HomeMy WebLinkAbout98.06-12-2019 Administration Committee Item 9 Attachment 1 - FY 2019-20 Budget Update.pdf22BUDGET UPDATE | FISCAL YEAR 2019-20
2019-20 BUDGET UPDATE
Orange County Sanitation District, California
BUDGETUPDATE
Fiscal Year 2019-20
BUDGET UPDATE
Orange County Sanitation District, California
Fiscal Year 2019-20
OUR MISSION
“To protect public health and the environment by providing
effective wastewater collection, treatment, and recycling.”
BUDGET UPDATE | FISCAL YEAR 2019-20
BUDGET UPDATE | FISCAL YEAR 2019-20
GFOA BUDGET PRESENTATION AWARD
BUDGET UPDATE | FISCAL YEAR 2019-20
The Government Finance Officers Association of the United States and Canada (GFOA) presented a
Distinguished Budget Presentation Award to the Orange County Sanitation District, California, for its biennial
budget for the biennium beginning July 1, 2018.
In order to receive this award, a government unit must publish a budget document that meets program criteria
as a policy document, as an operations guide, as a financial plan, and as a communication device.
OCSD SERVICE AREA
Orange County Sanitation District
Service Area and Treatment Plant Locations
in Orange County, California
BUDGET UPDATE | FISCAL YEAR 2019-20BUDGET UPDATE | FISCAL YEAR 2019-20
TABLE OF CONTENTS
i
OCSD Service Area ..............................................................................................................................................i
Board of Directors ...............................................................................................................................................ii
Board Committees ..............................................................................................................................................iii
Orange County Sanitation District Organization Chart .............................................................................iv
Administrative Officials .......................................................................................................................................v
Message from the General Manager ...............................................................................................................vi
Finance Summary ..............................................................................................................................................1
Financial Overview & Budgetary Issues ..........................................................................................................2
Where the Money Comes From .......................................................................................................................6
Funding Sources by Category ............................................................................................................................6
Where the Money Goes ......................................................................................................................................8
Funding Uses by Category .................................................................................................................................8
Collection, Treatment & Recycling Process Overview ............................................................................10
Strategic Planning ............................................................................................................................................12
Infrastructure Asset Management ...............................................................................................................16
Capital Improvement Program ....................................................................................................................26
Debt Financing Program ................................................................................................................................28
Operating Expenses .........................................................................................................................................30
Departments ......................................................................................................................................................34
Summary .............................................................................................................................................................34
General Manager’s Office .................................................................................................................................36
Human Resources .............................................................................................................................................38
Administrative Services ....................................................................................................................................40
Environmental Services ....................................................................................................................................42
Engineering .........................................................................................................................................................44
Operations and Maintenance ..........................................................................................................................46
Appendix ..........................................................................................................................................................A-1
Cash Flow Projection ......................................................................................................................................A-2
Capital Improvement Program Summary ..................................................................................................A-4
Project Summary .............................................................................................................................................A-5
Capital Improvement Expenditure Graphs ................................................................................................A-6
Summary of Capital Requirements ..............................................................................................................A-7
New Project Descriptions.............................................................................................................................A-11
Capital Equipment Budget Summary ........................................................................................................A-16
Capital Equipment Budget Detail ...............................................................................................................A-18
Levels of Service .............................................................................................................................................A-20
Self-Funded Insurance Plans .......................................................................................................................A-24
Historical Staffing Summary ........................................................................................................................A-25
Historical Staffing Detail ..............................................................................................................................A-26
Appropriations Limit ....................................................................................................................................A-35
Miscellaneous Statistics ................................................................................................................................A-36
Wastewater Treatment Process Diagram
Sewer pipelines
Plant No. 1 (P1)
Plant No. 2 (P2)
Pump Stations
Unincorporated Orange County
(white areas)
LEGEND
IRVINE
ANAHEIM
ORANGE
SANTAANA
FULLERTON
BREA
TUSTIN
YORBALINDA
HUNTINGTONBEACH
COSTAMESA
GARDENGROVE
SEALBEACH
BUENAPARK
NEWPORTBEACH
LAHABRA
WESTMINSTER
CYPRESS
PLACENTIA
FOUNTAINVALLEY
STANTONLOSALAMITOS
VILLAPARK
LAPALMA
OCSDOCSDService AreaArea
(area enlarged)(area enlarged)
PacificOcean
P1
P2
DISCLAIMER: Map prepared by theOrange County Sanitation District. This map is intended for graphical representation only. No level of accuracy is claimed.Portions of this derived product contain geographical information copyrighted by Rand McNally 2013. All Rights Reserved.REVISED: 2018
±
BUDGET UPDATE | FISCAL YEAR 2019-20 BUDGET UPDATE | FISCAL YEAR 2019-20 iiiii
BOARD COMMITTEESBOARD OF DIRECTORS
Cities Active Director Alternate Director
Anaheim Lucille Kring Denise Barnes
Brea Glenn Parker Steven Vargas
Buena Park Fred Smith Sunny Park
Cypress Mariellen Yarc Stacy Berry
Fountain Valley Steve Nagel Patrick Harper
Fullerton Jesus J. Silva Jan Flory
Garden Grove Steve Jones John O’Neill
Huntington Beach Erik Peterson Mike Posey
Irvine Christina Shea Anthony Kuo
La Habra Tim Shaw Tom Beamish
La Palma Peter Kim Marshall Goodman
Los Alamitos Richard Murphy Dean Grose
Newport Beach Brad Avery Joy Brenner
Orange Mark Murphy Kim Nichols
Placentia Chad Wanke Ward Smith
Santa Ana Cecilia Iglesias David Penaloza
Seal Beach Sandra Massa-Lavitt Schelly Sustarsic
Stanton David Shawver Carol Warren
Tustin Allan Bernstein Chuck Puckett
Villa Park Robert Collacott Chad Zimmerman
Agencies
Costa Mesa Sanitary District (CMSD) James Ferryman Robert Ooten
Midway City Sanitary District (MCSD) Andrew Nguyen Al Krippner
Irvine Ranch Water District (IRWD) John Withers Douglas Reinhart
Yorba Linda Water District (YLWD) Phil Hawkins Brooke Jones
County Areas
Member of the Board of Supervisors Doug Chaffee Michelle Steel
Steering Committee
David Shawver, Board Chair
John Withers, Board Vice-Chair
Robert Collacott, Chair, Operations Committee
Peter Kim, Chair, LaPA Committee
Chad Wanke, Chair, Administration Committee
Glenn Parker, Member-At-Large
Tim Shaw, Member-At-Large
Administration Committee
Chad Wanke, Chair (Placentia)
Richard Murphy, Vice-Chair (Los Alamitos)
Cecilia Iglesias (Santa Ana)
Jim Ferryman (CMSD)
Peter Kim (La Palma)
Mark Murphy (Orange)
Steve Nagel (Fountain Valley)
Andrew Nguyen (MCSD)
Glenn Parker (Brea)
Erik Peterson (Huntington Beach)
Christina Shea (Irvine)
David Shawver, Board Chair (Stanton)
John Withers, Board Vice-Chair (IRWD)
Operations Committee
Robert Collacott, Chair (Villa Park)
Mariellen Yarc, Vice-Chair (Cypress)
Brad Avery (Newport Beach)
Allan Bernstein (Tustin)
Doug Chaffee (Board of Supervisors)
Phil Hawkins (YLWD)
Steve Jones (Garden Grove)
Lucille Kring (Anaheim)
Sandra Massa-Lavitt (Seal Beach)
Tim Shaw (La Habra)
Jesus J. Silva (Fullerton)
Fred Smith (Buena Park)
David Shawver, Board Chair (Stanton)
John Withers, Board Vice-Chair (IRWD)
Legislative and
Public Affairs Committee
Peter Kim, Chair (La Palma)
Allan Bernstein, Vice-Chair (Tustin)
Lucille Kring, Member-At-Large (Anaheim)
Erik Peterson, Member-At-Large (Huntington Beach)
Christina Shea, Member-At-Large (Irvine)
David Shawver, Board Chair (Stanton)
John Withers, Board Vice-Chair (IRWD)
GWRS Joint Cooperative
Steering Committee
David Shawver (Stanton)
James Ferryman (CMSD)
Tim Shaw (La Habra)
Jesus J. Silva (Fullerton — Alternate)
Phil Hawkins (YLWD — Alternate)
Erik Peterson (Huntington Beach — Alternate)
Audit Ad Hoc Committee
Peter Kim (La Palma)
Richard Murphy (Los Alamitos)
Steve Nagel (Fountain Valley)
Glenn Parker (Brea)
Headquarters Complex
Ad Hoc Committee
Lucille Kring, Chair (Anaheim)
Erik Peterson, Vice-Chair (Huntington Beach)
David Shawver (Stanton)
Robert Collacott (Villa Park)
Sandra Massa-Lavitt (Seal Beach)
Steve Nagel (Fountain Valley)
Fred Smith (Buena Park)
John Withers (IRWD)
SAWPA Joint Policy Committee
David Shawver (Stanton)
John Withers (IRWD)
Richard Murphy (Los Alamitos — Alternate)
BUDGET UPDATE | FISCAL YEAR 2019-20 BUDGET UPDATE | FISCAL YEAR 2019-20 viv
ADMINISTRATIVE OFFICIALSORGANIZATION CHART
Management Team
General Manager ................................................................................................................................................James D. Herberg
Assistant General Manager and Director of Finance and Administrative Services ......................................Lorenzo Tyner
Assistant General Manager and Director of Operations and Maintenance .............................................Robert Thompson
Director of Engineering ..............................................................................................................................................Kathy Millea
Director of Environmental Services ......................................................................................................................Lan C. Wiborg
Director of Human Resources ...............................................................................................................................Celia Chandler
General Counsel .................................................................................................................................................Bradley R. Hogin
Board of
Directors
General
Manager
General
Counsel Office
Human Resources Administration
Risk Management/
Safety/Security
Human
Resources
(27 FTEs)
General
Management
Administration
Board Services
Public Affairs
General
Manager’s Office
(15 FTEs)
Engineering
Administration
Planning
Project
Management
Office
Civil & Mechanical Engineering
Electrical &
Control Systems
Engineering
Operations &
Maintenance
Administration
Collection Facilities Operations & Maintenance
Fleet Services
Plant No. 1 Operations
Plant No. 2
Operations
Plant No. 1 Maintenance
Plant No. 2
Maintenance
Engineering
(120 FTEs)
Operations
& Maintenance
(285 FTEs)
Assistant
General
Manager
Administrative
Services
Financial Management
Contracts,
Purchasing &
Materials
Management
Information Technology
Environmental
Services
Administration
Resource Protection
Laboratory,
Monitoring &
Compliance
Administrative
Services
(101 FTEs)
Environmental
Services
(92 FTEs)
Assistant
General
Manager
FTEs = Full-Time Equivalent Positions
BUDGET UPDATE | FISCAL YEAR 2019-20 BUDGET UPDATE | FISCAL YEAR 2019-20
2019-20 BUDGET UPDATE
viivi
MESSAGE FROM THE GENERAL MANAGER
June 1, 2019
I am pleased to submit the Orange County Sanitation District’s (OCSD)
Proposed Budget Update for the 2019-20 Fiscal Year (FY). This document lays
out the framework of OCSD’s activities for the upcoming year and serves as
a source of information for OCSD’s Board of Directors, our ratepayers and
our employees. This budget includes the operational, capital and debt service
expenditures necessary to cost-effectively support our mission. As this is an
update to our previously approved two-year budget, relatively minor changes
are recommended. While the proposed budget includes operational cost
increases of five percent, the total expenditures from FY 2018-19 through FY 2019-20 will decrease slightly.
There are also a few key areas that I would like to highlight:
• Expanded Water Recycling – In partnership with the Orange County Water District (OCWD), our
agency recycles enough water to supply the needs of 850,000 people. Our Board of Directors has set a
goal of recycling 100 percent of our reclaimable flows to provide a reliable, affordable, and high-quality
water source. Having completed the joint feasibility study with OCWD for the ultimate expansion of
the Groundwater Replenishment System (GWRS), the two agencies now embark on design projects that
will increase water recycling for an additional 250,000 people. This expansion will ensure that a potential
resource once lost to the ocean will now supply water for over one million people in north and central
Orange County.
• Infrastructure Reliability and Operational Sustainability – We will continue to improve our planned
maintenance program to assess and manage assets while lowering lifecycle costs. Recognizing the
importance of resiliency in the event of a disaster, we will design systems and operations to withstand or
adapt to abnormal or catastrophic events that can reasonably be expected.
• Safety and Security – Capital projects, maintenance activities, safety training and additional efforts to
address safety in our workplace are included in this budget, including implementation of improvements
required to receive Voluntary Protection Program (VPP) status from Cal-OSHA.
• Operating Expense Cost Containment – Despite inflationary increases on many external costs such
as chemicals and utilities, we will minimize the impact on ratepayers by aggressively negotiating
our contracts, ensuring a competitive bidding environment, and striving to be energy efficient while
maximizing renewable power generation using sound engineering principals.
• Biosolids Management – The State of California has issued a mandate requiring local jurisdictions to
reduce the amount of organic material entering landfills by 75 percent by 2025. OCSD is in a position
to serve a vital role in helping cities in our service area meet this goal using our anaerobic digestion
facilities that are already in place and the completion of the food waste receiving facilities at Plant No. 2.
By receiving food waste to be co-digested with solids, we will further be increasing biogas production and
taking an important step towards energy self-sufficiency.
• Staffing Cost Containment - While addressing rising treatment and chemical costs, aging infrastructure,
and increased regulatory requirements, this budget displays our commitment to efficiency as it includes
only a minimal staffing increase of less than one percent.
OCSD will continue to provide wastewater treatment, recycling, sewer and facilities maintenance, ocean
monitoring and many other services while maintaining rates of less than $1 per day for the average
residential user. I believe this budget fully supports the goals included in the Orange County Sanitation
District’s Strategic Plan and positions us well to address challenges in the coming years.
James D. Herberg
General Manager
Orange County Sanitation District
BUDGET UPDATE | FISCAL YEAR 2019-20viii
FINANCESUMMARY
1
BUDGET UPDATE | FISCAL YEAR 2019-20 BUDGET UPDATE | FISCAL YEAR 2019-20
2019-20 BUDGET UPDATE
2 3
FINANCIAL SUMMARY/OVERVIEW & BUDGETARY ISSUES
Budget Overview
The Sanitation District’s proposed Fiscal Year (FY)
2019-20 operating and capital improvement budget
totals $321.5 million, or $24.3 million (8.1 percent)
above what was approved last year as the second year of
the adopted two-year budget. The increase in the
FY 2019-20 budget is primarily attributable to $16.3
million of delays in construction start dates where
spending has been deferred and an increase of $8.0
million in operating budget.
The budget continues to reflect the agency’s ongoing
efforts to streamline operations. Staffing levels are
proposed to increase by four full time equivalent (FTE)
positions in FY 2019-20.
The Sanitation District’s Capital Improvement Program
(CIP) budget for FY 2019-20 is $153.3 million. This
CIP budget finances the collections system, joint works
treatment and disposal system improvement projects.
The $16.3 million increase from the originally proposed
budget is attributable to project delays that result in
deferred spending.
Financing
The Sanitation District uses long-term Certificates of
Participation (COP) for financing capital improvements
that cannot be completely funded from current revenue.
Before any new debt is issued, the impact of debt service
payments on total annual fixed costs is analyzed. Total
COP indebtedness is currently at $972.8 million. No
new money debt financings are currently forecasted
to assist in the funding of the $2.8 billion in capital
improvements required over the next ten years.
Staffing
Reflecting the organization’s commitment to providing
service at the lowest costs, the budget includes an increase
of four staff positions in authorized full time positions
for FY 2019-20. Total filled positions will not exceed 640
FTE staff positions. This staffing level continues to reflect
a significant reduction from the Fiscal Year 1995-96
approved staffing level of 678 positions.
Overall personnel costs for FY 2019-20 will approximate
the original adopted budget due to reductions in
retirement premiums following the pay down of
the Orange County Employees’ Retirement System
(OCERS) unfunded accrued liability.
Costs are projected to increase for medical insurance
premiums and workers compensation benefit costs are
expected to slightly decrease. The Sanitation District
will continue to effectively manage these expenses with
approximately 24 percent of the budget allocated to
employee costs, much less than most other government
agencies.
Cost of Treatment
The agency’s two treatment plants, located in Fountain
Valley and Huntington Beach, process about 188
million gallons of wastewater each day generated by
approximately 2.6 million residents and a 1.8-million-
person employment in central and northwest Orange
County. The proposed budget to operate, maintain and
manage our sewage collection, treatment and disposal
system in FY 2019-20 is $168.2 million.
The cost per million gallons of wastewater treated, (an
industry-wide performance measurement), is expected
to increase in FY 2019-20 to $2,451, a $53, or 2.2 percent
increase from the previous 2019-20 projection of $2,398.
The increase in the cost per million gallons is due to an
$8.0 million increase in total operating costs.
Sewer Service Fees
The 2019-20 single family residential rate, the underlying
basis for all sewer rates, is scheduled at $339 a year. This
represents an increase of $4 or 1.2 percent per the rate
structure approved by the Board of Directors in June 2018.
Groundwater Replenishment System
(GWRS)
The OCSD Strategic Plan includes a goal of recycling
100 percent of reclaimable wastewater. Partnering with
the Orange County Water District (OCWD), the initial
phase of GWRS was completed in January 2008. GWRS
is the world’s largest water reuse project of its kind.
The initial GWRS facility recycled 70 million gallons of
water a day (mgd). OCSD and OCWD equally shared
the expenses of this project.
Initial expansion of the GWRS increased the production
of reclaimed water to 100 mgd. The project, which was
funded entirely by the OCWD, was completed in 2015.
OCSD is directing all reclaimable flows from Plant No. 1
to OCWD in support of providing maximum amounts
of treated wastewater for reclamation.
The plan to achieve the final expansion of the GWRS
was approved by both OCSD and OCWD Board
of Directors in 2016. The final expansion of GWRS
will bring the total production of reclaimed water to
130 mgd. Since OCSD has maximized the available
reclaimable wastewater treated at Plant No. 1, secondary
effluent from Plant No. 2 will be sent to the GWRS for
reclamation. Modification of existing Plant No. 2
Headworks, a new Plant Water pump station and
construction of new pumping, equalization and
conveyance facilities will be funded by the OCWD. As
the Headworks Modification and Plant Water project
is impacting OCSD’s critical infrastructure, OCSD will
manage the design and construction of these projects
and will be reimbursed by OCWD up to $50 million.
Construction of GWRS final expansion is scheduled to
be complete in 2023.
Capital Improvement Program (CIP)
The total CIP budget for FY 2019-20 is being proposed
at $153.3 million, up $16.3 million from the previously
approved 2019-20 budget primarily due to delays
in construction start dates where spending has been
deferred.
Over the next 10 years, OCSD’s Capital Improvement
Program will:
• Rehabilitate the headworks, primary treatment, utility
systems and perform security improvements at
Plant No. 1.
• Replace a third of the primary treatment facilities,
rehabilitate the outfall pumping and perform power
reliability improvements at Plant No. 2.
• Rehabilitate all of the digester gas compressor systems.
• Construct a new food waste receiving facility and
rehabilitate and replace digesters at Plant No. 2.
• Construct a new Headquarters Complex.
• Replace or rehabilitate OCSD’s aging pump stations
and trunk sewers in the collections system. This
includes the West Side sewers and Seal Beach Pump
Station. Newhope Placentia Trunk Improvements (in
Anaheim) will continue construction through 2022.
Operating Budget Increase – $15.9M
The operations budget for the collection, treatment, and
disposal of wastewater is proposed at $168.2 million,
a $15.9 million (10.4 percent) increase above 2018-19
projected expenditures. The increase is mostly attributed
to delayed repairs and maintenance activities, and also
increases to chemical costs and salaries and benefit
costs. However, the two-year total operating budget of
projected and proposed FY 2018-19 and FY 2019-20 is
$320.5 million, $0.9 million less than two-year adopted
budget.
Although some expenses will increase or decrease
slightly, the overall increase to the operating budget in
2019-20 over the 2018-19 projected is described in the
following specific areas:
BUDGET UPDATE | FISCAL YEAR 2019-20 BUDGET UPDATE | FISCAL YEAR 2019-20
2019-20 BUDGET UPDATE
4 5
FINANCIAL SUMMARY/OVERVIEW & BUDGETARY ISSUES
Repairs and Maintenance –
$5.7M Increase
This expense category includes parts and services
for repairing aging treatment plant and collection
facilities, and reflects base budgets for equipment
maintenance as well as out-sourced annual service
contracts and maintenance agreements. The FY 2019-
20 budget increase of 32.0 percent over the 2018-19
projected expenditures is mostly attributable to delayed
rehabilitation projects for primary and secondary
clarifiers, increases in basic repairs and maintenance
costs and Central Generation (CenGen) engine overhaul.
Operating Materials & Supplies –
$4.4M Increase
The majority of the increase in operating materials and
supplies above the 2018-19 projected expenditures is
due to a $3.5 million increase in chemical costs used in
the treatment process.
Salaries and Benefits – $4.4M Increase
Salaries and benefits will increase $4.4 million above
the 2018-19 projected expenditures primarily due to
the impacts of the collective bargaining agreements, the
addition of four FTE positions, and increases in medical
insurance premiums. The increases are partially offset
by a decrease in workers’ compensation costs and lower
retirement premiums resulting from OCSD’s decision
to use available cash reserves to reduce the unfunded
pension liability by $39 million in 2016-17.
These changes reflect the impacts from collective
bargaining agreements and revised actuarial
assumptions on retirement premiums.
Professional Services –
$1.0M Increase
The increase is primarily due to increases in anticipated
engineering costs and technical consulting fees for the
Sanitation District.
Utilities – $1.0M Increase
The proposed budgets for electricity and water reflect
increases of $969,000 and $63,000, respectively, over
the 2018-19 projected expenditures due to anticipated
consumption and unit cost increases. These increases
are partially offset by a reduction in the natural gas
budget of $109,000 due to lower usage.
Operating Expenses
$161.2M $160.2M $168.2M
2018-19
Adopted
+5.0%
-0.6%
Budget-over-budget percentage changes are shown above.
2018-19
Projected
2019-20
Adopted
2019-20
Proposed
$152.3M
BUDGET UPDATE | FISCAL YEAR 2019-20 BUDGET UPDATE | FISCAL YEAR 2019-20
2019-20 BUDGET UPDATE
6 7
FINANCIAL SUMMARY/FUNDING SOURCES BY CATEGORY
OCSD has a variety of revenue sources available for
operating and capital expenses. The major revenue
sources are:
General Service Fees – $318.4M
User fees are ongoing fees for service paid by customers
connected to the sewer system, and are the primary
source of OCSD’s revenue. A property owner, or user,
does not pay user fees until connected to the sewer
system and are receiving services. Once connected, users
are responsible for their share of the system’s costs,
both fixed and variable, in proportion to their demand
on the system. These fees include both Single Family
Residences (SFR), Multiple Family Residences (MFR),
and commercial users.
Property Taxes – $96.4M
The County of Orange is permitted by State law
(Proposition 13) to levy taxes at one percent of full
market value (at time of purchase) and can increase
the assessed value no more than two percent per year.
OCSD receives a share of the basic levy proportionate
to what was received in the 1976 to 1978 period, less
$3.5 million, the amount that represents the State’s
permanent annual diversion from special districts to
school districts that began in 1992-93. OCSD’s share
of this revenue is dedicated for the payment of
debt service.
Permit User Fees – $9.9M
Permit user fees are paid by large industrial and
commercial business owners connected to the sewer
system. These fees are for the owner’s share of the
system’s costs, both fixed and variable, in proportion to
the user’s demand on the system.
Since the inception of the Permit User Fee Program
in 1970, users of OCSD’s system that discharge high
volumes or high strength wastewater have been required
to obtain a discharge permit and pay additional fees for
the cost of service received.
Capital Facilities Capacity Charges
(CFCC) – $18.0M
The Capital Facilities Capacity Charge is a one-time
charge imposed at the time a building or structure
is newly connected to OCSD’s system, directly or
indirectly, or an existing structure or category of use
is expanded or increased. This charge pays for OCSD
facilities that exist at the time the charge is imposed, or
to pay for new facilities to be constructed in the future
that will benefit the property being charged.
Interest Earnings – $6.5M
Interest earnings are generated from the investment
of accumulated reserves consisting of a cash flow/
contingency, a capital improvement, a renewal/
replacement, and a self-insurance reserve.
Intradistrict Transfers – $5.0M
In accordance with Amendment No. 2 to the
Agreement for Purchase and Sale of Capacity Rights
in Treatment, Disposal and Sewer Facilities between
Irvine Ranch Water District (IRWD) and OCSD dated
November 15, 1995, ownership is adjusted annually to
reflect the current equity percentage ownership based
on sewage flows.
Debt Proceeds – $0.0M
Certificates of Participation (COPs) are OCSD’s primary
mechanism for financing capital projects. COPs are
repayment obligations based on a lease or installment
sale agreement. COPs are not viewed as “debt” by the
State of California, but rather a share in an installment
arrangement where OCSD serves as the purchaser.
No new money debt issuances are being proposed as the
$2.8 billion in future replacement, rehabilitation, and
refurbishment projects anticipated over the next ten
years will be adequately funded through current sewer
service fee charges and other revenues.
Other Revenue – $13.9M
Other revenue includes self-insurance assessments for
workers’ compensation and general liability coverage as
well as reimbursements from other agencies for shared
CIP and operating costs and miscellaneous revenue
such as rents and leases.
Fees & Charges
$346.3M
74.0%
Property Taxes
$96.4M
20.5%
Interest
$6.5M
1.4%
Other
Revenue$13.9M
3.0%
Intradistrict
Transfers
$5.0M
1.1%
WHERE THE MONEY COMES FROM
Funding Sources by Category
(in millions)
2018-19 2019-20 2019-20
Category Adopted Adopted Proposed
Service Fees $318.0 $320.5 $318.4
Property Taxes 99.6 104.5 96.4
Permit User Fees 18.3 18.5 9.9
Capital Facilities Capacity Charges 14.0 14.5 18.0
Interest 6.5 7.2 6.5
Intradistrict Transfers 3.7 3.5 5.0
Debt Proceeds 0.0 0.0 0.0
Other Revenue 10.8 9.2 13.9
Total Funding Sources $470.9 $477.9 $468.1
BUDGET UPDATE | FISCAL YEAR 2019-20 BUDGET UPDATE | FISCAL YEAR 2019-20
2019-20 BUDGET UPDATE
98
FINANCIAL SUMMARY/FUNDING USES BY CATEGORY
OCSD budgets its funds in four distinct areas:
Operating Expenses – $168.2M
The proposed budget allocates resources to operate,
maintain and manage our sewage collection, treatment,
recycling and disposal system, and for any associated
administrative or technical requirements.
Capital Improvement Program (CIP) –
$153.3M
To provide an appropriate level of service to OCSD’s
ratepayers, large capital improvements are required. The
CIP provides for the management and implementation
of these improvements. The CIP budget includes
specific projects, cost estimates, and timelines. The gross
CIP project budgets for 2019-20 total $176.3 million;
however, the CIP cash outlays, net of savings and
deferrals, is $153.3 million.
Debt Service – $76.8M
This is the cost of repaying debt. Long-term debt
financing allows OCSD to complete large multi-
year capital projects by providing funds not always
immediately available. Currently, OCSD is on track to
pay off its $972.8 million outstanding debt by 2042.
Other Requirements – $207.5M
This item includes an allocation for future replacement,
rehabilitation, and refurbishment projects where
detailed job plans have not yet been prepared. Also
included, in accordance with Amendment No. 2 to the
Agreement for Purchase and Sale of Capacity Rights
in Treatment, Disposal and Sewer Facilities between
IRWD and OCSD dated November 15, 1995, ownership
is adjusted annually to reflect the current equity
percentage ownership based on sewage flows.
Capital
ImprovementProgram
$153.3M
25.3%
Debt Service
$76.8M
12.6%
Operating
Expenses
$168.2M
27.8%
OtherRequirement
$207.5M
34.3%
WHERE THE MONEY GOES
Funding Uses by Category
(in millions)
2018-19 2019-20 2019-20
Category Adopted Adopted Proposed
Operating Expenses $161.2 $160.2 $168.2
Capital Improvement Program 174.5 137.0 153.3
Debt Service 80.5 80.0 76.8
Other Requirements* 6.1 6.0 207.5
Total Funding Uses $422.3 $383.2 $605.8
*Other Requirements total includes Intradistrict Transfers, Self - Insurance, and Allocation for Future Replacement,
Rehabilitation & Refurbishment
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2019-20 BUDGET UPDATE
1110
COLLECTION, TREATMENT & RECYCLING PROCESS OVERVIEW
OCSD collects wastewater from 479 square miles and
approximately 2.6 million residents and a 1.8-million-
person-employment in central and northwest Orange
County. The wastewater is conveyed through 15 pump
stations and gravity sewers to either Reclamation Plant
No. 1 in Fountain Valley or Treatment Plant No. 2 in
Huntington Beach. After the wastewater reaches one of
the two treatment facilities, it undergoes preliminary
treatment where large solids, rags, non-dispersible
materials and plastics are removed when the
wastewater passes through bar screens. Then it flows
through aerating grit chambers that remove coffee
grounds, sand, seeds, and gravel. All matter collected
in the preliminary treatment is taken by a contractor to
a landfill.
Primary treatment consists of wastewater settling in
large clarifying basins; chemicals enhance the solids
settling. The solids are scraped from the bottom and
skimmed from the top of the clarifiers and then sent to
digestion. Primary treated wastewater is then pumped
to secondary treatment where it is processed using
activated sludge and trickling filters. The secondary
solids collection process is similar to the primary
treatment solids collection process. All the resulting
water from the secondary treatment processes at Plant
No. 1 is sent to the OCWD for recycling/reuse after
purification by the GWRS. Plant No. 2 secondary
effluent is discharged into the ocean. With the final
expansion of the GWRS in 2023, Plant No. 2 secondary
effluent will be conveyed to the GWRS as another
source of water for recycling.
All of the solids collected during primary and
secondary treatment are sent to digesters for solids
processing. Primary solids and secondary solids
remain for an average of 18 days at 98 degrees
Fahrenheit in the digesters and are decomposed by
anaerobic bacteria into two main products, biosolids
and methane. The methane gas generated during the
natural decomposition of the solids in the digesters
is used to fuel the Central Power Generation Systems
and produce electricity used to operate both treatment
plants. The solids, with settling enhanced by the
addition of chemical coagulants, are treated and then
dewatered to a cake. The caked biosolids are then
hauled from the treatment plants and recycled by
composting, by use as a land application, or by use at a
local landfill that produces methane.
Approximately 130 million gallons per day of
secondary effluent from Reclamation Plant No. 1 is
sent to the OCWD for reclamation in its two treatment
and distribution systems. OCWD uses the secondary
effluent in two ways: The first is GWRS. The GWRS
is the largest water purification project of its kind
in the world; its construction was funded jointly by
OCWD and OCSD. At 100 million gallons per day,
the GWRS generates enough pure water to meet the
needs of 850,000 people. The second is OCWD’s
Green Acres Project, which is a water recycling effort
that provides reclaimed water for landscape irrigation
at parks, schools and golf courses as well as for
industrial uses, such as carpet dying. Multiple projects
in design and construction will contribute to the final
expansion program that will increase the conveyance
of secondary effluent from Plant No. 2 to GWRS and
increase production to 130 million gallons per day of
recycled water.
Since the 1970’s, OCSD, as an environmental agency,
has always recycled and reused by-products of its
treatment processes for the benefit of the health and
the environment of the people in its service area.
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1312
STRATEGIC PLANNING
Introduction
Driven by the Mission, Vision, Core Values, and the
Strategic Plan, OCSD continues aggressive efforts to
meet the sanitation, health, and safety needs of the
more than 2.6 million people we serve while protecting
the environment where we live.
Mission Statement
The Mission Statement is the basic foundation that
defines why we exist.
“To protect public health and the environment by
providing effective wastewater collection, treatment,
and recycling.”
Vision Statement
The Vision Statement supports the Mission Statement
by expressing a broad philosophy of what the Orange
County Sanitation District strives to achieve now
and in the future in the delivery of services to our
customers, vendors, other agencies, the general public
and each other.
Orange County Sanitation District will be a leader in:
• Providing reliable, responsive, and affordable
services in line with customer needs and
expectations.
• Protecting public health and the environment
utilizing all practical and effective means for
wastewater, energy, and solids resource recovery.
• Continually seeking efficiencies to ensure that the
public’s money is wisely spent.
• Communicating our mission and strategies with
those we serve and all other stakeholders.
• Partnering with others to benefit our customers, this
region, and our industry.
• Creating the best possible workforce in terms of
safety, productivity, customer service, and training.
Core Values
Our Core Values support the Mission and Vision
Statements by expressing the values, beliefs, and
philosophy that guides our daily actions. They help
form the framework of our organization and reinforce
our professional work ethic.
Honesty, Trust, and Respect
We aspire to the highest degree of integrity, honesty,
trust, and respect in our interaction with each other,
our suppliers, our customers, and our community.
Teamwork and Problem Solving
We strive to reach OCSD goals through cooperative
efforts and collaboration with each other and our
constituencies. We work to solve problems in a
creative, cost-effective and safe manner, and we
acknowledge team and individual efforts.
Leadership and Commitment
We lead by example, acknowledging the value of our
resources and using them wisely and safely to achieve
our objectives and goals. We are committed to act in
the best interest of our employees, our organization,
and our community.
Learning/Teaching – Talents, Skills and Abilities
We continuously develop ourselves, enhancing our
talents, skills, and abilities, knowing that only through
personal growth and development will we continue to
progress as an agency and as individuals.
Recognition/Rewards
We seek to recognize, acknowledge and reward
contributions to OCSD by our many talented
employees.
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1514
STRATEGIC PLANNING
Strategic Goals & Levels of Service
On the following pages are the updates to OCSD’s
strategic goals and levels of service. The six strategic
goals are noted and include a status update. The levels
of service standards are measures of service that are
seen by our customers as high priorities. Goals and
levels of service are divided into five areas:
• Providing Exceptional Customer Service — providing
reliable, responsive and affordable services in line
with customer needs and expectations.
• Protecting Public Health and the Environment —
protecting public health and the environment
utilizing all practical and effective means for
wastewater, energy, and solids resource recovery.
• Managing and Protecting the Public’s Funds—
continually seeking efficiencies to ensure that the
public’s money is wisely spent.
• Stakeholder Understanding and Support —
communicating our mission and strategies with
those we serve and all other stakeholders.
• Organizational Effectiveness — creating the best
possible workforce in terms of safety, productivity,
customer service and training.
Status of Strategic Initiatives since
Adoption of the 2016 Five-Year Plan
Providing Exceptional Customer Service
1. Odor Control – Completion of the Odor Control
Master Plan to make sure OCSD’s investment is
current and, if needed, identification of future
process systems necessary to maintain exceptional
customer service. COMPLETE
Managing and Protecting the Public’s Funds
2. Local Sewer Transfers — Complete transfer of
174 miles of local sewers serving parts of Tustin
and unincorporated areas of north of Tustin. The
transfer of these local sewers has been completed.
COMPLETE
Protecting Public Health and the Environment
3. Future Biosolids Management Options — Completion
of the Biosolids Master Plan. This Plan will identify
OCSD’s future biosolids management options,
evaluate OCSD’s existing solids handling facilities
and alternative solids treatment technologies, and
make recommendations for future capital facilities
improvements. COMPLETE
4. Energy Efficiency — Completion of a research
study for new energy efficiency and conversion
technologies to maximize energy efficiency, reduce
operating costs, minimize environmental impact,
and replace assets that are at the end of their useful
lives. COMPLETE
Stakeholder Understanding and Support
5. Future Water Recycling Options — Determine
partnerships, needs, strategies, benefits and costs
associated with recycling of Plant No. 2 effluent
water. ONGOING
Organizational Effectiveness
6. Workforce Planning and Workforce Development —
This initiative is an ongoing part of a comprehensive
effort to ensure we have the right people, with the
right skills and abilities, in the right place, at the
right time. ONGOING
Every two years the Board of Directors revisits the
Strategic Plan to assure that it captures the will of
the Board of Directors and sets a proper planning
basis for the two-year budgeting effort. The Board
of Directors is scheduled to consider and adopt a
finalized strategic plan in November 2019 to support
the start of a new two-year budget in January 2020.
Strategic Planning
Process
Operational
Planning
Strategic
Planning
Board
Approval of
Strategic
Plan
Board
Approval of
Budget
Goal and
ObjectivesBudget
Monitoring and
Evaluation New or Altered
Levels of Service
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1716
INFRASTRUCTURE ASSET MANAGEMENT
Asset Management
In December 2002, the Orange County Sanitation
District (OCSD) Board adopted their “Asset
Management Strategic Plan and Framework Analysis”
(Asset Management Plan). The plan defined Asset
Management for OCSD as: “to create and acquire,
maintain, rehabilitate, replace and augment these
valuable wastewater assets in the most cost effective
(lowest life cycle cost) sustainable manner at the level
of service required by present and future generations
of regulators and customers at an acceptable level
of risk.”
OCSD is committed to providing services for its
ratepayers to reliably meet our regulatory mandates
and levels of service approved by the Board of
Directors and will provide these services using
sustainable engineering principles that result in
the lowest responsible lifecycle cost. OCSD installs,
operates, maintains, refurbishes and disposes of assets
with lifecycles measured from years to decades, so an
approach which balances long, medium and short-
term needs is necessary.
Asset management has evolved into a comprehensive
decision-making framework that encompasses
engineering planning, design and construction
of quality facilities, optimized operation, proper
maintenance, and planned refurbishment and
disposal that will meet OCSD’s changing needs. This
coordinated decision making process will allow OCSD
to consistently meet mandated levels of service to the
ratepayers at the lowest lifecycle cost.
OCSD’s Asset Management Plan focuses on the long-
term modeling of systems to ensure the proper rate
structure is in place to support sustainable operations
and to prioritize condition assessment studies based
on service life and service conditions. These are
important starting points and have yielded tangible
benefits in reduced risk levels and an improved
capital planning approach. The results of the long-
term modeling are completely dependent on the data
quality of the databases supplying information to
the TeamPlan Software. Staff continues to improve
the data quality of the source systems to improve
the accuracy of the long-term model. The Maximo
Computer Maintenance Management System (CMMS)
is an example of an effort to improve OCSD’s Asset
Register. Technicians and the Asset Engineers
continue to work to update the database information
including installation date, asset cost, condition and
criticality in the new system.
While the TeamPlan Software projects future renewal
cash flow requirements in the long-term, OCSD has
been striving to more accurately identify medium to
short-term capital cash flow requirements. Specifically,
the Engineering Planning Division has been working
on developing a medium to long-term (up to 20
years) Capital Improvement Program (CIP) by
creating specific project plans for the refurbishment,
rehabilitation or replacement for each asset area.
This medium-term management is important for
several reasons. By moving away from narrowly
focused projects to solve individual problems, to
more comprehensive projects refurbishing entire
processes, OCSD benefits by having less operational
disruption and more efficient project delivery,
better cash flow estimation, and better operations
and maintenance decision-making framework.
This is a huge undertaking based on the number of
assets and facilities, but over the twenty-years, the
unknown amount of capital assets that are in need of
rehabilitation is expected to be drastically reduced and
replaced by more specific estimated capital needs.
Complementing the medium-term planning are
the short-term efforts to coordinate maintenance
actions that can reduce risks, actively defer the larger
refurbishment projects, and reduce asset consumption
rates to minimize the need for replacement of
structures and conveyance systems when projects
are executed. The Planning Division Area Engineers
are constantly reviewing their area scopes of work,
utilizing their criticality and condition information
and engineering judgment, to identify opportunities
for operational adjustments or maintenance activities
that cost effectively extend the life of key assets which
may allow for deferral of the larger overall project.
This may be a targeted equipment replacement or
pipeline repair that is more urgent than the need of
the overall facility. These engineers may also identify
opportunities to reduce asset consumption through
coating systems, atmosphere improvements or small
structure repairs before major damage is done. These
actions can drastically reduce the cost of future
projects by preventing the need to demolish and
replace entire structures.
OCSD is committed to continuous improvement
of the process by which it manages the assets and
facilities that are required to reliably deliver its level
of service commitments. The additional resources
and individual accountability for specific areas has
improved, and will continue to improve our capital
planning, project packaging, project execution and
delivery, plant operability and maintenance planning.
The average age and value of the assets OCSD owns
is increasing steadily over time, the latent asset
replacement obligation is rising, and as a consequence,
OCSD’s need is planning for decreased capital projects
for expansion and increased renewal expenditures
in the future relative to past expenditure levels.
Additional focus is given to ensuring that appropriate
operation and maintenance strategies are being
applied that consider the different ages of assets being
maintained.
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1918
INFRASTRUCTURE ASSET MANAGEMENT
Asset Valuation
The replacement valuation for all of OCSD’s assets has
been updated in 2018. The table below presents the
current replacement and depreciated values of OCSD’s
assets. The depreciated value is the book value of the
assets based on their age, which is a prediction of their
current condition.
The 2018 replacement value is estimated to be $10.8
billion. In 2012, the valuation estimate was $6.2
billion. The major reason for the valuation increase
is the 2018 valuation was significantly detailed and
thorough compared to the past. It is projected that
the replacement value will increase as the Capital
Improvement Program continues and OCSD tracks its
assets in a progressive manner.
Planned CIP Outlays
The following chart shows the 20-year CIP outlay
which includes current and predicted future Capital
Improvement Program projects.
OCSD’s capital improvement and maintenance
programs are focused on maintaining our infrastructure
to ensure that our mission is delivered reliably and
that our facilities are managed in a way that minimizes
overall life cycle costs
Below is a status of the FY 2019-20 infrastructure
maintenance activities and planned activities for the
next 20 years.
Collections System:
OCSD’s collections system consists of 389 miles
of sewers. This length is down from 396 due to the
recent sewer transfers with the City of Santa Ana. The
maintenance of all regional sewers is actively managed
with 230 miles of regional sewers requiring scheduled
cleaning. The largest sewers are typically self-cleaning
due to higher flows and locations closer to the treatment
plants. The regional collections system also includes
15 pump stations and two metering locations. Typical
collections system maintenance activities consist
of televising, inspecting, and cleaning sewer lines;
operating, maintaining and cleaning pump stations
with associated facilities; and chemical conditioning
of the sewage to reduce corrosion and control odors.
Maintenance activities are based on established levels
of service to ensure compliance with our Sewer System
Management Plan, reducing spills, increasing reliability
and safety, and ensuring that our facilities are managed,
operated and maintained to minimize overall life cycle
costs and need for repairs. The cleaning frequencies
are based on data from pipe inspections, closed-circuit
television (CCTV) work, historical records, and industry
best practices. The planned activities help extend the
useful life of the assets and minimize nuisance odors.
During FY 2018-19 the following maintenance activities
are projected to be completed:
• Cleaning of 65 miles of regional sewer lines.
• CCTV video inspection of 650 regional system
manholes.
• CCTV video inspection of 80 miles of regional sewer
pipeline.
• 90 percent of scheduled pump station preventative
maintenance work.
• Cleaning of 90 percent of trouble spot and scheduled
inverted siphon work.
• Manage odor control chemical expenses to 95 percent
of budget.
The following emergency preparedness efforts were
completed:
• Purchased larger generator to support pump stations
on high flow during loss of utility power based on
analysis completed in the previous year.
• Began purchase of emergency preparedness bypass
pumping hardware.
Total costs: $9,503,432
The following activities and goals are planned for FY
2019-20:
• Clean 65 miles of regional sewer lines.
• CCTV video inspection of 650 regional system
manholes.
• CCTV video inspection of 70 miles of regional sewer
pipeline.
• Complete at least 85 percent of scheduled preventative
maintenance work.
• Manage odors in the collections system while limiting
odor control chemical expenditures to between 95-
100 percent of budget.
• Complete year one of a two-year effort to reduce
potential arc flash by adjusting and testing protective
relays and breakers.
• Continue to implement emergency preparedness
bypass pumping plan for pump stations.
Estimated total costs: $10,437,832
Collections System Capital
Improvement Projects:
Our collections projects go through the planning and
design process to ensure all elements of the project are
thoroughly assessed. These projects typically renew or
replace aging pipelines and pump stations, upgrade
facilities to meet current codes and standards, and in
some instances to increase flow capacity due to observed
increases in stormwater infiltration and/or growth in
localized portions of our service area.
We are currently planning and executing a
comprehensive program to renew our collections
system. One of the larger projects is the Newhope-
Placentia Trunk Replacement (Project No. 2-72) which
is taking place in the cities of Fullerton and Anaheim.
Seven miles of sewer along State College Boulevard,
from Yorba Linda Boulevard to Orangewood Avenue,
will be upsized to accommodate the flow necessary
to allow the abandonment of the Yorba Linda Pump
Station which has reached the end of its useful life.
0
50
100
150
200
250
300
350
400
450
FY 3
6
-
3
7
FY 3
7
-
3
8
FY 1
9
-
2
0
FY 2
0
-
2
1
FY 2
1
-
2
2
FY 2
2
-
2
3
FY 2
3
-
2
4
FY 2
4
-
2
5
FY 2
5
-
2
6
FY 2
6
-
2
7
FY 2
7
-
2
8
FY 2
8
-
2
9
FY 2
9
-
3
0
FY 3
0
-
3
1
FY 3
1
-
3
2
FY 3
2
-
3
3
FY 3
3
-
3
4
FY 3
4
-
3
5
FY 3
5
-
3
6
Proposed CIP Outlay for Board Authorized Projects Future CIP Rehabilitation or Replacement
$
i
n
m
i
l
l
i
o
n
s
20 YEAR CIP OUTLAY
Valuation Plants Collection Total
Replacement Value $7.3 $3.5 $10.8
(in billions)
Depreciated Value $2.1 $0.5 $2.6
(in billions)
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2120
INFRASTRUCTURE ASSET MANAGEMENT
The project will also include modifications to existing
diversion structures to add flexibility to the collections
system and divert additional reclaimable flows.
Construction efforts started in May 2016 and the first
phase of the project is complete. The next phase, (in
Anaheim) is currently under construction and will be
complete in 2021. The project has a current budget of
$111 million.
Another large-scale project is the Rehabilitation of the
Western Regional Sewers (Project No. 3-64) which
covers approximately 17 miles of sewers in the cities of
Anaheim, Buena Park, Cypress, La Palma, Los Alamitos,
Seal Beach and unincorporated areas of the County
of Orange referred to as Rossmoor. This large project
is required to rehabilitate or replace pipes that were
installed 45 to 55 years ago. The sewers have multiple
deficiencies which have allowed the intrusion of ground
water primarily at the joints, but also sporadically along
the pipe segments. In some cases, hard calcium deposits
have developed, making the pipe difficult to clean, and
over time may impede the wastewater flow. Most of the
project’s pipes will be rehabilitated with a fiberglass liner
and a few others will be replaced with larger diameter
pipelines. Also, over 150 manholes will be replaced. The
project budget is $202 million.
At the southern edge of the previously mentioned
project, the Seal Beach Pump Station (Project No. 3-62
& 3-67) also requires attention to properly support the
western region of our service area. Not only are the
electrical and safety codes significantly different from
when the station was first constructed in the early 1970s,
but many of the electrical, mechanical, and control
system components are becoming obsolete, so long-
term maintenance is no longer an option. One of the
sewer force main pipes is out of service and the other
force main is near the end of its useful life. The two-
sewer force main pipes (2.5 miles long) and the pump
station will be replaced. Odor control facilities will be
added to reduce system corrosion and minimize public
impacts. These projects are currently in the design phase
with construction anticipated for 2019 and 2022. The
budget for these projects is $133 million.
In the cities of Santa Ana, Irvine and Costa Mesa
(Project No. 7-66) the Sunflower and Red Hill
Interceptor Repairs project will repair plastic liner
failures within a 6,000-foot section of the Sunflower and
Red Hill Interceptors. This will require live entry and
temporary diversions and bypass pumping to perform
the work. The project has a current budget of $5.5
million and will begin construction in 2021.
In Newport Beach, the Bay Bridge Pump Station
Replacement Project (Project No. 5-67) will replace
the existing Bay Bridge pump station to meet current
building, electrical, and safety codes, and to meet
projected capacity needs. The existing force mains
will also be replaced and will extend from the new
pump station location, across the Back Bay channel,
to connect with the existing pipes near the Dover
Avenue and Pacific Coast Highway intersection. The
project is currently in the design phase. Construction is
anticipated to begin in 2021. The budget for this project
is $64 million.
Reclamation Plant No. 1:
The maintenance organization continues to implement
industry best practices for safety, effectiveness and
reliability. During FY 2018-19, several major initiatives
were completed to enhance maintenance staff efficiency,
including the addition of a comprehensive lighting
maintenance and replacement services contract
allowing Electrical Staff to focus on more complex work.
Throughout the Plant, more than 4,700 preventative
maintenance activities were performed. Efforts continue
to set up formal coatings and lubrications programs, as
well as creating enhanced job plans for Motor Control
Centers and switchgear to comply with National Fire
Protection 70E safety standards. In addition to these
activities, the following maintenance and repair activities
are projected to be completed in FY 2018-19:
• Major service of one blower that services the
Activated Sludge secondary treatment facility.
• Major maintenance service of 10 primary
sedimentation basins for increased reliability.
• Cleaning and valve replacement for one digester.
• Overhaul of one digester gas compressor.
• First year of comprehensive testing of Protective
Relays and Circuit Breakers.
• Meet stricter National Fire Protection A110 standards
for servicing standby and mobile generators.
Total costs: $6,669,503
During FY 2019-20, there are more than 5,200
preventative maintenance activities that are scheduled
to be completed at Plant No.1. This includes typical time
or cycle-based maintenance tasks such as adjustments
and mechanical alignments, cleaning and tightening of
electrical equipment, calibration of sensors and meters,
changing of lubricants and filters, exercising equipment,
rebuilds and regulatory testing. While completing these
activities, we will continue to conduct an optimization
study began in the previous year of all preventative
maintenance tasks to ensure assets are effectively
maintained at proper intervals and lower cost.
In addition, staff will be utilizing predictive technologies
such as vibration analysis to measure imbalance in
rotating equipment, thermography to measure excessive
heat, oil analysis to predict failure of lubricants, and
ultrasonic to detect leaks as well as deterioration and
short-circuiting in electrical equipment. Other major
planned activities for FY 2019-20 at Reclamation Plant
No. 1 include:
• Major overhaul of one CenGen Engine.
• Install last of four close coupled pumps for the Steve
Anderson Lift Station (SALS).
• Rehabilitate and return to service three Circular
Primary Clarifiers.
• Meet stricter standards for servicing and load testing
standby and mobile generators.
• Complete year two of a two-year effort to reduce
potential arc flash by adjusting and testing protective
relays and breakers.
• Assess underground cable condition to ensure
reliability of the electrical distribution network.
• Major service on one blower that services the
Activated Sludge secondary treatment facility.
• Major maintenance service of 34 remaining primary
sedimentation basins for increased reliability.
• Cleaning and valve replacement of three digesters.
Estimated total costs: $11,445,101
Reclamation Plant No. 1 Capital
Improvement Projects:
These projects are intended to rehabilitate or reconstruct
major components of our treatment process to ensure
compliance with regulatory permits, enhance water
recycling and safety.
One of the largest projects currently being designed is
the Headwork Rehabilitation at Plant No. 1 (Project
No. P1-105). The facility is almost 30 years old, so a
comprehensive refurbishment is required in order to
extend the life of the facility. Facilities to be rehabilitated
include the metering and diversion structure, the bar
screen building, the bin loading building, the main
sewage pump station, the grit basins, the primary
influent channels, the Headworks odor control
scrubbers, and the electrical power distribution and
control systems. The project will also include demolition
of the original Headworks No. 1 facilities and the
unused Chlorine Building pumps. Construction is
scheduled to begin in late 2020. The total budgeted cost
for this project is $406 million.
Primary Clarifiers Reliability Improvements at Plant
No. 1 (Project No. P1-133) will increase the operating
reliability of the rectangular primary clarifiers along with
the replacement of equipment that is beyond its useful
life. The Project is scheduled to begin construction in
2021 and the total budget is $21.5 million.
Treatment Plant No. 2:
All flows entering Treatment Plant No. 2 are treated to
full secondary standards and then discharged four miles
offshore through our ocean discharge outfall. Plant
No. 2 has also implemented the same maintenance
best practices implemented at Plant No. 1 to ensure
consistency across OCSD in the areas of safety and
asset reliability. Plant No. 2 will also benefit from the
lubrication and coatings programs in development and
the enhanced job plans for Motor Control Centers and
switch gear to comply with National Fire Protection
Association 70E safety standards. In addition to
more than 5,000 preventative maintenance activities
completed during FY 2018-19, the following major
activities are projected to be completed:
• Cleaning and valve replacement of three digesters.
• Rehabilitation of one CenGen electrical generator.
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INFRASTRUCTURE ASSET MANAGEMENT
• Complete 18-month program of comprehensive
testing of Protective Relays and Circuit Breakers.
• Complete rebuild of four dewatering belt filter
presses.
Total costs: $8,665,129
During FY 2019-20, there are more than 5,400
preventative maintenance activities that are scheduled
to be completed at Treatment Plant No. 2. This includes
typical time or cycle based maintenance tasks such as
adjustments and mechanical alignments, cleaning and
tightening of electrical equipment, calibration of sensors
and meters, changing of lubricants and filters, exercising
equipment, rebuilds and regulatory testing. While
completing these activities, we will continue to conduct
an optimization study of preventative maintenance tasks
began in the previous year to ensure assets are effectively
maintained at proper intervals and lower cost. In
addition, staff will be utilizing predictive technologies
such as vibration analysis to measure imbalance in
rotating equipment, thermography to measure excessive
heat, and oil analysis to predict failure of lubricants and
bearings. Other major planned activities at Treatment
Plant No. 2 for FY 2019-20 include:
• Overhaul of one CenGen Engine.
• Cleaning and valve replacement of four digesters.
• Major repair of six secondary clarifiers for increased
reliability.
• Meet stricter standards for servicing standby and
mobile generators.
• Complete year two of a two-year effort to reduce
potential arc flash by adjusting and testing protective
relays and breakers.
• Conduct medium voltage cable assessment.
• Replace boiler dual heat exchanger.
• Complete repair of secondary clarifier inlet gates.
• Assess and overhaul the steam turbine and condenser
in the Central Generator facility.
• Overhaul 2 of 3 digester gas compressors.
• Incorporate National Fire Protective Association
70E Electrical maintenance practices for staff and
equipment safety.
Estimated total costs: $12,812,474
Treatment Plant No. 2 Capital
Improvement Projects:
Plant No. 2 will be the site of many construction projects
over the coming decade. A few of these projects include:
The Primary Treatment Rehabilitation Project (Project
No. P2-98) will rehabilitate the primary clarifiers,
influent pipes, construct new primary effluent pipes,
and rehabilitate and upgrade the odor control systems.
These facilities date back to the late 1950s and are in
need of seismic and condition-based upgrades This is
anticipated to be a very long duration project because
the need to maintain treatment operations during the
project. Construction of the first phase is underway
and future phases will be completed by 2026. The total
project budget is $245 million.
As we make improvements throughout the Plant, it
is imperative we pay attention to our ocean outfall
systems. Many components of the system such as the
pipeline assets have already been addressed, so now
we turn our attention to the pumping systems. Along
with the pumping systems, Ocean Outfall System
Rehabilitation (Project No. J-117), will rehabilitate
the supporting electrical and informational systems.
The pump station work includes rehabilitation of the
mechanical, electrical, and civil systems which will
extend the life of the facility and increase the efficiency
of the system. In addition, a new Low Flow Pump
Station will be added due to our increased water
recycling rates which reduce our outfall flows below
the capacity of the current very large pumps. This
project will also relocate the existing Plant Water Pump
Station to prevent water not reclaimable by the GWRS
from entering the reclaimable portion of the treatment
plant, as well as replace existing electrical switchgear
at the Central Generation Building. The Ocean Outfall
Booster Station and the interplant effluent lines work is
completed. Remaining construction work is underway
and will be completed in 2026. The budget for this
project is $166 million.
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2019-20 BUDGET UPDATE
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INFRASTRUCTURE ASSET MANAGEMENT
Headworks Modifications at Plant No. 2 for GWRS
Final Expansion, (Project No. P2-122), will separate
reclaimable and non-reclaimable flows to supply
water for the GWRS Final Expansion. Construction
is scheduled to begin in Spring of 2020 and the Project
budget is $54 million.
Digester Gas Facilities Rehabilitation, (Project No.
J-124) will rehabilitate digester gas facilities at Plants
1 and 2 to meet current and future OCSD needs such
as Air Quality Management District and National Fire
Protection Association regulations, and future projected
gas production. Construction is scheduled to begin in
Winter of 2020 and the Project budget is $96.5 million.
Eighteen existing anaerobic solids digesters will be
replaced under a series of projects identified in the
Biosolids Master Plan, (Project No. PS15-01). The largest
of these projects, the TPAD Digester Facility at Plant
No. 2, Project No. P2-128 will construct six new 110-ft
diameter digesters. Design is scheduled to start Summer
of 2019 and the total Project budget is $405 million.
Support Facilities Projects:
Another project currently in design is the Headquarters
Complex and Site Security at Plant No. 1 (Project No.
P1-128). The current Administration Building does not
have sufficient office space to accommodate employees,
resulting in personnel being spread throughout
the plant in temporary trailers. Furthermore, the
Administration Building is approaching 60 years old
and requires extensive rehabilitation and upgrades to
meet current building code and permit requirements.
Some of the temporary trailers have been in use since
the 1990s. A new building, which will be located north
of Ellis Avenue across from Plant No. 1, will consolidate
employees and business functions, and will also preserve
valuable land at Plant No. 1 for future process needs, as
identified by the 2017 Facilities Master Plan. This project
is currently in design, with construction anticipated for
2021. The total project budget is $166 million.
Planning Studies:
As part of the long-term CIP planning efforts, several
studies are currently underway evaluating various
areas of the plants and the collections system to
determine their condition, and identify deficiencies or
improvements needed and to support CIP Projects.
These studies include the 2017 Facilities Master Plan,
Programmatic Environmental Impact Report, which
will provide clearance through California environmental
law for CIP Projects planned for the next 20 years.
We also have additional studies such as: Collections
Capacity Evaluation Study, which will update OCSD’s
collections hydraulic model and identify future capacity
projects; the Long Ocean Outfall condition assessment,
which will identify areas of that require repair or
replacement; and the Active Fault Location Study at
Plant No. 2, it will identify active faults crossing the site
and establish pre-determined setback buffer zones. As
these studies evolve, projects will be supported, refined
or created to improve our systems. Planning Studies
Program Budget: $28.7 million.
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2019-20 BUDGET UPDATE
26 27
CAPITAL IMPROVEMENT PROGRAM
CIP Budget Request Summary
This is an update to the FY 2018-20 two-year budget.
In preparation for the 2019-20 update, the Sanitation
District’s Board of Directors reviewed the proposed
changes to the CIP to gain an understanding of the
impact of the CIP to the current rate structure program.
With $10.8 billion (replacement value) of aging
assets requiring constant investment and attention,
the Sanitation District is focusing its efforts on the
continued refinement of its asset management based
engineering planning process. This process has been
used to propose project modifications to more efficiently
package projects for execution. The Sanitation District
staff is working to carefully identify all the necessary
scope of work items in the planning phase of projects to
assist with successful CIP execution that will also reduce
future change orders and other project risks.
The Project Management Controls System staff works
with project managers and management throughout
the year to manage the scope, schedule, budget, risk
and other key project indicators for each project. The
information is collected monthly and compiled in
the Project Management Office Sharepoint website.
This information is then readily available during the
budgeting process to minimize the time and effort
needed to prepare and update the CIP portion of the
overall budget.
Annually, as part of the CIP budget validation and
prioritization process, the Sanitation District staff
reviews each ongoing CIP project to ensure that
the scope of the project is appropriate, and that the
cost estimates are up to date. All projects in the CIP
program have been prioritized based on risk exposure.
Projects that would present a higher risk if they were
delayed are given a higher priority. The CIP budget
process is continually improved and further refined
as the Sanitation District improves the CIP Project
Management Controls System.
The validated CIP includes 77 large capital projects with
a total 10-year estimated cashflow expenditure of $2.8
billion, not including reimbursables. This represents a
net $20 million decrease from the 2018-20 CIP estimate.
For a listing of capital projects and their budgets, see
“Summary of Capital Requirements” in the appendix.
During this budget validation process, projects budgets
are modified to account for newly discovered issues. In
some cases, more accurate construction cost estimates
were developed at the preliminary design level when
more project details have been defined. For example, a
detailed hydraulic model revealed a $130 million sewer
capacity project could be reduced to $19 million.
Seven projects have been created totaling $92 million.
Most notably are five projects related to the replacement
of the digesters at Plant No. 2 as recommended by the
Biosolids Master Plan. These projects are:
• P2-134: Substation Replacement at Plant No. 2
• 7-67: Main Street Pump Replacement and Force Main
Rehabilitation
• J-133: Laboratory Rehabilitation at Plant No 1
• P1-134: South Perimeter Security and Utility
Improvements at Plant No.1
• 7-68: MacArthur Force Main Improvements
• P1-135: Digester Ferric Chloride Piping Replacement
at Plant No. 1
Additionally, the following project was not included
in the FY 2018-20 budget book, but has since been
approved by the Sanitation District’s Board of Directors:
• 7-66: Sunflower and Red Hill Interceptor Repairs
As part of the budget update process, the following
projects were cancelled or closed:
Cancelled: None
Closed:
• P1-123: Trunk Line Odor Control Improvements
• SP-178: Bay Bridge Pump station and Force Mains
Rehabilitation Study
• 2-76: Tustin Rose OCTA Grade Separation
Following within the appendix are descriptions and
justifications for the capital improvement projects
which are new projects proposed for this FY 2019-20
budget update. They give the reader a brief overview of
each project, the budget for the total project, and any
potential changes in the operating budget resulting from
the implementation of the project. For a description of
ongoing projects, see Section 8 of the Fiscal Years 2018-19
and 2019-20 Budget.
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2019-20 BUDGET UPDATE
2928
DEBT FINANCING PROGRAM
Debt Financing
Due to the potential magnitude of the capital
improvement program, it is necessary that OCSD
utilize debt financing to meet its total obligations. Debt
financing allows OCSD to meet projected construction
schedules while achieving the lowest possible user fees,
as well as long-term stability in future sewer service
fee rates.
Certificates of Participation (COP)
The primary debt financing mechanism used is
Certificates of Participation (COP). COPs are
repayment obligations based on a lease or installment
sale agreement. The COP structure was selected over
other structures because COPs are not viewed as debt by
the State of California, as the purchaser does not actually
receive a “bond,” but rather a share in an installment
sale arrangement where OCSD serves as the purchaser.
COPs can be issued with fixed or variable interest rates.
As of July 1, 2019, the total outstanding COP
indebtedness will be $972.8 million.
Build America Bonds Financings
OCSD issued the $80.0 million Wastewater Revenue
Obligations, Series 2010A in May 2010 and the $157.0
million Wastewater Revenue Obligations, Series 2010C
in November 2010 as “Build America Bonds” (BABs)
fixed rate debt.
The American Recovery and Reinvestment Act of
2009 created a new financing product, BABs, for the
municipal issuer. BABs are issued as higher interest
taxable bonds; however, the U.S. Treasury provides a
35 percent subsidy on interest payments. The net cost,
after accounting for the 35 percent subsidy payment,
frequently results in lower net costs to the issuer,
specifically in the maturity years beyond ten years.
On March 1, 2013, the federal government implemented
certain automatic spending cuts known as the sequester.
As a result of the sequester, federal subsidy payments
on BABs were reduced by 8.7 percent, 7.2 percent, 7.3
percent, 6.8 percent, 6.9 percent, 6.6 percent and 6.2
percent for the federal Fiscal Years ended 2013, 2014,
2015, 2016, 2017, 2018 and 2019 respectively.
Dedicated Funding Source
In 1992 and 2004 the Board of Directors formalized the
dedication of certain funding sources. To ensure the
continuation of favorable credit ratings, revenues were
dedicated to debt service in the following order:
1. Ad valorem property taxes
2. Sanitary sewer service charges
3. Other revenues
This apportionment of the ad valorem tax was
consistent with and pursuant to the Revenue Program
adopted in April 1979 to comply with regulations of the
Environmental Protection Agency and the State Water
Resources Control Board and in accordance with COP
documents and Board policy.
OCSD Maintains AAA Bond Rating
OCSD’s bond rating is “AAA” from Moody’s and
Fitch Ratings. An “AAA” rating is the highest for a
government agency. In order to maintain this rating,
OCSD adheres to its debt policy and coverage ratios
requirements. This Board-adopted policy serves as the
agency’s guide in the management of existing debt and
in the issuance of future debt.
Debt Ratios
OCSD has contractual covenants within the existing
COP agreements which require minimum coverage
ratios of 1.25. The minimum coverage ratio is the
ratio of net annual revenues available for debt service
requirements to total annual debt service requirements
for all senior lien COP debt. The coverage ratio for
senior lien COP debt is being proposed at 3.67 for FY
2019-20.
Future Financings
No new money debt issuances are being proposed
over the next Fiscal Year as the $2.8 billion in future
replacement, rehabilitation, and refurbishment projects
anticipated over the next ten years will be adequately
funded through current sewer service fee charges and
existing reserves.
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2019-20 BUDGET UPDATE
3130
OPERATING EXPENSES
Summary of Operating and Maintenance Expenses
(in millions)
Salaries, Wages, and Benefits – $98.4M
Salaries and Wages – The proposed budget for Full
Time Equivalent (FTE) positions for 2019-20 reflects
an increase of four FTEs (0.6 percent) from the 2018-
19 approved staffing level of 636.0 FTEs to 640.0 FTEs.
Provisions have been made in these salary projections
to comply with the terms of the most recently adopted
Memorandum’s of Understanding.
Retirement – OCSD employees are members of
the Orange County Employees’ Retirement System
(OCERS). Information from OCERS indicates that the
employer’s required contribution rates will be increased
in FY 2019-20 from 12.3 percent to 12.4 percent. As
a result of OCSD’s additional payment in 2016-17 to
reduce the unfunded actuarial accrued liability, OCSD’s
contribution rate is among the lowest in the county.
Group Insurance – These expenses include OCSD’s
share (approximately $16,780 per employee) of
employee medical plan benefits for the indemnity plan,
prepaid HMO plans, dental insurance plan, and life and
disability insurance premiums. The proposed budget
includes a seven percent increase for medical plans
starting January 2020.
Contractual Services – $22.0M
The treatment plants currently produce about 800
wet tons per day of biosolids which are recycled in
California and Arizona. About half of the biosolids are
currently allocated to create compost and the other half
is used on farms to grow feed and seed crops. The 2019-
20 biosolids budget is $13.4 million, approximately
61 percent of the Contractual Services budget. Other
residuals solids and waste services includes disposal
costs for grit and screening waste, digester cleaning
waste, and hazardous materials.
This category also includes appropriations for grounds
keeping, janitorial, security, toxic waste removal, outside
laboratory, trash pickup, plant site sweeping, closed
circuit television pipeline inspections, line cleaning, and
temporary services.
Repairs and Maintenance – $23.5M
This item, which is for parts and services for repair
of plant and collection facilities and annual service
contracts, is expected to increase $5.7 million, or 32
percent above the 2018-19 projected costs of
$17.8 million.
Planned repairs include: secondary clarifier overhaul
($2.2M); CenGen engine overhaul ($1.8M); primary
clarifier maintenance ($525K); secondary gate repairs
($325K); and Effluent Pump Station Annex and
Variable Frequency Drive repairs ($292K).
Operating Materials and
Supplies – $21.0M
Chemical Coagulants — Anionic polymer is added
to the influent wastewater along with ferric chloride
to improve solids removal efficiencies in the primary
clarifiers. Ferric chloride is also added to the digesters
for solids odor control. Cationic polymer is added
to digested sludge prior to dewatering to aid in
coagulation, improving the sludge and water separation
process. Cationic polymer is also added to the waste
activated sludge dissolved air flotation thickeners
(DAFTs) to improve solids coagulation.
The costs for this group of chemicals are expected to be
$10.4 million, an increase of $3.5 million from the 2018-
19 projected costs due to price increases.
Odor Control Chemicals — OCSD uses hydrogen
peroxide, sodium hydroxide (caustic soda), sodium
hypochlorite (bleach) and muriatic acid as the primary
odor control chemicals in the treatment plants. Ferrous
chloride, magnesium hydroxide, calcium nitrate, and
caustic soda are the primary odor control chemicals
used in the collections system.
The 2019-20 budget for these chemicals is $7.4 million,
approximately $900,000 more than the 2018-19
projected costs.
Utilities – $9.3M
During FY 2019-20, the overall cost for utilities, a
significant component of the operating budget, is
anticipated to increase by $1.0 million, or 11.9 percent
due to increases of price and usage as follows:
Natural Gas — Natural gas is purchased from two
providers for different purposes. Purchases from a gas
marketer are used to supplement the digester gas that
is used to run the CenGen facilities. The FY 2019-20
natural gas budget is $722,000, 13.1 percent lower than
the projected 2018-19 costs. With the new emission
control systems installed on all CenGen engines, natural
gas usage is expected to increase
during the summer months in order to reduce peak
electricity demand.
Electricity — Electricity is the largest utility cost
incurred by OCSD. Purchased electricity is used in
running the plant processes as a supplement to power
produced in the central generation facilities.
The 2019-20 proposed budget is 15.4 percent higher
than the 2018-19 projected costs due to price increases
and the use of centrifuges. In 2019-20, natural gas costs
are expected to rise, resulting in a greater projected
expense for imported electricity.
With the completion of the emission controls system
installation, staff has the opportunity to optimize power
usage by either purchasing supplemental natural gas or
electricity, whichever costs less.
Water — Water is used throughout the treatment
plants. Potable (drinking) water is supplied by the Cities
of Fountain Valley and Huntington Beach; and plant
water is disinfected secondary effluent.
• Potable Water — The potable water budget includes
water supplied by the City of Fountain Valley for
Plant No. 1 and the City of Huntington Beach for
Plant No. 2. Approximately 5 percent of the potable
water at Plant No. 1 is used for domestic uses and less
than 1 percent is used for irrigation. The majority of
the irrigation at both plants uses reclaimed water. Less
than 1 percent of the potable water used at Plant No. 2
is for domestic uses due to the relatively small number
of employees at Plant No. 2. The proposed total
potable water cost for 2019-20 is $772,000, a 9 percent
increase from the projected 2018-19 costs.
2018-19 2019-20 2019-20
Category Adopted Adopted Proposed
Salaries and Benefits $96.0 $98.2 $98.4
Contractual Expenses 25.2 22.1 22.0
Repairs and Maintenance 21.7 19.3 23.5
Operating Materials & Supplies 15.7 18.9 21.0
Utilities 7.5 9.0 9.3
Professional Services 5.4 4.6 5.6
Other Materials, Supplies, Services 5.3 4.2 4.3
Administrative Expenses 2.0 1.9 2.0
Training and Meetings 1.1 1.0 1.1
Research and Monitoring 1.1 1.1 1.1
Printing and Publications 0.3 0.3 0.3
Cost Allocation (20.1) (20.4) (20.4)
Total Operating Expenses $161.2 $160.2 $168.2
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2019-20 BUDGET UPDATEOPERATING EXPENSES
3332
Professional Services – $5.6M
Professional Services includes General Counsel, special
labor counsel, audit and miscellaneous accounting
services, legislative advocacy, engineering, and other
technical consulting services. The 2019-20 proposed
budget is 22.0 percent higher than the 2018-19 projected
cost mainly due to increases of engineering services,
safety assessments, and consulting services.
Other Material, Supplies,
Services – $4.3M
This category of costs includes an appropriation
for 2019-20 of $1.7 million for in-lieu premium
contribution charged to operations is recommended for
the Property and General Liability Program. This will
serve to maintain the reserves balance for the property
and general liability self-insurance programs.
OCSD’s outside excess general liability insurance
coverage is $40 million per occurrence with self-
insurance retention of $500,000.
OCSD’s property insurance coverage is $1 billion for
perils of fire and $300 million for perils of flood, subject
to a self-insurance retention of $250,000. OCSD is
partially self-insured for earthquake, but does carry $25
million in coverage on fifteen (15) key structures with
a $5 million deductible. OCSD also has a $50 million
sublimit for builder’s risk under the property insurance
program to ensure upcoming construction projects are
adequately covered.
Expenses not chargeable to other categories, such
as freight and miscellaneous items, and annual
regulatory fees assessed by the South Coast Air Quality
Management District, are recorded in this category.
Administrative Expenses – $2.0M
These accounts include supplies, postage, technical
journals and publications, forms, small office
equipment, and small computer items that cost less than
$5,000 per item and exclude items that are capitalized.
Training and Meetings – $1.1M
Board member and staff travel has been significantly
reduced in recent years. This category also includes
meetings of professional societies; ongoing technical
training and materials for staff; training for
computerized plant monitoring and control systems,
MAXIMO (a computerized maintenance management
system), Enterprise Resource Planning (ERP), and
other “high tech” equipment, processes and systems;
and training to allow for an adaptive and flexible work
force. While OCSD continues to place an emphasis on
effective safety training, as well as technical, leadership
and management training, the training budget has
been reduced from previous highs of 2.0 percent to
approximately 1.8 percent of budgeted regular salaries
due to savings achieved in part through the use of
online courses.
Research and Monitoring – $1.1M
The budget for research and monitoring expenditures
is maintained at approximately $1.0 million each year.
It consists of contract services to carry out the extensive
ocean monitoring program required by the EPA under
provisions of OCSD’s National Pollutant Discharge
Elimination System (NPDES) permit; air quality
monitoring costs; OCSD’s contribution to the Southern
California Coastal Water Research Project (SCCWRP)
being conducted under a joint powers agreement with
other Southern California municipal dischargers;
and also provide for increased operational and ocean
research and evaluation to develop optimum operating
parameters in treatment plants.
Printing and Publication – $0.3M
The budget provides for in-house and outside
reproduction costs and reflects an expanded
management information system and administrative
requirements, as well as a continuing demand by the
public and regulatory agencies for information. The
continuing effort of the Public Affairs Office to improve
public education programs about OCSD’s activities is
also reflected in the budget for this line item. This group
of accounts also includes costs for photo processing,
advertisements, and notices.
Cost Allocation – ($20.4M)
The Cost Allocation represents direct labor and benefit
charge outs and materials, supplies and services cost
allocation to the capital projects where the related work
was performed.
BUDGET UPDATE | FISCAL YEAR 2019-20 BUDGET UPDATE | FISCAL YEAR 2019-20
2019-20 BUDGET UPDATE
34 35
DEPARTMENTS SUMMARY
Expenses by Department (in millions)
2019-20 2019-20
2018-19 Originally Percent Updated Percent
Department Budget Proposed Change Proposed Change
Administration Units:
General Manager’s Office $4.6 $4.5 (2.2%) $5.0 10.3%
Human Resources 8.3 9.0 8.4% 9.4 3.9%
Administrative Services 21.1 19.5 (7.6%) 19.7 0.8%
Sub-Total $34.0 $33.0 (2.9%) $34.1 3.3%
Operating Units:
Environmental Services 18.0 18.4 2.2% 17.8 (3.1%)
Engineering 3.8 3.8 0.0% 6.6 71.3%
Operations & Maintenance 105.4 105.0 (0.4%) 109.7 4.6%
Sub-Total $127.2 $127.2 0.0% $134.1 5.4%
Total $161.2 $160.2 (0.6%) $168.2 5.0%
Staffing by Department (FTEs)
2019-20 2019-20
2018-19 Originally Percent Updated Percent
Department Budget Proposed Change Proposed Change
Administration Units:
General Manager’s Office 14.00 14.00 0.0% 15.00 7.1%
Human Resources 27.00 27.00 0.0% 27.00 0.0%
Administrative Services 100.00 100.00 0.0% 101.00 1.0%
Sub-Total 141.00 141.00 0.0% 143.00 1.4%
Operating Units:
Environmental Services 91.00 91.00 0.0% 92.00 1.1%
Engineering 116.00 116.00 0.0% 120.00 3.4%
Operations & Maintenance 288.00 288.00 0.0% 285.00 (1.0%)
Sub-Total 495.00 495.00 0.0% 497.00 0.4%
Total FTEs* 636.00 636.00 0.0% 640.00 0.6%
*FTE totals above include four new proposed positions and eight upgrades of current positions. A total of 28 positions from Division
875 have been reallocated to Divisions 740, 750, 770, and 870. Total filled positions will not exceed 640 FTEs at any point in time.
Administration Units
General Manager’s Office
Budget $5.0M – Staffing 15 FTEs
The General Manager’s Office provides general
oversight of all OCSD operations and incorporates
functions in the areas of Public Affairs and
Board Services.
Human Resources
Budget $9.4M – Staffing 27 FTEs
The Human Resources Department works with
management and employees to ensure an effective
and productive employment relationship. The
department also provides risk management services
to the organization to create a safe, healthy and secure
environment for staff, contractors, and visitors.
Administrative Services
Budget $19.7M – Staffing 101 FTEs
The Administrative Services Department maintains
financial oversight and administration of all OCSD
funds and accounts and is responsible for contract
administration and procurement, materials
management, and oversees all OCSD computer,
networking and customer support issues.
Operating Units
Environmental Services
Budget $17.8M – Staffing 92 FTEs
The Environmental Services Department manages all
environmental monitoring, regulatory, compliance
and reporting elements to ensure that OCSD meets
the requirements of federal, state and local regulations
for treated effluent discharge into the ocean, water
recycling, air emissions, industrial waste, sewer system
operations, land use controls and biosolids and
stormwater management.
Engineering
Budget $6.6M – Staffing 120 FTEs
The Engineering Department is responsible for
the planning and execution of the OCSD’s capital
improvement program and asset management program.
Operations and Maintenance
Budget $109.7M – Staffing 285 FTEs
The Operations and Maintenance Department is
responsible for the operation and maintenance of the
OCSD’s two wastewater treatment plants as well as the
sanitary sewer system pipeline and pumping facilities.
The department also provides fleet management services
for OCSD. The budget reflects the addition of eight
new positions to support an increasing maintenance
workload.
FTEs = Full-Time Equivalent Positions
BUDGET UPDATE | FISCAL YEAR 2019-20
2019-20 BUDGET UPDATE
3736BUDGET UPDATE | FISCAL YEAR 2019-20
GENERAL MANAGER’S OFFICE
Service Description
General Management Administration is responsible for working with the Board of Directors to establish standards,
policies and procedures, and the overall goals and Strategic Plan of the Sanitation District. The General Manager
reports directly to the Board of Directors and provides general oversight to all agency operations, interagency
relations, legislative activities, and communications. The General Manager directly oversees Human Resources,
Board Services and Public Affairs.
Board Services promotes public trust and ensures transparency by preparing and publishing agendas and notices in
accordance with legal requirements; accurately recording and preserving the legislative actions; safeguarding vital,
historic and permanent records of the Sanitation District; and providing exceptional customer service and support to
the Board of Directors, the Sanitation District staff and the general public in a courteous, timely and efficient manner.
Public Affairs communicates information about OCSD in a timely, accurate and accessible way to employees, the
Board of Directors, the general public, the wastewater industry and the news media.
Administrative
Services
Environmental
Services
Engineering
Operations &
Maintenance
Board ofDirectors
General
Counsel
Office
General
Manager
HumanResources
General
Management
Administration
Board Services
Public Affairs
General
Manager’s
Office
Budget Overview
The FY 2019-20 budget for the General Manager’s Office reflects an
increase of 10.3 percent over the originally adopted budget. The increase
is primarily due to increases in costs for salaries and benefits, training
and meetings, and legal services. The increase in training and meetings
is attributable to the addition of leadership training for Board members
and staff, in addition to the centralization of budgets for large annual
conferences.
Performance Objectives / Measures
• Ensure that the Board approved Strategic Plan is implemented.
• Provide leadership development opportunities reaching at least 70
percent of staff.
• Maintain the Special District Leadership Foundation (SLDF) District
Transparency Certificate of Excellence.
• Respond to 100 percent of public records requests within seven
business days.
• Provide information to the Board of Directors through the General
Manager’s monthly report and the new Board member orientation.
• Provide services and implement programs that meet the
communication needs of OCSD’s external audience by reaching a
minimum of 3,000 people per year.
Authorized FTE Positions
Managers ...................................3.00
Supervisors /Professionals .....7.00
Administrative /Clerical ............5.00
Total .........................................15.00
Staffing Trends
2019-202018-192017-182016-172015-16
15.00 15.00 15.00 14.00 15.00
Operating Expense
2018-19 2019-20 2019-20
Category Budget Adopted Proposed
Personnel $2,175,400 $2,164,400 $2,314,240
Supplies $500,340 $460,900 $480,640
Professional / Contractual Services $700,000 $700,000 $889,400
Research & Monitoring $0 $ 0 $ 0
Repairs & Maintenance $ 0 $ 0 $0
Utilities $ 110,000 $110,000 $110,000
Other $1,225,780 $1,191,680 $1,295,180
Cost Allocation ($116,520) ($116,520) ($116,520)
Total $4,595,000 $4,510,460 $4,972,940
3938BUDGET UPDATE | FISCAL YEAR 2019-20 BUDGET UPDATE | FISCAL YEAR 2019-20
HUMAN RESOURCES DEPARTMENT 2019-20 BUDGET UPDATE
Service Description
Human Resources is a full-service department responsible for all aspects of Human Resources and Risk
Management administration that ensures a productive and safe workplace and maintains programs that support a
positive employment relationship. The Human Resources Department is committed to a workplace grounded in fair
and equitable employment decisions and practices. This department serves as the in-house advisor to the General
Manager, executive staff, OCSD departments, and all staff by delivering high quality services with an emphasis on
customer satisfaction as a key objective.
Human Resources Administration oversees all human resources functions, including Benefits Administration,
Classification and Compensation, Employee and Labor Relations, Workers Compensation, Employee Development/
Performance Management, and Recruitment and Selection. Benefits Administration administers and maintains
employee benefits and the reasonable accommodation program. Classification and Compensation is a vital function
that ensures a competitive and fair compensation system and an equitable classification structure. Employee and
Labor Relations works to enhance the employment relationship by providing professional assistance and guidance
on labor agreements, policies, laws and work-related issues. Workers Compensation provides medical care and
benefits to employees who become ill or injured in the course of employment. Employee Development/Performance
Management manages and coordinates District-wide legally mandated training programs; and oversees the
employee performance program. Through the Recruitment and Selection program, OCSD seeks to attract, hire, and
retain the best qualified employees in a manner that is fair, equitable and merit-based.
Risk Management/Safety/Security protects the finances and human resources of OCSD. It identifies and addresses
potential risk to the organization and provides solutions for mitigating or reducing the risk. The major areas of
responsibility include insurances, occupational safety and health, security, and emergency preparedness. The division
manages OCSD’s numerous insurance programs that include excess liability, property, boiler and machinery,
earthquake and excess workers’ compensation. Safety is a priority for OCSD and this area includes comprehensive
safety training programs, safe working practices, and quarterly facility inspections. Security and emergency
preparedness programs include the oversight of OCSD’s contracted security services, planning emergency drills, and
ensuring OCSD has the necessary programs, supplies and training in preparation for an emergency. These programs
ensure OCSD provides a secure, safe and healthy work environment for OCSD staff, contractors, and visitors.
Human
Resources
Administration
Risk
Management /
Safety Security
Administrative
Services
General
Manager’s
Office
Environmental
Services
Engineering
Operations & Maintenance
Board ofDirectors
General
Counsel
Office
General
Manager
Human
Resources
Budget Overview
The FY 2019-20 budget for the Human Resources Department reflects
a 3.9 percent increase from the previously adopted budget. The increase
is primarily due to increases in costs for salaries and wages, security and
other professional services.
Performance Objectives / Measures
• Maintain a systematic succession management program that
incorporates leadership training and employee development.
• Meet or exceed recruitment timelines with all dates and times being
adhered to and communicated.
• Work with upper management to resolve issues at the lowest level
through conflict resolution training and techniques.
• Reduce injury rates through monitoring and partnering with
departments to implement effective safety and health systems and
processes.
• Complete quarterly safety training, near miss and building inspection
status reports.
• Implement Leading Safety Indicators to reduce injuries to employees.
• Manage operating expenditures to within 96 to 100 percent of the
approved budget.
Authorized FTE Positions
Managers ...................................2.00
Supervisors /Professionals ...22.00
Administrative /Clerical ............3.00
Total .........................................27.00
Staffing Trends
2019-202018-192017-182016-172015-16
27.0027.00 27.0027.00 27.00
Operating Expense
2018-19 2019-20 2019-20
Category Budget Adopted Proposed
Personnel $4,779,200 $4,920,700 $5,042,260
Supplies $690,660 $657,060 $765,710
Professional / Contractual Services $2,717,500 $2,957,500 $3,067,500
Research & Monitoring $0 $0 $0
Repairs & Maintenance $3,050 $3,050 $3,050
Utilities $0 $0 $0
Other $1,408,160 $1,828,860 $1,843,640
Cost Allocation ($1,334,180) ($1,334,180) ($1,334,180)
Total $8,264,390 $9,032,990 $9,387,980
BUDGET UPDATE | FISCAL YEAR 2019-20 BUDGET UPDATE | FISCAL YEAR 2019-20
2019-20 BUDGET UPDATE
4140
ADMINISTRATIVE SERVICES DEPARTMENT
Budget Overview
The FY 2019-20 budget for the Administrative Services Department reflects a 0.8 percent increase from the previously adopted budget. Increases in costs for professional services were largely offset by decreased costs for postage, county service fees, and personnel.
Performance Objectives / Measures
• Manage operating expenditures to within 96 to 100 percent of the approved budget.
• Comply with the California State Government Code 100 percent of the time with all treasury investments.
• Submit the annual sewer service fee property parcel database to the County in time for placement on annual secured property tax bills.
• Process all approved sewer service fee refund requests within 90 days, 90 percent of the time.
• All debt service payments processed electronically, on the actual due dates, and error free 100 percent of the time.
• Continue the cycle count program and maintain a 97 percent accuracy rate or better.
• Replace obsolete desktop, mobile, and server computers. Rotate desktop computers every 5 years, mobile computers every 3 years, and servers every 5 to 6 years.
• Continue Cyber Security Awareness Protection – report on the overall effectiveness of the phishing campaign.
Authorized FTE Positions
Managers ...................................3.00
Supervisors /Professionals ...60.00
Administrative /Clerical ..........25.00
Technical .................................13.00
Total .......................................101.00
Staffing Trends
2019-202018-192017-182016-172015-16
98.00 99.00 99.00 100.00 101.00
Service Description
The Administrative Services Department oversees all of OCSD’s finance, contracts/purchasing, materials
management and information technology activities, including both day-to-day operations and strategic planning.
The department serves as a liaison to Executive Management, the Board of Directors, and other departments of
OCSD. The department includes four divisions:
Administrative Services provides leadership and oversight to all Administrative Services divisions.
Financial Management oversees and administers all OCSD’s funds and accounts. Programs include treasury and
debt management, accounts receivable and payable, user fees, payroll, fixed assets accounting, financial reporting and
coordinating the capital and operating budget process.
Contracts, Purchasing, and Materials Management is responsible for contract administration and procurement
for all departments. Additionally, this division manages OCSD’s warehouses, receives and maintains inventory, and
distributes supplies, materials, and equipment.
Information Technology is responsible for customer support related information technology assets and services,
networking and infrastructure, telecommunications service operation and maintenance, network and programming,
solutions and application support, and cyber security.
Administrative
Services
General
Manager’s
Office
Engineering
Operations &
Maintenance
Board ofDirectors
General
Counsel
Office
General
Manager
HumanResources
Administrative
Services
Financial
Management
Contracts,
Purchasing &
Materials
Management
Information
Technology
Environmental
Services
Operating Expense
2018-19 2019-20 2019-20
Category Budget Adopted Proposed
Personnel $14,610,000 $14,942,300 $14,073,460
Supplies $1,326,980 $1,327,160 $1,340,720
Professional / Contractual Services $1,736,890 $1,163,120 $1,962,670
Research & Monitoring $0 $0 $0
Repairs & Maintenance $2,300,000 $2,500,000 $2,700,000
Utilities $500,000 $500,000 $500,000
Other $1,663,070 $163,070 $172,430
Cost Allocation ($1,056,440) ($1,056,440) ($1,056,440)
Total $21,080,500 $19,539,210 $19,692,840
BUDGET UPDATE | FISCAL YEAR 2019-20 BUDGET UPDATE | FISCAL YEAR 2019-20
2019-20 BUDGET UPDATE
4342
ENVIRONMENTAL SERVICES DEPARTMENT
Service Description
The Environmental Services Department manages all of OCSD’s environmental monitoring, regulatory, compliance
and reporting elements to ensure that OCSD meets the requirements of federal, state and local regulations for
treated effluent discharge into the ocean, water recycling, air emissions, industrial waste, sewer system operations,
land use controls and biosolids and stormwater management. The Environmental Services Department consists of
three divisions:
Environmental Services Administration provides leadership, support, and management oversight for the
Department in order to accomplish OCSD’s Strategic Plan and departmental annual goals.
Resource Protection fulfills regulatory requirements with proper biosolids management, air quality controls,
federal pretreatment regulations, non-industrial source control, and water reclamation and reuse. This is done in
the most cost effective, practical, and beneficial manner that meets regulatory requirements, protects OCSD’s assets,
employees, and ocean discharge.
Laboratory, Monitoring and Compliance performs sampling, monitoring, analysis, evaluation and
recommendations for collections system, treatment processes, air samples, coastal water quality, marine sediments
and the fish populations within the influence of OCSD’s wastewater discharge. The division also assures compliance
with environmental permits and regulations, and the team works proactively on developing regulations of interest
to OCSD.
Administrative
Services
GeneralManager’sOffice
Engineering
Operations &
Maintenance
Board of
Directors
General
Counsel
Office
General
Manager
Human
Resources
Environmental
Services
Administration
Resource
Protection
Laboratory,
Monitoring &
Compliance
Environmental
Services
Budget Overview
The FY 2019-20 budget for the Environmental Services Department
reflects a decrease of 3.1 percent from the originally adopted budget.
The decrease is primarily attributable to decreases in costs for salaries
and benefits, legal services, audit and accounting services, and other
professional services.
Performance Objectives / Measures
• Manage operating expenditures to within 96 to 100 percent of the
approved budget.
• Ensure that reporting divisions achieve 90 percent of individual
performance objectives.
• Ensure that all environmental compliance reporting requirements are
met on or before required submission dates.
• Conduct audits of all major environmental permits at least once every
three years.
• Complete 100 percent of Safety Scorecard requirements each quarter.
Authorized FTE Positions
Managers ...................................3.00
Supervisors / Professionals ..64.00
Administrative /Clerical ............9.00
Technical .................................16.00
Total .........................................92.00
Staffing Trends
2019-202018-192017-182016-172015-16
0.00
92.0091.00 91.00 91.00
Operating Expense
2018-19 2019-20 2019-20
Category Budget Adopted Proposed
Personnel $13,764,000 $14,082,100 $13,570,410
Supplies $921,220 $903,630 $901,630
Professional / Contractual Services $786,660 $701,660 $653,660
Research & Monitoring $1,061,200 $1,099,600 $1,099,600
Repairs & Maintenance $297,330 $314,970 $314,970
Utilities $369,400 $380,500 $380,500
Other $824,820 $851,820 $846,820
Cost Allocation $23,250 $23,030 $23,030
Total $18,047,880 $18,357,310 $17,790,620
BUDGET UPDATE | FISCAL YEAR 2019-20 BUDGET UPDATE | FISCAL YEAR 2019-20
2019-20 BUDGET UPDATE
4544
ENGINEERING DEPARTMENT
Service Description
The Engineering Department is responsible for the planning and execution of OCSD’s Capital Improvement
Program and the Asset Management Program. The Engineering Department is comprised of five divisions:
Engineering Administration provides management to all Engineering Divisions.
Planning provides a comprehensive Capital Improvement Program for the Sanitation District considering project
capacity requirements, condition of current assets, projected regulatory and level of service changes, and business
opportunities. The Planning Division coordinates the Asset Management Program at the Sanitation District to
deliver the required level of service at the lowest lifecycle cost with an acceptable level of risk. The Division is also
responsible for water resources management, California Environmental Quality Act preparation and review,
annexations, connection permitting, easements, and interagency coordination.
Project Management Office is responsible for the delivery of projects from the preliminary design stage through the
closeout of construction.
Civil and Mechanical Engineering provides civil and mechanical design and construction engineering, quality
control inspection, and other technical support for design and construction projects.
Electrical and Control Systems Engineering provides electrical and control system designs, quality control
inspections, control system programming, commissioning, training, and industrial control system network design
and support for collections and treatment plant facilities.
Administrative
Services
General
Manager’s
Office
Operations &
Maintenance
Board ofDirectors
General
Counsel
Office
General
Manager
HumanResources
Engineering
Administration
Planning
Project
Management
Office
Civil &
Mechanical
Engineering
Electrical &
Control Systems
Engineering
Environmental
Services
Engineering
Budget Overview
The FY 2019-20 budget for the Engineering Department reflects a 71.3
percent increase from the previously adopted budget primarily due to the
inclusion of the maintenance reliability and planning functions, formerly in
the Operations and Maintenance Department.
Performance Objectives / Measures
• Expend minimum 90 percent of project annual Capital Improvement
Program cash flows for FY 2019-20.
• Manage operating expenditures to within 90 to 100 percent of the
approved budget.
• Ensure that reporting divisions achieve 90 percent of individual
performance objectives.
• Prepare and maintain a 20-year agency-wide capital plan coordinating
research, condition assessment, regulatory requirements, changing levels
of science, and projected capacity requirements.
Authorized FTE Positions
Managers ...................................6.00
Supervisors / Professionals ..85.00
Administrative / Clerical .........29.00
Total .......................................120.00
Staffing Trends
2019-202018-192017-182016-172015-16
120.00127.00 116.00 116.00 116.00
Operating Expense
2018-19 2019-20 2019-20
Category Budget Adopted Proposed
Personnel $19,798,600 $20,215,700 $21,404,310
Supplies $451,800 $437,520 $521,790
Professional / Contractual Services $689,700 $695,000 $2,238,615
Research & Monitoring $0 $0 $0
Repairs & Maintenance $117,500 $117,500 $108,000
Utilities $178,100 $183,500 $133,500
Other $7,700 $8,000 $9,020
Cost Allocation ($17,483,180) ($17,789,760) ($17,789,760)
Total $3,760,220 $3,867,460 $6,625,475
BUDGET UPDATE | FISCAL YEAR 2019-20 BUDGET UPDATE | FISCAL YEAR 2019-20
2019-20 BUDGET UPDATE
4746
OPERATIONS AND MAINTENANCE DEPARTMENT
Budget Overview
The FY 2019-20 budget for the Operations and Maintenance Department
reflects a 4.6 percent increase from the previously adopted budget. The
increase is primarily due to increases in costs for deferred maintenance,
treatment and odor control chemicals, and for salaries and benefits, partially
offset by decreases in costs for solids removal, other contractual services, and
engineering services.
Performance Objectives / Measures
• Achieve 100 percent compliance with water, solids, air, and energy
permits.
• Achieve a compliance level of 90 to 100 percent of the O&M performance
measurement targets.
• Manage operating expenditures to within 96 to 100 percent of the
approved budget.
Service Description
The Operations and Maintenance (O&M) Department is responsible for treating wastewater, reusing or disposing
of the treated wastewater and all residuals, providing maintenance support to all treatment facilities, operating and
maintaining the sanitary sewer system pipeline and pumping facilities, and for providing fleet management services.
The Department consists of seven divisions:
Operations and Maintenance Administration provides leadership and oversight to all O&M divisions.
Collection Facilities Operations and Maintenance operates and maintains the regional facilities which include
gravity sewers and pumping facilities.
Fleet Services provides fleet and heavy equipment services and motor pool management to all OCSD staff.
Plant No. 1 and Plant No. 2 Operations are responsible for the daily management of the wastewater treatment
processes, sludge and biosolids treatment and loading processes, power generation, and odor and air quality
control processes. Activities also include ensuring compliance with all regulatory permits, support of the Capital
Improvement Program, and coordination of construction and maintenance work. Plant No. 1 Operations also
ensures the delivery of specification water to the Groundwater Replenishment System.
Plant No. 1 and Plant No. 2 Maintenance are responsible for civil, electrical, facilities, instrumentation and
mechanical maintenance of the two treatment plants and pump stations. Plant No. 1 Maintenance also includes
planning for all maintenance activities as well as reliability engineering for both Plants and the Collections System,
and oversees the Civil Assets Maintenance Program (CAMP).
Administrative
Services
General
Manager’s
Office
Board of
Directors
General
Counsel
Office
General
Manager
HumanResources
Operations &
Maintenance
Administration
Collection
Facilities
Operations &
Maintenance
Fleet Services
Plant No. 1
Operations
Plant No. 2
Operations
Plant No. 1
Maintenance
Plant No. 2
Maintenance
Environmental
Services
Engineering
Operations &
Maintenance Authorized FTE Positions
Managers ...................................5.00
Supervisors /Professionals ...60.00
Administrative /Clerical ............6.00
Technical ...................................1.00
Operations & Maintenance ..213.00
Total .......................................285.00
Staffing Trends
2019-202018-192017-182016-172015-16
285.00294.00 279.00 287.00 288.00
Operating Expense
2018-19 2019-20 2019-20
Category Budget Adopted Proposed
Personnel $40,865,600 $41,863,900 $42,029,560
Supplies $15,293,240 $18,303,410 $20,432,731
Professional / Contractual Services $23,924,250 $20,440,640 $18,774,299
Research & Monitoring $0 $0 $0
Repairs & Maintenance $18,997,480 $16,385,740 $20,343,622
Utilities $6,282,300 $7,854,600 $8,126,310
Other $120,660 $153,390 $144,850
Cost Allocation ($103,360) ($104,740) ($104,740)
Total $105,380,170 $104,896,940 $109,746,632
BUDGET UPDATE | FISCAL YEAR 2019-2048
A - 1
Appendix
Cash Flow Projection
A – 2
Orange County Sanitation District Consolidated Cash Flow Projections
Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary
Ref Description 19-20 20-21 21-22 22-23 23-24 24-25
Revenues:
1 General User Fees 298,144,000 302,790,000 307,461,000 312,156,000 320,617,000 329,125,000
2 Permitted User Fees 9,917,000 10,034,000 10,151,000 10,268,000 10,502,000 10,736,000
3 IRWD Assessments 17,658,560 21,891,050 19,304,190 18,785,450 19,496,280 20,385,140
4 SAWPA Assessments 2,654,000 2,760,000 2,870,000 2,985,000 3,104,000 3,228,000
5 Property Taxes 96,354,000 99,967,000 103,716,000 107,605,000 111,371,000 115,269,000
6 New COP Issues - - - - - -
7 Interest Revenues 6,447,000 6,063,000 6,226,000 5,872,000 5,399,000 7,501,000
8 Capital Facilities Capacity Charges 18,000,000 18,612,000 18,673,000 19,441,000 19,517,000 19,597,000
9 Other Revenues 18,880,498 26,866,640 28,019,005 36,652,981 18,505,375 15,795,381
10 Revenues 468,055,058 488,983,690 496,420,195 513,765,431 508,511,655 521,636,521
Requirements:
11 Oper & Mtce Exp (4.0% yr)168,216,487 164,816,541 171,409,000 178,265,000 185,396,000 192,812,000
12 Capital Improvement Program (CIP)176,325,000 209,328,000 312,443,000 333,539,000 322,822,000 293,980,000
13 Less: CIP Savings & Deferrals (22,997,569) (24,759,882) (34,039,257) (29,748,929) (22,387,544) (14,548,981)
14 Allocation for Future Rehabilitation/R 200,000,000 - - - - -
15 COP Service (5.0%, 30 yrs)76,775,000 72,838,000 72,211,000 72,206,000 72,212,000 72,206,000
16 Reduction of Long-Term Liabilites - - - - - -
17 Other Requirements 7,530,000 6,030,000 2,530,000 2,530,000 2,530,000 2,530,000
18 Requirements 605,848,918 428,252,659 524,553,743 556,791,071 560,572,456 546,979,019
19 Revenues-Requirements (137,793,860) 60,731,031 (28,133,548) (43,025,640) (52,060,801) (25,342,498)
Accumulated Funds:
20 Beginning of Year 716,802,309 579,008,449 639,739,480 611,605,932 568,580,292 516,519,491
21 End of Year 579,008,449 639,739,480 611,605,932 568,580,292 516,519,491 491,176,993
22 Consolidated Reserve Policy 529,777,000 522,032,000 523,366,000 525,208,000 516,105,000 491,025,000
23 Over (Under) Reserve Policy*49,231,449 117,707,480 88,239,932 43,372,292 414,491 151,993
Sewer Service User Fees:
24 Avg SFR Annual User Fee $339 $343 $347 $351 $359 $367
25 Percentage Change 1.19%1.18%1.17%1.15%2.28%2.23%
26 Equivalent Dwelling Units 923,730 926,501 929,281 932,069 934,865 937,670
27 SFR Connection Fee $4,601 $4,973 $5,346 $5,719 $5,736 $5,753
28 Outstanding COPs $940,050,000 $909,620,000 $876,655,000 $840,715,000 $803,320,000 $764,285,000
Reserve Policy
29 50% Next Year Operating 84,108,000 82,408,000 85,705,000 89,133,000 92,698,000 96,406,000
30 10% Next Year Operating 16,822,000 16,482,000 17,141,000 17,827,000 18,540,000 19,281,000
31 100% Next Year AUG COP Svc.76,775,000 72,838,000 72,211,000 72,206,000 72,212,000 72,206,000
32 50% average ten-year CIP Bal.137,302,000 137,302,000 137,302,000 137,302,000 137,302,000 137,302,000
33 DSR @ 10% Outstanding COPs 94,005,000 90,962,000 87,666,000 84,072,000 80,332,000 76,429,000
34 SFI @ $57mm 57,000,000 57,000,000 57,000,000 57,000,000 57,000,000 57,000,000
35 Repl & Refurb @ 2%/yr 63,765,000 65,040,000 66,341,000 67,668,000 69,021,000 70,401,000
36 *Reserve Reduction (in accordance with Board action allowing a $40M reduction to total res - (11,000,000) (38,000,000)
37 Total 529,777,000 522,032,000 523,366,000 525,208,000 516,105,000 491,025,000
COP Ratios
38 Sr Lien Coverge, Min 1.25 3.67 4.19 4.24 4.38 4.20 4.28
2019-20 Budget Update
A - 3
Orange County Sanitation District Consolidated Cash Flow Projections
Preliminary Preliminary Preliminary Preliminary 10-Year
Ref Description 25-26 26-27 27-28 28-29 Total
Revenues:
1 General User Fees 337,681,000 346,285,000 354,938,000 363,640,000 3,272,837,000
2 Permitted User Fees 10,970,000 11,204,000 11,438,000 11,672,000 106,892,000
3 IRWD Assessments 19,727,490 19,245,870 18,835,800 18,420,770 193,750,600
4 SAWPA Assessments 3,357,000 3,491,000 3,630,000 3,776,000 31,855,000
5 Property Taxes 118,727,000 122,289,000 125,958,000 129,737,000 1,130,993,000
6 New COP Issues - - - - -
7 Interest Revenues 7,553,000 8,247,000 9,322,000 8,786,000 71,416,000
8 Capital Facilities Capacity Charges 19,673,000 19,749,000 19,830,000 19,906,000 192,998,000
9 Other Revenues 16,124,000 16,464,000 16,813,000 17,169,000 211,289,880 10 Revenues 533,812,490 546,974,870 560,764,800 573,106,770 5,212,031,480
Requirements:
11 Oper & Mtce Exp (4.0% yr)200,524,000 208,545,000 216,887,000 225,562,000 1,912,433,028
12 Capital Improvement Program (CIP)233,136,830 210,763,850 188,966,888 130,544,028 2,411,848,596
13 Less: CIP Savings & Deferrals (6,904,105) (4,155,277) (3,719,338) (2,550,881) (165,811,763)
14 Allocation for Future Rehabilitation/Rep - - - 300,000,000 500,000,000
15 COP Service 72,210,000 68,414,000 72,563,000 72,557,000 724,192,000
16 Reduction of Long-Term Liabilites - - - - -
17 Other Requirements 2,530,000 2,530,000 2,530,000 2,530,000 33,800,000
18 Requirements 501,496,725 486,097,573 477,227,550 728,642,147 5,416,461,861
19 Revenues-Requirements 32,315,765 60,877,297 83,537,250 (155,535,377) (204,430,381)
Accumulated Funds:
20 Beginning of Year 491,176,993 523,492,758 584,370,055 667,907,305 716,802,309
21 End of Year 523,492,758 584,370,055 667,907,305 512,371,928 512,371,928
22 Consolidated Reserve Policy 513,250,000 510,138,000 514,617,000 513,681,001 513,681,001
23 Over (Under) Reserve Policy*10,242,758 74,232,055 153,290,305 (1,309,073) (1,309,073)
Sewer Service User Fees:
24 Avg SFR Annual User Fee $375 $383 $391 $399
25 Percentage Change 2.18%2.13%2.09%2.05%
26 Equivalent Dwelling Units 940,483 943,304 946,134 948,972
27 SFR Connection Fee $5,770 $5,787 $5,804 $5,821
28 Outstanding COPs $546,150,000 $490,485,000 $429,090,000 $352,805,000
Reserve Policy
29 50% Next Year Operating 100,262,000 104,273,000 108,444,000 112,781,000
30 10% Next Year Operating 20,052,000 20,855,000 21,689,000 22,556,000
31 100% Next Year AUG COP Svc.72,210,000 68,414,000 72,563,000 72,557,000
32 50% average ten-year CIP Bal.137,302,000 137,302,000 137,302,000 137,302,000
33 DSR @ 10% Outstanding COPs 54,615,000 49,049,000 42,909,000 35,281,000
34 SFI @ $57mm 57,000,000 57,000,000 57,000,000 57,000,001
35 Repl & Refurb @ 2%/yr 71,809,000 73,245,000 74,710,000 76,204,000
36 *Reserve Reduction - - - -
37 Total 513,250,000 510,138,000 514,617,000 513,681,001
COP Ratios
38 Sr Lien Coverge, Min 1.25 4.34 4.66 4.47 4.52
Approved Outlay for FY 2019-20 $148,997,415
New Projects 2,240,522 1.5%
Projects Budget Increases 36,735,937 24.6%
Projects Budget Decreases (11,853,793)(8.0%)
Projects Cancellation/Closures (242,828)(0.1%)
Changes to Capital Equipment 448,700 0.3%
Proposed Outlay for FY 2019-20 176,325,953 18.3%
Less: CIP Savings & Deferrals ($23,000,000)(15.4%)
Proposed Net CIP Outlay $$153,325,953 2.9%
FY 2018-19 Approved Total CIP Budget Authority $4,010,422,700
New Projects 92,166,000 2.3%
Projects Budget Increases 53,238,000 1.3%
Projects Budget Decreases (172,414,000)(4.3%)
Projects Cancellation/Closures (17,579,000)(0.4%)
Changes to Capital Equipment 133,453 0.0%
FY 2019-20 Proposed Total CIP Budget Authority $3,965,967,153 (1.1%)
% Change
A - 4
Capital Improvement Program Summary
Item
Rehabilitation
and
Replacement
Strategic
Initiatives
Additional
Capacity Regulatory Total
Budget
Collections Facilities $18,130,021 $5,737,433 $14,315,609 $4,245,218 $42,428,281
Solids Handling & Digestion 13,102,823 641,684 3,390,597 -17,135,104
Support Facilities 16,394,937 6,061,355 828,201 1,903,660 25,188,153
Utility Systems 9,414,145 ---9,414,145
Liquid Treatment:
Ocean Outfall Systems 6,715,680 20,147,040 --26,862,720
Headworks 7,870,442 4,159,614 --12,030,056
Primary Treatment 9,426,905 -240,168 -9,667,073
Secondary Treatment 6,052,933 ---6,052,933
Liquid Treatment Subtotal 30,065,960 24,306,654 240,168 -54,612,782
Other:
Information Management Systems 4,713,469 3,234,941 -493,346 8,441,756
Process Related Special Projects ---7,701,072 7,701,072
Strategic & Master Planning 2,224,848 1,613,131 556,212 1,390,531 5,784,722
Equipment 730,825 730,825 730,825 730,825 2,923,300
Research -2,351,548 --2,351,548
Water Management Projects -182,157 --182,157
Others 44,087 118,846 --162,933
Other Subtotal 7,713,229 8,231,448 1,287,037 10,315,774 27,547,488
Grand Total $94,821,115 $44,978,574 $20,061,612 $16,464,652 $176,325,953
Less: CIP Savings & Deferrals ($23,000,000)
Proposed Net CIP Outlay $153,325,953
Project Summary FY 2019-20
A - 5
2019-20 Budget Update
A - 6
Capital Improvement Expenditure Graphs
Collections Facilities
Raitt & Bristol Street Sewer Extension 1-101 $7,100,000 $242,828 Cancelled
Edinger Bolsa Chica Trunk Impr.11-25 5,159,000 5,159,000 Not Started
Edinger Pump Station Repl.11-33 14,100,000 14,100,000 Not Started
Slater Avenue Pump Station Rehab 11-34 25,300,000 25,300,000 Not Started
SARI Rock Stabilizers Removal 2-41-8 6,860,000 6,860,000 4,687,312 4,065,703 Started
Taft Branch Impr.2-49 2,130,000 8,130,000 105,676 Not Started
Newhope - Placentia Trunk Grade Separation Repl.2-65 4,300,000 4,300,000 71,875 Started
Newhope-Placentia Trunk Repl.2-72 112,000,000 112,000,000 19,302,417 22,653,359 Started
Yorba Linda Pump Station Abandonment 2-73 10,800,000 10,800,000 Not Started
Tustin Rose OCTA Grade Separation 2-76 455,000 Closed
Beach Trunk/Knott Interceptor Sewer Relief 3-60 136,000,000 21,000,000 Not Started
Westminster Blvd Force Main Repl.3-62 54,000,000 54,000,000 3,002,218 2,534,429 Started
Rehab of Western Regional Sewers 3-64 202,000,000 202,000,000 6,656,821 9,563,225 Started
Interstate 405 Widening Project Impacts on OCSD Sewers 3-66 528,000 528,000 60,468 107,640 Started
Seal Beach Pump Station Repl.3-67 78,900,000 78,900,000 1,214,803 578,588 Started
Los Alamitos Sub-Trunk Extension 3-68 66,000,000 66,000,000 Not Started
Newport Force Main Rehab 5-60 59,668,000 59,668,000 Started
Crystal Cove Pump Station Upgrade & Rehab 5-66 17,900,000 17,900,000 Not Started
Bay Bridge Pump Station Repl.5-67 64,000,000 64,000,000 3,622,954 1,039,692 Started
Newport Beach Pump Stations Pressurization Impr.5-68 4,066,000 4,066,000 160,202 148,187 Started
District 6 Trunk Sewer Relief 6-17 7,965,000 7,965,000 22,862 465,049 Started
Gisler - Red Hill Trunk Impr. - Reach B 7-37 25,213,000 25,213,000 Started
MacArthur Pump Station Rehab 7-63 13,100,000 9,151,000 Not Started
Main Street Pump Station Rehab 7-64 60,400,000 40,660,000 Not Started
Gisler - Red Hill Interceptor Rehab 7-65 14,800,000 14,800,000 211,211 211,211 Not Started
Sunflower & Red Hill Interceptor Repairs 7-66 5,500,000 390,189 New
Main Street Pump Repl. & Force Main Rehab 7-67 17,160,000 493,458 New
MacArthur Force Main Impr.7-68 2,385,000 New
Bay Bridge Pumpstation & Force Mains Rehab Study SP-178 725,000 Closed
Collections Facilities Total Budget 993,469,000 877,545,000 39,184,096 42,428,281
A - 7
2019-20 Budget Update
Summary of Capital Requirement - Collection System Improvement Projects
Project
Number
Original
Total
Project
Budget
Revised
Total
Project
Budget
Approved
2019-20
Outlay
Proposed
2019-20
Outlay
Project
Status
Ocean Outfall Systems
Ocean Outfall System Rehab J-117 166,000,000 166,000,000 18,129,112 26,862,720 Started
Ocean Outfall Systems Total 166,000,000 166,000,000 18,129,112 26,862,720
Information Management Systems
Process Control Systems Upgrades J-120 46,000,000 46,000,000 239,864 578,902 Not started
Project Mgmt. Information System J-128 4,000,000 4,000,000 1,454,647 1,860,070 Started
Information Technology Capital Program M-MC-IT 10,000,000 10,000,000 707,833 2,749,741 Started
SCADA System & Network Upgrades P2-107 5,000,000 5,000,000 32,497 Started
EAM Software & Process Implementation SP-100 7,500,000 7,500,000 1,178,517 976,100 Started
Geographic Information System SP-15 4,568,000 4,568,000 631,223 493,346 Started
Process Control Systems Upgrades Study SP-196 3,554,000 3,554,000 1,169,992 1,783,597 Started
Information Management Systems Total 80,622,000 80,622,000 5,414,573 8,441,756
Utility Systems
UPS System Upgrades J-121 4,700,000 4,700,000 Not started
Digester Gas Facilities Rehab J-124 96,500,000 96,500,000 3,627,156 3,957,325 Started
Natural Gas Pipelines Repl. at P1 & P2 J-127 1,310,000 1,310,000 359,943 283,122 Started
Electrical Power Distribution System Impr.J-98 34,608,000 30,000,000 1,393,714 851,397 Started
Central Generation Rehab at P1 P1-127 87,000,000 87,000,000 Not started
Uninterruptable Power Supply Impr. at P1 P1-132 4,800,000 7,000,000 375,534 270,355 Started
Consolidated Demolition & Utility Impr. at P2 P2-110 31,000,000 31,000,000 3,060,742 3,545,396 Started
Central Generation Rehab at P2 P2-119 114,000,000 114,000,000 Not started
Substation Repl. at P2 P2-134 40,261,000 506,550 Not started
Utility Systems Total 373,918,000 411,771,000 8,817,089 9,414,145
Process Related Special Projects
Safety Impr. Program J-126 19,000,000 19,000,000 4,431,775 7,701,072 Started
Process Related Special Projects Total 19,000,000 19,000,000 4,431,775 7,701,072
Support Facilities
18350 Mt. Langley St. Building Purchase & Improvement J-131 11,000,000 10,200,000 435,786 155,080 Started
Laboratory Rehab at Plant No 1 J-133 15,000,000 New
Small Construction Projects Program M-FE 55,000,000 53,250,000 7,945,406 8,282,010 Started
Operations & Maintenance Capital Program M-SM-CAP 15,622,000 15,622,000 2,033,358 5,061,149 Started
Title 24 Access Compliance & Building Rehab Project P1-115 18,400,000 18,400,000 188,569 1,075,459 Started
Headquarters Complex P1-128 179,067,000 167,500,000 9,653,508 9,765,435 Started
South Perimeter Security & Utility Impr. at P1 P1-134 10,500,000 781,427 New
P2 Warehouse Relocation P2-126 9,800,000 9,800,000 195,424 67,593 Not started
A - 8
Summary of Capital Requirements
Summary of Capital Requirement - Treatment System Improvement Projects
Project
Number
Original
Total
Project
Budget
Revised
Total
Project
Budget
Approved
2019-20
Outlay
Proposed
2019-20
Outlay
Project
Status
Support Facilities
P2 Collections Yard Relocation P2-127 1,840,000 1,840,000 Not started
Support Facilities Total 290,729,000 302,112,000 20,452,051 25,188,153
Water Management Projects
GWRS Final Expansion Coordination J-36-2 1,132,000 1,132,000 139,973 182,157 Started
Water Management Projects Total 1,132,000 1,132,000 139,973 182,157
Research
Research Program M-RESEARCH 8,500,000 8,500,000 1,315,161 2,351,548 Started
Research Total 8,500,000 8,500,000 1,315,161 2,351,548
Strategic & Master Planning
Planning Studies Program M-STUDIES 28,652,000 28,652,000 2,353,667 5,562,122 Started
Climate Resiliency Study SP-152 590,000 878,000 349,222 222,600 Started
Strategic & Master Planning Total 29,242,000 29,530,000 2,702,889 5,784,722
Solids Handling & Digestion
Digester Rehab at P1 P1-100 66,000,000 66,000,000 Started
Sludge Dewatering & Odor Control at P1 P1-101 199,500,000 199,500,000 4,595,954 6,781,194 Started
Digester Ferric Chloride Piping Repl. at P1 P1-135 1,360,000 68,898 New
Interim Food Waste Receiving Facility P2-124 6,300,000 6,300,000 412,370 641,684 Started
TPAD Digester Facility at P2 P2-128 405,100,000 405,100,000 906,058 874,204 Not started
Digester P, Q, R, & S Repl.P2-129 166,000,000 166,000,000 Not started
P2 Digester Facilities Rehab P2-91-1 20,000,000 15,500,000 2,843,022 2,770,904 Started
Sludge Dewatering & Odor Control at P2 P2-92 90,477,000 90,477,000 6,793,505 5,998,220 Started
Solids Handling & Digestion Total 953,377,000 950,237,000 15,550,909 17,135,104
Headworks
Headworks Rehab at P1 P1-105 370,000,000 406,000,000 7,505,074 7,870,442 Started
Trunk Line Odor Control Impr.P1-123 9,299,000 Closed
Headworks Modifications at P2 for GWRS Final Expansion P2-122 54,000,000 54,000,000 2,300,703 4,159,614 Started
Headworks Total 433,299,000 460,000,000 9,805,777 12,030,056
Primary Treatment
Primary Clarifiers Repl.s & Impr. at P1 P1-126 106,000,000 106,000,000 Started
Primary Sedimentation Basins No. 6-31 Reliability Impr. at P1 P1-133 21,500,000 12,000,000 902,815 480,336 Started
B/C-Side Primary Clarifiers Rehab at P2 P2-133 249,560,000 249,560,000 Not started
Primary Treatment Rehab at P2 P2-98 245,000,000 245,000,000 9,000,675 9,186,737 Started
Primary Treatment Total 622,060,000 612,560,000 9,903,490 9,667,073
A - 9
2019-20 Budget Update
Summary of Capital Requirement - Treatment System Improvement Projects
Project
Number
Original
Total
Project
Budget
Revised
Total
Project
Budget
Approved
2019-20
Outlay
Proposed
2019-20
Outlay
Project
Status
Secondary Treatment
Return Activated Sludge Piping Repl. at Activated Sludge P1 P1-129 7,900,000 9,000,000 5,970,017 2,803,867 Started
Activated Sludge Aeration Basin Deck Repair at P2 P2-118 2,800,000 1,800,000 105,925 14,671 Started
Return Activated Sludge Piping Repl. at P2 P2-123 12,750,000 20,000,000 4,373,239 3,234,395 Started
Secondary Treatment Total 23,450,000 30,800,000 10,449,181 6,052,933
Others
Banning Gate Relocation & Grading at P2 P2-120 2,931,000 2,931,000 7,241 Not started
Perimeter Screening at P2 P2-125 2,800,000 2,800,000 219,498 44,087 Started
Capital Improvement Program Mgmt. Services SP-195 300,000 700,000 118,846 Started
Others Total 6,031,000 6,431,000 226,739 162,933
Total Treatment and Disposal Projects 3,007,360,000 3,078,695,000 107,338,719 130,974,372
Total Collections Facilities 993,469,000 877,545,000 39,184,096 42,428,281
Capital Equipment Purchases 9,593,700 9,727,153 2,474,600 2,923,300
Total $ 4,010,422,700 $3,965,967,153 $148,997,415 $176,325,953
Less: CIP Savings & Deferrals ($23,000,000)
Proposed Net CIP Outlay $153,325,953
A - 10
Summary of Capital Requirements
Summary of Capital Requirement - Treatment System Improvement Projects
Project
Number
Original
Total
Project
Budget
Revised
Total
Project
Budget
Approved
2019-20
Outlay
Proposed
2019-20
Outlay
Project
Status
An assessment of the plastic lining was performed on the upper reaches of the Sunflower and Red
Hill Interceptors. The liner has failed in many locations allowing corrosion of the concrete substrate
which could lead to structural failure. There is also additional concrete corrosion below the 270
degree plastic lining due to the flow depth being lower than the liner.
The project's construction cost is $3,280,000. This project will not have an impact on operational
budgets.
Description
The project will repair PVC liner failures within a 6,000 foot section of the Sunflower and Red Hill
Interceptors. This will require live entry and temporary diversions and bypass pumping. Also,
hydraulic adjustments will be made to artificially keep the low flows above the area of exposed
concrete at the lower section of the pipe.
Justification
Project Name & Number
Project Category $5,500,000Collections Facilities
Sunflower and Red Hill Interceptor Repairs - 7-66
Project Budget:
The pumps that serve the west side of the pump station were installed in 1985 and are approaching
the end of their useful life. The rehabilitation of the dual Baker forcemains is necessary due to
corrosive gas migration into the forcemain structures through drain lines from the wet wells. The
accumulation of gas in the piping has caused extensive corrosion to the metal components.
The project's construction cost is $10,030,000. This project will not have an impact on operational
budgets.
Description
The Main Street Pump Station is located on Main Street north of the John Wayne Airport, in the City
of Irvine. The flow from the pumps on the west side of the pump station is conveyed through
approximately 800 feet of 30-inch vitrified clay pipe (Sunflower) forcemain which was constructed in
1985. The flow from the pumps on the east side of the pump station is conveyed through dual 42-
inch Baker forcemains that are approximately 6,000 feet in length. This project includes
rehabilitation of the dual 42-inch forcemains and supporting structures. The project will also
replace five the original pumps and supporting piping.
Justification
Project Name & Number
Project Category $17,160,000Collections Facilities
Main Street Pump Replacement and Force Main Rehabilitation - 7-67
Project Budget:
CIP New Project Descriptions
A - 11
2019-20 Budget Update
The existing forcemain was constructed in 1960 and is nearing the end of its useful life. The pump
station is served by a single forcemain which makes condition assessment and maintenance
difficult. The construction of a parallel forcemain will increase reliability and lessen the impact on
the surrounding community during routine maintenance and assessment efforts.
The project's construction cost is $1,390,000. This project will not have an impact on operational
budgets.
Description
The MacArthur Pump Station is located west of MacArthur Boulevard and north of Jamboree Road
in the City of Newport Beach. This project includes construction of approximately 2,100 feet of new
forcemain and rehabilitation of the existing forcemain.
Justification
Project Name & Number
Project Category $2,385,000Collections Facilities
MacArthur Force Main Improvements - 7-68
Project Budget:
The building was originally constructed without receiving an occupancy permit from the City of
Fountain Valley. At the time, non-treatment process facilities at Plant No. 1 were not subject to
building code and permitting requirements. In 1992, an agreement was executed between the City
of Fountain Valley and OCSD that delineated the responsibilities of the City and OCSD as to which
non-treatment process facilities would require permits. The Laboratory's roof and ventilation
systems are in constant need of repair and are not meeting the requirements to support the testing
equipment.
The project's construction cost is $11,480,000. This project will not have an impact on operational
budgets.
Description
This project will rehabilitate the Laboratory Building to be in compliance with current building codes
and allow the building to be permitted by the City of Fountain Valley. The rehabilitation will also
include modifications to improve lab testing abilities, operation functionality and meet changing
business needs.
Justification
Project Name & Number
Project Category $15,000,000Support Facilities
Laboratory Rehabilitation at Plant No 1 - J-133
Project Budget:
A - 12
CIP New Project Descriptions
Security improvements along Garfield Avenue and Ward Street will provide improved security
monitoring capability for OCSD security staff. New concrete masonry unit wall on Ward street will
provide enhanced protection against intruders cutting through the chain link fence. The water line
work is required in order to sever the direct connection from Plant No. 1 to the City of Fountain
Valley water main, alleviating any cross-connection concerns.
The project's construction cost is $5,990,000. This project will not have an impact on operational
budgets.
Description
This project will replace the perimeter chain link fence at Plant No. 1 along Ward Street from
Garfield Avenue to approximately Falcon Avenue, the southerly terminus of the OCWD security wall
with an 8-foot tall split-face concrete masonry wall. Two motorized vehicle gates (Employee and
Contractor) on Garfield Avenue will be replaced and a permanent Guard House will be constructed.
Interior perimeter lighting, video surveillance, and electronic security systems along the Southerly
and Westerly boundary of Plant 1 will also be constructed. The project will disconnect two water
lines to the City's main in Garfield Avenue and provide two new connections to existing water lines
within Plant 1. Tree removal, landscaping and minor site improvements are also part of the project.
Justification
Project Name & Number
Project Category $10,500,000Support Facilities
South Perimeter Security and Utility Improvements at Plant No.1 - P1-134
Project Budget:
The purpose of this project is to replace the aging digester ferric chloride piping, comply with the
South Coast Air Quality permit conditions, and mitigate the struvite formation in the digesters and
associated process equipment. The existing digester ferric chloride pipe runs have failed and
required temporary repairs in numerous locations due to age and partial blockage, warranting
replacement of the piping.
The project's construction cost is $670,000. This project will not have an impact on operational
budgets.
Description
This project will replace the digester ferric chloride piping, valves and appurtenances from the
Headworks Rehabilitation at Plant 1 Project boundary to its point of connection with the digesters.
This project will also include demolition of the existing piping being replaced. Both ferric chloride
facilities, digester and Chemically Enhanced Primary Treatment (CEPT), will be relocated within the
boundary of the headworks area under the project Headworks Rehabilitation at Plant 1. This project
will be closely coordinated with the Headworks Rehabilitation Project.
Justification
Project Name & Number
Project Category $1,360,000Solids Handling & Digestion
Digester Ferric Chloride Piping Replacement at Plant No. 1 - P1-135
Project Budget:
A - 13
2019-20 Budget Update
OCSD’s existing substation at Plant No. 2 currently relies on a single incoming 66-kV line and a
single 66-kV to 12.47-kV transformer. A failure in the existing incoming 66-kV line or in the
transformer, could result in an extended outage to utility power.
The project's construction cost is $24,170,000. The impacts to operational budgets have not yet
been determined.
Description
This project will add a second 66-kV incoming distribution line to OCSD Plant No. 2 and construct a
new 66-kv to 12.47-kv substation. The new substation will include two incoming 66-kv lines and two
66-kV to 12.47-kV transformer.
Justification
Project Name & Number
Project Category $40,261,000Utility Systems
Substation Replacement at Plant No. 2 - P2-134
Project Budget:
A - 14
CIP New Project Descriptions
2019-20 Budget Update
A - 15
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Capital Equipment Budget Summary
A - 16
Capital Equipment Budget 2019-20
Department
Trucks &
Vehicles
09410000
Other Mobile
Eq
09410001
Machine Eq
& Tools
09410002
Comm
Equipment
09410003
Information Technology -$ -$ -$ -$
Laboratory, Monitoring and Compliance - - - -
Electrical & Control Systems Engineering - - - -
Collection Facilities O&M - - - -
Fleet Services 909,400 755,100 - -
Plant No. 1 Operations - - - -
Plant No. 1 Maintenance - - 65,400 -
Plant No. 2 Maintenance - - 7,800 -
Total Proposed Capital Equipment 909,400$ 755,100$ 73,200$ -$
2019-20 Budget Update
A - 17
Capital Equipment Budget 2019-20
Department
Instr / Test
Equipment
09410004
Safety &
Traffic Eq
09410005
Office Fix
& Eq
09410006
Computer
Equipment
09410007
2019-20
Proposed
Budget
Information Technology -$ -$ -$ 165,500$ 165,500$
Laboratory, Monitoring and Compliance 639,200 - - - 639,200
Electrical & Control Systems Engineering 43,200 - - - 43,200
Collection Facilities O&M 50,900 - - - 50,900
Fleet Services - - - - 1,664,500
Plant No. 1 Operations 23,200 - - - 23,200
Plant No. 1 Maintenance 158,000 - - - 223,400
Plant No. 2 Maintenance 105,600 - - - 113,400
Total Proposed Capital Equipment 1,020,100$ -$ -$ 165,500$ 2,923,300$
Capital Equipment Budget Detail
A - 18
Capital Equipment Budget Detail
Division Equipment Type
Proposed
Equip. Budget
Skysite 65" Smart Screen 50,000
Nimble Storage Array 105,500
Spectro Scientific - Support Agreement 10,000
Total 165,500$
Two (2) Acoustic Doppler Current Profiler 81,200
Six (6) Ocean Acidification and Hypoxia Sensor Packages 134,000
Triple Quadrupole Gas Chromatography Mass Spectrometry Systems 385,000
Two (2) Precision BOD Refrigerated Incubator 24,000
Two (2) HACH Refrigerated Auto-Sampler 15,000
Total 639,200$
Two (2) PLC Test Units 43,200
Total 43,200$
Two (2) Trimble R2 GNSS Receiver 50,900
Total 50,900$
Sedan 28,100
Nine (9) Light Trucks 380,800
Five (5) Heavy Trucks 500,500
21 Electric Carts 270,500
500 KW Trailer-Mounted Generator 325,000
Trailer Mounted, Tier-4, Sound Enclosed Pumps (2)100,600
Whisperwatt 25kW Generator 33,000
Utility Carts (2) (Pending New Program Approval)26,000
Total 1,664,500$
Two (2) Hydrogen Sulfide Analyzers 23,200
Total 23,200$
250 - Information Technology
630 - Laboratory, Monitoring, and Compliance
770 - Electrical & Control Systems Engineering
822 - Fleet Services
820 - Collection Facilities O&M
830 - Plant No. 1 Operations
2019-20 Budget Update
A - 19
Capital Equipment Budget Detail
Division Equipment Type
Proposed
Equip. Budget
Schenck Balancer CAB820 Control Upgrade 44,300
Cold Saw 13,000
Gooseneck Dies for Cincinnati Press Brake 8,100
Portable Vibration Sensor Calibrator 23,000
Beamex Multi-Calibrator 27,300
Beamex FB Field Temperature Block (2)15,300
Megger Microohm Tester MOM2 32,500
Megger Primary Injector Tester SPI225 22,500
CBS Arcsafe Remote Racking Device 37,400
Total 223,400$
DB500 Dustless Blaster 7,800
Two (2) Fluke 729 Automatic Pressure Calibrator 18,900
Megger Trax 220 86,700
Total 113,400$
Total Proposed 2019-20 Capital Equipment Budget 2,923,300$
870 - Plant No. 1 Maintenance
880 - Plant No. 2 Maintenance
Levels of Service
A - 20
Providing Exceptional Customer Service Levels of Service
OCSD will provide reliable, responsive and affordable services in line
with customer needs and expectations.
FY 18-19
Mid-Year
Results
Level of Service
Target
Treatment plants odor complaint response within 1 hour 100% 100%
Collection System odor complaint response within 1 working day 100% 100%
Number of odor incidents/events: Reclamation Plant No. 1 under normal
operating conditions 0 Zero (0)
Number of odor incidents/events: Treatment Plant No. 2 under normal
operating conditions 0 Zero (0)
Number of odor incidents/events: Collections System 6 <=12 per year
Respond to public complaints or inquiries regarding construction projects
within 1 working day 100% 100%
Respond to all biosolids contractor violations within a week of violation notice 100% 100%
Managing and Protecting the Public’s Funds Levels of Service
OCSD will continually seek efficiencies to ensure that the public’s
money is wisely spent.
FY 18-19
Mid-Year
Results
Level of Service
Target
Annual user fees sufficient to cover all O&M requirements 100% 100%
Actual collection, treatment, and disposal costs per million gallons 4% <=10% of budget
Maintain AAA Bond Rating 100% 100%
2019-20 Budget Update
A - 21
Protecting Public Health & the Environment Levels of Service
OCSD will protect public health and the environment utilizing all practical
and effective means for wastewater, energy, and solids resource
recovery.
FY 18-19
Mid-Year
Results
Level of Service
Target
Accept dry weather runoff diversion flows without imposing fees 1.03 mgd Up to 10 mgd
Air emissions health risk to community and employees, per one million
people (for each treatment plant) 3 <10
No Notices of Violation (NOVs) with air, land, and water permits 0 0
Respond to collection system spills within 1 hour 100% 100%
Sanitary sewer spills per 100 miles 0.0 <2.1 per industry
average
Contain sanitary sewer spills within 5 hours 100% 100%
Meet secondary treatment standards BOD-C (mg/L) 4.0 <=25
Meet secondary treatment standards TSS (mg/L) 6.0 <=30
Frequency of unplanned use of emergency one mile (78-inch diameter)
outfall (per dry weather) 0 0
Tons of biosolids to landfill through 2019 peak production period 0 < 100 tons per
day
Thirty-day geometric mean of total coliform bacteria in effluent after initial
dilution of 250:1 (mpn) 570 < 1,000 mpn
Compliance with core industrial pretreatment requirements 99% 100%
Stakeholder Understanding and Support Levels of Service
OCSD will communicate our mission and strategies with those we serve
and all other stakeholders.
FY 18-19
Mid-Year
Results
Level of Service
Target
Meet GWRS specification requirements for Plant 1
secondary effluent 3.3 <5 NTU
Provide all specification effluent available to the Groundwater Replenishment
System to full production of purified water. 100% 100%
Levels of Service
A - 22
Organizational Effectiveness Levels of Service
OCSD will create the best possible workforce in terms of safety,
productivity, customer service, and training.
FY 18-19
Mid-Year
Results
Level of Service
Target
Training hours per employee 52 >=45 per year
Employee injury incident rate – accidents per 100 employees 1.1 <=4.4
Industry Avg.
Meet mandatory OSHA training requirements 100% >=95%
Achieve annual agency target of days away from work, days of restricted work
activity, or job transferred as a result of a work-related injury or illness 0.9 <=2.5
FY 2019-20 Budget Update
A - 23
Self-Funded Insurance Plans
A - 24
SELF-FUNDED INSURANCE PLANS The General Liability and Property program and the Workers’ Compensation program provide for OCSD to be partially self-insured for general liability and workers’ compensation. The in-lieu premiums charged to the
operating divisions are the revenue source for these programs. Expenses primarily consist of settlement claims, legal fees and excess loss insurance premiums. Ending Reserve Balances are projected at $57 million.
General Liability and Property
•OCSD’s current excess general liability insurance coverage is $40 million per occurrence with an annualaggregate limit and with a self-insured retention of $500,000.
•OCSD’s current property insurance coverage is $1 billion for perils of fire and $300 million for perils offlood, subject to a self-insured retention of $250,000. OCSD is partially self-insured for earthquake, butdoes carry $25 million in coverage on 15 key structures with a $5 million deductible. OCSD also has a $50
million sublimit for builder’s risk under the property insurance program to ensure upcoming constructionprojects are adequately covered.
•In order to maintain the reserve balance of $55 million for the General Liability and Property program,appropriations for in-lieu premiums charged to operating divisions are recommended at $1,720,000 forFY 2019-20.
Workers’ Compensation
•OCSD’s current excess workers’ compensation coverage has unlimited statutory coverage per occurrenceand $4 million employer’s liability per employee with a self-insured retention of $1 million per person peroccurrence.
•In order to maintain the reserve balance of $2 million for the Workers’ Compensation program,appropriations for in-lieu premiums charged to operating divisions are recommended at $780,000 forFY 2019-20.
FY 2019-20 Self-Insurance Program Budget
General Liability Workers'Total
& Property Compensation Self-Insurance
DESCRIPTION OR ACCOUNT TITLE Program Program Program
Beginning Reserves 55,000,000$ 2,000,000$ 57,000,000$
Revenues
In-Lieu Premiums 1,720,000 780,000 2,500,000
Miscellaneous Other Revenue 10,000 -10,000
Service Department Allocation 20,000 -20,000
Total Revenues 1,750,000 780,000 2,530,000
Expenses
Benefits/Claims 360,000 430,000 790,000
Contractual Services - - -
Legal Services 40,000 80,000 120,000
Professional Services 10,000 60,000 70,000
Policy Premium Expense 1,340,000 210,000 1,550,000
Total Expenses 1,750,000 780,000 2,530,000
Excess Revenue (Expenses)- - -
Ending Reserves 55,000,000$ 2,000,000$ 57,000,000$
2019-20 Budget Update
A – 25
Historical Staffing Summary
Authorized Authorized Authorized Authorized Proposed
Department and Division Name FTEs FTEs FTEs FTEs FTEs
2015-16 2016-17 2017-18 2018-19 2019-20
General Manager's Office
General Management Administration 6.00 5.00 5.00 4.00 4.00
Board Services 4.00 5.00 5.00 5.00 5.00
Public Affairs 5.00 5.00 5.00 5.00 6.00
Department Subtotal*15.00 15.00 15.00 14.00 15.00
Human Resources Department
Human Resources Administration 16.00 16.00 16.00 16.00 16.00
Risk Management/Safety/Security 11.00 11.00 11.00 11.00 11.00
Department Subtotal 27.00 27.00 27.00 27.00 27.00
Administrative Services Department
Administrative Services Administration 3.00 3.00 3.00 3.00 3.00
Financial Management 19.00 19.00 19.00 19.00 19.00
Contracts, Purchasing and Materials Management 32.00 32.00 32.00 32.00 32.00
Information Technology 44.00 45.00 45.00 46.00 47.00
Department Subtotal 98.00 99.00 99.00 100.00 101.00
Facilities Support Services Department
Facilities Support Services Administration 4.00 - - - -
Fleet Services 9.00 - - - -
Facilities Engineering and Repair Services 5.00 - - - -
NPDES Source Inspection 16.00 - - - -
Odor and Corrosion Control 6.00 - - - -
Collection Facilities Operations and Maintenance 23.00 - - - -
Department Subtotal 63.00 - - - -
Envrionmental Services Department
Environmental Services Administration - 2.00 2.00 2.00 2.00
Resource Protection - 47.00 37.00 37.00 37.00
Laboratory, Monitoring and Compliance - 42.00 52.00 52.00 53.00
Department Subtotal - 91.00 91.00 91.00 92.00
Engineering Department
Engineering Administration 2.00 2.00 2.00 2.00 2.00
Planning 15.00 15.00 15.00 14.00 18.00
Project Management Office 20.00 17.00 17.00 16.00 17.00
Civil and Mechanical Engineering 59.00 53.00 53.00 54.00 52.00
Electrical and Control Systems Engineering - 29.00 29.00 30.00 31.00
Environmental Compliance 31.00 - - - -
Department Subtotal 127.00 116.00 116.00 116.00 120.00
Operations and Maintenance Department
Operations and Maintenance Administration 2.00 3.00 3.00 3.00 3.00
Collection Facilities Operations and Maintenance - 26.00 26.00 26.00 26.00
Fleet Services - 8.00 8.00 8.00 8.00
Plant No. 1 Operations 69.00 62.00 61.00 62.00 62.00
Plant No. 2 Operations 54.00 50.00 51.00 50.00 50.00
Plant No. 1 Maintenance 82.00 85.00 62.00 61.00 86.00
Maintenance Reliability and Planning - - 28.00 28.00 -
Plant No. 2 Maintenance 46.00 45.00 48.00 50.00 50.00
Environmental Laboratory and Ocean Monitoring 41.00 - - - -
Department Subtotal 294.00 279.00 287.00 288.00 285.00
Grand Total - All Departments*624.00 627.00 635.00 636.00 640.00
Historical Staffing Detail
A – 26
Authorized Authorized Authorized Authorized Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2015-16 2016-17 2017-18 2018-19 2019-20
General Manager's Office
110 General Management Administration
General Manager 1.00 1.00 1.00 1.00 1.00
Assistant General Manager 1.00 1.00 1.00 1.00 1.00
Public Affairs Manager 1.00 - - - -
Principal Staff Analyst - 1.00 1.00 1.00 1.00
Records Management Specialist 1.00 1.00 1.00 - -
Senior Staff Analyst 1.00 - - - -
Secretary to the General Manager 1.00 1.00 1.00 1.00 1.00
Total General Management Administration*6.00 5.00 5.00 4.00 4.00
120 Board Services
Clerk of the Board 1.00 1.00 1.00 1.00 1.00
Deputy Clerk of the Board 1.00 1.00 1.00 1.00 1.00
Program Assistant 2.00 2.00 2.00 2.00 2.00
Office Assistant 1.00 1.00 1.00 1.00
Total Board Services 4.00 5.00 5.00 5.00 5.00
140 Public Affairs
Administrative Manager - - - - 1.00
Public Affairs Supervisor - 1.00 1.00 1.00 -
Principal Public Affairs Specialist 1.00 - - - 1.00
Senior Public Affairs Specialist 1.00 1.00 1.00 1.00 1.00
Public Affairs Specialist 1.00 1.00 1.00 1.00 1.00
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Graphics Designer - - - 1.00 1.00
Graphics Coordinator 1.00 1.00 1.00 - -
Total Public Affairs 5.00 5.00 5.00 5.00 6.00
Total General Manager's Office 15.00 15.00 15.00 14.00 15.00
Human Resources Department
160 Human Resources Administration
Director of Human Resources 1.00 1.00 1.00 1.00 1.00
HR and Risk Manager - - 1.00 1.00 1.00
Human Resources Manager 1.00 1.00 - - -
Human Resources Supervisor 1.00 1.00 1.00 2.00 2.00
Principal Human Resources Analyst 3.00 3.00 3.00 2.00 2.00
Senior Human Resources Analyst 4.00 4.00 4.00 4.00 4.00
Human Resources Analyst 4.00 4.00 4.00 4.00 4.00
Human Resources Assistant 1.00 1.00 1.00 2.00 2.00
Program Assistant 1.00 1.00 1.00 - -
Total Human Resources Administration 16.00 16.00 16.00 16.00 16.00
161 Risk Management/Safety/Security
Safety & Health Supervisor 1.00 1.00 1.00 1.00 1.00
Principal Financial Analyst 1.00 1.00 1.00 1.00 1.00
Safety & Health Specialist 1.00 1.00 1.00 1.00 2.00
Security & Emergency Planning Specialist 1.00 1.00 1.00 1.00 1.00
Occupational Health Nurse 1.00 1.00 1.00 1.00 1.00
Senior Safety & Health Representative 2.00 2.00 2.00 2.00 1.00
Safety & Health Representative 3.00 3.00 3.00 3.00 3.00
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Total Risk Management/Safety/Security 11.00 11.00 11.00 11.00 11.00
Total Human Resources Department 27.00 27.00 27.00 27.00 27.00
2019-20 Budget Update
A – 27
Authorized Authorized Authorized Authorized Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2015-16 2016-17 2017-18 2018-19 2019-20
Administrative Services Department
210 Administrative Services Administration
Director of Finance & Administrative Services / Treasurer 1.00 1.00 1.00 1.00 1.00
Principal Financial Analyst 1.00 1.00 1.00 - -
Principal Staff Analyst - - - 1.00 1.00
Executive Assistant 1.00 1.00 1.00 1.00 1.00
Total Administrative Services Administration 3.00 3.00 3.00 3.00 3.00
220 Financial Management
Controller 1.00 1.00 1.00 1.00 1.00
Accounting Supervisor 3.00 3.00 3.00 3.00 3.00
Principal Accountant 3.00 2.00 2.00 2.00 2.00
Senior Accountant 1.00 2.00 2.00 2.00 2.00
Senior Staff Analyst 1.00 1.00 1.00 1.00 1.00
Accountant 2.00 2.00 2.00 2.00 2.00
Staff Analyst 1.00 1.00 1.00 - -
Payroll Technician 2.00 2.00 2.00 2.00 2.00
Accounting Assistant II 5.00 5.00 5.00 6.00 6.00
Total Financial Management 19.00 19.00 19.00 19.00 19.00
230 Contracts, Purchasing and Materials Management
Contracts & Purchasing Manager 1.00 1.00 1.00 1.00 1.00
Contracts Supervisor 1.00 1.00 1.00 1.00 1.00
Principal Contracts Administrator 2.00 2.00 2.00 2.00 2.00
Purchasing Supervisor 1.00 1.00 1.00 1.00 1.00
Materials Control Supervisor 1.00 1.00 1.00 1.00 1.00
Senior Contracts Administrator 3.00 3.00 3.00 3.00 3.00
Principal Buyer 1.00 1.00 1.00 - 1.00
Contracts Administrator 3.00 3.00 3.00 3.00 3.00
Senior Buyer 1.00 1.00 1.00 3.00 2.00
Buyer 3.00 3.00 3.00 2.00 2.00
Contracts/Purchasing Assistant 5.00 5.00 5.00 5.00 5.00
Lead Storekeeper 2.00 2.00 2.00 2.00 2.00
Senior Storekeeper 3.00 3.00 3.00 3.00 3.00
Storekeeper 5.00 5.00 5.00 5.00 5.00
Total Contracts, Purchasing and Materials Management 32.00 32.00 32.00 32.00 32.00
250 Information Technology
Information Technology Systems and Operations Manager 1.00 1.00 1.00 1.00 1.00
Information Technology Manager 1.00 1.00 - - -
Information Technology Supervisor 2.00 2.00 3.00 3.00 3.00
Principal Information Technology Analyst 6.00 6.00 6.00 7.00 7.00
Senior Information Technology Analyst 9.00 10.00 10.00 10.00 10.00
Information Technology Analyst III 6.00 6.00 6.00 6.00 7.00
Records Management Specialist - - - 1.00 1.00
Data Management Technician II 7.00 7.00 7.00 7.00 7.00
Information Technology Analyst II 3.00 3.00 3.00 3.00 3.00
Data Management Technician I 4.00 4.00 4.00 4.00 4.00
Staff Analyst 1.00 1.00 1.00 1.00 1.00
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Information Technology Technician II 1.00 1.00 1.00 1.00 1.00
Information Technology Technician I 1.00 1.00 1.00 1.00 1.00
Program Assistant 1.00 1.00 1.00 - -
Total Information Technology 44.00 45.00 45.00 46.00 47.00
Total Administrative Services Department 98.00 99.00 99.00 100.00 101.00
Historical Staffing Detail
A – 28
Authorized Authorized Authorized Authorized Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2015-16 2016-17 2017-18 2018-19 2019-20
Envrionmental Services Department
610 Environmental Services Administration
Director of Environmental Services - 1.00 1.00 1.00 1.00
Executive Assistant - 1.00 1.00 1.00 1.00
Total Environmental Services Administration - 2.00 2.00 2.00 2.00
620 Resource Protection
Engineering Manager - - 1.00 1.00 1.00
Environmental Compl & Reg Affairs Manager - 1.00 - - -
Engineering Supervisor - 2.00 2.00 2.00 2.00
Environmental Supervisor - 1.00 - - -
Senior Engineer - 1.00 1.00 2.00 2.00
Senior Regulatory Specialist - 1.00 - - -
Engineer - 5.00 5.00 4.00 4.00
Source Control Supervisor - 1.00 1.00 1.00 1.00
Regulatory Specialist - 3.00 - - -
Associate Engineer - 4.00 3.00 3.00 3.00
Principal Environmental Specialist - 3.50 3.00 3.00 3.00
Lead Source Control Inspector - 1.00 1.00 1.00 1.00
Senior Environmental Specialist - 4.50 1.00 1.00 1.00
Source Control Inspector II - 7.00 7.00 7.00 7.00
Source Control Inspector I - 2.00 2.00 2.00 2.00
Administrative Assistant - 2.00 2.00 2.00 2.00
Environmental Technician - 3.00 3.00 3.00 3.00
Program Assistant - 4.00 4.00 4.00 4.00
Office Assistant - 1.00 1.00 1.00 1.00
Total Resource Protection - 47.00 37.00 37.00 37.00
630 Laboratory, Monitoring and Compliance
Environmental Lab & Ocean Monitoring Manager - 1.00 1.00 1.00 1.00
Environmental Supervisor - 1.00 4.00 4.00 4.00
Laboratory Supervisor - 2.00 - - -
Senior Regulatory Specialist - - 1.00 1.00 2.00
Senior Scientist - 3.00 3.00 3.00 3.00
Regulatory Specialist - - 2.00 3.00 3.00
Scientist - 1.00 1.00 1.00 1.00
Associate Engineer - - 1.00 1.00 1.00
Principal Environmental Specialist - 2.00 8.50 8.00 8.00
Principal Laboratory Analyst - 6.00 - - -
Senior Environmental Specialist - 6.00 18.50 18.00 18.00
Boat Captain - 1.00 1.00 1.00 1.00
Senior Laboratory Analyst - 10.00 - - -
Environmental Specialist - 2.00 7.00 7.00 7.00
Laboratory Analyst - 3.00 - - -
Administrative Assistant - 1.00 1.00 1.00 1.00
Environmental Technician - - 3.00 3.00 3.00
Laboratory Assistant - 3.00 - - -
Total Laboratory, Monitoring and Compliance - 42.00 52.00 52.00 53.00
Total Environmental Services Department - 91.00 91.00 91.00 92.00
2019-20 Budget Update
A – 29
Authorized Authorized Authorized Authorized Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2015-16 2016-17 2017-18 2018-19 2019-20
Engineering Department
710 Engineering Administration
Assistant General Manager - - - 1.00 1.00
Director of Engineering 1.00 1.00 1.00 - -
Executive Assistant 1.00 1.00 1.00 1.00 1.00
Total Engineering Administration 2.00 2.00 2.00 2.00 2.00
740 Planning
Engineering Manager 1.00 1.00 1.00 1.00 1.00
Engineering Supervisor 1.00 2.00 2.00 2.00 2.00
Senior Engineer 3.00 3.00 3.00 3.00 3.00
Engineer 4.00 3.00 3.00 3.00 6.00
Principal Financial Analyst - 1.00 1.00 - -
Principal Staff Analyst 1.00 1.00 1.00 2.00 2.00
Associate Engineer 2.00 2.00 2.00 1.00 2.00
Engineering Associate 1.00 1.00 1.00 1.00 1.00
Senior Staff Analyst 1.00 - - - -
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Total Planning 15.00 15.00 15.00 14.00 18.00
750 Project Management Office
Engineering Manager 1.00 1.00 1.00 1.00 1.00
Engineering Supervisor 1.00 - - 1.00 1.00
Capital Improvement Program Project Manager 7.00 8.00 9.00 9.00 9.00
Senior Engineer 1.00 2.00 1.00 1.00 2.00
Principal Project Controls Analyst 1.00 1.00 1.00 1.00 1.00
Engineer 1.00 - - - -
Principal Staff Analyst 2.00 2.00 2.00 2.00 2.00
Cost Estimator 1.00 - - - -
Planner/Scheduler 1.00 - - - -
Senior Staff Analyst 1.00 - - - -
Engineering Assistant II 1.00 1.00 1.00 - -
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Office Assistant 1.00 1.00 1.00 - -
Total Project Management Office 20.00 17.00 17.00 16.00 17.00
760 Civil and Mechanical Engineering
Engineering Manager 1.00 1.00 1.00 1.00 1.00
Engineering Supervisor 4.00 5.00 5.00 4.00 4.00
Senior Construction Inspection Supervisor 1.00 - - - -
Senior Engineer 9.00 7.00 7.00 7.00 7.00
Construction Inspection Supervisor 1.00 2.00 2.00 2.00 2.00
Engineer 13.00 13.00 13.00 13.00 13.00
Senior Cost Estimator - - - 1.00 1.00
Senior Planner/Scheduler - - - 1.00 1.00
Associate Engineer 3.00 3.00 3.00 4.00 4.00
Cost Estimator - 1.00 1.00 - -
Planner/Scheduler - 1.00 1.00 - -
Senior Construction Inspector 7.00 5.00 5.00 5.00 5.00
Assistant Engineer 2.00 1.00 1.00 - -
Engineering Associate 1.00 1.00 1.00 1.00 1.00
Senior Staff Analyst 1.00 2.00 2.00 2.00 1.00
Construction Inspector 9.00 5.00 5.00 6.00 6.00
Engineering Assistant II 3.00 3.00 3.00 4.00 4.00
Staff Analyst 1.00 - - - -
Administrative Assistant 2.00 2.00 2.00 2.00 2.00
Engineering Assistant I 1.00 1.00 1.00 1.00 -
Total Civil and Mechanical Engineering 59.00 53.00 53.00 54.00 52.00
Historical Staffing Detail
A – 30
Authorized Authorized Authorized Authorized Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2015-16 2016-17 2017-18 2018-19 2019-20
770 Electrical and Control Systems Engineering
Engineering Manager - 1.00 1.00 1.00 1.00
Engineering Supervisor - 2.00 2.00 2.00 2.00
Senior Construction Insp Supv - 1.00 1.00 1.00 1.00
Senior Engineer - 6.00 6.00 6.00 7.00
Principal Info Tech Analyst - 4.00 4.00 4.00 4.00
Engineer - 4.00 4.00 4.00 4.00
Senior Info Tech Analyst - 3.00 3.00 3.00 3.00
Information Tech Analyst III - 1.00 1.00 1.00 1.00
Senior Construction Inspector - 2.00 2.00 3.00 3.00
Information Tech Analyst II - 1.00 1.00 1.00 1.00
Construction Inspector - 4.00 4.00 3.00 3.00
Administrative Assistant - - - 1.00 1.00
Total Electrical and Control Systems Engineering - 29.00 29.00 30.00 31.00
790 Environmental Compliance
Environmental Compl & Reg Affairs Manager 1.00 - - - -
Engineering Supervisor 2.00 - - - -
Environmental Supervisor 1.00 - - - -
Senior Scientist 1.00 - - - -
Engineer 6.00 - - - -
Regulatory Specialist 3.00 - - - -
Associate Engineer 4.00 - - - -
Principal Environmental Specialist 2.50 - - - -
Senior Environmental Specialist 4.50 - - - -
Administrative Assistant 1.00 - - - -
Program Assistant 4.00 - - - -
Office Assistant 1.00 - - - -
Total Environmental Compliance 31.00 - - - -
Total Engineering Department 127.00 116.00 116.00 116.00 120.00
Operations and Maintenance Department
810 Operations and Maintenance Administration
Director of Operations & Maintenance 1.00 1.00 1.00 1.00 1.00
Senior Staff Analyst 1.00 2.00 1.00 1.00 1.00
Staff Analyst - - 1.00 1.00 1.00
Total Operations and Maintenance Administration 2.00 3.00 3.00 3.00 3.00
820 Collection Facilities Operations and Maintenance
Engineering Manager - 1.00 1.00 1.00 1.00
Maintenance Supervisor - 2.00 2.00 2.00 2.00
Lead Mechanic - 5.00 5.00 5.00 5.00
Administrative Assistant - 1.00 1.00 1.00 1.00
Senior Mechanic - 8.00 8.00 8.00 8.00
Mechanic - 8.00 8.00 8.00 8.00
Office Assistant - 1.00 1.00 1.00 1.00
Total Collection Facilities Operations and Maintenance - 26.00 26.00 26.00 26.00
822 Fleet Services
Maintenance Supervisor - 1.00 1.00 1.00 1.00
Lead Mechanic - 1.00 1.00 1.00 1.00
Automotive/ Heavy Equipment Technician - 3.00 3.00 3.00 3.00
Mobile Crane Operator - 2.00 2.00 2.00 2.00
Automotive/ Heavy Equipment Assistant - 1.00 1.00 1.00 1.00
Total Fleet Services - 8.00 8.00 8.00 8.00
2019-20 Budget Update
A – 31
Authorized Authorized Authorized Authorized Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2015-16 2016-17 2017-18 2018-19 2019-20
830 Plant No. 1 Operations
Operations Manager 1.00 1.00 1.00 1.00 1.00
Engineering Supervisor 2.00 1.00 1.00 1.00 1.00
Chief Plant Operator 1.00 1.00 1.00 1.00 1.00
Senior Engineer 4.00 1.00 1.00 1.00 1.00
Principal Information Technology Analyst 3.00 - - - -
Engineer 3.00 2.00 2.00 1.00 1.00
Operations Supervisor 6.00 6.00 6.00 7.00 7.00
Principal Staff Analyst - - - 1.00 1.00
Senior Information Technology Analyst 3.00 - - - -
Maintenance Supervisor 1.00 - - - -
Scientist 1.00 1.00 1.00 1.00 1.00
Associate Engineer 1.00 2.00 2.00 2.00 2.00
Principal Environmental Specialist - - 1.00 1.00 1.00
Information Technology Analyst III 1.00 - - - -
Assistant Engineer 1.00 1.00 1.00 1.00 1.00
Senior Environmental Specialist 1.00 2.00 1.00 1.00 1.00
Information Technology Analyst II 1.00 - - - -
Lead Plant Operator 3.00 4.00 4.00 4.00 4.00
Lead Power Plant Operator 1.00 1.00 1.00 1.00 1.00
Power Plant Operator II 4.00 4.00 4.00 4.00 4.00
Senior Plant Operator 14.00 15.00 15.00 14.00 14.00
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Plant Operator 14.00 16.00 15.00 16.00 16.00
Environmental Technician - 1.00 1.00 1.00 1.00
Control Center Technician 2.00 2.00 2.00 2.00 2.00
Total Plant No. 1 Operations 69.00 62.00 61.00 62.00 62.00
840 Plant No. 2 Operations
Chief Plant Operator 1.00 1.00 1.00 1.00 1.00
Operations Supervisor 6.00 6.00 7.00 7.00 7.00
Lead Plant Operator 6.00 5.00 4.00 4.00 4.00
Lead Power Plant Operator - - 1.00 1.00 1.00
Power Plant Operator II 4.00 4.00 4.00 4.00 4.00
Senior Plant Operator 15.00 14.00 14.00 14.00 14.00
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Plant Operator 20.00 18.00 19.00 18.00 18.00
Program Assistant 1.00 1.00 - - -
Total Plant No. 2 Operations 54.00 50.00 51.00 50.00 50.00
Historical Staffing Detail
A – 32
Authorized Authorized Authorized Authorized Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2015-16 2016-17 2017-18 2018-19 2019-20
870 Plant No. 1 Maintenance
Engineering Manager 1.00 - - - 1.00
Maintenance Manager - 1.00 1.00 1.00 1.00
Engineering Supervisor 1.00 1.00 - - 1.00
Maintenance Superintendent 1.00 1.00 1.00 1.00 1.00
Senior Engineer 2.00 3.00 - - 1.00
Engineer 3.00 4.00 - - 1.00
Maintenance Supervisor 6.00 7.00 6.00 6.00 7.00
Associate Engineer 1.00 2.00 - - 1.00
Maintenance Specialist 5.00 5.00 - - 11.00
Lead Electrical Technician 3.00 3.00 3.00 3.00 3.00
Lead Heavy Equip Mechanic 1.00 1.00 1.00 1.00 1.00
Lead Instrumentation Technician 1.00
Maintenance Planner/Scheduler 3.00 4.00 - - -
Reliability Maintenance Technician 4.00 6.00 - - 5.00
Electrical Technician II 7.00 7.00 8.00 8.00 8.00
Instrumentation Technician II 6.00 5.00 6.00 6.00 7.00
Lead Mechanic 2.00 2.00 2.00 2.00 2.00
Machinist 1.00 1.00 1.00 1.00 1.00
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Senior Mechanic 17.00 17.00 18.00 17.00 18.00
Senior Heavy Equip Mechanic 2.00
Welder/Fabricator 3.00 3.00 3.00 3.00 3.00
Lead Facilities Worker 1.00 1.00 1.00 1.00 1.00
Electrical Technician I 1.00 1.00 1.00 1.00 2.00
Instrumentation Technician I 3.00 3.00 3.00 3.00 2.00
Facilities Worker/Builder 3.00 2.00 2.00 2.00 2.00
Facilities Worker/Painter 2.00 1.00 1.00 1.00 1.00
Mechanic 1.00 1.00 1.00 1.00 1.00
Maintenance Worker 3.00 2.00 2.00 2.00 -
Total Plant No. 1 Maintenance 82.00 85.00 62.00 61.00 86.00
875 Maintenance Reliability and Planning
Engineering Manager - - 1.00 1.00 -
Engineering Supervisor - - 1.00 1.00 -
Senior Engineer - - 3.00 3.00 -
Engineer - - 4.00 4.00 -
Maintenance Supervisor - - 1.00 1.00 -
Associate Engineer - - 2.00 2.00 -
Maintenance Specialist - - 11.00 11.00 -
Reliability Maintenance Technician - - 5.00 5.00 -
Total Maintenance Reliability and Planning - - 28.00 28.00 -
2019-20 Budget Update
A – 33
Authorized Authorized Authorized Authorized Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2015-16 2016-17 2017-18 2018-19 2019-20
880 Plant No. 2 Maintenance
Maintenance Superintendent 1.00 1.00 1.00 1.00 1.00
Maintenance Supervisor 5.00 5.00 5.00 5.00 5.00
Lead Electrical Technician 2.00 2.00 2.00 2.00 2.00
Lead Instrumentation Technician 2.00 2.00 2.00 2.00 2.00
Electrical Technician II 6.00 6.00 7.00 7.00 7.00
Instrumentation Technician II 7.00 6.00 8.00 8.00 7.00
Lead Mechanic 2.00 2.00 2.00 2.00 2.00
Administrative Assistant 1.00 - - 1.00 1.00
Senior Mechanic 15.00 14.00 14.00 15.00 14.00
Lead Facilities Worker - 1.00 1.00 1.00 1.00
Electrical Technician I 1.00 1.00 1.00 1.00 2.00
Instrumentation Technician I 1.00 - - - 1.00
Facilities Worker/Builder - 1.00 1.00 1.00 1.00
Facilities Worker/Painter - 1.00 1.00 1.00 1.00
Mechanic 1.00 1.00 1.00 1.00 1.00
Maintenance Worker 2.00 2.00 2.00 2.00 2.00
Total Plant No. 2 Maintenance 46.00 45.00 48.00 50.00 50.00
890 Environmental Laboratory and Ocean Monitoring
Environmental Lab & Ocean Monitoring Manager 1.00 - - - -
Environmental Supervisor 1.00 - - - -
Laboratory Supervisor 2.00 - - - -
Senior Scientist 3.00 - - - -
Scientist 1.00 - - - -
Principal Environmental Specialist 2.00 - - - -
Principal Laboratory Analyst 6.00 - - - -
Senior Environmental Specialist 6.00 - - - -
Boat Captain 1.00 - - - -
Senior Laboratory Analyst 10.00 - - - -
Environmental Specialist 1.00 - - - -
Laboratory Analyst 3.00 - - - -
Administrative Assistant 1.00 - - - -
Laboratory Assistant 3.00 - - - -
Total Environmental Laboratory and Ocean Monitoring 41.00 - - - -
Total Operations and Maintenance Department 294.00 279.00 287.00 288.00 285.00
Grand Total, All Departments*624.00 627.00 635.00 636.00 640.00
*FTE totals above include four new positions and eight upgrade of current existing positions.A total of 28 postions from Division 875 has been
reallocated to divisions 740, 750, 770, and 870. Total filled positions will not exceed 640 FTEs at any point in time.
Historical Staffing Detail
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2019-20 Budget Update
A - 35
Appropriations Limit Article XIIIB of the California State Constitution, more commonly referred to as the Gann Initiative or Gann Limit, was adopted by California voters in 1980. The Gann Limit placed limits on the amount of proceeds of
taxes that state and local governmental agencies can receive and appropriate (authorize to spend) each year.
The limit is different for each agency and the limit changes each year. The annual limit is based on the amount of tax proceeds that were authorized to be spent in fiscal year 1978-79 in each agency, modified for changes in inflation and population in each subsequent year.
Proposition 111 was passed by the State’s voters in June 1990. This legislation made changes to the manner in which the Appropriations Limit is to be calculated: The annual adjustment factors for inflation and population have been changed. Instead of using the lesser of California per capita income, or U.S. CPI, each agency may choose either the growth in the California per capita income, or the growth in assessed valuation due to new non-residential construction within the district. For population, instead of using only the population growth of an agency, each agency may choose to use the population growth within its county. These are both annual elections. The revised annual adjustment factors will be applied to the 1986-87 limit for most agencies and each year in between in order to calculate the 1990-91 limit. The actual limits for the intervening years, however, are not affected. Expenditures for “qualified capital outlay”, which are capital assets with a value of more than $100,000 and an expected life of 10 years or more, are excluded from the limit. An agency which exceeds the limit in any one year may choose to not give a tax refund if they fall below the limit in the next fiscal year. They then have two more years to refund any remaining excess or to obtain a successful override vote.
In certain situations, proceeds of taxes may be spent on emergencies without having to reduce the limit in future years. Each agency also conducts a review of its Appropriations Limit during its annual financial audit. The law requires a governing body to annually adopt, by resolution, an appropriations limit for the following year, along with a recorded vote regarding which of the annual adjustment factors have been selected. The Orange County Sanitation District’s appropriations limit and annual adjustment factors are adopted at the same meeting as the budget. The adjustment factors used for 2019-20 are the weighted average change in city population and the change in state per capita personal income. The following table shows the annual appropriations limit for each of the last two years and the appropriations limit and the appropriations, or proceeds from taxes, for 2019-20. The increase in the limit is based upon population changes ranging from negative 0.50 percent to positive 1.17 percent for major cities within the District as provided by the State Department of Finance and a per capita personal income change of 3.85 percent as provided by the State Department of Finance. Annual Appropriation Limits: 2017-18 $105,998,787
2018-19 $110,229,598 2019-20 $114,427,648
Proceeds of Taxes (Appropriations) 2019-20 $7,353,119
As a result of the July 1998 consolidation of the District, a single limit is presented in contrast to
individual limits shown in years prior to 1998. Population changes for representative cities have
continued to be used in order to ensure consistency and to eliminate significant population growth in parts of the County outside of OCSD’s service area. This method results in a lower limit than using the County-
wide change.
Miscellaneous Statistics
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General Information
Year of Formation ......................................................... 1948 Form of Government ................... County Sanitation District Authority .............................................. Section 4700 et. seq. .......................................... California Health & Safety Code Service Area .................................................... 479 sq. miles Service Population ...................... Approximately 2.6 million 2019-20 Assessed Value ................................. $443.1 billion
Miles of Sewers ........................................................... 389 miles On-Plant Pump Station…………… ........ ……………………..2 Off-Plant Pump Stations .......................................................... 15 Operating Authority ..................... RWQCB/NPDES Permit No. ………………… ...... ………………………………CA0110604 ……………… .......... …..Statewide WDR Order No. 2006-0003 2019-20 Authorized Staff (Full-Time Equivalent) ........... 640.00
Treatment Information 2017-18 Influent BOD: Plant No. 1 ................................ 324 milligrams per liter Plant No. 2 ................................ 339 milligrams per liter 2017-18 Influent Suspended Solids: Plant No. 1 ................................ 373 milligrams per liter Plant No. 2 ................................ 418 milligrams per liter 2017-18 Effluent BOD .............................. 12 milligrams per liter 2017-18 Effluent Suspended Solids ............ 5 milligrams per liter 2017-18 Biosolids Produced & Reused ............ 284,039 wet tons
Primary Treatment Capacity (includes standby): Plant No. 1 ................................................ 208 mgd Plant No. 2 ................................................ 168 mgd TOTAL .................................... 376 mgd Secondary Treatment Capacity: Plant No. 1 ................................................ 182 mgd Plant No. 2 ................................................ 150 mgd TOTAL .................................... 332 mgd Legend: mgd – million gallons per day kwh – kilowatts per hour
2018-19 Estimated Average Daily Influent: Plant No. 1 ....................................................... 121 mgd Plant No. 2 ......................................................... 69 mgd TOTAL ........................................... 190 mgd 2018-19 Estimated Electricity Generated: Plant No. 1 ............................................ 46,946,000 kwh Plant No. 2 ............................................ 50,704,000 kwh TOTAL ................................ 97,650,000 kwh
Financial Information
2019-20 2019-20
2017-18 2018-19 Originally Updated
Actual Projected Scheduled Proposed
Fees and Charges:
One-Time 3-Bedroom Residence Connection $3,855.00 $4,228.00 $4,601.00 $4,601.00
Average Annual Single-Family Residence Fee $331 $335 $339 $339
Local SRF Fee $108 $108 $108 $108
District's Avg. Share of Ad Valorem Property Tax 1.59%1.60%1.60%1.60%
Cost to Collect, Treat, & Dispose of One Million Gallons 2,069.30$ 2,175.07$ $2,398.45 $2,451.42
Summary of COP Issues:
May 2010A New Money 80,000,000$ August 2014A Refunding
November 2010C New Money 157,000,000 February 2015A Refunding
September 2011A Refunding 75,370,000 March 2016A Refunding
February 2012A Refunding 100,645,000 February 2017A Refunding
August 2012B Refunding 46,475,000 November 2018A Refunding
Total Outstanding COP Balance 7/1/19 972,780,000$
71,330,000
127,510,000
145,880,000
66,370,000
102,200,000
0
100
200
300
400
Plant 1 Plant 2 Total
121
69
190
208
168
376
2018-19 Est. Influent Capacity - Primary Treatment
Daily Influent Flow to Total Primary Capacity Comparison (in mgd)
1. METERING AND DIVERSION
Wastewater enters our plant at 2.5 - 5 mph through
pipes up to 10 feet in diameter. High tech equipment
monitors the temperature, pH, conductivity, and flow
of the incoming wastewater.
2. PRELIMINARY TREATMENT
Raw sewage passes through bar
screens that trap large items like rags
that cannot be recycled. Materials like
egg shells and coffee grounds are then
removed through the grit chamber that
uses high pressure air to separate the
gritty material.
3. AIR SCRUBBER
Hydrogen sulfide (foul air) is
captured throughout the process
and funneled into large silos. It
passes through a plastic medium
and mixes with caustic soda and
bleach. Causing the odorous
compounds to be neutralized.
4. PRIMARY TREATMENT
Primary clarifiers or settling basins, slow the
water down to allow the solids in the wastewater
that readily settle or float to be separated from
the water being treated. Collector arms that
move along the top and the bottom remove over
80 percent of the influent wastewater solids.
Solids are then sent to the digesters
for processing.
5. SECONDARY TREATMENT
Trickling filters and aeration basins are used to further clean the
water. In trickling filters the water is sprayed over a honeycomb
type material upon which aerobic bacteria grow. As the water
trickles down, the microorganisms consume the solids that were
not removed through primary treatment. Aeration tanks use a
combination of oxygen and microorganisms, (activated sludge)
that consume the remaining organic solids. Treated water is
then sent to the Orange County Water District for recycling, or
discharged into the ocean.
7. SOLIDS PROCESSING
Solids captured from primary and secondary treatment are batch loaded into
anaerobic digesters where they are heated to about 98 degrees and treated
for 18-21 days. The digestion process produces methane gas and a material
called biosolids. Biosolids are sent to the dewatering facility where they are run
through dewatering centrifuges. The centrifuges spin the biosolids separating
water from the solids. This process saves OCSD several million dollars per year
in truck hauling costs. The nutrient-rich biosolids are trucked off to farms where
they are recycled for direct land application and composting.
8. CENTRAL GENERATION
Methane gas that is captured from
digesters is compressed and used to
fuel engine generators that produce
electricity, supplying more than 60%
of our energy needs.
PA 03/2019
6. GROUNDWATER REPLENSMENT SYSTEM
A joint project between Orange County Sanitation
District and Orange County Water District. This system
reduces the amount of wastewater discharged to the
Pacific Ocean and creates a reliable supply of high-
quality water that is drought-resilient.
Orange County Sanitation DistrictWastewater Treatment Process
Biosolids
Our Policy
OCSD strives to recycle our biosolids using sustainable options while
protecting public health and the environment.
Some of our biosolids are recycled and used like fertilizer on farm fields to
create and maintain healthy soils and improve crop yields.
Some of OCSD’s biosolids are further processed through composting to
create a consumer-grade soil amendment that is distributed to agricultural,
commercial and residential users.
Our Program
Orange County’s biosolids are safe, highly-regulated, and meet the most
restrictive standards. In order to maintain these high-quality standards for
recycling our biosolids, OCSD maintains a comprehensive and award-
winning Source Control Program that has significantly reduced the amount
of pollutants entering our facilities and biosolids.
Fertilizing farmland with biosolids is a win-win for the environment because
we are recycling a renewable resource and creating productive farmland.
It’s a win for farmers because research has demonstrated using biosolids
increases crop yields. And this biosolids management option is a win for
local sewer rate payers since it is a low-tech, low-cost, reliable option that
helps keep sewer rates low.
Learn More
Visit our website at www.ocsd.com/biosolids for more information and to
sign up for periodic biosolids program newsletters.
Know what should go downthe drain that is sewer safe
It’s simple, the toilet is only meant to flush the
three Ps—pee, poop and paper.
Unfortunately, over the years, people have turned the toilet into a
trash can. From medications and sanitary products to deceased
pet fish and cigarette butts. If it fits, people flush it. Flushing these
types of items down the toilet causes home pipes to clog, wastes
water (up to five gallons of water every time you flush) and most
importantly can have a huge impact on our sewers, not to mention
our ocean.
Besides the three Ps the only other thing going down the drain should be soap and water. The toilet is not the
only drain that people are using to get rid of unwanted waste;
people are also known to use the kitchen sink as a trash can.
Letting trash flow and go down the kitchen sink (or any other
drain in the house) may cause pipes to clog and can eventually
lead to sewage spills that harm the environment.
Visit www.What2Flush.com to learn how to properly dispose of common
items that people flush or dump down the drain. Let’s keep our wastewater
flowing and our oceans clean. Educate yourself and others.
Know What 2 Flush and what to put down the drain. Protect our sewers
and environment!
The Groundwater Replenishment System (GWRS) is the world’s largest
advanced water purification system for potable reuse. It takes treated
wastewater that otherwise would be sent to the Pacific Ocean and purifies it
using a three-step advanced process.
The design and construction of the GWRS was jointly funded by the
Orange County Sanitation District (OCSD) and the Orange County Water
District (OCWD). Together OCSD and OCWD constructed one of the most
celebrated civil engineering and water reuse projects in the world.
The GWRS provides a reliable supply of highly purified, near-distilled quality
water. Even during drought years, the GWRS offers a more cost-effective
and energy-efficient way of producing water.
GWRS provides the county with new water it can count on. The project
serves as a model for other regions throughout the United States and
the world.
Reclamation Plant No. 1 and Administration Offices
10844 Ellis Avenue, Fountain Valley, California 92708
Treatment Plant No. 2
22212 Brookhurst Street, Huntington Beach, California 92646
Phone: 714.962.2411
Email: forinformation@ocsd.com
Website: ocsd.com
The Orange County Sanitation District (OCSD) is a public agency that provides wastewater collection, treatment, recycling, and disposal services for approximately
2.6 million people in our service area of central and northern Orange County. OCSD
is a special district that is governed by a Board of Directors consisting of 25 board
members. OCSD has two operating facilities in Fountain Valley and Huntington
Beach that treat wastewater from residential, commercial, and industrial sources.
Follow the Flow:
Pretreatment: All the cities’ sewers connect to OCSD’s collections system that
transports the wastewater to our treatment plants. Before the sewage enters our
facilities, our Source Control Program permits and inspects business and industry that discharge waste into the sewers. Maintaining and protecting our trunklines from
corrosion and odor issues is also an important part of what we do.
1. Metering and Diversion: Wastewater enters our treatment plants through
trunklines up to 10-feet in diameter at a speed of 2.5-5 mph. Automated
equipment measures the pH, conductivity, flow, and temperature. Data is
monitored by operators around the clock.
2. Preliminary Treatment: Consists of two parts – bar screens and grit chambers.
First, sewage passes through metal bars that catch large items (rags, trash,
wood, etc.). Next, grit chambers use air bubbles to suspend lighter material while
heavier grit (egg shells, coffee grounds, gravel, sand, etc.) sinks to the bottom
and is removed. Screenings and grit are sent to a landfill.
3. Air Scrubber: Most processes that produce odors are covered and the foul air is
drawn off for cleaning (deodorizing) by air scrubbers. OCSD uses both chemical
and biofilter systems. Hydrogen sulfides (sewer gas smell) are neutralized by
using caustic soda, bleach, or live microorganisms.
4. Advanced Primary Treatment: Chemicals (ferric chloride and anionic polymer)
are added to the preliminary treated sewage to improve settling. Heavier suspended solids clump together and sink to the bottom (sludge). Lighter waste
(grease and oil) float to the surface (scum). This process takes about 2 hours
and up to 80% of the suspended solids are continuously removed by scraper
arms that revolve along the top and bottom of the basin. These solids are sent to
digesters for further processing.
5. Secondary Treatment: Advanced primary treated sewage is sent to either
trickling filters or activated sludge processes were aerobic microorganisms eat
the remaining dissolved waste from the water. The secondary treated wastewater
is then settled in clarifiers allowing the remaining sludge (either live or dead
microorganisms) to be removed. Activated sludge process uses aeration basins to mix oxygen and microorganisms to enhance the waste removal rate. Some of
the sludge is pumped back into the aeration basin as return activated sludge to
regenerate the basin. The remaining sludge is thickened and sent to digesters.
Final Effluent: The secondary treated wastewater from Plant No. 1 is sent to the
Orange County Water District for advanced treatment through the Groundwater Replenishment System (GWRS). This water is used to replenish Orange County’s
groundwater aquifers and protect against seawater intrusion. The secondary treated
wastewater from Plant No. 2 is safely released though our ocean pipeline five miles
out to sea at a depth of 200 feet below the ocean surface.
Our Mission:
“To protect public health and the environment by providing
effective wastewater collection, treatment, and recycling.”
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley
Calilfornia, 92708-7018
714.962.2411
www.ocsd.com
05/2019