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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 Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1.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.