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)
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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