HomeMy WebLinkAbout07-13-2016 Administration Committee Agenda Orange County Sanitation District Wednesday,July 13, 2016
Regular Meeting of the - 5:00 P.M.
ADMINISTRATION Administration Building
COMMITTEE Board Room
10644 Ellis Avenue
Fountain Valley, CA
714 593-7433
AGENDA
CALL TO ORDER:
PLEDGE OF ALLEGIANCE:
DECLARATION OF QUORUM: (Clerk of the Board)
PUBLIC COMMENTS: If you wish to address the Committee on any Rem, please complete a
Speaker's Form (located at the table outside of the Board Room) and submit it to the Clerk of the Board or
notify the Clerk of the Board the item number on which you want to speak. Speakers will be recognized by
the Chairman and 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: The Consent Calendar Items are considered to be routine and will be
enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent
Calendar for separate discussion will be considered in the regular order of business.
1. APPROVAL OF MINUTES (Clerk of the Board)
RECOMMENDATION: Approve Minutes of the June 6, 2016 Administration
Committee Meeting.
NON-CONSENT:
2. REVENUE REFUNDING CERTIFICATE ANTICIPATION NOTES, SERIES
2016B (Lorenzo Tyner)
RECOMMENDATION: Recommend to the Board of Directors to: Authorize the
General Manager to issue Revenue Refunding Certificate Anticipation Notes,
07/13/16 Administration Committee Agenda Page 1 of 2
Series 201613, as two-year fixed-rate obligations, subject to market conditions, in
an amount not to exceed $120,000,000 to replace the $120,850,000 Revenue
Refunding Certificate Anticipation Notes, Series 2014B maturing on November 15,
2016.
INFORMATION ITEMS:
3. ENERGY SUPPLY AND DEMAND (Rob Thompson)
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS
IF ANY:
ADJOURNMENT:
The next Administration Committee meeting is scheduled for Wednesday, September 14,
2016 at 5:00 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)593-7433 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 Califomia 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, Cal'domia, 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 majority of the Board of Directors,are available for public inspection in the office of the Clerk of the Board.
Agenda Descnotion: The agenda provides a brief general description of each item of business to be considered or
discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take
any action which is deemed appropriate.
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.
Kelly A.Lore
Clerk of the Board
(714)593-7433
klgre(dgcsd.com
For any questions on the agenda, Committee members may contact staff at:
General Manager James Herberg (714)593-7300 iherbero(cDocsd.cgm
Assistant General Manager Bob Ghirelli (714)593-7400 rohirelli6ocsd.com
Director of Finance and Lorenzo Tyner (714)593-7550 Itwer(cDomd.com
Administrative Services
Director of Human Resources Celia Chandler 714 593-7202 cchandler omd.com
p7/13/16 Administration Committee Agenda Page 2 of 2
ITEM NO. 1
MINUTES OF THE
ADMINISTRATION COMMITTEE
Orange County Sanitation District
Wednesday, June 8, 2016 at 5:00 P.M.
A regular meeting of the Administration Committee of the Orange County Sanitation
District was called to order by Committee Chair Curry on June 8, 2016 at 5:00 p.m. in the
Administration Building of the Orange County Sanitation District.
Vice-Chair Seboum led the Flag Salute.
A quorum was declared present, as follows:
COMMITTEE MEMBERS PRESENT: STAFF PRESENT:
Keith Curry, Chair Jim Herberg, General Manager
Lucille Kring, Vice-Chair Bob Ghirelli, Assistant General Manager
Steven Choi Celia Chandler, Director of Human Resources
Diana Fascenelli (Alternate) Jim Colston, Director of Environmental Services
Jim Ferryman Rob Thompson, Director of Engineering
Peter Kim Ed Torres, Director of Operations & Maintenance
Al Krippner (Alternate) Lorenzo Tyner, Director of Finance &
Erik Peterson (Alternate) Administrative Services
Sal Tinajero Kelly Lore, Clerk of the Board
John Nielsen, Board Chair Cindi Ambrose
Greg Sebourn, Board Vice-Chair Jennifer Cabral
Anne Marie Feery
COMMITTEE MEMBERS ABSENT: Al Garcia
Glenn Parker Lori Khajadourian
Teresa Smith Mark Manzo
Rich Spencer
John Swindler
Brent W ride
OTHERS PRESENT:
Brad Hogin, General Counsel
PUBLIC COMMENTS:
None.
REPORT OF COMMITTEE CHAIR:
Committee Chair Curry did not provide a report.
06/08/2016 Administration Committee Minutes Page 1 of 5
REPORT OF GENERAL MANAGER:
General Manager Jim Herberg did not provide a report.
Board Chair Nielsen notified the Committee of the upcoming ACC-OC Golden Hub of
Innovations Event on Thursday, June 9, 2016 which will be held at the Discovery Cube in
Santa Ana, and that if anyone was interested in attending, to notify the Clerk of the Board.
REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES:
Director of Finance and Administrative Services Lorenzo Tyner did not provide a report.
CONSENT CALENDAR:
1. APPROVAL OF MINUTES (Clerk of the Board)
MOVED, SECONDED AND DULY CARRIED TO: Approve Minutes of the
May 11, 2016 Administration Committee Meeting.
AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Kim, Krippner
(Alternate), Nielsen, Peterson (Alternate) and Sebourn
NOES: None
ABSTENTIONS: None
ABSENT: Kring, Parker, T. Smith, and Tinajero
2. IBM TIVOLI MAXIMO AND WEBSPHERE (ENTERPRISE ONE) ANNUAL
SUBSCRIPTION AND SUPPORT (Lorenzo Tyner)
MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Authorize purchase of an annual licensing and maintenance agreement for
IBM Maximo and WebSphere software and support using Dataskill, Inc. in
the amount of$180,166.41 for one year; and
B. Approve a contingency of$36,033 (20%)for additional licenses identified in
the current Maximo implementation plan.
AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Kim, Krippner
(Alternate), Nielsen, Peterson (Alternate) and Sebourn
NOES: None
ABSTENTIONS: None
ABSENT: Kring, Parker, T. Smith, and Tinajero
06108/2016 Administration Committee Minutes Page 2 of 5
3. FY 2016-17 USE CHARGES FOR SANTA ANA WATERSHED PROJECT
AUTHORITY (Lorenzo Tyner)
MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of
Directors to: Adopt Resolution No. OCSD 16-XX entitled, "A Resolution of the
Board of Directors of the Orange County Sanitation District Establishing Use
Charges for the FY 2016-17 Pursuant to the Wastewater Treatment and Disposal
Agreement with the Santa Ana Watershed Project Authority."
AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Kim, Krippner
(Alternate), Nielsen, Peterson (Alternate) and Sebourn
NOES: None
ABSTENTIONS: None
ABSENT: Kring, Parker, T. Smith, and Tinajero
4. ORANGE COUNTY REGISTER — CLASSIFIED & LEGAL ADVERTISEMENTS
(Lorenzo Tyner)
MOVED, SECONDED AND DULY CARRIED TO:
A. Approve Change Order No. 4 to Blanket Purchase Order 105121-OB with
the Orange County Register for Classified and Legal advertisements, for
the period July 1, 2014 through June 30, 2016, for an additional amount of
$20,001, for a total amount not to exceed $120,000; and
B. Approve Blanket Purchase Order with the Orange County Register for
Classified and Legal advertisements, for the period of July 1, 2016 through
June 30, 2017, for a total amount not to exceed $150,000.
AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Kim, Krippner
(Alternate), Nielsen, Peterson (Alternate) and Sebourn
NOES: None
ABSTENTIONS: None
ABSENT: Kring, Parker, T. Smith, and Tinajero
5. GANN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2016-17 (Lorenzo Tyner)
MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of
Directors to: Adopt Resolution No. OCSD 16-XX entitled, "A Resolution of the
Board of Directors of the Orange County Sanitation District Establishing the Annual
Appropriations Limit for Fiscal Year 2016-17, for the District in accordance with the
Provisions of Division 9 of Title 1 of the California Government Code."
AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Kim, Krippner
(Alternate), Nielsen, Peterson (Alternate) and Sebourn
NOES: None
ABSTENTIONS: None
ABSENT: Kring, Parker, T. Smith, and Tinajero
06/08/2016 Administration Committee Minutes Page 3 of 5
Committee Vice-Chair Kring arrived at 5:06 p.m.
Director Tinajero arrived at 5:14 p.m.
NON-CONSENT:
6. PROPOSED FY 2016-17 AND 2017.18 BUDGET (Lorenzo Tyner)
Director of Finance and Administrative Services Lorenzo Tyner provided a brief
overview of this item and introduced Controller Mike White, who provided a
PowerPoint presentation on the proposed budget for fiscal years 2016-17 and
2017-18. The presentation included major revenue components, a comparison of
single family residential rates between comparable agencies, anticipated
performance of property tax revenue, outlay categories, a summary of proposed
operating expenses, Capital Improvement Program (CIP) components, and debt
issuances. Mr. White and Mr. Herberg responded to questions regarding the
issuance of new debt, generational equity, fee increases.
MOVED. SECONDED AND DULY CARRIED TO: Recommend to the Board of
Directors to: Approve proposed Operating, Capital, Debt/COP Service and Self-
Insurance Budgets for FY 2016-17 and 2017-18 as follows:
2016-17 2017-18
Net Operations, Maintenance &Working Capital $146,356,520 $149,854,390
Worker's Compensation Self Insurance 1,090,000 1,130,000
General Liability and Property Self-Insurance 1,390,000 1,450,000
Net Capital Improvement Program 171,290,000 137,989,000
Debt/COP Service 86,664,000 83,119,000
Reduction of Long Term Obligations 65,000,000 -
Intra-District Joint Equity Purchase/Sale(') 3,400,000 1,700,000
TOTAL 5475.190.520 5375.242.390
tttCash to/from Revenue Area 14 (RA14) in exchange for capital assets to/from
Consolidated Revenue Area 15 (RA15).
AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Kim, Kring,
Krippner (Alternate), Nielsen, Peterson (Alternate) and
Seboum, and Tinajero
NOES: None
ABSTENTIONS: None
ABSENT: Parker, and T. Smith
INFORMATION ITEMS:
7. WORKFORCE PLANNING (Celia Chandler)
Director of Human Resources Celia Chandler provided a brief overview of this item
and introduced Richard Spencer, Human Resources Manager. Mr. Spencer
O6/0812016 Administration Committee Minutes Page 4 d 5
provided a PowerPoint presentation with an overview of the organizational
structure and demographics of the Orange County Sanitation District including
attrition, retirement eligibility statistics, and planning for the future needs of the
workforce. Mr. Spencer responded to questions from the Committee regarding
recruitment processes and strategies, tuition reimbursement, educational
opportunities, intern and apprenticeship programs, and the likeliness of upward
mobility.
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,
IF ANY:
Board Chair Nielsen invited everyone to the 2151 Annual State of the City (Tustin) event
on Thursday, June 9, 2016 at 5:00 p.m.
ADJOURNMENT:
Committee Chair Curry declared the meeting adjourned at 5:45 p.m. to the next regularly
scheduled meeting of Wednesday, July 13, 2016 at 5:00 p.m.
Submitted by:
Kelly A. Lore
Clerk of the Board
O6/0812016 Administration Committee Minutes Page 5 a 5
ADMINISTRATION COMMITTEE Meng D310 TOBE. Dir.
07/lti13/16 07/27/1Or6
AGENDA REPORT ItemNumber Item Number
z
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: REVENUE REFUNDING CERTIFICATE ANTICIPATION NOTES,
SERIES 2016B
GENERAL MANAGER'S RECOMMENDATION
Authorize the General Manager to issue Revenue Refunding Certificate Anticipation
Notes, Series 2016B, as two-year fixed-rate obligations, subject to market conditions, in
an amount not to exceed $120,000,000 to replace the $120,850,000 Revenue Refunding
Certificate Anticipation Notes, Series 2014B maturing on November 15, 2016.
BACKGROUND
In March 2006, the Orange County Sanitation District (Sanitation District) issued
$200 million of variable rate Certificates of Participation (COP), Series 2006(2006 COPS).
Alternatively, the Sanitation District could have issued debt, at an estimated cost of
4.54%, on a fixed rate basis in 2006 ("2006 Fixed Rate"). From inception through August
2008, the average variable rate on the 2006 COPS was 2.95% or 0.22% less than the
SIFMA index(weekly market index of tax-exempt variable rate obligations). As the global
financial crisis took hold in the late summer of 2008, there was a significant increase in
the variable rate borrowing cost of the Sanitation District, including all municipal variable
rate borrowers, as the 2006 COPS averaged 4.29% (or 1.56% above the SIFMA index)
for the period between September 2008 and December 2008. The amount of the increase
in variable rate cost above the SIFMA index can be attributed to the weakened financial
strength of the bank, DEPFA Bank plc, that was providing liquidity support on the 2006
COPS. Even with the increase in interest rates during this period of stress, the 4.29%
average cost was still lower than the 2006 Fixed Rate of 4.54%.
In December 2008, the Sanitation District proactively refunded the 2006 COPs with the
Refunding COP Series 2008C Certificate Anticipation Notes (2008C CANS)to reduce its
exposure to then higher and more volatile variable rate costs. The yield on the 2008C
CANS was 0.98% for a one-year period. The issuance of the 2008C CANs allowed the
Sanitation District to redeem the 2006 COPS at an all-in cost of less than 1.25%and avoid
paying a bank rate of 4.75% which would have been effective starting a month later.
Since the 2008C CANs issuance, the Sanitation District completed five additional one-
year refiinancing's at yields at progressively lower yields, and a two-year refinancing in
2014, as summarized below:
Page 1 or 6
Princi al Amou
2009E $ 165,865,000 0.370% 0.559%
2010E 154,665,000 0.360 0.525
2011E 143,205,000 0.225 0.399
2012C 131,700,000 0.210 0.410
2013A 129,625,000 0.170 0.390
2014E 120,850,000 0.320 0.523
The interest rate on the currently outstanding Revenue Refunding Certificate Anticipation
Notes Series 2014B (201413 CANS) was fixed for two years and the entire $120,850,000
plus interest becomes due and payable on November 15, 2016. The Sanitation District
is responsible for the total repayment, including interest due, of $123,267,000 or the
Sanitation District could choose to refinance the 2014B CANS. Due to the expected low
tax-exempt cost of refinancing CANS and the benefit of maintaining reserves, staff does
not recommend the use of$120 million of reserves to repay the 2014B CANS; therefore,
there are a number of refinancing options for consideration of the Sanitation District.
RELEVANT STANDARDS
• OCSD Debt Policy - Financial Management Policy and Procedure No. 201-3-1;
Restructuring debt is deemed to be desirable.
• Easy access to low cost credit.
PROBLEM
The CAN Series 2014B are due and payable on November 1, 2016 in the amount of
$123.3 million. The CAN Series 2014B was issued with a low-cost, two-year rate with the
expectation that upon maturity the issue would be refinanced.
PROPOSED SOLUTION
The issuance of up to $120 million of CAN Series 2016B would allow the Sanitation
District to repay the CAN Series 2014E and avoid using $120 million of reserves for such
purpose.
TIMING CONCERNS
The Sanitation District must complete a refinancing by no later than November 15, 2016;
otherwise, $120 million of reserves will be required to repay the CAN Series 2014B.
RAMIFICATIONS OF NOT TAKING ACTION
Not taking action by November 15, 2016 would cause the Sanitation District to use its
reserves to repay the CAN Series 2014E or cause an Event of Default due to lack of
repayment to lenders. The economic ramification of an Event of Default would result in
a downgrade in credit ratings, reduced access to capital, and higher costs of borrowing.
Page 2 of 6
PRIOR COMMITTEE/BOARD ACTIONS
February 2016 - The Board adopted Resolution No. OCSD16-03, authorizing the
execution and delivery by the District of an Installment Purchase Agreement, a Trust
Agreement, an Escrow Agreement and a Continuing Disclosure Agreement in connection
with the execution and delivery of Orange County Sanitation District Wastewater
Refunding Revenue Obligations, Series 2016A, authorizing the execution and delivery of
such Revenue Obligations, evidencing principal in an aggregate amount of not to exceed
$163,000,000, approving a Notice of Intention to Sell, authorizing the distribution of an
Official Notice Inviting Bids and an Official Statement in connection with the offering and
sale of such Revenue Obligations and authorizing the execution of other necessary
documents and related actions.
ADDITIONAL INFORMATION
Financing Considerations
1. Fixed Rate Refunding
The issuance of long-term fixed rate debt to refund the 2014B CANS will eliminate
any future market access risks (ability to issue debt to refinance maturing debt)
and interest rate risk (additional costs if rates reset higher or are higher upon a
future refinancing). After the issuance of fixed rate debt, the Sanitation District will
no longer be exposed to changing market conditions.
Although, current fixed rates are near historical lows, a fixed rate refunding would
result in an immediate increase in debt service cost of approximately $2.4 million.
Fixed rate debt would also remove the interest rate hedge originally desired by the
Sanitation District (in 2006) which was intended to insulate the District from
changes in the District's fluctuating investment portfolio earnings as the variable
rates on the 2006 COPS were expected to move in tandem with changes in short-
term interest rates.
2. Variable Rate Refunding
Current variable rates for highly-rated California municipal borrowers (such as the
District)are low at approximately 0.40%for traditional variable rate debt supported
by a commercial bank. However, the availability of bank support continues to be
relatively expensive at approximately the same cost as current variable rates. The
terms and conditions currently demanded by banks are also more onerous than
during the period prior to the global financial crisis. Alternative variable rate
products have been developed that do not require bank support, but these
products are generally used by issuers to diversify among a portfolio containing
many different variable rate products, unlike the Sanitation District's single
issuance of short-term interest rate exposure (2014B CANS). In addition, there are
limited investors for these alternative products.
Page 3 of 6
3. CANs Refunding
Since the issuance of the 2014B CANs, short-term interest rates have increased,
but still remain low. The issuance of refunding CANS will continue to allow the
Sanitation District to accrue savings at a rate that is fixed while insulating the
District from the possibility of short-term rates increasing over the fixed rate period.
There is a strong correlation between traditional tax-exempt variable rates and
short-term tax-exempt fixed rates, as shown below in a historical comparison
between 1-year tax-exempt MMD (Municipal Market Data) fixed rates and the
SIFMA index:
1-Year MMD vs. 1-Year SIFMA
Rolling Average
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
0.0%
o° a'' d°
—1-Year MMD
—1-Year SIFMA Rolling Average
In addition, the CANS structure will avoid the payment of high fees to liquidity banks
and eliminate the risk of interest rates resetting higher from current low levels
during the course of a fixed period of time.
The major risk with any CANS structure occurs if the Sanitation District does not
have market access to remarket the CANS at maturity. However, the Sanitation
District (1) has successfully issued CANS in seven of the past eight years without
issue, (2) is the highest rated entity possible (AAA/Aaa/AAA)which should always
have the greatest market access, and (3) holds a substantial amount of reserves
that could (if the Board chooses) be used to redeem CANS if market access is not
available. Staff intends to build in safeguards to avoid the use of Sanitation District
reserves unless absolutely necessary: for example, beginning the process of
refinancing early to allow for added timing flexibility and structuring the CANS with
a short optional call right which will allow the Sanitation District to redeem the CANS
in advance of the maturity date.
The following table presents the current market costs for 1-5 year CANS:
One Two Five
Year Years Years
Yield 1 0.53% 1 0.59% 1 0.67% 0.86% 0.98%
All-In Cost 0.77 0.74 0.80 0.98 1.08
Page 4 of 6
4. Accelerated Rate Management Program
To further reduce interest rate risk (additional costs if rates reset higher or are
higher upon a future refinancing) the Sanitation District could reinstate the
Accelerated Rate Management (ARM) program with a CANS refinancing debt
issuance. Between 2006 and 2012, the ARM program used accrued savings (e.g.,
0.41% cost on 2012C CANS)compared to the 2006 Fixed Rate of 4.54%to reduce
the outstanding amount of debt on a yearly basis. With less debt outstanding, the
Sanitation District significantly reduces its interest rate risk (if higher interest rates
occur, the negative impact is mitigated as the higher interest cost is calculated on
a smaller principal amount). The implementation of the ARM program since the
issuance of the 2006 COPS has (1) reduced the outstanding principal by $80
million and (2) decreased the interest rate risk to the Sanitation District as the
break-even rate (the average future interest rate for the remaining debt from the
2006 COPs issuance) is over 12.8%. The original variable rate structure of the
2006 COPS and the past seven CANS refiinancing's have already saved the District
over$38.5 million compared to the alternative of the District issuing fixed rate debt
in 2006. Given the current low level of fixed rates which is also a possible
refinancing option, it may be an appropriate time to reinstate the ARM program as
a method of mitigating interest rate risk associated with any short-term borrowings.
Even as long-term interest rates have been volatile, short-term debt continues to remain
low and attractive, especially rates within one and two years. Short-term borrowing costs
are also lower than, and act as a hedge against, the Sanitation District's cash reserves
which are currently earning approximately 1.25%. Therefore, staff is recommending the
refunding of the 2014B CANs with a new two-year CAN that will enable the Sanitation
District to lock-in a low rate for two years without (a) encumbering cash reserves; (b)
exposing the District to relatively high bank liquidity costs associated with variable rate
debt; and, (c) avoiding higher fixed rates which would increase near-term debt costs by
approximately $2.4 million per year. In addition, staff recommends reinstituting the ARM
program to be structured against the fixed rate at the time of the 2014B CANs refinancing.
Assuming that the staff receives approval to pursue a refinancing, staff will return to the
Administration Committee in September with financing documents to complete the
refinancing. There is the possibility that interest rates may change before September
and, at the time of approval of the financing documents and based on market conditions
at that time, staff may recommend a different refinancing term (e.g. one-year CANs). The
refunding CANs can be sold on a competitive basis in order to obtain the lowest financing
cost possible.
Staff and consultants will be available to make a brief presentation and provide an
overview of the financing schedule at the Administration Committee meeting.
Following is a chart listing the remaining steps to be completed for the issuance of the
Revenue Refunding Certificate Anticipation Notes, Series 2016B debt issuance:
Page 5 of 6
September ➢ Board approval of legal and disclosure documents
➢ Financing Corporation approval of legal and disclosure documents
October ➢ Receive ratings from Bond Rating Agencies
➢ Receive competitive bids
November ➢ Closing
ATTACHMENT
The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website
(wwwocsd.com) with the complete agenda package:
N/A
Page 6 of 6
ADMINISTRATION COMMITTEE Meeting Date To Bd.of Dir.
07/13,16 —
AGENDA REPORT Item Number Item Number
3 —
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Director of Engineering
SUBJECT: ENERGY SUPPLY AND DEMAND
GENERAL MANAGER'S RECOMMENDATION
Information Only.
BACKGROUND
Each month, staff provides an informational presentation on topics of interest to the Board
of Directors. This month's topic is an overview of the Orange County Sanitation District's
Energy Supply and Demand.
RELEVANT STANDARDS
Ensure that the public's money is wisely spent
ATTACHMENT
The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD websim
(www.ocsd.com) with the complete agenda package:
N/A
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
BOD Biochemical Oxygen Demand
CARB California Air Resources Board
CASA California Association of Sanitation Agencies
CCTV Closed Circuit Television
CEQA California Environmental Quality Act
CIP Capital Improvement Program
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
gpd Gallons per day
GWR System Groundwater Replenishment System (also called GWRS)
ICS Incident Command System
IERP Integrated Emergency Control Plan
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
GOBS Ocean Outfall Booster Station
OSHA Occupational Safety and Health Administration
PCSA Professional Consultant Services Agreement
POTW Publicly Owned Treatment Works
ppm Parts per million
PSA Professional Services Agreement
RFP Request For Proposal
Glossary of Terms and Abbreviations
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
SAW PA Santa Ana Watershed Project Authority
SCADA Supervisory Control and Data Acquisition system
SCAP Southern California Alliance of Publicly Owned Treatment Works
SCAQMD South Coast Air Quality Management District
SOCWA South Orange County Wastewater Authority
SSMP Sanitary Sewer Management Plan
SSO Sanitary Sewer Overflow
SWRCB State Water Resources Control Board
TDS Total Dissolved Solids
TMDL Total Maximum Daily Load
TSS Total Suspended Solids
WDR Waste Discharge Requirements
WEF Water Environment Federation
WERF Water Environment Research Foundation
Activated-sludge process — A secondary biological wastewater treatment process where bacteria
reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved
nutrients in the wastewater.
Benthos — The community of organisms, such as sea stars, worms and shrimp, which live on, in, or
near the seabed, also know as the benthic zone.
Biochemical Oxygen Demand (BOD)—The amount of oxygen used when organic matter undergoes
decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in
water.
Biosolids — Biosolids are nutrient rich organic and highly treated solid materials produced by the
wastewater treatment process. This high-quality product can be recycled as a soil amendment on
farm land or further processed as an earth-like product for commercial and home gardens to improve
and maintain fertile soil and stimulate plant growth.
Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets.
Also includes treatment improvements, additional capacity, and projects for the support facilities.
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.
Glossary of Terms and Abbreviations
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 (D!f) - the dilution at which the majority of the people detect the odor
becomes the D(f for that air sample.
Greenhouse gases - In the order of relative abundance water vapor, carbon dioxide, methane,
nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse
effect").
Groundwater Replenishment (GWR) System - A joint water reclamation project that proactively
responds to Southern California's current and future water needs. This joint project between the
Orange County Water District and the Orange County Sanitation District provides 70 million gallons a
day of drinking quality water to replenish the local groundwater supply.
Levels of Service (LOS)-Goals to support environmental and public expectations for performance.
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.
Glossary of Terms and Abbreviations
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.