constant at $1.5 million over the last several years. Of this
total, approximately $1.2 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 also has remained
essentially flat.
2) BENEFITS $32.5 $36.9 $37.6
2a) Retirement $23.0 $26.6 $26.8
District employees are members of the Orange County Employees' Retirement
System (OCERS). The employer's required contribution rate has been increased by
OCERS from 31.95 percent (FY 2013-14) to 36.57 percent (FY2014-15).
2b) Group Insurance $ 8.5 $ 8.9 $ 9.4
Includes Medical, Dental, Vision, Life Insurance, Medicare, Disability.
2c) Benefits, Other $ 1.0 $ 1.4 $ 1.4
Includes Workers' Compensation, Tuition Reimbursement, Development Pay and
Uniform Rental. Workers' Compensation ($0.76 million in FY 2014-15 and $0.79
million in FY 2015-16) is used to maintain the level of accumulated reserves within the
Workers' Compensation self-insurance funds. The Development Pay Program
($300,000) is intended to promote employee efforts that increase job knowledge, skills,
and abilities.
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2014-15 AND 2015-16 BUDGET DEVELOPMENT — ADDITIONAL DETAIL
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2013-14 2014-15 2015-16
3) OPERATING MAT'LS & SUPPLIES $15.4 $16.4 $17.0
3a) Chemical Coagulants $ 5.8 $ 6.0 $ 6.3
Anionic Polymer—Anionic polymer is added to the primary clarifiers in combination
with ferric chloride to enhance primary clarifier performance. The budget for FY 2014-
15 is $403,000 with FY2015-16 increasing to $419,000 because of a 4 percent
anticipated unit rate increase.
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. Usage at both plants have increased because of
additional secondary sludge production as Plant No. 1 now operates two activated
sludge facilities, and the new trickling filters at Plant 2 are fully operational. The
anionic polymer budgets are $1,548,000 for FY 2014-15 and $1,610,000 in FY 2015-
16.
Ferric Chloride— Ferric chloride is an iron salt which is currently 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 an
additional amounts of ferric chloride are added to the digesters to control hydrogen
sulfide. The projected ferric chloride budget for FY 2014-15 is $4,090,000 and
$4,254,000 in FY2015-16, a 4 percent increase due to anticipated unit rate increase.
3b) Odor Control $ 6.9 $ 7.3 $ 7.6
Hydrogen Peroxide— Hydrogen peroxide is used in the foul air scrubbers to control
hydrogen sulfide and in the trunk sewers for control of sulfides. The projected budget
for FY 2014-15 is $1,109,000 and $1,153,000 in FY 2015-16, a 4 percent increase due
to anticipated rate increases.
Sodium Hydroxide (Caustic Soda)— Caustic soda is used in the foul air scrubbers
and in the District's main trunk lines tributary to the treatment plants. The projected
total cost of caustic soda for FY 2014-15 is $532,000 and $553,000 in FY2015-16.
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. The projected budget for FY 2014-15 is $28,000.
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
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2014-15 AND 2015-16 BUDGET DEVELOPMENT — ADDITIONAL DETAIL
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trucks for reuse. In FY 2014-15 and FY 2015-16, the projected budgets are $2,600
and $2,700 respectively.
Magnesium Hydroxide, Trunklines— Magnesium hydroxide reduces the formation of
hydrogen sulfide which causes odor and corrosion. Contract services include supply,
operational monitoring, sampling, reporting and on-going maintenance services for
odor control chemical dosing systems within the wastewater collection and
conveyance system. The projected expense for FY 2014-15 is $1,875,000. In FY
2015-16, the proposed usage is the same at a proposed cost of$1,950,000, assuming
a 4 percent unit cost increase.
Ferrous Chloride, Trunklines— Ferrous Chloride is used in the trunks to reduce
hydrogen sulfide generation. This contract provides supply, operational monitoring,
sampling, reporting and on-going maintenance services for odor control chemical
dosing systems within the wastewater collection and conveyance system. In FY
2014-15, the projected expense is $2,800,000. In FY 2015-16, the proposed budget
increases to $2,912,000 because of an estimated rate increase of 4 percent.
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. The
budget projected usage for FY 2014-15 is $775,000. The FY 2015-16 proposed use is
the same with, an increase in budgeted cost of$806,000 due to an estimated 4
percent unit rate increase.
Bleach, Treatment Plant Odor Control — The projected total cost of odor control
bleach for FY 2014-15 is $185,000. For FY 2015-16, staff proposes an estimated
budget of$192,400, a 4 percent increase.
3c) Disinfection $ 0.3 $ 0.5 $ 0.5
Sodium Hypochlorite (Bleach)—Approximately 80% of all bleach is used for effluent
disinfection. The remaining treatment plant bleach usage is disinfection of plant water
and odor control. It is anticipated that the District treatment plant bleach budgets will
be $445,000 in FY 2014-15 and $463,000 in FY 2015-16.
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. The sodium bisulfite
costs are expected to be $30,000 and $31,000 in FY 2014-5 and FY 2015-16
respectively.
3d) Tools and Safety Equipment/Tools $ 0.9 $ 0.9 $ 0.9
O&M, FSSD, and Safety use 98% of these budgets. There has been an increase in
these budgets since the definition of capital equipment has changed; tools and
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2014-15 AND 2015-16 BUDGET DEVELOPMENT — ADDITIONAL DETAIL
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2013-14 2014-15 2015-16
equipment that cost less than $5,000 have a minimum useful life of three years and
are not considered to be capital. Personal Protective Equipment requirements have
increased, and there are different tools needed to maintain the new facilities.
3e) Laboratory Chemicals and Supplies $ 0.6 $ 0.7 $ 0.7
Over 90% of this budget supports the Environmental Sciences 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
Vehicle and vessel gasoline and diesel fuel, compressed natural gas, diesel and oil
used in the operation of the mobile equipment, within generators and other operating
equipment are included in these budgets. The future price of gasoline and natural gas
are the major impacts to these budgets.
3g) Other $ 0.3 $ 0.3 $ 0.3
Other smaller operating expenses collectively reported within this one line item such
as janitorial supplies and miscellaneous operating supplies.
4) CONTRACTUAL SERVICES $21.9 $23.2 $24.1
4a) Solids Removal $16.6 $17.4 $18.1
Biosolids — Solids production for FY 2013-14 has increased with the operation of the
new secondary facilities at both treatment plants. The total cost for FY 2014-15 is
projected to be $17,442,000, a 4.8 percent increase over FY 2013-14, and
$18,140,000 in FY 2015-16, an increase of 4.0 percent. These increases are
attributable to project increases in the hauling transportation costs.
4b) Other Residual Solids and Waste $ 0.8 $ 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.
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2014-15 AND 2015-16 BUDGET DEVELOPMENT — ADDITIONAL DETAIL
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2013-14 2014-15 2015-16
4c) Grounds keeping/Janitorial/Security $ 1.0 $ 1.2 $ 1.3
The Security Services budget is projected to increase from the FY 2013-14 projected of
$380,000 to $571,000 in FY 2014-15, a $191,000 or 50 percent increase, in order to
increase roving patrol and additional guards to monitor all video cameras 24/7 based
upon security audit recommendation. The Security Service budget is proposed to
increase an additional 4 percent to $594,000 in FY 2015-16. The Grounds keeping and
Janitorial Service budgets are mostly limited to inflationary increases.
4d) County Service Fee $ 0.6 $ 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 $ 0.7 $ 0.7 $ 0.7
Ultimately the oxygen plant will be decommissioned and the oxygen will be provided
by a new vapor technology. The costs for purchased oxygen are included in the
budget.
4f) Temporary Services $ 0.3 $ 0.4 $ 0.4
District staff has greatly decreased the use of temporary services by eliminating long-
term temporary help and finding alternative solutions in-house (reallocation of labor
and work as required, essential overtime). The requested temporary services are for
long-term leaves, vacancies, and special studies.
4g) Outside Lab Services $ 0.2 $ 0.2 $ 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. Contracted biosolids testing meets the State of Arizona
requirement for analyses to be performed in an Arizona certified laboratory.
4h) Contracted Services, Other $ 1.7 $ 1.7 $ 1.8
Over 95% of contracted services are in support of operating and maintaining the
collection system and the treatment plants. These services include line cleaning
($405K), closed circuit television of lines ($450K), manhole frame and cover
rehabilitation and replacement ($250K), manhole structural repair and coating
($350K), sewer repair and relining ($230K), tunnel cleaning, root and pest control
($80K), and traffic control ($105K).
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2014-15 AND 2015-16 BUDGET DEVELOPMENT — ADDITIONAL DETAIL
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2013-14 2014-15 2015-16
5) REPAIRS AND MAINTENANCE $ 9.2 $ 12.2 $ 12.5
5a) Materials & Services $ 7.7 $ 10.2 $ 10.7
Over 98% of these budgets support the maintenance of the collection system and the
treatment plants. 0&M contracted materials and services for FY 2014-15 include:
Central Generation Overhaul ($1.8 M), digester cleaning ($1.5 M); Carbon media
replacement ($779K); process area painting preventive maintenance ($689K); Relay
Setting Project ($355K); Interplant line inspection and maintenance ($175K); Central
Generation generator rehabilitation ($130 K); and other maintenance services and
operating materials, including street overlays/manhole cover raisings and
replacements, warehouse stock. The increases following FY 2013-14 are attributed to
items previously deferred being addressed in FY 2014-15 and FY 2015-16.
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 $ 2.1 $ 2.1
Approximately 90% of service contracts are computer-related or O&M/FSSD
maintenance-related. Major contracts for Information Technology include JDE-
Primavera-Oracle support ($315K); copy center services ($275K); Reprographics
($250K); Microsoft License Agreements ($200K); IBM Software Maintenance for
Maximo and FileNet-AS ($130K); and various smaller service agreements.
0&M/FSSD service contracts include Fleet Services area subsurface remediation
($150K); Excel Door and Gateway ($124K); Preventative maintenance on
Uninterruptible Power Supply electrical maintenance systems ($100K), Central
Generation Emissions Monitoring ($52K); and various other plant maintenance
agreements. Additional service maintenance agreements covering various equipment
items are budgeted throughout the District.
6) UTILITIES $ 6.7 $ 7.1 $ 7.4
6a) Power $ 5.2 $ 5.8 $ 6.0
Electricity—The treatment plants and support buildings estimated consumption and
resulting costs for electrical energy purchased from Southern California Edison for the
2014-15 fiscal year are $4,573,000 and the pump stations budget for the same period
is $602,200. Other support buildings power costs are $625,000, completing the total
estimated power costs for FY 2014-15.
6b) Water $ 0.9 $ 0.6 $ 0.7
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.
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2014-15 AND 2015-16 BUDGET DEVELOPMENT — ADDITIONAL DETAIL
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2013-14 2014-15 2015-16
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. A project allowing the use of strained plant water at
Plant 1 has significantly reduced the costs. The proposed budgets for FY 2014-15 and
FY 2015-16 are $148,000 and $154,000, respectively. GAP water is used when
available; for most of the year, Ground Water Replenishment System water is used at
both treatment plants.
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 proposed total
potable water cost for FY 2014-15 is $478,000.
6c) Natural Gas $ 0.4 $ 0.4 $0.6
Natural Gas —The total FY 2014-15 natural gas estimate is $365,000, slightly lower
than the FY 2013-14 projected as there was no new air quality permit requirements.
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.
The"core subscription" is natural gas purchased directly from The Gas Company and used
mainly for building heating and supplemental process heating. The Core gas at Plant 2 has
decreased considerably with the return of the auxiliary boilers from natural gas to digester gas.
The previous switch to natural gas had been made to provide more digester gas to CenGen to
support two engines and still comply with the AQMD limits for use of natural gas.
7) PROFESSIONAL SERVICES $ 2.7 $ 2.9 $ 3.0
7a) Legal Services ($784K)
Legal services are services primarily provided by General Counsel including hours at
the District, hours attending committee and board meetings, and general legal support.
Other specialized firms are also included in this budgeted amount.
7b) Engineering Services ($563K)
These services provide technical support that in-house staff cannot provide or do not
have the time to provide. In FY 2014-15 requested engineering services include a
Arch Structural ($270K); Arc flash analysis for electrical systems at both plants
($150K); Biofilter Operation and Compliance ($65K); and miscellaneous studies and
evaluations ($78K).
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2014-15 AND 2015-16 BUDGET DEVELOPMENT — ADDITIONAL DETAIL
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2013-14 2014-15 2015-16
7c) Advocacy Efforts ($166K)
These are consultant services for promoting the District's interests in Sacramento and
Washington D.0 concerning legislation and funding.
7d) Audit and Accounting ($199K)
These services represent the cost for the District's independent annual financial audit
and contracted internal auditing services.
7e) Software Program Consultant ($372K)
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 ($816K)
Professional services also includes: Labor Negotiation Services ($105K); an
environmental science consultant ($62K); and industrial hygiene services ($44K).
Collectively reported within the one line item "Other" are various smaller services
including: Dig Alert tickets; website support; photography; coaching and other small
professional service expenses.
8) OTHER OPERATING SUPPLIES $ 2.2 $ 2.3 $ 2.4
8a) Prop. and General Liability Insurance ($1.0M)
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 a self-insurance retention of$250,000. The District
is self-insured for all property damage from the perils of earthquake.
The proposed appropriation of$1.0 million is needed to maintain the recommended
level of reserve within the general liability and property self-insurance fund.
8b) Regulatory Operating Fees ($792K)
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 ($408K)
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2014-15 AND 2015-16 BUDGET DEVELOPMENT — ADDITIONAL DETAIL
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2013-14 2014-15 2015-16
Other material, supplies, and services collectively reported within this one line item.
9) ADMINISTRATIVE EXPENSE $ 1.2 $ 1.3 $ 1.4
9a) Small Computer Items ($511K)
New Computers/Notebooks/Tablets, printers, monitors, Networking equipment,
Computer peripherals, Digital equipment, PDAs, Digital Cameras, etc.
9b) Memberships ($536K)
OCSD's largest membership costs are for District-wide participation in groups such as
the National Association of Clean Water, the Orange County Business Council, 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 ($63K)
Office supplies include such items as envelopes, letterhead, notebooks, calendars, etc.
9d) Other ($190K)
Other smaller administrative expenses collectively reported within this one line item.
10) RESEARCH AND MONITORING $ 0.7 $ 0.7 $ 0.7
10a) Environmental Monitoring ($286K)
The budget line item for"Environmental Monitoring" includes costs associated with the
District's National Pollution Discharge Elimination System (or NPDES) permit-required
ocean monitoring program. Regional Monitoring occurs every 4-5 years and samples
the coastal ocean from Point Conception in the north to the US-Mexico Border in the
south. This is a cooperative, multi-agency effort; most recently, it included 65 other
agencies and organizations.
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 MIN Nerissa.
10b)Air Quality Monitoring ($71K)
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
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2014-15 AND 2015-16 BUDGET DEVELOPMENT — ADDITIONAL DETAIL
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2013-14 2014-15 2015-16
filters, P1 primary basin install and modifications, etc.). Periodically, there is a
requirement to test the waste gas flares.
10c) Other Research ($340K)
OCSD contributes annually to research organizations such as the Southern California
Coastal Water Research Project and the Water Environmental Research Foundation.
11) OTHER NON-OPERATING EXPENSE $ 0.1 $ 1.0 $ 1.0
11a) General Manager Contingency ($600K)
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 ($400K)
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.
12) TRAINING AND MEETINGS $ 0.7 $ 0.8 $ 0.8
12a)Training ($662K)
An amount equal to approximately 1.5 percent of the Regular Salaries budget is allocated
to Training. Training activities are coordinated though the Human Resources Division.
This category includes ongoing technical and safety training and materials for staff;
expansion of the Leadership Academy training program, required training for
computerized plant monitoring and control systems and training to allow for a more
adaptive and flexible work force.
12b) Meetings ($138K)
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 $ 0.3 $ 0.3
13a) In-House Publishing ($285K)
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2014-15 AND 2015-16 BUDGET DEVELOPMENT — ADDITIONAL DETAIL
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2013-14 2014-15 2015-16
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 ($15K)
Other printing and publishing expenses collectively reported within this one line item.
14) COST ALLOCATION ($13.9) ($14.7) ($15.3)
This represents direct and indirect labor, benefits, materials, and services charged to
the Capital Improvement Program (CIP)where the related work was performed.
11
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)
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
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
SARI Santa Ana River Inceptor
SARWQCB Santa Ana Regional Water Quality Control Board
Glossary of Terms and Abbreviations
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.
Collform 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.
Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic
wastewater contaminants.
Glossary of Terms and Abbreviations
Dilution to Threshold (D/T) - 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 (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.
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.
Glossary of Terms and Abbreviations
Watershed —A land area from which water drains to a particular water body. OCSD's service area is
in the Santa Ana River Watershed.