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HomeMy WebLinkAbout04-10-2013 Administration Agenda Package Wednesday, April 10, 2013 5:30 P.M. Orange County Sanitation District Administration Building Regular Meeting of the Board Room Administration Committee 10844 Ellis Avenue 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 13, 2013, Administration Committee Meeting. (Book Page 7) 2. Recommend to the Board of Directors to (Items A-C): A. Authorize the General Manager to enter into contracts for Temporary Employment Services (Specification No.CS-2009-421BD) for a total amount not to exceed $364,000 per year, for a one-year period (July 1, 2013 through June 30, 2014), with a one-year renewal option with the following temporary service firms; and, 1. Aerotek Inc.: (General, Engineering, Laboratory) 2. AppleOne Employment Services: (General) 3. Material and Contract Services - Procurement Services Associates: (Contract Services) 4. On Assignment- Lab Support: (Laboratory) 5. TEG Staffing: (Human Resources) 6. TekSvstems: (Technical) 04/10/13 Administation Committee Agenda Page 1 of 3 Book Page 1 7. Project Partners: (Technical) 8. Xvon Business Solutions: (Technical) 9. Robert Half, Inc. B. Approve an annual contingency of$36,000; and, C. Authorize the General Manager to add or delete such firms as necessary to meet work requirements as identified by the Human Resources Department. (Book Page 10) INFORMATION ITEMS: 3. FY 2013-14 Benefits Program Renewal Costs (Book Page 18) 4. FY 2013-14 Budget (Book Page 20) OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: The next Administration Committee Meeting is scheduled for Wednesday, May 8, 2013. 04/10/13 Administation Committee Agenda Page 2 of 3 Book Page 2 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. Aoenda Postina: 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 10044 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. Maria E.Ayala Clerk of the Board (714)593-7130 mavala(rpocsd.com For any questions on the agenda,Committee members may contact staff at: General Manager Jim Herberg (714)593-7300 iherbera(cbocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 rahirelli/clocad.com Director of Finance and Lorenzo Tyner (714)593-7550 Itvner(rpocsd.com Administrative Services Director of Human Resources Jeff Reed (714)593-7144 ireed(rpocsd.com 04/10/13 Administration Committee Agenda Page 3 of 3 Book Page 3 ADMINISTRATION COMMITTEE Needng Dare TOBd. f Dir. 04/10/13 0 I 4/2413 AGENDA REPORT Item Number Item Number z Orange County Sanitation District FROM: James Herberg, General Manager Originator: Jeff Reed, Director of Human Resources SUBJECT: TEMPORARY EMPLOYMENT SERVICES GENERAL MANAGER'S RECOMMENDATION A. Authorize the General Manager to enter into contracts for Temporary Employment Services (Specification No.CS-2009-421BD) for a total amount not to exceed $364,000 per year, for a one-year period (July 1, 2013 through June 30, 2014), with a one-year renewal option with the following temporary service firms; and, 1. Aerotek Inc.: (General, Engineering, Laboratory) 2. AooleOne Emolovment Services: (General) 3. Material and Contract Services - Procurement Services Associates: (Contract Services) 4. On Assignment Staffing Services- Lab Support: (Laboratory) 5. TEG Staffing: (Human Resources) 6. TekSvstems: (Technical) 7. Project Partners: (Technical) 8. Xvon Business Solutions: (Technical) 9. Robert Half, Inc. 10. Procurement Services Associates B. Approve an annual contingency of$36,000; and, C. Authorize the General Manager to add or delete such firms as necessary to meet work requirements as identified by the Human Resources Department. SUMMARY ( Orange County Sanitation District's (OCSD) strategic staffing plan includes utilizing full-time and part-time regular employees, contract employees, and temporary employees. This report specifically focuses on temporary services employees who are utilized as a supplement to the regular workforce for accommodating workload demands and workflow fluctuations. ( The key advantage associated with temporary staffing is flexibility, since temporary employees are used for adjusting staffing levels quickly and for a limited timeframe. Temporary services are utilized for filling approved budgeted positions due to illness, vacations, leaves of absence, and vacant open positions; in addition, temporary Page 1 of 4 Book Page 7 services are also used for approved special projects and budgeted capital improvement projects (CIP)that are non-engineering related. ( In June 2004, the Board of Directors awarded contracts for Temporary Employment Services for a period of one year, renewable for a period of four years. The Board of Directors authorized staff to utilize a combination of several firms to supply temporary services to OCSD in order to provide staffing flexibility and to comply with the OCSD Purchasing Resolution. These contracts expired on June 30, 2009. Fiscal Year Amount 2013 —2014 $400,000 2012 —2013 $450,000 2011 -2012 $269,000 2010 —2011 $424,200 2009—2010 $760,020 2008 -2009 $1,700,000 2007-2008 $1,700,000 PRIOR COMMITTEE/BOARD ACTIONS May 2012 — Board approved entering into contracts for Temporary Employment Services (Specification No. CS-2009-4218D) with temporary service firms for a total amount of $405,000 per year, for a one-year period (July 1, 2012 through June 30, 2013), with a one-year renewal option. A $45,000 increase had been added to the projected budget as a contingency fund for unplanned staffing needs that adversely impacted OCSD staffing resources. ( December 2011 — Board approved to increase the current Temporary Employment Services (Specification No. CS-2009-421BD) funding of $150,000 by $119,000 with temporary service firms for a new total amount not to exceed $269,000 for the remainder of the fiscal year (through June 30, 2012). ( June 2011 — Board approved entering into contracts for Temporary Employment Services (Specification No. CS-2009-421BD) with temporary service firms for a total amount of $126,000 per year, for a one-year period (July 1, 2011 through June 30, 2012), with a one-year renewal option. A $24,000 increase had been added to the projected budget as a contingency fund for unplanned staffing needs that adversely impacted OCSD staffing resources. ( June 2009 - Board approved entering into contracts for Temporary Employment Services (Specification No. CS-2009-421BD) with temporary service firms for a total amount of $450,000 per year, for a one-year period (July 1, 2009 through June 30, 2010), with a one-year renewal option. A $50,000 increase had been added to the projected budget as a contingency fund for unplanned staffing needs that adversely impacted OCSD staffing resources. Page 2 of 4 Book Page 8 May 2004 — Board approved entering into contracts for Temporary Employment Services for: (1) Authorize staff to establish contracts for Temporary Employment Services, Specification No. S-2004-18113D, with temporary service firms for a one year period, July 1, 2004 through June 30, 2005, for a total amount not to exceed $1,700,000 per year; and (2) Authorize staff the option of four additional one year contract renewals, cancelable at any time, for a total amount not to exceed $1,700,000 per year; and, (3) Authorize staff to enter into these contracts with temporary service firms, as identified by the Human Resources Department, with the authorization to add or delete such firms as necessary to meet District work requirements. ADDITIONAL INFORMATION The proposed FY13/14 Operating budget for temporary services is $400,000 for unplanned staffing needs that adversely impact OCSD staffing resources such as Leaves of Absences (LOA's), promotions, and separations of employment. The contingency fund is being requested based on prior committee actions mentioned above where staff had to request periodic increases for the use of temporary services for CIP projects. This was due to CIP projects being initiated and approved by the Board during the fiscal year; however, appropriate staffing was not pre-planned during the initial budget process. There are approximately 4 temporary employees currently assigned to OCSD working predominantly on general administrative support and Information Technology assignments. Information Technology utilizes temporary staffing to support streamlining and automating of processes throughout the agency so that budgeted headcount does not need to be increased; in addition, the appropriate technical specialists can be utilized to augment existing skill sets as needed and for a limited time. The Facilities Engineering and Maintenance divisions are utilizing temporary staffing while current full time staff are away due to disability leaves of absence. OCSD currently utilizes 9 temporary services agencies to provide temporary workers on an as-needed basis to accomplish OCSD work requirements. The cost of a temporary employee includes the temporary's hourly rate. A mark-up rate is the "payment" to the temporary agency to cover the benefits provided to the temporary worker and overhead costs of the temporary agency. The mark-up rates for the current temporary agencies utilized by OCSD range from 30% to 70%. OCSD anticipates utilizing additional technical agencies in the future to meet departmental needs; therefore, staff is requesting authorization to enter into similar temporary services agreements with other providers without having to return to the Board to approve each additional staffing agency. Human Resources staff interviews each temporary agency prior to entering into a contract for services to ensure administrative requirements are met for doing business with OCSD. Temporary agencies work with Purchasing to sign applicable forms and agree to the proper insurance and employment practices prior to entering into a contract with OCSD. The Page 3 of 4 Book Page 9 contract includes specific information related to work hours, billing rates, invoicing and payment, confidentiality, etc. Award Date: 06/24/09 Contract Amount: $400.000/year Contingency: $36.000/year (9.89%) CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS The following attachment(s) are provided in hard copy and may also be viewed on-line at the OCSD website(www.ocsd.com) with the complete agenda package and attachments: ( Draft Temporary Services Agreement (6 Pages) Page 4 of 4 Book Page 10 Return to Agenda Report TEMPORARY SERVICES AGREEMENT THIS AGREEMENT is made and entered into, to be effective July 1, 2012 by and between ORANGE COUNTY SANITATION DISTRICT having a principal place of business at 10844 Ellis Avenue, Fountain Valley, California, 92708 (hereinafter referred to as 'OCSD") and having a principal place of business at (hereinafter referred to as "Company"), collectively referred to as the"Parties". Company represents that it has expertise providing Support Staffing services ("Services"). Based on Company's expertise and experience, OCSD wishes to temporarily engage the Services of Company, and in consideration of the covenants and agreements set forth herein,the Parties agree as follows: 1. Engagement of Company a. OCSD hereby engages Company to provide Assigned Employees to perform Services and Company accepts the engagement, and agrees to provide the Assigned Employees to perform Services upon the terms and conditions set forth herein. OCSD agrees that it is responsible for managing the work and work product assigned to the Assigned Employees. Notwithstanding the foregoing, the Assigned Employees shall be employees of Company, and Company shall remain the legal employer of the Assigned Employees placed with OCSD for all purposes, including responsibility for (i) hiring, evaluating, rewarding, terminating or disciplining the Assigned Employees; (ii) paying all federal, state, and local labor and employment taxes; and (iii) calculation of wages, and unemployment and workers compensation insurance. b. The services provided by SERVICE PROVIDER under this Agreement shall not create an employer/employee relationship. c. SERVICE PROVIDER, all its employees, officers, independent contractors, and/or agents shall only be entitled to the compensation provided for in this Agreement and shall not be eligible to receive any other benefits from OCSD. d. Company shall be responsible for providing, at Company's expense, worker's compensation or other insurance as well as all licenses and permits usual or necessary for conducting the Services hereunder. Company shall be obligated to pay any and all applicable local, state and federal payroll and other taxes incurred as a result of fees hereunder. Company hereby indemnifies OCSD for any claims, losses, costs, fees, liabilities, damages or penalties suffered by OCSD arising out of Company's breach of this provision. 2. Assigned Employees a. Assigned Employees are defined as the person or persons employed by the Company and temporarily assigned to OCSD to perform temporary Services as described under this Agreement. b. Company shall be responsible for assigning employees as exempt or nonexempt per the Guidelines set by the Federal Government. Exempt employees will not be eligible for overtime nor will their pay be deducted for absences of less than one day. c. OCSD reserves the right to require Assigned Employees to sign an acknowledgement as to their understanding that they are employees of the Company and not of OCSD and that they shall not be entitled to any benefits accorded to those individuals listed on OCSD'S payroll. Temporary Services Agreement BookIle ge,711 Orange County Sanitation District Return to Agenda Report 3. Work Hours Company shall provide Services to OCSD for up to five (5) days per week, eight (8) hours per day or a 9/80 schedule which is eight(8)—nine (9) hour days and one(1)- eight(8)hour day in a two week period at the discretion of OCSD. Additional hours above the forty (40) hours per week or eighty (80) hours in two weeks may be worked if prior written approval is obtained from OCSD. Assigned Employees shall work on site generally between OCSD'S business hours of 6:00 a.m.to 5:00 p. in,with one hour set aside each of these days as non-compensated personal time. Company agrees to act in good faith for the duration of the Agreement unless terminated sooner in accordance with the provisions of this Agreement. 4. Company's Representations In the performance of the Services under this Agreement, Company shall adhere to the highest fiduciary standards, ethical practices and standards of care and competence. Company agrees to comply with all applicable Federal, State and local laws and regulations. 5. Billing Rates a. At the time Company submits resumes to OCSD for consideration, Company shall be required to supply the billing rates of each of the candidates. Billing Rates shall be in accordance with the hourly rate billing range in Exhibit B. b. OCSD reserves the right to negotiate billing rates with Company. OCSD, at its sole discretion, shall be the determining party as to whether billing rates submitted are acceptable for any position required. c. Any changes in billing rates shall have the prior written approval of OCSD. OCSD, at its sole discretion, reserves the right to refuse any increases other than those mandated either by state or federal law. 6. Invoicing and Payment a. Company shall submit invoices to OCSD'S Accounts Payable Division on a monthly basis for Services performed. Company shall support each invoice with time sheets, approved by OCSD, for Services performed. Invoices shall include the Purchase Order Number and shall be submitted for approval to OCSD at the above-referenced address. After OCSD has approved the invoice, payment will be due within thirty (30) days of receipt of the invoice. b. OCSD shall have fifteen (15)days after the date of invoice receipt to contest in good faith the amounts and items charged. If uncontested amounts remain unpaid for thirty (30) days or more, Company may discontinue Services until such amounts are paid. c. Company acknowledges and understands that Company, all of its employees, officers, independent contractors, and/or agents shall only be entitled to payments for Services performed and shall not be entitled to any other benefits from OCSD. 7. Agreement Period a. Services to be provided by Company under this Agreement shall commence on and run through It. OCSD reserves the right to renew this Agreement annually for up to four (4) additional years upon approval and written agreement of OCSD and Company. OCSD makes no obligation to extend or renew. All renewals may be exercised through the Amendment and Purchase Order process. Temporary Services Agreement BwA gfe,71 z Orange County Sanitation District Return to Agenda Report S. Billing Reports Company shall be required to submit a report each month to OCSD'S Human Resources Department that includes Assigned Employee(s)name(s), project number(s), bill rate(s), pay rate(s)and hours worked. 9. Expenses OCSD shall reimburse Company for reasonable out-of-pocket expenses incurred by Assigned Employees required and actually incurred in performing services, provided the Company and/or Assigned Employees have obtained OCSD's prior written approval and submits supporting documentation satisfactory to OCSD. If Assigned Employees are required to travel, they must first obtain Company and OCSD'S written consent. Time spent in local travel to and from home to OCSD'S plant sites shall not be considered time worked and shall not be compensated. 10. Audit Rights Company agrees that, during the term of this Agreement and for a period of three (3) years after its termination, OCSD shall have access to and the right to examine any directly pertinent books, documents, and records of Company relating to the invoices submitted by Company pursuant to this Agreement. 11. Ownership of Intellectual Property a. Company agrees that all designs, plans, reports, specifications, drawings, schematics, prototypes, models, inventions, and all other information and items made during the course of this Agreement and arising from the Services (hereinafter referred to as "New Developments") shall be and are assigned to OCSD as its sole and exclusive property. Company agrees to promptly disclose to OCSD all such New Developments. Upon OCSD'S request, Company agrees to assist OCSD, at OCSD'S expense, to obtain patents or copyrights for such New Developments, including the disclosure of all pertinent information and data with respect thereto, the execution of all applications, specifications, assignments, and all other instruments and papers which OCSD shall deem necessary to apply for and to assign or convey to OCSD, its successors and assigns, the sole and exclusive right, title and interest in such New Developments. Company agrees to obtain or has obtained written assurances from its employees and contract personnel of their agreement to the terms hereof with regard to New Developments and Confidential Information. b. Company warrants that Company has good title to any New Developments, and the right to assign New Developments to OCSD free of any proprietary rights of any other party or any other encumbrance whatever. 12. Confidentiality and Non-Disclosure a. Company acknowledges that in performing the Services hereunder, OCSD may have to disclose to Company orally and in writing certain confidential information that OCSD considers proprietary and has developed at great expense and effort. As used herein, the term "Confidential Information" means any scientific or technical data, marketing, operating, financial, business or any other information, design, process, procedure, formula or improvement in written, printed, graphic, or electronically recorded materials, that is commercially valuable to OCSD and not generally known in the industry. Company further acknowledges that the Services and any deliverables may incorporate Confidential Information. Company agrees that all items of Confidential Information are proprietary to OCSD and shall remain the sole property of OCSD. Id. Company agrees as follows: i. To use the Confidential Information only for the purposes described herein;to not reproduce the Confidential Information; to hold in confidence and protect the confidential Information from dissemination to and use by anyone not a party to Temporary Services Agreement Bool4 gJt 3 Orange County Sanitation District Return to Agenda Report this Agreement; and to not use the Confidential Information to benefit itself or others. ii. To restrict access to the Confidential Information to personnel of Company who (i) have a need to have such access and (ii) have been advised of and have agreed in writing to treat such information in accordance with the terms of this Agreement. iii. To return all Confidential Information in Company's possession upon termination of this Agreement or upon OCSD'S request,whichever occurs first. iv. To hold in confidence information and materials, if any, developed pursuant to the Services hereunder. c. The provisions of this Paragraph shall survive termination or expiration of this Agreement and shall continue for so long as the material remains confidential. 13. Insurance Company shall purchase and maintain, throughout the fife of this Agreement, disability insurance as well as other insurance as defined in the Acknowledgement of Insurance Requirements (attached hereto and incorporated herein as Exhibit "A"). Company shall not commence work under this Agreement until all required insurance is obtained in a form acceptable to OCSD. Failure to maintain required insurance coverage shall result in termination of this Agreement. 14. Indemnification To the fullest extent permitted by law, Company shall indemnify, defend, protect and hold harmless OCSD and all of OCSD's officials, officers, directors, employees, consultants, and agents (collectively the "Indemnified Parties"), from any and against any and all claims, damages, liabilities, causes of action, suit, arbitration award, losses, judgments, fines, penalties, costs and expenses (including, without limitation, reasonable attorneys'fees, disbursements and court costs; individually, a "Claim"; collectively, "Claims") which may arise from, result from, or are related to Company's negligence, recklessness, or willful misconduct in performing the Services, or any breach or failure of Company to perform its Services contained in this Agreement. Notwithstanding the foregoing, nothing herein shall be construed to require CONSULTANT to indemnify the Indemnified Parties from any Claim arising solely from: (A) the active negligence or willful misconduct of the Indemnified Parties; or (B) a natural disaster or other act of God, such as an earthquake. Exceptions (A)through (B)above shall not apply, and CONSULTANT shall, to the fullest extent permitted by law, indemnify the Indemnified Parties, from Claims arising from more than one cause if any such cause taken alone would otherwise result in the obligation to indemnify hereunder." 15. Smoking Smoking is only allowed in designated areas. Smoking is not allowed in any building, electrically classified area or process area where methane gas may be present. Lack of compliance with OCSD Smoking policy will be cause for removal of offending personnel from the site, termination of the Agreement,or both. 16. Warrantees There are no warranties, expressed or implied, except as expressly set forth herein. 17. Conflict of Interest Company affirms that to the best of its knowledge there exists no actual or potential conflict between Company's families, business or financial interest or its Services under this Agreement, and in the event of change in either its private interests or Services under this Agreement, it will raise with OCSD any question regarding possible conflict of interest which may arise as a result of such change. Temporary Services Agreement Book+ ge7t4 Orange County Sanitation District Return to Agenda Report 18. No Solicitation of Employees No referral fee will be paid to Company for a referral which leads to the employment of the candidate with the OCSD if such employment commences more than ninety(90) days after the date stamp appearing on the candidate's resume submitted by or through Company, unless written extension has been given by OCSD'S Human Resources Department. 19. Termination a. OCSD reserves the right to terminate this Agreement, in whole or in part, without cause, at any time, by written notice to Company. Upon receipt of a termination notice, Company shall immediately discontinue all work under this Agreement (unless the notice directs otherwise). OCSD shall thereafter, within thirty (30) days, pay Company for work performed (cost and fee)to the date of termination. Company expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of the Agreement. Such notice of tennination shall terminate this Agreement and release OCSD from any further fee, cost or claim hereunder by Company other than for work performed to the date of termination. b. OCSD reserves the right to end an assignment with Assigned Employee(s), without or without cause, at any time by notifying Company and Company shall replace the assigned employee if requested by OCSD. In terminating an assignment with one or more Assigned Employee(s), OCSD shall not discriminate on the basis of race, religion, national origin, gender or other unlawful basis. In the event such termination is effected, the Assigned Employee shall immediately discontinue all work under this Agreement (unless the notice directs otherwise). c. OCSD may also immediately cancel for default of this Agreement in whole or in part by written notice to Company: I. if Company becomes insolvent or files a petition under the Bankruptcy Act; or ii. if Company sells its business; or Ill. if Company breaches any of the terms of this Agreement;or iv. if such breach is capable of cure and if the Company fails to cure the default within thirty(30)days. d. All OCSD property in the possession or control of Company shall be returned by Company to OCSD on demand, or at the termination of this Agreement, whichever occurs first. 20. Damage to OCSD's Property Any OCSD property damaged by Company will be subject to repair or replacement by Company at no cost to OCSD. 21. Drug-Free Workplace Company and all its employees and sub-consultants must adhere to the California Drug-Free Workplace Act, Sections 8350 through 8357. 22. Governing Law a. This Agreement shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in Orange County, in the event any action is brought in connection with this Agreement or the performance thereof. Temporary Services Agreement Book$ get 5 Orange County Sanitation District Return to Agenda Report b. In the event of a dispute as to the construction or interpretation of this Agreement, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS"), or any similar organization or entity conducting an alternate dispute resolution process. In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 at seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to California Code of Civil Procedure Section 1283.05. The arbitrator, or three arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator's decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein. 23. Modifications This Agreement may not be modified, changed or supplemented, nor may any obligations hereunder be waived or extensions of time for performance granted, except by written instrument signed by both Parties. 24. Assignment This Agreement and the rights, duties, and obligations hereunder may not be assigned by Company without the prior written consent of OCSD. 25. Partial Invalidity Any provision of this Agreement which is found to be invalid or unenforceable shall be ineffective to the extent of such invalidity or unenforceability, and the invalidity or unenforceability of such provision shall not affect the validity or enforceability of the remaining provisions hereof. 26. Nonexclusive Agreement This Agreement is not exclusive to Company. OCSD reserves the right to enter into similar or like agreements with other companies. 27. Entire Agreement This Agreement constitutes the entire agreement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof. This Agreement is intended by the Parties as the final expression of their agreement and may not be contradicted by evidence of any prior or contemporaneous agreement. 28. Notices Any notice required to be given hereunder shall be deemed to have been given either when served personally, by facsimile, or when sent by first class mail addressed to the Parties at the addresses set forth in this Agreement: DISTRICT: Chris Yates, C.P.M., CPPB Senior Buyer Orange County Sanitation District Temporary Services Agreement Boo!44e,71 6 Orange County Sanitation District Return to Agenda Report 10844 Ellis Avenue Fountain Valley, CA 92708 COMPANY: IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of the date first written above at Fountain Valley, California. ORANGE COUNTY SANITATION DISTRICT Dated: By: Contracts/Purchasing Supervisor Dated: By Print Name and Title IRS Employer's I.D. Number Temporary Services Agreement RooWP4e71 7 Orange County Sanitation District ADMINISTRATION COMMITTEE Needng Dare To ad.of Dir. 04,10,13 -- AGENDA REPORT Item Number Item Number 3 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Jeff Reed, Director of Human Resources SUBJECT: FY 2013-14 Benefits Program Renewal Costs GENERAL MANAGER'S RECOMMENDATION Informational item. SUMMARY The total cost of insurance coverage will decrease by 0.3% or$32,660 for the next fiscal year(FY 2013-14). The total cost for FY 2013-14 is $10,637,348, which is proportionally shared as follows: ( OCSD cost: $8,625,329 Employee cost: $2,012,019 PRIOR COMMITTEE/BOARD ACTIONS May 2012 — An information item was presented to the Administration Committee regarding FY 2012-13 benefits program renewal costs. ADDITIONAL INFORMATION Premium changes for FY 2013-14 are as follows: Insurance Provider % Comments Medical Anthem Blue Cross 0.0 HMO and PPO, all employee groups Medical Kaiser Permanents 0.2 HMO, all employee groups Dental Delta Dental -3.9 All employee groups Vision Anthem Blue View 0.0 Rate guarantee through 7/1/14 EAP ComPsych 0.0 Rate guarantee through 7/1114 Life/AD&D Prudential 0.0 Rate guarantee through 7/1114 Short-Term Disability Prudential 0.0 Rate guarantee through 7/1/14 Long-Term Disability Prudential 0.0 Rate guarantee through 7/1114 Page t of 2 Book Page 18 Historical Summary: Rate Change % A FY FY FY FY FY FY Carrier l Coverage 13114* 12113 11112 10/11 09110 08I09 Medical: Anthem Blue Cross PPO/POS 0.0% 1.0% 10.3% 1.8% 2.5% 9.2% Medical: Anthem Blue Cross HMO 0.0% 1.0% 9.5% 12.8% 7.4% 9.9% Medical: Kaiser Permanente HMO 0.2% 5.6% 0.8% 13.6% 3.6% 11.7% Dental -3.9% -1.8% 9.2% 14.8% 0.0% 0.0% Vision 0.0% 0.0% 0.0% -18.7% 0.0% 0.0% EAP 0.0% 0.0% 0.0% 0.0% -21.2% 4.8% Life/AD&D 0.0% 5.3% 0.0% 0.0% -2.6% 0.0% Short-Term Disabilit 0.0% 9.6% 0.0% 0.0% -5.4% 0.0% Lon -Teml D'Isabfl' 0.0% 1 3.0% 1 0.0% 1 0.0% -9.6% 10.11% *Change%for FY 13114 is based on projected enrollments for the proposed policy year. Actual change%may vary. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE N/A JDH:JR:DM Page 2 of 2 Book Page 19 ADMINISTRATION COMMITTEE meeting Date To ad.of Dir. 04/10/13 -- AGENDA REPORT Item Number Item Number 4 Orange County Sanitation District FROM: James Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: FY 2013-14 Budget GENERAL MANAGER'S RECOMMENDATION Informational only. SUMMARY Discussion of the OCSD FY 2013-14 Budget was initiated at the February 13, 2013 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 re-adoption at the June 26, 2013 Board meeting. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package and attachments: 1. FY 2013-14 Budget Summary 2. FY 2013-14 Budget Development-Additional Detail JH:LT:MW Page 1 Book Page 20 Return to Agenda Report 2013-14 Budget Update Development - Expense Summary 2013-14 2012-13 2013-14 Proposed Description Projected Adopted Revision 1 Salaries &Wages 63.5 65.4 65.2 2 Benefits 29.8 30.8 32.5 3 Operating Materials &Supplies 17.6 19.8 17.7 4 Contractual Services 21.8 27.9 23.2 5 Repairs & Maintenance 10.8 11.9 11.8 6 Utilities 7.3 8.8 7.9 7 Professional Services 3.0 2.4 4.1 8 Other Operating Supplies 2.4 3.2 2.5 9 Administrative Expenses 1.4 1.2 1.3 10 Research & Monitoring 0.8 0.9 0.8 11 Other Non-Operating Expenses 0.1 0.0 0.7 12 Training & Meetings 1.4 1.2 1.5 13 Printing & Publication 0.4 0.4 0.5 14 Cost Allocation (15.5) (18.2) (18.2) Net Operating Requirements $144.8 $155.7 $151.5 Book Page 21 Return to Agenda Report 2013-14 BUDGET UPDATE DEVELOPMENT - ADDITIONAL DETAIL Previously Projected Adopted Proposed 2012-13 2013-14 2013-14 1) SALARIES AND WAGES $63.5 $65.4 $65.2 1a) Regular Salaries $49.9 $51.5 $51.3 Salaries for 625.75 full-time equivalent (FTE) positions in FY 2012-13 projected and FY 2013-14 proposed are included in this line item. This reflects a decrease of 2 FTE from the 627.75 FTE positions in the FY 2013-14 adopted budget. The decrease is offset by salary increases per adopted bargaining agreements. The Vacancy Factor was set at 3 percent based on trend information. 1 b) Leave Payoffs $ 2.7 $ 3.5 $ 2.7 Leave Payoffs for retirements are anticipated to be in line with recent history reflecting a surge in retirements of long-term employees. 1c) Overtime $ 1.8 $ 1.9 $ 1.9 Overtime is proposed to remain flat at$1,851,000 in FY 2013-14. Of this total, $1.6 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 $29.8 $30.8 $32.5 2a) Orange County Emp. Ret. System $19.4 $19.7 $21.7 District employees are members of the Orange County Employees' Retirement System (OCERS). The employer's required contribution rate has increased from 27.47 percent (Plans G & H) and from 26.69 percent (Plan B) in FY 2012-13 to 31.95 percent and 30.77 percent, respectively, in FY2013-14. 2b) Group Insurance $ 9.0 $ 9.9 $ 9.9 Includes Medical, Dental, Vision, Life Insurance, Medicare, Disability. In FY 2011-12, the proposed group insurance budget includes approximately $15,760 per employee (625.5 proposed positions), an estimated 10.0 percent increase over the prior year. 2c) Benefits, Other $ 1.4 $ 1.2 $ 0.9 Includes Workers' Compensation, Tuition Reimbursement, Development Pay and Uniform Rental. Workers' Compensation ($0.80 million in FY 2012-13 and $0.46 million in FY 2013-14) is used to maintain the level of accumulated reserves within the Workers' Compensation self-insurance funds. The Development Pay Program ($276,000) is intended to promote employee efforts that increase job knowledge, skills, and abilities. 1 Book Page 22 Return to Agenda Report 2013-14 BUDGET UPDATE DEVELOPMENT - ADDITIONAL DETAIL Previously Projected Adopted Proposed 2012-13 2013-14 2013-14 3) OPERATING MAT'LS & SUPPLIES $17.6 $19.8 $17.7 3a) Chemical Coagulants $ 6.6 $ 7.4 $ 6.8 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 123,000 active pounds with an estimated 2.9% rate increase. The anionic polymer budget for FY 2013-14 is $378,000. 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 2013-14, the rate is projected to be 3.2% higher and usage to be the same at 670,000 active pounds at a cost of$1,642,000. 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 2013-14 is 7,500 dry tons, at an estimated cost of$4,754,700. 3b) Odor Control $ 7.4 $ 8.7 $ 7.8 Hydrogen Peroxide- Hydrogen peroxide is used in the foul air scrubbers at the treatment facilities to control hydrogen sulfide. Usage for FY 2013-14 is estimated to be 583,900 gallons at a cost of$1,177,600. The budget increase is due to an estimated 2.9% 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 2013-14, staff proposes the usage for the scrubbers to be 160 dry tons with a budget of$128,000. The collection system usage is estimated to be 1,150 dry tons with a budget of$620,000. The total caustic soda budget for FY2013-14 is $748,000. Muriatic Acid - Muriatic Acid (hydrochloric Acid) is used to backwash the media in the foul air scrubbers, associated piping and pumps. This cleans deposits caused by hard water, sulfides from the reaction with the foul air, and caustic soda used in the scrubbing process. Muriatic Acid is also used as a new method for cleaning polymer tanks. The projected usage for FY 2013-14 is 39,300 gallons with a budgeted cost of$49,000. 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 2013-14, the projected budgets are $4,100 for approximately 80 gallons of highly concentrated solution. 2 Book Page 23 Return to Agenda Report 2013-14 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL Previously Projected Adopted Proposed 2012-13 2013-14 2013-14 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 FY2013-14 is $2,700,000. 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 2,500 dry tons in FY 2013-14, and the proposed budget is $2,100,000. 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 2013-14 proposed usage is estimated to be 240,000 gallons with a budget of$700,000. Bleach, Treatment Plant Odor Control — Bleach is used in treatment plant odor control scrubbers and has replaced more expensive chemicals. For FY 2013-14, staff proposes the usage for the scrubbers to be 584,340 gallons with an estimated budget of$295,000. 3c) Disinfection $ 0.8 $ 1.3 $ 0.5 Sodium Hypochlorite (Bleach)—Approximately 51% of the process bleach is used for effluent disinfection. 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. Effluent disinfection bleach use has decreased by over 70% after the new secondary facilities became operational. The decrease occurred because there is no longer primary bleach dosing at Plant 2 and because there are less solids in the final effluent. It is anticipated that the District will use approximately 835,000 gallons of process bleach in FY 2013-14 at a budgeted amount of$421,000. Sodium Bisulfate— 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 2013-14 because of the major decreases in outfall bleach disinfection. It is anticipated that the District will use 72,000 gallons of sodium bisulfite at a cost of$70,000 in FY 2013-14. 3 Book Page 24 Return to Agenda Report 2013-14 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL Previously Projected Adopted Proposed 2012-13 2013-14 2013-14 3d) Tools and Safety Equipment/ Tools $ 1.2 $ 1.0 $ 0.9 O&M and Facilities Support Services uses 65% of these budgets with the remaining 35% 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 $ 0.6 $ 0.7 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 $ 0.7 $ 0.6 $ 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 $ 0.3 $ 0.2 $ 0.1 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 $21.8 $27.9 $23.2 4a) Solids Removal $17.1 $21.4 $17.9 Biosolids — For FY 2013-14, biosolids production is estimated to be 276,000 wet tons, with increases in production at both plants as all new secondary treatment facilities are on-line. 4b) Other Residual Solids and Waste $ 0.8 $ 1.4 $ 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, 4 Book Page 25 Return to Agenda Report 2013-14 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL Previously Projected Adopted Proposed 2012-13 2013-14 2013-14 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 $936,000 in FY 2013-14. 4c) Grounds keeping/Janitorial/Security $ 1.0 $ 1.1 $ 1.1 Both Security Services and Grounds-keeping are proposed at a 4 percent increase in FY 2013-14 with an increase in Janitorial at less than one-half percent with no proposed change in services. 4d) County Service Fee $ 0.6 $ 0.6 $ 0.6 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 $ 0.6 The District Oxygen Plant was demolished and currently the activated sludge plant operates solely with purchased oxygen. The new agreement will also include some maintenance with the oxygen purchases. 4f) Temporary Services $ 0.3 $ 0.2 $ 0.3 Temporary Services are proposed to remain flat in FY 2013-14 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). 4g) Outside Lab Services $ 0.2 $ 0.1 $ 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. Approximately 25% 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 $ 1.3 $ 2.4 $ 1.6 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 Book Page 26 Return to Agenda Report 2013-14 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL Previously Projected Adopted Proposed 2012-13 2013-14 2013-14 5) REPAIRS AND MAINTENANCE $10.8 $ 11.9 $ 11.8 5a) Materials & Services $ 9.1 $ 9.8 $ 8.8 Almost 99% of these budgets support the maintenance of the collection system and the treatment plants. O&M Contracted materials and services for FY 2013-14 include: carpeting ($125K); Plant 2 Secondary Clarifier Maintenance ($180K); Digester Valve Replacement ($28K); Electric Protective Relay Calibration and Testing ($200K); Carbon Filter Replacements for Digester Gas Cleaning ($134K); Facilities Support Services contracted services include services to maintain the District fleet ($314K); fire protection systems; scale repairs; crane repairs; root and pest control; street overlays/manhole raising; manhole cover purchases; easement improvements and other materials and services ($347K). 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 $ 3.0 Approximately 42% and 57% 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 agreements ($1.3M). 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: process painting ($700K); crane certification; polymer tank cleaning; Dig Alert; tree trimming; fire extinguisher and fire sprinkler certification; Uninterruptible Power Supply electrical maintenance; filter carbon media exchanges; and various other plant maintenance and service maintenance agreements covering various equipment located throughout the District ($400K). Operations Divisions manage service agreements for the carbon changes for Steve Anderson Lift Station (SALS)odor control ($80K) and the Plant 2 Trickling Filter Solids Contact odor control ($220K). 6) UTILITIES $ 7.3 $ 8.8 $ 7.9 6a) Power $ 5.5 $ 5.5 $ 5.9 Electricity—The treatment plants and support buildings estimated consumption and resulting costs for electrical energy purchased from Southern California Edison for the 2013-14 fiscal year are shown in the table below and total $5,117,000. The proposed budget for electricity for Collections and pump stations adds approximately$750,000 for a total electricity budget of$5,879,000. The 2013-14 proposed budget is 7.2 percent higher than the 2012-13 projection. This increase is due to anticipated increased energy consumption at both plants related to the operation of new facilities. 6 Book Page 27 Return to Agenda Report 2013-14 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL Previously Projected Adopted Proposed 2012-13 2013-14 2013-14 FY 2013-14 Estimates Item Eslim. kWh per yr Cost per kWh Proposed Budget Plant No. 1 Energy Charges 25,000,000 @$0.06 $1,500,000 Plant No. 1 Demand Charges ---- ---- $ 550,000 Plant No. 1 Fixed Charges ---- ---- $ 450,000 Total for Plant 1 25,000,000 $2,500,000 Plant No. 2 Energy Charges 22,000,000 @$0.06 $1,320,000 Plant No. 2 Demand Charges ---- ---- $ 500,000 Plant No. 2 Fixed Charges ---- ---- $ 340,000 Total for Plant 2 22,000,000 $2,160,000 Plant 1 Control Center 100,000 @$0.18 $ 18,000 Total Plants 47,100,000 $4,678,000 Laboratory 2,650,000 @$0.125 $ 331,000 Administration Building 800,000 @$0.135 $ 108,000 Grand Total 50,550,000 $5,117,000 6b) Water $ 1.2 $ 1.3 $ 1.3 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 2013-14 is $781,000, a 4.1% increase over FY 2012-13 projected cost. 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 2012-13 and the proposed budget for FY 2013-14 is approximately $480,000. 7 Book Page 28 Return to Agenda Report 2013-14 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL Previously Projected Adopted Proposed 2012-13 2013-14 2013-14 6c) Natural Gas $ 0.4 $ 0.6 $ 0.4 Natural Gas—The total FY 2013-17 gas estimate is $440,000. The Plant 1 Central Generation actual usage was somewhat less than previously estimated in FY 2012-13. Engine 2 was down for major overhaul through October which eliminated the ability to peak shave last summer. However, peak shaving is planned for this summer so Plant 1 Central Generation usage will be increase to the levels experienced in FY2011-12. The core gas consumption at Plant 1 should be similar to last year's. Likewise, Plant 2 Cengen should be near last year's usage. The Core gas consumption at Plant 2 has continued to be low due to longer operation of the auxiliary boilers on digester gas. Some time back a 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. 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. FY 2013.14 Estimates User Estimated Cost Per Total Cost Consumption Therm Plant No. 1 Central Generation 400,000 therms $0.45/therm $180,000 Plant No. 1 Core Subscription 130,000 therms $0.80/therm $ 104,000 Plant No. 2 Central Generation 250,000 therms $0.45ttherm $113,000 Plant No. 2 Core Subscription 50,000 therms $0.80/therm $40,000 Total 830,000 therms $437,000 8 Book Page 29 Return to Agenda Report 2013-14 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL Previously Projected Adopted Proposed 2012-13 2013-14 2013-14 7) PROFESSIONAL SERVICES $ 3.0 $ 2.4 $ 4.1 7a) Legal Services ($1.2M) 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 2013-14 budget is proposed to increased to $1,240,000 from $455,000 as a result of increased expenses for arbitration, contracts and employee relations. 7b) Engineering Services ($0.5M) These services provide technical support that in-house staff cannot provide or do not have the time to provide. In FY 2013-14 requested engineering services include for an on-call structural engineer for facilities engineer and repair projects, analysis of the biofilter operation and compliance, and an arc flash consultant. 7c) Advocacy Efforts ($0.2M) These are consultant services for promoting the District's interests in Sacramento and Washington D.0 concerning legislation and funding. 7d) Audit and Accounting ($0.4M) These services represent the cost for the District's independent annual financial audit and contracted internal auditing services. 7e) Software Program Consultant ($0.4M) These support costs are required to supplement programming staff as new software versions and new programs are implemented and revised; they are also in support of the SCADA/ (supervisory control and data acquisition) system for process monitoring and controlling. 7f) Other ($1.4M) 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 $470K. 9 Book Page 30 Return to Agenda Report 2013-14 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL Previously Projected Adopted Proposed 2012-13 2013-14 2013-14 8) OTHER OPERATING SUPPLIES $ 2.4 $ 3.2 $ 2.5 Be) Property and General Liability Insurance ($1.4M) 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 of$1.4 million 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 ($0.4M) Other material, supplies, and services collectively reported within this one line item. 9) ADMINISTRATIVE EXPENSE $ 1.4 $ 1.2 $ 1.3 9a) Small Computer Items ($0.5M) New Computers/Notebooks/Tablets, printers, monitors, Networking equipment, Computer peripherals, Digital equipment, PDAs, Digital Cameras, etc. 9b) Memberships ($0.5M) 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. 10 Book Page 31 Return to Agenda Report 2013-14 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL Previously Projected Adopted Proposed 2012-13 2013-14 2013-14 10) RESEARCH AND MONITORING $ 0.8 $ 0.9 $ 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 $ 0.0 $ 0.7 11a) General Manager Contingency ($0.2M) 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 ($0.4M) 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 2012-13 budget reflects application of these funds.) 11c) Other ($0.1M) Other non-operating expenses and obsolete inventory are in this group of expenses. 11 Book Page 32 Return to Agenda Report 2013-14 BUDGET UPDATE DEVELOPMENT — ADDITIONAL DETAIL Previously Projected Adopted Proposed 2012-13 2013-14 2013-14 12) TRAINING AND MEETINGS $ 1.4 $ 1.2 $ 1.5 12a)Training ($1.3M) 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 $ 0.5 13a) In-House Publishing ($0.3M) 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 ($0.2M) Other printing and publishing expenses collectively reported within this one line item. 14) COST ALLOCATION ($15.5) ($18.2) ($18.2) This represents direct and indirect labor, benefits, materials, and services charged to the Capital Improvement Program (CIP) where the related work was performed. 12 Book Page 33 Glossary of Terms and Abbreviations Book Page 34 Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOO 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 OOBS 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 Page 2 of 5 Book Page 35 Glossary of Terms and Abbreviations 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. 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. Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. Page 3 of 5 Book Page 36 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. Page 4 of 5 Book Page 37 Glossary of Terms and Abbreviations 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. Page 5 of 5 Book Page 38