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HomeMy WebLinkAbout06-12-2013 Administration Committee Agenda Package Wednesday, June 12, 2013 5:30 P.M. Orange County Sanitation District Administration Building Regular Meeting of the Conference Rooms A& B Administration Committee 10844 Ellis Avenue Fountain Valley, CA 714 593-7130 AGENDA PLEDGE OF ALLEGIANCE: DECLARATION OF QUORUM: PUBLIC COMMENTS: If you wish to speak, please complete a Speaker's Form and give it to the Clerk of the Board. Speakers are requested to limit comments to three minutes. REPORTS: The Committee Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Committee Members. These reports are for information only and require no action by the Committee. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: CONSENT CALENDAR: 1. Approve Minutes of the May 8, 2013 Administration Committee Meeting. 2. Recommend to the Board of Directors to: Adopt Resolution No. OCSD 13-XX, Establishing Use Charges for the FY 2013- 14 pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority. ACTION ITEMS: 3. Recommend to the Board of Directors to: Approve the proposed revisions to the Operating, Capital, DebtlCOP Service and Self-Insurance Budgets for FY 2013-14, as shown. 06/12/2013 Administation Committee Agenda Page 1 of 2 INFORMATION ONLY 4. Cost Recovery for Urban Runoff Flows 5. Permitting Process for Sewer Connections OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: The next Administration Committee meeting is scheduled for Wednesday, July 10, 2013, at 5:30 p.m. Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at (714) 593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all,or a majority of the Board of Directors,are available for public inspection in the office of the Clerk of the Board. NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Made E.Ayala Clerk of the Board (714)593-7130 mavala(d)ocsd.com For any questions on the agenda,Committee members may contact staff at: General Manager James Herberg (714)593-7110 iherbem(rpomd.com Assistant General Manager Bob Ghirelli (714)593-7400 rohirelli(fDocsd.cem Director of Finance and Lorenzo Tyner (714)593-7550 Itwentfiomd.com Administrative Services Director of Human Resources Jeff Reed (714)593-7144 ireed0ocsd.com 06/12/2013 Administration Committee Agenda Page 2 of 2 ADMINISTRATION COMMITTEE Meeting Date T1.1 O(Dlr. 06/12/13 6/26/13 AGENDA REPORT Item Number Item Number z Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: ESTABLISHING USE CHARGES FOR THE FY 2013-14 PURSUANT TO THE WASTEWATER TREATMENT AND DISPOSAL AGREEMENT WITH THE SANTA ANA WATERSHED PROJECT AUTHORITY GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 13-XX, Establishing Use Charges for the FY 2013-14 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority. SUMMARY Currently, OCSD invoices Santa Ana Watershed Project Authority (SAWPA) on a quarterly basis for the wastewater discharge we receive from the SARI line. Annually, the rates for flow, biochemical oxygen demand (BOD), and total suspended solids (TSS) are calculated based upon the fiscal year budget for treatment and disposal costs and the 1996 Wastewater Treatment and Disposal agreement. The rates calculated for each constituent for FY 2013-14 for wastewater discharge are: FLOW $162.60 BOD $249.40 TSS $370.19 The FY 2013-14 rates are a 1.34 percent decrease over the FY 2012-13 rates, due to a 1.34 percent decrease in the treatment and disposal costs in the proposed FY 2013-14 Budget. These rates are separate from the rates charged for additional capacity purchases by SAWPA. PRIOR COMMITTEE/BOARD ACTIONS June 2012 - Adopted Resolution No. OCSD 12-08 Establishing Use Charges for the FY 2012-13 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority. June 2011 - Adopted Resolution No. OCSD 11-08 Establishing Use Charges for the FY 2011-12 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority. June 2010 - Adopted Resolution No. OCSD 10-09 Establishing Use Charges for the FY 2010-11 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority. Page 1 June 2009 - Adopted Resolution No. OCSD 09-08 Establishing Use Charges for the FY 2009-10 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority. June 2008 - Adopted Resolution No. OCSD 08-09 Establishing Use Charges for the FY 2008-09 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority. June 2007 - Adopted Resolution No. OCSD 07-15 Establishing Use Charges for the FY 2007-08 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority. ADDITIONAL INFORMATION None. CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS The following attachment(s)may be viewed on-line at the OCSD website(www.ocsd.coml with the complete agenda package: Draft Resolution No. OCSD 13-XX, Establishing Use Charges for the FY 2013-14 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority. JDH:LT:MW:AB/jmf Page 2 Return to Mende Rom RESOLUTION NO. OCSD 13-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ESTABLISHING USE CHARGES FOR THE 2013-14 FISCAL YEAR PURSUANT TO THE WASTEWATER TREATMENT AND DISPOSAL AGREEMENT WITH THE SANTA ANA WATERSHED PROJECT AUTHORITY ("SAW PA') WHEREAS, the Board of Directors has approved the Wastewater Treatment and Disposal Agreement with the SANTA ANA WATERSHED PROJECT AUTHORITY ("SAWPA"); and, WHEREAS, said agreement provides for payment of Disposal Costs for the measured and sampled flow of Wastewater discharged from SAWPA's SARI Service Area to Districts'facilities; and, WHEREAS, said agreement provides for adjustment of said Disposal Costs on an annual basis. NOW, THEREFORE, The Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1. That pursuant to Section C4 of the Wastewater Treatment and Disposal Agreement, the 2013-14 fiscal year charges for Disposal Costs are hereby established as follows: For Flow: $ 162.60 per million gallons of flow For Biochemical Oxygen Demand: $ 249.40 per thousand pounds For Total Suspended Solids: $ 370.19 per thousand pounds PASSED AND ADOPTED at a regular meeting held June 26, 2013. Chair ATTEST: Clerk of the Board 1 ADMINISTRATION COMMITTEE Meeting Date T1.1 Or Dir. 06/12/13 6/26/13 AGENDA REPORT Item Number Item Number 3 Orange County Sanitation District FROM: Jim Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: PROPOSED REVISIONS TO FY 2013-14 BUDGET. GENERAL MANAGER'S RECOMMENDATION Approve the proposed revisions to the Operating, Capital, DebUCOP Service and Self- Insurance Budgets for FY 2013-14, as follows: Originally Proposed Adopted Budget Revised Budget FY 2013-14 FY 2013-14 Operations &Maintenance $155,761,100 $151,227,990 Capital Improvement Program 174,421,000 141,600,000 Rehabilitation, Replacement, & Refurbishment - 3,303,000 Debt/COP Service 97,576,000 98,450,000 Re-Purchase of Excess Capacity - 2,200,000 General Liability and Property Self-Insurance 1,512,200 1,512,200 Worker's Compensation Self Insurance 700,000 640,000 TOTAL $429,970,300 $398,933,190 SUMMARY Developing a two-year budget increases efficiencies and provides a longer planning horizon. This update represents known revisions to the second year of the two-year budget. The FY 2013-14 Proposed Revised Budget is enclosed for the Committee's consideration. The Proposed Revised Budget was presented to the Operations Committee at its regular June meeting as an information item in order to allow each Committee an opportunity to review the proposal prior to the June Board meeting. Although each Committee has had an opportunity to review the proposal, it remains the responsibility of the Administration Committee to recommend approval. The Administration Committee is requested to recommend that the Board of Directors approve this budget. Page 1 of 2 PRIOR COMMITTEE/BOARD ACTIONS June 2013 — The FY 2013-14 Proposed Revised Budget was presented to the Operations Committee Meeting as an information item; and presented for consideration to recommend to the Board of Directors to the Administration Committee during their respective meetings in June 2013. June 2012 — The Board approved the FY 2012-13 and FY 2013-14 Two-Year Budget for the period July 1, 2012 through June 30, 2014. ADDITIONAL INFORMATION None. ATTACHMENTS The following attachment(s) is provided in hard copy and may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: 1. 2013-14 Budget Update Development— Expense Summary 2. Proposed FY 2013-14 Revised Budget (Separate Booklet) JH:LT:MW:jf h411/ MaiteNWar uNi¢M1 CommtleeAyendaBP2010XRRcynwtl Rwwn¢b FY 301N4 BudgeW301-BudgW R"sm AR FYt314 Jum 2013.dw Rehmd: OM4M Page 2 Return to Mende Report 2013-14 Budget Update Development - Expense Summary 2013-14 2013-14 Proposed Increase/ Percent Description Adopted Revision (Decrease) Change 1 Salaries&Wages $ 65.4 $ 65.4 $0.0 0% 2 Benefits $ 30.8 $ 32.6 $1.8 6% 3 Operating Materials&Supplies $ 19.8 $ 17.7 ($2.1) -11% 4 Contractual Services $ 27.9 $ 23.2 ($4.7) -17% 5 Repairs& Maintenance $ 11.9 $ 11.8 ($0.1) - 11% 6 Utilities $ 8.8 $ 7.8 ($1.0) -11% 7 Professional Services $ 2.4 $ 4.0 $1.6 67% 8 Other Operating Supplies $ 3.2 $ 2.5 ($0.7) -22% 9 Administrative Expenses $ 1.2 $ 1.3 $0.1 8% 10 Research & Monitoring $ 0.9 $ 0.8 ($0.1) -11% 11 Other Non-Operating Expenses $ 0.0 $ 0.8 $0.8 N/A 12 Training & Meetings $ 1.2 $ 1.1 ($0.1) -8% 13 Printing & Publication $ 0.4 $ 0.4 $0.0 0% 14 Cost Allocation ($ 18.2) ($ 18.2) $0.0 0% 15 Net Operating Requirements $155.7 $151.2 ($4.5) - 3% Return to Mende Report Proposed Adjustments to the Approved 2013-14 Operating Budget 1) Salaries/Wages: $65.4M to$65.41M No Change from Adopted 2) Benefits: $30.8M to$32.6M $1.8 Million Increase (6%) - Increase a result of changes in Orange County Employees'Retirement System(OCERS)plan costs 3) Materials/Supplies: $19.8M to$17.7M $2.1 Million Decrease (-11%) 4) Contractual Services: $27.9M to$23.2M $4.7 Million Decrease (-17%) 5) Repairs & Maintenance: $11.9M to$11.8M $0.1 Million Decrease(-1%) 6) Utilities: $8.8M to$7.8M $1.0 Million Decrease(-11%) 7) Professional Services: $2.4M to$4.OM $1.6 Million Increase (67%) - Increase a result of changes in Legal costs and other Professional Services contracts(see attached) 8) Operating Supplies: $3.2M to$2.SM $0.7 Million Decrease (-22%) 9) Administrative Expenses: $1.2M to$1.3M $0.1 Million Increase (8%) - Increase a result of changes to small line items, generally by less than$10,000 10)Research & Monitoring: $0.9M to$0.8M $0.1 Million Decrease (-11%) 11)Other Non-Operating: $O.OM to$0.8M $0.8 Million Increase - Increase a result of Budget Appropriations Funds for Items that were not purchased in this fiscal year, but still required next fiscal year 12)Training & Meetings: $1.2M to$1.1M $0.1 Million Decrease(- 8%) 13)Printing& Publication: $0.4M to$0.4M No Change from Adopted 14)Cost Allocation: ($18.2M)to ($18.2M) No Change from Adopted 15)Net Operating Budget $155.7M to$151.2M $4.5 Million Decrease(-3%) The Proposed Operating Budget decreases by$4.5 million or 3%from originally approved Return to Agenda Report Orange County Sanitation District, California Budget Update Fiscal Year 2013-14 O�JN�y S A N I TgT/o'L Q C) �O�FCT/ �G THE ENv� Mission Statement "We protect public health and the environment by providing effective wastewater collection, treatment, and recycling." Return to A enda Re atl G�9 GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO Orange County Sanitation District California Forthe Biennium Beginning July 1,2012 v��t �oaKaa,a 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 fiscal years beginning July 1, 2012. 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. Return to Anoxia Rom TABLE OF CONTENTS L OCSDService Area....................................................................................................................................................................1 Boardof Directors....................................................................................................................................................................11 BoardCommittees..................................................................................................................................................................!I! Orange County Sanitation District Organization Chart.........................................................................................................IV AdministrativeOfficials............................................................................................................................................................v Message from the General Manager.....................................................................................................................................vi FinanceSummary..................................................................................................................................................................I Financial Overview&Budgetary Issues.................................................................................................................................2 Wherethe Money Comes From..............................................................................................................................................6 FundingSources by Category.................................................................................................................................................6 Wherethe Money Goes..........................................................................................................................................................8 FundingUses by Category......................................................................................................................................................8 StrategicPlanning.................................................................................................................................................................10 CapitalImprovement Program...........................................................................................................................................18 DebtFinancing Program.....................................................................................................................................................20 OperatingExpenses.............................................................................................................................................................21 Departments.........................................................................................................................................................................26 Summary...............................................................................................................................................................................26 Officeof the General Manager.............................................................................................................................................28 HumanResources.................................................................................................................................................................30 AdministrativeServices........................................................................................................................................................32 FacilitiesSupport Services...................................................................................................................................................34 Engineering............................................................................................................................................................................36 Operations and Maintenance...............................................................................................................................................38 Appendix CashFlow Projection............................................................................................................................................................A-2 Capital Improvement Program Summary...........................................................................................................................A-4 ProjectSummary..................................................................................................................................................................A-5 Capital Improvement Expenditure Graphs.........................................................................................................................A-5 Summary of Capital Requirements.....................................................................................................................................A-7 NewProject Descriptions..................................................................................................................................................A-13 CapitalEquipment Budget Summary...............................................................................................................................A-16 CapitalEquipment Budget Detail......................................................................................................................................A-18 Listing of Proposed Purchases Over$100,000...............................................................................................................A-19 Self-Funded Insurance Plans............................................................................................................................................A-20 HistoricalStaffing Summary..............................................................................................................................................A-21 HistoricalStaffing Detail....................................................................................................................................................A-22 AppropriationsLimit...........................................................................................................................................................A-31 MiscellaneousStatistics....................................................................................................................................................A-32 Wastewater Treatment Process, Return to A ends Re orl OCSD SERVICE AREA Orange County Sanitation District Service Area and Treatment Plant Locations in Orange County, California orsb LA s.m HABRA BREA oluucecouN*r YORBA ,ePnm a. FULLER N LINOA PUC IA LA BARN C�7 PL PRE ANAHEIM VILLA i0 Pp LOS ORANGE �. A MITOS pROE �- ROV SEAL IN fl c BEACH e SA TA ANA TUSTIN UU ALL HUNTI OT B ^^ IRVINE o...,,, COSTA MESA N Semite area boundary a NEWPORT A sewer pipelines BEACH Reclamation Plant No.I(PI) Treatment Plant No.2(P2) / Pump and IKI stations Uninwrporated Orange County(white areas) min ulRIO'1--1 eensreavm,3 Return W Agenda Report OCSD BOARD OF DIRECTORS L Agency/City Active Director Alternate Director Anaheim..............................................................................Lucille Kring Jordan Brandman Brea.....................................................................................Brett Murdock Christine Marick Buena Park.........................................................................Fred Smith Steve Berry Cypress...............................................................................Prakash Narain Doug Bailey Fountain Valley...................................................................Steve Nagel Mark McCurdy Fullerton..............................................................................GregSelbourn Jan Flory Garden Grove.....................................................................Steve Jones Kris Beard Huntington Beach..............................................................Joe Shaw Joe Carchlo Irvine...................................................................................Steven Choi Christina Shea to Habra.............................................................................Tom Beamish Rose Espinoza La Palma.............................................................................Peter Kim Gerard Goedhart Los Alamitos.......................................................................Troy Edgar Richard Murphy Newport Beach...................................................................Keith Curry Rush Hill Orange................................................................................Teresa Smith Mark Murphy Placentia.............................................................................Scott Nelson Constance Underhill Santa Ana...........................................................................David Benavides, Sal Tinajero Seal Beach..........................................................................Michael Levitt Gordon Shanks Stanton...............................................................................David Shawver Carol Warren Tustin..................................................................................John Nielsen Allan Bernstein Villa Park.............................................................................Brad Reese Greg Mills Yorba Linda.........................................................................John Anderson Gene Hernandez Sanitary/Water Districts Costa Mesa Sanitary District.............................................James M.Ferryman Robert Doren Midway City Sanitary District ............................................Tyler Diep Allan P. Krippner Irvine Ranch Water District...............................................John Withers Douglas Reinhart County Areas Member of the Board of Supervisors...............................Janet Nguyen Shawn Nelson Return to A entla Re od OCSD BOARD Steering Committee GWR System Joint Cooperative Troy Edgar,Board Chao- Steering Committee John Anderson,Board Vice-Chair Troy Edgar Brad Reese,Chair,Administration Committee James M.Ferryman John Withers,Vice-Chair,Administration Committee John Anderson Tom Beamish,Chair,Operations Committee John Nielsen,Vice-Chair,Operations Committee (A3) -Brett Murdock ===Vacancy,At Large Member=== (A2)-Tom Beamish (A3)-Greg Sebourn Administration Committee Brad Reese,Chair(Villa Park) Audit Ad Hoc Committee John Withers,Vice Chair(IRWD) John Anderson,Board Vice-Chair(Yorba Linda) David Benavides(Santa Ana) John Nielsen(Tustin) Steven Choi(Irvine) Troy Edgar,Board Chair(Los Alamitos) Tyler Diep(MCSD) John Withers(IRWD) James M.Ferryman(CMSD) Peter Kim(La Palma) Prakash Narain(Cypress) Janet Nguyen(Board of Supervisors) Joe Shaw(Huntington Beach) Teresa Smith(Orange) Troy Edgar,Board Chair(Los Alamitos) John Anderson,Board Vice Chair(Yorba Linda) Operations Committee Tom Beamish,Chair(La Habra) John Nielsen,Vice Chair(Tustin) Keith Curry(Newport Beach) Steve Jones(Garden Grove) Lucille Kring(Anaheim) Michael Levitt(Seal Beach) Brett Murdock(Brea) Steve Nagel(Fountain Valley) Scott Nelson(Placentia) Greg Sebourn,(Fullerton) David Shawver(Stanton) Fred Smith(Buena Park) Troy Edgar,Board Chair(Los Alamitos) John Anderson,Board Vice Chair(Yorba Linda) Return to Adorns Rom M 1 General Management Administration Ir Board Services _ Public Affairs Human Resources Atlminis(mlive Facilities Engineering Operations& Administalion Services SupportServices Administration Maintenance Workbace Financial Atlministtetioo planning Adminisdation Planning Management Equipment/ (Includes Asset Plant No.1 Workfome Commands, Rebuild Management) Operations Development Purchasing& Facilities Project Plant No.2 Materials Engineering Management Office Operations Management Galati Engineering& Buildings,Grounds Information Construction &Mechanical Technology Environmental Maintenance Risk Management Compliance Instrumentatlon &Electrical Maintenance Environmental Laboratory& Ocean Monitoring r Return to A enda Re ort Management Team General Manager.........................................................................................................................................James D.Herberg Assistant General Manager.........................................................................................................................Robert P.Ghirelli Director of Engineering................................................................................................................................Nicolas Kanetis Director of Finance and Administrative Services.......................................................................................Lorenzo Tyner Director of Facilities Support Services.......................................................................................................Nicholas J.Amontes Director of Operations&Maintenance.......................................................................................................Edward M.Torres Director of Human Resources.....................................................................................................................Jeffrey T.Reed GeneralCounsel...........................................................................................................................................Bradley R.Hogin Return W Marine Rom e , • 1 June 5,2013 Honorable Chair and Board of Directors: I am pleased to submitthis update to the Orange County Sanitation District(OCSD)2013-14 approved operating budget and capital improvement program.This document provides a framework for District activities during the second year of the adopted two-year budgetfor Fiscal Years 2012-13 and 2013-14 and serves as a source of information for the District's Board of Directors,and our employees and ratepayers. The Sanitation District processes more than 200 million gallons of wastewater each day from 2.5 million residents and businesses and has a budget of approximately$400 million($150 million in operating,$150 million in capital, $100 million in debt service and other agency costs).This budget addresses rising treatment and chemical costs,aging infrastructure and increased regulatory requirements. As we are a large agency,we have many responsibilities. However,given the current economic environment faced by all government agencies,we continue our focus on containing costs while increasing our level of service. I would like to take this opportunity to highlight some of the activities that have been or will be completed during this two year budget period: Full Secondary Treatment In Fall 2012,the District completed a ten-year effort to upgrade the treatment facilities to full secondary treatment standards.The last two milestones of the Consent Decree were completed with the construction and commissioning of the Secondary Activated Sludge Facility 2 at Plant No.1 completed ahead of the stipulated deadline. New Headworks at Plant No.2 The new Headworks at Plant No.2 was fully commissioned in 2012.This$258 million project replaces the head of the treatment works at Plant No.2 where wastewater is lifted,screened,and degritted for nearly half of the 2.5 million residents served by OCSD.This critical piece of aging infrastructure was also relocated to avoid the Newport-Inglewood fault that underlies a portion of the Plant No.2 site. SARI Line Relocation We are working with the County of Orange,Army Corps of Engineers,and SAWPA to complete the relocation of the Santa Ana River Interceptor(SARI)Line.The SARI line serves to remove waste sans from the Inland Empire area to protect the groundwater quality in that area.At several river crossings,the pipe was in danger of being exposed and potentially washed out during planned storm releases from the upgraded Place Dam structures.Construction should be completed in Fall 2013. Ocean Outfall Repairs An aging and vulnerable section of the Ocean Outfall system was rehabilitated this Fall. Ajunction box located within Huntington State Beach Park was lined from within to eliminate the risks from corrosion by groundwater, effluent,and ocean air.The$24 million project follows a series of smaller repairs over the past year.This project required the use of the stand-by ouffall for 20 days during the repairs and required 24/7 construction,extensive ocean monitoring,and close coordination with cities,regulatory agencies and the public. Return to Agenda Renort BUDGETPD Workforce Planning and Development Analysis of District leadership positions and core wastewater occupations indicatesjob replacement rates over the next three years of approximately 50%and 40%,respectively. District-wide workforce planning and development activities will continue to be designed to ensure the ongoing delivery of efficient and effective levels of service to the ratepayers and to meet the District's mission. Cost Containment Despite inflationary increases on many external costs(chemicals,biosolids hauling,utilities)OCSD will continue its efforts to minimize the impact on rate-payers by aggressively negotiating our contracts,ensuring a competitive bidding environment,solid debt management and implementing efficiencies wherever possible.These efforts are reflected by the$5 million(3%)reduction in our operating budget. OCSD provides wastewater treatment,sewer and facilities maintenance,ocean monitoring and many other services with residential user fees averaging less than$30 per month,one of the lowest rates in the state while maintaining an outstanding level of service. I believe this budget update fully supports the goals included in the District's Strategic Plan and positions us well to address the challenges ahead.I look forward to leading this organization through another dynamic and productive year. /ss General Manager Orange County Sanitation District A000001(`1: FOR ' Return to Agenda Report BUDGET2013-14 PD Finance Summary Return b Aaenda Rom � 1 • Budget Overview Personnel costs will rise due to increases in group insurance and retirement premiums,as well as, The District's proposed FY 2013-14 operating and provisions of current bargaining agreements.The District capital improvement budget totals$399.0 million,or will continue to effectively manage these expenses with 7.2 percent below what was approved last year as approximately 24.6 percent of the budget allocated to the second year of the adopted two-year budget. employee casts. The decrease in the FY 2013-14 budget is primarily attributable to reductions in the capital improvement Level of Treatment budget due to the timing of construction cash outlays and reductions in various areas of the operating The agency's two treatment plants,located in Fountain budget reflecting lower cost increases than previously Valley and Huntington Beach, process about 206 anticipated. million gallons of wastewater each day generated by approximately 2.5 million people in central and northwest The budget continues to reflect the agency's ongoing Orange County.The proposed budget to operate, efforts to streamline operations.Staffing levels are maintain and manage our sewage collection,treatment proposed to be reduced by 1.75 full-time equivalent and disposal system in 2013-14 is$153.4 million. (FTE)positions or 0.3 percent below the level originally approved while operational service levels increase as The cost per million gallons of wastewater treated,(an secondary treatment facilities have come into service to industry-wide performance measurement),is expected to meet full secondary treatment standards.This increase in decrease in Fiscal Year 2013-14 to$1,993,a$59,or 2.9 efficiency was achieved in part due to the major"Beyond percent decrease from the previous 2013-14 projection 2012"staffing reorganization that was begun in August of$2,052.The decrease in the cost per million gallons 2010. is due solely to lower projected operating costs,as total operating costs are being proposed at a reduction of The District's Capital Improvement Program(CIP)budget $4.6 million,while flows are being projected the same at for Fiscal Year 2013-14 is$141.6 million.This CIP 75,920 million gallons,or 208 million gallons per day. budget finances collection system,joint works treatment and disposal system improvement projects.The$14.7 To eliminate most bacteria from being released from the million decrease from the originally proposed budget Is ocean outfall,in Fiscal Year 2002-03 the District began attributable to the timing of construction cash outlays as using chlorine bleach to disinfect the effluent and then we meet our infrastructure needs. applying sodium bisulfite to remove remaining chlorine prior to releasing the treated wastewater to the ocean. Financing To protect the animal life living in the ocean,the District The District uses long-term borrowing(Certificates of contin ues to take great measu res to li mit the chlon ne Participation[COP])for capital improvements that can not residual to essentially non-detectable levels.This mode be financed from current revenue. Before any new debt of disinfection is anticipated to continue indefinitely; is issued,the impact of debt service payments on total however,the District will investigate means to reduce or annual fixed costs is analyzed.No new debt financing eliminate the use of chlorine bleach.Beginning in Fiscal is currently being forecasted over the next ten years Year 2002-03,the addition of disinfection treatment to assist in the funding of the$2.1 billion in capital required an annual outlay for additional chemicals in the improvements required over this same time period.No operating budget.The cost for disinfection is projected to new money debt has been issued since FY 2010-11. As be approximately$0.5 million in Fiscal Year 2013-14. of July 1,2013,the total outstanding COP indebtedness will be$1.4 billion. Capital Improvement Staffing Program (CIP) The total CIP cash flow outlay for Fiscal Year 201314 is Reflecting the organization's commitment to providing being proposed at$141.6 million,down$14.7 million service at the lowest costs,the budget includes a reduction from the previously approved 2013-14 budget due to the of1.75 full-time equivalent(FTE)positions in 2013-14 to an timing of construction cash outlays. authorized staffing level of 626 FTE positions. Return to A enda Re orl BUDGET2013-14 UPDATE Over the next 10 years,the District's Capital Groundwater Replenishment Improvement Program will: (GWR)System • Rehabilitate the existing headworks, primary The OCSD Strategic Plan includes water reclamation. treatment,outfall pumping,solids handling facilities, The the Orange County Water District r redo ,we and the utility systems at both treatment plants. Witbegan operating the Groundwater Replenishment(GWR) • Replace or rehabilitate eight of OCSD's outlying System,the nation's largest water reclamation project,in pumping stations,and rehabilitate and upgrade 29 January 2008. trunk sewer improvement projects. The GWR System currently reclaims 70 million gallons • Optimize the production of power and biosolids at of water a day,delayingthe need to build a second each of the treatment plants. outfall which could cost more than$200 million.OCSD and OCWD equally shared the expenses of Phase I of Four Projects Drive the CIP the project.OCSD received approximately$44 million In Federal and State grants to offset part of the Sanitation Over the next 12 months,solids processing rehabilitation District's total costs. and upgrade projects will continue to be a significant component of the CIP.The Sludge Thickening Dewatering Phase II will increase the production of reclaimed water and Odor Control at Plant No.1 and the Solids Thickening to 100 million gallons a day.The project,which will and Processing Upgrades at Plant No.2 have expected be funded entirely by the OCWD,is anticipated to be outlays of$27.3 million and$12.9 million,respectively in completed in 2014.OCSD is directing all reclaimable 2013-14. flows to Plant No.1 in support of providing maximum Two of the larger Collection System related projects in amounts of specification water for reclamation. the 2013-14 proposed budget are the$13.8 million Sewer Service Fee Increases Dover Drive Trunk Sewer Relief with 2013-14 proposed cash outflows of$7.9 million and the$10.6 million The 2013-14 single family residential rate,the underlying Rehabilitation of Balboa Trunk Sewer with 2013-14 basis for all sewer rates,is$308.The District's rates are proposed cash outflows of$5.9 million. expected to remain well below the projected statewide Together,these four projects represent 38 percent of the average. total Fiscal Year 2013-14 proposed CIP cash flow budget of$141.6 million. Return to Agenda Rom � 1 Operating Budget Decrease Professional Services - $1.6M The operations budget for the collection,treatment,and This expense category includes legal services, disposal of wastewater is proposed at$153.4 million,a engineering services,advocacy efforts,audit,software $4.6 million,or 2.9 percent decrease from the previously programing,and labor and hygiene services. The majority approved 2013-14 budget. of the overall increase is related to increased legal services of$800,000 as a result of increase costs for Although individual expenses will increase or decrease arbitration,contracts and employee relations. slightly,the overall decrease to the operating budget is primarily attributable to five specific areas: Operating Expenses Personnel Costs - $1.7M 3" Although staffing is being proposed at 626.00 full time equivalent(FfE)positions, 1.75 FfE below the previously approved 627.75 FfEs for 2013-14,costs of salaries and wages will remain level due to existing bargaining agreements. The increase in personnel costs is primarily due to the$2.1 million increase in retirement premiums (10 percent).This increase reflects revised actuarial assumptions and low interest earnings in prior years.The Increases in retirement premiums reflect the rising costs occurring throughout California. 11 Eli Operating Materials FY 12-13 FY 13-14 FY 12-13 & Supplies - ($2.1M) Approved Approved Updated Total budgeted operating and maintenance expenses As the requirement for better quality effluent increases, will decrease$0.3 million from FY 2012-13. so does the need for chemicals to treat the region's wastewater. Operating materials and supplies are proposed to decrease,however,primarily because combined increases in chemical coagulants,odor control,and disinfection are expected to be lower than originally anticipated. Contractual Services - ($4.7M) The major component of this category is biosolids removal and transportation costs.These costs continue to rise however,cost increases in this area were less than previously anticipated. Utilities - ($S.OM) There are reductions identified in natural gas utilization because Plant Central Generation Operations automation controls have been successful in reducing natural gas usage.There is also a decrease in electricity costs related to a lower projected energy rate increase. 2013-14 BUDGET UPDATE 5 Return to Aaence Rom 1 •1 Where the Money Comes From PV Intradistrict Transfers $2.2M 0.5% Other -- $3.7M 0.9% Interest $16RM 3.9% Fees 8,Charges Funding Sources by Category (in millions) 2013-14 2012-13 2013-14 Updated Category Approved Approved Proposed Service Fees 285.7 301.8 301.6 Permit User Fees 10.5 10.9 11.3 Capital Facilities Capacity Charges 7.7 7.8 9.8 Property Taxes 64.0 64.0 73.7 Intradistrict Transfers 4.2 0.0 2.2 Interest 12.1 14.8 16.4 Other Revenue 3.3 3.2 3.7 Debt Proceeds 0.0 0.0 0.0 Total Funding Sources $387.5 $402.5 $418.7 Return to A coda Re orl 1 1 / Funding Sources by Category District's system,or an existing structure is expanded. This charge pays for District facilities in existence at the The District has a variety of revenue sources available time the charge m imposed,or to pay for the construction for operating and capital expenses.The major revenue of new facilities in the future that are of benefit to the sources are as follows: property being charged. • Beginning Balances • Service Fees Property Taxes - $73.7114 • Industrial Waste Permit User Fees The County is permitted by State law(Proposition 13)to • Connection Fees levy taxes at 1 percent of full market value(attime of • Property Taxes • Interest Earnings purchase)and can increase the assessed value no more • Other Miscellaneous Revenue than 2 percent p porno.The District receives a share of • Debt Proceeds the basic levy proportionatetowhat was receivedamount the 1976 to 1978 period less$3.5 million,the amount that Beginning Reserves - $653.2M represents the State's permanent annual diversion from special districts to school districts that began in 1992- As a result of its Reserve and Investment Policies,the 93.A 15.2 percent increase is being proposed due to the District will begin the year with a balance carried forward reallocation of property tax revenues from redevelopment from the previous year. agencies to other local governments.The District's share of this revenue is dedicated for the payment of General Service Fees - $301.6M debt service. User fees are ongoing fees for service paid by customers Intradistrict Transfers - $2.2M connected to the sewer system.A property owner,or user,does not pay user fees until connected to the sewer In accordance with Amendment No.2 to the Agreement system and receiving services.Once connected,a user is for Purchase and Sale of Capacity Rights in Treatment, responsible for his share of the system's costs,both fixed Disposal and Sewer Facilities between Irvine Ranch and variable,in proportion to his demand on the system. Water District and Orange County Sanitation District These fees are for both Single Family Residences(SFR) dated November 15,1995,ownership is adjusted and Multiple Family Residences INNER). annually to reflect the current equity percentage ownership based on sewage flows. The 2013-14 single family residential rate,the underlying basis for all sewer rates,is$308.The District's rates are Interest Earnings - $16.4M expected to remain well below the projected statewide average. Interest earnings are generated from the investment of accumulated reserves consisting of a cash flow/ Permit User Fees - $11.3M contingency,a capital improvement,a renewal/ replacement,and a self-insurance reserve. Large industrial and commercial properties that discharge high volumes or high strength wastewater are Other Revenue - $3.7M required to obtain a discharge permit and pay extra fees. These fees are forthe owner's share of the system's Other revenue includes miscellaneous revenues of costs, both fixed and variable,in proportion to the $2.3 million and self-insurance fund in-lieu premiums of demand placed on the system. $1.4 million. These fees are being increased slightly from the original Debt Proceeds - $OM FY 2013-11 budget of$10.9 million to$11.3 million due to recent improvements in the economy. Certificates of Participation(COPS)are the District's primary mechanism for financing capital projects. Capital Facilities Capacity Charges COPs are repayment obligations based on a lease or (CFCC) - $9.8M installment sale agreement.In 2013-14,the District does not anticipate any new money COP debt issues to assist CFCC is a one-time,non-discriminatory charge imposed at with the financing of the$141.6 million in capital outlays the time a building or structure is newly connected to the scheduled for this fiscal year. Return to Aaenda Rom � 1 Where the Money Goes FFI�q RIP, Operating $141.6M 35.5°% Debt Intradistrict Tr�ers Repl., Rehab. $2.2M hilb, & Refurb. 0.6% $3.3 M 0.8% Funding Uses by Category (in millions) 2013 14 20U-13 2013-14 Updated Category Proposed Approver! Proposed Capital Improvement Program $133.9 $156.3 $141.6 Replacement,Rehabilitation&Refurbishment 3.4 18.1 3.3 Debt Service 82.6 97.6 98.5 Operating Expenses 153.7 158.0 153.4 Intradistrict Transfers 4.2 0.0 2.2 Total Funding Uses $377.8 $430.0 $399.0 Return to A enda Report The District budgets its funds in six distinct areas: Debt Service — $98.5M Capital Improvement This is the cost of issuing debt Longterm debt financing Program (CIP) — $141.6M allows the DlsWct to complete large multi-year capital projects by providing funds not always immediately available. In order to provide the appropriate level of service to the District's rate payers,large capital improvements Operating Expenses — $153.4M are required.The CIP provides for the management and implementation of these improvements.Although the The proposed budget allocates resources to operate, FY 2013-14 capital improvement outlay is being maintain and manage our sewage collection, proposed to increase 5.8 percent over the FY 2012-13 treatment and disposal system and for any associated proposed amount,it is a 9.4 percent decrease from administrative ortechnical requirements. the previously approved amount for FY 2013-14.This decrease is a result of the annual CIP validation and the Intradistrict Transfers — $2.2M deferral of rehabilitation projects into the future. In accordance with Amendment No.2 to the Agreement Replacement, Rehabilitation, for Purchase and Sale of Capacity Rights in Treatment, Disposal and Sewer Facilities between Irvine Ranch & Refurbishment — $3.3M Water District and Orange County Sanitation District dated November 15, 1995,ownership is adjusted Based on its Asset Management Plan,the District annuallyto reflect the current equity percentage anticipates the replacement,rehabilitation,or ownership based on sewage flows. refurbishment lRRR)of existing capital facilities. The Asset Management Plan indicates that specific facilities Ending Reserves - $672.9M are in need of RRR that have not yet been specifically identified or where a detailed job plan has yet to have The District budgets for reserves for various potential been prepared. needs including cash flow,operating contingencies, capital improvement,and replacement and catastrophic loss.The reserve levels are governed by District policy. i r f / i � 1 Return to Aconite Rom STRATEGIC PLANNING Introduction Teamwork and Problem Solving We strive to reach OCSD goals through cooperative Driven by the mission,vision and core values of the efforts and collaboration with each other and our Strategic Plan,OCSD continues aggressive efforts to constituencies.We work to solve problems in a creative, meet the sanitation,health,and safety needs of the more cost-effective and safe manner,and we acknowledge than 2.5 million people we serve while protecting the team and individual efforts. environment where we live. Leadership and Commitment Mission Statement We lead by example,acknowledging the value of our resources and using them wisely and safely to achieve The Mission Statement is the basic foundation that our objectives and goals.We are committed to act in the defines why we exist. best interest of our employees,our organization,and our community. "We protect public health and the environment by providing effective wastewater collection,treatment, Learning/Teaching-Talents,Skills and Abilities and recycling." We continuously develop ourselves,enhancing our talents,skills,and abilities,knowingthat onlythrough Vision Statement personal growth and development will we continue to progress as an agency and as individuals. Our Vision Statement supports the Mission Statement by expressing a broad philosophy of what the Orange Recognition/Rewards County Sanitation District strives to achieve now and in We seek to recognize,acknowledge and reward the future in the delivery of services to our customers, contributions to OCSD by our many talented employees. vendors,other agencies,the general public,and each other. Operating Philosophy • Making decisions in an open and honest way The Orange County Sanitation District is a public agency to produce optimum financial,environmental that issuccessful byworkingasa team and by leveraging and societal results. our efforts with other public agencies.We think like a • Cooperating with other stakeholders to protect the business and act in the public interest,all the while ocean and regional water resources for the people emphasizing the ABC's of our operating philosophy: we serve. Accountability • Beneficially recycling wastewater,biosolids We maintain accountability for our commitments and and other resources using safe and effective for our behavior.We use measurable short-term and processes and systems. long-term goals.We use methods that regularly check • Developing the best possible workforce by our collective and individual progress in achieving providing employees with opportunities to advance our commitments.We measure and expect honest, their careers through enhanced growth, respectful,open and constructive behavior in ourselves responsibility,and professional development. and from the people with whom we work. Balance Core Values We achieve balance in what we do.Work matches Our Core Values support the Mission and Vision our capacity to perform it.We look for economies Statements by expressing the values,beliefs,and of operation without sacrificing quality or causing philosophy that guides our daily actions.They help form unreasonable risk.We consistently perform our core the framework of our organization and reinforce our work and meet our basic wastewater management professional work ethic. responsibilities while being willing to take on new initiatives that improve environmental quality or service Honesty,Trust and Respect in the community we serve. 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. Communication Return to A enda Re orl BUDGET2013-14 UPDATE We promote timely and accurate communication with OCSD Long-Term Planning the many different people who makeup our community of interest.Staff and management communicate freely, Long-Term Strategic Goals should be acceptable,flexible, openly and honestly to solve problems and to achieve measurable,motivating,suitable,understandable, constructive change. and achievable.The Long-Term Goals are the results the District seeks to achieve over a specified period, We provide our Board of Directors with accurate and usually three to five years.The Strategic Plan contains timely information about matters that impact their policy several long-term concerns requiring short and long-term making and affect the wider interests of Orange County. strategic planning. We provide opportunities for the public,the media and Several new goals were initiated from the most recent our staff to become informed about our activities and to update in November 2012 and include the following; provide input during our deliberations. • Review of OCSD's 2006 Biosolids Recycling Policy Risk Register . Odor Control Update and Action Plan Many leading organizations are formally applying risk Business Continuity Planning management processes to identify and mange risks . Chemical Sustainability across many aspects of their business. The formalization of risk management processes is a logical step towards • Workforce Planning and Development increased accountability and transparency placed on the Other interrelated, long-term goals will remain as the Board and District management. District completed the construction of facilities required Risk assessment and mitigation includes the following to reach full secondary treatment at the end of 2012. steps. Due to the completion of secondary treatment facilities, more biosolids will be produced.New centrifuge/solids • Identify and assess strategic and organization-wide processing projects should improve dewatering and risks facing the District and to develop a high level decrease the wet tons of biosolids hauled. risk register; • Identify mitigation measures that the District Currently,the land reuse options are scarce and other currently has in place; new technologies that the District is planning will become the more available,more expensive,biosolids • Propose additional mitigation measures that the management options. District considers appropriate to manage;and • Develop an action plan of responsibilities and The biosolids long-term goal will continue until a viable, timeframes for follow-up. cost-efficient,and effective method of reuse is available. The Risk Register is a compilation of the various risks facing the Orange County Sanitation District,as seen and described annually by District managers and senior management.Business Risk is defined as a threat that an event,action or inaction,will adversely affect the District's ability to achieve its business objectives and execute its strategies successfully.The District first created the Risk Register In 2006 and subsequently updated it in 2008,2009,and 2012. The top risks identified within the Risk Register Update in 2013 included 1)a seismic event damages infrastructure;2)interruption of chemical supplies in the event of a disaster;and 3)electrical failures or fires (including those resulting from a disaster)interrupting power.Managers and executive management continue to review these issues and various ways to address those that might impact OCSD. Return to Aconite Rom STRATEGIC PLANNING Strategic Goals & Levels of Service S. Climate Change/Environmental Footprint Initiative— On the following pages are the strategic goals and levels Develop an overall strategy for responding to climate of service for the next five years.New goals for this report change regulations angeinclund di including idng entification are are noted and all goals include a projected completion affects ig climate change including identification and mitigation of greenhouse gases and adapting to time.The levels of service standards are measures of any impacts to our facilitiesontl operations. service that are seen by our customers as high priorities. Completed FY 08-09 Goals antl levels of service are divided into four areas: • Environmental S[ewardship-0CSD participates a. Develop models to estimate green house gas collaboratively in the protection of regional water and traditional pollutant emissions for resources for the benefit of the people we serve. determination prdioivur environouse as model (Functional predictive greenhouse gas model • Business Principles—OCSD makes every decision completed.)Completed in FY 10-11 based on short and long-term environmental, 6. Reclaiming Santa Ana River Interceptor Line societal,and financial impacts(the triple bottom line). (SARI)Flows—Meet with stakeholders,develop a list • Wastewater Management—OCSD beneficially reuses of obstacles that need to be overcome to reclaim and recycles water and other resources using safe the SARI Line and develop a strategy to obtain and effective wastewater systems. regulatory approval of reclaiming SARI Line flows. • Workplace Environmenti provides an This goal was canceled in FY 08-09 due to inability environment of partnership,growth,opportunity, to obtain regulatory approval. responsibility and accountability. Business Principles Goals Completed Since Adoption of the 1, Sewer Rate for Green Development—Submit for 2007 Five-Year Plan Board approval an amendment to sewer rate ordinance with incentives for green developments. Environmental Stewardship Completed FY 07-08 2. Complete Facilities Master Plan Update—Complete 1 Contaminants of Potential Concern(CPC)--Complete three of a an and obtain update of the.Completed Master report hasetegsan recommendations, develop plan and obtain Board approval Completetl FY 07-08 report on soufinrce coat of s race y if the are develop initial source control strategy tthemare CPCs itlentlfe0 3. Enterprise Information 7echnologyS[ra[egic Plan— that require control.Completed FY 07-08 Complete a District-witle Information 2 Management System for Environmental Technology Strategic Plan.Completed FY 09-10 Compliance—Implements management control 4. Updating OCSD's Risk Register—Review and update system for environmental compliance information OCSD's risk register to include an assessment of that incorporates a dashboardstyle report. technical,regulatory,financial,and political risks Completed FY 07-08 (among others)and possible mitigation strategies. 3. Engine Emission Compliance—Complete study to Completed FY 07-08 evaluate alternatives for complying with lower 5. Annex Unincorporated Areas—With Board emission limits in the South Coast Air Quality concurrence,annex unincorporated areas into Management's Rule 1110.2.Initiate planning and OCSD's service area.Completed FY 07-08 design of demonstration testing of the most 6. Review lntersgencyAgreements—Conducta promising technology(s)identified in the study. comprehensive review of agreements with the Completed FY 07-08 Santa Ana Watershed Project Authority and Irvine 4. Fuel Cell Evaluation—Start up 300 kW demonstration Ranch Water District,and,if appropriate,reopen for unit Completed FY10-11 discussion.Completed FY 09-10 a. Evaluate cost feasibility of replacing or 7. Strategic Business Plan—With Board concurrence, supplementing CGS engines with fuel cells. annually update and implement the Strategic Plan Completed FY 10-11 and Business Plan.Completed FY 10-11 Return to A enda Re orl BUDGET2013-14 UPDATE 8. Business Accountability Charters—Create Business 2. Improve the Sanitation District Security—Provide Accountability Charters for each department, long-term security enhancements at both treatment consistent with those developed by managers and plants and within OCSD's Collections System. supervisors.Completed FY10-11 Completed FY 07-08 9. Chemical Supplies—Develop a Chemical 3. Safety and Health Strategic Plan—Develop and Sustainabilry Plan that provides OCSD with options implement a Safety and Health Strategic Plan for all for obtaining wastewater treatment chemicals during OCSD activities.Completed FY08-09 chemical shortages,emergencies or complete 4, Human Resources Strategic Plan—Design,develop stoppages.Completed FY 10-11 and implement human resources policies,practices, 10. Full-Cost Recovery 2010-11—Conduct a systems and tools to ensure OCSD has a workforce comprehensive review of the Sanitation District's that meets future needs of OCSD and the public it Urban Runoff Program to ensure a fair share serves.Completed FY 08-09 recovery of costs for services.Completed in FY 10-11 S. Succession Plan—Implement the Succession 11. Full-Cost Recovery 2012-13—Implement a direct Management Plan including management training charging mechanism to recover the full cost of urban and the creation of a Leadership Academy. runoff treatment starting July 1,2013 when the new Completed FY 08-09 rate structure is in place.Completed In FY 12-13 6. North County Yard--Open the North County Wastewater Management Maintenance Yard and complete the relocation of selected staff and equipment to the facility. 1. Groundwater Replenishment System—Maximize the Implement flex space for added agency-wide needs production of GWR System product water to augment as appropriate.This goal was canceled in FY 10-11 and protect the Orange County groundwater basin and the facility is leased. with a goal of 70 mgd. Completed FY 08-09 2. Sustainable Biosolids Program—Complete new Environmental Stewardship Goals in-county Compost Take-Back Program Plan strategy. OCSD participates collaboratively in the protection of Completed FY 07-08 regional water resources for the benefit of the people we a. Evaluate the feasibility of deep injection/ serve. methane recovery including commissioning a 1, Santa Ana River Interceptor Line Relocation—Work study of the geological formations below Plants in conjunction with the County of Orange andthe 1 and 2,and availability and acceptability of any Federal Government to relocate the Santa Ana River existing wells.Completed FY 08-09 Interceptor Line by June 2013. L. Evaluate option of processing some biosolids at Targeted for completion in FY 12-13 the City of Los Angeles Terminal Island 2. Engine Emission Compliance—Implement capital demonstration well.Completed FY 08-09 improvements or operational modifications in order 3. Implement Energy Master Plan—After the completion to achieve compliance. of the plan,assess final recommendations to ensure Targeted for completion in FY 13-14 adequate power resources and energy management. 3. Fuel Cell Evaluation—Evaluate performance and fuel Completed FY 09-10 clean up effectiveness. 4. Disinfection of Final Effluent—Develop a cost Targeted for completion in FY 12-13 effective program to sustain protection of public health associated with bacteria in the effluent and incorporate program elements into our NPDES Permit.Completed in FY 10-11 Workplace Environment 1. Space Planning Study Recommendations—Complete relocation of staff housed in Information Technology Trailers to the Administration Building, Control Center and Building 6. Completed FY07-08 Return b Anil Rom STRATEGIC PLANNING Environmental Stewardship Levels of Service OCSD will protect public health and the environment FY 11-1.2 Results Level of Service Target Accept dry weather urban runoff diversion flows without imposing fees. 1.8 mgd Up to 4 mgd Maximum off site odor Impact 42 D/T 14 D/T • Reclamation Plant No.1 • Treatment Plant No.2 48 D/T 17 D/T (Target dates will be established as part of the Odor Control Master Plan update scheduled for 12,12014.) Air emissions health risk to community and employees, R < 10 Parana million people(for each treatment plant) No Notices of Violation(NOVs)with air,land,and water permits 2 0 OCSD will be a good neighbor FY 11-12 Results Level of Service Target Odor complaint response: • Treatment Plants within 1 hour 100% 100% • Collection System within l working day 700% 100% Number of odor complaints: 1 O* • Reclamation Plant No.1 • Treatment Plant No.2 4 0* • Collection System 12 34 *New target-under normal operating conditions- Respond to collection system spills within 1 hour 100% 100% Business Principles Goals OCSD makes every decision based on short and long-term environmental,societal,and financial impacts (the triple bottom line). 1. Local Sewer Transfers-Complete the transfer of local sewers to member agencies and cities,focusing on completion of the Tustin transfer.Targeted for completion in FY 12-13 2. Five-Year Rate Plan—Prepare an updated 5-year rate schedule for Board consideration to go into effect July 1,2013. Targeted for completion in FY 12-13 3. Chemical Sustainability(newrEnsure a reliable and sustainable chemical supply using multiple vendor contracts to reduce the risk of supply disruption while benefningfrom competitive pricing.Targeted for completion In FY 12-13 4. Business Continuity Planning(new)--Develop a Business Continuity Plan(BCP)that will define how OCSD will continue its everyday business functions after an event that interrupts normal operationsfor an extended period of time. Targeted for completion in FY 12-13 Return to A ends Re orl BUDGET2013-14 UPDATE Business Principles Levels of Service OCSD will exercise sound financial management FY 11-12 Results Level of Service Target COP service principal and interest <0&M expenses <0&M expenses Annual User Fees Sufficient Sufficient to cover 0&M Actual collection,treatment,and disposal costs per million 8.7% <10%of budget gallons in comparison with the budget under budget Annual variance from adopted reserve policy 0.1492 >Budgeted Reserves Maintain AAA Bond Rating 100% 100% OCSD will be responsive to our customers FY 11-12 Results Level of Service Target Respond to public complaints or inquiries regarding 100% 100% construction projects within one working day New connection permits processed within one working day 100% >90% Wastewater Management Goals OCSD beneficially reuses and recycles water and other resources using safe and effective wastewater systems. 1. Sustainable Biosolids Proi a. Conduct research to reduce the amount of Biosolids produced and increase digester gas production. Targeted for completion in FY 12-13 b. (new)Assess and ravise the 2006 Biosolids Board Resolution(Policy)to reflect recent developments,experiences, and circumstances concerning biosolids management.Targeted for completion in FY 12-13 2. Odor Control Update and Action Plan(modified)—Assess the performance of current odor control systems,validate the appropriate LOS,align future odor control improvements with asset management objectives,and update our Capital Improvement Program for odor control to meet our LOS goals.Targeted for completion in FY 13-14 3. Ocean Protection—Undertake studies to determine the cause of benthic community changes near the ocean ca ll and take corrective action to return affected areas to reference conditions.Completed (Board presentation in FY2013-14) Return to Aaeuda Rom STRATEGIC PLANNING Wastewater Management Levels of Service OCSD will provide a safe reliable effluent for recycling FY 31.12 Results Level of Service Target Concentration of emerging chemical constituents 11.0 NDMA< 150 ppt of concern in Plant No.1 secondary effluent 11.24 4-Dioxane<10 ppb Meet Gi specification requirements for Plant 1 3.0 5 NTU secondary effluent Thirty-day geometric mean of total coliform bacteria 352.5 < 1,000 mpn in effluent after initial dilution of 250:1 Compliance with core industrial pretreatment requirements 100% 100% Meet secondary treatment standards BOD 12 mg/L CBOD 25 mg/L TSS 8.9 mg/L TSS 30 mg/L OCSD will manage flows reliably FY11-12 Results Level of Service Target 0 per year during Frequency of unplanned use of emergency one-mile 0 dry weather (78-inch diameter)outfall Sanitary sewer spills per 100 miles 0.23 <2.1 Contain sanitary sewer spills within 5 hours 100% 100% OCSD effluent will be recycled FY 11.12 Results Level of Service Target Provide up to 104 mgd specification effluent to the Groundwater Replenishment System 89 mgd 104 mgtl OCSD will implement a sustainable biosolids management program FY 11-12 Results Level of Service Target National Biosolids Partnership Certification for 5 year Biosolids Management Program recertification Maintain certification July 2008 Biosolids recycled 0tons to landfill <100 tons per day (New Target Level of Service through 2017) 100%recycled to landfill Respond to all biosolids contractor violations 100% 100% within a week of violation notice Return to A enda Re orl BUDGET2013-14 UPDATE Workplace Environment Goals OCSD provides an environment of partnership,growth,opportunity,responsibility and accountability. 1. Workforce Planning and Workforce Development(Updated)—Design and implement comprehensive workforce planning and development activities to improve workforce capability,adaptability,efficiency,and accountability. Ongoing plan for preparing employees for the future. Workplace Environment Levels of Service OCSD will take care of Its people FY 11-12 Results Level of Service Target Training hours per employee 40 45 per year Employee Injury Incident rate accidents per 100 employees 4.3 Industry average 4.6 Meet mandatory OSHA training requirements 91% >95% Hours worked since last lost work day 140,000 1,000,000 Achieve annual agency target of days away from work,days of restricted work activity,or job transferred as a result of a work- 3.0 2.5 related injury or illness r/ Return to Mends Rom CIP Budget Request Summary Following is a chart for the 2013-14 Proposed CIP Cash Flows and the total Project Costs for all proposed This is an update to the Fiscal Year 2012-14 two-year projects,by project phase,in millions: budget.In preparation for the 2013-14 update,the District's Board of Directors reviewed the proposed Total changes to the CUP to gain an understanding ofthe 201344 Project Impact of the CIP to the current rate structure program. Current Status Cash Flow Costs Implementation of secondary treatment standards was Future Planning 12..1 $1,166.7 30 . completed in December 2012.With the completion Design 30.7 270 270.6 of this important milestone,the District is focusing Construction 97.1 1,186.3 Its efforts on the continued refinement of its asset Capital Equipment 1.7 16.0 management based engineering planning process.This Total $141.6 $2,662.3 process has been used to propose project modifications to more efficiently package projects for execution.As an example,four individual digester gas handling projects are proposed to be combined into a single coordinated project.District staff is also working to carefully identify all the necessary scope of work items in the planning phase of projects to avoid future change orders and other project risks.Several projects budgets have been increased to account for newly discovered issues. One == = new project is proposed for addition to the Fiscal Yearei 2013-2014 budget to upgrade the communication infrastructure associated with the District's process control computer systems. This budget update also includes the identification of two new study projects.These study projects are based on the District's condition assessment program and asset management planning.These CUP studies increase the amount of the CIP by$0.8 million.However,these projects will be funded from the future rehabilitation, renewal,and replacement line item in OCSD's existing budget and will not Impact OCSD user rates. In addition, District staff has reviewed each ongoing CIP project to ensure that the scope of the project is appropriate,and that the cost estimates are accurate. The validated CIP includes 87 large capital projects and 50 special projects with a 20-year expenditure of$1.792 billion.This total represents a$15 million increase from the 2012-14 CIP estimate. The proposed 2013-14 CIP budget is organized by treatment and collection system processes and areas. The funds requested for the current cash flow budget total$141.6 million,an increase of 6 percent from last year's cash flow request of$133.9 million.The current year cash flow is part of an overall total cost of$2.662 billion for active projects. Return to A enda Re orl BUDGET2013-14 UPDATE There are currently 33 projects in the Planning Phase are the Sludge Thickening Dewatering and Odor Control with proposed capital outlay spending in 2013-14. at Plant No.land the Solids Thickening and Processing Two of the larger 2013-14 cash flow projects in Upgrades at Plant No.2 with projected current year the Planning Phase are the SARI Rock Stabilizers expenditures of$27.3 million and$12.9 million, Removal and the Research Program with current respectively. year projected expenditures of$1.4 million and$1.3 Standard contingency factors have been applied to million,respectively.Atotal of$166.7 million in capital Improve budgeting.The rates of 20,20,and 10 percent outlay,currently listed within the Planning Phase,is have been applied respectively to the estimates made being projected for future budgets based on the capital during the project development,design,and construction improvement needs that are identified through the 2009 project phases.This reflects standard practice for Facilities Master Plan and the CIP Validation Studies. estimating construction project costs. There are currently 18 projects in the Design Phase Following within the appendix are descriptions and with proposed capital outlay spending in 2013-14. justifications for the capital improvement projects which Two of the larger projects in the Design Phase are the are new projects proposed for this Fiscal Year 2013-14 Rehabilitation of Balboa Trunk Sewer and the Gisler-Red budget update.They give the reader a brief overview of Hill Trunk Improvements-Reach B with projected current each project,the budget for the total project,and any year expenditures of$2.7 million and$1.3 million, potential changes in the operational budget resulting respectively. from the implementation of the project.For a description There are currently 38 projects in the construction phase of ongoing projects,see Section 8 of the Fiscal Years with proposed capital outlay spending in 2013-14.The 2012-13 and 2013-14 Budget. two most significant projects in the construction phase r ® 7 t Return to Aaenda Rom Debt Financing This apportionment of the ad valorem tax was consistent with and pursuant to the Revenue Program Due to the magnitude of identified future annual capital adopted in April 1979 to comply with regulations of the and operations and maintenance expenditures,it is Environmental Protection Agency and the State Water necessary that the District utilize debt financing to meet Resources Control Board and in accordance with COP its total obligations. Debt financing allows the District to documents and Board policy. meet projected construction schedules while achieving the lowest possible user fees,as well as long-term The District Maintains stability in future sewer service fee rates. Its AAA Rating Certificate of Participation (COP) The District's bond rating is"AAA"from both Standard& The primary debt mechanism used Is Certificate of Pears and Fitch Ratings.An"AAA"Rating is the highest Participation(COP).COPS are repayment obligations for a government agency. In order to maintain this rating, based on a lease or installment sale agreement.The COP the District adheres to its 2001 Debt Policy and coverage structure was selected over other structures because ratios requirements.This Board-adopted policy serves as COPS are not viewed as debt by the State of California, the agency's guide in the management of existing debt as the purchaser does not actually receive a"bond,"but and in the issuance of future debt. rather a share In an installment sale arrangement where Debt Ratios the District serves as the purchaser.COPS can be issued with fixed or variable interest rates. The District does have contractual covenants within As of July 1,2013,the total outstanding COP the existing COP agreements which require minimum indebtedness will be$1.4 billion. coverage ratios of 1.25.The minimum coverage ratio is the ratio of net annual revenues available for debt service Build America Bonds Financings requirements to total annual debt service requirements for all senior lien COP debt.The coverage ratio for senior The District issued the$60.0 million Wastewater lien COP debt is being proposed at 2.62 for Fiscal year Revenue Obligation,Series 2010A in May 2010 and 2013-14. the$157.0 million Wastewater Revenue Obligations, Series 2010C in November 2010 as"Build America Future Financings Bonds"(BABs)fixed rate debt. In Fiscal year 2013-14,no new COP debt issuances are The American Recovery and Reinvestment Act of 2009 being proposed.The proposed CIP budgeted cash outlays created a new financing product,BABs,for the municipal of$141.6 million in this fiscal year would be funded from issuer.BABs are issued as higher interest taxable bonds; reserves and other revenue sources. 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. The 35 percent subsidy is available for certain debt issuances prior to January 1,2011. Dedicated Funding Source In 1992 and 2004 the Board of Directors formalized the dedication of certain funding sources. To assure 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 Return to A enda Re orl ♦ a a � Summary of Operating & Maintenance Expenses 2013-14 2012-13 2(1314 Updated Category Approved Approved Proposed Salaries and Benefits $94.3 $96.3 $98.0 Operating Materials&Supplies 19.3 19.8 17.7 Contractual Expenses 26.1 27.9 23.2 Repairs and Maintenance 11.2 11.9 11.8 Utilities 8.2 8.8 7.8 Professional Services 3.1 2.4 4.0 Other Materials,Supplies,Services 3.1 3.2 3.2 Self-Insurance Requirements 2.1 2.2 2.2 Training and Meetings 1.4 1.2 1.1 Research and Monitoring 0.8 0.9 0.8 Administrative Expenses 1.4 1.2 1.3 Printingand Publications 0.5 0.4 0.5 Capital Grants to Member Agencies 0.0 0.0 0.0 Cost Allocation (17.8) (18.2) (18.2) Total Operating Expenses $153.7 $158.0 $153.4 Salaries, Wages & Benefits - $98.OM Operating Materials & Salaries&Wages-This category includes salaries for Supplies - $17.7M 626 full time equivalent(FfE)staff positions as well as Disinfection Chemicals-The largest cost related to Directors'pay.The vacancy factor applied for the budget disinfection is for chemicals,specifically bleach. update was 3 percent based on trend information. Provision has been made in these salary projections Sodium Hypochlorite(Bleach)-Approximately 51%of in order to comply with the terms of the most recently the process bleach is used for effluent disinfection. The adopted MOUs. othertreatment plant bleach usage is for disinfection of plant water and the control of filamentous organisms in Retirement-The District's employees are members activated sludge in the secondary treatment process. of the Orange County Employees'Retirement System (OCERS).The employer's required contribution rate has Effluent disinfection bleach use has decreased by been increased from 27.47 percent(Plans G&H)and over 70%after the new secondary facilities became from 26.69 percent(Plan B)to 31.95 percent and 30.77 operational. The decrease occurred because there is percent,respectively,in 2013-14. no longer primary bleach dosing at Plant 2 and because there are less solids in the final effluent.It is anticipated Group Insurance-Includes the District's share that the District will use approximately 835,000 gallons (approximately$15,800 per employee)of employee of process bleach in FY 2013-14 at a budgeted amount medical plan benefits for the indemnity plan,prepaid of$421,000. HMO plans,the dental insurance plan,and the life and disability insurance premiums.The proposed budget includes a 11 percent increase for the medical plans. Return b Anenda Rom assuall fin.. • � ♦I-�O �•J. ,` Chemical Coagulants-Anionic polymer is added to Contractual Services - $23.2M the influent wastewater along with ferric chloride via the physical/chemical treatment systems at both pla ms to The major component of this category is biosol ids removal improve solids removal efficiencies in the primary clarifier and transport costs.Contracts have been executed basins.Cationic polymer is added to digested sludge with firms for agricultural reuse of residual solids.Total prior to dewatering to cause the sludge to coagulate estimated biosol ids production for Fiscal Year 2013-14 is to improve the sludge and water separation process. 276,000 wet tons.The proposed 2013-14 budget reflects Cation is polymer is also added to the waste activated adecrease of$3.4 million primarily due to the termination sludge Dissolved Air Flotation Thickeners(DAFTs)to of an agreement with a company that was contracted to improve solids coagulation. process biosolids into an energy fuel. The usage costs for this group of chemicals is proposed This category also includes appropriations for grounds at$576,000 less than previously approved for 2013-14. keeping services,janitorial services,security services, toxic removal services,outside laboratory services,trash Odor Control Chemicals-The District uses hydrogen pickup,plant site sweeping,temporary help to level out peroxide and sodium hydroxide(caustic soda)as the periodic increases in staff workload,a maintenance primary odor control chemicals within the treatment contract for the Plant No.2 oxygen generation plant, plants;ferrous chloride,magnesium hydroxide,calcium digester cleaning and disposal services,line cleaning and nitrate and caustic soda are the primary odor and closed-circuit television(CCTV)services. corrosion control chemicals used within the collection system. Repairs and Maintenance - $11.8M A decrease of$876,000 from the previously approved This item,which is for parts and services for repair 2013-14 budget of$8.7 million is being proposed for of plant and collection facilities and annual service odor control chemicals. contracts,reflects an authorization to allow for Return to A coda Re orl BUDGET2013-14 UPDATE routine equipment maintenance and is expected to Professional Services - $4.OM decrease slightly. Professional Services includes General Counsel, Utilities - $7.8M special labor counsel,legislative advocacy,audit and miscellaneous accounting services,engineering,and The overall cost for utilities is a significant component other technical consulting services. of the operating budget.The overall cost for utilities is anticipated to decrease by$1.0 million compared with Other Material, Supplies, the previously approved 2013-14 budget. Services - $3.2M • Natural Gas- Natural gas is purchased to supplement the digester gas that is used to run the central This category of costs includes the in-lieu insurance generation facilities.The 2013-14 budget shows premium used to maintain the level of accumulated a decrease of$164,000 reflecting lower levels of reserves for the property and general liability self- natural gas needed because central generation engine insurance programs.This in-lieu cost for 2013-14 is automation controls at Plant No.2 allow the engines proposed at$0.9 million. to respond to lower digester gas production without Expenses not chargeable to other categories,such having to shut down an engine.Thus the Plant No.2 as freight and miscellaneous items,and annual boilers can run on digester gas all the time, reducing regulatory fees assessed by the South Coast Air Quality natural gas usage. Management District(SCAQMD),are recorded within • Electricity- Electricity is the largest utility cost this category. incurred by the District and is used to run the plant processes.The 2013-14 budget reflects a decrease of $690,000. Return to Aaenda Rom FANNIE- Insurance - $2.2M Administrative Expenses - $1.3M The District's outside excess general liability insurance These accounts include supplies,postage,technical coverage is$30 million per occurrence with self- journals and publications,forms,small office equipment, insurance retention of$250,000 and$500,000 for and small computer items that cost less than$5,000 per employment practices liability insurance. item and exclude items that are capitalized. The District's property insurance coverage of$1 billion Printing and Publication - $0.5M for perils of fire and$300 million for perils of flood is subject to a self-insurance retention of 5 percent per unit The budget provides for in-house and outside of insurance up to$250,000 for fire and$100,000 for reproduction costs and reflects an expanded flood.The District is totally self insured for earthquake. management information system and administrative requirements as well as a continuing demand by the An appropriation of$1.4 million for in-lieu premium public and regulatory agencies for information.The contribution charged to operations is recommended for continuing effort of the Public Affairs Office to improve the Property and General Liability Program. public education programs about the District's activities This will serve to maintain the reserves balance. is also reflected in the budget for this line item.This group of accounts also includes costs for photo Training and Meetings - $1.1M processing,advertisements,and notices. Given current economic constraints,employee travel is Cost Allocation - ($18.2M) now subject to increased scrutiny.All meeting request budgets have been reviewed for necessity,duplication, This represents direct labor and benefit charge outs and and redundancy and have been limited to a responsible materials,supplies and services cost allocation to the level. capital project where the related work was performed. The 2013-14 proposed budget for training has been decreased slightly.Agency-wide training activities are coordinated through the Human Resources Department and safety training activities are coordinated through the Risk Management Division. This category includes ongoing technical and safety training and materials for staff, required training for computerized plant monitoring and control systems and training to allow for a more adaptive and flexible work force.Cost savings have been achieved in part through increased use of on-line training. Research and Monitoring - $0.8M Research and monitoring expenditures consist of contract services to carry out the extensive ocean monitoring program required by the EPA under provisions of the District's ocean discharge permit(NPDES)permit; air quality monitoring costs;the District's contribution to the Southern California Coastal Water Research Project(SCCW RP)being conducted under a joint power 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. 2013-14 BUDGET UPDATE IMM Tft a�� I i � � 25 Return b Agenda Rom DEPARTMENTS Expenses by Department (in millions) 2013-14 2013-14 20U 13 Originally Percent Updated Percent Department Budget Proposed Change Proposed Change Administration Units: Office ofthe General Manager $3.7 $3.7 0.0% $3.8 2.7% Human Resources 4.5 4.2 (6.7%) 4.2 0.0% Administrative Services 22.2 21.6 (2.7%) 22.9 6.0% Sub-Total $30.4 $29.5 (3.0%) $30.9 4.7% Operating Units: Facilities Support Services $25.7 $27.4 6.6% $25.2 (8.0%) Engineering 8.9 8.9 0.0% 9.7 9.0% Operations&Maintenance 86.5 89.9 3.9% 85.5 (4.9%) Sub-Total $121.1 $126.2 4.2% $120.4 (4.6%) Total $151.5 $155.7 2.8% $151.3 (2.8%) Staffing by Department(FTEs) 2013-14 2013-14 2012-13 Originally Percent Updated Percent Department Budget Proposed Change Proposed Change Administration Units: Office oflhe General Manager 14.00 14.00 0.0% 14.00 0.0% Human Resources 16.00 16.00 0.0% 18.00 12.5% Administrative Services 110.75 110.75 0.0% 110.00 (0.7%) SutrTotal 140.75 140.75 0.0% 142.00 0.9% Operating Units: Facilities Support Services 81.00 81.00 0.0% 78.00 (3.7%) Engineering 125.00 125.00 0.0% 123.00 (1.6%) Operations&Maintenance 281.00 281.00 0.0% 283.00 0.7% Sub-Total 487.00 487.00 0.0% 484.00 (0.6%) Total 17Es 627.75 627.75 0.0% 626.00 (0.3%) Return to A enda Re orl BUDGET2013-14 UPDATE Administration Units Operating Units Office of the General Manager Facilities Support Services Budget$3.8M -Staffing 14.00 FfEs Budget$25.2M -Staffing 78.00 FfEs The Office of the General Manager provides general The Facilities Support Services Department provides fleet oversight of all Sanitation District operations and and heavy equipment services for the District,handles incorporates functions in the areas of Public Affairs non-public works construction support and projects,and and Board Services.This office reports directly to the operates and maintains the regional collection system Board of Directors.The budget includes two unfunded facilities providing reliable collection and transportation Management Discretion positions. of wastewater,and efficient,safe operation and maintenance of the system in the 463 square mile area. Human Resources The budget reflects a reduction of 3.00 FTEs as a result Budget$4.2M -Staffing 18.00 FTEs of transferring three positions to other departments. The Human Resources Department works with Engineering management and employees to ensure an effective and Budget$9.7M -Staffing 123.00 FfEs productive employment relationship.This department reports directly to the General Manager.The budget The Engineering Department is responsible for the reflects an increase of 2.00 FTEs as a result of positions planning,design and construction of the District's transferring from other departments. capital improvement program as well as environmental compliance and asset management.The budget reflects Administrative Services a decrease of 2.00 FfEs as a result of transferring Budget$22.9M-Staffing 110.00 FrEs positions to other departments. The Administrative Services Department maintains Operations and Maintenance financial oversight and administration of all District Budget$85.SM -Staffing 283.00 F7Es funds and accounts and is responsible for contract administration and procurement,oversees all District The Operations and Maintenance Department is computer, networking and customer support issues,and responsible for operation of the District's two wastewater identifies and manages potential risk to the organization treatment plants as well as the environmental laboratory to create a safe,healthy and secure environment for and ocean monitoring.The budget reflects a net increase staff,contractors,and visitors.The budget reflects a of 2.00 FfEs due to the elimination of one position net decrease of 0.75 FTE due to the elimination of one offset by the net transfer in of three positions from other position partially offset by the conversion of a part-time departments. position to full-time. •FTE=Full-Time Equivalent Position Return to Aconite Rom GENERALOFFICE OF THE M. Human Boa rdo` Rewal Diroctors Administrative Services General General Counsel Office Manager Facilities Support5ervices Engineering Operotlons& Maintenance Service Description The Office of the General Manager 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 Office of the General Manager reports the progress in meeting the established goals to support OCSD's mission,and provides general oversight of operations.The office reports directly to the Board of Directors. In addition to the line departments,this department oversees District-wide functions in the areas of Public Affairs and Board Services(Clerk of the Board). Public Affairs provides services and implements programs to meet the communications needs of OCSD's internal and e#ernaI audiences.The division plans and implements media relations,website content,community relations, community education and outreach,employee newsletter,intranet development,corporate identity program,collateral material and graphics development,presentation development,and crisis communications. Board Services includes the Clerk of the Board office.Services include supporting the Board of Directors,acting as filing officer for Statement of Economic Interests,receiving and processing summons and complaints fled against OCSD. Return to A enda Re orl Office of Fiscal Year r13-14 Budget Update Operating Expense 201314 2013-14 2012-13 Originally Updated Category Budget Proposed Proposed Personnel $2,176,900 $2,215,100 $2,061,700 Supplies 266,980 265,090 299,040 Professional/Contractual services 426,000 327,000 539,000 Research&Monitoring 0 0 0 Repairs&Maintenance 1,500 0 1,560 Utllltles 122,000 121,000 108,000 Other 845,500 848,100 866,640 Cost Allocation (96,500) (96,500) (96,500) Total $3,742,380 $3,679,790 $3,780,190 Budget Overview F- Authorized HE Positions In Fiscal Year 2012-13,the General Manager reorganized the Board Services Managers 2.00 and Public Affairs Divisions.This reorganization resulted in the transfer of the r r Public Affairs Manager position to Engineering.The budget for the General r Manager's Office for Fiscal Year 2013-14 increased slightly compared with the Other rr originally proposed budget primarily due to higher legal costs partially offset by the transfer of the Public Affairs Manager position to Engineering along with Total 14.00 funding for advocacy efforts. Stafling Trends Performance Objectives/Measures • Maintain OCSD staffing at or below 626 FfEs. • Maintain 100 percent compliance with terms and conditions of our permits and local,state and federal regulations. • Expend minimum 90 percent of project annual Capital Improvement Program cash flows for Fiscal Year 2013-14. • Increase OCSD's social media presence. • Provide comprehensive public outreach for the Newport Beach Construction Program. • Provide accurate and timely board/committee agenda packages to the Board of Directors. • Undertake a compressive,collaborative review of the current Strategic Plan and produce a new 5-year Strategic Plan.. Return to Acorns Rom •1 • General Management Administration Board of Directors Pdminislrative Services General General Counsel Office Manager Facilities Support Services Engineering Dpe2lions& Maintenance Service Description The Human Resources Department is responsible for working with management and employees to ensure an effective and productive employment relationship.The Human Resources Department is committed to supporting a workplace environment grounded in fair and equitable employment decisions and practices. This department is responsible for all aspects of human resources management and labor/employee relations.It serves as the in-house advisor to the General Manager,executive staff,OCSD departments,and line staff. Delivering services with a high-level of customer satisfaction is a key objective.The Human Resources Department administration oversees delivery of the workforce planning and workforce development function within Human Resources. Workforce Planning activities include recruitment and selection,compensation and classification,and benefit and leaves in support of the major goal of equal employment opportunity for all persons on the basis ofjob-related merit. Workforce Development activities include performance management,training and development,employee relations and labor relations by supporting each operating unit and its employees in achieving their full potential. Return to A enda Re OF( Human Resources Department Fiscal Year 113-14 Budget Update Operating Expense 2013-14 2013-14 2012-13 Originally Updated Category Budget Proposed Proposed Personnel $3,590,370 $3,634,470 $3,815,900 Supplies 1,113,550 846,900 242,230 Professional/contractual Services 402,000 343,500 789,480 Research&Monitoring 0 0 0 Repairs&Maintenance 0 0 0 Utilities - 0 0 0 Other 50,020 50,020 51,540 Cost Allocation (667,900) (667,900) (667,900) Total $4,488,040 $4,206,990 $4,231,250 Budget Overview Human Resources became a department during Fiscal Year 2010-11.There Authorized IFTE Positions are 18 full-time equivalent positions authorized in this department.The Managers 2.00 department budget for Fiscal Year 2013-14 is approximately$4.2 million. 00 P• Performance Objectives/Measures Total 18.00 • Support departments i n the development of to ulti-year workforce planning requirements. Staffing Trends • Support departments in the development of multi-year workforce development plans. 2000 1800 • Support departments in the development of multi-year succession plans. • Manage overall expenditures to within 96- 100 percent ofthe department's approved budget. • Implement a comprehensive employee relations and labor relations training program. hours of Training solely ls.no na,nlmnan.e zeal Technical d.NB Corfin, a 1"m Wal 693 1,1-oz, — Regulatory .11 CIP 369 .th., In 7 I a 5,000 later, 15,000 za,OW The Human Resources Department provides approximately 25,000 hours of employee training annually. Return to Agenda Rom General Management Administration HumanAdministrative S vices Boom of Zmclal Resoumes Directors Management Purchasing& Material General General Management Counsel Office Manager Information Facilities . ehn log, Support Services Engineering Dperolions& Maintenance Service Description The Administrative Services Department oversees all of OCSD's finance,contracts/purchasing,risk management, and information technology activities,including both day-today 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 five 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,and coordinating the capital and operating budget process. Contracts,Purchasing,&Materials Management is responsible for contract administration and procurement for all departments.Additionally,this division manages OCSD's warehouses,receiving and maintaining inventory,and distributing 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. Risk Management identifies and manages potential risk to the organization and provides solutions for mitigation or reducing the risk to acceptable levels.The Risk Management Division works to create a safe,healthy,and secure environment for OCSD staff,contractors,and visitors.Additionally,it provides the support for management and employees to take ownership of identifying and controlling risk and cost-effectively addressing safety, health and security issues. Return to A enda Re orl Administrative Departmen Fiscal Year 113-14 Budget Update Operating Expense 2013-14 2013-14 2012-13 Originally Updated Category Budget Proposed Proposed Personnel $15,826,400 $16,068,700 $16,735,300 Supplies 1,904,180 1,401,140 1,550,720 Professional/Contractual Services 2,611,010 2,235,770 2,587,630 Research&Monitoring 0 0 0 Repairs&Maintenance 1,301,500 1,351,500 1,361,190 Utilities 310,000 320,000 300,000 Other 1,410,980 1,411,050 1,518,310 Cast Allocation (1,174,210) (1,177,110) (1,177,110) Total $22,189,860 $21,611,050 $22,876,040 Budget Overview The Fiscal Year 2013-14 proposed Administrative Service Department budget Authorized HE Positions reflects a 5.9 percent increase over the originally proposed budget primarily Managers 6.00 due to increases in Salaries,Wages,and Benefits,as well as increases in r• Professional Services to support contracting and safety initiatives. Administrative/Clerical 38.W Technical Staff 2.00 Performance Objectives/Measures Total =.00 • Comply with the California State Government Code 100 percent of the time with all treasury investments. Stafflng Trends • 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 45 days, 90 percent of the time. • All debt service payments will be paid 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. • Successfully revise Delegation of Authority and have approved by all Committees and Board. • Continue completion of the Information Technology Strategic Plan(ITSP)Planned Annual Objectives. • Ascertain the measurement of ITSP target achievement based on the importance and completion of goals supporting the Levels of Service(LOS)in the OCSD Strategic Plan. • Maintain an average uptime of 90 percent for critical applications. • 100 percent completion of all Compliance training. • Develop a new claims procedure. • Develop lob Safety Analyses for high frequency—high hazardjobs. Return b Aaende Rom General Management Aon" trati0n Human 9oam of flesoumes Directors Adminielrative Services General General Counsel Office Manager engineering Dpe2lions& Maintenance Service Description The Facilities Support Services Department is responsible for providing reliable and effective services in the areas of Fleet Management, Equipment Rebuild/Welding/Fabrication and Machine Shop Services,Facilities Engineering and Contracted Services Management,Source Inspection,Sewage Conditioning for Odor and Corrosion Control,and the operation and maintenance of the Sanitary Sewer System Pipelines and Pumping Facilities.The Facilities Support Services Department consists of four divisions: Facilities Support Services Administration provides leadership,support,and management oversight for the Department in order to accomplish 01 Strategic Plan and our annual goals. Fleet Services&Equipment Rebuild provides fleet and heavy equipment services and motor pool management, equipment rebuild and fabrication,and machining/fabrication/welding services to all OCSD staff. Facilities Engineering and Services provides engineering,technical support,and outsourced services support in order to deliver solutions and facility repair projects for the agency. Collection Facilities operates and maintains the regional facilities which include gravity sewers and pumping facilities; provides services to minimize odor and corrosion impacts within the facilities;and works with industrial and commercial dischargers to inspect,monitor and sample within the collection system to assure regulatory compliance.This includes coordination and troubleshooting support on sewer debris issues with cities and sewering agencies that discharge to the OCSD system,including Santa Ana Watershed Project Authority(SAW PA). Return to A enda Re ad SupportFacilities Departme Fiscal Year 113-14 Budget Update Operating Expense 2013-14 2013-14 2012-13 Originally Updated Category Budget Proposed Proposed Personnel $11,639,200 $11,975,700 $11,57 ,900 Supplies 7,285,340 7,491,680 7,039,590 Professional/Contractual Services 3,101,760 3,745,810 2,503,320 Research&Monitoring 0 0 0 Repairs&Maintenance 3,344,140 3,805,060 3,624,360 Utilities 615,200 651,200 671,670 Other 46,020 46.020 49,300 Cost Allocation (28],90m (298,400) (298,400) Total $25,743,760 $27,417,070 $25,169,740 Budget Overview In Fiscal Year 2012-13,to further optimize resources as part of the Beyond Authorized HE positions 2012 reorga nizational plan,seven Engineeri ng Su pervisor positions Managers 3.00 district-wide were realigned.As resources were reallocated,the Facilities rr Support Services Department has combined the leadership and oversight 6.00 responsibilities for several business units and has reduced the Department's Technical Staff 13.N Supervisor count by two.Through realignment,contracted service analysis and r• rr prioritization,and optimization of resources the Facilities Support Services Department was able to reduce its proposed annual budget by$2.2 million for FY 2013-14. Staffing Trends Performance Objectives/Measures • Manage overall expenditures to within 96- 100percentofthe Department's approved budget. • Maintain 100 percent compliance with water,air,safety,and mobile equipment permits. • Achieve greater than 95 percent safety training completion rate for one 0.07 1 all staff. • Achieve a compliance level of80- 100 percent ofthe Levels of Service Ai uri Sr—of—musieu wen (LOS)targets in the Strategic Plan. c0airge,oumea. • Successfully keep collection system odor complaints to less than 34 per year. • Ensure fewer than 13 sewer spills per year. • Respond to sewer spills within one-hour and establish containment to protect surface waters and minimize beach closures. Return to Agents Rom ENGINEERING DEPARTMENT Gene al Management Administration Human Board of Resoumes Director E ve General General Counsel Office Manager Facilities Support Services OfficePlanning project Management Engineering& Consul Enwiron. ran an Operations& L Compliance Maintenance Service Description The Engineering Department is responsible for the planning and execution of OCSD's Capital Improvement Program, Environmental Compliance,and the Asset Management Program.The Engineering Department is comprised of five divisions: Engineering Administration provides management to all Engineering Divisions. Planning is responsible for estimating future capacity requirements,planning existing asset lifecycles,performing applied research,developing the OCSD Capital Improvement Program and complying with the California Environmental Quality Act.In addition,this division is responsible for OCSD's Corrosion Inspection and Asset Management programs to ensure that required levels of service are maintained by performing necessary rehabilitation and replacement of facilities at optimal lifecycle costs.The Planning division also performs services for annexations,connection permitting, and inter agencyagreements. Project Management Cfflee is responsible for the delivery of capital projects from the preliminary design stage through the closeout of construction. Engineering and Construction provides design and construction engineering,quality control inspection,and other technical support for design and construction projects. Environmental Compliance is responsible for securing and maintaining permits from regulatory agencies for activates that may impact air,land,water,and endangered and threatened species.In addition to supporting biosolids reuse, the division evaluates and proactively identifies new regulations,along with legislative and opportunities for grants, while building positive relationships with the regulatory community,agency associations and the public. The Industrial Source Control and Non IndustrialSource Control groups act as the wastewater control authority for OCSD's service area and all contributing outside agencies,implementing programs(including the federally mandated industrial pretreatment program)that regulate industrial,commercial,and residential users. The division also supports the Groundwater Replenishment System with our partner the Orange County Water District Return to A enda Re orl EngineeringDepartment Fiscal Year 113-14 Budget Update Operating Expense 2013-14 2013-14 2012-13 Originally Updated Category Budget Proposed Proposed Personnel $20,866,500 $21,093,200 $21,154,300 Supplies 431,330 424,560 555,820 Professional/Contractual Services 355,000 406,000 985,000 Research&Monitoring 93,000 96,000 85,000 Repairs&Maintenance 1,600 1,600 2,160 urndes 0 0 0 Other 694,080 714,080 714,310 Cost Allocation (13,501,450) (13,837,450) (13,837,450) Total $8,940,060 $8,897,990 $9,659,140 Budget Overview With the completion of the secondary treatment facilities necessary to fulfill Authorized IFTE Positions the requirements of the consent decree issued in 2004,OCSD will turn Mut. 6.00 its focus to sustaining it's more than$6 billion in assets. The Engineering 84.00 Department will use an asset management approach to understand the r condition of equipment,the necessary level of service, business efficiency opportunities,and localized capacity constraints to optimally package and Total 123.00 sequence work tasks into complete and comprehensive projects. The Project Sterling Trends Management Office and Engineering and Construction will continue to execute the defined projects effectively and efficiently and Environmental Compliance will continue to assure that OCSD is in compliance with all regulatory requirements. Performance Objectives/Measures 05.5 • Expend minimum 90 percent of project annual Capital Improvement Program cash flows for Fiscal Year 2013-14. • Manage overall expenditures to within 96- 100 percent of the Department's approved budget. CIP Expenditures • Ensure that reporting divisions achieve 90 percent of individual performance objectives. recurrent nu n $at. 221 Replacement/ Rehabilitation Addicapacity ssc Capacity 55% 13% Suppmt $13M 309. 1,201314. 1,nd oepen.,:.,,I h, ay�oowi,samz�aumr��...:.....,uo,�,,. Return to Aaenda Rom a xIr i t •t General Management Administration Human Board of Resoumes Directors Administrative Services General General Counsel Office Manager Operations Maintenance FacilitiesAdministration Support Services Operations OperationsPlant No.2 Building,Grounds &Mechanical Engineering Maintenance Instrumentation &Electrical Maintenance Environmental Service Description The Operations and Maintenance Department is responsible for treating wastewater,reusing or disposing of the treated wastewater and all residuals,and providing care to all facilities.The O&M Department consists of six divisions: Operations and Maintenance Administration provides leadership and oversight to all Operations and Maintenance divisions. Plaid No.I and Plant No.2 Operations are responsible for the daily management of the wastewater treatment processes,sludge and biosolids treatment and loading processes,and odor and air quality control processes.Activities also include ensuring compliance with all regulatory permits,support of the Capra Improvement Program,and coordination of construction and maintenance work.Plant I Operations also ensures the delivery of specification water to the Grou nd Water Replenishment System. Buildings,Grounds and Mechanical Maintenance provides mechanical maintenance support for all wastewater treatment process and maintenance support for all OCSD's buildings and grounds in a safe,efficient,and effective manner so that OCSD can meet all discharge requirements while minimizing impacts to our neighbors.Also housed within the division is the Maintenance Management Group and the Reliability Maintenance Team which provides district wide support services for planning and scheduling maintenance events and predictive maintenance activities. Instrumentation and Electrical Maintenance is responsible for maintaining all instrumentation,electrical,HVAC equipment and systems in the treatment plants,pump stations,support and office buildings;providing reliable power by operating the two generating facilities and back-up generator power sources,repairing all systems,and supporting the CIP. Environmental Laboratory and Ocean Monitoring performs analytical procedures,monitoring method development, data analysis and reporting for a broad range of programs and sample types,including wastewater treatment streams, industrial inputs,offshore and nearshore receiving waters,final effluent and air in order to demonstrate the effectiveness of wastewater treatment processes,the industrial source control program,compliance with water and air regulations and protection of the receiving water environment. Return to A enda Re ad Operations i Maintenance Departme Fiscal Year 113-14 Budget Update Operating Expense 2013-14 2013i4- 2012-13 Originally Updated Category Budget Proposed Proposed Personnel $40,205,800 $41,297,800 $42,648,200 Supplies 11,611,230 12,191,240 10,879,060 Professional/Contractual Services 22,249,620 23,304,930 19,754,670 Research&Monitoring 725,480 775,780 755,000 Repairs&Maintenance 6,523,320 6,752,230 6,776,820 Utilities 7,158,750 7,661,540 6,736,800 Other 107,160 107,530 103,920 Cost Allocation (2,078,840) (2,142,840) (2,142,840) Total $86,502,520 $89,948,210 $85,511,630 Budget Overview The Fiscal Year 2013-14 budgetfor the Department reflects a$4.4 million Authorized FrE Positions decrease from the original proposed budgetfor this year.This significant decrease Managers6.00 is primarily related to the following factors: rr • Expected savings of$2.9 million resulting from the termination of an Administrative/Clerical 5.00 rr agreement with a company that was contracted to process biosolids into T.0nical Staff an energy fuel. Operations 60 • Significant reductions in chemical usage at Plant l and Plant 2 resultingfrom the move to full secondary treatment. • Anticipated increases in power costs are less than previously expected with Staffing Trends the new secondary treatment processes now in operation. • The Green Arces Project(GAP)water costs have decreased due to a new agreement with the Orange County Water District that provides 1,120 acre feet per year of free reclaimed water. se Performance Objectives/Measures • Achieve 100 percent compliance with water,solids,air,and energy permits. • Achieve a compliance level of 80- 100 percent 100 percent of the Levels of Service(LOS)targets consistent with resource availability. • Manage 0&M expenditures to within 96-100 percent of approved budget • Maintain safety cards above 90 percent. • Maintain electrical power availability at Me distribution level greater than 99.9 percent(8 hours per unplanned outage). • Continued efficiency improvement as measured by internal standards and benchmarking with other laboratories. • Continue to meet all NPDES permit compliance standards and carry out strategic process studies focused toward advancing OCSD's mission. DEPARTMENTS SUMMARY 01 urn —a- r f� 40 Return to Aoenda Reoort Appendix A- 1 Return to Agenda Reoon Cash Flow Projection Orange County Sanitation District Consolidated Cash Flow Projections Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary Ref Description 13-14 14-15 1515=16 16_17 17_18 18-19 Revenues: 1 General User Fees 284,331,000 292,589,000 299,986,000 308,377,000 316,830,000 325,460,000 2 Permitted User Fees 11,291,000 11,584,000 11,841,000 12,134,000 12,427,000 12,725,000 3 IRWDAssessments 14,386,800 16,462,700 16,410,340 10,114,710 5,842,080 5,491,370 4 SAWPA Assessments 2,938,000 3,055,000 3,177,000 3,304,000 3,436,000 3,573,000 5 Properly Taxes(Flat in shod term) 73,699,000 77,384,000 81,253,000 85,316,000 89,5B2,000 94,061,000 6 New COP Issues - - - - - - 7 Interest Revenues 16,372,000 19,366,000 16562,000 18,628,000 17,763,000 18,255,000 8 Capital FacilBies Capacity Charges 9,761,000 8,677,000 9,463,000 10,137,001) 10,856,000 10,845,000 9 Other Revenues 5,926,900 4,100,000 4,147,000 12,577,000 4,246,000 4,297,0D0 10 Revenues 418,705,700 433,217,700 444,839,340 460,587,710 460,982,080 474,707,370 Requirements: 11 Oper&Mice Exp(5.0%yd 151,227,990 158,719,000 165,665,000 169,151,00) 172,769,000 180,486,000 12 Capitsl Improvement Program 141,600,000 204,692,400 183,394,400 113,006,400 178,062,400 183,559,400 13 Repl,Rehab&Refurb 3,303,000 17,391 26,283,000 62,102,000 102,751,000 81,892,000 14 COP Service(5.0%,30 yes) 98,45Q000 85,803,000 86,145,000 90,946,000 87,005,000 85,430,000 15 Other Requirements 4,352,000 2,152,000 2,152,000 2,152,M 2,152,000 2,152,000 16 Requirements 398,932,990 468,751 463,639,400 437,357,400 542,739,400 533,5191 17 Revenues-Requirements 19,772,710 (35,538,70D) (18,800,060) 23,230,310 (81,757,320) (58,812,030) Accumulated Funds: 18 Beginning of Year 653,196,807 672,969,517 637,430,817 618,630,757 641,861,067 560,103,747 19 End of Year 672,969,517 637,430,817 618,630,757 641,861,067 W,103,747 501,291,717 20 Consolidated Reserve Policy 544,066,000 534,346,000 537,156,000 541,761,000 537,966,000 501,060,000 21 Over(Unded Reserve Poll 128,903,517 103,084,817 81,472,757 100,100,067 22,135,747 231,717 Sewer Service User Fees: 22 Avg SFR Annual User Fee $308.00 $316.00 $323.00 $331.00 $339.00 $347A4 23 Percentage Change 4.76% 2.60% 2.22% 2.48% 2,42% 2,40% 24 Equivalent Dwelling Units 929,430 932,033 934,736 937,493 940,306 943,127 25 SFR Connection Fee $3,775 $3,964 $4,162 $4,370 $4,589 $4,818 26 Orbitanding COPS $1,314,602,000 $1,286,727,000 $1,257,322,000 $1,221,747,000 $1,188,577,000 $1,175,762,000 Reserve Policy 27 50%Next Year Operating 75,614,000 79,360,000 82,833,000 B4,576,000 86,385," 90,243,000 28 10%Next Year Operating 15,123,000 15,872,000 16,567,000 16,915,000 17,277,000 18,049,000 29 100%Next Year AUG COP Svc, 98,450,000 B5,803,000 86,145,000 90,946,000 87,005,000 85,430,000 30 50%average len-year CIP Bal. 105,470,000 105,470,000 105,470,000 105,470,000 105,470,000 105,470,000 31 DSR@10%Outstanding COPS 131,460,000 128,673,000 125,732,000 122,175,000 118,858,000 117,576,000 32 SFI@$57mm INPUT 57,000,000 57,000,000 57,000,000 57,000,000 57,000,000 57,000,000 33 Rapt&Fall Q2%lyr 60,949,000 62,168,000 63,411,000 64,679,000 65,973,0D0 67,292,000 34 *Reserve Reduction(in accordance with Board action allowing a$40M reduction to total reserve requirements) (40,000,000) 35 Total 544,066,000 534,346,000 537,158,000 541,761,000 537,968,000 501,060,000 COP Ratios 36 Sr Lien Coverge,Min 1.25 262 3.10 3.13 309 3,19 3,32 A-2 Return W Amends Radon 2013-14 Budget Update Orange County Sanitation District Consolidated Cash Flow Projections Preliminary Preliminary Preliminary Preliminary 10-Year Description 19-20 20-21 21-22 22-23 Total Revenues: General User Fees 334,323,000 343,426,000 352,775,000 362,378,000 3,M,475,000 Permitted User Fees 13,030,000 13,343,000 13,663,000 13,991,000 126,029,000 IRWD Assessments 5,033,290 4,554,270 4,806,610 4,H8,710 87,880,8W SAWPA Assessments 3,716,000 3,865,000 4,020,000 4,181,000 35,265,000 Properly Tans(Flat in short tem) 98,764,000 103,702,000 108,887,000 114,331.000 926,979,000 New COP Issues - - - - - Interest Revenues 19,709,000 20,824,000 22,800,000 23,925,000 196,204,000 Capital Facilities Capacity Charges 11,421,000 12,028,000 12,667,000 9,697,000 105,552,000 Other Revenues 12,729,000 4,402,000 4,456,000 4,512,002 61,392,902 Revenues 499,725,290 5061 524,074,610 637,793,712 4,759,777,782 Requirements: Oper&Mace Exp(7.0%yr) 188,547,000 196,971,000 205,771,000 214,966,002 1,804,272,992 Capital Improvement Program 135,930,400 78,023,400 51,465,400 39,029,400 1,308,763,600 Reel,Rehab&Return 84,069,000 89,346,000 140,551,000 192,959,000 800,646,000 COP Service 15.0%,30 yrs) 85A57,000 86,339,000 7,709,000 77,698,000 859,982,000 Other Requirements 2,152,000 2,152,000 2,152,000 2,152,000 23,720,000 Requirements 496155400 451831400 47761 526804402 797384592 Revenue-Requiremartts 2,569,890 54,312,870 46,426,210 1g989,310 (37,606,810) Accumulated Funds: Beginning of Year 501,291,717 503,861,607 558,174,477 604,600,687 653,196,807 End of Year 503,861,607 558,174,477 GAS00,687 615,589,997 615,589,997 Consolidated Reserve Policy 505,925,000 550,372,000 546,566,000 550,505,000 550,505,000 Over(Under)Reserves Policy* (2,063,393) 7,802,477 58,034,687 65,084,997 Sewer Service User Fees: Avg SFR Annual User Fee $355.47 $364.00 $372.73 $381.68 Percentage Change 2.40% 2.40% 2.40% 2.40% Equivalent Darelling Units 945,956 W,794 951,640 954,495 SFR Connection Fee $5,059 $5,312 $5,577 $5,856 Outstanding COPS $1,162,307,000 $1,143,692,000 $1,115,127,000 $1,085,182,000 Reserve Poliov 50%Next Year Operating 96,274,000 98A86,000 102,886,000 107,483.000 10%Next Year Operating 18,855,000 19,697,000 20,577,000 21,497,000 100%Next Year AUG COP Svc. 85,457,000 85,339,000 77709,000 77,698,000 50%average ten-year CIP Bal. 105,470,000 105,470,000 105,470,000 105,470,000 DSR @10%Outstanding COPs 116,231,000 114,361 111,513,000 108,518'" SFI@$57mm INPUT 57,000,000 57,000,000 57,000,000 57,000,000 Repl&Return @2%/yr 68,638,000 70,011,000 71,411,000 72,839,000 Reserve Reduction (40,000,000) Total 505.925,000 550,372,000 546,566,000 550,505,000 COP Ram Sr Lien Govetge,Min 1.25 350 3.48 393 4.03 A-3 Return to Agenda Reoort Capital Improvement Program Summary Original FY 2013-14 Budget $ 156,317,000 % Change Projects Completed or Canceled (713,000) (0.46%) New Projects 852,000 0.55% Additions to Existing Projects 33,188,000 21.23% Deductions from Existing Projects (49,218,000) (31.49%) Changes to Capital Equipment 1,174,000 0.75% ReNsed FY 2013-14 Budget 141,600,000 (9.41%) Original Total Budget 2,790,151,000 % Change Projects Completed or Canceled (302,491,000) (10.84%) New Projects 3,742,000 0.13% Additions to Existing Projects 187,436,000 6.72% Deductions from Existing Projects (16,563,000) (0.59%) Changes to Capital Equipment - 0.00% Re\4sed Total Budget $2,662,275,000 (4.58%) A-4 Return to Aaentla Report 2013-14 Budget Update Project Summary FY 2013-14 2013-14 ReplacemenH Improved Additional CashBow Item Rehabilitation Treatment Capacity Support Budget Collections Facilities $ 23,071,400 $ 137,400 $13,936,800 $ 137,400 $ 37,283,000 Headworks 1,598,400 425,600 - - 2,024,000 Primary Treatment 1,421,000 145,000 - - 1,566,000 Secondary Treatment 667,000 862,290 424,710 - 1,954,000 Solids Handling& Digestion 23,368,530 26,339,570 2,725,900 - 52,434,000 Ocean Outfall Systems 3,144,000 - - - 3,144,000 Utility Systems 8,171,250 1,656,250 143,250 233,250 10,204,000 Odor Control Related Projects 2,510,700 689,300 211,000 - 3,411,000 Plant Automation& Computerization 2,707,100 - 688,000 2,860,900 6,256,000 Process Related Special Projects - - - 5,000,000 5,000,000 Miscellaneous&Support Projects 9,551,600 427,200 - 3,751,200 13,730,000 Strategic& Master Planning 435,000 - - 691,000 1,126,000 Others 491,000 335,000 335,000 587,000 1,748,000 Equipment 430,000 430,000 430,000 430,000 1,720,000 Total $ 77,566,980 $31,447,610 $18,894,660 $13,690,750 $141,600,000 A-5 Return to Agenda Reoon Capital Improvement Expenditure Graphs $1,126.000 Strategic&Mama $1,566,000 Planning 01% Primery Treaanant 1.1% $52A� l-\ HandlinSM g Solids ng&Olgeal4n � $37,263,W9 / 37.0% Collections Fatllides 26.3% $1,720,000 Equipment 1.2% $2.024.000 Headuorka 1.4% $3,611,000 $1,748,000 Otlor Control Projects tM Ors 2.4% 1.4% $6,256,W0 31,954,wo Plant Automatlon& 5¢cOntlary Teatment Ccmpulerieatbn $13,730,000 $10,204,000 1.4% 4.4% $9 Miscellaneous 8 Utilily systems $5 ppp ppp WeProjects OAertt Sup port Pooled. 7.2% Process Releletl Pi Protects OPA 97% 3.5% $3,144,000 Ocean Ouliall Systems 2.2% Total FY 2013-14 Capital Improvement Expenditure by Process -$141,600,000 $31,"7,610 Impmvetl Treatment 22.2% E1B,894,860 `\ AdtlilbnalCapal t 3.3%` $13.690.750 Support 9.7% 377,566,980 Replacement/ Rehatilitsion 54.8% 41 Total FY 2013-14 Capital Improvement Expenditure by Type -$141,600,000 A-6 Return to Aaentla Reoort 2013-14 Budget Update Summary of Capital Requirements—Collection System Improvement Projects Original Revised Original Revised Total Total 2013-14 201&14 Project Project Project Casi Cashflow Item Number Budget Budget Budget Budget Number Collections Facilities Raiff and Bristol Street Sewer Extension 01-101 $ 9,906,000 $ 9,906,000 1 Santa Ana Trunk Sewer Rehab. 01-17 7,331,000 7,519,000 3,142,000 470,000 2 Santa Ana Ricer Interceptor Realignment and Fiat. 02-41 11,404,000 11,404,000 298,000 813,000 3 Santa Ana Ricer lntemepta(SARI)lnspectim and Mitigation 0241-7 1,217,000 1,217,000 176,000 616,000 4 SARI Rock Stat lizers Remi 02-41-8 3,092,000 3,092,000 2,355,000 1,404,000 5 Taft Branch lmpmcements 0249 3,143,000 3,143,000 6 Newhope-Placentia Tmnk Guide Sebastian Replacement 0265 6,390,000 6,685,000 1,674,000 3,074,000 7 Fullerton-Brea Interceptor Sewer Relief 02-71 2,736,000 454,000 Completed NewhopnPlacentia Trunk Replacement 02-72 66,696,000 66,696,000 8 Vorba Linda Pumping Station Abandonment 02-73 9,566,000 9,566,000 9 LakeNew OCTA Grade Separation 02-75 330,000 330,000 102,000 52,000 10 Tustin Rose OCTA Grade Separation 02-76 2,500,000 1,483,000 1,475,000 11 Ouingethorpe OCTA Goods Separation 02-77 3,900,000 3,900,000 3,850,000 1,131,000 12 Westside Relief Interceptor Relief 03-55 26,482,000 26,482,000 13 Rehabilitation of Magnolia Tmnk Sever OMB 19,786,000 19,812,000 249,000 14 Mill"older Trunk Sewer Relief 0359 17,324,000 17,324,000 15 Beach TmnklKnolt Interceptor Sewer Relief 0360 25,055,000 25,055,000 16 Miller-Holder and Knott Trunks Odor Control Project 0361 1,795,000 1,795,000 17 Seal Beach Pumping Station upgrade and Rehabilitation 0362 26,356,000 26,356,000 18 Rehabilitation of 36,M,and 3.21-1 Sewers 0364 88,720,000 88,720,000 19 Benoist Tmnk Serer Rehabil0ation 05-07 9,446,000 10,622,000 2,310,000 5,878,000 20 Replacement of the Bitter Paint Pump Station 05-09 31,610,M 32,095,000 681,000 58,000 21 Replacement of the Rocky Point Pump Statim 0550 22,550,000 22,678,000 70,000 22 Bider Point Force Main Rehabilitation 0558 44,290,000 45,829,000 1,097,000 4,316,000 23 Newport Force Main Condition Rehabilitation 0560 23,779,000 45,788,000 670,000 2,038,000 24 Dow Dme Trunk Sevier Relief 0563 14,296,000 13,751,000 8,541,000 7,936,000 25 Crystal Ccw Pumpng Station Upgrade and Rehabilitation 0566 7,379,000 7,379,000 26 Bay Bridge Pumpng Station Upgrade and Rehabilitation 0567 46,852,000 46,852,000 27 District 6 Trunk Sesser Relief 06.17 5,638,000 5,638,000 850,000 412,000 28 Southwest Costa Mesa Trunk 06-19 14,91 14,993,000 956,000 974,000 29 Gisler-Redbill System Imp onaments,Reach B 07-37 11,402,000 11,814,000 5,960,000 4,593,000 30 Brovming SaMrunk Sewer Relief 0760 11,172,000 12,663,000 1,057,000 31 Von Kaman Trunk Sewer Relief 0762 433,000 433,000 32 congruent A-7 Return to Agenda Reoon Summary of Capital Requirements Summary of Capital Requirements—Collection System Improvement Projects Original Revised Original Revised Total Total 2013.14 2013.14 Project Project Project Ca5t0ow Cash0ow Item Number Budget Budget Budget Budget Number Collections Facilities(Con0nued) MacArthur Pumping Station Upgrade and Rehabilitation 07-63 7,028,000 7,028,000 33 EdingedBolsa Chico Trunk lmprmements 11-25 6,030,000 6,030,000 34 Wintemburg Channel Siphon Protection Project 1132 75,000 75,000 41,000 24,000 35 Edinger Pumping Station Upgrade and Rehabilitation 1133 11,474,000 11,474,000 36 Facilities Engineering Projects-Colections FE-CcIlact 8,250,000 8,250,000 150,000 916,000 37 Siphon and Manhole Upgrade Feesibility Study SP-138 3IX1,000 Completed Bay Bridge Pump Station and Forcemains Rehabilitation Study SP-178 150,000 150,000 50,1100 142,000 38 Main Street Flume Downsizing Study SP-179 75000 Canceled Recenue Area 3 Asset Management Plan SP-180 400,000 400,000 134,03 360,000 39 Reeenue Area 7 Asset Management Plan SP-181 300,000 300,000 10g000 282,000 40 Total Collection System Improvement Projects 611,651,000 634,727,000 34,647,000 37,283,000 A-8 Return t2 AOenda Re0ort 2013-14 Budget Update Summary of Capital Requirements-Treatment System Improvement Projects Original ReviBed Original Revised Total Total 2013-14 M13-14 Project Project Project cache. Caeh0aw Item Number Budget Budget Budget Budget Number Headwork. Headwnrks Rehabilitation at Plant No P1-105 72,058,000 T'Ow,000 5921000 307,000 41 Headwarks Expansion MAW 222,804,000 222,804,000 42 Headwmks Improtestri at Plant No.2 P2-66 258,124,000 259,124,000 2,974,000 1,641,000 43 Plant No.1 Hem&Bypass Asset Management Plan SP-182 "'Wo 400,000 10Q0oo 76,000 44 Headwork.TOWI 553,286,000 554,386,001) 3,66Q000 2,01 Primary Treatment Joint GWRS Micmfi0mticn Backvresh Redirection Project J- i 1,111,000 522,000 145,000 45 Primary Stuart Pipeline Joint Repairs P1-118 3,246,000 3,246,OW 46 Plant Hai Primary Treatment Upgrades Pi-124 17,835,000 11,W5,000 897,000 702,000 47 Primary Treatment Area Rehabilitation Study SP-137 w,wo 848,000 162,OOo 719,000 48 Primary Treatment Total 23,040.000 10,161,O0 1100,000 1,566,DW Secondary Treatment New Secondary Treatment System at Plant No P1-102 255,471,000 255,471,000 3,164,000 1,287,000 49 Tricking Filters at Plant Na.2 P2bID 22g206poo 173,O00 Completed Oxygen Plant Rehabilitation at Plant No.2 SP-129 2,208,000 2,300,000 281,000 302,000 50 Plant Hai Secondary Treatment Asset Management Plan SP-183 200,OOo 200,OOD 66,000 180,0W 51 Plant No.2 Secondary Oxygen Plant Asset Management Plan SP-185 M'Mo 200,000 SE'Wo 180,0W 52 Secondary Treatment Total 478,285,000 250,171,000 3.7601O00 1,954,Ooo Solids Handling&Digestion Sludge Digester Rehabilitation at Plant l P1-100 5T,205'Wo 576,11,000 S,BSS,Ooo 5926,000 53 Sludge Dewatering and Odor control at Plant l P1-101 147,2TO,OOo 171,978,000 36,140,000 27,259,000 54 Greater Feelc Chloride System Rehabilitation P2-105 4,078,000 4,178,000 1.144,000 11881 55 Demolition of Digesters A and B and Gas Holders P2-1 f0 5,4051000 29,409.000 402,OW 56 Solids Storage Silo Rehabilitation P2-114 37,604,000 37,604,000 57 Solids Thickenitg and Processing Upgrades P2d9 4$146,000 48,146,0W 17,861,000 12,881,000 58 Digester Relabilitatlon at Plant No,2 P2A1-1 45,637,000 47,600,000 ;aS' 0 59 Sludge Dewatering and Odor Control at Plant 2 PM2 71,560,000 71,860,000 1,948,000 2,842,000 60 Plant No.2 Digesters and Boilers Plant Asset Management Plan SPAM 2001000 200000 661000 180,000 61 Solids Handling&Digestlon Total 417,405,000 488,616,000 64,060,000 52,434,000 Ocean Degan systems Final Effluent Sampler and Building Area Upgrades J-110 12,585,000 14,064,000 954,000 1,085,000 62 Outial Land Section and GOBS Piping Rehabilitation Jl12 24,139,000 20,939,000 2,85ti 1,6]],000 63 664nch Intemlant Effluent Pipeline Relmolitation J-116 T$517,000 9 ,51T,000 64 Ocean Outtell System Rehabilitation Y117 15',vo'w0 15A02,000 1,450,000 98,000 65 OatWll Beach Box Rehabilitation Etaluation 1l 19 385,000 28,000 BE Aftermaths ElAuent Disinfection Study SP-156 1w,000 100,000 67 Plant No.2 OutWll Systems Asset Management Plan SP-182 3001000 3001000 100.W0 256,O00 68 Ocean Oman Systems TOWI 125,043,000 120.707,000 5,30 M 3,144,000 A-9 Return to Agenda Reoon Summary of Capital Requirements Summary of Capital Requirements—Treatment System Improvement Projects Original Revised Original Fennel Total Total 2013-14 M13-14 Project Project Project coal cash0ow Item Number Budget Budget Budget Budget Number utility Symbol Interplant Gas Line Rehabilitation L106 5,634,DOO 5,634,000 74,000 1,128,000 69 Cengen Cooling Water System Replacement L109 11,337,000 11,454,000 gfi8,000 1'M'000 TO Cengen Emissions CoMml Pri b111 31,251,000 29,000,000 1,743,000 1,513,000 71 UPS System Upgrades b121 13,012,000 13,012,000 n Digester Gas Compressor lmlromments ,L124 55,385,000 73 Central Generation Automation N7 -1 23.W.000 completed Electrical Power Distribution System lmp.ments As 9,n3,000 12,791,000 960,000 74 Plant Water System Rehabilitation at Plant No.1 P1-112 10,029,000 S569p00 5,439,IID0 2,587,000 75 Flare Addition P1-119 2,08SCOD Canceled Gas Compressor UNrades Pi-121 27,181,000 Canceled Plant Water System Rehabilitation at Plant No.2 P2-101 3,064.000 4,009,000 1,132,000 115641000 76 Additional High Pressure Flare P2-103 2,116,000 Canceled 15 kV Upgrades at Plant No,2 P2-108 4,658,000 4,658,000 1,612,000 561,000 ➢y Goo Compressor Upgrades P2-109 22,362,000 Canceled SCE Feed Reliability Improvements P2-111 22,490,000 22,490,000 78 Somers,Area Cable Trey Upgrades P2-116 2,154,000 2,154,000 79 Headamins Area Cable Tray Upgrades P2-117 310151000 3,015,000 80 Ogaden Gas Facilities Assessment SP-141 700,000 700,000 668,000 81 Utility Water Systems Study SP-10 000,000 8001000 573.000 82 Plant Air System Master Plan SP-148 340.000 3401000 83 Electrical System Base Map SP-149 250,DOO 250,000 84 UnintenuptiWe Power System(UPS)Study SP-150 342,000 Completed Simetream Pumping System and Water Characterization Study SP-155 246,000 246,000 90,000 85 Standby Poteer Generation Stud, SP-158 400,000 4001000 86 Power Outage Ran.,Plan SP-170 100,000 100000 1orl 87 Potable Water Quality Study SP-175 50,000 5Q000 88 Utility Systems Total 197,533,000 1761 12,020,000 10,204,000 Odor control Related Project Coyote Hills Goff Course Odor Control Station U-74 8,365,000 8,365,000 89 Primary and Secondary Oda Control at Plant No.1 Pi-114 48,600,000 50,708,000 716,000 90 Trunk Line Odor Control lmphnements Pi-123 10,016,000 10,016,000 737,000 832,000 91 Chemical Scrubber Conversions antl Piping System Imprmement P2-106 2,BOT,000 2,906,000 11101 1,474,000 92 P2 Primary Clatters Rehabilitation Pri P298 35,691'" 43,210,000 1,09;S,W0 93 Oda Control Means-Plan SP-166 1,200,000 1,200,000 800,000 1,055000 94 Collection System Odor Control Systems Study SP-189 Stem 500,000 166,000 50,000 95 Odor control Related Projects Total 107,1n,000 116,905,0011 4,620,000 3,411,000 Process Related Special Projects Corrosion Management SP98-1 14,3T2,000 37,603,000 1,416,000 5,000,000 96 Process Related Special Projects Total 14,372,000 31.603.000 1,416,000 5,000,000 A- 10 Return to Aaentla Reoort 2013-14 Budget Update Summary of Capital Requirements-Treatment System Improvement Projects Original Revised Original Revised Total Total 2013-14 2013-14 Project Project Project casb0ost casi Item Number Budget Budget Budget Budget Number Plant Automation 8 Computerization Process SCADA Replacement . 120 24,680,000 24,680,OW 91 Programmable Control Panel Upgrades J-125 2,942,000 300,000 98 carver Monitoring and Contrd Systems J33 13,050,000 12,327,000 3,244,000 1,474,000 99 SCADA System and Network Upgrades P2-107 22,895,W0 27,839,000 2,06,000 IN Strategic Information Architecture ISLA) SPAS 1,991 1,995,OW 100,000 445,W0 101 IntemeVlntranet Dereloprnent SPAS 650,000 Ill 25,000 300.000 102 CMMS System Replacement SPAN 51000,000 61W0,000 942,000 2752,OW 1W P0S20 Software Replacement SP-103 250,000 500,000 90,000 275,000 IN Geographic Interne on System SP-15 4,047,000 4,047,000 365,Wo 364,000 105 Network Equipment Upgrade SP-89 2,90SOW 1,427,000 44000 346,000 IN Plant Automation It computerization Total ]5,4]2,000 82,90I,000 7,702,000 6,256,000 Miscellaneous 8 Support Projects, Facilities Engineering Projects-Joint FEJ 23,910,000 23,910,000 3351000 265,000 107 Fallities Engineering Projects-Plant FE-Pt 20,910,W0 20,910,000 124,000 1,353,000 I Facilities Engineering Projects-Plant 2 FE-P2 20,910,W0 20,910,OW 435,000 1,2W,W0 IN Emergency Operation Center J-115 lw,W0 160,000 110 Contmcts and Purchasing Building Extension b118 3,589,W0 3,589,000 Ill Operations Center Entrance/Building Repairs 1122 2,S25,W0 2,648,000 1,292,000 217,WO 112 Fall Protection lmprmements at Plants Nos.1 and2 J-123 2,961,W0 2,961,OW 1,W2,000 588,000 113 Title 24 Access Compllance and Building Rehabilitation Project P1-115 30,V6,W0 32,637,000 3,114,000 2,181,W0 114 Site and Security Improvements at Plant No.2 P2-96 1,OT],000 2,0]],000 618,000 Sell 115 2W9 NPDES Permit Renewal SP-133 150,W0 completed Entrance and Computer Equipment Replacement Project SP-135 2.I00,000 51050,0W 400,000 2,262.000 116 Iend Records lnlormaticn System SP-136 410,000 410,000 40,Wo 117 Facility Assets Assessment SP-145 2,960,000 2,960,000 22o,Wo 221,Wo 118 PIent 2 WSSPS Motor Location SP-145-2 72,000 72,00D 54,W0 119 Stormwaler Master Plan SP-167 Soil 300,000 236,000 120 Inramedion Technology Workrpnn Replacement SP-176 2,966,000 2,566,000 2,566,000 121 Public Address System Study SP-188 75,WO 75,090 8,000 M Plant No.2 Tunnels Systems Asset Management Plan SP-191 MAI) 200,0W 66,000 137,WO 123 Small CapOal ReplacementlRehabilitmion Project SP-34 37,2W,000 3I,200,0110 510001000 4,2W,W0 124 Asset Management Pmgram SP-68-2 4,800,000 4,800,000 399,000 100,000 125 Miscellaneous B Support Projects Total 157,55T,000 163,"l,OW 15,051000 13,73Q000 Water Management Projects Initial Expansion of the GrouMwater Replenishment System SP-139 Sri 86,000 Comlieled Effluent Reuse Study SP-173 W,WO 60,OW 126 Water Mana go me nl Projects Total 36l 60,000 86,000 A- 11 Return to Agenda Report Summary of Capital Requirements Summary of Capital Requirements-Treatment System Improvement Projects Original Revised Original Revlsed Too] Tsui 2013-14 2013-14 Project Project Project Castel Cashgow Ikon Number Budget Budget Budget Budget Number Strategic&Master Planning Facilities-Wide Safety Assessment SP-145-1 300,000 930,000 473,000 127 Landscape Master Plan SP-1454 150,000 150,000 118,000 128 Climate Change Impact Study SP-152 100,000 100,000 100,000 100,000 129 Treatment Plant Hydraulic Assessment SP-168 300,000 300,000 300,000 130 Sediment and Liquefaction Study SP-177 173,000 173,000 131 Plant Not Effluent 8lreerplant Piping Asset Management Plan SP-184 200,000 200,000 66,000 135,000 132 Plant No.2 Administraliw Buildings Master Plan SP-193 300,000 300,000 133 Strategic B Moslem Planning Total 1,223,000 2,10,000 466,000 1,126,000 Others Research-Superoxygentation SP-121 850,000 Connectetl Operational Research Projects(annual allocation) SP-125 10,000,000 10,440,000 1,000,000 1,340,000 134 Process SCADA Link to Pump Stations SP-157 271,000 271,000 103,000 156,000 135 Data Storage Addition SP-163 444,000 Completed Information Technology Data Center Replacement SP-174 180,000 180,000 180,000 im Infomnation Technology Master Plan SP-192 500 No 252,000 137 OthereTotal 11,745,000 11,391,000 1,283,000 1,748,000 Total Treatment and Dispose l Projects 2,162,500,000 2,011,548,000 121,124,000 102,597,000 Ca pital Soul pment Purchases 16,000,000 16,000,000 546,000 1,720,000 Total Collection,Treatment and Disposal Projects 52,790,151,000 52.662,275,000 5156,317,000 $141,600,000 A- 12 Return to Agenda Reoon 2013-14 Budget Update CIP New Project Descriptions Project Name&Number Programmable Control Panel Upgrades.J-125 Project Category Plant Automation 9 Computerization Project Budget: S2 942 000 Description The project will upgrade programmable logic coobol(PLC)panels at both plants to be functional with new Industrial Control System(ICS)Network being Installed by the Information Technology Department. The project will Install ten(10)new PLC panels(5 at Plant No 1 and 5 Plant No 2).ado equipment to existing panels at Win Plants No. 1 &2.and Installation of miscellaneous network components. Justification ICS Network Inspllatpn and Supervisory Control and Data Acquisition System(SCADA)Security Upgrade Project(IT Project)IS being completed by IT and requires these PLC upgrades for Me PI-Cs t0 communicate through me ICS Nehvon, This project will eliminate me dependency on the old Modbus Plus Network,and will ncrease level of security and reliability in SCADA communications. The projects construction cost budget is$1.900,000. The impacts to opemtionat budgets have not yet been determined. Project Name 8 Number Plant No.2 Administrative Buildings Master Plan-SP-193 Project Category Strategic l3 Master Planning Project Budget: $300,000 Description This study provides for an assessment of options for sustaining our office facilities and non process related lac alms at Plant No.2 over the next 30 years,along we an office space optimization planning study. Justification There are various issues associated with the facilities used for shaft offices including but not limited to: 1.DCSD staff is dispersed throughout van WS buildings and trailers within Me treatment facilities. The winding efficiency of this arrangement needs to be evaluated 2.Facilities may have been constructed without a formal review process by the local city building departments. and have various ADA and compliance issues Nat have and will result in signdicant cost impacts when modifpng existing Facilities. 3.The facilities are nearing the point where major rehabilitations and upgrades will be necessary for continued operation of Ire facilities. The impacts to operational budgets have not yet been determined. A- 13 Return to Agenda Report CIP New Project Descriptions Project Name R Number Information Technology Master Plan-SP-192 Project Category Information Management&Computerlaation Project Budget E`00.000 Description This project will develop a master plan for information technology software and hardware systems for the treatment wads and admm5trative support Iacilues for me nert 20 years This will include ideotit"ng and space needs for the expanding server systems,incorporating newer server technologies(packaged data centers), network infrastructure needs(wire.finer optics,swncnes.and wireless networks).standby Power and other col try requirements to operate the information technology equipment.estimating costs for locating backup server systems oflsde,mcomorate Mended needs for business continuity alter a disaster implementation plan for replacement of major software systems(financial, laboralory.etc 1.and plan for needed upgrades for the treatment plant control system(SCADA) Justlbcabon A plan Is needed to lay out a plan for Mure information technologies and upgrades.The information technology systems that are in place are aging,rearing the end-of their useful Ines.and need a planned replacement Ilan. Also many existing equipment locations are nearing space capacities and are prohibiting necessary enPanuons The project will also support ongoing efforts for maintaining business common,after a disaster. This pmject will not have an Impact on operational budgets A- 14 Return to Aaentla Report FY 2013-14 Budget Update This page was intentionally left blank A - 15 Return to Agenda Reoort Capital Equipment Budget Summary Capital Equipment Budget 2013-14 Machine Trucks & Other Eq& Comm Vehicles Mobile Eq Tools Equipment Division 09410000 09410001 09410002 09410003 Contracts, Purchasing, & Materials Management $ - $ - $ - $ - Information Technology - - - - Facilities Support 221,000 63,500 - - Equipment/Rebuild - - 62,600 - Fleet Services 401,500 8,600 - - Odor and Corrosion Control - - - - Plant No. 2 Operations - - - - Mechanical& Reliability Maintenance - - - - Instrumentation& Electrical Maintenance - - - 33,500 Environmental Laboratory&Ocean Monitoring - - - - Total Proposed Capital Equipment $ 622,500 $ 72,100 $ 62,600 $ 33,500 A- 16 Return to Aaentla Report FY 2013-14 Budget Update Capital Equipment Budget 2013-14 Instr/Test Safety& Office Fix& Computer 2013-14 Equipment Traffic Eq Eq Equipment Proposed Division 09410004 09410005 09410006 09410007 Budget Contracts, Purchasing,&Materials Management $ - $ - $ 38,200 $ - $ 38,200 Information Technology - - - 391,000 391,000 Facilities Support - - - - 284,500 Equipment/Rebuild - - - - 62,600 Fleet Services - - - - 410,100 Odor and Corrosion Control 21,000 - - - 21,000 Plant No.2 Operations 65,000 - - - 65,000 Mechanical&Reliability Maintenance 10,000 - - - 10,000 Instrumentation&Electrical Maintenance 109,100 - - - 142,600 Environmental Laboratory&Ocean Monitoring 295,000 - - - 295,000 Total Proposed Capital Equipment $ 500,100 $ - $ 38,200 $ 391,000 $1,720,000 A- 17 Return to Agenda Reoon Capital Equipment Budget Detail Capital Equipment Budget Detail Proposed Equip. lNNalen Erwiment Tyl» Budget 230 - Contracts. Purchasina. & Materials Manaaement Pellet Racks-Plem 1 $ 19.100 Pellet Racks -PlaM 2 19,100 Total 38.200 250 - IMormatZTecbnoloAbsence Coay mpliance Tracking 37,000 Advanced Threat Detection Appliance 21.000 Emulator Proxy Servers 181.000 Pump Station SCADA Servers Replacement 62,000 Risk Management Database 60.000 Video and Storage Equipment 30,000 Tolal 391,000 320 - Facilities Support Dump Trailers (3)for Div 340- Replace E#0902. 0903&0904 63.500 Hydraulic Driven Pull Rig-Replace V#0385 102,000 Secondary Trailer Rig-Replace V#0383 62,000 Truck, Pump Station Maintenance-Replace V#0451 57,000 Total 289,500 321 - Equipment/ Rebuild Down Draft Workbench 8.200 Millar Multi-Purpoaa Welder 16,200 Platen Table 9,300 Power Peen Sandblaster 17,200 Pressure Washer 11,700 Total 82,600 322 - Fleet Services Truck-Rapt...V0524 44,100 Personnel Caller-Replace Canter C1022 8,600 Truck-Replace V0502 70,400 Standby Pump Station 350KW Generator&Truck 287,000 Total 410,100 342 - Odor and Corrosion Contml VOO Meter Replacement 10,500 Volatile Organic Compound Meter-replacement 10,500 Total 21,000 840 - Plant No. 2 Operation. Chem Scan Analyzer model W-0100 65,000 Total 65,000 850 - Mechanical is Reliability Maintenance CSI 26M Machinery Health Expert -Upgrade from 12 Channels to 24 10000 Total 10,000 "0 - Instrumentation& Electrical Maintenance Cable. Control Wiring & Fiber Analyzer 11.300 Motor Operated Valve Simulator 12.400 PLC Communication Netvroda Equipment 33.500 Portable 70KVA Generator("W hispar Quiet') 47,200 Process Control Network Ethernet Analyzer 8,800 Ultrasonic Detection System 16,300 Vibration Analysis Test Unit 13,100 Total 142,600 890 - EnOronmental Laboratory is Ocean Monitoring Upgrade of Air Concentrator and Air Autosampler 82,400 Gel Permeation Cleanup Autosampler 24.700 Purge& Trap GUMS system for EPA method 624 136.500 Ref igerated Auto-Sampler 43,300 S.mpla Rack &Vacuum Cover-.pleb concentrator 8.100 Total 295.000 Total Proposed 2013-14 CORP Equipment Budget $ 1,720,000 A- 18 Return to Agentla Report FY 2013-14 Budget Update Listing of Proposed Purchases Over$100,000 Resolution 07-04,"Establishing Policies and Procedures For:The Award of Purchase Orders and Contracts; Public Works Project Contracts;Professional Services Contracts;and Delegation of Authority to Implement Said Policies and Procedure," was adopted by the Board on February 28,2007. Article IV,Section 4.03(B)of the Resolution provides that,"Purchases of supplies, materials,equipment or services, including Professional Service Consultants...as outlined in each Fiscal Years annual budget,to include capital equipment,shall be bid and awarded directly by the Contraots/Purchasing Manager.' The annual authorization amount for a multi-year contract is determined in the year the contract is bid/let. Therefore,the contract authorization amount indicated herein is valid only when the contract is bid/let in FY 2013-14. Following are services or supply items identified in the budget process with a cost greater than$100,000. Staff requests the Board approve the purchase of these items and those listed in the Proposed Equipment Budget Detail listing without further Board action in accordance with the referenced policy. Contract Change Order Description of SaMces or Supplies DMsmn Authorization Contingency (1) Chemical contracts Calcium nitrate for odor and corrosion control 342 $ 705,000 0% (2) Caustic soda(50%)for odor and corrosion control 342 618,000 0% (2) Ferrous chloride for odor and corrosion control 342 2,139,000 0% (2) Magnesium hydroxide for odor and corrosion control 342 2,570,000 0% (2) Anionic polymers for primary treatment 830/840 378,000 0% (2) Bleach for disinfection and odor control 830/840 716,000 0% (2) Cationic polymers for solids dewatering and coagulation 830/840 1.642,000 0% (2) Caustic soda(25%)for odor and corrosion control 830/840 128,220 0% (2) Ferric chloride for primary treatment 830/840 4,754,700 0% (2) Hydrogen peroxide for odor control 830/840 1,177.600 0% (2) Other Contrails Auditing seMces-audit PDSA and construction contract change orders 230 100,000 10% Contractual resources contras 230 208.000 10% Uniform contract 230 3001000 10% Copy center managed seMces 250 230,000 10% IBM software maintenance 250 215,000 10% License and seMces maintenance of plant security systems 250 110,000 10% Mlcrosoft Enterprise License Agreement 250 225,000 10% Oracle software maintenance 254) 145,000 10% Outside reprographics seMces 250 400,000 10% Telecommunication services 250 200,000 10% Hazardous waste disposal 260 175,000 10% OCIP broker 260 150,000 10% Safely training seMces 250 110,000 10% Security 260 450,000 10% CCTV seMces for sewers 330 468,000 10% Contract traffic control 330 101 10% CenGen engine overhaul 330 720,000 10% Janitorial seMces 330 4",81 10% Landscape maintenance 330 160,720 10% Manhole creme and cover purchase 330 100,000 10% Manhole frame and cover replacement 330 235,000 10% Manhole structural repair and coating services 330 302,000 10% On-call architect and engineering consultant 330 101 10% On-call contractor for facilities repair jobs 330 250,000 10% On-call structural engineer 330 100.000 10% Pipeline rehabilitation 330 246.000 10% Process area coating contract 330 680.000 10% Sewer line cleaning 330 360.000 10% NPDES permit fees 790 540.000 10% Carbon replacement 8301 300.000 10% Grit and screenings hauling and disposal 830/840 756.000 10% Oxygen plant operation 8301 578.800 10% Solids removal 8301 17.940.000 10% Gale and door repair services San 130.000 10% General labor service 850 200.000 10% Plumbing services 850 175.000 10% Arc Flash Study 860 100.000 10% Carbon filter replacements for digester gas cleaning 860 134.000 10% CenGen generator rehabilitation 860 130.000 10% Electric protective relay calibration and testing 860 200.000 10% GAP water we 900.000 10% Natural gas Se, 437.000 10% Total $44.632.a80 Note 1: The change order contingency is for the lifetime of the contract and is based on the annual authorized amount In the year the contract Is bid/let. [For example, a thresyetir contract which Is authorized for an annual contract amount of$300,000 with a 10% change order contingency must be Initially bld/let for less than or equal to$300,000; over the 11% of the contract,the total change orders may not exceed 10%of$300,000, or$30,000.] Nob 2: Once a chemical contract is bid/let,there is no increase in unit coat allowed without Board approval. A- 19 Return to Agenda Reoorl Self-Funded Insurance Plans SELF-FUNDED INSURANCE PLANS The General Liability and Property program and the Workers' Compensation program provide for the District 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 • The District's current excess general liability insurance coverage is$30 million per occurrence with an annual aggregate limit and with a self-insured retention of$250,000 and $500,000 for EPLL • The District's current property insurance coverage is$1 billion for perils of fire and$300 million for perils of Flood, subject to a self-insured retention of 5 percent per unit of insurance up to$250,000 for fire and $100,000 for Flood. The District is completely self-insured for earthquake. • 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$908,800 for FY 2013-14. Workers'Compensation • The District's current excess workers'compensation coverage has unlimited statutory coverage per occurrence and $4.5 million employer's liability per employee with a self-insured retention of$500,000 per person per occurrence. • 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$455,000 for FY 2013-14. FY 2013-14 Self-Insurance Program Budget General Liability Workers' Total & Property Compensation Self-Insurance DESCRIPTION OR ACCOUNT TITLE Program Program Program Beginning Reserves $ 55,579,300 $ 2,185,840 $ 57,765,140 Revenues In-Lieu Premiums 908,800 455,000 1,363,800 Claims Reimbursement from Other Funds - - - Service Department Allocation 24,100 24,100 Total Revenues 932,900 455,000 1,387,900 Expenses Benefits/Claims 100,000 320,000 420,000 Contractual Services 1,200 25,000 26,200 Legal Services 75,000 75,000 150,000 Professional SeMces 5,000 40,000 45,000 Policy Premium Expense 1,331,000 180,000 1,511,000 Total Expenses 1,512,200 640,000 2,152,200 Excess Revenue (Expenses) (579,300) (185,000) (764,300) Ending Reserves $ 55,000,000 $ 2,000,840 $ 57,000,840 A-20 Return to Aacnda Report 2013-14 Budget Update Historical Staffing Summary Authorized Authorized Authorized Authorized Proposed Department and Division Name FTEs FTEs FTEs FTEs FTEs 2009-10 2010-11 2011-12 2012-13 2013-14 Office of the General Manager General Management Administration 4.00 5.00 3.00 5.00 6.00 Assistant General Manager Administration 1.00 - - - - Board Services 2.00 2.00 2.00 3.00 5.00 Public Affairs 8.00 8.00 8.00 6.00 3.00 Department Subtotal 15.00 15.00 13.00 14.00 14.00 Human Resources Department Human Resources 20.00 16.00 18.00 Department Subtotal 20.00 16.001 18.00 Administrative Services Department Administrative Services 3.00 5.00 5.00 3.00 3.00 Financial Management 19.00 18.00 17.00 18.00 18.00 Contracts.Purchasing&Materials Management 28.75 28.75 30.75 29.75 31.00 Human Resources 17.00 27.00 - - - Informalion Technology 32.00 33.00 45.00 48.00 47.00 Safety&Health 9.00 - - - - Risk Management 13.00 12.00 11.00 Department Subtotal 108.75 111.75 110.75 110.75 110.00 Facilities Support Services Department Facilities Support Services Administration - - 3.75 3.00 3.00 Facilities Support - - 18.00 19.00 3.00 Equipment Rebuild - - - - 8.00 Fleet Services - - - - 8.00 Facilities Engineering - - 13.00 13.00 11.00 Collections - - 49.00 46.00 - NPDES Source Inspection - - - - 16.00 Odor and Corrosion Control - - - - 6.00 Collection Facilities O&M 23.00 Department Subtotal 83.75 $1.00 78.00 Technical Services Department Technical Services Administration 4.00 4.00 - - - Envlronmental Compliance&Regulatory Affairs 16.00 1&00 - - - Environmental Laboratory&Ocean Monitoring 46.50 43.50 - - - Source Control 39.00 40.00 Department Subtotal 105.50 102.50 Engineering Department Engineering Administration 2.00 2.00 2.00 2.00 2.00 Planning 17.00 9.00 12.00 15.00 18.00 Project Management Office 19.00 18.00 17.00 19.00 20.00 Engineering&Construction 57.50 57.50 58.50 57.00 51.00 Facilities Engineering 10.00 9.00 - - - Asset Management - 25.00 6.00 - - Environmental Compliance 33.00 32.00 32.00 Department Subtotal 105.50 120.50 128.50 125.00 123.00 Operations&Maintenance Department Operations&Maintenance Administration 2.00 3.00 2.75 3.00 3.00 Odor&Corrosion Control 14.50 9.50 - - - Plant No. 1 Operations 45.75 49.75 52.75 54.00 64.00 Plant No.2 Operations 48.00 47.00 47.00 47.00 48.00 Building.Grounds.and Mechanical Maintenance 59.00 58.00 62.00 61.00 62.00 Instrumentation&Electrical Maintenance 76.00 63.00 75.00 75.00 75.00 Collection Facilities Operations&Maintenance 27.00 26.00 - - - Facilities Maintenance&Fleet Services 34.00 35.00 - - - Environmental laboratory&Ocean Monitoring 41.50 41.00 41.00 Department Subtotal 306.25 291.25 281.00 281.00 283.00 Grand Total -All Departments 641.00 841.00 83].00 82].]5 826.00 A-21 Return to Agenda Regorl Historical Staffing Detail Authorized Authorized Authorized Authorized Proposed FTEs FTEs FTEs FTEs FTEs Division&Position 200g 10 2010-11 2011-12 2012-13 2013-14 Office of the General Manager 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 Management Discretion 2.00 2.00 - 2.00 2.00 Principal Staff Analyst - - - - 1.00 Secretary to the General Manager 1.00 1.00 1.00 1.00 1.00 Total General Management Administration 4.00 5.00 3.00 5.00 6.00 150 Assistant General Manager Administration Assistant General Manager 1.00 Total Asst.General Management Administration 1.00 120 Board Services Clack of the Board 1.00 1.00 1.00 1.00 1.00 Records Management Specialist - - - - 1.00 Associate Clerk of the Board II 1.00 1.00 1.00 -Administrative Assistant - - - 1.00 1.00 Program Assistant 1.00 2.00 Total Board Services 2.00 2.00 2.00 3.00 5.00 140 Public Affairs Public Affairs Manager 1.00 1.00 1.00 1.00 - Pdncipal Public Affairs Specialist 2.00 2.00 2.00 2.00 - Senior Public Affairs Specialist 1.00 1.00 1.00 1.00 1.00 Public Affairs Specialist 1.00 1.00 1.00 - - Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Graphics Coordinator - - - - 1.00 Program Assistant - - - 1.00 - Office Assistant 2.00 2.00 2.00 Total Public Affairs 8.00 8.00 8.00 6.00 3.00 Total Office of the General Manager 15.00 15.00 13.00 14.00 14.00 Human Resources Department 160 Human Resources(formerly part of division 240) Director of Human Resources - - 1.00 1.00 1.00 Management Discretion - - 3.00 - Human Resources&Employee Relations Manager - - - 1.00 1.00 Human Resources Supervisor - - 1.00 - Principal Human Resources Analyst - - 1.00 1.00 2.00 Senior Human Resources Analyst - - 6.00 5.00 4.00 CMMS Technician II - - 1.00 - Associale Engineer - - 1.00 - Human Resources Analyst - - 3.00 5.00 5.00 Executive Assistant - - - 1.00 1.00 Human Resources Assistant - - 2.00 1.00 2.00 Program Assistant 1.00 1.00 2.00 Total Human Resources 20.00 16.00 18.00 Total Human Resources Department 20.00 16.00 1830 Administrative Services Department 210 Administrative Services Director of Finance&Administrative Services Treasurer 1.00 1.00 1.00 1.00 1.00 Engineer - 1.00 - - - Principal Financial Analyst 1.00 1.00 1.00 1.00 1.00 Principal Staff Analyst - 1.00 1.00 - - Principal Environmental Specialist - - 1.00 - - Executive Assistant 1.00 1.00 1.00 1.00 1.00 Total Finance Administration 3.00 5.00 5.00 3.00 3.00 A-22 Return to AOentla Report 2013-14 Budget Update Authorized Auffirmi tl Authonzetl Authorizetl Proposed FTEa FTEs FTEs FTEs 'a Division&Position 2009-10 2010-11 2011-12 2012-13 2013-14 220 Financial Management Controller 1.00 1.00 1.00 1.00 1.00 Accounting Manager 2.00 1.00 1.00 - - Accounling Supervisor 1.00 2.00 2.00 3.00 3.00 Principal Accountant 3.00 3.00 3.00 3.00 3.00 Principal Financial Analyst 1.00 1.00 - - - Benior Accountant 1.00 1.00 1.00 1.00 1.00 Accountant/Staff Analyst 2.00 2.00 2.00 4.00 4.00 Contracts/Purchasing Assistant 1.00 - - - - Payroll Technician 2.00 2.00 2.00 2.O0 2.00 Accounting Assistant II 5.00 5.00 5.00 4.00 4.00 Total Financial Management 19.00 18.00 17.00 18.00 18.00 230 Contracts,Purchasing&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 Senior Contracts Administrator 2.75 2.75 2.75 2J5 3.00 Principal Buyer - - - - 1.00 Planner/Scheduler - - 1.00 - - Contracts Administrator 3.00 3.00 3,00 3.00 3.00 Senior Buyer 2.00 2.00 2,00 2.00 1.00 Buyer 2.00 2.00 2.00 2.00 2.00 Contracts/Pumhasing Assistant 4.00 4.00 5,00 BOO 5.00 Lead Storekeeper 3.00 3.00 2.00 2.00 2.00 Senior Storekeeper 3.00 3.00 4.00 3.00 3.00 Storekeeper 3.00 3,00 4,00 5.00 5.00 Time Contracts, Pummeing&Materials Management 28.75 28.75 30.75 29.75 31.00 240 Human Resources Human Resources&Employee RBlations Manager 1.00 1.00 - - - Human Resources Supervisor 2.00 2.00 - - - Safety&Health Supervisor - 1.00 - - - Principal Human Resources Analyst 1.00 1.00 - - - Safety&Health Specialist - 3.00 - - - Security&Emergency Planning Specialist - 1.00 - - - Semi Human Resources Analyst 5.00 6.00 - - - Human Resources Analyst 3.00 3.00 - - - Safety&Health Representative - 2.00 - - - Human Resources Assistant 3.00 5.00 - - - Program Assistant 1.00 1.00 - - - Interns for agency 1.00 1.00 Total Human Resources 17.00 27.00 250 Information Technology Information Technology Systems&Operations Manager 1.00 1.00 1.00 1.00 1.00 Information Technology Manager 2.00 2.00 2.00 2.00 2.00 Information Technology Supervisor - - 1.00 1.00 1.00 Principal Information Technology Analyst 6.00 6.00 6.00 6.O0 6.00 Principal Public Affairs Specialist - - - - 1.00 Senior Information Technology Analyst 9.00 10.00 10.00 10.00 9.00 Information Technology Analyst 111 4.00 4.00 2.00 3.00 3.00 Engineering Associate - - 1.00 1.00 1.00 Records Management Specialist 1.00 1.00 1.00 1.00 - CMMS Technician 11 - - 5.00 - - Data Management Technician II - - - 7.00 7.00 Information Technology Analyst 11 3.00 3.00 3.00 5.00 6.00 Engineering Data Management Technician 11 - - 3.00 - - CMMS Technician I - - 1.00 - - Data Management Technician I - - - 6.00 5.00 Information Technology Analyst l 2.00 2.00 2.00 - - Engineering Assistant ll - - 1.00 - - Staff Analyst 1.00 1.00 1,00 1.00 1.00 Administra0ve Assistant 1.00 1.00 1.00 1.00 1.00 Engineering Assistant - - 1,00 - - Information Technology Technician 11 2.00 2,00 2,00 1.00 1.00 Information Technology Technician I - - - 1.00 1.00 Program Assistant 1.00 1.00 1.00 Total Information Technology 32.00 33.00 45.00 48.00 47.00 A-23 Return to AOenda Reoort Historical Staffing Detail Autbonzetl Authorizetl Autbanoad Authori-d Proposed FTE. FTE. FTEs FTEs FTEs Division&Position 2110910 2010-11 2011-12 2012-13 2013-14 260 Risk Management(formerly paid of division 240) Risk Manager - - 1.00 1.00 Safely&Health Supervisor - - 1.00 1.00 1.00 Principal Financial Analyst - - 1.00 1.00 1.00 Safety&Health Specialist - - 2.00 2.00 2.00 Security&Emergency Planning Specialist - - 1.00 1.00 1.00 I nforma0on Technology Analyst III - - 1.00 Occupational Health Nurse - - 1.00 1m 1.00 Senior Safety&Health Representative - - 1.00 1.00 1.00 Safety&Health Representative - - 3.00 3.00 3.00 Administrative Assistant 1.00 1.00 1.00 Total Human Resources 13.00 12.00 11.00 153 Safety&Health Safety&Health Manager 1.00 - - - - Safety&Health Supervisor 1.00 - - - - Safety&Health Specialist 3.00 - - - - Security&Emergency Planning Specialist 1.00 - - - - Safely&Health Representative 2.00 - - - - Human Resources Assistant 1.00 Total Safety&Heal(b 9.00 Total Administrative Services Department 108.73 111.75 110.73 110.75 110.00 Facilities Support Sardines Department 310 Facilities Support Services Administration Director of Facilities Support - - 1.00 1.00 1.00 Principal Financial Analyst - - 1.00 1.00 1.00 Executive Assistant - - 1.00 1.00 1.00 Intern 0.75 Total Facilities Support Services Administration 3.75 3.00 3.00 320 Facilities Support Facilities Manager - - 1.00 1.00 1.00 Maintenance Supervisor - - 2.00 2.00 - Senior Public Affairs Specialist - - - 1.00 Senior Staff Analyst - - - - 1.00 Lead Mechanic - - 1.00 1.00 - Machlnlst - - 1.00 1.00 - Automotive/Heavy Equipment Technician - - 3.00 3.00 - Equipment Operator - - 2.00 2.00 - Senior Mechanic - - 3.00 3.00 - WeiEer/Fabncator - - 3.00 3.00 - Automotive/Heavy Equipment Assistant - - 1.00 1.00 - Office Assistant 1.00 1.00 1.00 Total Equipment/Rebuild 18.00 19.00 3.00 321 Equipment Rebuild(formerly part of tllvlslon 320) Maintenance Supervisor - - - - 1.00 Machinist - - - - 1.00 Senior Mechanic - - - - 3.00 Welder/Fabricator 3.00 Total Equipment/Rebuild 8.00 322 Fleet Services(formerly part of division 320) Maintenance Supervisor - - - - 1.00 Lead Mechanic - - - - 1.00 Automotive/Heavy Equipment Technician - - - - 3.00 Mobile Crane Operator - - - - 2.00 Automotive/Heavy Equipment Assistant 1.00 Total Equipment/Rebuild 8.00 330 Facilities Engineering(fomredy division]TO) Engineering Manager - - 1.00 1.00 1.00 Engineering Supervisor - - 1.00 1.00 - Senlor Engineer - - 1.00 1.00 1.00 Engineer - - 2.00 2.00 2.00 Materials Control Supervisor - - 1.00 1.00 - Associate Engineer - - - 1.00 3.00 Maintenance Specialist - - 4.00 4.00 2.00 Senior Engineering Associate - - 1.00 - - Engineering Associate - - 1.00 1.00 1.00 Adia.m.trativa Assistant 1.00 1.00 1.00 Total Facilities Engineering 13.00 13.00 11.00 A-24 Return to Aaentla Report 2013-14 Budget Update Authonzed Authorized Authorized Authorized Proposed FTEs FTEs FTEs FTEs FTEs Division&Position 2009-10 2010-11 2011-12 2012-13 2013-14 340 Collection Facilities Source Control Manager - - 1.00 - - Engineering Supervisor - - 3.00 3.00 - Maintenance Supervisor - - 2.00 1.00 - Associate Engineer - - - 1.00 - Associate Engineer 111 - - 1.00 - - Principal Environmental Specialist - - 1.00 1.00 - Senior Environmental Specialist - - 3.00 3.00 - Source Control Inspector 11 - - 9.00 9.00 - Lead Mechanic - - 5.00 5.00 Administrative Assistant - - 1.00 1.00 - Senior Mechanic - - 9.00 9.00 - EngineeringAssistantl - - 1.50 1.00 - Environmental Technician - - 4.00 4.00 - Mechanic - - 8.00 0.00 - Intern 0.50 Total Collection Facilities 49.00 46.00 341 NPDES Source Inspection Engineering Supervisor - - - - 1.00 Principal Environmental Specialist - - - - 1.00 Senior Environmental Specialist - - - - 1.00 Source Control Inspector 11 - - - - 9.00 Administrative Assistant - - - - 1.00 Environmental Technician 3.00 Total NPDES Source Inspection 16.00 342 Odor and Corrosion Control Engineering Supervisor - - - - 1.00 Associate Engineer - - - - 1.00 Senior Environmental Specialist - - - - 2.00 Engineering Assistant 1 - - - - 1.00 Environmental Technician 1.00 Total Odor&Corrosion Control 6.00 343 Collection Facilities O&M Maintenance Supervisor - - - - 2.00 Lead Mechanic - - - - 5.00 Senior Mechanic - - - - 8.00 Mechanic 8.00 Total Collection Facilities O&M 23.00 Total Facilities Support Services Department 83.75 01.00 78.00 Technical Services Department 610 Technical Services Administration Director of Technical Services 1.00 1.00 - - - Senior Engineer 1.00 1.00 - - - Associate Engineer 111 1.00 1.00 - - - Executive Assistant 1.00 1.00 Total Technical Services Administration 4.00 4.00 620 Environmental Compliance&Regulatory Affairs Environmental Assessment Manager 1.00 1.00 - - - Environmental Supervisor 2.00 1.00 - -Senior Engineer 1.00 - - - - Senior Scientist 1.00 1.00 - - - Engineer 1.00 - - - - Regulatory Specialist 2.00 2.00 - - - Associate Engineer 111 1.00 1.00 - - - Principal Environmental Specialist 1.50 1.50 - - - PrincipalLaboratoryAnalyst - 1.00 - - - Senior Environmental Specialist 3.50 3.50 - -Administrative Assistant 1.00 1.00 - -Program Assistant - 1.00 - - - Intern 1.00 1.00 Total Environmental Compliance 16.00 15.00 A-25 Return to Acenda Reoon Historical Staffing Detail Authorized AuthmiEed Authorized! Authorized Proposed FTEs FTEs FTEs FTEs FTEs Division&Position 2009-10 2010-11 2011-12 2012-13 2013-14 630 Environmental Laboratory and Ocean Nictitating Laboratory Manager 1.00 1.00 - - - Environmental Supervisor 1.00 1.00 - - - Laboratory,Section Supervisor 3.00 3.00 - - - LIMSAdministrator 1.00 - - -Senior Scientist 3.00 3.00 - - - Scientist 2.00 2.00 - - - Principal Environmental Specialist 2.00 2.00 - - - princlpalLaboratoryAnalyst 8.00 7.00 - - - Senior Environmental Specialist 5.00 6.00 - - - SanlorLabOmtoryAnalyst 11.00 10.00 - - - Environmental Specialist 1.00 1.00 - -Laboratory Analyst 4.00 3.00 - - - Administrative Assistant 1.00 1.00 - -Laboratory Assistant 3.00 3.00 - - - Intern 0.50 0.50 Total Environmental Laboratory and Ocean Monitoring 46.50 43.50 "0 Source Control Source Control Manager 1.00 1.00 - - - Engineering Supervisor 2.00 3.00 - - - Senior Engineer - 1.00 - - - SeniorRegulatorySpecialist 1.00 1.00 - - - Engineer 6.00 6.00 - - - Regulatory Specialist 1.00 - - - - Source Control Supervisor 1.00 1.00 - - - Associate Engineer III 3.00 3.00 - - - Principal Environmental Specialist 2.00 2.00 - - - SeniorEnvlronmentalSpecialist 2.00 2.00 - - - Source Control Inspector II 11.00 11.00 - -Administrative Assistant 1.00 1.00 - - - Environmental Technician 3.00 3.00 - - - Program Assistant 4.00 4.00 - - - Office Assistant 1.00 1.00 Total Source Control 39.00 40.00 Total Technical Services Department 105.50 102.50 Engineering Department 910 Engineering Administration Assistant General Manager - - 1.00 1.00 - Director olEngineering 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 2.00 1.00 1.00 1.00 1.00 Senior Engineer 2.00 1.00 4.00 6.00 4.00 Engineer 1.00 1.00 1.00 3.00 5.00 Principal Stag Analyst 1.00 1.00 - - 1.00 Utilities Management Specialist - - - 1.00 - Associate Engineer - - - 1.00 2.00 Associate Engineer III - - 1.00 - - Principal Environmental Specialist - - - - 1.00 Senior Engineering Associate 1.00 1.00 1.00 1.00 - Assistant Engineer - - - 1.00 1.00 Associate Engineer ll - - 1.00 - - Engineering Associate 2.00 1.00 1.00 - - Senior Staff Analyst - - - - 1.00 Engineering Data Management Technician 11 2.00 - - - - Associate Engineer 1 1.00 1.00 - - - Engineering Assistant 11 1.00 - - - - Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Engineering Assistant I 2.00 Total Planning 700 9.00 12.00 15.00 18.00 A-26 Return to AOentla Report 2013-14 Budget Update Authorized Authorized Authorized Authonzed Proposed FTEs FTEs FTEs FTEs FTEs Division 8 Position 2009-10 2010-11 2011-12 2012-13 2013-14 750 Project Management Office Engineering Manager 1.00 1.00 1.00 1.00 1.00 CIP Project Management Supervisor 1.00 1.00 1.00 1.00 - Engineering Supervisor 1.00 - - - 1.00 Program Controls Supervisor - 1.00 1.00 - - Project Controls Supervisor - - - - 1.00 Capital Improvement Program Project Manager 7.00 6.00 6.00 8.00 8.00 Principal Project Controls Analyst 1.00 1.00 1.00 1.00 1.00 Engineer - - - - 1.00 Principal Engineering Data Management Specialist 1.00 1.00 - - - Princlpal Staff Analyst 2.00 1.00 2.00 2.00 1.00 Cost Estimator 1.00 1.00 1.00 1.00 1.00 Planner/S.h.duler 1.00 1.00 1.00 1.00 1.00 Senior Staff Analyst - 1.00 1.00 1.00 2.00 Engineering Assistant II 1.00 1.00 1.00 1.00 - Administrative Assistant L00 L00 - 1.00 L00 Office Assistant 1.00 1.00 1.00 1.00 1.00 Total Project Management Office 19.00 18.00 17.00 19.00 20.00 760 Engineering 8 Construction Engineering Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 4.00 3.00 3.00 3.00 3.00 Senior Construction Inspection Supervisor 1.00 1.00 1.00 1.00 1.00 Senior Engineer 8.00 8.00 8.00 8.00 8.00 Construction Inspection Supervisor 2.00 2.00 2.00 1.00 1.00 Engineer 10.00 13.00 15.00 14.00 10.00 Associate Engineer - - - 3.00 2.00 Associate Engineer 111 4.00 3.00 2.00 - - Senior Engineering Associate 1.00 1.00 1.00 1.00 - SeniorConstrucllonlnspector 7.00 7.00 7.00 7.00 7.00 Assistant Engineer - - - 1.00 1.00 Associate Engineer ll - 1.00 1.00 - - Senior Staff Analyst 1.00 - - 1.00 - Construction Inspector 10.00 10.00 9.00 9.00 9.00 Associate Engineer l 1.00 - 1.00 - - Engineering Assistant II 2.00 2.00 2.00 3.00 3.00 Public Affairs Specialist 1.00 1.00 1.00 - - Staff Analyst - - - 1.a0 1.00 Administrative Assistant 3.00 3.00 3.00 2.00 2.00 Engineering Assistant 1 1.00 1.00 1.00 1.00 1.00 Program Assistant - - - - 1.00 Intern 0.50 0.50 0.50 Total Engineerng&Construction 57.50 57.50 58.50 57.00 51.00 770 Facilities Engineering Engineering Manager 1.00 L00 - - - Engineering Supervisor 1.00 1.00 - - - Senior Engineer - 1.00 - - - Engineer 5.00 3.00 - - - Associate Engineer II 1.00 1.00 - - - Engineering Associate 1.00 1.00 - - - Administrative Assistant 1.00 1.00 Total Facilities Engineering 10.00 8.00 780 Asset Management Engineering Manager - 1.00 1.00 - - Engineering Supervisor - 2.00 - - - Senior Engineer - 4.00 3.00 - - Principallnformation Technology Analyst - 2.00 - - - Engineer - 3.00 1.00 - - Utilities Management Specialist - 1.00 1.00 - - Senior Information Technology Analyst - 3.00 - - - Information Technology Analyst III - 2.00 - - - Engineering Associate - 1.00 - - - Information Technology Analyst II - 1.00 - - - Engineering Data Management Technician II - 2.00 - - - Associate engineer - 1.00 - - - Englneering Assistant 11 - 1.00 - - - Englneering Assistant 1 1.00 Total A6ael Management 25 00 6.00 A-27 Return to Agenda Reoon Historical Staffing Detail Authorized Authorized Authorized Authorized Proposed FTEs FTEs FTEs FTEs FTEs Division&Position 2009-10 2010-11 2011-12 2012-13 2013-14 790 Environmental Compliance Environmental Compl&Reg Affairs Manager - - 1.00 1.00 1.00 Engineering Supervisor - - 2.00 2.00 2.00 Environmental Supervisor - - 1.00 1.00 1.00 Public Affairs Manager - - - - 1.00 Senior Scientist - - 1.00 1.00 1.00 Engineer - - 6.00 6.00 6.00 Regulatory Specialist - - 2.00 2.00 3.00 Associate Engineer - - - 4.00 4.00 Associate Engineer III - - 4.00 - - Principal Environmental Specialist - - 2.50 3.50 2.50 Principal Laboratory Analyst - - 1.00 1.00 - SeniorEnvironmentalSpecialisl - - 4.50 4.50 4.50 Administrative Assistant - - 2.00 1.00 1.00 Program Assistant - - 4.00 4.00 4.00 Office Assistant - - 1.00 1.00 1.00 Intam 1.00 Total Environmental Compliance 33.00 32.00 32.00 Total Engineering Department 105.50 120.50 128.50 125.00 123.00 Operations&Maintenance Department $10 Operations&Maintenance Administration Director of Operations&Maintenance 1.00 1.00 1.00 1.00 1.00 Operations Manager - - - - 1.00 Principal Financial Analyst - 1.00 - - - Senior Financial Analyst - - - 1.00 - Senior Staff Analyst - - - - 1.00 Executive Assistant 1.00 1.00 1.00 1.00 - Intem 0.]5 Total Operations&Maintenance Administration 2.00 3.00 2.75 3.00 3.00 820 Ocher&Corrosion Control Engineering Manager 1.00 1.00 - - - Senior Engineer 3.00 2.00 - - - Principal Financial Analyst 1.00 - - - - Regulatory Specialist 1.00 - - - - Sashmat 1.00 - - - - AssociateEngineerlll 2.00 1.00 - - - AssociateEngineerll 1.00 - - - - SeniorEnvironmentalSpecialist 3.00 3.00 - - - Engineering Assistant I - 1.00 - - - Environmental Technician 1.00 1.00 - - - Imam 0.50 0.50 Total Odor&Corrosion Control 14.50 9.50 830 Plant No.1 Operations Engineering Manager - - - - 1.00 Engineering Supervisor 1.00 Operations Manager 1.00 1.00 1.00 1.00 - Chief Plant Operator 1.00 1.00 1.00 1.00 1.00 Senior Engineer - 1.00 2.00 2.00 2.00 Engineer - 1.00 2.00 2.00 2.00 Operations Supervisor 7.00 7.00 7.00 6.00 6.00 Scientist - 1.00 1.00 1.00 1.00 Assistant Engineer - - - 2.00 2.00 Associate Engineer II - 1.00 1.00 - - Senior Environmental Specialist - - 1.00 1.00 1.00 Lead Plant Operator 5.00 5.00 5.00 5.00 5.00 Senior Plant Operator 15.00 15.00 15.00 15.00 15.00 Administrative Assistant 0.75 0.75 0.75 - 1.00 Plant Operator 13.00 13.00 14.00 16.00 14.00 Control Center Technician 3.00 3.00 2.00 2.00 2.00 Program Assistant 1.00 Total Plant No. 1 Operations 1 45.75 1 49.75 52.]5 54.00 54.00 A-28 Return to Acentla Report 2013-14 Budget Update Authorized Authorized Authorized Authorized Proposed FTEs FTEs FTEs FTEs FTEs Division&Position 2009.10 2010-11 2011-12 2012-13 2013.14 840 Plant No.2 Operations Chief Plant Operator 1.00 1.00 1.00 1.00 1.00 Operations Supervisor 7.00 7.00 7.00 6.00 6.00 Lead Plant Operator 5.00 5.00 5.00 5.00 5.00 Senior Plant Operator 13.00 12.00 12.00 14.00 14.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Equipment Operator 1.00 - - - - Plant Operator 19.00 20.00 20.00 19.00 20.00 Control Center Technician 1.00 1.00 1.00 1.00 1.00 Total Plant No.2 Operations 48.00 47.00 47.00 47.00 48.00 850 Building,Grounds,and Mechanical Maintenance Maintenance Manager 1.00 1.00 1.00 1.00 1.00 Engineer - - - - 1.00 Utilities Management Specialist 1.00 - - - - Maintenance Supervisor 6.00 &00 6.00 6.00 6.00 Associate Engineer - - - 1.00 1.00 Associate Engineer III 1.00 1.00 1.00 - - Maintenance Specialist - - 4.00 4.00 5.00 Senior Public Affairs Specialist 1.00 1.00 1.00 - - Reliability Maintenance Technician 2.00 2.00 2.00 4.00 4.00 Lead Mechanic 5.00 5.00 5.00 4.00 4.00 Machinist 1.00 1.00 - - - Administrstive Assistant 1.00 1.00 1.00 1.00 1.00 Senior Mechanic 33.00 33.00 30.00 30.00 29.00 Welder/Fabricator 3.00 3.00 - - - Lead Facilities Worker - - 2.00 1.00 1.00 Facilities Worker/Builder - - 3.00 3.00 3.00 Facilities Worker/Painter - - 2.00 2.00 2.00 Mechanic 2.00 2.00 2.00 2.00 2.00 Maintenance Worker 2.00 2.00 1 2.00 2.00 1 2.00 Total Building,Grounds,and Mechanical Maintenance 59.00 58.00 62.00 61.00 62.00 860 Instrumentation&Electrical Maintenance Engineerng Manager - 1.00 1.00 1.00 1.00 Process Controls Manager 1.00 - - - - Engineering Supervisor 2.00 1.00 1.00 1.00 1.00 Senior Engineer 2.00 - 2.00 3.00 3.00 Principal Information Technology Analyst 2.00 - 2.00 1.00 1.00 Engineer 2.00 - 2.00 2.00 4.00 Senior Information Technology Analyst 3.00 - 3.00 3.00 4.00 Maintenance Supervisor 5.00 5.00 5.00 5.00 5.00 Information Technology Analyst III 2.00 - 2.00 2.00 2.00 Information Technology Analyst II 1.00 - 1.00 1.00 - Lead Electrical Technician 4.00 4.00 4.00 5.00 5.00 Lead Instrumentation Technician 3.00 3.00 3.00 3.00 3.00 Lead Power Plant Operator 1.00 1.00 1.00 1.00 1.00 Electrical Technician II 14.00 14.00 14.00 14.00 13.00 Instrumentation Technician II 19.00 19.00 18.00 18.00 15.00 Power Plant Operator ll 9.00 9.00 9.00 8.00 8.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Power Plant Operator 1 1.00 1.00 1.00 1.00 1.00 Electrical Technician 1 1.00 1.00 1.00 1.00 2.00 Instrumentation Technician 1 1.00 1.00 1.00 1.00 1.00 Maintenance Worker 1 2.00 2.00 3.00 3.00 4.00 Total Instrumentation&Electrical Maintenance 76.00 63.00 75.00 75t 75.00 A-29 Return to Agenda Reoon Historical Staffing Detail Authorized Authorized Authorized Authorized Proposed FTEs FTEs FTEs FTEs FTEs Division&Position 2009-10 2010-11 2011-12 2012-13 2013-14 870 Collection Facilities Operations&Maintenance Engineering Manager 1.00 - - - - Engineenng Supervisor - 1.00 - - - Maintenance Supervisor 2.00 2.00 - - - SeniorEngineeringAssociate 1.00 1.00 - - - Lead Mechanic 5.00 5.00 - - - Administrative Assistant 1.00 - - -Senior Mechanic 9.00 9.00 - - - Mechanic 8.00 8.00 Total Collection Facilities Operations&Maintenance 27.00 26.00 330 Facilities Maintenance&Fleet Services Facilities Manager 1.00 1.00 - - - Maintenance Supervisor 4.00 4.00 - - - Maintenance Specialist 7.00 6.00 - - - CMMSTechnicianll 600 7.00 - - - CMMSTechnicianl - 1.00 - - - Lead Mechanic 1.00 1.00 - - - Administrative Assistant - 1.00 - - - Automotive/Heavy Equipment Technician 3.00 3.00 - - - Equipment Operator 2.00 2.00 - - - Engineering Assistant 1 1.00 - - - - Lead Facilities Worker 2.00 2.00 - - - Facilities Worker/Builder 3.00 3.00 - - - Facilities Worker/Painter 2.00 2.00 - - - Automotive/Heavy Equipment Assistant 1.00 1.00 - - - Office Assistant 1.00 1.00 Total Facilities Maintenance&Fleet Services 34.00 35.00 890 Environmental Laboratory and Ocean Monitoring(formerly division 630 Environmental Lab&Ocean Monitoring Manager - - 1.00 1.00 1.00 Environmental Supervisor - - 1.00 1.00 1.00 Laboratory Supervisor - - 2.00 2.00 2.00 Senior Scientist - - 3.00 4.00 3.00 Scientist - - 1.00 1.00 1.00 Principal Environmental Specialist - - 3.00 3.00 2.00 Principal Laboratory Analyst - - 7.00 6.00 6.00 Senior Environmental Specialist - - 6.00 5.00 6.00 Boat Captain - - - 1.00 1.00 Senior Laboratory Analyst - - 10.00 11.00 10.00 Environmental Specialist - - - - 1.00 Laboratory Analyst - - 3.00 2.00 3.00 Administrative Assistant - - 1.00 1.00 1.00 Laboratory Assistant - - 3.00 3.00 3.00 Inlem 0.50 Total Environmental Laboratory and Ocean Monitoring 41.50 41.00 41.00 Total Operations&Maintenance Department 306.25 291.25 231.00 281.00 283.00 Grand Total,All Departments 661.00 641.00 637.00 627.75 626.00 A-30 Return to Agenda Report 2013-14 Budget Update Appropriations Limit In certain situations, proceeds of taxes Article XIIIB of the California State Constitution, may be spent on emergencies without more commonly referred to as the Gann Initiative having to reduce the limit in future years. or Gann Limit, was adopted by California voters in 1980. The Gann Limit placed limits on the amount Each agency also conducts a review of its of proceeds of taxes that state and local Appropriations Limit during its annual governmental agencies can receive and financial audit. appropriate (authorize to spend)each year. The law requires a governing body to annually The limit is different for each agency and the limit adopt, by resolution, an appropriations limit for the changes each year. The annual limit is based on following year,along with a recorded vote the amount of tax proceeds that were authorized regarding which of the annual adjustment factors to be spent in fiscal year 1978-79 in each agency, have been selected. The Orange County modified for changes in inflation and population in Sanitation District's appropriations limit and each subsequent year. annual adjustment factors are adopted at the same meeting as the budget. The adjustment Proposition 111 was passed by the State's voters factors used for 2013-14 are the weighted in June 1990. This legislation made changes to average change in city population and the change the manner in which the Appropriations Limit is to in state per capita personal income. be calculated: The following table shows the annual The annual adjustment factors for inflation appropriations limit for each of the last two years and population have been changed. and the appropriations limit and the Instead of using the lesser of California appropriations, or proceeds from taxes,for per capita income, or U.S. CPI,each 2013-14. The increase in the limit is based upon agency may choose either the growth in population changes ranging from 0.45%to 1.78% the California per capita income, or the for major cities within the District as provided by growth in assessed valuation due to new the State Department of Finance and a per capita non-residential construction within the personal income change of 5.12%as provided by district. For population, instead of using the State Department of Finance. only the population growth of an agency, each agency may choose to use the Annual Appropriation Limits: population growth within its county. 2011-12 $81,888,000 These are both annual elections. 2012-13 $85,835,000 The revised annual adjustment factors will 2013-14 $90,880,000 be applied to the 1986-87 limit for most agencies and each year in between in Proceeds of Taxes(Appropriations) order to calculate the 1990-91 limit. The 2013-14 $73,699,000 actual limits for the intervening years, however, are not affected. As a result of the July 1998 consolidation of the District, a single limit is presented in contrast to Expenditures for"qualified capital outlay", individual limits shown in years prior to 1998. which are capital assets with a value of Population changes for representative cities have more than$100,000 and an expected life continued to be used in order to ensure of 10 years or more, are excluded from consistency and to eliminate significant population the limit. growth in parts of the County outside of the District's service area. This method results in a An agency which exceeds the limit in any lower limit than using the County-wide change. 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. A-31 Return to Agenda Reoort Miscellaneous Statistics General Information Year ofFortmtion.........................................................1948 Miles of Sewers...........................................................572 miles Form of Government...................County Sanitation District On-Plant Pump Station.................................................2 Authority..............................................Section 4700 et.seq. Off-Plant Pump Stations........................... 15 ..........................................California Health&Safety Code Operating Authority.....................RWQCB/NPDES Permit No. Service Area....................................................479 sq.miles ...............................................................CA0110604 Service Population......................Approximately 2.5 million .................................Statewide WDR Order No.2006-0003 2012-13 Assessed Value.................................$316.4 billion 2013-14 Authorized Staff(Full-Time Equivalent)...........626.00 Treatment Information Daily Influent now to Total Primary 2011-12 Influent BOD: Capacity Comparison(in mgd) Plant No. 1................................310 milligrams per liter are Plant No. 2................................210 milligrams per liter goo 2011-12 Influent Suspended Solids: ass aoa Plant No. 1................................339 milligrams per liter 200 Plant No. 2................................286 milligrams per liter - cr 103 -- 2011-12 Effluent ROD...........................10.3 milligrams per liter too 0 2011-12 Effluent Suspended Solids.........7.6 milligrams per liter vlxnll elan@ Tool 2011-12 Biosolids Produced&Reused............280,547 wet tons .2012.13 Est Intl—. neapacity-Primary Treatment Primary Treatment Capacity(includes standby): 2012-13 Estimated Average Daily Influent: Plant No. 1................................................204 mgd Plant No. 1.........................................................97 mgd Plant No. 2................................................168 road Plant No. 2....................................................... 10 3 ad TOTAL....................................372m s! TOTAL...........................................290 mad Secondary Treatment Capacity: 2012-13 Estimated Electricity Generated: Plant No. I................................................182 road Plaat No. 1............................................30,850,000 kwh Plant No. 2................................................15� Plant No. 2........................................... 33,770,000 kwh TOTAL 3.32,lil d TOTAL................................64.620.000 kwh Bend: mad—million&perh per day kwh—kilownttcPe how Financial Information 2013-14 2013-14 2011-12 2012-13 Originally Updated Achlal PoRlected Proposed Proposed Fees and Charges: One-Time 3-Bedroom Residence Connection $3,341.00 $3.369.00 $3.369.00 $3.430.00 Average Annual Single-Family Residence Fee $267.00 $294.00 $306.00 $308.00 Local SFR Fee $212.00 $216.00 $225.00 $216.00 District.Aug.Share of Atl Valorem Properly Tax 1.80% 1.80% 1.80% 1.80% Costto Collect,Treat,&Dispose of 1 Milan Gallons $1.968.48 $2.016.31 $ 2.051.65 $ 1.992.66 Summarvof COP Issues: August2000 Refunding/New Money $ 80,600,000 May 2010A New Money 80,000,000 Msy2007AReamd1ng 92.620,000 Nowm her 20100 New Money 157,000.000 December 2007B New Money 273,400,000 September2011ARefunding 140,195,000 May2009ARefunding 19,195,000 February2012ARefunding 100,645,000 September 2008B New Money 26,075,000 August 2012B Retarding 66,395,000 April 2009ANew Money 187.766,000 October 20120 Refunding 131700.000 Total Outstanding COP Balance 7/1113 $1.355,590,000 A-32 Return to Agenda Report Yr ; -T " NGE COUNTY SANITATION DISTRICT Asalsomal Wastewater Treatment Process Diagram LANDFILL l e.PRIMARY TREATMENT R \ FCIlowi(f preliminary treatment where re unts and school spedatlarge settling solthodids and dadN re scraped W the bottom and the lighter TIIE heavier COMPOST solids cope add are ins.T tl off the bottom,and m vied ar material is skimmed r / off the Ica of the basins.The materials that are removed are sent to solids p ', processing facilities.Adding coagulants to the raw wastewater improves settling — 3.eAIRmi EMISSIONS CONTROL — LAND APPLICATION / T o e solids resu er I in to secondary treated wastewater The ded into Chemical airextrctedrmthers �a isdherpumpetl to secondary treatment facilities;or bbndetl into - encloselean eailtment OtlfrOmthe VdrlOYa IhE QOed IBtl efflYerll. / enclosed treatment facilities. '-T 0.SOLIDS rem PROCESSINGduringth Sands removed during the treatment processes are pumped into 2.CHEMICAL ADDITION / digesters where they undergo natural decomposition for 20-30 poll Hydrogen peroxide is added to the incoming wastewater Half the solids Convert to a Bids mostly made up of methane.w111Ch Is to help reduce hydrogen sulfide and control odors. — sent to our own emrgy recovery lacilities add . Chemical coagulants are added pr the wastewater - IDE achieve ant solids are pumped to i l(with a c0 facilities to enhance the primary seUlinB Process, to achieved 23 cement solid material(wRh a cakecyce �, Cen515tlnCy)Lolled nct land n1da The Oion as a aresoil amend led fartlrM, r usdDPll make d5a5011 demands t `, or used to make composted sent to 7 can also it coessary or sent to f a landfill if necessary. i/ T ENERGY RECOVERY In our Central Power Generation Facility, the methane gas derived from the digesters s used to power engine-generatoru units roar produce the electricity used as the energy 1.Wastewater passe TREATMENT bar � source to operate bath treatment plants. Wastewater passes through bar screens thatflows trap and chambers /�^ / / ^�^ rl large and noaviest m materials.It then flows into Brit Chambers where the heaviest materials.such as egg shells.coffee grounds and sand,settle out.The materials removed during these _ processes are sent to a sxndary landfill. l 0 OCEAN DUIFALL PUMPING STATION S.SEced primary treated wastewater ^� blended itd undandhematertrombaectionrss Advanced pr mary ion basins where into a large ge hear confaler pipe This faco and rose thedechlo cape n Is pumped to aeration basins where into d largo ocean outlall pipe. ace watery has the rapacity to pump microorganisms organic solids sludge consume ^� SAD million gallons of treated wastewatera day,whichhelpsus hand.! Z the remaining organic solitls.The wastewater is then pumped stormp2ter inflows and will meet our capacity needs for marry years. into seUlinB basins bot where the activated the aeration do series out.Most a it e is scraped offes the bottom and is send o the aeration basins to regenerate this prpeESe and the excessfilar t sent tosolids with c processing. -Triddingp an Imes pmvltla similar treatment wIM mlcmbes i IMnp an media, �ara O.OCEAN OUTFALL _ r long Danes safely d pipe Is 10 feel In tllameMa .�j:' - ---- Iona anon ouffdischa is 10fastein cartel ,_ 10.WATER RECLAMATION of 200 feet The last mile of we PIfeNOMfal _ We provide secondary-treated wastewater to the section with hundreds of Motes,wi propose a O � -- OmnBeCountyWatarOistntlforadvancestreatmentantl high rate OLditaft with nIN gseawater. LANDSCAPE IRRIGATIONdistrict —.. - that provide The water wa has two theinfoPlants that provide recorded tablethateitherinfectedinto thegroundwater to bIPCF seawater � .a Intrusion.or used for the Groundwater HeWWQ04XKMPEVrt. s �t the water is also used for landscape irripaaon addirreMEs. • a TER INTRUSION BARRIER - - ` 0 AATER REPLENISHMENT SY&TEMiwmw%• ��rear_ ADMINISTRATION COMMITTEE Meeting Date To ad.of Di, 06,12,13 -- AGENDA REPORT Item Number Item Number a Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Nick Kanetis, Director of Engineering SUBJECT: COST RECOVERY FOR URBAN RUNOFF FLOWS GENERAL MANAGER'S RECOMMENDATION Information Only. SUMMARY Since 1999, The Orange County Sanitation District (OCSD), as a part of a county-wide regional effort, has been accepting, treating, and properly disposing of bacterial laden urban runoff from several coastal watersheds in Orange County to reduce bacterial impacts on Orange County's beaches. The effectiveness of this Urban Runoff Program has been demonstrated through an observable and gradual decrease in the number of beach closures along Huntington State beach and other city beaches. To date, the program continues to provide public health and environmental protection for Orange County's coastal resources, while also providing an economic benefit to the local economy by helping to keep its beaches open. Due to increasingly strict receiving water quality standards, OCSD is receiving requests to accept additional urban runoff discharges. On an annual basis, urban runoff discharges average 2 million gallons per day (MGD); however, during the heaviest discharge months, the flows peak at 3.5 MGD. Proposed new urban runoff flows will result in average monthly flows of 4-6 MGD. Under the current Urban Runoff Policy, Resolution No. 01-07, all permit holders will pay for all treatment costs when the monthly average flow from urban runoff permits exceeds 4 MGD. The flows from these proposed diversions would trigger the collection of wastewater treatment charges for the first time since inception of the urban runoff program. Concurrently, the Board of Directors requested action to amend the Urban Runoff Policy. As part of the 2010 and 2011 Strategic Plan initiatives, staff was directed to seek cost recovery for Urban Runoff discharges. In response to the Strategic Plan, OCSD staff have met with the participating cities and agencies to explain the issues and costs associated with the current Urban Runoff Diversion Program. OCSD staff discussed cost sharing among the Municipal Separate Stormwater Sewer Systems (MS4) National Pollutant Discharge Elimination System (NPDES) permit members, and with OC Watersheds, the lead agency for Orange County's NPDES Stormwater permit. The conclusion of these discussions was that: (1) OC Watersheds doesn't have the legal authority to impose fees; therefore, a mechanism for equitably allocating the costs to the MS4 members did not appear feasible through the regulatory scope of that agency; and (2) the diversions Page 1 of 5 proposed by MS4 NPDES permittees are for pollutants (mainly bacteria and selenium) that are not readily treatable by conventional stormwater best management practices. Based on conversations with stakeholders, staff has developed alternatives to the current resolution to share the cost between OCSD and the permit holders. The alternatives provide relief for the first 4-6 MGD of urban runoff discharges, but modifies the resolution to institute a user charge provision for flows above the 4-6 MGD threshold to recover some of the treatment costs. The charges would be applicable only to those flows above 4-6 MGD. Charges would be based upon flow and strength (Biochemical Oxygen Demand (BOD)) and Suspended Solids (SS). Costs would be divided among all permittees based upon their proportional contribution to the total flow. PRIOR COMMITTEE/BOARD ACTIONS November 2011 — Adopted the updated Strategic Plan which reiterates the desire for cost recovery for urban runoff flows. Direction is given to negotiate with the County of Orange as the MS4 NPDES permit holder. November 2010 — Adopted the updated Strategic Plan which included a new goal, the full- cost recovery for the urban runoff flows. March 2001 — Adopted Resolution No. 01-07 Establishing Dry Weather Urban Runoff Policy. ADDITIONAL INFORMATION Since 1999, OCSD has treated a total of 7.0 billion gallons of dry-weather urban runoff from the City of Huntington Beach, Orange County Public Works, City of Newport Beach, Irvine Ranch Water District, and The Irvine Company. The total cost for treatment of these flows has reached $5.9 million during this period. OCSD will continue to receive between 500 and 700 million gallons per year if current discharge trends remain unchanged and no new diversion systems are added. The urban runoff treatment cost for 2011-12 was $922,000 based upon the reported diversion of 640 million gallons. Treatment costs are projected to increase to $1,013,000 for fiscal year 2012-13 if the diversion flows remain at that level. Five additional urban runoff diversions have been proposed to deal with bacteria and selenium loading to the Newport Back Bay Watershed: Peters Canyon in the City of Irvine, Big Canyon Wash in the City of Newport Beach, and the Delhi, Santa Fe, and Lane flood control channels in the City of Santa Ana. Pursuant to OCSD's Dry-Weather Urban Runoff Policy (Resolution No. 01-07), no fees or charges shall be imposed until the accumulative discharge of urban runoff from all sources exceeds 4 MGD in any one month. However, when the discharge surpasses 4 MGD, the current resolution imposes operation and maintenance fees to cover the cost of treating the entire flow, along with any related administrative costs. The discharge from the additional five proposed diversions combined with the existing diversion flows will exceed Page 2 of 5 the 4 MGD payment threshold. At present, Urban Runoff permit holders include: City of Huntington Beach, Irvine Ranch Water District, the Irvine Company, and Orange County Public Works. The permitting process for the Newport Dunes diversion has been initiated with the City of Newport Beach, and this permit is expected to be issued shortly. Proceeding with this initiative, staff has: A. Presented the preliminary Urban Runoff Cost Recovery Plan to the County of Orange NPDES Technical Advisory Committee (TAC). Staff met with the TAC on two additional occasions to update them on the cost recovery issue including the proposed options, document their suggested changes to the rate structure, and to inform the group of the plan to take this item to the OCSD Board for consideration. B. Met with the following County of Orange representatives at OC Watersheds: Senior water quality engineer- OC Watersheds Manager- Environmental Resources - OC Watersheds Manager- OC Public Works - OC Engineering, Flood Control Manager- OC Watersheds C. Met with City of Newport Beach assistant city engineer and the City of Huntington Beach environmental engineer. D. Drafted a revised Urban Runoff Policy to replace Resolution No 01-07. The revised document eliminates all language referring to waiving fees and charges, and it establishes provisions for levying a permit application fee and various use charges (revised draft may need further revisions based upon the Board's direction). E. Met with the TAC subcommittee (representatives from Huntington Beach, Irvine, and Newport Beach) to discuss the urban runoff rate structure options. Met with a representative from the City of Santa Ana after the TAC subcommittee meeting. F. Met with representatives from the City of Irvine and the Irvine Ranch Water District to discuss the diversion of Peters Canyon. OPTIONS FOR BOARD/COMMITTEE CONSIDERATION Resolution No. 01-07 suggested that the Board of Directors would eventually consider imposing costs for the urban runoff diversion flows. Consistent with OCSD's policy of Fair Share Cost Recovery for Services Provided, it has been proposed that OCSD begin charging for the diversion of urban runoff proportionate to the treatment costs for such flows. Without the incentive provided by cost recovery, the urban runoff permittees have less motivation to minimize or eliminate dry weather flows. Once essentially free sewer disposal is off-the-table, more stringent practices and strategies, such as managed diversion pumping regimes, stormwater system improvements aimed at controlling infiltration, or wetlands restoration and enhancement, might become viable alternatives for controlling bacterial levels and pollutant contamination in Orange County's recreational waters. Page 3 of 5 OCSD staff has formulated three alternative options for cost allocation of Urban Runoff discharges, and a fourth option as suggested by the Orange County NPDES Technical Advisory Committee (TAC). The four options are: Option 1: Maintain Resolution No. 01-07 (Status Quo) Option No. 1 would maintain the existing waiver of sewer use charges for all costs below the 4 MGD threshold, but would charge the permittees for the entire flow volume, including the initial 4 MGD, if the threshold were exceeded. This option requires no changes to Resolution No. 01-07. The addition of Urban Runoff Use Charge language to the fee Ordinance is advised. Option 2: Cancel Urban Runoff Cost Recovery Completelv Option No. 2 would remove all requirements for permittees to pay any treatment costs from the Urban Runoff Program. This option would require modifications to Resolution No. 01-07. Option 3: Begin Cost Recovery for Flows Above 4 MGD on a Proportional Basis Option No. 3 would waive all costs below the 4 MGD threshold, but would proportionally charge the permittees a use charge based upon flow, Biochemical Oxygen Demand (BOD), and Suspended Solids (SS) for flows above the 4 MGD threshold monthly average. This option would require the Board of Directors to repeal and replace Resolution 01-07. The Orange County NPDES TAC formally supported Option 2 above; but as an alternative, it is requesting OCSD's Board of Directors consider the following proposal and modifications to the urban runoff cost recovery rate structure: Option 4: Change the Threshold for charges to begin at 6 MGD This proposal, offered by the TAC, recognizes the merit of Option No. 3 above, but requests increasing the threshold from 4 MGD to 6 MGD. Regardless which proposal the Board ultimately chooses to advance, the TAC supports the following Urban Runoff Policy modifications: • Increase the 4 MGD cost recovery threshold to 6 MGD. • Change the average flow calculation method for the threshold from monthly to yearly (this essentially allows the permittees to manage flows on an annual basis to avoid all treatment charges). • Stipulate that charges be applied to the flows over the threshold and not retroactively applied to the flows from the first gallon to the threshold amount (OCSD would assume the cost of treating all flows up to the threshold amount). Page 4 of 5 OCSD staff recommends that all options retain the daily 10 MGD cap on Urban Runoff discharges. URBAN RUNOFF TREATMENT COST COMPARISON* (Cost Estimates in Million Dollars per Year) Avenge Option 1 Option 2 Option 3 Option 4 only o6n's Cost Perminees' ties Can Perminere o60's Can Perminees' o6D's Can permittees' oix6arge con con Con Can 0-4 MGD D-2 0 0.2 0 b2 D 0.2 D 4-6 MGD 0 2-3 2-3 0 2 0-1 2-3 0 6-10 MGD 0 3-5 3-5 0 2 1-3 3 0-2 *Cost projections based upon 2012 diversion discharge flows(FY 2012-13 Class I use charge rates) Comparison Cost Analysis* OCSD would cover $2,000,000 of Urban Runoff treatment costs up to the 4 MGD threshold under options 1 and 3 based upon 2011-12 flow diversion numbers and sewer use rates. Under option 3, the permittees would collectively assume the treatment cost for up to 6 MGD (flows between the 4 MGD threshold and the 10 MGD cap) at a potential annual cost of $3,000,000 allocated according to the proportional contribution of each permittee. Under option 2, OCSD would potentially incur the entire Urban Runoff treatment cost of $5,000,000 if diversion flows reach the 10 MGD cap. The entire cost of treatment for all Urban Runoff diversion flows shifts to the permittees above 4 MGD under option 1. 6 MGD Threshold Cost Analysis* OCSD would cover $3,000,000 of Urban Runoff treatment costs up to the 6 MGD threshold under option 4. Under option 4, the permittees would collectively assume the treatment cost for up to 4 MGD (flows between the 6 MGD threshold and the 10 MGD cap) at a potential annual cost of $2,000,000 allocated according to the proportional contribution of each permittee. Estimated Future Cost Under Current Policy** The following table provides an estimated allocation of charges under the current policy based upon actual 2012 diversion discharges plus the estimated flows from the proposed diversions if the total of those five additional discharges reach their projected flow of 4 MGD. At this projected diversion level, the average monthly discharge will likely exceed the 4 MGD threshold during six months of the year. CURENT POLICY ON ESTIMATED URBAN RUNOFF CHARGES`* (Estimated User Charges in Dollars per Year) Huntington Beach Newport Beach IRWD DOM Santa Ana OCSD Option 1 267,295 32,506 536,261 339,]3] 679,103 711,078 % 10% 1% 21% 13% 26% 28% —Estimate based upon FY 2012-13 Class I use charge rates Page 5 of 5 CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE Depending on the outcome of the process, changes to the annual budget may be necessary to cover increased or reduced costs for flow and strength of wastewater. ATTACHMENTS The following attachment(s) is included in hard copy and may also be viewed on-line at the OCSD website (wwmocsd.com)with the complete agenda package and attachments: • Urban Runoff Diversion Report (7 pages) MS:JC:jb:gc Page 6 of 5 OrangeReturn to Mende Rom RUNOFFURBAN • REPORT BOARD STEERING COMMITTEE May 22, 2013 Prepared . Environmental Compliance Division `5Y3 Return to Mende Report Supplemental Urban Runoff Questions 1. Where do urban runoff flows originate geographically? What upstream citieslareas contribute to the diversions? Orange County Public Works(OCPWI Santa Ana River Diversion While the Santa Ana River watershed runs all the way to San Bernardino,due to the capture of the surface water below Prado Dam for groundwater recharge,the majority of the flow reaching the OCPW diversion originates downstream of the percolation basins near Anaheim Stadium. Cities contributing to the Santa Ana River diversion include Anaheim,Garden Grove,Orange,Santa Ana, Fountain Valley, a tiny corner of Costa Mesa, and by way of the Santiago Creek tributary,Villa Park and Tustin. OCPW Greenville Channel Diversion The Greenville Channel drains approximately 9.0 square(sq.) miles on the eastern side of the Santa Ana River.A single tributary,the Fairview Channel,flows into Greenville Channel south of Adams Avenue and the system terminates at the Santa Ana River south of Hamilton Avenue.This system provides flood protection to the cities of Costa Mesa and Santa Ana. OCPW Huntington Beach Channel The Huntington Beach channel Begins at Adams Avenue and ends at its confluence with Talbert Channel.Since this diversion is located at the head of the channel,the only tributary to this diversion is the City of Huntington Beach's local storm drain system that runs all the way to Ellis Avenue.All flows to this diversion originate within Huntington Beach. OCPW Talbert Channel Diversion The Talbert Channel drains approximately 13.3 sq.miles on the western side of the Santa Ana River.The Talbert Channel ends at Brookhurst Street where it feeds into the restored Talbert Marsh wetlands. Initially constructed by early settlers to make the land usable for agriculture,the flood channels were re-engineered in the late 1950's to contain 65%of a 25 year flood. In 1990,steel sheet piles were installed to meet the 100 year flood standard.This system,which includes the Fountain Valley Channel tributary, provides flood protection to the cities of Huntington Beach and Fountain Valley. Huntington Beach Diversions All eleven Huntington Beach (HB) diversions are linked to a local storm drain system.With the exception of the 1s`Street diversion,these systems are adjacent to either a county flood channel or the Santa Ana River where they discharge during wet weather. Flows for all the HB diversions originate within Huntington Beach. Irvine Ranch Water District(IRWD)Diversions The two IRWD diversions, Los Trancos Canyon and Muddy Canyon,are both natural creeks that originate in the San Joaquin Hills just southwest of Highway 73. Los Trancos drains approximately 2.2 sq. miles and terminates in the Pacific Ocean at Crystal Cove. Farther south, Muddy Canyon drains approximately 1.7 sq. miles and terminates in the Pacific Ocean at El Morro. Both diversion structures are located on the inland side of Pacific Coast Highway.All flows to these two diversions originate within the area annexed by the City of Newport Beach in 2002.While these watersheds now reside within Newport Beach, both of these diversions are regulated through permits issued to IRWD,the agency that owns and maintains the structures. Page 2 Return to Mende Report Newport Beach-Dunes Diversion The Newport Beach-Dunes diversion is located off of Back Bay Drive at Jamboree Road on the southwest corner of the Hyatt Resort.The storm drain system flows into the Newport Dunes swimmers area adjacent to the foot bridge. In addition to several local storm drain systems,the diversion is fed by the overflow from a golf course lake. Flows to this diversion originate within Newport Beach. The Irvine Company-Pelican Point Diversion The Pelican Point diversion, located on The Pelican Hill Golf Club's Ocean South Course, is bordered by the Pacific Coast Highway to the northeast, and Crystal Cove State Park to the southwest.This subwatershed drains approximately 0.2 sq.miles.The outlet of the storm drain is on the southeast corner of the golf course under a Crystal Cove State Park foot bridge.The outlet runs a short distance through a canyon and flows over the beach and into the Irvine Coast Area of Special Biological Significance. Flows to this diversion originate within Newport Beach. 2. What sources contribute to the diversion flows? The dry weather diversion flows originate from rising groundwater,shallow groundwater seepage,well development and purging,and limited urban runoff contributions.The flow source that predominates at each diversion depends on the particular location. Subterranean seepage appears amplified due to tidal action at several of the HB diversions. OCPW Santa Ana River Diversion Direct sources of flow in the Santa Ana River include rising groundwater due to shallow bedrock, along with intermittent well development and purging contributions. Indirect sources include groundwater seepage and urban runoff from local storm system point sources located along the river and its main tributary,Santiago Creek. OCPW Greenville Channel Diversion The predominant flow source is direct shallow groundwater seepage to the channel,or by way of the Fairview Channel tributary.Other sources include groundwater seepage and urban runoff from local storm system point sources located along the channel. OCPW Huntington Beach Channel Diversion The predominant flow source is shallow groundwater seepage from the local storm drain system.The storm drain system that feeds this particular channel may be experiencing excessive infiltration due to the Orange County Water District's Talbert Barrier Injection Program.This possibility is currently being investigated in conjunction with Orange County Water District hydrologists. OCPW Talbert Channel Diversion The predominant flow source is direct shallow groundwater seepage to the channel,or by way of the Fountain Valley Channel tributary.Other sources include groundwater seepage and urban runoff from local storm system point sources located along the channel. Huntington Beach Diversions The dry weather flows to the HB diversion pump stations appear to originate primarily from subterranean seepage into the storm drain system,with a minor contribution from urban runoff. Contributing factors include infiltration into the storm drain system and the high water table in the vicinity of the county flood channels,or along the Santa Ana River in the case of the Meredith diversion.The areas adjacent to the flood channel,where the local storm drain systems reside,are inherently impacted by leakage from the channels into the surrounding Page 3 Return to Aaenda Report permeable soil.The continuous pumping of the storm drain diversions to the sewer perpetuates this channel leakage by causing a localized zone of depression around the storm drain system which enhances the groundwater flow by creating a path of least resistance. In addition,subterranean seepage appears amplified due to tidal action at several of the HB diversions, particularly the Atlanta, Newland, Banning,and Hamilton diversions. IRWD Diversions The two canyons that terminate at the IRWD diversions(Los Trancos Canyon and Muddy Canyon)extend from the coastline to near Signal Peak,an elevation of 1,164 feet.These canyons are relatively deep and thus intercept the water table contributing to groundwater seepage,the predominant flow source to these diversions. Both canyons have experienced extensive residential (Los Trancos 34%residential, Muddy Canyon 21%residential) and commercial development,including a large golf course.This development has led to the importation of recycled and potable water into the watersheds, particularly for landscape irrigation.This water increases groundwater recharge significantly,which in turn increases groundwater seepage into the canyon creeks.' Newport Beach-Dunes Diversion In this subwatershed, groundwater seepage and urban runoff from the local storm drain systems and the overflow of the golf course lake are the predominant sources of flow for this diversion. Irrigation of residential lawns and commons,golf courses,and the major landscape areas around the Hyatt Resort and along Jamboree Road all contribute to groundwater recharge which leads to this subterranean seepage. Landscape irrigation and resort maintenance may lead to some surface runoff to the storm drain system as well. The Irvine Company-Pelican Point Diversion The land use in this relatively small subwatershed includes a gated community consisting of 55 single family residences,surface streets,a golf course,and some heavily landscaped common areas. Runoff is directed by a storm drain system consisting of area drains from the residential lots,street inlets,and drainage grates on the golf course. The flow to this diversion is predominantly from seepage into the storm drain system as a result of groundwater recharge due to the golf course irrigation with a smaller contribution by the residential landscaping. 'Newport Coastal Seepage Study 3. What additional projects are being considered to the urban runoff program? What are the estimated additional and combined flow rates? Three proposed projects which have been gaining momentum recently are the Delhi Channel, Peters Canyon, and the Big Canyon Wash. These proposed diversions are in response to the impacts these flows are having to the Upper Newport Bay Ecological Reserve. The discharge for the Delhi Channel, Peters Canyon,and Big Canyon Wash are estimated at 1.8, 1.4,and 0.1 million gallons per day(MGD) respectively. Combined,the flows from these three proposed diversions will approach 3.3 MGD. Combined with the current urban runoff flow which can reach 3.2 MGD during some months,OCSD is looking at a doubling of the diversion flow with an equivalent increase in urban runoff treatment costs. Santa Ana Delhi Channel The Santa Ana Delhi Channel subwatershed encompasses 17 sq.miles and empties into the far northwestern end of Upper Newport Bay.The subwatershed primarily includes urban land uses in the cities of Costa Mesa, Page 4 Return to Aaerda Report Santa Ana, Irvine and Newport Beach.The channel is the second largest tributary to the Upper Newport Bay. Dry weather fecal indicator bacteria(FIB)concentrations from the Santa Ana Delhi channel suggest that this channel maybe impacting the water quality in the Bay.While FIB concentrations appear to increase dramatically during wet weather,during dry weather,the Delhi FIB concentrations are markedly higher than the other tributaries! Peters Canyon Creek Peters Canyon Creek,the largest tributary to the San Diego Creek,accounts for 27%,or approximately 41 sq. miles, of the 154 total sq.miles of drainage in the Upper Newport Bay watershed. Based upon the similarity of land use patterns in the San Diego Creek watershed, Peters Canyon watershed is approximately 50%urbanized, 15%agricultural,and 35%open space.'Peters Canyon Wash,which collects selenium from selenium-laden shallow groundwater, is the biggest contributor of selenium in the San Diego Creek watershed in dry weather.° The Peters Canyon diversion project is proposing to add an additional 736 MGY of flow to OCSD's collection system.Some of this flow is generated by three permanent roadway dewatering locations,two operated by the City of Irvine and one operated by CalTrans.The project is expected to reduce the loading of selenium and nitrogen to the Upper Newport Bay by 2581bs. and 70,0001bs. respectively' Big Canyon Wash The Big Canyon Wash watershed is a small(<2 sq. miles)watershed tributary to Upper Newport Bay.The watershed is highly developed(96%)with homes,commercial areas,a golf course,cemetery,and other urban features.The 60-acre undeveloped lower portion of Big Canyon (Big Canyon Creek Nature Park)has been identified by the Southern California Wetlands Recovery Project(SCWRP)as an important resource that is in need of restoration.Selenium measured in water samples collected throughout the Nature Park and just upstream of the park exceeded the California Toxics Rule(CTR)freshwater chronic criterion for selenium of 5 micrograms per liter(µg/t) under both wet and dry conditions.` r Newport Bay Fecal Coliform Source Management Plan 3 San Diego Creek Watershed Natural Treatment System Project Newport Bay Toxlcs TMDL s Peters Canyon Channel Water Capture and Reuse Pipeline Proposal 6 Big Canyon Watershed Preliminary Selenium Source Tracking Studies 4. What happens if urban runoff flows aren't diverted to the sewer? Are there any regulatory obligations, i.e. RWQCB or NPDES mandates, which specifically require diversion of urban runoff to the sewer? OCPW Diversions Orange County Watersheds(OCW),the lead agency coordinating the county's NPDES permit efforts, considers this diversion program essential for maintaining the quality of surfzone waters along Huntington Beach. Furthermore,OCW believes urban runoff diversion to be the only recognized practically effective method by which they can protect the coastline from the bacterial sources found in the Lower Santa Ana River drainage areas. Orange County Watersheds sites the following directive,order,and grant stipulation in their request to continue the diversions. Section 13267 Directive: The Section 13267 Directive refers to the October 15, 1999 letter from the Santa Ana Regional Water Quality Control Board (SARWQCB) in response to the summer 1999 beach closures along Huntington Beach due to high surfzone bacteria concentrations. Citing authority from Section 13267 of the California Water Code,the letter required the named agencies(County of Orange and cities of Huntington Page 5 Return to Mende Report Beach,Costa Mesa, Fountain Valley,and Santa Ana)to submit"a plan to identify and control sources which may be contributing to bacteria concentrations in urban runoff'from Talbert Channel, Lower Santa Ana River,and Greenville Banning Channel, in order to minimize or prevent bacterial contamination and standards exceedances along the Huntington Beach ocean front. In response,the County of Orange as lead responsible agency submitted the "Summer 2000 ACTION Plan for Huntington Beach Coastal Waters',which outlined the proposed structural program of dry weather urban runoff diversion to the sanitary sewer system from storm drain system pump stations of the County and the City of Huntington Beach and the three drainage channels cited in the directive.The County also outlined and conducted a series of water quality investigations to better characterize and quantify the nature and source of surfzone bacteria contamination,with emphasis on characterizing the contribution of dry weather urban runoff from the subject channels.OCPW eventually completed four dry weather urban runoff diversions, Huntington Beach Pump Station,Talbert Channel,Santa Ana River, and Greenville Banning Channel,essentially diverting dry weather urban runoff from the Talbert—Lower Santa Ana River Watershed,an area of 16,575 acres. SARWQCB Order No. RS-2009-0030-FINDINGS.Section I. POTENTIAL POLLUTANTS IN STORM WATER RUNOFF/IMPACTS ON BENEFICIAL USES:34. During the summers of 1999 and 2000,a number of locations along the Orange County coast exhibited elevated bacterial levels.Since then a number of studies have been conducted that indicate that urban runoff,especially dry weather runoff, is a major contributing factor to the Orange County coastal bacterial contamination problems.To address this bacterial problem,the permittees currently divert dry weather low flows from some of these areas to the sanitary sewer.With the diversion of dry weather flows to the sanitary sewer,there have been significant improvements in the beach water quality.A number of studies have been conducted to determine the source of this microbial contamination and to develop permanent remedial measures.These studies have not conclusively determined the sources or solutions to this problem. SARWQCB Order No. 118-2009-0030-PERMIT REQUIREMENTS,Section IV. RECEIVING WATER LIMITATIONS: 1. Discharges from the MS4s shall not cause or contribute to exceedances of receiving water quality standards (designated beneficial uses and water quality objectives)for surface waters or groundwaters. 2.The DAMP (Drainage Area Management Plan)and its components shall be designed to achieve compliance with receiving water limitations. It is expected that compliance with receiving water limitations will be achieved through an iterative process and the application of increasingly more effective BMPs.The permittees shall complywith Sections 111.2 and IVA ofthis orderthrough timely implementation of control measures and other actions to reduce pollutants in urban runoff in accordance with the DAMP and other requirements of this order, including any modifications thereto. Grant Requirements-State Clean Beach Initiative Grant Agreement No.01-072-55-0: A 2002 State Clean Beach Initiative grant of$999,999 was used to construct the subject diversion facilities.The agreement stipulates in Exhibit E,Special Conditions that"the Project demonstrates the ability to produce sustained benefits for 20 years' (1. Bond Terms)and that the County agrees to"properly staff,operate,and maintain all portions of the Project during the Project's useful life",where failure to comply with this"shall be considered a material breach and violation of this Agreement,and a nonexclusive remedy shall include reimbursement by the Contractor(County)of all grant funds disbursed under this Agreement" Page 6 Return to Aaenda Report Huntington Beach Diversions The City of Huntington Beach (City)and the Orange County Public Works(OCPW)diversions were implemented primarily due to the beach closures in 1999-2000,followed by Huntington State Beach's listing as impaired for the indicator bacteria enterococcus. From their renewal application for the city's urban runoff permits:The City of Huntington Beach is regulated by the Clean Water Act,section 402(p);40 CFR Parts 122, 123,and 124; Porter-Cologne Water Quality Control Act(Division 7 of the California Water Code,section 13000);Water Quality Control Plan for the Santa Ana River Basin(Basin Plan);California Toxics Rule(CiR);California Toxics Rule Implementation Plan;and NPDES Permit, Order No. R8-2009-0030,CAS618030.The permit renewal application goes on to state.To abide by the above-mentioned regulations,the City must put in controls to reduce the discharge of pollutants to the maximum extent practicable, including management practices,control techniques and system, design and engineering methods, and such other provisions as the Administrator or the State determines appropriate for the control of such pollutants. Urban runoff collected at this pump station may create a public health and/or environmental problem associated with the discharge of runoff directly into the adjacent channel which discharges into the Pacific Ocean. Irvine Ranch Water District/The Irvine Company Diversions The Newport Coast Watershed discharges into two Areas of Special Biological Significance,the Newport Beach (Robert E. Badham) Marine Life Refuge(ASBS No. 32)and the Irvine Coast Marine Life Refuge(ASBS No. 33).The Pelican Point, Los Trancos,and Muddy Canyon diversions were implemented in response to the Regional Water Quality Control Board's Cease and Desist Order No.00-87,dated November 16,2000, prohibiting new discharges of waste,including storm water and non-storm runoff,from developed regions into these areas. Considering these subwatersheds now include significant development,all entities involved including The Irvine Company, IRWD,the City of Newport,and the Regional Water Quality Control Board,deem these three diversions essential for the protection of the beneficial uses and water quality objectives specified in California's 1997 Ocean Plan. Newport Beach-Dunes Diversion The Newport Dunes diversion started as a demonstration project after OCSD received a penalty(ACL#99-58) from the Regional Water Quality Control Board (RWQCB)for a July 1998 sewage spill. OCSD agreed to spend $40,000 of the$50,000 fine on a Supplemental Environmental Project in the City of Newport Beach (City).The project proposed redirecting the bacteria polluted nuisance flows from a golf course lake and local storm drain system that drain into the Newport Dunes Lagoon to the sanitary sewer system.After the RWQCB accepted the proposal,the project proceeded through design and construction,with the diversion going on-line in 2001. Newport Bay(Bay) is the second largest estuarine embayment in southern California.The Bay is made up of two water bodies: 1)the Upper Bay, currently a high value estuary that contains a State Ecological Reserve;and 2) the Lower Bay(commonly referred to as Newport Harbor),a regionally important recreational area where thousands of people visit every year and take part in various recreational activities,including swimming and boating. In 1986,the Santa Ana Regional Water Quality Control Board (Regional Board) identified and listed Newport Bay(Lower and Upper) as a water quality limited receiving water body for pathogens in accordance with Section 303(d)of the Federal Clean Water Act.7 Therefore,the City of Newport considers the Dunes diversion essential for maintaining the beneficial uses and water quality ofthis heavily used recreational area. 7 Newport Bay Fecal Coliform Source Management Plan Page 7 ADMINISTRATION COMMITTEE Needng Dare To ad.of Dir. 06,12,13 -- AGENDA REPORT Item Number Item Number s Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Nick Kanetis, Director of Engineering Engineering Manager: Robert Thompson SUBJECT: PERMITTING PROCESS FOR SEWER CONNECTIONS GENERAL MANAGER'S RECOMMENDATION Information Only. SUMMARY Staff will present an informational overview of the connection permitting process. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Orange County Sanitation District (OCSD) works closely with individual city building departments, local sewering agencies, and the county building department to identify, permit, and collect capital facility capacity charges (CFCC). OCSD, as are other agencies and special districts, are reliant on these other departments to enforce our fee collections. The presentation will provide an overview of the connection process, the history of our local service and records, and describe our policy for collection of fees. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE N/A JDH:NK:RT:sa Page 1 of 1 ORANGE COUNTY SANITATION DISTRICT Agenda Terminology Glossary Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOO Biochemical Oxygen Demand CARB California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA U.S. Environmental Protection Agency FOG Fats, Oils, and Grease FSSD Facilities Support Services Department gpd Gallons per day GWR System Groundwater Replenishment System (also called GWRS) LOS Level of Service MGD Million gallons per day NACWA National Association of Clean Water Agencies NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O&M Operations and Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District OOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration POTW Publicly Owned Treatment Works ppm Parts per million RFP Request For Proposal RWQCB Regional Water Quality Control Board SARFPA Santa Ana River Flood Protection Agency SARI Santa Ana River Inceptor SARWQCB Santa Ana Regional Water Quality Control Board Glossary of Terms and Abbreviations SAWPA Santa Ana Watershed Project Authority SCADA Supervisory Control and Data Acquisition system SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SSMP Sanitary Sewer Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation WERF Water Environment Research Foundation Activated-sludge process — A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved nutrients in the wastewater. Biochemical Oxygen Demand (BOD)—The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. Biosolids — Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farm land or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. Collections system — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. Certificate of Participation (COP) — A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. Dilution to Threshold (DR) — the dilution at which the majority of the people detect the odor becomes the D(f for that air sample. Glossary of Terms and Abbreviations Greenhouse gases — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect'). Groundwater Replenishment (GWR) System — A joint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons a day of drinking quality water to replenish the local groundwater supply. Levels of Service (LOS)—Goals to support environmental and public expectations for performance. NOMA— N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership (NBP) — An alliance of the National Association of Clean Water Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S. Environmental Protection Agency (EPA). NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation in order to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. Plume—A visible or measurable concentration of discharge from a stationary source or fixed facility. Publicly-owned Treatment Works (POTW)— Municipal wastewater treatment plant. Santa Ana River Interceptor (SARI) Line — A regional brine line designed to convey 30 million gallons per day (MGD) of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. Sanitary sewer — Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban run-off. South Coast Air Quality Management District (SCAQMD) — Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment — Biological wastewater treatment, particularly the activated-sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. Sludge—Untreated solid material created by the treatment of wastewater. Total suspended solids (TSS)—The amount of solids floating and in suspension in wastewater. Trickling filter — A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. Urban runoff — Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. Wastewater—Any water that enters the sanitary sewer. Watershed —A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River Watershed.