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HomeMy WebLinkAbout97.06-24-2015 Budget Update FY 2015-16.pdf ® 7 BUDGET UPDATE Fiscal Year 2015-16 4oJNyy ANir k i i q Orange County Sanitation District, California 9ol�Cr�Ns THE ENJ\Poia�i Orange County Sanitation District, California BUDGET UPDATE Fiscal Year 2015-16 11 S A N I TgT�oy 2 A ¢ c> o -a THE OUR MISSION "To protect public health and the environment by providing effective wastewater collection, treatment, and recycling." GFOA BUDGET PRESENTATION AWARD G� GOVERN M ENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESEWEDTO Orange County Sanitation District California For the Biennium Beginning July 1,2014 sean.okuo. The Government Finance Officers Association of the United States and Canada(GFOA)presented a Distinguished Budget Presentation Award to the Orange County Sanitation District,California, for its biennial budget for the biennium beginning July 1, 2014. 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 communications device. ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 TABLE OF CONTENTS OCSDService Area ..........................................................................................................i Boardof Directors...........................................................................................................ii BoardCommittees.........................................................................................................iii Orange County Sanitation District Organization Chart.........................................................iv AdministrativeOfficials....................................................................................................v Message from the General Manager.................................................................................vi FinanceSummary..........................................................................................................1 Financial Overview& Budgetary Issues .............................................................................2 Where the Money Comes From........................................................................................6 Funding Sources by Category...........................................................................................6 Wherethe Money Goes...................................................................................................8 FundingUses by Category ...............................................................................................8 Collection, Treatment& Recycling Process Overview ..................................................... 10 StrategicPlanning....................................................................................................... 12 Infrastructure Asset Management................................................................................. 18 Capital Improvement Program...................................................................................... 24 Debt Financing Program.............................................................................................. 25 OperatingExpenses..................................................................................................... 26 Departments............................................................................................................... 30 Summary.................................................................................................................... 30 GeneralManager's Office.............................................................................................. 32 HumanResources ....................................................................................................... 34 Administrative Services................................................................................................. 36 Facilities Support Services ............................................................................................ 38 Engineering................................................................................................................. 40 Operations and Maintenance......................................................................................... 42 Appendix CashFlow Projection .................................................................................................. A-2 Capital Improvement Program Summary.......................................................................A-4 ProjectSummary........................................................................................................ A-5 Capital Improvement Expenditure Graphs......................................................................A-6 Summary of Capital Requirements................................................................................A-7 New Project Descriptions...........................................................................................A-13 Capital Equipment Budget Summary ..........................................................................A-18 Capital Equipment Budget Detail................................................................................A-20 Self-Funded Insurance Plans......................................................................................A-22 Historical Staffing Summary.......................................................................................A-23 Historical Staffing Detail ............................................................................................A-24 AppropriationsLimit..................................................................................................A-35 Miscellaneous Statistics.............................................................................................A-36 Wastewater Treatment Process Diagram ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 OCSD SERVICE AREA o�sb Service Area iaea,m„c.m LA HABRA BREA oanrvce couNTv YORBA FULLER N LINOA PLAC TIA LA B ARK PL YPRE S ANAHEIM VILLA PA LOS Till I A AMITOS OE ORANGE ROSEAL c0 .BEACH MIN ER cP e SAN UNTA N ANA TUSTIN ALLE1 HUNTI OTB B IRVINE e COSTA MESA acso am.gm.w o^n°u N LS mlks b"p 8&kol JiameW Service area boundary QIeMre Pipeline NEWPORT s mi6s I., BEACH o 1 a Sewer pipelines iomoImemeie. ace'as Reclamation Plant No.1(Pl.) Treatment Plant No.2(P2) w-ni.e ■ Pump Stations n °" � im�w�r,p o°i�in � Unincorporated Orange County(white areas)El '°pm°°nm°"'^ way �m urzoss.a eio^—,«°. vmuaanma ORANGE COUNTY SANITATION DISTRICT BUDGET UPDATE—FISCAL YEAR 2015-16 I BOARD OF DIRECTORS Agency/Cities Active Director Alternate Director Anaheim Lucille Kring Jordan Brandman Brea Glenn Parker Cecilia Hupp Buena Park Fred Smith Steve Berry Cypress Mariellen Yarc Stacy Berry Fountain Valley Steve Nagel Michael Vo Fullerton Gregory Sebourn Doug Chaffee Garden Grove Steve Jones Kris Beard Huntington Beach Jim Katapodis Erik Peterson Irvine Steven Choi Lynn Schott La Habra Tom Beamish Rose Espinoza La Palma Peter Kim Michele Steggell Los Alamitos Richard Murphy Shelley Hasselbrink Newport Beach Keith Curry Scott Peotter Orange Teresa Smith Mark Murphy Placentia Chad Wanke Constance Underhill Santa Ana Sal Tinajero David Benavides Seal Beach Ellery Deaton Sandra Massa-Lavitt Stanton David Shawver Carol Warren Tustin John Nielsen Allan Bernstein Villa Park Greg Mills Robert Collacott Sanitary/Water Districts Costa Mesa Sanitary District James Ferryman Robert Ooten Midway City Sanitary District Tyler Diep Joy Neugebauer Irvine Ranch Water District John Withers Douglas Reinhart Yorba Linda Water District Robert Kiley Michael Beverage County Areas Member of the Board of Supervisors Lisa Bartlett Michelle Steel // ORANGE COUNTY SANITATION DISTRICT BUDGET UPDATE—FISCAL YEAR 2015-16 BOARD COMMITTEES Steering Committee Tom Beamish, Board Chair John Nielsen, Board Vice Chair Gregory Sebourn, Chair, Operations Committee John Withers, Chair, Administration Committee Keith Curry Steve Jones David Shawver Administration Committee John Withers, Chair Keith Curry, Vice Chair Steven Choi Tyler Diep James Ferryman Jim Katapodis Peter Kim Greg Mills Glenn Parker Teresa Smith Sal Tinajero Tom Beamish, Board Chair John Nielsen, Board Vice Chair Operations Committee Gregory Sebourn, Chair David Shawver, Vice Chair Lisa Bartlett Ellery Deaton Steve Jones Robert Kiley Lucille Kring Richard Murphy Steve Nagel Fred Smith Chad Wanke Mariellen Yarc Tom Beamish, Board Chair John Nielsen, Board Vice Chair ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 ��� ORGANIZATION CHART Board of Directors General General General Manager's Manager Counsel Office General Management Administration Human Administrative Facilities Operations Board Services Resources Services Support En ineering & Maintenance Public Affairs Servlceiff Human Resources Administrative Facilities Engineering Operations& Administration Services Support Services Administration Maintenance Workforce Financial Administration Planning Administration Planning Management Fleet Services Project Plant No. 1 Workforce Contracts, Collections Management Office Operations Development Purchasing& Engineering& Engineer Eng Plant No.2 Risk Management ingon& Materials Services Constructi Operations Management Collection Facilities Plant No. l Information Operations& Environmental Maintenance Technology Maintenance Compliance Plant No. Source Inspection Maintenance ncc e Environmental Laboratory& Ocean Monitoring fV ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 ADMINISTRATIVE OFFICIALS Management Team General Manager................................................................................................... James Herberg Assistant General Manager ...................................................................................... Robert Ghirelli Director of Engineering....................................................................................... Robert Thompson Director of Finance and Administrative Services..........................................................Lorenzo Tyner Director of Facilities Support Services ..................................................................Nicholas Arhontes Director of Operations & Maintenance....................................................................... Edward Torres Director of Human Resources........................................................................................... VACANT General Counsel ......................................................................................................Bradley Hogin ;4 „r C r ORANGE COUNTY SANITATION DISTRICT BUDGET UPDATE—FISCAL YEAR 2015-16 MESSAGE FROM THE GENERAL MANAGER May 26, 2015 Honorable Chair and Board of Directors: I am pleased to submit the Orange County Sanitation District's Fiscal Year 2015-2016 Operating and Capital Improvement Program Budget. This document includes revisions to the second year of OCSD's two-year budget and serves as a source of information for OCSD's Board of Directors, our employees and our ratepayers. The Sanitation District serves 2.5 million people and processes nearly 200 million gallons of wastewater each day with a budget of approximately $470 million. This budget addresses rising treatment and chemical costs, aging infrastructure, and increased regulatory requirements. OCSD has transformed from a sanitation district treating, collecting and disposing of wastewater to a water resource recovery facility looking to capture, recycle and reuse the products resulting from the wastewater treatment process. Our agency, in partnership with the Orange County Water District, recycles nearly one-half of the water produced by our treatment plants. The solids produced as a part of the treatment process—known as biosolids—are recycled as a soil amendment and compost for use on agricultural lands. Solids that 30 years ago were viewed as a waste are now providing valuable nutrients to farm lands in Arizona and California. Gas produced in our solids processing digesters is utilized as a biofuel to operate the engines in the Central Generation facilities. These facilities produce about two-thirds of the electrical needs of our treatment plants. In addition, we are using our facilities to manage urban runoff during dry weather that would otherwise flow untreated in our coastal waters. Recognizing the need for a reliable, affordable and high quality water supply, the Board of Directors has set our vision to study the feasibility of recycling all of our water flow. I would like to take this opportunity to highlight three important revisions to next year's budget: • Operating Expense Cost Containment Despite inflationary increases on many external costs such as chemicals, biosolids hauling, and utilities, OCSD will minimize the impact on rate-payers by aggressively negotiating our contracts, ensuring a competitive bidding environment, solid debt management and implementing efficiencies. The 2015-16 Operating Budget of approximately $152 million represents a 4 percent reduction from the previously approved budget. Operating efficiencies such as the reduction of long-term liabilities, operational improvements and general cost containment has allowed OCSD to reduce ongoing expenses and the need for additional resources. tY ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 2015-16 BUDGET UPDATE • Reduction in Long-term Liabilities Many government agencies are faced with growing long-term liabilities, particularly in the area of pensions. OCSD has been proactive in reducing our liability and has developed a plan to address this issue. By making advanced payments, as I have included in this budget, OCSD will save tens of millions of dollars in interest payments and reduce the payoff period of this liability by more than half. • Rate Reduction As a result, the efficiencies stated above and the Board's prudent decision to reduce its long-term liabilities, OCSD is a strong financial position. As such, I am recommending that the 2015-16 Budget include a reduction to the proposed rates for the next three fiscal years, reducing total increases by 35 percent. This budget demonstrates our commitment to efficiency as it does not include any increases in staffing and holds the line on operating costs. OCSD will continue to provide wastewater treatment, sewer and facilities maintenance, ocean monitoring and many other services while maintaining one of the lowest rates in the state and upholding an outstanding level of service. I believe this budget fully supports the goals included in OCSD's Strategic Plan and positions us well to address the coming w yeaar s. I look forward to a dynamic and productive year of leading the organization. James D. Herberg General Manager Orange County Sanitation District ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2O15-16 VTT -, Ulm Ni:: F I � L i a FINANCE SUMMARY ORANGE COUNTY SANITATION DISTRICT EXECUTIVE SUMMARY 1 FINANCIAL SUMMARY/OVERVIEW & BUDGETARY ISSUES Budget Overview The District's proposed FY 2015-16 operating and capital improvement budget totals $469.7 million, or$18.4 million (4.1 percent) above what was approved last year as the second year of the adopted two-year budget. The increase in the FY 2015-16 - budget is primarily attributable to a planned use of available cash reserves to reduce a $50 million long-term liability. The overall increase was partially offset by a 15.1 percent reduction in the capital improvement budget and a 3.5 percent reduction in the operating budget. The budget continues to reflect the agency's ongoing (FTE) staff positions. This staffing level continues to efforts to streamline operations. Staffing levels are reflect a significant reduction from the Fiscal Year proposed to remain the same as the level originally 1995-96 approved staffing level of 678 positions. approved. Although salaries and wages will increase as The District's Capital Improvement Program (CIP) a result of approved cost of living adjustments budget for Fiscal Year 2015-16 is $175.0 million. (COLAs), overall personnel costs will decrease due to This CIP budget finances collection system, joint reductions in retirement premiums following the pay works treatment and disposal system improvement down of the Orange County Employees' Retirement projects. The $31.1 million decrease from the System (OCERS) unfunded accrued liability. originally proposed budget is attributable to the timing of construction cash outlays as we meet our Costs for medical insurance and workers infrastructure needs. compensation benefits are also expected to increase. The District will continue to effectively manage these Financing expenses with approximately 20 percent of the budget allocated to employee costs, much less than The District uses long-term Certificates of most other government agencies. Participation (COP)for financing capital improvements that cannot be completely funded Level of Treatment from current revenue. Before any new debt is issued, the impact of debt service payments on total annual The agency's two treatment plants, located in fixed costs is analyzed. Total COP indebtedness Fountain Valley and Huntington Beach, process is currently at $1.2 billion. No new money debt about 190 million gallons of wastewater each day financings are currently forecasted to assist in the generated by approximately 2.5 million people in funding of the $2.2 billion in capital improvements central and northwest Orange County. The proposed required over the next ten years. budget to operate, maintain and manage our sewage collection, treatment and disposal system in Staffing FY 2015-16 is $151.9 million. Reflecting the organization's commitment to The cost per million gallons of wastewater treated, providing service at the lowest costs, the budget (an industry-wide performance measurement), includes no change in authorized full time positions is expected to increase in Fiscal Year 2015-16 for Fiscal Years 2015-16, except for the addition to $2,153, a $30, or 1.4 percent increase from of two unfunded management discretion positions the previous 2015-16 projection of$2,123. The to supplement the existing two unfunded positions increase in the cost per million gallons is due to a that are used only on a temporary basis to facilitate five percent reduction in projected flows, partially the replacement of staff in key positions. Total filled mitigated by a $5.5 million reduction in total positions will not exceed 624 full time equivalent operating costs. 2 ORANGE COUNTY SANITATION DISTRICT EXECUTIVE SUMMARY 2015-16 BUDGET UPDATE To eliminate most bacteria from being released • Replace or rehabilitate OCSD's outlying aging from the ocean outfall, in Fiscal Year 2002-03 the pump stations and trunk sewers. District began using chlorine bleach to disinfect the effluent and then applying sodium bisulfite to remove • Optimize the production of power and biosolids at remaining chlorine prior to releasing the treated each of the treatment plants. wastewater to the ocean. Groundwater Replenishment System This mode of disinfection continued until March 18, (GWRS) 2015. OCSD staff conducted numerous studies on the use of disinfection on the marine environment. The OCSD Strategic Plan includes water reclamation. OCSD used a Blue Ribbon Panel of experts With the Orange County Water District (OCWD), assembled by the National Water Research Institute. we began operating the GWRS, the nation's largest After an exhaustive review of OCSD's practices water reclamation project, in January 2008. and receiving water data, the Panel recommended eliminating the continuous use of disinfection. The GWRS currently reclaims 70 million gallons of There will continue to be small amounts of bleach water a day, delaying the need to build a second and bisulfite at the treatment plants for possible outfall which could cost more than $200 million. emergencies. Plant water is used throughout the OCSD and OCWD equally shared the expenses of wastewater processes, and there will be sufficient Phase I of the project and approximately $44 million bleach for plant water disinfection. in Federal and State grants that were received to The budget for disinfection, including process offset part of the total costs. disinfection, has been reduced to $154,000 in Phase II will increase the production of reclaimed Fiscal Year 2015-16. water to 100 million gallons a day. The project, which will be funded entirely by the OCWD, is Capital Improvement Program (CIP) anticipated to be completed in 2015. OCSD is directing all reclaimable flows to Plant No. 1 The total CIP budget for Fiscal Year 2015-16 is in support of providing maximum amounts of being proposed at $175.0 million, down specification water for reclamation. $31.1 million from the previously approved 2015-16 budget due to the timing of construction Sewer Service Fees cash outlays. The 2015-16 single family residential rate, the Over the next 10 years, OCSD's Capital Improvement underlying basis for all sewer rates, is proposed at Program will: $322. This represents a reduction of $1 from the • Rehabilitate the existing headworks, primary previously approved rate of $323. OCSD's rates treatment, outfall pumping, solids handling are expected to remain well below the projected facilities, and the utility systems at both treatment statewide average. plants. ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 3 FINANCIAL SUMMARY/OVERVIEW & BUDGETARY ISSUES Operating Budget Decrease Contractual Services — The operating budget for the collection, treatment, $0.6M Decrease and disposal of wastewater is proposed at The major component of this category is biosolids $151.9 million, a $5.5 million or 3.5 percent removal and transportation costs. These costs decrease from the previously approved 2015-16 continue to rise; however, cost increases in this area budget. were less than previously anticipated. Although individual expenses will increase or professional Services — decrease slightly, the overall decrease to the operating budget is primarily attributable to five $0.4M Increase specific areas: This expense category includes legal services, Personnel Costs — engineering services, advocacy efforts, audit services, $5.8M Decrease software programing, and labor and hygiene services. The majority of the overall increase is related Authorized staffing was previously approved at to increased engineering services of$128,000, 626 FTEs including two unfunded Management advocacy efforts of $60,000 and other professional Discretion positions, which are used only on a services of $220,000. temporary basis to facilitate the replacement of staffing in key positions. Two additional unfunded Repairs & Maintenance — Management Discretion positions are proposed $0.6M Decrease for FY 2015-16 to supplement the two existing positions; however, these additional unfunded This category is for parts and services for repair of Management Discretion positions are temporary in plant and collection facilities and annual service nature and their use will never cause filled positions contracts. These costs continue to rise; however, to exceed 624 FTEs at any point in time. cost increases in this area were less than previously anticipated. The decrease in personnel costs is attributable to a reduction in retirement costs that is a result Planned repairs include: digester cleaning; process of paying down a portion the OCERS unfunded area preventative maintenance painting; central accrued liability. The decrease is partially offset by generation engine overhaul; gas compressor increases for cost of living adjustments (COLAs), overhaul; interplant gas line maintenance; manhole employee medical insurance benefits, and workers cover purchases; and dig alert and street overlays/ compensation. manhole raising. Operating Materials & Supplies — Operating Expenses $0.9M Increase ,1,7% $15].4M -3.5% As the requirement for better quality effluent $154.]M $151.9M increases, so does the need for chemicals to treat the region's wastewater. Initiatives to address odor and air quality issues also require additional chemicals and supplies. Operating materials and supplies are proposed to increase primarily due to increases in costs for odor control and chemicals to reduce emissions from the central generation engines. These cost increases are partially offset by reduced disinfection costs resulting from the cessation of rY 2014-15 rY 2015-16 rY 2015-16 ocean ouffall disinfection. Apprnved Approved Updated Total operating and maintenance expenses will decrease $5.5 million(3.5%)from the previously approved budget. 4 ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 -a. Y `,�I'.' �� f Im .�i„��y.:,: II .� LI /- __I %/ '/lu.�I� tl I�7'��• _ �- �LT7 -' T FINANCIAL SUMMARY/FUNDING SOURCES BY CATEGORY WHERE THE MONEY COMES FROM Interest Other CFe"& $4.1M 0.9% Property Taxes Intradistrict $88.5M Transfers 20.4% $1.OM 0.2% Funding Sources by Category (in millions) 2015-16 2014-15 2015-16 Updated Category Approved Approved Proposed Service Fees $305.6 $312.4 $310.6 Property Taxes 77.7 81.6 88.5 Permit User Fees 13.7 14.0 13.5 Capital Facilities Capacity Charges 11.4 11.9 11.0 Interest 13.1 14.7 6.1 Intradistrict Transfers 2.2 1.1 1.0 Debt proceeds 0.0 0.0 0.0 Other Revenue 2.9 3.2 4.1 Total Funding Sources $426.6 $438.9 $434.8 6 ORANGE COUNTY SANITATION DISTRICT BUDGET UPDATE-FISCAL YEAR 2015-16 2015-16 BUDGET UPDATE The District has a variety of revenue sources available Capital Facilities Capacity Charges for operating and capital expenses. The major (CFCC) — $11.OM revenue sources are: Beginning Reserves — $626.9M CFCC is a one-time, non-discriminatory charge imposed at the time a building or structure is newly As a result of its Reserve and Investment Policies, connected to the District's system or when an the District will begin the year with a balance carried existing structure is expanded. This charge pays for forward from the previous year. District facilities in existence at the time the charge is imposed or the construction of new facilities in General Service Fees — $310.6M the future that are of benefit to the property being charged. User fees are ongoing fees for service paid by customers connected to the sewer system. A Interest Earnings — $6.1 M property owner, or user, does not pay user fees until Interest earnings are generated from the investment connected to the sewer system and receiving services. In In accumulated reserves consisting of a cash flow/ Once connected, users are responsible for their share capital improvement, a renewal/ of the system's costs, both fixed and variable, in replacement, and contingency, a self-insurance reserve. proportion to their demand on the system. These fees are for both Single Family Residences (SFR) and Intradistrict Transfers — $1.011,11 Multiple Family Residences (MFR). The 2015-16 single family residential rate, the underlying basis for In accordance with Amendment No. 2 to the all sewer rates, is $322. OCSD's rates are expected Agreement for Purchase and Sale of Capacity Rights to remain well below the projected statewide average. in Treatment, Disposal and Sewer Facilities between Irvine Ranch Water District and Orange County Property Taxes — $88.5M Sanitation District dated November 15, 1995, The County is permitted by State law (Proposition ownership is adjusted annually to reflect the current 13)to levy taxes at 1 percent of full market value equity percentage ownership based on sewage flows. (at time of purchase) and can increase the assessed Other Revenue — $4.1 M value no more than 2 percent per year. The District receives a share of the basic levy proportionate to Other revenue includes self-insurance assessments what was received in the 1976 to 1978 period less for workers' compensation and general liability $3.5 million, the amount that represents the State's coverage as well as miscellaneous revenue such as permanent annual diversion from special districts to rents and leases. school districts that began in 1992-93. The District's share of this revenue is dedicated for the payment of Debt Proceeds — $OM debt service. Certificates of Participation (COPS) are the District's Permit User Fees — $13.5M primary mechanism for financing capital projects. COPS are repayment obligations based on a lease or Large industrial and commercial properties that installment sale agreement. COPS are not viewed as discharge high volumes or high strength wastewater "debt" by the State of California, but rather a share are required to obtain a discharge permit and pay in an installment arrangement where OCSD serves as extra fees. These fees are for the owner's share of the the purchaser. system's costs, both fixed and variable, in proportion to the demand placed on the system. No new money debt issuances are proposed for FY 2015-16 to assist with the financing of the $175.0 million in capital outlays scheduled for this fiscal year. ORANGE COUNTY SANITATION DISTRICT BUDGET UPDATE—FISCAL YEAR 2O15-16 7 FINANCIAL SUMMARY/FUNDING USES BY CATEGORY WHERE THE MONEY GOES ------------- Operating Expenses Capital $151.9M Improvement 32.3% Program $175.0 M 37.3% Intradlstrlct Transfers Debt Service $1.0M $141.8M 0.2% 30.2% Funding Uses by Category (in millions) 2015-16 2014-15 2015-16 Updated Category Approved Approved Proposed Capital Improvement Program* $186.5 $206.1 $175.0 Debt Service** 211.0 86.7 141.8 Operating Expenses 154.7 157.4 151.9 Intradistrict Transfers 2.2 1.1 1.0 Total Funding Uses $554.4 $451.3 $469.7 *Capital Improvement Program total includes Replacement, Rehabilitation&Refurbishment. **The proposed amount for fiscal year 2015-16 includes a payment of$50 million against the District's unfunded pension liability. 8 ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE-FISCAL YEAR 2015-16 2015-16 BUDGET UPDATE Funding Uses by Category Intradistrict Transfers — $1.OM The District budgets its funds in six distinct areas: In accordance with Amendment No. 2 to the Agreement for Purchase and Sale of Capacity Rights Capital Improvement in Treatment, Disposal and Sewer Facilities between Program (CIP) — $175.010 Irvine Ranch Water District and Orange County Sanitation District dated November 15, 1995, In order to provide the appropriate level of service to ownership is adjusted annually to reflect the current the District's rate payers, large capital improvements equity percentage ownership based on sewage flows. are required. The CIP provides for the management and implementation of these improvements. Ending Reserves — $592.OM Replacement, Rehabilitation, & The District budgets for reserves for various potential Refurbishment — $O.OM needs including cash flow, operating contingencies, capital improvement, and replacement and Based on its Asset Management Plan, the District catastrophic loss. The reserve levels are governed by anticipates the replacement, rehabilitation, or District policy refurbishment (RRR) of existing capital facilities. The Asset Management Plan indicates that specific facilities are in need of RRR that have not yet been specifically identified or where a detailed job plan soj has yet to have been prepared. Debt Service — $141.8M This is the cost of issuing debt. Long-term debt I financing allows the District to complete large multi- year capital projects by providing funds not always • • immediately available. 1 Operating Expenses — $151.9M The proposed budget allocates resources to operate, maintain and manage our sewage collection, treatment and disposal system and for any associated administrative or technical requirements. r � ORANGE COUNTY SANITATION DISTRICT BUDGET UPDATE—FISCAL YEAR 2015-16 9 COLLECTION, TREATMENT & RECYCLING PROCESS OVERVIEW OCSD collects wastewater from 479 square miles Celsius (98 degrees Fahrenheit) in the digesters and approximately 2.5 million residents living in and are decomposed by anaerobic bacteria into two central and north Orange County. The wastewater main products, biosolids and methane. The methane is conveyed through 15 pump stations and gravity gas generated during the natural decomposition of sewers to either Reclamation Plant No. 1 in Fountain the solids in the digesters is used to fuel the Central Valley or Treatment Plant No. 2 in Huntington Power Generation System and produce electricity Beach. After the wastewater reaches one of the used to operate both treatment plants. The solids, two treatment facilities, it undergoes preliminary with settling enhanced by the addition of chemical treatment where large solids, rags, non-dispersible coagulants, are treated and then dewatered to materials and plastics are removed when the approximately 20 percent solids. The biosolids are wastewater passes through bar screens. Then it then hauled from the treatment plants and recycled flows through aerating grit chambers that remove by composting, by use as a land application, or by coffee grounds, sand, seeds, and gravel. All matter use at a local landfill that produces methane. collected in the preliminary treatment is taken by a contractor to a landfill. Approximately 90 million gallons per day of secondary effluent from Reclamation Plant No. 1 is sent to the Primary treatment consists of wastewater settling in OCWD for reclamation in its two treatment and large clarifying basins; chemicals enhance the solids distribution systems. OCWD uses the secondary settling. The solids are scraped from the bottom effluent in two ways: The first is GWRS. The GWRS and skimmed from the top of the clarifiers and then is the largest water purification project of its kind sent to digestion. Primary treated wastewater is in the world; its construction was funded jointly by then pumped to secondary treatment where it is OCWD and OCSD. At 70 million gallons per day, processed using activated sludge and trickling filters. the GWRS generates enough pure water to meet the The secondary solids collection process is similar needs of 500,000 people. The second is OCWD's to the primary treatment solids collection process. Green Acres Project, which is a water recycling Nearly all the resulting water from the secondary effort that provides reclaimed water for landscape treatment processes at Plant 1 is sent to the OCWD irrigation at parks, schools and golf courses as well for recycling/reuse after purification by the GWRS. as for industrial uses, such as carpet dying. There Plant No. 2 secondary effluent is discharged into is a project in construction which will increase the the ocean, although current studies will evaluate the secondary effluent sent to GWRS and increase feasibility of pumping Plant No. 2 secondary effluent production to 100 million gallons per day of to the GWRS as another source of specification recycled water. water. Since the 1970's, OCSD, as an environmental All of the solids collected during primary and agency, has always recycled and reused by-products secondary treatment are sent to digesters for solids of its treatment processes for the benefit of the processing. Primary solids and secondary solids health and the environment of the people in its remain for an average of 18 days at 37 degrees service area. 10 ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 2015-16 BUDGET UPDATE T j e i,dd Y �I- ♦ k `b - P y y�� ORANGE COUNTY SANITATION DISTRICT BUDGET UPDATE-FISCAL YEAR 2O15-16 II STRATEGIC PLANNING Introduction Honesty, Trust and Respect We aspire to the highest degree of integrity, honesty, Driven by the mission, vision and core values of the trust, and respect in our interaction with each other, Strategic Plan, OCSD continues aggressive efforts our suppliers, our customers, and our community. to meet the sanitation, health, and safety needs of the more than 2.5 million people we serve while Teamwork and Problem Solving protecting the environment where we live. We strive to reach OCSD goals through cooperative efforts and collaboration with each other and our Mission Statement constituencies. We work to solve problems in a creative, cost-effective and safe manner, and we The Mission Statement is the basic foundation that acknowledge team and individual efforts. defines why we exist. 'To protect public health and the environment by Leadership and Commitment We lead providing effective wastewater collection, treatment, example, acknowledging the value of and recycling." our resources and using them wisely and safely to achieve our objectives and goals. We are committed Vision Statement to act in the best interest of our employees, our organization, and our community. Our Vision Statement supports the Mission Learning/Teaching—Talents, Skills and Abilities Statement by expressing a broad philosophy of We continuously develop ourselves, enhancing what the Orange County Sanitation District strives our talents, skills, and abilities, knowing that only to achieve now and in the future in the delivery of through personal growth and development will we services to our customers, vendors, other agencies, continue to progress as an agency and as individuals. the general public, and each other. • Makin decisions in an open and honest way Re seek ioMRewards g P Y We seek to recognize, acknowledge and reward to produce optimum financial, environmental and contributions to OCSD by our many talented societal results. employees. • Cooperating with other stakeholders to protect the Risk Register ocean and regional water resources for the people we serve. Many leading organizations are formally applying risk • Beneficially recycling wastewater, biosolids and management processes to identify and manage risks other resources using safe and effective processes across many aspects of their business. The formal- and systems. ization of risk management processes is a logical step towards increased accountability and tmnspar- • Developing the best possible workforce by ency placed on the Board and District management. providing employees with opportunities to Risk assessment and mitigation includes the advance their careers through enhanced growth, responsibility, and professional development. following steps: • Identify and assess strategic and organization-wide Core Values risks facing the District and to develop a high level risk register; Our Core Values support the Mission and Vision • Identify mitigation measures that the District Statements by expressing the values, beliefs, and currently has in place; philosophy that guides our daily actions. They help form the framework of our organization and reinforce • Propose additional mitigation measures that the our professional work ethic. District considers appropriate to manage; and • Develop an action plan of responsibilities and timeframes for follow-up. 12 ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 2015-16 BUDGET UPDATE The Risk Register is a compilation of the various The top risks identified within the Risk Register risks facing the District, as seen and described Update in 2013 included 1) a seismic event annually by District managers and senior damages infrastructure; 2) interruption of chemical management. Business Risk is defined as a threat supplies in the event of a disaster; and 3) electrical that an event, action or inaction, will adversely failures or fires (including those resulting from a affect the District's ability to achieve its business disaster) interrupt power. Managers and executive objectives and execute its strategies successfully. management continue to review these issues and The District first created the Risk Register in 2006 various ways to address those that might impact and subsequently updated it in 2008, 2009, 2012, OCSD. and 2013. ORANGE COUNTY SANITATION DISTRICT BUDGET UPDATE— FISCAL YEAR 2015-16 13 STRATEGIC PLANNING Strategic Goals & Levels of Service 3. Energy Efficiency—OCSD entered into an agreement with The Energy Network (TEN) On the following pages are the updates to OCSD's to provide technical assistance and project strategic goals and levels of service. The eight management to identify energy savings strategic goals are noted and include a projected opportunities. A project implementation plan was completion time. The levels of service standards are completed and data collection is in progress. measures of service that are seen by our customers A preliminary audit report is expected in May as high priorities. Goals and levels of service are 2015. Once the audit report is received and divided into five areas: analyzed, Staff will present the findings and • Providing Exceptional Customer Service— recommendations to the Operations Committee. providing reliable, responsive and affordable Managing and Protecting the Public's Funds services in line with customer needs and 4. Disinfection of Ocean Discharge—Studies expectations. conducted by OCSD staff documenting a decline in the marine community in the sediment near • Protecting Public Health and the Environment OCSD's ocean outfall were used in petitioning the — protecting public health and the environment Santa Ana Regional Water Quality Board and the utilizing all practical and effective means for United States Environmental Protection Agency wastewater, energy, and solids resource recovery. (USEPA)to allow OCSD to cease disinfection of • Managing and Protecting the Public's Funds— its ocean discharge. After reviewing two years of continually seeking efficiencies to ensure that the studies documenting the decline of the marine public's money is wisely spent. community living near OCSD's outfall resulting from a build-up of disinfection by-products, • Stakeholder Understanding and Support— both regulatory agencies approved the petition. communicating our mission and strategies with OCSD received approval in March of 2015 to those we serve and all other stakeholders. cease disinfection of its ocean discharge with the condition that disinfection would be required • Organizational Effectiveness—creating the best if OCSD needs to use one of its two emergency possible workforce in terms of safety, productivity, discharge points. Ceasing disinfection will save customer service and training. OCSD $420,000 per year in chemical costs while preserving the ocean environment and the health Status of Strategic Initiatives since of local beaches.00SD has initiated additional Adoption of the 2014 Five-Year Plan beach and ocean monitoring to further monitor the quality of our coastal waters. Providing Exceptional Customer Service 1. Odor Control—A Request for Proposal (RFP)for 5. Local Sewer Transfers— Irvine Ranch Water District the Odor Control Master Plan Project (SP-166) (IRWD) submitted an application to the Orange was issued in January 2015. The project is on County Local Agency Formation Commision (OC target to be completed by June 2016. LAFCO)for a Boundary and Sphere of Influence Change which would allow IRWD to provide local Protecting Public Health and the Environment sewer collection services to the residents of OCSD's 2. Future Biosolids Management Options—Staff Service Area 7. The East Orange County Water Dis- is developing the Scope of Work for a Biosolids trict(EOCWD)submitted a revised Plan of Service Master Plan. This Plan will identity OCSD's for the local sewer service to OCSD's Area 7. Based future biosolids management options, evaluate on the addition of IRWD's application and the OCSD's existing solids handling facilities and revised plan submitted by EOCWD, OC LAFCO is alternative solids treatment technologies, and revising the timeline forthe release of the Municipal make recommendations for future capital facilities Services Review(MISR). In the meantime, the sewer improvements. An RFP is planned to be issued transfer agreement between OCSD and EOCWD in summer 2015 to seek engineering services by was extended to reflect the additional time needed consultants to complete this Plan. to complete the MSR process. 14 ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 2015-16 BUDGET UPDATE Stakeholder Understanding and Support Organizational Effectiveness 6. Legislative Advocacy and Public Outreach—The 8. Workforce Planning and Workforce Development Legislative and Public Affairs committee directed —A team of Managers are assisting in the review, staff to prepare a communication strategy for the modification and enhancement of OCSD's Committee's consideration. A utility branding workforce planning/development strategic consultant was hired through the NWRI/Branding initiatives. The Workforce Vulnerability&Talent Network to work on the plan. Staff will present Readiness Assessments will assist management a recommendation for action by the Board of in identifying workforce needs, key talent, and Directors by June 30, 2015. possible development efforts. Guidelines and forms will be ready by summer 2015. Based on 7. Future Water Recycling Options—OCSD is the outcome of these assessments, Managers meeting with OCWD to identify and prioritize and Supervisors are encouraged to prepare and improvements needed to support the GWRS final implement a Workforce Planning Action Plan expansion and working towards determining for each position identified in the assessments partnerships, needs, strategies, benefits and by the end of the calendar year. HR launched a costs associated with recycling of Plant 2 effluent vocational internship pilot program with Veterans by June 2015. The RFP for SP-173 Effluent First that provides rotations through the core Reuse Study was advertised in December and trades within Operations and Maintenance as well a consultant to conduct the study was selected. as Facilities Support Services. The study is expected to be completed in August 2016. Providing Exceptional Customer Service Levels of Service FY 2014-15 OCSD will provide reliable, responsive and affordable services Level of Service in line with customer needs and expectations. Results Through Target March 2015 Odor complaint response: Treatment Plants within 1 hour 100% 100% Odor complaint response: Collections System within 1 hour 97% 100% Number of odor incidents/events: Reclamation Plant No. 1 under 7 Zero (0) normal operating conditions Number of odor incidents/events: Treatment Plant No. 2 under 9 Zero (0) normal operating conditions Number of odor incidents/events: Collections System 22 <=12 per year Respond to public complaints or inquiries regarding construction 100% 100% projects within 1 working day New connection permits processed within 1 working day 100% 100% Respond to all biosolids contractor violations within 1 working day 100% 100% ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 15 STRATEGIC PLANNING Protecting Public Health and the Environment Levels of Service OCSD will protect public health and the environment utilizing all FY 2014-15 Level of Service practical and effective means for wastewater, energy, and solids Results Through Target resource recovery. March 2015 Receive and treat , free of fees, 10 MGD of dry weather urban 0.85 mgd <= 10 mgd runoff diversion flows Air emissions health risk to community and employees, per one 9 <10 million people (for each treatment plant) No Notices of Violation (NOVs) with air, land, and water permits 0 0 Respond to collection system spills within 1 hour 100% 100% Sanitary sewer spills per 100 miles 0.7 <2.1 per industry average Contain sanitary sewer spills within 5 hours 100% 100% Meet secondary treatment standards BOD-C (mg/L) 4.7 <=25 Meet secondary treatment standards TSS (mg/L) 5.7 <=30 Frequency of unplanned use of emergency one mile (78-inch 0 0 diameter) ouffall (per dry weather) Tons of biosolids to landfill through 2017 peak production period 49 < 100 tons per day Thirty-day geometric mean of total coliform bacteria in effluent after 461 < 1,000 mpn* initial dilution of 250:1 (mpn) Compliance with core industrial pretreatment requirements 100% 100% Meet GWRS specification requirements for Plant No. 1 secondary 2.7 < 5 NTU** effluent Provide all specification effluent available to the GWRS to maximize 100% 100% full production of purified water *Most Probable Number (mpn)— Number of organisms per 100 milliliters that would yield a test result or the observed test result with the greatest frequency. Commonly used for coliform bacteria, it is one indicator of the water quality. **Nephelometric Turbidity Units (NTU)—Turbidity is the cloudiness or haziness of a fluid. The measurement of turbidity is a key test of water quality. 16 ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 2015-16 BUDGET UPDATE Managing and Protecting the Public's Funds Levels of Service OCSD will continually seek efficiencies to ensure that the public's FY 2014-15 Level of Service money is wisely spent. Results Through Target March 2015 Annual user fees sufficient to cover all O&M requirements 100% 100% Variance of actual collection, treatment, and disposal costs per 3% <=10% of budget million Maintain AAA Bond Rating 100% 100% Organizational Effectiveness Levels of Service OCSD will create the best possible workforce in terms of safety, FY 2014-15 Level of Service productivity, customer service and training. Results Through Target March 2015 Training hours per employee 30.23 >=45 per year Employee injury incident rate—accidents per 100 employees 4.02 <=3.3 Meet mandatory OSHA training requirements 100% >=95% Hours worked since last lost work day 430,000 j >=1,000,000 Achieve annual agency target of days away from work, days of re- stricted work activity, or job transferred as a result of a work-related 1.26 <=2.5 injury or illness ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2O15-16 17 INFRASTRUCTURE ASSET MANAGEMENT With the completion of the $537 million full • 850 dry tons or 70 slug doses of caustic soda secondary treatment expansion program, our capital . Estimated 3,720 dry tons of magnesium improvement and maintenance programs are now hydroxide continuously dosed more focused on maintaining our infrastructure to ensure that our mission is delivered reliably and that • Estimated 5,597 dry tons of ferrous chloride our facilities are managed in a way that minimizes continuously dosed overall life cycle costs. • Estimated 240,000 gallons of calcium nitrate Below is an overview of our infrastructure continuously dosed management plans and how our budget supports the Estimated total costs: $8,823,400 goals stated above. These maintenance activities are based on Collection System: with levels of service to ensure compliance with our Sewer System Management Plan, to reduce OCSD's collection system consists of 580 miles spills, increase reliability, safety, and to ensure that of regional sewers and 15 pump stations and our facilities are managed, operated and maintained three metering locations that must be maintained, to minimize overall life cycle costs and need for repaired, and upgraded to maintain wastewater repairs. The cleaning frequencies are based on service and to convey sewage to our treatment data from pipe inspections, Closed-circuit television facilities. Typical collection system maintenance (CCTV) work and historical records. The planned activities consist of cleaning sewer lines, televising activities help extend the useful life of the assets and and inspecting, cleaning pump stations and minimize nuisance odors. pipelines, and corrosion/odor control. Collection System Capital Improvement Projects The planned maintenance and repairs for Fiscal Year Our collections projects go through an intensive 2015-16 include: planning and design process to ensure all elements • Clean 80 miles of regional sewer lines of the project are thoroughly assessed. These projects typically renew or replace aging pipelines • Rapid Manhole inspection of 4,250 regional and pump stations, upgrade facilities to meet current manholes codes and standards, and in some instances to • 1,560 estimated inspections of 15 pump stations increase flow capacity due to growth in localized and 3 metering facilities portion of our service area. • 58 facility safety inspections We are currently planning and executing a • 37 pump station wet well and 12 Plant No. 2 comprehensive program to renew our collection headwork cleanings system. One of the larger projects is the Newhope- • 650 pump station preventative maintenance Placentia Trunk Replacement (Project No. 2-72) pump cleanings which is taking place in the cities of Fullerton and Anaheim. Five miles of sewer along State • 330 pump station mechanical preventative College Boulevard, from Yorba Linda Boulevard maintenance tasks to Orangewood Avenue, will be upsized to handle • Clean 47 trouble spots and 90 inverted siphons the flow necessary to allow the abandonment of per the planned maintenance schedules the Yorba Linda Pump Station. The Yorba Linda • Pipeline cleaning services for local sewers- 125 Pump Station has now reached the end of its useful miles life. After analyzing the system, it is not practical to update the facility due to the high costs of • Pipeline repair services in local sewers - 0.75 rehabilitation and the limitation to utilize the flow for miles reclamation. Currently, flow is diverted into the Santa • Pipeline video inspection services- 50 miles Ana River line instead of the Newhope-Placentia line due to the existing insufficient capacity, thus • Manhole video inspection services - 40 locations preventing the use of flow for the Groundwater Replenishment System. The project will also include IS ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE— FISCAL YEAR 2015-16 2015-16 BUDGET UPDATE modifications to existing diversion structures to add failure. The two-mile project has a current budget of flexibility to the collection system to divert other $27.5 million. reclaimable flow. This project also provides adequate capacity for future development, minimizing the In Newport Beach, we have developed a risk of sewer spills in the future. The project has a comprehensive program to coordinate the various current budget of $104.9 million. projects scheduled to take place in the city in the next few years. We are currently constructing the Another large scale project is the Rehabilitation of Newport Force Main Rehabilitation Project (No. the Western Regional Sewers (Project No. 3-64) 5-60), which is also rehabilitating and replacing which covers approximately 15 miles of sewers parallel pipes in Pacific Coast Highway between in the cities of Anaheim, Buena Park, Cypress, La Dover Drive and just west of Superior Avenue. The Palma, Los Alamitos, Seal Beach and unincorporated $52.3 million project is more than half complete. areas of the County of Orange. This large project The project was sequenced in two phases to is required to rehabilitate or replace pipes that minimize public impacts by avoiding construction were installed 45 to 55 years ago. The sewers in the busy summer months. The 50-year steel have multiple deficiencies which have allowed the pressurized mains were in poor condition and one of intrusion of ground water primarily at the joints, the pipelines was undersized to convey predicted wet but also sporadically along the pipe segments. In weather flows. Once completed, the system should some cases, hard calcium deposits have developed, provide another 50 years of service. making the pipe difficult to clean, and may over time impede the wastewater flow. Portions of the pipeline Also in the City of Newport Beach and in portions will be relined and others will be replaced with larger of Costa Mesa, we have the District 6 Trunk Sewer diameter pipelines. Also, over 150 manholes will be Relief Project (No. 6-17). This project is replacing replaced. This project budget is $112 million. the sewer that extends from Pomona Avenue to Newport Boulevard ending near Pacific Coast At the southern edge of the previously mentioned Highway. These improvements will increase capacity project, the Seal Beach Pump Station (Project No. to properly handle the projected increase in flow 3-62) also needs to be rehabilitated to properly from planned developments. These improvements support the western region of our service area. Not will extend the life of the sewer by 30 years. Once only are the electrical and safety codes significantly the project is completed, the risk of sewer spills different from when the station was first constructed during dry weather events and common wet weather in the early 1970s, but many of the electrical, events will significantly diminish. The current budget mechanical, and control system components are for the project is $7.7 million. becoming obsolete, so long-term maintenance is no longer an option. The condition of two force mains Reclamation Plant No. 1: downstream of the pump station will also need to be addressed. One force main will be replaced and the Flow from Reclamation Plant No. 1 is delivered to other rehabilitated to properly support the updated the OCWD for recycling via the GWRS to supply facility. Odor control facilities will be added to reduce the expanded GWRS which will come on line in system corrosion and minimize public impacts. The 2015. Key operational activities taking place in the budget for this project is $62 million. upcoming year at Reclamation Plant No. 1 include increasing flows to 120 million gallons per day. In the cities of Santa Ana, Tustin, and Irvine, we have the Gisler-Red Hill Trunk Improvements There are over 5,500 preventative maintenance (Project No. 7-37) which is rehabilitating or activities that are scheduled to be completed over replacing aging parallel sewer lines. The current the upcoming fiscal year. This includes typical pipes, which run along Red Hill Avenue between time or cycle based maintenance tasks such as McGaw Street and Mitchell Avenue, are not large adjustments and mechanical alignments, cleaning enough to handle the high flows associated with and tightening of electrical equipment, calibration wet weather events which create the risk of spills. of sensors and meters, changing of lubricants and The manholes are also deteriorated and corroded filters, exercising equipment, rebuilds and regulatory and must also be replaced or rehabilitated to avoid testing. In addition, staff will be utilizing predictive ORANGE COUNTY SANITATION DISTRICT BUDGET UPDATE—FISCAL YEAR 2015-16 19 INFRASTRUCTURE ASSET MANAGEMENT technologies such as vibration analysis to measure Reclamation Plant No. 1 Capital imbalance in rotating equipment, thermography to Improvement Projects measure excessive heat, oil analysis to predict failure of lubricants, and ultrasonic to detect leaks as well These projects are intended to rehabilitate or as deterioration and short-circuiting in electrical reconstruct major components of our treatment equipment. process to ensure compliance with regulatory permits, enhance water recycling and safety. In addition to the routine preventative maintenance activities described above, the following key planned One of the largest projects currently underway is and preventative maintenance and repairs will be the Headwork Rehabilitation at Plant 1 (Project undertaken in Fiscal Year 2015-16: No. P1-105). The facility is 27 years old, so a comprehensive refurbishment is required in order • Completion of the arc flash evaluation and labeling to extend the life of the facility. The project will project to ensure the safety of workers servicing rehabilitate systems including the metering and electrical equipment. diversion structure, the bar screen building, the bin • Assessment and proper settings of protective loading building, the main sewage pump station, relays to ensure the safety of workers servicing the grit basins, the primary influent channels, the electrical equipment. headworks odor control scrubbers, and electrical power distribution and control systems. This project • Replacement of the foul air scrubber atmospheric will also replace the emergency pumping capacity analyzer units that monitor compliance with that has been provided by the original headworks South Coast Air Quality Management District pumping system dating back to the 195Os. The total (SCAQMD) requirements and feed chemicals into budgeted cost for this project is $235 million. the scrubbers. • Replacement of outdated atmospheric monitoring While the District generally has adequate hydraulic equipment in the digesters and central generation treatment capacity, additional solids handling facility areas. capacity is needed. The Sludge Dewatering and Odor Control Project(No. P1-101) is necessary to support • Rebuild of one of the four Steve Anderson Lift Station the need for more capacity to thicken and dewater pumps that transferflow tributary to Treatment Plant sludge due to the conversion to full secondary No. 2 into Reclamation Plant No. 1. treatment as well as increased flow to support the • Replacement of the control system for emergency expansion of the GWRS. The 40-year old system has back-up power generators that service our reached the end of its useful life and as such will be activated sludge secondary treatment facilities. replaced with a new and improved facility that will • Major service on four of nine blowers that provide increase cake dryness which will reduce biosolids oxygen to the microorganisms in the secondary management cost and improve sludge thickening treatment process. to optimize the use of existing digesters thus eliminating the need to construct new digesters. The Estimated total costs: $5,211,300 project will also help us meet our level of service goal 20 ORANGE COUNTY SANITATION DISTRICT BUDGET UPDATE—FISCAL YEAR 2015-16 2015-16 BUDGET UPDATE by reducing odors. The project budget is just under • Major overhaul of one of five central generation $172 million. engines that supply two-thirds of the power for the A project closely tied to the solids dewatering facility treatment plant is the Digester Rehabilitation (Project No. P1-100), • Overhaul two of the three gas compressors that which will rehabilitate 12 digesters. The project will provide digester gas to the central generation refurbish aged storage tanks, as well as handle the facility for producing electrical power and heat. increased volume of solids more efficiently and with greater reliability. The sludge pumping, heating, ' Clean and replace mechanical equipment on two structural, mechanical, and electrical and control digesters to improve mixing and detention time to systems will all be rehabilitated which will increase ensure best possible reclamation of the biosolids the quality of the sludge production. By rehabilitating . Removal of debris from the by-pass flap gate our existing digesters we reduce the risk of failure discharge point into the Santa Ana River to ensure and extend the life of the assets, minimizing future availability of this discharge in the event of an expenditures. The total project budget is $60 million. emergency. Treatment Plant No. 2: ' Completion of the arc flash evaluation and labeling Key operational activities will be taking place in the project to ensure the safety of workers servicing upcoming year at Treatment Plant No. 2 to further electrical equipment. enhance reliability, improve safety, and increase • Assessment and proper settings of protective operational effectiveness, including treating more relays to ensure the safety of workers servicing than 80 million gallons of wastewater daily from electrical equipment. three tributary sewers and the flow from the Santa Ana River Interceptor diverted from Reclamation • Replacement of the foul air scrubber atmospheric Plant 1. All flows entering Treatment Plant No. 2 analyzer units that monitor compliance with are treated to full secondary standards and then SCAQMD requirements and feed chemicals into discharged four miles offshore through our ocean the scrubbers. discharge outfall. This upcoming year, the number of process units in service will be reduced as more flow Replacement of outdated atmospheric monitoring is being diverted to Reclamation Plant No. 1. equipment in the digesters and central generation facility areas. There are over 3,250 preventative maintenance ac- tivities that are scheduled to be completed over the upcoming fiscal year. This includes typical time or Treatment Plant No. 2 Capital cycle based maintenance tasks such as adjustments Improvement Projects and mechanical alignments, cleaning and tightening of electrical equipment, calibration of sensors and The Primary Treatment Rehabilitation Project meters, changing of lubricants and filters, exercis- (Project No. P2-98) will rehabilitate the primary ing equipment, rebuilds and regulatory testing. In clarifiers, influent pipes, construct new primary addition, staff will be utilizing predictive technologies effluent pipes, and rehabilitate and upgrade the odor such as vibration analysis to measure imbalance in control systems. These facilities date back to the rotating equipment, thermography to measure exces- late 1950s and are in need of seismic and condition sive heat, oil analysis to predict failure of lubricants, based upgrades. By replacing old structures and ultrasonic to detect leaks as well as deterioration and installing new systems, we will improve the and short-circuiting in electrical equipment. resiliency of our infrastructure and thus improve In addition to the routine preventative maintenance our ability to provide service. This is anticipated to activities described above, the following key planned be a very long duration project because the need to a maintain treatment operations during the project. and preventative maintenance and repairs will be undertaken in Fiscal Year 2015-16: The total project budget is $156 million. ORANGE COUNTY SANITATION DISTRICT BUDGET UPDATE—FISCAL YEAR 2015-16 21 INFRASTRUCTURE ASSET MANAGEMENT Treating 100 percent of our influent to full secondary strategic goal for future water recycling; the Odor treatment standards means there are more solids Control Master Plan, which will help identify areas of to manage which has generated several projects to improvement to better define our level of service; and address that need. A few are currently underway the Biosolids Master Plan. As these studies evolve, such as the Solids Thickening and Processing projects will be refined or created to improve our Upgrades (Project No. P2-89) which will be systems. completed next year. The Sludge Dewatering and Odor Control project(No. P2-92) has started Civil Assets Maintenance Program construction to replace the current belt press dewatering system with a centrifuge dewatering A focused effort will be undertaken at both treatment facility that will remove a greater amount of water plants this year to strengthen proactive maintenance from the sludge resulting in reduced disposal costs of our civil infrastructure including concrete piping for the District. This $87 million project will be in and process structures, protective coatings and construction for five years. associated metal structures. The Civil Assets Management Program (CAMP) is being implemented Also in the solids handling process area, in the next to insure that OCSD civil assets meet design life five years projects will be underway to upgrade expectancy and will complement the existing the digestion complex. Recent studies have maintenance programs for mechanical, electrical and identified that the 15 active digesters have seismic instrumentation maintenance. Besides developing deficiencies. Evaluation of process options is on- in-house capabilities to better monitor and going in the Planning Division. In the meantime, the maintain these assets, the program entails utilizing Digester Facilities Rehabilitation project(No. P2- consultants and contractors for program development 91-1) is a $28 million project to keep the facilities and implementation. operating effectively in the near term. CAMP includes five elements. These elements As we make improvements throughout the plant, it are assessment, maintenance repair, cathodic is imperative we pay attention to our Ocean Ouffall protection, protective coatings, and housekeeping. systems. Many components of the ocean ouffall For this coming year, the CAMP team is planning system pipeline assets have already been addressed, to assess all of the primary and critical equipment so now we turn our attention to the pumping required to meet OCSD's main mission of protecting systems. Project No. J-117, the Ocean Ouffall the public health and environment. Cathodic System Rehabilitation, will refurbish the Ocean protection will be inspected, evaluated, and Ouffall Booster Station. This includes rehabilitation repaired as needed. Coatings of equipment will be of the mechanical, electrical, and civil systems inspected for condition and scheduled for recoating which will extend the life of the facility and increase if required. Housekeeping programs will be put in the efficiency of the system. In addition, a low flow place to ensure that all assets are kept in order, on pump station will be added due to our increased an inspection schedule and meet all safety policies. water recycling rates, which will reduce our outall Finally, repairs of the assets will be planned and flows below the capacity of our current very large scheduled to be performed by in-house personnel or pumps. The budget for this project is $76 million. contractors based on condition and criticality. As part of the long term CIP planning efforts, several Estimated total costs: $1,975,000 studies are currently underway evaluating various areas of the plants and the collection system to determine their condition, and identify deficiencies or improvements needed. These studies include the Primary Treatment Area Study and the Bay Bridge Pump Station Relocation Study to help identify how to best address and manage the improvements for these two important components of our system. We also have studies focusing on topics such as: Effluent Reuse, which coincides with Board of Directoi's 22 ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 0 e i#rtiA"7'.`f A TIFF sFa�i;�1P�i r 'WAWA" CAPITAL IMPROVEMENT PROGRAM CIP Budget Request Summary in order to assess the condition and capacity of the District's existing assets and systems. This is an update to the Fiscal Year 2014-16 two-year budget. In preparation for the 2015-16 As part of the budget update process, 41 active update, the District's Board of Directors reviewed projects were closed or cancelled totaling the proposed changes to the CIP to gain an $403.3 million. The reasons for the closure or understanding of the impact of the CIP to the current cancellation of these projects vary, and may include rate structure program. the finalization of a project thus releasing unused budget; the scopes of work of two projects being With $6.2 billion of aging assets requiring constant consolidated into one project; or, a project is no investment and attention, the District is focusing longer necessary after further consideration by the its efforts on the continued refinement of its asset asset management planning process. management based engineering planning process. This process has been used to propose project Following within the appendix are descriptions and modifications to more efficiently package projects for justifications for the capital improvement projects execution. District staff is working to carefully identify which are new projects proposed for this Fiscal Year all the necessary scope of work items in the planning 2015-16 budget update. They give the reader a brief phase of projects to reduce future change orders and overview of each project, the budget for the total other project risks. project, and any potential changes in the operational budget resulting from the implementation of the District staff has reviewed each ongoing CIP project project. For a description of ongoing projects, see to ensure that the scope of the project is appropriate, Section 8 of the Fiscal Years 2014-15 and 2015-16 and that the cost estimates are accurate. The Budget. validated CIP includes 85 large capital projects with a total expenditure of $1.7 billion. This represents Each project in the CIP went through an extensive a $1.6 million decrease from the 2014-16 CIP validation and prioritization process. Projects have estimate. been prioritized based on risk exposure if the project was deferred. Projects that would present a higher During this budget validation process, 27 projects risk if they were delayed are given a higher priority. budgets have been modified to account for newly The CIP budget process is continually improved discovered issues. In some cases, because the assets and further refined as the District improves the CIP are near the end of their useful lives, complete project management controls system. replacement was assumed instead of rehabilitation. The Project Management Controls System staff Six new projects have been created totaling work with the project managers and management $221.7 million, of which three will be starting in throughout the year to manage the scope, schedule, the Fiscal Year 2015-16 due to safety concerns. budget, risk and other key project indicators for These projects are: each project. The information is collected monthly • J-126: Safety Improvement at Plant Nos. 1 and 2 and compiled in the OCSD Project Control System website. This information is then readily available • J-127: Natural Gas Pipelines Replacement at during the budgeting process to minimize the time Plant Nos. 1 and 2 and effort needed to prepare and update the CIP portion of the overall budget. • P2-118: Activated Sludge Aeration Basin Deck Repair at Plant No. 2 This budget update also includes the creation of a Master Planning Study project. The budget for this project provides funds for planning phase studies. This project acts as an annual budget placeholder for planning studies that have been identified by the District's Asset Management Program as necessary 24 ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 DEBT FINANCING PROGRAM Debt Financing Dedicated Funding Source Due to the magnitude of identified future In 1992 and 2004 the Board of Directors formalized annual capital and operations and maintenance the dedication of certain funding sources. To assure expenditures, it is necessary that the District utilize the continuation of favorable credit ratings, revenues debt financing to meet its total obligations. Debt were dedicated to debt service in the following order: financing allows the District to meet projected construction schedules while achieving the lowest 1.Ad valorem property taxes possible user fees, as well as long-term stability in 2.Sanitary sewer service charges future sewer service fee rates. 3.Other revenues Certificate of Participation (COP) This apportionment of the ad valorem tax was consistent with and pursuant to the Revenue The primary debt mechanism used is Certificate of Program adopted in April 1979 to comply with Participation (COP). COPs are repayment obligations regulations of the Environmental Protection Agency based on a lease or installment sale agreement. The and the State Water Resources Control Board and in COP structure was selected over other structures accordance with COP documents and Board policy. because COPs are not viewed as debt by the State of California, as the purchaser does not actually The District Maintains Its AAA Rating receive a "bond," but rather a share in an installment sale arrangement where the District serves as the The District's bond rating is "AAA" from both purchaser. COPS can be issued with fixed or variable Standard & Poors and Fitch Ratings. An "AAA" interest rates. Rating is the highest for a government agency. In order to maintain this rating, the District adheres to As of July 1, 2015, the total outstanding COP its debt policy and coverage ratios requirements. This indebtedness will be $1.2 billion. Board-adopted policy serves as the agency's guide in the management of existing debt and in the issuance Build America Bonds Financings of future debt. The District issued the $80.0 million Wastewater Debt Ratios Revenue Obligations, Series 2010A in May 2010 and the $157.0 million Wastewater Revenue The District does have contractual covenants within Obligations, Series 2010C in November 2010 as the existing COP agreements which require minimum "Build America Bonds" (BABs) fixed rate debt. coverage ratios of 1.25. The minimum coverage The American Recovery and Reinvestment Act of ratio is the ratio of net annual revenues available 2009 created a new financing product, BABs, for the for debt service requirements to total annual debt municipal issuer. BABs are issued as higher interest service requirements for all senior lien COP debt. The coverage ratio for senior lien COP debt is being taxable bonds; however, the U.S. Treasury provides a 35 percent subsidy on interest payments. The net Proposed at 2.99 for Fiscal Year 2015-16. cost, after accounting for the 35 percent subsidy Future Financings payment, frequently results in lower net costs to the issuer, specifically in the maturity years beyond No new money debt issuances are being proposed ten years. for Fiscal Year 2015-16. The proposed CIP budgeted On March 1, 2013, the federal government cash outlays of$175.0 million in this fiscal year will implemented certain automatic spending cuts known be funded from reserves and other revenue sources. as the sequester. As a result of the sequester, federal subsidy payments on BABs were reduced by 8.7 percent and by 7.2 percent for the federal fiscal years ended September 30, 2013 and September 30, 2014, respectively. ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2O15-16 25 OPERATING EXPENSES Summary of Operating and Maintenance Expenses 2015-16 2014-15 2015-16 Updated Category Approved Approved Proposed Salaries and Benefits $99.2 $100.6 $94.8 Contractual Expenses 24.3 24.5 23.9 Operating Materials&Supplies 15.8 16.3 17.2 Repairs and Maintenance 13.1 12.9 12.3 Utilities 7.4 7.8 7.8 Professional Services 3.3 3.1 3.5 Other Materials, Supplies,Services 2.5 2.8 2.8 Self-Insurance Requirements 2.2 2.4 2.6 Administrative Expenses 1.4 1.6 1.6 Training and Meetings 1.0 1.1 1.1 Research and Monitoring 0.8 0.8 0.8 Printing and Publications 0.4 0.4 0.4 Cost Allocation (16.7) (16.9) (16.9) Total Operating Expenses $154.7 $157.4 $151.9 Salaries, Wages & Benefits - $94.8M budget includes a 12.9 percent increase for the medical plans. Salaries &Wages-This category includes salaries for 624 FTEs as well as Directors' pay. The vacancy Contractual Services - $23.9M factor applied for the budget update was five percent based on trend information. Provision has been The major component of this category is biosolids made in these salary projections in order to comply removal and transportation costs. The treatment with the terms of the most recently adopted MOUs. plants currently produce about 765 wet tons per day of biosolids which are recycled in California and Retirement-The District's employees are members Arizona. Nearly 50 percent of biosolids are currently of the Orange County Employees' Retirement System allocated to composting, 40 percent is used on farms (OCERS). As a result of paying down $125 million of for soil enrichment, and 10 percent is sent to a local the OCERS unfunded accrued liability in EY 2014- landfill that produces methane. The 2015-16 budget 15, the employer's required contribution rate has for biosolids removal is $17.6 million, approximately been decreased from 36.57 percent (Plans G & 74 percent of the Contractual Services budget. Other H), from 34.87 percent (Plan B) and from 33.52 residuals solids and waste includes disposal costs percent (Plan U) to 20.75 percent, 18.39 percent for grit and screening waste, digester cleaning waste, and 17.52 percent, respectively, in 2015-16. and hazardous materials. Group Insurance- Includes the District's share This category also includes appropriations for (approximately $16,400 per employee) of employee grounds keeping, janitorial, security, toxic waste medical plan benefits for the indemnity plan, prepaid removal, outside laboratory, trash pickup, plant HMO plans, the dental insurance plan, and the life site sweeping, closed circuit television pipeline and disability insurance premiums. The proposed inspections, line cleaning, and temporary services. 26 ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE-FISCAL YEAR 2015-16 2015-16 BUDGET UPDATE Operating Materials and wastewater processes, and there will be sufficient Supplies — $17.2M bleach for plant water disinfection. Bleach is no longer a significant portion of OCSD's budget. Chemicals are used throughout the treatment The bleach budget for Fiscal Year 2015-16 is plants for enhanced settling of solids, for separation approximately $0.150 million. of return and waste activated sludge, for odor control, and for disinfection. Chemicals expenses Repairs and are approximately 83% of the budget for Operating Maintenance — $12.3M Materials and Supplies. This item is for parts and services for repair of plant Chemical Coagulants—Anionic polymer is added and collection facilities and annual service contracts. to the influent wastewater along with ferric chloride via the physical/chemical treatment systems at both Planned repairs include: digester cleaning; process plants to improve solids removal efficiencies in the area preventative maintenance painting; central primary clarifier basins. Cationic polymer is added generation engine overhaul; gas compressor to digested sludge prior to dewatering to cause overhaul; interplant gas line maintenance; manhole the sludge to coagulate and improve the sludge cover purchases; and dig alert and street overlays/ and water separation process. Cationic polymer is manhole raising. also added to the waste activated sludge dissolved air flotation thickeners (DAFTs) to improve solids Utilities — $7.8M coagulation and sludge separation. The overall cost for utilities is a significant The proposed costs for this group of chemicals is component of the operating budget and is $6,012,000, $92,000 less than previously approved anticipated to be approximately the same as the for 2015-16. previously approved 2015-16 budget. Odor Control Chemicals—The District uses hydrogen Natural Gas— Natural gas is purchased to peroxide and sodium hydroxide (caustic soda) as the supplement the digester gas that is used to run primary odor control chemicals within the treatment the converted engine in the central generation plants; ferrous chloride, magnesium hydroxide, facilities and for engine ignition. The 2015-16 calcium nitrate and caustic soda are the primary budget shows an increase of$84,000 reflecting odor and corrosion control chemicals used within the higher use of natural gas because of planned collection system. engine conversions which will use more natural An increase of $758,000 from the previously gas. approved 2015-16 budget of $7.3 million is being Electricity— Electricity is the largest utility cost proposed for odor control chemicals due primarily incurred by the District and is used to run the to IRWD discontinuing the use of ferric chloride plant processes. The 2015-16 budget reflects in their treatment process. Because of this, OCSD a minor increase from the previously adopted must use more ferrous chloride for collection system budget. odor control. Disinfection Chemicals—On March 18, 2015, Professional Services — $3.5M OCSD discontinued the used of bleach as an effluent Professional Services includes General Counsel, disinfectant. At Plant No. 1, 25% of the total bleach special labor counsel, legislative advocacy, audit and budget will be used for plant water disinfection and miscellaneous accounting services, engineering, and for control of filamentous organisms in secondary other technical consulting services. treatment processes. At Plant No. 2, a supply of bleach will be available for possible emergencies, along with a small supply of sodium bisulfite. Disinfected plant water is used throughout the ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2O15-16 27 OPERATING EXPENSES Other Material, Supplies, the training budget has been reduced from previous Services — $2.8M highs of 2.0 percent to approximately 1.6 percent of budgeted regular salaries due to savings achieved in This category of costs includes the in-lieu insurance part through the use of online courses. premium used to maintain the level of accumulated reserves for the property and general liability self- Research and Monitoring — $0.8M insurance programs. This in-lieu cost for 2015-16 is Research and monitoring expenditures consist of proposed at $0.5 million. contract services to carry out the extensive ocean Expenses not chargeable to other categories, such monitoring program required by the EPA under as freight and miscellaneous items, and annual provisions of the District's National Pollutant regulatory fees assessed by the South Coast Air Discharge Elimination System (NPDES) permit for Quality Management District, are recorded within ocean discharge; air quality monitoring costs; the this category. District's contribution to the Southern California Coastal Water Research Project (SCCWRP) being Insurance — $2.6M conducted under a joint powers agreement with other Southern California municipal dischargers; The District's outside excess general liability and also provide for increased operational and insurance coverage is $40 million per occurrence ocean research and evaluation to develop optimum with self-insurance retention of$500,000. operating parameters in treatment plants. The District's property insurance coverage of Administrative Expenses — $1.6M $1 billion for perils of fire and $300 million for perils of flood is subject to a self-insurance retention These accounts include supplies, postage, technical of$250,000. The District is partially self-insured journals and publications, forms, small office for earthquake, but does carry $25 million in equipment, and small computer items that cost less coverage on seven key structures, with a $5 million than $5,000 per item and exclude items that are deductible. The District also increased its sublimit for capitalized. builder's risk under the property insurance program from $25 million to $50 million to ensure upcoming Printing and Publication — $0.4M construction projects are adequately covered. The budget provides for in-house and outside An appropriation of $0.5 million for in-lieu premium reproduction costs and reflects an expanded contribution charged to operations is recommended management information system and administrative for the Property and General Liability Program. This requirements as well as a continuing demand by will serve to maintain the reserves balance. the public and regulatory agencies for information. The continuing effort of the Public Affairs Office Training and Meetings — $1.1M to improve public education programs about the District's activities is also reflected in the budget Board member and staff travel has been significantly for this line item. This group of accounts also reduced in recent years. This category also includes costs for photo processing, advertisements, includes meetings of professional societies; ongoing and notices. technical training and materials for staff; training for computerized plant monitoring and control systems, Cost Allocation — ($16.9M) MAXIMO (a computerized maintenance management system), Enterprise Resource Planning (ERP), This represents direct labor and benefit charge outs and other"high tech" equipment, processes and and materials, supplies and services cost allocation systems; and training to allow for an adaptive and to the capital projects where the related work was flexible work force. While OCSD continues to place performed. an emphasis on effective safety training, as well as technical, leadership and management training, 28 ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2O15-16 2015-16 BUDGET UPDATE I , r ORANGE COUNTY SANITATION DISTRICT BUDGET UPDATE- FISCAL YEAR 2015-16 29 DEPARTMENTS SUMMARY 2015-16 2015-16 2014-15 Originally Percent Updated Percent Department Budget Proposed Change Proposed Change Administration Units: General Managers Office $4.0 $4.0 0.0% $4.5 12.5% Human Resources 4.1 4.2 2.4% 7.2 71.1% Administrative Services 21.7 22.2 2.3% 17.7 (20.1%) Sub-Total $29.8 $30.4 2.0% $29.4 (3.3%) Operating Units: Facilities Support Services 22.3 22.9 2.7% 20.1 (12.4%) Engineering 10.4 10.4 0.0% 9.5 (8.5%) Operations&Maintenance 90.0 91.3 1.4% 90.3 (1.1%) Sub-Total $122.7 $124.6 1.5% $119.9 (3.811.) Total $152.5 $155.0 1.6% $149.3 (3.7%) Staffing by Department (FTEs) 2015-16 2015-16 2014-15 Originally Percent Updated Percent Department Budget Proposed Change Proposed Change Administration Units: General Managers Office* 14.00 14.00 0.0% 15.00 7.1% Human Resources 16.00 16.00 0.0% 27.00 68.8% Administrative Services 111.00 111.00 0.0% 98.00 (11.7%) Sub-Total 141.00 141.00 0.0% 140.00 (0.7%) Operating Units: Facilities Support Services 76.00 76.00 0.0% 63.00 (17.1%) Engineering 123.00 123.00 0.0% 127.00 3.3% Operations&Maintenance 284.00 284.00 0.0% 294.00 3.5% Sub-Total 483.00 483.00 0.0% 484.00 0.2% Total FTEs* 624.00 624.00 0.0% 624.00 0.0% *FTE totals exclude Management Discretion positions that are authorized but used only on a temporary basis to facilitate the replacement of key positions. Two additional Management Discretion positions are proposed for FY 2015-16 to supplement the two existing positions,however, total filled positions will not exceed 624 FTEs at any point in time. 30 ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE-FISCAL YEAR 2015-16 2015-16 BUDGET UPDATE Administration Units Operating Units General Manager's Office Facilities Support Services Budget$4.5M —Staffing 15.00 FTEs Budget$20.11VI —Staffing 63.00 FTEs The General Manager's Office provides general The Facilities Support Services Department provides oversight of all Sanitation District operations and fleet and heavy equipment services for the District, incorporates functions in the areas of Public Affairs handles non-public works construction support and Board Services. This office reports directly to the and projects, and operates and maintains the Board of Directors. The budget reflects an increase regional collection system facilities providing reliable of 1.00 FTE due to the transfer in of one position collection and transportation of wastewater, and from another department. The budget also includes efficient, safe operation and maintenance of the four unfunded Management Discretion positions not system in the 479 square mile area. The budget included in the FTE totals. reflects a reduction of 13.00 FTEs as a result of transferring positions out to other departments. Human Resources Budget$7.2M —Staffing 27.00 FTEs Engineering The Human Resources Department works with Budget $9.5M —Staffing 127.00 FTEs management and employees to ensure an effective The Engineering Department is responsible for and productive employment relationship, and identifies the planning, design and construction of the and manages potential risk to the organization to District's capital improvement program as well as create a safe, healthy and secure environment for environmental compliance and asset management. staff, contractors, and visitors. This department reports The budget reflects an increase of 4.00 FTEs due to directly to the General Manager. The budget reflects the transfer in of positions from other departments. an increase of 11.00 FTEs due to the transfer in of the Risk Management Division from the Administrative Operations and Maintenance Services Department, partially offset by the transfer out Budget$90.3M —Staffing 294.00 FTEs of one position to another department. The Operations and Maintenance Department Administrative Services is responsible for operation of the District's two Budget $17.7M —Staffing 98.00 FTEs wastewater treatment plants as well as the The Administrative Services Department maintains environmental laboratory and ocean monitoring. The financial oversight and administration of all District budget reflects an increase of 10.00 FTEs due to the transfer in of positions from other departments. funds and accounts, is responsible for contract admin- istration and procurement, and oversees all District computer, networking and customer support issues. The budget reflects a decrease of 13.00 FTEs due to the transfer out of the Risk Management Division to the Human Resources Department and the transfer out of one other position to another department. *FTE-Full-Time Equivalent Position ORANGE COUNTY SANITATION DISTRICT BUDGET UPDATE—FISCAL YEAR 1015-16 31 GENERAL MANAGER'S OFFICE General Management General Administration Manager's Baard Services OffiCe Public Affairs Human Resources Board of Directors Administrative Services Counsel General Counsel Manager O ce Facilities support services Engineering Operations& Maintenance Service Description General Management Administration is responsible for working with the Board of Directors to establish standards, policies and procedures, and the overall goals and Strategic Plan of the agency. The General Manager reports directly to the Board of Directors and provides general oversight to all District operations, interagency relations, legislative activities, communications, and the Strategic Plan. The Assistant General Manager directly oversees the Public Affairs and Board Services Divisions. Board Services provides a high level of customer service through the Clerk of the Board's office. The Clerk of the Board's office supports the Board of Directors and the public by preparing and publishing agendas in accordance with legal requirements for meetings of the Board of Directors; recording the actions taken by the Board; publishing notices as required by law; acting as filing officer for Statement of Economic Interests filings; receiving and processing summons and complaints filed against the District; and maintaining rosters of the Board of Directors and appointed committee assignments. Public Affairs provides services and implements programs to meet the communications needs of OCSD's internal and external audiences. The division is responsible for OCSD's media relations, internal and external communications, community relations, public education and outreach program, social media, special events, agency branding, collateral materials, graphic design, and crisis communications. The division's goal is to develop and manage a total communications program in accordance to OCSD's Core Values and OCSD's Strategic Plan. 32 ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 2015-16 BUDGET UPDATE Operating Expense 2015-16 2015-16 2014-15 Originally Updated Category Budget Proposed Proposed Personnel $2,388,200 $2,431,500 $2,462,470 Supplies 298,390 283,490 342,540 Professional/Contractual Services 261,000 200,000 615,500 Research&Monitoring 0 0 0 Repairs&Maintenance 1,500 1,500 1,500 Utilities 128,000 136,000 136,000 Other 1,039,400 1,088,700 1,090,120 Cost Allocation (92,500) (92,500) (92,500) Total $4,023,990 $4,048,690 $4,555,630 Budget Overview Authorized FTE Positions The Fiscal Year 2015-16 budget for the General Manager's Office Managers....................................3,00 reflects an increase of 12.5 percent over the previously adopted budget. Supervisors/Professionals.............8.00 The increase is primarily due to the transfer in of one position from Administrative/Clerical.................4.00 another department and the transfer of funding from the Engineering Department for advocacy efforts. Total.......................................15.00 -rrc rorols excwde roar Management Discretion Performance Objectives / Measures wnflfw,.wbro°ewauthon�lo6 e tempwelbesm 0/mpRafa me mplare t of • Ensure the District does not exceed 624 FTEs by the end of Fiscal k,Wsltlws. Year 2015-16. Staffing Trends • Deliver a minimum of 90 percent of each fiscal year's CIP budget. • Manage operating expenditures to within 96 to 100 percent of the 1soo approved budget. 14o0 t 3.00 • Ensure OCSD's total recordable injury rate is below the industry 12,00 12.00 average of 4.6. • Ensure that the Board approved Strategic Plan is implemented. 2011-12 2012-13 2013-14 2014-15 2013-16 ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 33 HUMAN RESOURCES DEPARTMENT General Manager's Off Ice Human Resources Administration Human Workforce Board of Development Directors Workforce Planning Administrative I Risk General Services Management Counsel General Office Manager ISSeUNPP,'Ic.'e'stj Engincering Opemtians& 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, workforce development, and risk management functions. 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 of job- 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. 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. 34 ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 2015-16 BUDGET UPDATE Operating Expense 2015-16 2015-16 2014-15 Originally Updated Category Budget Proposed Proposed Personnel $3,873,200 $3,908,000 $5,473,600 Supplies 148,810 192,810 546,110 Professional/Contractual Services 705,480 738,660 1,656,200 Research&Monitoring 0 0 0 Repairs&Maintenance 0 0 3,550 Utilities 0 0 0 Other 35,540 35,540 611,580 Cost Allocation (682,400) (682,400) (1,118,100) Total $4,030,630 $4,192,610 $7,172,940 Budget Overview Authorized FTE Positions The Fiscal Year 2015-16 budget for the Human Resources Department Managers....................................2.00 reflects a 71.1 percent increase from the originally proposed budget. supervisors/Professionals...........22.00 The increase is primarily due to the transfer in of the Risk Management Administrative/Clerical.................3.00 Division from the Administrative Services Department, partially offset by the transfer out of one position to another department and the transfer Taal.......................................27.00 of BLAST (Building Leaders, Abilities, &Skills for Tomorrow) program funding to the General Manager's Office. Staffing Trends Performance Objectives / Measures 2700 • Support departments in the development of multi-year workforce planning requirements. law 17.00 16.00 • Support departments in the development of multi-year workforce 1600 development plans. • Support the training level of service of 45 hours per employee. 2011-12 201213 2013-14 2014-15 2015-16 • Support departments in the development of multi-year succession plans. • Manage operating expenditures to within 96 to 100 percent of the approved budget. • Maintain an ongoing, multi-year employee relations and labor relations training program. • Align the Risk Register with the General Managers Work Plan. ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 35 ADMINISTRATIVE SERVICES DEPARTMENT General Manager's Office Human Administrative Resources Services Board of Financial Directors Management Contracts, Administrative Purchasing& Services Materials General General Management Counsel Manager Information Office Facilities Technology Support Services Engineering Operations& Maintenance Service Description The Administrative Services Department oversees all of OCSD's finance, contracts/purchasing, and information technology activities, including both day-to-day operations and strategic planning. The department serves as a liaison to Executive Management, the Board of Directors, and other departments of OCSD. The department includes four divisions: Administrative Services provides leadership and oversight to all Administrative Services divisions. Financial Management oversees and administers all OCSD's funds and accounts. Programs include treasury and debt management, accounts receivable and payable, user fees, payroll, fixed assets accounting, 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, receives and maintains inventory, and distributes supplies, materials, and equipment. Information Technology is responsible for customer support related information technology assets and services, networking and infrastructure, telecommunications service operation and maintenance, network and programming, solutions and application support. 36 ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 2015-16 BUDGET UPDATE Operating Expense 2015-16 2015-16 2014-15 Originally Updated Category Budget Proposed Proposed Personnel $16,853,200 $17,102,100 $14,188,900 Supplies 1,541,980 1,716,570 1,354,360 Professional/Contractual Services 2,629,920 2,363,120 1,468,570 Research&Monitoring 0 0 0 Repairs&Maintenance 1,305,660 1,357,690 1,354,140 Utilities 320,000 385,000 385,000 Other 598,550 788,330 64,820 Cost Allocation (1,552,210) (1,553,410) (1,117,710) Total $21,697,100 $22,159,400 $17,698,080 Budget Overview Authorized FTE Positions The Fiscal Year 2015-16 budget for the Administrative Service Managers....................................5.00 Department reflects a 20.1 percent decrease from the previously Supervisors/Professionals...........55.00 proposed budget. This decrease is primarily due to the transfer out of Administrative/Clerical...............36.00 the Risk Management Division to the Human Resources Department, Other..........................................2.00 a decrease in retirement costs and the transfer out of one position to another department. The overall decrease was partially offset by Total.......................................98.00 increases for cost of living adjustments (COLAs), employee medical insurance benefits, and workers compensation. Staffing Trends Performance Objectives / Measures • Manage operating expenditures to within 96 to 100 percent of the approved budget. 111.75 11015 11015 11100 • Comply with the California State Government Code 100 percent of �Y�oo the time with all treasury investments. • Submit the annual sewer service fee property parcel database to the County in time for placement on annual secured property tax bills. 201-12 2012-13 2013-10 2014-15 2015-16 • 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. • Ensure the measurement of the Information Technology Strategic Plan 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. ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 37 FACILITIES SUPPORT SERVICES DEPARTMENT General Manager's Office Human Resources Board of Directors Facilities Administrative Support Services Services General Administration Counsel General Fleet Services Office Manager Facilities Collections Support Engineering Services 8 Services Collection Facilities M Operations& Maintenance Source Inspection Service Description The Facilities Support Services Department is responsible for providing reliable and effective services in the areas of Fleet Management, Collections 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 five divisions: Facilities Support Services Administration provides leadership, support, and management oversight for the Department in order to accomplish OCSD's Strategic Plan and departmental annual goals. Fleet Services provides fleet and heavy equipment services and motor pool management to all OCSD staff. Collections Engineering and Services provides engineering, technical support, and outsourced services support in order to deliver solutions and facility repair projects for the agency; and provides services to minimize odor and corrosion impacts within the facilities. Collection Facilities Operations & Maintenance operates and maintains the regional facilities which include gravity sewers and pumping facilities. Source Inspection works with industrial and commercial dischargers to inspect, monitor, and sample within the collection system to ensure regulatory compliance. This includes coordination and troubleshooting support on sewer debris issues with cities and sewering agencies that discharge to the OCSD system, including SAWPA. 38 ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 2015-16 BUDGET UPDATE Operating Expense 2015-16 2015-16 2014-15 Originally Updated Category Budget Proposed Proposed Personnel $11,468,600 $11,604,400 $8,997,600 Supplies 6,728,210 6,907,820 7,537,010 Professional/Contractual Services 1,935,920 2,182,230 1,925,930 Research&Monitoring 5,000 5,000 1,000 Repairs&Maintenance 1,685,190 1,728,440 1,065,210 Utilities 704,540 735,920 764,920 Other 47,720 49,290 81,160 Cost Allocation (277,470) (279,170) (279,170) Total $22,297,710 $22,933,930 $20,093,660 Budget Overview Authorized FTE Positions The Fiscal Year 2015-16 budget for the Facilities Support Services Managers....................................2.00 Department reflects a 12.4 percent decrease from the originally supervisors/Professionals...........14.00 proposed budget. This decrease is primarily due to a decrease Administrative/Clerical.................5.00 in retirement costs and the transfer out of 13 positions to other Technical..................................14.00 departments along with funding for repairs and maintenance associated with the Rebuild Shop. The overall decrease was partially offset by Operations&Maintenance..........28.00 increases for cost of living adjustments (COLAs), employee medical Total.......................................63.00 insurance benefits, and workers compensation. Performance Objectives / Measures Staffing Trends • Manage operating expenditures to within 96 to 100 percent of the approved budget. • Achieve 100 percent compliance with water, air, safety, and mobile 83.75 81.00 )6.00 6.00 equipment permits. 63.00 • Achieve 100 percent compliance with the Safety Scorecard. • Achieve 100 percent of the Levels of Service consistent with resource 2011-II 201213 201314 201415 20,5-16 availability. • Achieve Levels of Service for less than 12 collection system odor complaints per year. • Achieve Levels of Service for keeping the number of sewer spills less than 13 per year based on the industry average of 2.1 per 100 miles of sewer. • Achieve Levels of Service response to sewer spills within one hour and full containment within five hours. • Complete the transfer of local sewers in the City of Tustin and unincorporated areas of Service Area 7. ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 39 ENGINEERING DEPARTMENT General Manager's Office Human Resources Administrative Services :GaeneralGeneral Facilities r— gineering Support Administration services Planning Project Management L Office Engineering& Construction Environmental 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-agency agreements. Project Management Office 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 activities 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 while building positive relationships with the regulatory community, agency associations and the public. The Industrial Source Control and Non-Industrial Source 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. 40 ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 2015-16 BUDGET UPDATE Operating Expense 2015-16 2015-16 2014-15 Originally Updated Category Budget Proposed Proposed Personnel $21,446,400 $21,660,100 $21,045,730 Supplies 523,670 530,950 514,370 Professional/Contractual services 852,300 799,400 541,000 Research&Monitoring 85,000 85,000 85,000 Repairs&Maintenance 1,000 1,000 0 Utilities 0 0 0 Other 682,040 702,040 702,660 Cost Allocation (13,233,100) (13,355,500) (13,355,500) Total $10,357,310 $10,422,990 $9,533,260 Budget Overview Authorized FTE Positions The Fiscal Year 2015-16 budget for the Engineering Department Managers....................................5.00 reflects an 8.5 percent decrease from the originally proposed budget. supervisors/Professionals...........87.00 This decrease is primarily due to a decrease in retirement costs and Administrative/Clerical...............35.00 the transfer of funding for advocacy efforts to the General Manager's Office. The overall decrease was partially offset by the transfer in of four Total.....................................127.00 positions from other departments in addition to increases for cost of living adjustments (COLAs), employee medical insurance benefits, and Staffing Trends workers compensation. Performance Objectives / Measures 128.50 125.00 123.00 123.00 127.00 • Expend minimum 90 percent of project annual Capital Improvement Program cash flows for Fiscal Year 2015-16. • Manage operating expenditures to within 96 to 100 percent of the approved budget. 2011-4 2012-13 2013-00 2010-05 2015-06 • Ensure that reporting divisions achieve 90 percent of individual performance objectives. • Complete the Odor Control Master Plan by the end of Fiscal Year 2015-16. ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 41 OPERATIONS & MAINTENANCE DEPARTMENT General Managers Office Human Resources ACounselManager Administrative Operations& Services Maintenance Administration Plant No.Facilities Operations Support Plant No.2 Services Operations Plant No, 1 Maintenance Engineering Plant No.2 Maintenance Environmental Laboratory Operations& &Ocean Maintenance Monitoring Service Description The Operations and Maintenance (0&M) Department is responsible for treating wastewater, reusing or disposing of the treated wastewater and all residuals, providing maintenance support to all facilities, providing laboratory services and assessing the impact of our treated effluent discharge on the receiving waters. The 0&M Department has been reorganized for fiscal year 2015-16 in order to centralize management of all maintenance and further effect maintenance administration by Plant. The Department consists of six divisions: Operations and Maintenance Administration provides leadership and oversight to all 0&M divisions. Plant No. 1 and Plant No. 2 Operations are responsible for the daily management of the wastewater treatment processes, sludge and biosolids treatment and loading processes, power generation, and odor and air quality control processes. Activities also include ensuring compliance with all regulatory permits, supporting the Capital Improvement Program, and coordinating construction and maintenance work in the treatment plants. Plant No. 1 Operations also ensures the delivery of specification water to the Ground Water Replenishment System. Plant No. 1 and Plant No. 2 Maintenance are responsible for civil, electrical, facilities, instrumentation and mechanical maintenance of the two treatment plants and pump stations. Also centralized under the Maintenance Manager in support of both plants and collection system is the Maintenance Management Group and the Reliability Maintenance Team, which provide district-wide support services for planning and scheduling maintenance events and predictive maintenance activities. 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. 42 ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 2015-16 BUDGET UPDATE Operating Expense 2015-16 2015-16 2014-15 Originally Updated Category Budget Proposed Proposed Personnel $43,139,200 $43,875,800 $42,634,100 Supplies 9,458,560 9,719,320 9,914,600 Professional/Contractual services 21,162,920 21,357,460 21,257,380 Research&Monitoring 740,000 750,000 745,000 Repairs&Maintenance 10,069,860 9,839,140 9,918,920 Utilities 6,285,230 6,528,160 6,501,160 Other 90,630 91,520 196,730 Cost Allocation (903,020) (914,520) (914,520) Total $90,043,380 $91,246,880 $90,253,370 Budget Overview Authorized FTE Positions The Fiscal Year 2015-16 budget for the Operations and Maintenance Managers....................................4.00 Department reflects a 1.1 percent decrease from the previously supervisors/Professionals.........100.00 proposed budget. This decrease is primarily due to a decrease in Administrative/Clerical.................6.00 retirement costs, partially offset by increases for 10 positions transferred in from other departments in addition to increases for cost of living Technical....................................3.00 adjustments (COLAs), employee medical insurance benefits, workers operations&Maintenance........181.00 compensation, and new projects in the comprehensive Civil Assets Taal.....................................294.00 Management Program (CAMP). Performance Objectives / Measures Staffing Trends 5� • Achieve 100 percent compliance with water, solids, air, and energy permits. 281M 28100 283.00 280.W 29 M • Achieve a compliance level of 90 to 100 percent of the O&M t�T performance measurement targets consistent with resource availability. ,aa • Manage operating expenditures to within 96 to 100 percent of the 20092 20121 20114 2011 2015-16 approved budget. ORANGE COUNTY SANITATION DISTRICT I BUDGET UPDATE—FISCAL YEAR 2015-16 43 - ilk • . �.� . - ,�,�Wra ����Y�' � � � .t1ai■■cam, �.� it 0-.goa Appendix A- 1 Cash Flow Projection Orange County Sanitation District Consolidated Cash Flow Projections Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary Ref Description 16.16 19-17 19-18 18-19 19-20 M-21 Revenues: 1 General User Fees $2W,182,000 $299,620.000 $299,158,000 $303,788,000 $308,442,000 $313,122,000 2 Permitted User Fees 13,555ow 13765,000 13,933,W0 14,102,000 14,2I0,000 14,438,OW 3 IRWDAssessments 13,743,570 8,9w,980 4,648,730 5,380,690 6,244,040 6,061,060 4 SAWPA Assessnents 2,690,000 2,798,000 2,910,WO 3,027,000 3,148,W0 3,274,000 5 Properly Taxes 88,527,WO 92,953,000 97,601,000 102,401,000 107,605,WO 112,985,000 6 New WP§sues - - - - - - interest Revenues 6,064,W0 9,028,000 9,686,000 13,7OQOOO 17,080,WO 16,833,000 8 Capital Facilities Gpacfty Charges 11,000,wo 8,958,000 9,561,000 9,513,000 9,981,W0 10,474,OW 9 Otter Revenues 5,058,700 4,722,700 4,774,700 4,829700 4,884,700 4,9ll700 10 Revenues 434,820,VO 440,763,680 442,272,430 456,827,390 471,654,140 482,128,780 Requirements: 11 Oper&Mce Exp(5.0%yr) 149,306,940 150,442,000 151,799,000 157,M0,000 164,120,WO 170,651,0W 12 Capital hprovement Program(CP) 181,912,W0 153,564,000 143,606,W0 153,704,0120 189,869,000 156,220,ow 13 CIP Savings&referrals (6,891,000) (25,071,000) (28.936,000) (3,412,000) (2,694,000) (4,761,000) 14 Rapl,Rehab&Refurb - 3,737,000 M,660,000 31,430.000 50,635,000 62,083,000 15 COP Service(5.0%,30 yrs) 91,777,W0 96,773,000 92,832,W0 91,257,OW 91,284,W0 91,165,OW 16 Reduction of Long-Term Liabilities 50,WO,000 W,000,000 - - - - 17 Other Requirements 3,612,7W 2,612700 2,612,700 2,612,700 2,612,700 2,612,7W 18 Requirements 469,717,640 412,057,700 302,573,700 133,431,700 495,826,700 477,970,700 19 Revenues-Requirements (3g899,370) 28,725,980 59,08,730 23,395,690 (24,191,980) 4,158,0110 Accumulated!Funds 20 Begnning of Year 626,917,530 592,OM,160 620,746,140 680,444,870 703,840,660 679,668,60 21 End of Year $592,020,160 $620,146,140 $680,444,870 $703,840,5W $679,668,600 $683,826,660 22 Consolidated Reserve Policy $528,550,000 $531,938,000 $526,789,WO $528,875,O0 $532,671,000 $535,982,W0 23 over(Under)Reserve Policy- $63,470,160 $88,808,140 $153,655,870 $174,965,560 $148,997,W0 $147,844,660 Sewer Service User Fees: 24 Avg SFRAnnual War Fee $322.00 $32700 $331.00 $335.W $339.00 $343.W 25 Percentage Change 1.90% 1.55% 1.22% 1.21% 1.19% 1.18% 26 Equivalent Ow ailing Unds 919,471 922,183 924,950 927.725 930,508 933,300 27 SFR Connection Fee $3,7M $3,926 $4,107 $4,296 $4,494 $4701 28 outstanding COFB $1,167,27O,OW $1,131,695,000 $1,096,525,000 $1,W5,710,O00 $1,O72,255,WO $1,053,MO,OW Reserve Policy 29 50%1,1ext Year operating $ 74,653,000 $ 75,221.000 $ 75,900,000 $ 78,920,000 $ 82,060,W0 $ 85,326,000 30 10%1,1ext Year Operating 14,931,OW 15,044,000 15,180,00 15,784,000 16,412,000 17,065,O00 31 100%Next Year AUG WPSvc. 91,T/7,0W 96,773,000 92,M2,W0 91,257,000 91,284,W0 91,165,OW 32 50%average ten-year CP Bal. 110,051,000 110,051.000 110,051,W0 110,051.000 110.051,000 110,051,OW 33 MR@10%Outstanding COPS 116,727,WO 113,170,000 109,853,000 108,571,000 107,226,WO 105,W4,O00 34 SFI@$51mu 57,000,W0 57,000.000 57,000,W0 57,OW,000 57,000,000 57,W0,000 35 Rapt&Refurb @ 2%/yr 63A11,1200 64,679,000 65,973,1200 67,292,000 68,638,000 70,011,000 36 Y+eserve Reduction(in accordance with Board action alowng a$40M reduction to total reserves) - - 37 Total $ 528,550,WO $ 531,938,000 $ 526.789,000 $ 528,875,OW $ 532,671,000 $ 535,982,000 COPRatics 38 $r Lien Coverge,Mn 1,25 2.99 2.91 3.03 3.17 3.26 3.30 A-2 2015-16 Budget Update Orange County Sanitation District Consolidated Cash Flow Projections Preliminary Preliminary Preliminary Preliminary 10.Year Ref Descrlptlon 21-22 22-23 23-M 2&25 Total Revenues: 1 General User Fees $317,827,000 $322,557,000 $330,138,000 $337,761,000 $3,126,595,000 2 Pernitled User Fees 14,607,000 14,775,000 15,069,000 15,364,000 143,878,000 3 IRND Assessments 7,428,960 7,456,020 7,256,840 7,152,00 74,311,420 4 SAwPA Assessments 3,405,000 3,541,000 3,682,000 3,829,000 32,304,000 5 Property Taxes(Rat in short term) 118,634,000 124,566,000 13g794p00 137,334,000 1.113,480,000 6 Naw COP issues - - - - - 7 Interest Revenues 15,935,000 14,183,000 12,987,000 12,491,000 127,993,000 8 Capital Facilities Capacity Charges 10,986,000 11,524,000 12,093,000 9,220,000 103,310,000 9 Other Revenues 4,998,700 5,057,700 5,118,700 5,180,700 49,568,000 10 Revenues 493,821,660 503,659,720 517,138,540 528,332,230 4,771,439,420 Requirements: 11 Oper&vice&p(5.0%yr) 177,441,000 184,502,000 192729,000 200,400,000 1,699,230,940 12 Capital nprovenenl Pogram(CIR 223,078,000 204,201,000 164,483,000 133,820,000 1,704,457,000 13 ( Savirgs&Dafenals (8,685,000) (3,632,000) (3,448,000) (12,886,000) (100,416,000) 14 Rapl,Rehab&Refurb 92,750,000 97,454,000 109,165,000 129,066,000 596,980,000 15 OOP Service(5.0%,30 yes) 83,536,000 83,525,000 83,515,000 83,500,000 889,164,000 16 Reduction of Long-Term Liabilites - - - - 80,000,000 17 Other Requieemnts 2,612,700 2,612,700 2.612.700 2,612700 27,127,000 18 Requirements 570,732,700 568,662,700 549,056,700 536,512,700 4,696,542,940 19 Revenues-Requirements (76,911,040) (65,002,980) (31,918,160) (8,180,470) (125,103,520) Accumulated Funds: 20 Beginning of Year 683,826,660 606,915,620 541,912,640 509.994,480 626,917,530 21 End of Year 5606,915,620 $541,912,640 $509,994,480 $501,814,010 $501,814,010 22 Consolidated Reserve Policy $530,971,000 $533,629,000 $506,880,000 $499,667,000 $499,667,000 23 over(Under)Reserve Policy' $75,W,620 $8,283,640 $3,114,400 $2,147,010 $2,147,010 Sewer service War Rims: 24 Avg SFRAnnual User Fee $347.00 $351.00 $3M.00 $365.00 25 Percentage Change 1.17% 1.15% 1.99% 1.96% 26 Bauivalent As oiling Wile 936,100 938,908 941725 944,550 27 SFR Connection Fee $4,917 $5,143 $5,380 $5,627 28 Outstanding WN $1,025,076,000 $995,130,000 $963,795,000 $930,935,000 Reserve Policy 29 50%Next Year Operating $ 88,721,000 $ 92,251,000 $ 96,365,000 $100,200,000 30 10%Next Year Operating 17,744,000 18,450,000 19,273,000 20,040,000 31 100%Next Year AUGGOPSvc. 83,536,000 83,525,000 83,515,000 83,500,000 32 50%average ten-year CPBal. 110,051,000 110,051,000 110,051,000 110,051,000 33 WR@10%Outstanding GOPs 102,508,000 99,513,000 96,380,000 93.094,000 34 SR@$57. ll,RUT 57,000,000 57,000,01)0 57,000,000 57,000,000 35 Rapl&Rafurb@2%/yr 71,411,000 72,839,000 74.296.000 75782,000 36 'Reserve Reduction (30,000,000) (40,000,000) 37 Total $ 530,971,000 $533,629,000 $506,880,000 $499,667,000 COP Rohn 38 Sr Lien Coverge,Mn 1.25 3.66 3.68 3.74 3.82 A-3 Capital Improvement Program Summary % Change Original FY 2015-16 Budget $ 180,337,000 Projects Completed or Cancelled (4,059,000) (2.25%) New Projects 1,174,000 0.65% Additions to Existing Projects 32,521,000 18.03% Deductions from Existing Projects (29,912,000) (16.59%) Changes to Capital Equipment 1,851,000 1.03% Revised FY 2015-16 Budget $ 181,912,000 0.87% Original Total Budget $ 2,777,759,000 Projects Completed or Cancelled (1,032,607,000) (37.17%) New Projects 221,705,000 7.98% Additions to Existing Projects 533,533,000 19.21% Deductions from Existing Projects (53,670,000) (1.93%) Changes to Capital Equipment (2,671,000) (0.10%) Revised Total Budget $ 2,444,049,000 (12.01%) A-4 2015-16 Budget Update Project Summary FY 2015-16 Replacement/ Improved Additional Total Item Rehabilitation Treatment Capacity Support Budget Solids Handling&Digestion $ 16,228,108 $ 40,771,262 $ 10,287,884 $ - $ 67,287.254 Collections Facilities 29,926,895 2,138,183 11,652,030 113,195 43,830,303 Support Facilities 7,967,678 751,162 - 5,952,869 14,671,708 Utility Systems 4,447,420 7,209,612 60,341 - 11,717,372 Liquid Treatment: Ocean Outlet Systems 11,946,210 - - - 11,946,210 Headwords 8,557,091 2,751,145 - - 11,308,236 Primary Treatment 4,896.601 25,768 - - 4,922,369 Secondary Treatment 2,799,334 - - - 2,799,334 Liquid Treatment:Total 28,199.236 2,776.913 - - 30,976,149 Other: Information Management Systems 3,723.073 - 328,456 1,911,831 5,963,360 Equipment 762,225 762,225 762,225 762,225 3,048,900 Process Related Special Projects 1,431.191 403,127 - 51,536 1,885,854 Water Management Projects - 1206,269 - - 1206,269 Strategic&Master Planning 402,746 227,133 130,186 279,577 1,039,643 Others 45,877 96,957 96,957 45,877 285,667 Other:Total 6,365,112 2,695,711 1,317,824 3,051,046 13,429,693 Grand Total $ 93,134,449 $ 56,342,843 $ 23,318,078 $ 9,117,109 $ 181,912,479 A-5 Capital Improvement Expenditure Graphs Unity Systems Liquid Treahnem: $11.71A $31.0101 6A% 17.0% Support Facilities Other: $14.7M $13.4M 6.1 % 7.4% Collections Facilities &I&SIA 24.1 % Solids Handling 8 Digestion $673M 370% Total Fy 2015-16 Capital Improvement Expenditure by Process -$181.9 Million Improved Treatment $56.3M 31.0% Additional Capacity $23.3M 12.8% ReplacemenVRehabilation Support $93.1M $9.11A 51.2% 5.0% Total FV 2015-16 Capital Improvement Expenditure by Type -$181.9 Million A-6 2015-16 Budget Update Summary of Capital Requirement - Collection System Improvement Projects Original Reveal Original Renal Train real 2015-16 201516 "act Protect Project Choi Cacbflow Perfect Number Budget Budget Budget Budget Status Collections Facilities RaittB Brisld Street Sewer Extension 1101 $ 10,n2,000 $ 5,319,W0 Future Santa Ana Trunk Sewer Rehab 117 7,676,000 7,676,000 896,123 1,490,910 Condruing Edinger Boise Chea Trunk lmpr. 11-25 6,030,000 5,159,W0 Future Edinger Pumping Station Upgrade B Rehab 11-33 13,629,000 Beal Future Slater Avenue Pump Station Rahed 11-34 13,701,000 9,729,000 Future SARI Re-Allgomeat 241 11,4W,000 11,anti 488,974 530,848 Condruing SARI Rack Stabilisers Remdval 241A 3,092,000 3,092,000 140,143 90,323 Condruing Taft Branch lmpr. 249 3,143,000 1,928,000 Future Nawhopa-Placentia Trunk Gretle Separation Reel. 265 5,adl 5,sal 470,W6 653,226 Condruing NawfiopePlacentis Trunk Repl. 272 1W,890,OW 104,0g0,000 2,10,377 6,339,297 Condruing Vane Linda Pump Sla0ed Monogrammed 273 4,691 4,158,000 Future Coyle Hills Golf Course Odor Conlml Station 274 0,N5,000 Canceled Lakeview Gretle Separation Pmfed 275 330,Oc0 330,000 4,021 15,8W Carl Than Rose OCTA Grace Sembilan 276 506,000 506,000 9752 R9,420 CarNnuing OrangeMape OCTA Grade Separation 277 3,900,000 Completed Rehab of Megndia Trunk Sewer 3R 19,012,000 Completed Miller-Holder Trunk Sewer Relief 359 17,324,000 Canceled Beach Trunkii lnlertsptor Sewer Relief 360 27,599,000 118,678,000 M0,420 Future Seal Beach Pump Station Rehab 3 62 62,041,000 62,041,000 727,215 1,278,051 Condruing Rehab of Western Regional Sewers 364 112,P22,OW 11242,000 M0,644 642,771 Condruing Rehab cf Balboa Trunk Soviet 547 0,132,000 Completed Bitter Point Force Main Rehab 5d0 45,619,000 Completed Newport Force Meld Rehab 5 60 52,216,000 50,007,W0 19,592,241 17,990,289 Revised Dover Dnw Trunk Sewer Relief 563 14,327,000 14,327,000 144,812 716,918 Carl Crystal Cove Pumping Slatlal Upgrade B Rehab 536 7,017,000 10,514,000 Future Bay Bridge Pump Stallon Rosntha lon 567 74,43tM 51,010,000 634,041 Future District 6 Trunk Sewer Relief 617 7,047,000 7,795,000 4,546,145 4,049,977 Revised Southwest Coda Mesa Thank Sewer 619 14,993,000 14,91 1,133,403 479,304 Carl Gisler-Red Hill Tmnk lmpr. Rai 737 23,W3,000 20,143,000 5,811,623 8,2W,769 Revised Browning Subtmrk Sewer Relief 70 13,439,000 16,952,000 87,M3 Future Van Kati Trunk Sewer Relief 762 433,000 Canceled MaCArIM1ur Pump Station Rehab 763 7,M5,000 0,762,000 63,002 Future A-7 Summary of Capital Requirements Summary of Capital Requirement - Collection System Improvement Projects Original Revlaetl Orlglnal Rono od Total Total 20M6 2015 1, Projed Project Project Cashflow Cashfloa Pmjed Number Budget Budget Budget Budget Status Collations Fadlges Main Strmt Pump Station Ratieb 766 40,747,000 37892,000 FUWre M-FE-MLECT LINE ITEM M-FE-Culled 12,192,000 12,192,006 2,255285 754,631 Revise! Bay Bridge Nnipstation&Form Mains Rehab Study SP-178 Eo0,000 725,000 469725 Revise! Collodion System Mader Planning SP-18I 1,OOO,go Complete! Colledion Boma War Control$ydams Study SP-189 700,000 Caodk! Ukotions FmiliBaa road Budget 781,2O7,Oa 723,450,OO6 dh033,800 0,83g303 A-8 2015-16 Budget Update Summary of Capital Requirement-Treatment System Improvement Projects Carl Ranked Original Ruiud Total Total Donal 201516 Project Project Project Curd. Capital Projesi Number Budge Budget Budget Budget status Headwork. Headwoft Rehab&Expansion at P1 P1-1W 76,476,000 235273.000 1,841 A71 5,907,164 Revised Huderi Erfwnsgn Pt-120 2228W,000 CarcNlad Track Line Nor Contral lit Pt-123 10.826 coo 1170,000 6,520,128 5401.072 Revised Headwork.at P2 132-66 258,724000 Completed moral Tented William 246M3,W0 8.1611638 11,W8,2W Inform lion Management Systems Pnacess SCADA Robb. d120 24,680,000 24,680,000 Futem Programmable Control Panel Upgmdu }125 3,11NOW 311P,w0 1,218,528 1,631 Revised $CAOA System&Network Umbel. 1,2-107 27,839,000 27,039,000 159,718 398,034 Continuing Strategic lnbrmation Architecture SP-03 1,99S000 2000,000 01.921 Revised IntemeVlntmnet Development $P-09 850,000 (1 114.035 147.864 Carwnuing EAM Software&Prowls lin,ementa6m SP-100 6,500,000 7,500,000 1,033,763 995,396 Revised Pi Software Roo SP-103 525,00D 525,000 134,187 140,300 Continuing Software&Computer Equipment Redd.Roo SP-135 5.05D000 6,576,000 72.635 649.874 Revised Lend RewNs MgmL$,man Ponied SP-136 600,000 98,849 Revised Geographic Information System SP-15 4,047,000 4,460,000 499,812 646,906 Revised Fracture Si Link to Pump Stations SP-157 271,000 6.240 Canwlletl Communication Ratio System Real, SP-165 750,W0 119,532 Continuing Intonation Technology Master Ran SP-192 COD COD 261,950 Unocal Information Technology Equipment Upgrade SPA9 4,14,000 4,148,00 603.155 439.179 Continuing Interpreter Management systems moral 79.411 8y105,We 46681029 5,903,1410 Ocean Oudall systems Final Effluent Sampler&Building Area Upgrades J-110 14.064,000 15,913,000 7,874,652 8,391 Cardming Outfall Lard Sedion&OOBS Piping Rehab 1112 20,466,000 192.496 Completed 66 inch Warned Effluent Pipeline Rehab J416 72,517,000 Cancelled Owen Outiall System Rehab J111 4 ,194,COD 76000,WO 1,6IDlet) 3,546,419 Revised Nun Call System Total 155241,000 91,913,W0 10,030,052 11,916,210 Primary Treatment Joint GWRS Microfitmtion Backwash Redirection J-361 381,000 Completed Prmary Scabbed Rehab Project at Pf Pt-114 50.708,000 94,228,000 Future Primary Effluent Pipeline Joint Repairs PI-118 3.24 ,000 17,152 Canwlletl Pi Primary Treatment Upgrades P1-124 11,535000 10,317,000 5,056,355 4,535,914 Revised Primary Clarifiers Foods&lial at Pi Pit 12$649,W4 New A-9 Summary of Capital Requirements Summary of Capital Requirement- Treatment System Improvement Projects Origlnal ReNsetl Original Revised Total Tood 201516 201516 Project Project Project Cashflow Costal Pmjed Number Budges BWget Budget Budget Status Primary Treatment P2 Pdmary Treatment Som Rehab P2d8 43,210,COD 156,029,000 269,303 257,678 Revised Pon,Treatment Area Rehab Study SP-137 WOW 11000,000 126.7/7 Revised PH.q TreatmeinTotal 109,934,000 381,223,0414 81 4.912,369 Proceu Related Speolal Pmjeds Fall"i Imp.at Pt&P2 }123 2,687,000 Completed Safety Improvement at Pl&P2 Y126 UNDID 51,536 Na. Odor Control Master Plan SP-166 1,600000 1,900000 1I7,524 93,127 Revised Conosdan Mgmt SP-681 28,500,COD 2A,518,000 2,008,432 1,431,191 Revised Process Refund Sgcial Projects Totel 32,287,000 28,126,016 2,185,956 1,885,854 Sewntlary Treatment New Secondary Treatment System at PI P1-102 29,771,000 Completed Acfivabal Sludge Aeration Basin Cock Repair at P2 P2-118 6,679,009 174,861 New Oxygen Plant Demolition at P2 SP-129 4,051,000 4,051,000 1,230.617 2,624,473 Corning P1 Secondary Pl Aseet Mgmt.Plan SN183 400,000 29,968 Cancelled P2 Secondary Oxygen Plain Asset Mgmt.Plan SP-185 400,00D 306,433 Cancelled Secondary Treatment Total M,6n,000 10,730,009 1,567,018 ;T99,SA Solids Handling&Digestion Digester Rehab at P1 Pi-100 61000 641902,000 5,174,051 5242,131 Continuing Sludge Dawinerhg&Nor Control at Pl P1-101 171,978,0o0 171,978,000 39,865,919 50,905,349 Corning Digester Ferric ChIctde System Rehab P2-105 4,449A00 4,449000 304.001 54,634 Continuing P2 Solids Storage Addition P2-114 37,604,000 CaocNled Soids Thickening&Processing Upgrades P2A9 48,346,COD 51,150,000 6,430,821 4,6,4,432 Revised P2 Digester Facilities Rehab P2-91-1 47.600 COD 47600.000 91.565 Future Sludge Dewaterm,&Nor Control at P2 P2-92 87,000,000 66500,000 9,625,086 6440,708 Revised P2 Digesters1Boilers Plain Asset Mond.Plan SP-186 ON COD 392,765 Compleed Sol Handling&Digestion Total 49,324,000 4K5",1300 61,M.212 61 $tral&Master Planning MSTUDIES LINE ITEM k45T11DIES 11,803,111 908,533 New Facility-Wide Safely Assessment SP-145-1 930,00D Completed Landscape&Sewdty Master Plan SP-145-0 150000 38,55T Canceled Climate Change Impact Study SP-152 1W,000 400,000 1001000 Form $(ammeter Master Plan SP-167 NO COD 700,000 222,M 131,110 Revised Treatment Plan(Hydraulic Assessment SP-168 NO COD 131,274 Carmdktl Settlement&Liquefaction Study SN177 700,000 700,000 Cancelled A- 10 2015-16 Budget Update Summary of Capital Requirement-Treatment System Improvement Projects Original Revisetl Original Revised Total Total 2015-16 2015 16 Project Project Poppet Cashflow Canteens Project Number Budget Budget Budget Budget status Strategic 8 Master Planning Asset Mgmt. SP3 2 4,808000 54,849 Complete Strategic&Master Planning TOY( ;28g000 12,903,111 1,248R2 1,039,6d8 SupPON Rm liges Operators Center EntrancelBuilding Repairs }122 2,648000 893,484 Cancelled M-FE-PLANT LINE ITEM WIFE Plant 35,228,000 43,325,8O7 10,896,499 5,007,745 Revised Master Small Capital said.(Rehab MSMLAPJ 18,295,000 15,622,000 5,596.858 2,800,792 Revised Title 24 Access Cwrplience B BuiMing Rehab Project P1-115 17,431,000 17,161,000 5,536,705 5,196,624 Reviate South Padmeler Sarmay B Slum Wntr Irl al P1 P1-125 3,005,000 5,27,000 434,361 675,161 Revisetl Site B Seturiry Int at P2 P2-96 1.455000 252,000 890.993 Continuing Pudic Adtlress System Study SP-188 100,000 Cancelled Tunnels Systems Asset Mgmt Plan SP-191 200,000 01,1% Cancelled P2 AdministratNe Building Master Plan SP-193 300,coo 76.882 Canceled Administrative Read0le Implementation Planning SP-194 000,000 800.W0 5,083 Continuing Ongoing Small Capital ReptlRned, SP-34 22,068,000 21,6I2,000 2,209,911 988303 seemed Support Facilities Total 101,558000 101,f09,807 26p18051 10.611,)0I MIRY Systems Canyon Cooling Water System Rapt.Project 1109 11,331,000 11,337,000 50,504 Continuing Corp.Emissions Control Road All 24,958000 2A,950,000 10,736,612 7,209,612 Conaming UPS System Upgrades d121 3,817,000 7,891,00 75A22 Fune Digester Gas Fads.Rehab }124 58,755,000 BBBT0000 Fuwre Natural Gas Pipelines Reel.at P18 P2 J127 1,310,017 39,509 New Power Monitoring B Conird Systems 1333 10.918000 9,488 Completed Eletincal Power Distribution System Carl A98 12,791,000 35,081,000 Future Plant Water System Rehab at Pl P1-112 8,008000 SOBC,000 2,O ',tOa 1,112,536 Continuing Central Generation Rehab at P1 P1-127 35,616,979 New Plant Water System Rehab at P2 P2-101 5,070000 5,070,000 83d,510 870,583 Continuing Boiler System Rehab B Scmbbem H B l Darembon at P2 P2-106 3,095,000 3,095,000 342,592 333,046 Continuing Consolidated Damon.8Uallolmll at P2 P2-110 43.974,000 48984,000 1,102,040 1,9l Continuing SCE Feed Reliability lmpr. P2-111 22,490,000 Crusaded Secondary Area Cade Tray Upgades P2-116 2,154p00 Cancelled Headwor2s Coble Tray Upgrades P2-117 8018000 11,632 Cancelletl Central Generation Rehab at P2 P2-119 41,909,O15 New Dgeeter Gas Postal S"b P18 P2 SP-141 790,000 Completed A- 11 Summary of Capital Requirements Summary of Capital Requirement- Treatment System Improvement Projects Channel R.ia.' Chahar Reeired Toren Total 2015-16 201516 Project Projacl Project Cashfl. Ceshflom Proper Number Budge Budget Budget Budget status WIRY sy9bm9 Uses Water Systems Study SP-146 ON COD Cancelled Plant Air System Master Plan SP-148 300000 340,c00 162,W 120,681 Cordwing Enec0ical System Base Map SP-149 250,000 Cancelled Sidestream Pumping System B Water Charmarma8an Study SP-155 2%C00 250,c0o Unmasked Utility Systems Total 212,251,000 300,00N011 1;36TA52 11,717,3T2 Water Management Projects Effluent Reuse Study SN173 2,80g000 3,250,000 622,530 1,206,269 Releeed Water Management Projects Treat 2,800,000 3,20,000 11,22,530 1,200,2119 I)Ihere Operational Reseddh Protects SP-125 101140,000 10,440,032 1,004.216 102.160 Future Capital Improvement Program Mgmt SENIIXe SN195 300,000 3001000 991999 183,50T Continuing Ulhem Total 10,74,000 10,700,02 1,104,214 285,667 Total Treatment and Disposal Projects 2,000562.000 1,I07,185,030 139,101,100 136,033.276 Total Collections Facilities 761,207,000 T23A50,OOfi 40,033,600 13,830,303 Capin Equipment Purchases 16,,000.000 t0.HB4OM 1,l95.uo 3,048,900 Toren Capital lmprovemend Program Budget f2,TTi,T59,000 32,0µ00 ,020 318g3$3B0 3101,912,Q9 A- 12 2015-16 Budget Update CIP New Project Descriptions Project Name&Number I Safety Improvement at Plant Nos.1 and 2 -J-126 Project Category Process Related Special Projects Project Budget: $1,708.000 Description Planning study SP-145-1 provided a facility-wide assessment of the significant structural safety issues(ladders,handrail,hatches,etc.)and identified over 1600 deficient safety items. About half of the safety items will be addressed by OCSD's Maintenance department while some lower priority items have been assigned to future CIP projects. This project will address the remaining items that are either high priority or cannot be assigned to a future CIP project. Justification OCSD facilities have been constructed with varying compliance with safety codes.While the safety issues created by the configurations may have a low probability of causing injury,the consequence could be high in terms of injury and OCSD liability.The cost to mitigate these structural issues after construction is high. Dealing with these issues on a case-by-case basis is not cost effective.OCSD would benefit greatly by having consistent facilities-wide structural safety standards. The project's construction cost is$835,492. The impacts to operational budgets have not yet been determined. Project Name&Number I Natural Gas Pipelines Replacement at Plant Nos. 1 and 2 -J-127 Project Category Utility Systems Project Budget: $1,310,000 Description This project will rehabilitate the natural gas pipelines at Plants No 1 and 2.This includes the replacement of aging metallic pipelines and risers and upgrades to the cathodic protection systems. Justification Recent condition assessments of the natural gas piping have revealed that some of the metallic piping and risers have reached the end of their useful life and require replacement. The cathodic protection systems will also be upgraded to provide corrosion control of the buried metallic piping. This project will ensure safe,reliable operations of the natural gas systems. The project's construction cost is$640,918. The impacts to operational budgets have not yet been determined. A- 13 CIP New Project Descriptions Project Name&Number I Master Planning Special Projects-M-STUDIES Project Category Strategic&Master Planning Project Budget: $11,803,000 Description This budget provides funds for planning phase studies. This project acts as an annual budget placeholder for planning studies that have been identified by the Asset Management Program as necessary in order to assess the condition and capacity of the District's existing assets and systems. Justification Planning studies provide comprehensive CHIP planning for the District to meet anticipated capacity needs, manage risks associated with asset or system failure,take advantage of technology advancements,comply with regulatory changes,and meet strategic goals. This project will not have an impact on operational budgets. Project Name&Number Primary Clarifiers Replacements and Improvements at Plant No.1 -Pl- 126 Project Category Primary Treatment Project Budget: $122,649,000 Description This project will rehabilitate or replace the Plant No. 1 Primary Clarifiers 3,4,&5 System which includes all primary influent and effluent lines,distribution boxes,junction boxes,the Primary Effluent Pump Station,structural,mechanical,and electrical systems affiliated with Primary Clanfers 3,4,&5.This project will demolish Primary Clarifiers 1U. Justification The project is needed due to the age and condition of the Primary Clarifiers(PCs)3,4,&5 System. PCs 3&4 were constructed in 1956 and are the oldest primary clarifiers at Plant No. 1.They share a common sludge and scum pumping facility located between them. PC 5 was constructed in 1963. Many of the PC 3-5 System components are showing significant deterioration.To continue to operate the PC 3-5 system for the next 50 years will require the entire system be rehabilitated or replaced. PCs 1-2 were constructed in 1986 to replace the two original clanfers.These primary clarifiers are currently used only during extreme flow events.They share a common sludge and scum pumping facility at the southwest end of PCs 1-2 that also serves PC S. PCs 1-2 shall be demolished to make space for other future processes. The project's construction cost is$73,640,660. The impacts to operational budgets have not yet been determined. A- 14 2015-16 Budget Update Project Name 8.Number I Central Generation Rehabilitation at Plant No. 1 -Pl-127 Project Category Utility Systems Project Budget: $35,647,000 Description This project will rehabilitate the Can Gen facility equipment including the lube oil system,the engine jacket water loop,steam loop,hot water loop,wastelsupplement heat system, chilled water loop, cooling water loop, HVAC system,starting air and instrumentation air systems,exhaust gas monitoring system,miscellaneous building improvements,and related electrical and instrumentation works. Justification Can Gen equipment had been rebuilt through regular maintenance program,or by CIP projects working in the area.There has not been a project just focusing on the condition assessment and rehabilitation of overall Can Gen facility equipment, particularly the equipment that are too large to be rebuilt through regular maintenance. The project's construction cost is$19,166,563. The impacts to operational budgets have not yet been determined. Project Name 8.Number I Activated Sludge Aeration Basin Deck Repair at Plant No.2 -P2-119 Project Category Secondary Treatment Project Budget: $6,679,000 Description The purpose of the project is to rehabilitate the activated sludge aeration basins concrete roof slab in order to increase the life of its critical assets, improve services of other areas in the plant,and meet level of service goals. Justification The aeration basins have incurred damage to the concrete mortar exposing the aggregate and with many thumbnail-size cracks,many of which go through the entire slab,potentially exposing the rather to corrosion. The project's construction cost is$3,291,298. The impacts to operational budgets have not yet been determined. A- 15 CIP New Project Descriptions Project Name&Number I Central Generation Rehabilitation at Plant No.2 -P2-119 Project Category Utility Systems Project Budget: $41,909,000 Description This project will rehabilitate the Plant 2 Can Gen facility equipment including the lube oil system, the engine jacket water loop,steam loop, hot water loop, cooling water loop, HVAC system,starting air and instrumentation air systems,exhaust gas monitoring system, miscellaneous building improvements,and related electrical and instrumentation works. Justification Can Gen equipment had been rebuilt through regular maintenance program,or by CIP projects working in the area.There has not been a projectjust focusing on the condition assessment and rehabilitation of overall Can Gen facility equipment, particularly the equipment that are too large to be rebuilt through regular maintenance. The project's construction cost is$25,162,867. The impacts to operational budgets have not yet been determined. A- 16 FY 2015-16 Budget Update This page was intentionally left blank A- 17 Capital Equipment Budget Summary Capital Equipment Budget 2015-16 Trucks & Other Machine Comm Vehicles Mobile Eq Eq &Tools Equipment Division 09410000 09410001 09410002 09410003 Information Technology $ - $ - $ - $ - Risk Management - - - - Fleet Services 773,700 472,400 - - Odor and Corrosion Control - - - - Plant No. 1 Operations - - - - Plant No. 1 Maintenance - - - - Plant No. 2 Maintenance - - - - Environmental Laboratory&Ocean Monitoring - - - - Total Proposed Capital Equipment $ 773,700 $472,400 $ - $ - A- 1a FY 2015-16 Budget Update Capital Equipment Budget 2015-16 Instr/Test Safety& Office Fix& Computer 2015-16 Equipment Traffic Eq Eq Equipment Proposed Division 09410004 09410005 09410006 09410007 Budget Information Technology $ - $ - $ - $ 377,000 $ 377,000 Risk Management 14,600 - - - 14,600 Fleet Services - - - - 1,246,100 Odor and Corrosion Control 38,500 - - - 38,500 Plant No. 1 Operations 15,200 - - - 15,200 Plant No. l Maintenance 614,100 - - - 614,100 Plant No.2 Maintenance 211,600 - - - 211,600 Environmental Laboratory&Ocean Monitoring 531,800 - - - 531,800 Total Proposed Capital Equipment $1,425,800 $ $ $ 377,000 $ 3,048,900 A- 19 Capital Equipment Budget Summary Capital Equipment Budget Detail Proposed Equip. Division Equipment Type Budget 250 - I nformation Technology ICS Network Intrusion Detection System for Div 830 80,000 Insurance Certificate Tracking Database for Div 260 $ 30,000 ION Power Meter and W ebreach Licenses for Div 830 37,000 Plant 1 SCADA Proxy Servers and Licenses for Div 830 64,000 Plant 2 SCADA Proxy Servers and Licenses for Div 840 64,000 Pump Station SCADA Proxy Servers&Licenses for Div 830 64,000 Risk Management Database for Div 260 30,000 Scanner 8,000 Total 377,000 260 - Risk Management Two(2) Hearing Test Booths 14,600 Total 14,600 322 - Fleet Services 4-Passenger Electric Vehicle- Replace V#0533 11,900 Cargo Cart- Replace C#1039 for Div 880 12,200 Four(4) Cargo Carts- Replace C#0812, 0861, 0862&0866 for Div 870 56,900 Light Duty Service Truck- Replace V#0479 for Div 830 38,400 Light Duty Service Truck- Replace V#0482 for Div 330 38,400 Light Duty Service Truck- Replace V#0486 for Div 760 38,400 Light Duty Service Truck- Replace V#0489 for Div 230 38,400 Light Duty Service Truck- Replace V#0490 for Div 250 38,400 Light Duty Service Trucks- Replace V#0480&0488 for Div 870 76,800 Light Duty Service Trucks- Replace V#0485&0491 for Div 870&880 76,800 Light Duty Service Trucks- Replace V#0487&0492 76,800 Light Duty Truck- Replace V#0381 for Div 870 34,600 Light Duty Truck- Replace V#0439 for Div 760 34,800 Light Utility Truck(F-250)- Replace V#0398 for Div 870 44,000 Medium Duty Weld Truck- Replace V#0372 for Div 870 57,000 Modern Pull Rig- Replace V#0386 for Div 343 140,000 NEW 500 Gallon Water Tank/Trailer 7,900 NEW Light Duty Truck for Div 880 29,000 NEW Three(3) Enclosed Quiet Pumps for Div 343 375,000 Towable Air Compressor- Replace E#0833 20,400 Total 1,246,100 342 - Odor and Corrosion Control Methane Gas Detector 12,000 Olfactometer Calibrator 26,500 Total 38,500 830 - Plant No. 1 Ooeratons Two(2)TSS Meters and Wipers 15,200 Total 15,200 A-20 FY 2015-16 Budget Update Capital Equipment Budget Detail Proposed Equip. Division Equipment Type Budget 870 - Plant No. 1 Maintenance CSI Machinery Health Analyzer 40,000 Eleven(11) 1-12S Wet Gas Analyzers 300,000 Man Basket and Suspension Bridle 9,000 One(1) Fluke Process Calibrator 7,300 Pipe Positioner 9,300 PLC Communication Nelwark Equipment 24,800 TruTech Refrigeration Trainer Unit 12,900 Two(2)Circuit Breaker Remote Racking Units 81,500 Two(2) PLC Test Units 50,300 Windrock Machinery Maintenance Analyzer 79,000 Total 614,100 880 - Plant No. 2 Maintenance Breaker Timing Tester 13,000 Low Voltage Pickup/Excitation Field Simulator 12,000 One(1) PLC Test Unit 25,100 PLC Communication Netwark Equipment 24,700 Transformer Ohm Meter 18,400 Two(2)Circuit Breaker Renate Racking Units 81,500 Two(2) DC Hi Pot Testers 22,100 Two(2) Fluke Process Calibrators 14,800 Total 211,600 890 - EmAronmental Laboratory &Ocean Monitoring Accelerated Solvent Extractor 60,000 Dissolved Oxygen Sensor 5,500 Electromechanical Winch 85,700 Gas ChromatographlMass Spectrometry(GCMS) 85,400 Hydrogen Generator 18,700 Telemetry Oceanographic Mooring 126,000 Three(3)Acoustic Doppler Current Profilers 76,200 Total and Carbonaceous BOD Analyzer 60,000 Two(2)Acoustic Releases 14,300 Total 531,800 Total Proposed 2015-16 CORF Equipment Budget $ 3,048,900 A-21 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$40 million per occurrence with an annual aggregate limit and with a self-insured retention of$500,000. • 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$250,000. The District is partially self-insured for earthquake, but does carry$25 million in coverage on seven key structures with a$5 million deductible. The District also increased its sublimit for builders risk under the property insurance programs from$25 million to $50 million to ensure upcoming construction projects are adequately covered. • In order to maintain the reserve balance of$55 million for the General Liability and Property program, appropriations for in-lieu premiums charged to operating divisions are recommended at$496,000 for FY 2015-16. Workers'Compensation • The District's current excess workers'compensation coverage has unlimited statutory coverage per occurrence and $4 million employer's liability per employee with a self-insured retention of$1 million 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$1,478,700 for FY 2015-16. FY 2015-16 Self-Insurance Program Budget General Liability Workers' Total & Property Compensation Self-Insurance DESCRIPTION OR ACCOUNT TITLE Program Program Program Beginning Reserves $ 56,141,700 $ 1,471,300 $ 57,613,000 Revenues In-Lieu Premiums 496,000 1,478,700 1,974,700 Miscellaneous Other Revenue - 5,000 5,000 Sermce Department Allocation 20,000 20,000 Total Revenues 516,000 1,483,700 1,999,700 Expenses Benefits/Claims 75,000 525,000 600,000 Contractual Sermces 200 - 200 Legal Services 50,000 130,000 180,000 Professional Services 2,500 75,000 77,500 Policy Premium Expense 1,530,000 225,000 1,755,000 Total Expenses 1,657,700 955,000 2,612,700 Excess Revenue (Expenses) (1,141,700) 528,700 (613,000) Ending Reserves $ 55,000,000 $ 2,000,000 $ 57,000,000 A- 22 2015-16 Budget Update Historical Staffing Summary Authorized Authorized Authorized Authorized Proposed Department and Division Name FTEs FTEs FTEs FTEs FTEs 2011-12 2012-13 2013-14 2014-15 2015-16 General Manager's Office General Management Administration 3.00 3.00 4.00 5.00 6.00 Board Services 2.00 3.00 5.00 5.00 4.00 Public Affairs 8.00 6.00 3.00 4.00 5.00 Department Subtotal' 13.00 12.00 12.00 14.00 15.00 Human Resources Department Human Resources 17.00 16.00 18.00 16.00 16.00 Risk Management 11.00 Department Subtotal 17.00 16.00 18.00 16.00 27.00 Administrative Services Department Administrative Services 5.00 3.00 3.00 4.00 3.00 Financial Management 17.00 18.00 18.00 18.00 19.00 Contracts, Purchasing & Materials Management 30.75 29.75 31.00 32.00 32.00 Information Technology 45.00 48.00 47.00 45.00 44.00 Risk Management 13.00 12.00 11.00 12.00 Department Subtotal 110.75 110.75 110.00 111.00 98.00 Facilities Support Services Department Facilities Support Sernces Administration 3.75 3.00 3.00 3.00 4.00 Facilities Support 18.00 19.00 3.00 3.00 - Equipment Rebuild - - 8.00 8.00 - Fleet Services - - 8.00 8.00 9.00 Facilities Engineering & Repair Services 13.00 13.00 11.00 9.00 5.00 Collections 49.00 46.00 - - - NPDES Source Inspection - - 16.00 16.00 16.00 Odor and Corrosion Control - - 6.00 6.00 6.00 Collection Facilities Operations & Maintenance - - 23.00 23.00 23.00 Department Subtotal 83.75 1 81.001 78.00 76.00 63.00 Engineering Department Engineering Administration 2.00 2.00 2.00 2.00 Zoo Planning 12.00 15.00 18.00 17.00 15.00 Project Management Office 17.00 19.00 20.00 20.00 20.00 Engineering & Construction 58.50 57.00 51.00 53.00 59.00 Asset Management 6.00 - - - - Environmental Compliance 33.00 32.00 32.00 31.00 31.00 Department Subtotal 128.50 125.00 123.00 123.00 127.00 Operations& Maintenance Department Operations & Maintenance Administration 2.75 3.00 3.00 2.00 2.00 Plant No. 1 Operations 52.75 54.00 54.00 54.00 69.00 Plant No. 2 Operations 47.00 47.00 48.00 47.00 55.00 Building, Grounds, and Mechanical Maintenance 62.00 61.00 62.00 65.00 - Instrumentation & Electrical Maintenance 75.00 75.00 75.00 75.00 - Plant No. 1 Maintenance - - - - 81.00 Plant No. 2 Maintenance - - - - 46.00 Environmental Laboratory & Ocean Monitoring 41.50 41.00 41.00 41.00 41.00 Department Subtotal 281.00 281.00 283.00 284.00 294.00 Grand Total -All Departments* 1 634.00 625.75 624.00 624.00 1 624.00 A-23 Historical Staffing Detail Authorized Authorized Authorized Authorized Proposed FTEs FTEs FTEs FTEs FTEs DhAslon&Position 2011-12 2012-13 2013-14 2014-15 2015-16 General Manager's Office 110 General Management Administration General Manager 1.00 1.00 1.00 1.00 1.00 Assistant General Manager 1.00 1.00 1.00 1= 1.00 Public Affairs Manager - - - 1.00 1.00 Principal Staff Analyst - - 1.00 1.00 - Records Management Specialist - - - - 1.00 Senior Staff Analyst - - - - 1.00 Secretaryto the General Manager 1.00 1.00 1 1.00 1.00 1 1.00 Total General Management Administration' 3.00 3.00 4.00 5.00 6.00 120 Board Services Clerk of the Board 1.00 1.00 1.00 1.00 1.00 Records Management Specialist - - 1.00 1.00 - Deputy Clerk of the Board - - - - 1.00 Associate Clerk ofthe Board II 1.00 - - - - AdministrativeAssistant - 1.00 1.00 1.00 - Program Assistant 1.00 2.00 2.00 2.00 Total Board Services 2.00 3.00 6.00 5.00 4.00 140 Public Affairs Public Affairs Manager 1.00 1.00 - - - Principal Public Affairs Specialist 2.00 2.00 - 1.00 1.00 Senior Public Affairs Specialist 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 L00 1.00 Program Assistant - 1.00 - - - OMce Assistant 2.00 Total Public Affairs 8.00 6.00 3.00 4.00 5.00 Total Office of the General Manager 13.00 12.00 12.00 14.00 15.00 Human Resources Department 160 Human Resources Director of Human Resources 1.00 1.00 1.00 1.00 1.00 Human Resources Manager - 1.00 1.00 1.00 1.00 Human Resources Supervisor 1.00 - - - 1.00 Principal Human Resources Analyst 1.00 1.00 2.00 2.00 3.00 Senior Human Resources Analyst 6.00 5.00 4.00 5.00 4.00 CMMS Technician ll 1.00 - - - - Associate Engineer 1.00 - - - - Human Resources Analyst 3.00 5.00 5.00 4.00 4.00 Executive Assistant - 1.00 1.00 - - Human Resources Assistant 2.00 1.00 2.00 1.00 1.00 Program Assistant 1.00 1.00 2.00 2.00 1.00 Total Human Resources 17.00 16.00 18.00 16.00 16.00 161 Risk Management Safety&Health SuperNsor - - - - 1.00 Principal Financial Analyst - - - - 1.00 Safey&Health Specialist - - - - 1.00 Secunty&Emergency Planning Specialist - - - - 1.00 Occupational Health Nurse - - - - 1.00 Senior Safey&Health Representative - - - - 2.00 Safey&Health Representative - - - - 3.00 Administrative Assistant 1.00 Total Risk Management 11.00 Total Human Resources Department 17.00 16.00 18.00 18.00 2T.00 A-24 2015-16 Budget Update Authorlxed Auth.,a.d Aumotlzed Authoribed Propoaetl FTEs FTEs FTE, FTEa FTEs Division&Position 2011-12 2012-13 2013-14 2014-15 2015-16 Mministrative Services Department 210 Administrative SeMees Directorof Finance&Admimsitmi SeMces/Treasurer 1.00 1.00 1.00 1.00 1.00 Principal Financial Analyst 1.00 1.00 1.00 1.00 1.00 Principal Staff Analyst 1.00 - - - - Principal Environmental Specialist 1.00 - - - - Executive Assistant 1.00 1.00 1.00 L00 1.00 Accounting Assistant II 1.00 Total Finance Mm inistration 5.00 3.00 3.00 4.00 3.00 220 Financial Management Controller 1.00 1.00 1.00 1.00 1.00 Accounting Manager 1.00 - - - - Accounting Supervisor 2.00 3.00 3.00 3.00 3.00 Principal Accountant 3.00 3.00 3.00 3.00 3.00 Senior Accountant 1.00 1.00 1.00 1.00 1.00 Senior Staff Analyst - - - 1.00 Accountant/StaRMalyst 2.00 4.00 4.00 4.00 3.00 Payroll Technician 2.00 2.00 2.00 2.00 2.00 Accounting Assistant ll 5.00 4.00 4.00 4.00 5.00 Total Financial Management 17.00 18.00 18.00 18.00 19.00 230 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 2.15 2.75 3.00 3.00 3.00 Principal Buyer - - 1.00 1.00 1.00 Planner/Scheduler 1.00 - - - - Contracts Mministralor 3.00 3.00 3.00 3.00 3.00 Senior Buyer 2.00 2.00 1.00 1.00 1.00 Buyer 2.00 2.00 2.00 3.00 3.00 Contracts/Pumhasing Assistant 5.00 5.00 5.00 5.00 5.00 Lead Storekeeper 2.00 2.00 2.00 2.00 2.00 Senior Storekeeper 4.00 3.00 3.00 3.00 3.00 Storekeeper 4.00 5.00 5.00 5.00 5.00 Total Contracts,Purchasing&Materials Management 30.76 29.76 31.00 32.00 32.00 250 Information Technology Information Technology Systems&Operations Manager 1.00 L00 1.00 L00 1.00 Information Technology Manager 2.00 2.00 2.00 1.00 1.00 Information Technology Supervisor 1.00 1.00 1.00 2.00 2.00 Principal Information Technology Analyst 6.00 6.00 6.00 6.00 6.00 Principal Public Maim Specialist - - 1.00 - - Senior Information TechnologyAnalyst 10.00 10.00 9.00 9.00 9.00 Information Technology Analyst 111 2.00 3.00 3.00 4.00 6.00 Engineering Associate 1.00 1.00 1.00 - - Recants Management Specialist 1.00 1.00 - - - SenlorStaffMalyst - - - 1.00 - CMMSTechnicianll 5.00 - - - - Date Management Technician 11 - 7.00 7.00 7.00 7.00 Information Technology Analyst ll 3.00 5.00 6.00 5.00 3.00 Engineering Data Management Technician 11 3.00 - - - - CMMS Technician 1 1.00 - - - - Date Management Technician I - 6.00 5.00 4.00 4.00 Information Technology Malysl l 2.00 - - - - Engineering Assistant ll 1.00 - - - - StattMalyat 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Engineering Assistant l 1.00 - - - - Information Technology Technician 11 2.00 1.00 1.00 1.00 1.00 Information Technology Technician l - 1.00 1.00 1.00 1.00 Program Assistant 1.00 1.00 1.00 1.00 1.00 Total Information Technology 45.00 48.00 4].02 46.00 44.00 A-25 Historical Staffing Detail Authoraed Authorized Authored Authorized Proposed FTB FTEs FTEs FTEs FTEs Didsion&Position 2011-12 2012-13 2013-14 2014-15 2015-16 260 Risk Management Risk Manager 1.00 1.00 - 1.00 - Safety&Health Supervisor 1.00 1.00 1.00 1.00 - PrincipalFinancialAnalyst 1.00 1.00 1.00 1.00 - Safety&Health Specialist 2.00 2.00 2.00 1.00 - Security&Emergency Planning Specialist 1.00 1.00 1.00 1.00 - Information Technology Analyst lll 1.00 - - - - Occupational Health Nurse 1.00 1.00 1.00 1.00 - Senior Safety&Health Representative 1.00 1.00 1.00 2.00 - Safety&Health Representative 3.00 3.00 3.00 3.00 - Administrative Assistant 1.00 1.00 1 1.00 1.00 - Total Risk Management 13.00 12.00 1 11.00 12.00 Total Administrative Services Department 110.75 110.75 110.00 111.00 98.00 Facilities Support Services Department 310 Facilities Support Services Administration Director of Facilities Support 1.00 1.00 1.00 1.00 1.00 Principal Financial Analyst 1.00 1.00 1.00 1.00 1.00 Senior Staff Analyst - - - - 1.00 Executive Assistant 1.00 1.00 1.00 1.00 1.00 Intern 0.75 Total Facilities Support Services Administration 3.75 3.00 3.00 3.00 4.00 320 Facilities Support Facilities Manager 1.00 1.00 1.00 1.00 - Maintenance Supervtsor 2.00 2.00 - - - SeniorPublicAffairsSpecialist - 1.00 - - - SeniorStaffAnalyst - - 1.00 1.00 - Lead Mechanic 1.00 1.00 - - - Machinist 1.00 1.00 - - - Automotive/Heavy Equipment Technician 3.00 3.00 - -Equipment Operator 2.00 2.00 - - - SeniorMechanic 3.00 3.00 - - - Welder/Fabricator 3.00 3.00 - - - Automotive/Heavy Equipment Assistant 1.00 1.00 - - - Office Assistant 1.00 1.00 1 1.00 1.00 - TotalEquipmenl/Rebuild 18.00 19.00 3.00 3.00 - 321 Equipment Rebuild(formerly part of division 320) Maintenance Supervisor - - 1.00 1.00 - Machinist - - 1.00 1.00 Senior Mechanic - - 3.00 3.00 - Welder/Fabricator - - 3.00 3.00 - TotalEquipmenl/Rebuild - - 8.00 8.00 - 322 Rest Services(formerly part of division 320) Maintenance SuperAsor - - 1.00 1.00 1.00 Lead Mechanic - - 1.00 1.00 1.00 Automotive/Heavy Equipment Technician - - 3.00 3.00 3.00 Mobile Crane Operator - - 2.00 2.00 2.00 Automotive/Heavy Equipment Assistant - - 1.00 1.00 1.00 Office Assistant - - - - 1.00 Total Fleet Services - - 8.00 8.00 9.00 A-26 2015-16 Budget Update Authorized Authorized Authorzed Authorized Proposed FTEs FrEa FTEs FTEs FrEs DiNsion&Position 2011-12 2012-13 2013-14 2014-15 2015-16 330 Facilities Engineering&Repair Services Engineering Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 1.00 1.00 - - - Senior Engineer 1.00 1.00 1.00 1.00 1.00 Engineer 2.00 2.00 2.00 2.00 - Materials Control Supervisor 1.00 1.00 - - - Associate Engineer - 1.00 3.00 3.00 2.00 Maintenance Specialist 4.00 4.00 2.00 - - Senior Engineering Associate 1.00 - - -Engineering Associate 1.00 1.00 1.00 1.00 - Administrative Assistant 1.00 1.00 1 1.00 1.00 1.00 Total Facilities Engineering 13.00 13.00 11.00 9.00 5.00 340 Collection Facilities Source Control Manager 1.00 - - - - Engineering Superdsor 3.00 3.00 - - - MaintenanceSupernsor 2.00 1.00 - - - Associate Engineer - 1.00 - - - Associate Engineer 111 1.00 - - - - Principal Environmental Specialist 1.00 1.00 - - - SeniorEONronmentalSpecislist 3.00 3.00 - - - SourceControllnspectorll 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 - - - EnNronmentalTechnician 4.00 4.00 - - - Mechanic 8.00 8.00 - - - Intern 0.50 Total Collection Facilities 49.00 46.00 341 NPDES Source Inspection Source Control Supervisor - - 1.00 1.00 1.00 Principal Environmental Specialist - - 1.00 1.00 1.00 Senior Environmental Specialist - - 1.00 1.00 - Lead Source Control Inspector - - - - 1.00 Source Control Inspector ll - - 9.00 8.00 7.00 Source Control Inspector l - - - 1.00 2.00 Administrative Assistant - - 1.00 1.00 1.00 Environmental Technician 3.00 3.00 3.00 Total NPDES Source Inspection 16.00 16.00 16.00 342 Odor and Corrosion Control Engineering Supervisor - - 1.00 1.00 1.00 Associate Engineer - - 1.00 1.00 1.00 Senior Environmental Specialist - - 2.00 2.00 2.00 Engineering Assistant l - - 1.00 1.00 1.00 Environmental Technician - 1.00 1.00 1.00 Total Odor&Corrosion Control 6.00 6.00 6.00 343 Collection Facilities Operations&Maintenance Maintenance Supervisor - - 2.00 2.00 2.00 Lead Mechanic - - 5.00 5.00 5.00 Senior Mechanic - - 8.00 8.00 8.00 Mechanic 8.00 8.00 8.00 Total Collection Facilities O&M 23.00 23.00 23.00 Total Facilities Support Services Department 33.75 31.00 73.00 75.00 63.00 A-27 Historical Staffing Detail Authorized Authorized Authorized Authorized Proposed FTB FTEs FTrs FTEs FTEs Division&Position 2011-12 2012-13 2013-14 2014-15 2015-16 Engineering Department 710 Engineering Administration Assistant General Manager 1.00 1.00 - - - Director ofEngineering - - 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 1.00 Total Engineering Administration 2.00 2.00 2.00 2.00 2.00 740 Planning Engineering Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 1.00 1.00 1.00 1.00 1.00 Senior Engineer 4.00 5.00 4.00 4.00 3.00 Engineer 1.00 3.00 5.00 4.00 4.00 Principal StatFAnalyst - - 1.00 1.00 1.00 Utilities Management Specialist - 1.00 - - - Associate Engineer - 1.00 2.00 3.00 2.00 Associate Engineer 111 1.00 - - - - Principal Emironmental Specialist - - 1.00 - - Senior Engineering Associate 1.00 1.00 - -Assistant Engineer - 1.00 1.00 - - AssociateEngineerll 1.00 - - -Engineering Associate 1.00 - - 1.00 1.00 Senior Staff Analyst - - 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1 1.00 1.00 1 1.00 Total Planning 12.00 15.00 18.00 17.00 15.00 750 Project Management Office Engineering Manager 1.00 1.00 1.00 1.00 1.00 CIP Project Management Supervisor 1.00 1.00 - - - Engineering Supervisor - - 1.00 1.00 1.00 Program Controls Supervisor 1.00 - - - - Project Controls Supernsor - - 1.00 - - CapitallmprovementProgramProjectManager 6.00 8.00 8.00 8.00 7.00 Senior Engineer - - - 1.00 Principal Project Controls Analyst 1.00 1.00 1.00 1.00 1.00 Engineer - - 1.00 1.00 1.00 Principal Staff Analyst 2.00 2.00 1.00 2.00 2.00 Cost Estimator 1.00 1.00 1.00 1.00 1.00 Planner/Scheduler 1.00 1.00 1.00 1.00 1.00 Senior Staff Analyst 1.00 1.00 2.00 1.00 1.00 Engineering Assistant ll 1.00 1.00 - 1.00 1.00 Administrative Assistant - 1.00 1.00 1.00 1.00 Office Assistant 1.00 1.00 1.00 1.00 1.00 Total Project Management Once 17.00 18.00 20.00 20.00 20.00 A-28 2015-16 Budget Update Authorized Authorized Authorized Authored Proposed FTEs FTEs FTEs FTE: FTEs Division&Position 2011-12 2012-13 2013-14 2014-15 2015-16 760 Engineering&Construction Engineering Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 3.00 3.00 3.00 4.00 4.00 Senior Construction Inspection Supervisor 1.00 1.00 1.00 1.00 1.00 Senior Engineer 8.00 8.00 8.00 8.00 9.00 Construction Inspection Supervisor 2.00 1.00 1.00 1.00 1.00 Engineer 15.00 14.00 10.00 10.00 13.00 Associate Engineer - 3.00 2.00 1.00 3.00 Associate Engineer 111 2.00 - - - - Senior Engineering Associate 1.00 1.00 - - - SeniorConstructionlnspector 7.00 7.00 7.00 7.00 7.00 Assistant Engineer - 1.00 1.00 2.00 2.00 Associate Engineer ll 1.00 - - - - Senior StaffAnalyst - 1.00 - 1.00 1.00 Engineering Associate - - - - 1.00 Construction Inspector 9.00 9.00 9.00 9.00 9.00 Associate Engineerl 1.00 - - - - Engineering Assistantll 2.00 3.00 3.00 3.00 3.00 Public Affairs Specialist 1.00 - - - - StaffAnalyst - 1.00 1.00 1.00 1.00 Administrative Assistant 3.00 2.00 2.00 2.00 2.00 Engineering Assistant 1 1.00 1.00 1.00 1.00 1.00 Program Assistant - - 1.00 1.00 - Intern 0.50 Total Engineering&Construction 58.50 57.00 51.00 53.00 59.00 780 Asset Management Engineering Manager 1.00 - - - - Senior Engineer 3.00 - - - - Engineer 1.00 - - - - UtilitiesManagementSpecialist 1.00 - - - - TomlAssetManagemenl 6.00 - - - - 790 Environmental Compliance Environmental Comp1&Reg Affairs Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 2.00 2.00 2.00 2.00 2.00 Environmental Supervisor 1.00 1.00 1.00 1.00 1.00 Public Affairs Manager - - 1.00 - - Senior Scientist 1.00 1.00 1.00 1.00 1.00 Engineer 6.00 6.00 6.00 6.00 6.00 Regulatory Specialist 2.00 2.00 3.00 3.00 3.00 Associate Engineer - 4.00 4.00 4.00 4.00 Associate Engineer 111 4.00 - - - Principal Emironmental Specialist 2.50 3.50 2.50 2.50 2.50 Principal Laboratory Analyst 1.00 1.00 - - - SeniorEnvironmentalSpecialist 4.50 4.50 4.50 4.50 4.50 Administrative Assistant 2.00 1.00 1.00 1.00 1.00 Program Assistant 4.00 4.00 4.00 4.00 4.00 Office Assistant 1.00 1.00 1.00 1.00 1.00 Intern 1.00 - - - - Total Environmental Compliance 33.00 32.00 32.00 31.00 31.60 Total Engineering Department 128.50 1 125.00 1 123.00 1 123.00 127.00 A-29 Historical Staffing Detail Authorized Authorized Authorized Authorized Proposed FrEs FTFs FfEs Frr. FTEs Division&Position 2011-12 2012-13 2013-14 2014-15 2015-16 Operations&Maintenance Department 810 Operations&Maintenance Administration Directorof Opemtions&Maintenance 1.00 1.00 1.00 1.00 1.00 Operations Manager - - 1.00 - - Senior Financial Analyst - 1.00 - - - Senior Staff Analyst - - 1.00 1.00 1.00 Executive Assistant 1.00 1.00 - - - Intern 0.75 - - I - - Total Operations&Maintenance Administration 2.75 3.00 3.00 2.00 2.00 830 Plant No.1 Operations Engineering Manager - - 1.00 - - Operations Manager 1.00 1.00 - 1.00 1.00 Engineering Supervisor 1.00 1.00 2.00 Chief Plant Operator 1.00 1.00 1.00 1.00 1.00 Senior Engineer 2.00 2.00 2.00 2.00 4.00 Principal Information Technology Analyst - - - - 3.00 Engineer 2.00 2.00 2.00 2.00 3.00 Operations Supenisor 7.00 6.00 6.00 6.00 6.00 Senior Information Technology Analyst - - - - 3.00 Maintenance Supervsor - - - - 1.00 Scientist 1.00 1.00 1.00 1.00 1.00 Associate Engineer - - - - 1.00 Information Technology Analyst 111 - - - - 1.00 Assistant Engineer - 2.00 2.00 2.00 1.00 Associate Engineer ll 1.00 - - - Senior Environmental Specialist 1.00 1.00 1.00 1.00 1.00 Information Technology Analyst ll - - - - 1.00 Lead Plant Operator 5.00 5.00 5.00 5.00 3.00 Lead Power Plant Operator - - - - 1.00 Power Plant Operator ll - - - - 4.00 Senior Plant Operator 15.00 15.00 15.00 14.00 14.00 Administrative Assistant 0.75 - 1.00 1.00 1.00 Plan/Operator 14.00 15.00 14.00 15.00 14.00 Control Center Technician 2.00 2.00 2.00 2.00 2.00 Program Assistant - 1.00 - - - TotalPlantNo.lOperations 52.75 54.00 54.00 54.00 69.00 840 Plant No.2 Operations Chief Plant Operator 1.00 1.00 1.00 1.00 1.00 Operations Supervisor 7.00 6.00 6.00 6.00 6.00 Lead Plant Operator 5.00 5.00 5.00 5.00 6.00 Power Plant Operator ll - - - - 4.00 Senior Plant Operator 12.00 14.00 14.00 14.00 15.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Plant Operator 20.00 19.00 20.00 19.00 20.00 Control Center Technician 1.00 1.00 1.00 1.00 - Program Assistant - 1.00 Total Plant No.2 Operations 47.00 47.00 48.00 47.00 54.00 A-30 2015-16 Budget Update Authorized Authorized Authorized Authorized Proposed FTEs FTEs FTB FTEs FTEs Division&Position 2011-12 2012-13 2013-14 2014-15 2015-16 850 Building,Grounds,and Mechanical Maintenance Maintenance Manager 1.00 1.00 1.00 1.00 - Senior Engineer - - - 1.00 - Engineer - - 1.00 - - MaintenanceSupeMsor 6.00 6.00 6.00 6.00 - Associate Engineer - 1.00 1.00 1.00 - Associate Engineer 111 1.00 - - -Maintenance Specialist 4.00 4.00 5.00 8.00 - SeniorPublicAffairsSpecialist 1.00 - - - - ReliabilityMaintenanceTechnician 2.00 4.00 4.00 4.00 - Lead Mechanic 5.00 4.00 4.00 4.00 - AdministrativeAssistant 1.00 1.00 1.00 1.00 - SeniorMechanic 30.00 30.00 29.00 29.00 - Lead Facilities Worker 2.00 1.00 1.00 1.00 - Facilities Worker/Builder 3.00 3.00 3.00 3.00 - Facilities Worker/Painter 2.00 2.00 2.00 2.00 - Mechanic 2.00 2.00 2.00 2.00 - Maintenance Worker 2.00 2.00 1 2.00 2.00 - Total Building,Grounds,and Mechanical Maintenance 62.00 61.00 62.00 65.00 - 860 Instrumentation&Electrical Maintenance Engineering Manager 1.00 1.00 1.00 1.00 - Engineering Supervisor 1.00 1.00 1.00 1.00 Senior Engineer 2.00 3.00 3.00 3.00 - PrincipallnfonnationTechnologyAnalyst 2.00 1.00 1.00 2.00 - Engineer 2.00 2.00 4.00 3.00 - SeniorinformationTechnologyAnalysl 3.00 3.00 4.00 4.00 - MaintenanceSupermsor 5.00 5.00 5.00 5.00 - InformationTechnologyAnalysllll 2.00 2.00 2.00 1.00 - InformationTechnologyAnalystll 1.00 1.00 - 1.00 - Lead Electrical Technician 4.00 5.00 5.00 5.00 - LeadlnstrumentationTechnician 3.00 3.00 3.00 3.00 - LeadPowerPlantOperator 1.00 1.00 1.00 1.00 - Electrical Technician II 14.00 14.00 13.00 14.00 - InstrumentationTechnicianll 18.00 18.00 15.00 14.00 - Power Plant Operator II 9.00 8.00 8.00 8.00 - Administrative Assistant 1.00 1.00 1.00 1.00 - PowerPlantOperatorl 1.00 1.00 1.00 1.00 - Electrical Technician 1 1.00 1.00 2.00 2.00 - InstrumentationTechnicianl 1.00 1.00 1.00 2.00 - Maintenance Worker 3.00 3.00 4.00 3.00 - Total Instrumentation&Electrical Maintenance 15.00 75.00 75.00 ANN A-31 Historical Staffing Detail Authorized Authorized Authorized Authorized Proposed F-Es FTEs FTEs FTEs FTEs Division&Position 2011-12 2012-13 2013-14 2014-15 2015-16 870 Plant No.1 Maintenance Engineering Manager - - - - 1.00 Engineering Supervisor - - - - 1.00 Maintenance Superintendent - - - - 1.00 Senior Engineer - - - - 2.00 Engineer - - - - 3.00 Maintenance Supervisor - - - - 6.00 Associate Engineer - - - - 1.00 Maintenance Specialist - - - - 5.00 Lead Electrical Technician - - - - 3.00 Lead Instrumentation Technician - - - - 1.00 Maintenance Planner/Scheduler - - - - 3.00 Reliability Maintenance Technician - - - - 4.00 Electrical Technician 11 - - - - 7.00 Instrumentation Technician 11 - - - - 6.00 Lead Mechanic - - - - 2.00 Machinist - - - - 1.00 Administrative Assistant - - - - 1.00 Senior Mechanic - - - - 17.00 Welder/Fabricator - - - - 3.00 Lead Facilities Worker - - - - 1.00 Electrical Technician I - - - - 1.00 Instrumentation Technician l - - - - 3.00 Facilities Worker/Builder - - - - 3.00 Facilities Worker/Painter - - - - 2.00 Mechanic - - - - 1.00 Maintenance Worker - - - - 3.00 Total Plant No.1 Maintenance - - - - 82.00 880 Plant No.2 Maintenance Maintenance Superintendent - - - - 1.00 Maintenance Supervisor - - - - 5.00 Lead Electrical Technician - - - - 2.00 Lead Instrumentation Technician - - - - 2.00 Electrical Technician 11 - - - - 6.00 Instrumentation Technician 11 - - - - 7.00 Lead Mechanic - - - - 2.00 Administrative Assistant - - - - 1.00 Senior Mechanic - - - - 15.00 Electrical Technician I - - - - 1.00 Instrumentation Technician l - - - - 1.00 Mechanic - - - - 1.00 Maintenance Worker - - - - 2.00 Total Plant No.2 Maintenance - - - - .00 A-32 2015-16 Budget Update Authorized Authorized Authorized Authorized Proposed PrEs FTEs FrE. FTFs FTEs Division&Position 2011-12 2012-13 2013-14 2014-15 2015-16 890 Environmental Laboratory and Ocean Monitoring Environmental Lab&Ocean Monitoring Manager 1.00 1.00 1.00 1.00 1.00 Environmental Supervisor 1.00 1.00 1.00 1.00 1.00 Laboratory Supervisor 2.00 2.00 2.00 2.00 2.00 Senior Scientist 3.00 4.00 3.00 3.00 3.00 Scientist 1.00 1.00 1.00 1.00 1.00 Principal Environmental Specialist 3.00 3.00 2.00 2.00 2.00 Principal Laboratory Analyst 7.00 6.00 6.00 6.00 6.00 Senior Environmental Specialist 6.00 5.00 6.00 6.00 6.00 Boat Captain - 1.00 1.00 1.00 1.00 Senior LabomtoryAnalyst 10.00 11.00 10.00 10.00 10.00 Environmental Specialist - - 1.00 1.00 1.00 Laboratory Analyst 3.00 2.00 3.00 3.00 3.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Laboratory Assistant 3.00 3.00 3.00 3.00 3.00 Intern 0.50 - - - - Total Environmental Laboratoryand Ocean Monitoring 41.50 41.00 41.00 41.00 41.00 Total Operations&Maintenance Department 281.00 281.00 283.00 284.00 294.00 Grand Total,All Departments" 634.00 625.75 624.00 624.00 624.00 'FTE totals exclude Management Discretion positions that are authorized but used only on a temporary basis to facilitate the replacement of key positions. Tub additional Management Discretion positions are proposed for FY2015-16 to supplement the tuc existing positions;however,total filled positions Hill not exceed 624 FTEs at anypoint in time A-33 Historical Staffing Detail This page was intentionally left blank A-34 2015-16 Budget Update Appropriations Limit In certain situations, proceeds of taxes may be spent on emergencies without having to Article MIS of the California State Constitution, more reduce the limit in future years. commonly referred to as the Gann Initiative or Gann Limit, was adopted by California voters in 1980. The Each agency also conducts a review of its Gann Limit placed limits on the amount of proceeds of Appropriations Limit during its annual financial taxes that state and local governmental agencies can audit. receive and appropriate(authorize to spend)each year. The law requires a governing body to annually adopt, by resolution, an appropriations limit for the following The limit is different for each agency and the limit year, along with a recorded vote regarding which of changes each year. The annual limit is based on the the annual adjustment factors have been selected. amount of tax proceeds that were authorized to be The Orange County Sanitation District's appropriations spent in fiscal year 1978-79 in each agency, modified limit and annual adjustment factors are adopted at the for changes in inflation and population in each same meeting as the budget. The adjustment factors subsequent year. used for 2015-16 are the weighted average change in city population and the change in state per capita Proposition 111 was passed by the State's voters in personal income. June 1990. This legislation made changes to the manner in which the Appropriations Limit is to be The following table shows the annual appropriations calculated: limit for each of the last two years and the appropriations limit and the appropriations, or The annual adjustment factors for inflation and proceeds from taxes,for 2015-16. The increase in the population have been changed. Instead of limit is based upon population changes ranging from using the lesser of California per capita 0.44%to 1.60%for major cities within the District as income, or U.S. CPI, each agency may provided by the State Department of Finance and a choose either the growth in the California per per capita personal income change of 3.82% as capita income, or the growth in assessed provided by the State Department of Finance. valuation due to new non-residential construction within the district. For population, Annual Appropriation Limits: instead of using only the population growth of 2013-14 $90,880,000 an agency, each agency may choose to use ,000 ,302$91 the population growth within its county. These 2014-12015-15 $9 ,302,000 are both annual elections. The revised annual adjustment factors will be Proceeds of Taxes (Appropriations) applied to the 1986-87 limit for most agencies 2015-16 $37,494,000 and each year in between in order to calculate the 1990-91 limit. The actual limits for the As a result of the July 1998 consolidation of the intervening years, however, are not affected. District, a single limit is presented in contrast to individual limits shown in years prior to 1998. Expenditures for"qualified capital outlay", Population changes for representative cities have which are capital assets with a value of more continued to be used in order to ensure consistency than $100,000 and an expected life of and to eliminate significant population growth in parts 10 years or more, are excluded from the limit. of the County outside of the District's service area. This method results in a lower limit than using the An agency which exceeds the limit in any one County-wide change. 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-35 Miscellaneous Statistics General Information Year of Formation................... .................................. 1948 Miles ofSewers.._..............._.._.._.._.._.._.._............580 miles Forth 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 2014-15 Assessed Value.................................$350.5 billion 2015-16 Authorized Staff(Full-Time Equivalent)...........624.00 Treatment Information Daily Influent Flow to Total Primary 2013-14 Influent ROD: Capacity Comparison(in mgd) Plant No. 1 ................................310 milligrams per liter 07a Plant No. 2................................230 milligrams per liter 40 2013-14 Influent Suspended Solids: °0s aw Plant No. 1 ................................356 milligrams per liter lss .an Plant No. 2................................317 milligrams per liter am lw 2013-14 Effluent BOD_........._......_........9.9 milligrams per liter a 2013-14 Effluent Suspended Solids.........6.4 milligrams per liter Plant Plant Taal 2013-14 Biosolids Produced&Reused............279,362 wet tons 11201N5 Est Influent Ocaptairy-Primary Treatment Primary Treatment Capacity(includes standby): 2014-15 Estimated Average Daily Influent: Plant No. L...............................................204 Tagil Plant No. 1.........................................................98 mgd Plant No. 2................................................16� Plant No. 2.........................................................92 mnd TOTAL....................................i�Z2 m d TOTAL........................................... Secondary Treatment Capacity: 2014-15 Estimated Electricity Generated: Plant No. 1................................................182 Tagil Plant No. L...........................................43,041,000 kwh Plant No. 2................................................150. Plant No. 2............................................50.333 000 kwh TOTAL....................................3d TOTAL................................ 374 000 kwh Legend: ngd milliongallonsperday kwh—kilowatt Per how Financial Information 2015-16 2015-16 2013-14 2014-15 Originally Updated Actual Projected Proposed Proposed Fees and Charges: One-Time 3-Bedroom Residence Connection $3,430.00 $3,588.00 $3,588.00 $3,588.00 Average Annual Si ng le-Fa m fly Residence Fee $308 $316 $323 $322 Local SFR Fee $216 $216 $216 $216 Districts Avg.Share of Ad Valorem Property Tax 1.80% 1.80% 1.80% 1.80% Costto Called,Treat,&Dispose of 1 Million Gallons $1,936.64 $1,970.37 $2,123.35 $2,152.95 SummaryofCOP Issues: May2007ARefunding $ 92,140,000 September 2011 A Refunding 121,290,000 December2007B New Money 13,885,000 February 2012A Refunding 100,645,000 September 2008E New Money 17,315,000 August 2012E Refunding 66,395,000 April 2009A New Money 180,235,000 August 2014A Refunding 85,090,000 May 201 OANew Money 80,000,000 October 2014B Refunding 120,850,000 November 201 OC New Money 157,000,000 February 201 SA Refunding 127,510.000 Total Outstanding COP Balance 7/1/15 $1,162,355,000 A-36 Orange County Sanitation District Wastewater Treatment Process fP i 0 3.AIR SCRUBBER 4. PRIMARY TREATMENT 2. PRELIMINARY TREATMENT Hydrogen Sulfide(foul air)is captured Primary clarifiers or settling basins,slow Raw sewage passes through bar screens throughout the process and funneled the water down to let the solids that are that trap large items like rags that cannot into large silos. It passes through within the water settle out,separate and 1. METERING AND DIVERSION be recycled. Materials like egg shells and a plastic medium and mixes with float to the surface.Scraper arms that Wastewater enters our plant at 2.5-5 mph through coffee grounds are then removed through caustic soda and bleach.Causing move along the top and bottom remove pipes up to 10 feet in diameter. High tech equipment the grit chamber that uses high pressure the odorous compounds to be up to 80%of the solids.Solids are then monitors the temperature, pH,conductivity,and flow of air to separate the gritty material. neutralized. sent to digesters for processing. the incoming wastewater. f � 7. CENTRAL GENERATION Methane gas that is captured v 'W ®� � , • from digesters is compressed and o v ♦ ® �� t , .A, 9 used to fuel engine-generators H that produce electricity,supplying - about 60%of our energy needs. 5. SECONDARYTREATMENT R.. oJHw sANtTATo Trickling filters and aeration basins are used to further clean the water. Intrickling filters the water is sprayed over a honeycomb type material upon which aerobic bacteria a9 grow.As the water trickles down,the microorganisms consume the solids that were not o removed through primary treatment.Aeration tanks use a combination of oxygen and �r S. microorganisms,(activated sludge)that consume the remaining organic solids.Treated Solids captured from primary and secondary processes are batch loaded into 9 z water is then sent to the Orange County Water District for recycling,or discharged into anaerobic digesters where they are heated to about 98 degrees and treated for the ocean. 18-21 days.They enter de-watering where water is squeezed out using belt presses. rxNc THE The nutrient rich biosolids are trucked off to farms where they are recycled for direct land application,and composting.The digestion process produces methane gas. Our Mission: Blosollds `TO protect public health and the environment by providing Our Policy: OCSD strives to recycle our biosolids using sustainable effective wastewater collection, treatment, and recycling." options while protecting public health and the environment. Some of our biosolids are recycled and used like fertilizer on farm fields The Orange County Sanitation District (OCSD) is a public agency that provides to create and maintain healthy soils and improve crop yields. wastewater collection, treatment, and disposal services for approximately 2.5 million people in our service area of central and northern Orange County. OCSD Some of OCSD's biosolids are further processed through composting is a special district that is governed by a Board of Directors consisting of 25 board to create a consumer-grade soil amendment that is distributed to members. OCSD has two operating facilities that treat wastewater from residential, agricultural, commercial and residential users. commercial, and industrial sources. Follow the Flow: Certified Program 01 OCSD was the first public wastewater agency in the Pretreatment: All the cities' sewers connect to OCSD's collections system that nation certified by the National Biosolids Partnership transports the wastewaterto ourtreatment plants. Before the sewage enters our (NBP) (www.biosolids.org) for our biosolids program in Know what should go down facthat disc our Source Control Program permits and inspects business and industry 2003. Certification is maintained }hrough independen}, the drain that is sewer safe from discharge waste into the sewers. Maintaining and protecting our trunk fines third-party audits that verify OCSD conforms to the from corrosion and odor issues is also an important part of what we do. management system standard that was designed by the 1. Metering and Diversion: Wastewater enters our treatment plants through NBP, U.S. Environmental Protection Agency (EPA) and It's simple, the toilet is only meant to flush the trunklines up to 10-feet in diameter at a speed of 2.5-5 mph. Automated other clean water partners. three P's—pee, poop and paper. equipment measures the PH, conductivity, flow, and temperature. Data is monitored by Operators around the clock. Learn More Unfortunately, over the years, people have turned the toilet 2. Preliminary Treatment: Consists of two parts— bar screens and grit Visit our web site at www.ocilewem.com/biosolids for more into a trash can. From medications and sanitary products chambers. First, sewage passes through metal bars that catch large items (rags, information and to sign up for periodic biosolids program newsletters to deceased pet fish and cigarette butts. If it fits, people trash, wood, etc.). Next, grit chambers use air bubbles to suspend lighter material using the "Keep me Informed" button. flush it. Flushing these types of items down the toilet causes while heavier grit (egg shells, coffee grounds, gravel, sand, etc.) sinks to the bottom home pipes to clog, wastes water (up to 5 gallons of water qw and is removed. Screenings and grit are sent to a landfill. every time you flush) and most importantly can have a 3. Air Scrubber: Most processes that produce odors are covered and the foul air G w R S huge impact on our sewers, not to mention our ocean. is drawn off for cleaning (deodorizing) by air scrubbers. OCSD uses both Chemical •� Besides the three Pis the OOd O1heP thing going doWn the Main and Biofilter systems. Hydrogen Sulfides (sewer gas smell) are neutralized by using GROUNDWATER REPLENISHMENT SYSTEM should he Seep and Water.The toilet is not the only drain caustic soda, bleach, or live microorganisms. that people are using to get rid of unwanted waste; The Groundwater Replenishment System (GWRS) is the world's largest 4. Advanced Primary Treatment: Chemicals (ferric chloride and anionic advanced water purification system for potable reuse. It takes treated people are also known to use the kitchen sink as a trash polymer) are added to the preliminary treated sewage to improve settling. Heavier wastewater that otherwise would be sent to the Pacific Ocean and purifies can. Letting trash flow and go down the kitchen sink (or suspended solids clump together and sink to the bottom. Lighter waste (grease and it using a three-step advanced process. any other drain in the house) may cause pipes to clog oil) floor to the surface. This process fakes about 2 hours and up to 75% of the and can eventually lead to sewage spills that harm suspended solids are continuously removed by scraper arms revolve along the top The design and construction of the GWRS was jointly funded by the the environment. and bottom of the basin. These solids are sent to digesters for further processing. Orange County Water District (OCWD) and the Orange County S. Secondary Treatment: Advanced primary treated sewage is sent to either Sanitation District (OCSD). Together OCWD and OCSD constructed Visit WWW.What2FIU$h.COM to learn how to properly dispose of common items that people flush or dump down the drain. Let's keep trickling filers or activated sludge processes were aerobic microorganisms ea} one of the most celebrated civil engineering and wafer reuse projects in our wastewater flowing and our oceans clean. Educate yourselfld he world.the remaining dissolved waste from the wafer. The secondary treated wastewater t and others. is then settled in clarifiers allowing the remaining sludge (either live or dead The GWRS provides a reliable supply of high-purity near-distilled quality o 0 microorganisms)to be removed.Activated sludge process uses aeration basins Know What 2 Flesh and what to put down the drain. Protect to mix oxygen and microorganisms to enhance the waste removal rate. Some of water even during drought and offers a more cost-effective and energy- xYg g efficient strategy than importing water from distant sources. our sewers and environment) z the sludge is pumped back into the aeration basin as return activated sludge to regenerate the basin. The remaining sludge is thickened and sent to digesters. GWRS provides the county with new water it can count on and serves Final Effluent:Almost all the secondary treated wastewater from Plant 1 is sent as a model project for other regions throughout the United States and Reclamation Plant No. 1 and Administration offices dn to the Orange County Water Districts for advanced treatment though the Ground the world that are or will be facing natural and man-made water supply 10844 Ellis Avenue,Fountain volley,California 9270e no Water Replenishment System (GWRS). This water is used to replenish Orange challenges. Treatment Plant No.z County's groundwater aquifers and protect against seawater intrusion. The 22212 Brookhumt street,Huntington Beach,California 92646 secondary treated wastewater from Plant 2 is safely released though our ocean Phone: 714.962.2411 Email:forinformacon@ocsd.com You pipeline five miles out to sea at a depth of 200 feet below the ocean surface. websRe:OCSev,em.com ED cm�Nty SA it 4 � o m� 2 p R 9 4� F�, B N EN Pit ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, CA 92708-7018 714.962.2411 www.ocsewers.com OW015