HomeMy WebLinkAbout98.06-22-16 Board Item 13 Attachment - Proposed Executive Summary ONLINE.pdf Exec mu U
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Orange County Sanitation District, Calif` nib Y
Orange County Sanitation District, Californi
BUDGET
EXECUTIVE SUMMARY
Fiscal Years 2016- 17 and 2017- 18
OUR MISSION
'To protect public health and the environment by providing
effective wastewater collection, treatment, and recycling."
GFOA BUDGET PRESENTATION AWARD
G�9
GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award
PRESENTED I'0
Orange County Sanitation District
California
For the Biennium Beginning
July I, 2014
1rY77'r��Jh+
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.
The award is valid for a period of two years only.We believe our current budget continues to conform to the
program requirements,and we are submitting it to GFOA to determine its eligibility for another award.
TABLE OF CONTENTS
OCSDService Area..............................................................................................................................................i
Boardof Directors...............................................................................................................................................ii
BoardCommittees..............................................................................................................................................iB
Orange County Sanitation District Organization Chart.............................................................................iv
AdministrativeOfficials.......................................................................................................................................v
Message from the General Manager...............................................................................................................vi
FinanceSummary.............................................................................................................................................. 1
Financial Overview&Budgetary Issues..........................................................................................................2
Wbere the Money Comes From.......................................................................................................................6
FundingSources by Category............................................................................................................................6
Wberethe Money Goes......................................................................................................................................8
FundingUses by Category.................................................................................................................................8
Collection,Treatment&Recycling Process Overview............................................................................10
Infrastructure Asset Management...............................................................................................................12
Capital Improvement Program....................................................................................................................22
DebtFinancing Program................................................................................................................................24
OperatingExpenses.........................................................................................................................................26
Departments......................................................................................................................................................30
Summary.............................................................................................................................................................30
General Manager's Office.................................................................................................................................32
HumanResources.............................................................................................................................................34
AdministrativeServices....................................................................................................................................36
Environmental Services....................................................................................................................................38
Engineering.........................................................................................................................................................40
Operations and Maintenance..........................................................................................................................42
Appendix
Five Year Strategic Plan
Wastewater Treatment Process Diagram
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BOARD OF DIRECTORS
Agency/Cities Active Director Alternate Director
Anaheim Lucille Kring James Vanderbilt
Brea Glenn Parker Cecilia Hupp
Buena Park Fred Smith Virginia Vaughn
Cypress Mariellen Yarc Stacy Berry
Fountain Valley Steve Nagel Cheryl Brothers
Fullerton Greg Sebourn Doug Chaffee
Garden Grove Steve Jones Kris Beard
Huntington Beach Jim Katapodis Erik Peterson
Irvine Steven Choi Lynn Schott
La Habra Tom Beamish Tim Shaw
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 Diana Fascenelli
Sanitary Water Districts
Costa Mesa Sanitary District James Ferryman Robert Ooten
Midway City Sanitary District Joy Neugebauer Al Krippner
Irvine Ranch Water District John Withers Douglas Reinhart
Yorba Linda Water District Robert Kiley Michael Beverage
County Areas
Member of the Board of Supervisors Michelle Steel Shawn Nelson
B
BOARD COMMITTEES
Steering Committee Operations Committee
John Nielsen,Board Chair John Withers,Chair(IRWD)
Greg Sebourn Board Vice-Chair David Shawver,Vice-Chair(Stanton)
John Withers,Chair,Operations Committee Tom Beamish(La Habra)
Keith Curry,Chair,Administration Committee Ellery Deaton(Seal Beach)
Lucille Kring,Member-At-Large Steve Jones(Garden Grove)
David Shawver,Member-At-Large Robert Kiley(YLWD)
Tom Beamish,Member-At-Large Richard Murphy(Los Alamitos)
Steve Nagel(Fountain Valley)
Administration Committee Fred Smith(Buena Park)
Keith Curry,Chair(Newport Beach) Michelle Steel(Board of Supervisors)
Lucille Kring Vice-Chair(Anaheim) Chad Wanke(Placentia)
Steven Choi(Irvine) Mariellen Yarc(Cypress)
James Ferryman(CMSD) John Nielsen,Board Chair(Tustin)
Jim Katapodis(Huntington Beach) Greg Sebourn,Board Vice-Chair(Fullerton)
Peter Kim(La Palma)
Greg Mills(Villa Park) Legislative and Public Affairs Committee
Joy Neugebauer(MCSD) Tom Beamish(La Habra)
Glenn Parker(Brea) Peter Kim(La Palma)
Teresa Smith(Orange) Robert Kiley(YLWD)
Sal Th ajero(Santa Ana) Lucille Kring(Anaheim)
John Nielsen,Board Chair(Tustin) John Nielsen,Board Chair(Tustin)
Greg Sebourn,Board Vice-Chair(Fullerton) Greg Sebourn,Board Vice-Chair(Fullerton)
John Withers(IRWD)
T
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:RAN III
ORGANIZATION CHART
General
Management
Administration
go
Board Services
Public Affairs
riman Resources Administrative Environmental Engineering Operations
&
ministration Services Services Administration Maintenance
k Management/ Financial Administration Planning Administration
Safety/Security Management Environmental Project Collection Facilities
Contracts, Compliance Management Off Operations&
Purchasing Laboratory& Maintenance
Materials Ocean Monitoring Civil& Fleet Services
Management Mechanical
Engineering Plant No.f
Information Electrical& Operations
Technology Control Systems Plant No.2
Engineering Operations
Plant No.t
Maintenance
Plant No.2
Maintenance
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ADMINISTRATIVE OFFICIALS
Management Team
General Manager......................................................................................................................................................lames Herberg
Assistant General Manager....................................................................................................................................Robert GhireBi
Director of Engineering.....................................................................................................................................Robert Thompson
Director of Environmental Services.......................................................................................................................Tames Colston
Director of Finance and Administrative Services...............................................................................................Lorenzo Tyner
Director of Human Resources...............................................................................................................................Celia Cbandler
Director of Operations&Maintenance...............................................................................................................Edvnrd Torres
GeneralCounsel.......................................................................................................................................................Bradley Hogin
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MESSAGE FROM THE GENERAL MANAGER
June 1,2016
Honorable Chair and Board of Directors:
I am pleased to submit the Orange County Sanitation District's(OCSD)
Proposed Budget for fiscal year 2016-17 and 2017-18.This document
lays out the framework for OCSD's activities during the next two
years,and serves as a source of information for OCSD's Board of
Directors,our ratepayers and our employees.This budget includes the
operational,capital and debt service expenditures necessary to cost-
effectively support our mission and execute the Strategic Plan adopted
by our Board of Directors in December 2015.Our work plan focuses on
four distinct program areas:
• Expanded Water Recycling-In partnership with the Orange County Water District(OCWD),our
agency recycles enough water to supply the needs of 850,000 people.Recognizing the need for a reliable,
affordable and high quality water supply,our Board of Directors has set a goal of recycling 100 percent
of our wastewater flows.We will be working with OCWD on the planning and design of the ultimate
expansion of the Groundwater Replenishment System over the next two years.
• Infrastructure Reliability and Operational Sustainability-We will continue to improve our planned
maintenance program to include civil assets in addition to electrical and mechanical systems.Our long
term facilities Master Plan will also be updated during the next two years and will serve as a basis for our
new rate structure that will take effect in 2018.Recognizing the importance of resiliency in the event of
a disaster,we will complete our business continuity plan and establish offsite backup infrastructure.In
fiscal year 2016-17,we will complete the transfer of local sewers in the Tustin area to a local provider,
which will allow us to focus on regional services.
• Safety and Security-Capital projects,maintenance activities,and training to address safety in our
workplace are included in our work plan. We are also enhancing our physical and electronic
security measures.
• Workforce Succession Planning-Recognizing the ongoing retirement wave,we will continue to invest in
our employees focusing on planning,leadership training and improved recruitment strategies.
I would like to take this opportunity to highlight some of the important revisions to next year's budget:
• Departmental Restructuring-OCSD restructured its departments to strategically align our engineering,
operating,and environmental functions to better meet the challenges of the future.The business
units within the Facilities Support Services Department were merged into other departments.The
Collections,Operations and Maintenance and Fleet Services divisions were moved into the Operations
and Maintenance Department.This change will allow for better coordination and standardization of
our maintenance efforts for all of OCSD's infrastructure.The Source Control inspection team merged
ri
FISCAL YEARS 2010-17 AND 2017-18 BUDGET
with the Pretreatment Compliance team in a newly created Environmental Services Department.
This new department will lead OCSD's environmental and regulatory efforts and will also include
the Environmental Sciences Laboratory,Ocean Monitoring,Compliance,Air Quality,and Biosolids
Programs.The reorganization also consolidated project management functions in the Engineering
Department to form an agency wide Project Management Office.These changes will allow us to more
efficiently and effectively deliver service to internal and external customers.
. Operating Expense Cost Containment-Despite inflationary increases on many external costs such
as chemicals and utilities,we will minimize the impact on rate-payers by aggressively negotiating our
contracts,ensuring a competitive bidding environment,prudently managing debt and implementing
efficiencies.The 2016-17 Operating Budget represents only a 3.5 percent increase from the current
year projected actuals.Operating efficiencies such as the reduction of long-term liabilities,operational
improvements and general cost containment have allowed OCSD to reduce ongoing expenses and the
need for additional resources.
. Reduction in Long-term Liabilities-Many government agencies are faced with growing long-term
liabilities,particularly in the area of pensions.OCSD has been aggressive in reducing its liability and
developed a plan to address this issue.By making advanced payments,as I have included in this
budget,OCSD has eliminated its unfunded pension liability,saving tens of millions of dollars in
premium payments.
. Rate&Sewer Service Planning-Our current rate structure expires on June 30,2018.During this
budget period,we will establish and present to the board a sound financial plan in line with the goals
of the agency.
While addressing rising treatment and chemical costs,aging infrastructure,and increased regulatory
requirements,this budget displays our commitment to efficiency as it includes only minimal staffing and
operating cost increases;and rate increases averaging less than 2 percent per year.
OCSD will continue to provide wastewater treatment,recycling,sewer and facilities maintenance,ocean
monitoring and many other services while maintaining one of the lowest rates in the state.I believe this
budget fully supports the goals included in the Orange County Sanitation District's Strategic Plan and
positions us well to address challenges in the coming years.
James D.Herberg
General Manager
Orange County Sanitation District
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ORANGF COUNTY SANITATION DISTRICT EXECUTIVE SUMMARY HSCAI YFARS 2016 17 AND 7017-18
FINANCE SUMMARY
FINANCIAL SUMMARY/OVERVIEW & BUDGETARY ISSUES
Budget Overview level of 641 FTE positions.Personnel costs will decrease
primarily due to decreases in retirement premiums
Orange County Sanitation District's(OCSD's fiscal after OCSD made a$50 million payment to reduce the
year 2016-17 and 2017-18 operating and capital unfunded pension liability.An additional payment of
improvement budgets are proposed at $25 million against the unfunded pension liability is
$475 million and$375 million,respectively.The planned in 2016-17.
decrease in the 2017-18 budget is primarily due to
(1)the transfer of local sewer lines to the East Orange The District will continue to effectively manage these
County Water District along with the$40 million in expenses with approximately 20 percent of the budget
capital replacement reserves and(2)the pay down of the allocated to employee costs,much less than most other
remaining$25 million in unfunded actuarial accrued government agencies.
liability with the Orange County Employees Retirement
System planned for fiscal year 2016-17.The budget Level of Treatment
continues to reflect the agency's ongoing efforts to
streamline operations. The agency's two treatment plants,located in Fountain
Valley and Huntington Beach,process about 185
OCSD's CIP budgets for fiscal year 2016-17 and 2017- million gallons of wastewater each day generated by
18 are$171 million and$138 million,respectively, approximately 2.6 million people residing within central
net of savings and deferrals.This CIP budget supports and northwest Orange County and the businesses that
collection system,joint works treatment and disposal operate within this service area.The proposed budget
system improvement projects.The decrease in the to operate,maintain and manage our sewage collection,
second year is due to the timing of construction cash treatment and disposal system,including self-insurance
outlays as we meet our infrastructure needs. requirements,for the next two years is$149 million and
$153 million.Increases are primarily a result of repairs
Financing and maintenance,utilities,and personnel costs.
The District uses long-term Certificates of Participation The cost per million gallons of wastewater treated(an
(COP)for financing capital improvements that cannot industry-wide performance measurement)is expected
be completely funded from current revenue.Before any to increase by$68,or 3.2 percent,in fiscal year 2016-17
new debt is issued,the impact of debt service payments to$2,167.
on total annual fixed costs is analyzed.Total COP
indebtedness is currently at$1.1 billion. No new money To eliminate most bacteria from being released from the
debt financings are currently forecasted to assist in the ocean outfall,in fiscal year 2002-03 the District began
funding of the$2.4 billion in capital improvements using chlorine bleach to disinfect the effluent and then
required over the next 10 years. applying sodium bisulfite to remove remaining chlorine
prior to releasing the treated wastewater to the ocean.
Staffing This mode of disinfection continued until March 18,
Reflecting the organization's commitment to providing 2015.OCSD staff conducted numerous studies on the
service at the lowest costs,the budget reflects a minimal use of disinfection on the marine environment.OCSD
increase of three authorized full time equivalent(FTE) used a Blue Ribbon Panel of experts assembled by the
positions for fiscal years 2016-17 and 2017-18 as staffing National Water Research Institute.After an exhaustive
is proposed at 627 FTE positions in both years.The new review of OCSD's practices and receiving water data,the
positions are needed to provide additional support for Panel recommended eliminating the continuous use of
the increasing demands of the capital improvement and disinfection.There will continue to be small amounts of
asset management programs. bleach and bisulfite at the treatment plants for possible
emergencies. Plant water is used throughout the
This staffing level continues to reflect a significant wastewater processes,and there will be sufficient bleach
reduction from the fiscal year 2010-11 approved staffing for plant water disinfection.
2
FISCAL YEARS 2010-17 AND 2017-18 BUDGET
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Sewer Service Fees implement the final expansion of GWRS.The expansion
will add an additional 30 million gallons a day(MGD),
The 2016-17 and 2017-18 single family residential rates bringing the total GWRS capacity to 130 MGD of
are scheduled to increase by approximately one percent drinking water.
each year to$327 and$331,respectively.OCSD's rates
are well below the statewide average sewer rate of$475, Capital Improvement Program
according to a 2015 survey of 731 agencies in California. (CIP)
Groundwater Replenishment In preparation of this two-year budget,the District
System (GWRS) completed the FY 2016-17 CIP Validation Update.
The OCSD Strategic Plan includes water reclamation. Highlights of this Validation Update are as follows:
With the Orange County Water District(OCWD), • Fiscal year 2016-17 proposed CIP expenditures are
OCSD completed the GWRS,the nation's largest water $171.3 million,net of savings and deferrals.
reclamation project,in January 2008. • Overall total projected CIP expenditures over the
10 year life of the CIP program are$2.4 billion.
The original GWRS facility reclaimed 70 million gallons , Four new CIP projects were added with projected
of water a day,delaying the need to build a second outlays of$15.9 million.
outfall which could cost more than$200 million.OCSD
and OCWD equally shared the expenses of this project Projects Driving the CIP
and approximately$44 million in Federal and State
grants that were received to offset part of the total costs. Over the next 24 months,the largest capital cash
outlays are:
Initial expansion of GWRS increased the production 1.Sludge Dewatering and Odor Control at Plant No.2-
of reclaimed water to 100 million gallons a day.This $40.3 million($90.5 million total budget)
expansion,which was funded entirely by the OCWD,
was completed in early 2015.OCSD is directing 2.Newhope-Placentia Trunk Replacement-
all reclaimable flows from Plant No. 1 to OCWD $35.1 million($99.5 million total budget)
in support of providing maximum amounts of 3.Sludge Dewatering and Odor Control at Plant No. 1 -
specification water for reclamation. $28.1 million($188.3 million total budget)
A feasibility study for recycling all of OCSD's 4.Rehabilitation of Western Regional Sewers-
reclaimable effluent was completed in May 2016.This $22.4 million($215.3 million total budget)
study was jointly funded by OCSD and OCWD with 5.Gisler-Red Hill Trunk Improvements-Reach B-
a grant from the U.S.Bureau of Reclamation.The $18.9 million($25.2 million total budget)
feasibility study identified the projects necessary to
ORANGE COUNTY SANITATION DISTRICT I EXECUTI 3
FINANCIAL SUMMARY/OVERVIEW & BUDGETARY ISSUES
Operating Budget Increase Repairs and Maintenance -
The operations budget for the collection,treatment,and $0.8M Increase
disposal of wastewater is proposed at$148.9 million, This expense category includes parts and services for
a$5.0 million(3.5 percent)increase above 2015-16 repairing aging treatment plant and collection facilities,
projected expenditures.It is projected to increase by an and reflects base budgets for equipment maintenance
additional$3.5 million(2.4 percent)in 2017-18. as well as out-sourced annual service contracts and
Although some expenses will increase or decrease maintenance agreements.The fiscal year 2016-17 budget
slightly,the overall increase to the operating budget increase of$839,000(6.2 percent)is mostly attributable
in 2016-17 over the 2015-16 projected is primarily to increases in basic repairs and maintenance costs and
attributable to seven specific areas: Central Generation(Cerl engine overhaul.
Salaries and Benefits - $0.6M Utilities - $0.4M Increase
Decrease The proposed electric power budget reflects an increase
of$346,000 over the prior year projected due to
Salaries and benefits will decrease primarily due to a anticipated consumption and unit cost increases.
reduction of$4.6 million in retirement premiums as
a result of the District's decision to use available cash Other Materials, Supplies,
reserves to reduce the unfunded pension liability by Services - $1.8M Increase
$50 million in 2015-16.This decrease will be partially
offset by increases of$3.7 million(5.9 percent)in The increase is primarily due to an increase in the
salaries and wages and an increase of$0.5 million property and general liability insurance premiums and
(5.2 percent)in group insurance costs. the restoration of the General Manager's contingency
These changes reflect the impacts from existing and the contingency for prior year reappropriations.
collective bargaining agreements and revised actuarial Cost Allocation - $0.9M Increase
assumptions on retirement premiums.
Total salary and overhead costs charged to capital
Contractual Services - $1.4M projects are expected to increase based on the updated
Increase cost allocation plan and overhead rates. The increased
charges to capital projects will decrease the net
Although biosollds removal and transportation costs are operating budget.
expected to decrease in 2016-17 by$660,000 as a result
of new service contracts,costs for temporary services
and other contractual services are expected to increase Operating Expenses
to support the Civil Assets Maintenance Program.
Contractual services costs are expelled to decrease by +3.5% +3.4%
$2.2 million in 2017-18 as a result of the completion of
the sludge dewatering facilities that will significantly
reduce biosolids removal and transportation costs.
Professional Services - $1.1 M
Increase
The Increase in professional services in fiscal year FY 1015-16 FY 3016-17 FY 2017-16
2016-17 is to support the comprehensive Civil Assets Projected proposed Proposed
Maintenance Program Operatingin FY 216 17 and another$mantenarre 3.5 million R.4%)In FY millionjo 018.
4
FISCAL YEARS 2010-17 AND i BUDGET
ORAHG� GO JIO I Y SAN I[A]ION III S I fl I C I EXECUTIVE SUMMARY-FISCAL YEARS 2016-17
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2017-18
FINANCIAL SUMMARY/FUNDING SOURCES BY CATEGORY
WHERE THE MONEY COMES FROM
Interest Other
$8.6M $4.6M
2.0% 1.0%
Property Taxes
$87.OM Intradistrict
20.0% Transfers
- $3.4M
0.8%
Fees
Charges
$331.9M
76.2%
Funding Sources by Category
(in millions)
2014-15 2015-16 2016-17 2017-18
Category Actual Projected Proposed Proposed
Service Fees $291.1 $308.7 $307.1 $310.1
Property Taxes 79.9 82.9 87.0 91.4
Capital Facilities Capacity Charges 20.2 13.3 13.5 18.1
Permit User Fees 14.6 11.1 11.3 11.4
Interest 8.1 7.1 8.6 8.8
Intradistrict Transfers 5.4 8.5 3.4 1.7
Debt Proceeds 0.0 0.0 0.0 0.0
Other Revenue 4.1 4.9 4.6 4.9
Total Funding Sources $423.4 $436.5 $435.5 $446.4
6
FISCAL YEARS 2010-17 AND 2017-18 BUDGET
The District has a variety of revenue sources available Interest Earnings - $8.BM
for operating and capital expenses.The major revenue
sources are: Interest earnings are generated from the investment
of accumulated reserves consisting of a cash flow/
General Service Fees - $307.1M contingency,a capital improvement,a renewal/
User fees are ongoing fees for service paid by customers replacement,and a self-insurance reserve.
connected to the sewer system.A property owner,or Intradistrict Transfers - $3.4M
user,does not pay user fees until connected to the sewer
system and receiving services.Once connected,users In accordance with Amendment No.2 to the Agreement
are responsible for their share of the system's costs,both for Purchase and Sale of Capacity Rights in Treatment,
fixed and variable,in proportion to their demand on the Disposal and Sewer Facilities between Irvine Ranch
system.These fees are for both Single Family Residences Water District(IRWD)and OCSD dated
(SFR)and Multiple Family Residences(MFR). November 15,1995,ownership is adjusted annually
to reflect the current equity percentage ownership
Property Taxes - $87.OM based on sewage flows.
The County of Orange is permitted by State law Debt Proceeds - $OM
(Proposition 13)to levy taxes at one percent of full
market value(at time of purchase)and can increase the Certificates of Participation(COPS)are OCSD's primary
assessed value no more than two percent per year.The mechanism for financing capital projects.COPS are
District receives a share of the basic levy proportionate repayment obligations based on a lease or installment
to what was received in the 1976 to 1978 period,less sale agreement COPS are not viewed as"debt"by the
$3.5 million,the amount that represents the State's State of California,but rather a share in an installment
permanent annual diversion from special districts to arrangement where OCSD serves as the purchaser.
school districts that began in 1992-93.OCSD's share of No new money debt issuances are being proposed over
this revenue is dedicated for the payment of debt service. the neat two fiscal years as the$2.4 billion in future
Capital Facilities Capacity replacement,rehabilitation,and refurbishment projects
es CFCC 13.$M anticipated over the next ten years will be adequately
Charges ) — $ funded through current sewer service fee charges and
The Capital Facilities Capacity Charge is a one-time meting reserves.
charge imposed at the time a building or structure Other Revenue - $4.8M
is newly connected to OCSD's system,directly or
indirectly,or an existing structure or category of use Other revenue includes self-insurance assessments for
is expanded or increased.This charge pays for OCSD workers'compensation and general liability coverage as
facilities that exist at the time the charge is imposed,or to well as miscellaneous revenue such as rents and leases.
pay for new facilities to be constructed in the future that
will benefit the property being charged.
Permit User Fees - $11.3M
Permit user fees are paid by large industrial and
commercial properties owners connected to the sewer
system.These fees are for the owner's share of the
system's costs,both fixed and variable,in proportion to
the user's demand on the system.
Since the inception of the Permit User Fee Program
in 1970,users of OCSD's system that discharge high
volumes or high strength wastewater have been required
to obtain a discharge permit and pay extra fees for the
costs of service.
FINANCIAL SUMMARY/FUNDING USES BY CATEGORY
WHERE THE MONEY GOES
Operating Capital
Expenses Improvement
$148.9M program
31.3% $171.3M
36.1%
Intradistrict
Transfers Debt Service
$3.4M 0.7% $151.6M
31.9%
Funding Uses by Category
(in millions)
2014-15 2015-16 2016-17 2017-18
Category Actual Projected Proposed Proposed
Capital Improvement Program, Net $180.0 $140.2 $171.3 $138.0
Debt Service' 220.0 134.0 151.6 83.1
Operating Expenses 143.7 143.9 148.9 152.4
Intradistrict Transfers 5.4 8.5 3.4 1.7
Total Funding Uses $549.1 $426.6 $475.2 $375.2
"The proposed amount for fiscal year2016-17 includes a payment of$25 million against the District's unfunded pension
liability and a payment of$40 million to the East Orange County Water District as part of an agreement to transfer
responsibility for local sewer maintenance.
8
FISCAL YEARS 2010-17 AND 2017-18 BUDGET
OCSD budgets its funds in four distinct areas: Operating Expenses - $148.9M
Capital Improvement The proposed budget allocates resources to operate,
Program ICIP) - $171.3M maintain and manage our sewage collection,
treatment and disposal system,and for any associated
To provide an appropriate level of service to administrative or technical requirements.
OCSD's rate payers,large capital improvements are
required.The CIP provides for the management Intradistrict Transfers — $3.4M
and implementation of these improvements. The
CIP budget includes specific projects as well as an In accordance with Amendment No.2 to the
allocation for anticipated replacement,rehabilitation, Agreement for Purchase and Sale of Capacity Rights
or refurbishment(RRR)projects where detailed job in Treatment,Disposal and Sewer Facilities between
plans have not yet been prepared.The gross CIP project IRWD and OCSD dated November 15, 1995,ownership
budgets for 2016-17 and 2017-18 are$190.3 million is adjusted annually to reflect the current equity
and$153.0 million,respectively.However,the CIP percentage ownership based on sewage flows.
cash outlays,net of savings and deferrals,are
budgeted at$171.3 million and$138.0 million for
each year,respectively.
Debt Service - $151.6M
'Ibis is the cost of repaying debt.Long-term debt
financing allows the District to complete large multi-
year capital projects by providing funds not always
immediately available.
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ORANGE COUNTY SANITATION DISTRICT EXECUTIVE SUMMARY-FISCAL YEARS 2016-17 AND 2017-18 9
COLLECTION, TREATMENT & RECYCLING PROCESS OVERVIEW
OCSD's system includes approximately 570 miles Solids are then dewatered to a 20 percent solids
of sewers that convey wastewater generated within consistency,called biosolids,and recycled via direct land
the Sanitation District's boundaries to the Sanitation application or composting.
District's two wastewater treatment plants,Reclamation
Plant No. 1 located in the City of Fountain Valley, Approximately 130 million gallons per day of secondary
and Treatment Plant No.2located in the City of effluent from Reclamation Plant No. 1 is sent to the
Huntington Beach. Orange County Water District(OCWD)for recycling in
its two treatment processes.
Influent wastewater undergoes Preliminary Treatment
upon entry to the treatment plants where it is filtered The first is OCWD's Groundwater Replenishment
through bar screens,and grit and debris are removed. System(GWRS).The GWRS is the largest water
It then flows to Primary Treatment,which consists purification project of its kind in the world and its
of large settling basins where solids are settled out, construction was funded jointly by OCWD and OCSD.
enhanced by the addition of chemicals,and sent to At 100 million gallons per day,the GWRS generates
Solids Processing.Wastewater then flows to Secondary enough pure water to meet the needs of 850,000 people.
Treatment,which is a biological process using either the The second is OCWD's Green Acres Project(GAP)
trickling filter or activated sludge process.Solids removed which is a water recycling effort that provides reclaimed
in Secondary Treatment are also sent to digestion. water for landscape irrigation at parks,schools and
Methane gas generated during the natural golf courses as well as for industrial uses,such as carpet
decomposition of the solids in the digesters fuels the dying.The total annual demand for GAP water is about
Central Power Generation System producing enough four million gallons per day.
electricity to meet two-thirds of the power needed to
run both treatment plantsMM
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FISCAL YEARS 2010-17 AND 2017-18 BUDGET
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ORANGE COUNTY SANITATION DISTRICT EXECUTIVE SUMMARY-FISCAL YEARS 2016-17 AND 2017-18 i ��
INFRASTRUCTURE ASSET MANAGEMENT
Asset Management including installation date,asset cost,condition and
criticality in the new system.
In December 2002 the Orange County Sanitation
District(OCSD)Board adopted their"Asset While the TeamPlan Software projects future renewal
Management Strategic Plan and Framework Analysis" cash flow requirements in the long-term,OCSD has
(Strategic Plan). The Strategic Plan defined Asset been striving to more accurately identify medium to
Management for OCSD as;"to create and acquire, short-term capital cash flow requirements.Specifically,
maintain,rehabilitate,replace and augment these the Engineering Planning Division has been working on
valuable wastewater assets in the most cost effective developing a medium to long-term(up to 20 years)
(lowest life cycle cost)sustainable manner at the level Capital Improvement Program(CIP)by creating
of service required by present and future generations of specific project plans for the refurbishment,
regulators and customers at an acceptable level of risk." rehabilitation or replacement for each asset area.
The District is committed to providing services for its This medium-term management is important for
rate payers to reliably meet our regulatory mandates and several reasons.By moving away from narrowly
levels of service approved by the Board of Directors,and focused projects to solve individual problems,to more
will provide these services using sustainable engineering comprehensive projects refurbishing entire processes,
principles that result in the lowest responsible lifecycle OCSD benefits by having less operational disruption
cost. The District installs,operates,maintains,refurbishes and more efficient project delivery,better cash flow
and disposes of assets with liferydes measured from years estimation,and better operations and maintenance
to decades,so an approach which balances long,medium decision-making framework. This is a huge undertaking
and short-term needs is necessary. based on the number of asset and facilities,but over
time the undefined future rehabilitation capital
Asset management has evolved into a comprehensive estimates within the twenty-year window is expected
decision-making framework that encompasses to be drastically reduced and replaced by more specific
engineering planning,design and construction estimated capital needs.
of quality facilities,optimized operation,proper
maintenance,and planned refurbishment and disposal Complementing the medium-term planning are the
that will meet the District's changing needs. This short-term efforts to coordinate maintenance actions that
coordinated decision making process will allow the can reduce risks,actively defer the larger refurbishment
District to consistently meet mandated levels of service projects,and reduce asset consumption rates to minimize
to the rate payers at the lowest lifecycle cost. the need for replacement of structures and conveyance
systems when projects are executed. The Planning
The District's Asset Management Plan focuses on the Division asset engineers are constantly reviewing
long-term modeling of systems to ensure the proper rate their area scopes of work,utilizing their criticality and
structure is in place to support sustainable operations condition information and engineering judgment,to
and to prioritize condition assessment studies based on identify opportunities for operational adjustments or
service life and service conditions.These are important maintenance activities that cost effectively extend the
starting points and have yielded tangible benefits in life of key assets which may allow for deferral of the
reduced risk levels and an improved capital planning larger overall project. This maybe a targeted equipment
approach.The results of the long-term modeling replacement or pipeline repair that is more urgent than
are completely dependent on the data quality of the the need of the overall facility. These engineers may
databases supplying information to the TeamPlan also identify opportunities to reduce asset consumption
Software.Staff continues to improve the data quality through coating systems,atmosphere improvements
of the source systems to improve the accuracy of the or small structure repairs before major damage is done.
long-term model.The implementation of the Maximo These actions can drastically reduce the cost of future
Computer Maintenance Management System(CMMS) projects by preventing the need to demolish and replace
is an example of an effort to improve OCSD's Asset entire structures.
Register.CMMS Technicians and the Asset Engineers
continue to work to update the database information
12
FISCAL YEARS 2010-17 AND 2017-18 BUDGET
The District is committed to continuous improvement replacement obligation is rising,and as a consequence,
of the process by which it manages the assets and OCSD needs to plan for decreased capital projects for
facilities that are required to reliably deliver its level expansion and increased renewal expenditures in the
of service commitments. The additional resources future relative to past expenditure levels.Additional
and individual accountability for specific areas has focus will need to be given to ensuring that appropriate
improved,and will continue to improve our capital operation and maintenance strategies are being applied
planning,project packaging,project execution and that consider the different ages of assets
delivery,plant operability and maintenance planning. being maintained.
The average age and value of the assets OCSD own
is increasing steadily over time,the latent asset
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ORANGE COUNTY SANITATION DISTRICT EXECUTIVE SUMM -FISCAL YEARS 2016-17 AND 201 13
INFRASTRUCTURE ASSET MANAGEMENT
Asset Valuation The 2012 replacement value is estimated to be
$6.20 billion.In 1998 the prediction was$2.03 billion,
The replacement valuation for all of OCSD's assets has which was based on original purchase cost.It is
been updated.The table below presents the current projected that the replacement value will increase by
replacement and depreciated values of OCSD's assets. approximately$7.1 billion when all of the existing three
The replacement value represents the cost in December billion dollar CIP has been captured in the District's
2009 dollars to completely rebuild all the assets to a new database. The major reasons for this increase are all the
condition. The depreciated value is the book value of new assets added to the asset register and the increased
the assets based on their age,which is a prediction of replacement costs due to now having to perform
their current condition. construction in a more urbanized Orange County than
Valuation plants Collection Total in the past.
Replacement $3.11 $3.09 $6.20 Planned CIP Outlays
Value(in billions) The following chart shows the 20-year CIP outlay
Depreciated $1.88 $1.88 $3.76 which includes current and predicted future Capital
Value(in billions) Improvement program projects.
20 YEAR CIP OUTLAY
$350
$300
$250
o $200
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$150
$1o0
$50
$0
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F F F F 4'" e" F" ¢' F+' F' F+' ¢' ¢'
FISCALYEAR
Budget CIP Future CIP Rehabilitation or Replacement
14
FISCAL YEARS 2010-17 AND 2017-18 BUDGET
With the completion of the$537 million full secondary . Completed 2,900 inspections of 15 pump stations and
treatment expansion program,our capital improvement 3 metering facilities.
and maintenance programs are now more focused
on maintaining our infrastructure to ensure that our • Completed 57 facility safety inspections.
mission is delivered reliably and that our facilities are . Completed 56 pump station wet well and 12 Plant No.
managed in a way that minimizes overall life cycle costs. 2 headwork cleanings.
Below is a status of the fiscal year 2015-16 infrastructure • Completed 296 pump station preventative pump
maintenance activities and planned activities for fiscal cleanings.
year 2016-17.
• Completed 487 pump station mechanical preventative
Collection System: maintenance tasks.
OCSD's collection system consists of 570 miles of • Cleaned 70 trouble spots and 346 inverted siphons.
sewers broken down by 170 miles of large regional . Cleaned 94 miles of local sewer pipelines.
sewers currently not on a cleaning schedule due to their
size,230 miles of regional sewers on a cleaning schedule . Repaired 2,380 feet of local sewer lines.
and 170 miles of local sewers in Area 7 scheduled to be
transferred to the Fast Orange County Water District in • Completed 260 miles of pipeline video inspections.
August 2016;and 15 pump stations and three metering . Completed 213 manhole video inspections.
locations that must be maintained,repaired,and
upgraded to maintain wastewater service and to convey . 1,277 dry tons of caustic soda slug dosed.
sewage to our treatment facilities. Typical collection
system maintenance activities consist o@ televising, • 21450 dry tons of magnesium hydroxide continuously
inspecting,and cleaning sewer lines;operating, dosed.
maintaining and cleaning pump stations with associated , 4,000 dry tons of ferrous chloride continuously dosed.
facilities;and chemical conditioning of the sewage
to reduce corrosion and control odors.Maintenance • 180,000 gallons of calcium nitrate continuously dosed.
activities are based on established levels of service to
ensure compliance with our Sewer System Management Total costs:$6,792,304
Plan,reducing spills,increasing reliability and safety, The following activities and goals are planned for fiscal
and ensuring that our facilities are managed operated year 2016-17:
and maintained to minimize overall life cycle costs and
need for repairs.The cleaning frequencies are based • Clean 60 miles of regional sewer lines on a cleaning
on data from pipe inspections,closed-circuit television schedule.
(CCTV)work historical records,and industry best
practices.The planned activities help extend the useful • CCTV video inspection of 500 regional system
life of the assets and minimize nuisance odors. manholes.
Maintenance activity tracking will change during the • CCTV video inspection of 80 miles of regional sewer
2016-17 fiscal year to reflect various changes and best pipeline.
practices within our system.In addition,the Area 7 . Complete at least 95%of scheduled pump station
local sewers are tentatively scheduled for transfer preventative maintenance work
starting August 2016.The Area 7local sewer data will be
excluded from the metrics values. • Clean 95%of trouble spot and scheduled inverted
siphon work.
During fiscal year 2015-16 the following maintenance
activities were completed: • Manage odor control chemical expenditures to
between 95-102%of budget.
• Cleaned 41 miles of regional sewer lines.Completed
rapid manhole inspection of 860 regional manholes. Estimated total costs:$8,864,300
15
INFRASTRUCTURE ASSET MANAGEMENT
Collection System Capital have developed,making the pipe difficult to clean,and
Improvement Projects over time may impede the wastewater flow.Portions of
the project will be relined and others will be replaced
Our collections projects go through an intensive with larger diameter pipelines.Also,over 150 manholes
planning and design process to ensure all elements will be replaced.In addition,the Westside Pump Station
of the project are thoroughly assessed.These projects will undergo some improvements,the aging pump
typically renew or replace aging pipelines and pump station needs a new wet well and odor control measures.
stations,upgrade facilities to meet current codes and This project budget is$217 million.
standards,and in some instances to increase flow
capacity due to growth in localized portions of our At the southern edge of the previously mentioned
service area. project,the Seal Beach Pump Station(Project No.3-62)
also needs to be rehabilitated to properly support the
We are currently planning and executing a western region of our service area.Not only are the
comprehensive program to renew our collection system. electrical and safety codes significantly different from
One of the larger projects is the Newhope-Placentia when the station was first constructed in the early 1970s,
Trunk Replacement(Project No.2-72)which is taking but many of the electrical,mechanical,and control
place in the cities of Fullerton and Anaheim.Seven system components are becoming obsolete,so long-
miles of sewer along State College Boulevard,from term maintenance is no longer an option.The two
Yorba Linda Boulevard to Orangewood Avenue,will force mains downstream of the pump station will also
be upsized to handle the flow necessary to allow the need to be addressed.One force main will be replaced
abandonment of the Yorba Linda Pump Station which and the other rehabilitated to properly support the
has reached the end of its useful life.After analyzing the updated facility. Odor control facilities will be added to
system,it is not practical to update the facility due to the reduce system corrosion and minimize public impacts.
high costs of rehabilitation and the limitation to utilize This project is currently in the design phase with
the flow for reclamation.Currently,flow is diverted construction anticipated for 2015.The budget for this
into the Santa Ana River line instead of the Newhope- project is$61 million.
Placentia line due to the existing insufficient capacity,
thus preventing the use of flow for the Groundwater In the cities of Santa Ana,Tustin,and Irvine,we have
Replenishment System. The project will also include the Gisler-Red Hill Trunk Improvements(Project No.
modifications to existing diversion structures to add 7-37)which is rehabilitating or replacing aging parallel
flexibility to the collection system to divert other sewer lines.The current pipes,which run along Red Hill
reclaimable flow. This project also provides adequate Avenue between McGaw Street and Mitchell Avenue,
capacity for future development,minimizing the risk of are not large enough to handle the high flows associated
sewer spills in the future.Construction efforts started in with wet weather events which create the risk of spills.
May 2016 and the fast phase of the project is scheduled The manholes are also deteriorated and corroded and
to be completed by fail 2017.The project has a current must also be replaced or rehabilitated to avoid failure.
budget of$99 million. The two-mile project has a current budget of$25 million
and began construction in May 2016.
Another large scale project is the Rehabilitation of the
Western Regional Sewers(Project No.3-64)which In Newport Beach,we have developed a comprehensive
covers approximately 17 miles of sewers in the cities of Program to coordinate the various projects scheduled to
Anaheim,Buena Park,Cypress,La Palma,Los Alamitos, take place in the city in the next few years.We recently
Seal Beach and unincorporated areas of the County completed construction of the Newport Force Main
of Orange referred to as Rossmoor. This large project Rehabilitation Project(No.5-60),which rehabilitated
is required to rehabilitate or replace pipes that were and replaced parallel pipes in Pacific Coast Highway
installed 45 to 55 years ago.The sewers have multiple between Dover Drive and just west of Superior Avenue.
deficiencies which have allowed the intrusion of ground The project was sequenced in two phases to minimize
water primarily at the joints,but also sporadically along public impacts by avoiding construction in the busy
the pipe segments. In some cases,hard calcium deposits summer months.The 50-year steel pressurized mains
18
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INFRASTRUCTURE ASSET MANAGEMENT
were in poor condition and one of the pipelines was . Completed major service on four of nine blowers
undersized to convey predicted wet weather Flows. Now that provide oxygen to the microorganisms in the
completed,the system should provide another 50 years secondary treatment process.
of service.The project had a budget of$64 million.
Replacement of the control system for emergency back-
Also in the City of Newport Beach and in portions up power generators that service our activated sludge
of Costa Mesa,we have the District 6 Trunk Sewer secondary treatment facilities,originally planned for
Relief Project(No.6-17).This project is replacing the fiscal year 2015-16,was made part of the Headworks
sewer that extends from Pomona Avenue to Newport Rehabilitation Capital Improvement Project scheduled
Boulevard ending near Pacific Coast Highway.These for completion in 2020.Additionally,replacement of
improvements will increase capacity to properly outdated atmospheric monitoring equipment in the
handle the projected increase in Flow from planned digesters and central generation facility areas originally
developments.These improvements will extend the life scheduled for this year was deferred to fiscal year
of the sewer by 30 years.Once the project is completed, 2016-17 due to changing priorities.
the risk of sewer spills during dry weather events and
common wet weather events will significantly diminish. Total costs:$3,827,885
The current budget for the project is$8 million. During fiscal year 2016-17,there are more than 4,900
Reclamation Plant No. 1: preventative maintenance activities that are scheduled to
be completed at Plant No.l.These include typical time
Flow from Reclamation Plant No. 1 is delivered to the or cycle based maintenance tasks such as adjustments
Orange County Water District(OCWD)for recycling and mechanical alignments,cleaning and tightening of
via the Ground Water Replenishment System(GWRS). electrical equipment,calibration of sensors and meters,
During 2015 the expanded plant came on line,with changing of lubricants and filters,exercising equipment,
capacity to deliver an additional 30 million gallons per rebuilds and regulatory testing.In addition,staff will
day for a total of 130 million gallons per day. be utilizing predictive technologies such as vibration
analysis to measure imbalance in rotating equipment,
During fiscal year 2015-16,more than 4,200 preventative thermography to measure excessive heat,oil analysis
maintenance activities were performed at Plant No. 1. to predict failure of lubricants,and ultrasonic to detect
In addition to these routine activities,the following leaks as well as deterioration and short-circuiting in
maintenance and repair activities were completed electrical equipment.Other major planned activities for
during the year: fiscal year 2016-17 at Reclamation Plant No. 1 include:
• Completed the arc flash evaluation project to ensure . Completion of the arc flash and protective relay
the safety of workers servicing electrical equipment. work,including labeling of assets and acting on
• Continued assessment and evaluation of proper recommendations from the evaluation completed
settings of protective relays to ensure the safety of last year,to ensure the safety of workers servicing
electrical equipment.
workers servicing electrical equipment.
. Replacement of eight foul air scrubber atmospheric
• Initiated steps to replace the foul air scrubber analyzer units that monitor compliance with South
atmospheric analyzer units that monitor compliance Coast Air Quality Management District(SCAQMD)
with South Coast Air Quality Management District requirements and feed chemicals into the scrubbers.
(SCAQMD)requirements and feed chemicals into the
scrubbers including completing a service contract to . Major overhaul of one Central Generation(CenGen)
optimize installation and purchasing of analyzer units. Engine.
. Rebuilt one of the four Steve Anderson Lift Station . Overhaul of one cake conveyor and one belt press for
pumps that transfer Flow tributary to Treatment Plant biosolids dewatering.
No.2 into Reclamation Plant No. 1.
. Major service on two blowers that service the ASl
secondary treatment facility.
18
FISCAL YEARS 2010-17 AND 2017-18 BUDGET
. Replacement of the vane bushings on three of the A project closely tied to the solids dewatering facility is
ASl blowers. the Digester Rehabilitation(Project No.P1-100)which
is rehabilitating 12 digesters.The project will refurbish
. Servicing of emergency generators to ensure aged storage tanks,as well as handle the increased
continuity of operations. volume of solids more efficiently and with greater
. Replacement of 23 outdated atmospheric monitoring reliability.The sludge pumping,heating,structural,
units in the digester facility areas. mechanical,and electrical and control systems will
all be rehabilitated,which will increase the quality of
Total estimated costs:$5,105,970 the sludge production.By rehabilitating our existing
digesters,we reduce the risk of failure and extend the
Reclamation Plant No. i Capital life of the assets,minimizing future expenditures.The
Improvement Projects: total project budget is$67 million.
These projects are intended to rehabilitate or reconstruct Treatment Plant No. 2:
major components of our treatment process to ensure
compliance with regulatory permits,and enhance water All flows entering Treatment Plant No.2 are treated
recycling and safety. to full secondary standards and then discharged four
miles offshore through our ocean discharge outfall.
One of the largest projects currently being designed During fiscal year 2015-16,the number of process
is the Headwork Rehabilitation at Plant No. 1 units in service at Treatment Plant No.2 was reduced
(Project No.P1-105).The facility is almost 30 years as additional flow was diverted to Reclamation Plant
old,so a comprehensive refurbishment is required No. 1 in support of the expanded GWRS. Average flow
in order to extend the life of the facility. The project treated at Plant No.2 was 65 million gallons per day. In
will rehabilitate systems including the metering and addition to more than 3,600 preventative maintenance
diversion structure,the bar screen building,the bin activities completed during fiscal year 2015-16,the
loading building,the main sewage pump station, following major activities were also completed at
the grit basins,the primary influent channels,the Treatment Plant No.2 during the year.
headworks odor control scrubbers,and electrical power
distribution and control systems.This project will also • Completed the arc flash evaluation project to ensure
replace the emergency pumping capacity that has been the safety of workers servicing electrical equipment.
provided by the original headworks pumping system , Continued assessment and evaluation of proper
dating back to the 1950s.The total budgeted cost for this settings of protective relays to ensure the safety of
project is$275 million. workers servicing electrical equipment.
While the Sanitation District generally has adequate , Completed major overhaul on one of five central
hydraulic treatment capacity,additional solids handling generation engines that supply two-thirds of the
capacity is needed.The Sludge Dewatering and Odor power for the treatment plant.
Control Project(No.P1-101)is necessary to support the
need for more capacity to thicken and dewater sludge . Overhauled two of the three gas compressors that
due to the conversion to full secondary treatment as well provide digester gas to the central generation facility
as increase flow to support the expansion of the GWRS. for producing electrical power and heat.
The 40-year old system has reached the end of its
useful life and,as such,will be replaced with a new and • Initiated steps to replace the foul air scrubber
improved facility that will increase cake dryness,which atmospheric analyzer units that monitor compliance
will reduce biosolids management cost.This will,in with South Coast Air Quality Management District
turn,improve sludge thickening to optimize the use of (SCAQMD)requirements and feed chemicals into the
existing digesters thus eliminating the need to construct scrubbers including completing a service contract to
new digesters.The project will also help us meet our optimize installation and purchasing analyzer units.
level of service goal by reducing odors.The project
budget is just under$188 million.
10
INFRASTRUCTURE ASSET MANAGEMENT
• Cleaned and replaced mechanical equipment on two Treatment Plant No. 2 Capital
digesters to improve mixing and detention time to Improvement Projects:
ensure the best possible reclamation of the biosolids.
• Removed debris from the by-pass flap gate discharge The Primary Treatment Rehabilitation Project(P2-98)
point into the Santa Ana River to ensure availability of will rehabilitate the primary clarifiers,influent pipes,
this discharge in the event of an emergency. construct new primary effluent pipes,and rehabilitate
and upgrade the odor control systems.These facilities
Replacement of outdated atmospheric monitoring date back to the late 1950s and are in need of seismic
equipment in the digesters and central generation and condition based upgrades. By replacing old
facility areas,originally scheduled for this year, structures and installing new systems,we will improve
was deferred to fiscal year 2016-17 due to the resiliency of our infrastructure and thus improve
changing priorities. our ability to provide service.This is anticipated to be a
Total costs:$5,124,823 very long duration project because the need to maintain
During fiscal year 2016-17,there are more than 4,300 treatment operations during the project. The total
preventative maintenance activities that are scheduled Project budget is$428 million.
to be completed at Treatment Plant No.2.These include Treating 100 percent of our influent to full secondary
typical time or cycle based maintenance tasks such treatment standards means there are more solids to
as adjustments and mechanical alignments,cleaning manage which has generated several projects to address
and tightening of electrical equipment,calibration of that need.A few are currently underway such as the
sensors and meters,changing of lubricants and filters, Solids Thickening and Processing Upgrades(Project
exercising equipment,rebuilds and regulatory testing. No.P2-89)which will be completed at the end of the
In addition,staff will be utilizing predictive technologies year.The Sludge Dewatering and Odor Control project
such as vibration analysis to measure imbalance in (No.P2-92)has started construction to replace the
rotating equipment,thermography to measure excessive current belt press dewatering system with a centrifuge
heat,and oil analysis to predict failure of lubricants.In dewatering facility that will remove a greater amount
addition to planned preventative maintenance,other of water from the sludge resulting in reduced disposal
major planned activities at Treatment Plant No.2 for costs for the Sanitation District.This$90 million project
fiscal year 2016-17 include: will be in construction through 2018.
• Completion of the arc flash and protective relay As we make improvements throughout the plant,it
work,including labeling of assets and acting on is imperative we pay attention to our ocean outfall
recommendations from the evaluation completed systems.Many components of the system such as the
last year,to ensure the safety of workers servicing pipeline assets have already been addressed,so now
electrical equipment. we turn our attention to the pumping systems.Project
• Replacement of foul air scrubber atmospheric No.J-117,the Ocean Outfall System Rehabilitation,
analyzer units that monitor compliance with South will refurbish the Ocean Outfall Booster Station. This
Coast Air Quality Management District(SCAQMD) includes rehabilitation of the mechanical,electrical,and
requirements and feed chemicals into the scrubbers, civil systems which will extend the life of the facility and
as required. increase the efficiency of the system. In addition,a low
• Clean and replace mechanical equipment on two flow pump station will be added due to our increased
digesters to improve mixing and detention time to water recycling rates,which will reduce our outfall flows
ensure best possible reclamation of the biosolids. below the capacity of the current very large pumps.The
budget for this project is$88 million.
• Replacement of five outdated atmospheric monitoring
equipment in the digesters facility areas,as required, As part of the long-term CIP planning efforts,several
and complete replacement in the central generation studies are currently underway evaluating various
facility areas. areas of the plants and the collection system to
Total estimated costs:$4,291,204 determine their condition,and identify deficiencies
20
FISCAL YEARS 2010-17 AND 2017-18 BUDGET
or improvements needed.These studies include the Planned activities for fiscal year 2016-17 for CAMP
Primary Treatment Area Study and the Bay Bridge include the following:
Pump Station Relocation Study to help identify how to
best address and manage the improvements for these • Follow the CAMP Five-Year Plan by area and,for
two important components of our system.We also have each area,identify the assets,adding preventative
studies focusing on topics such as:Effluent Reuse,which maintenance tasks for each asset into Maximo.
coincides with Board of Director's strategic goal for . Continue to update the Reliability Maintenance Data
future water recycling;the Odor Control Master Plan, Management System.
which will help identify areas of improvement to better
define our level of service;and the Biosolids Master . Continue to update the Reliability Maintenance
Plan.As these studies evolve,projects will be refined or Housekeeping Plan,including the addition of
created to improve our systems. an equipment rotation plan and a cleaning and
Civil Assets Maintenance flushing plan.
Program • Pipeline cleaning and vactoring.
The Civil Assets Maintenance Program(CAMP) • CCTV inspections.
covers the predictive,proactive,and corrective . Cathodic protection and coatings.
maintenance tasks for all OCSD assets at all its
facilities located at Plants No. 1 and No.2,as well . Corrosion assessment and support.
as all OCSD pump stations and its entire collection
system to insure that OCSD civil assets meet design Estimated total costs:$2,471,000
life expectancy and will complement the existing
maintenance programs for mechanical,electrical and
instrumentation maintenance.In addition,the plan
ensures the assessment of all of primary and critical
equipment required to meet OCSD's main mission of
protecting the public health and environment.Besides
developing in-house capabilities to better monitor and
maintain these assets,the program entails utilizing
consultants and contractors for program development
and implementation.Repairs of the assets are planned
and scheduled based on condition and criticality,and
performed by staff or contracted services.
During fiscal year 2015-16,CAMP completed the
following activities:
. Development of a Five-Year Plan
• Development of Reliability Maintenance Data
Management System:developed an overall system
architecture to track and locate all asset data
through the Maximo Computerized Maintenance
Management System(CMMS).
. Development of a Reliability Maintenance
Housekeeping Plan,including a valve and gate
exercising program.
Total costs:$200,000
21
CAPITAL IMPROVEMENT PROGRAM
CIP Budget Request Summary process,each project's schedule,staff resources,total
project cost,cash flow and risks are assessed to confirm
Each year,the Board of Directors,through their the budgetary requirements.The validated CIP includes
committee process,reviews and approves the Capital 81 active and future capital projects with a 10-year
Improvement Program(CIP)prepared by staff for both expenditure of$2.4 billion.
sewage collection system projects(collections)and the
joint works treatment and disposal system projects. The proposed 2016-17 CIP budget is organized by
treatment process. The funds requested for the current
Many of the District's projects take several years to CIP budget total$190.3 million,which is part of an
complete the planning,design and construction cycle. overall total CIP budget of$3.3 billion for active and
The budget for a construction project covers the life future projects.
of the project. This budget is reevaluated each year
for the purpose of managing annual cash flows. Thus, Following is a table of the fiscal yen 2016-17 proposed
many of the projects in the CIP Budget for 2016-18 are CIP budget,by project phase,in millions:
continuing projects that were approved in prior years.
2016-17
The Asset Management Program,within the Planning Project Status CIE Budget
Division,continues assessing the condition of the Planning $ 11.0
District's existing assets and systems to ensure that these Design 52.3
assets and systems can provide the necessary level of Construction 127.0
service. The Planning Division will continue to review Total Gross CIE Budget 190.3
and update the ongoing and future CIP to appropriately Less:Savings and Deferrals (19.0)
manage the risks associated with asset or system failure.
This year several projects were delayed,consolidated CIP Net of Savings/Deferrals $ 171.3
and rescoped to help ensure that the CIP is delivered in
the most efficient way possible.The Asset Management There are currently 11 projects in the Planning Phase
Program will continue these efforts and will continue to with proposed capital outlay spending in 2016-17.Two
define the future CIE project requirements not currently of the larger 2016-17 cash flow projects in the Planning
included on the CIE list but are anticipated within the Phase are the Process SCADA Replacement Study and
long-term financial plan to ensure effective and efficient the Biosolids Master Plan,which is one of the planning
operations in the future. studies within the Master Studies Program.The current
year projected expenditures for these two projects are
Four new projects are proposed for addition to the $1.3 million and$2.9 million,respectively.
2016-2018 budget to rehabilitate the Gisler-Red Hill
Currently,there are 39 projects in the Design Phase
Interceptor,relocate the Banning Gate at Plant No.2, with proposed capital outlay spending in 2016-17.
improve odor at various Newport Beach pump stations, The two largest projects in the Design Phase are the
and evaluate the steps necessary to replace District's
process SCADA system.These CIP projects increase Rehabilitation of Western Regional Sewers and the
the amount of the CIP by$15.9 million.However,these Headworks Rehabilitation and Expansion at Plant
projects will be funded from OCSD's existing budget No. 1 with projected current year expenditures of$16.0
and will not impact OCSD user rates. million and$6.7 million,respectively.
In conjunction with preparation for the 2016-18 Budget, There are currently 31 projects in the Construction
District staff have developed and reviewed with the Phase with proposed capital outlay spending in
Board of Directors a capital program to deliver the 2016-17.The two most significant projects in the
levels of service included in the District's Five-year construction phase are the Sludge Dewatering and Odor
Strategic Plan. Control at Plant No.2 and the Newhope-Placentia
Trunk Replacement with projected fiscal year 2016-
District staff has also validated all active and future CIP 17 expenditures of$23.5 million and$20.9 million,
projects to ensure that the project scopes of work and respectively.
cost estimates were accurate. Through the validation
22
FISCAL YEARS 2010-17 AND 2017-18 BUDGET
Standard contingency factors have been applied to
improve cost estimates.The rates of 30,20,and 10
percent have been applied respectively to the estimates
made during the project development,design,and
construction project phases. This reflects standard
practice for estimating construction project costs.
Each project went through an extensive validation and
prioritization process.Projects have been prioritized
based on risk exposure.Projects that would present a
higher risk or disproportionally higher future cost if
they were delayed are given a higher priority.
FISCAL YEAR 2016.17 FISCAL YEAR 2017.18
CIP Outlays by Process CIP Outlays by Process
Total = $190.3 Million Total = $153.0 Million
Support
$15.7M Support
Improved 3% Improved $1
Treatment Treatment 13.0%
.0%
$32.6M $30.3M
17.1% 19.8%
Additional
Additional Capacity
Capacity Replacement/ $19.1M
$44.SM Rehabilitation 12.5%
23.5% $972M Replacement/Rehabilitation
51.1% $83.71V
54.7%
-FISCAL YEARS 2016-17 AND 2017-18 23
DEBT FINANCING PROGRAM
Debt Financing Dedicated Funding Source
Due to the potential magnitude of the capital In 1992 and 2004 the Board of Directors formalized the
improvement program,it may be necessary that dedication of certain funding sources. To ensure the
the District utilize debt financing to meet its total continuation of favorable credit ratings,revenues were
obligations.Debt financing allows the District to meet dedicated to debt service in the following order:
projected construction schedules while achieving the
lowest possible user fees,as well as long-term stability in 1. Ad valorem property taxes
future sewer service fee rates. 2. Sanitary sewer service charges
3. Other revenues
Certificates of Participation This apportionment of the ad valorem tax was
(COP) consistent with and pursuant to the Revenue Program
The primary debt financing mechanism used is adopted in April 1979 to comply with regulations of the
Certificates of Participation(COP).COPS are Environmental Protection Agency and the State Water
repayment obligations based on a lease or installment Resources Control Board and in accordance with COP
documents and Board policy.
sale agreement The COP structure was selected over
other structures because COPS are not viewed as debt by The District Maintains AAA Bond
the State of California,as the purchaser does not actually
receive a"bond,"but rather a share in an installment Rating
sale arrangement where the District serves as the The DistricPs bond rating is"AAA"from both Standard
purchaser.COPS can be issued with fixed or variable &Poors and Fitch Ratings.An"AAA"Rating is the
interest rates. highest for a government agency.In order to maintain
As of July 1,2016,the total outstanding COP this rating,the District adheres to its debt policy and
indebtedness will be$1.1 billion. coverage ratios requirements.This Board-adopted
policy serves as the agency's guide in the management
Build America Bonds Financings of existing debt and in the issuance 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 Obligations,Series The District has contractual covenants within the
2010C in November 2010 as"Build America Bonds" existing COP agreements which require minimum
(BABs)fixed rate debt. coverage ratios of 1.25.The minimum coverage ratio
is the ratio of net annual revenues available for debt
The American Recovery and Reinvestment Act of service requirements to total annual debt service
2009 created a new financing product,BABs,for the requirements for all senior lien COP debt.The coverage
municipal issuer. BABs are issued as higher interest ratio for senior lien COP debt is being proposed to
taxable bonds;however,the U.S.Treasury provides a remain above 3.00 for fiscal years 2016-17 and 2017-18.
35 percent subsidy on interest payments. The net cost,
after accounting for the 35 percent subsidy payment, Future Financings
frequently results in lower net costs to the issuer,
specifically in the maturity years beyond ten years. No new money debt issuances are being proposed over
the next two fiscal years as the$2.4 billion in future
On March 1,2013,the federal government implemented replacement,rehabilitation,and refurbishment projects
certain automatic spending cuts known as the sequester. anticipated over the next ten years will be adequately
As a result of the sequester,federal subsidy payments funded through current sewer service fee charges and
on BABs were reduced by 8.7 percent,7.2 percent, existing reserves.
7.3 percent,and 6.8 percent for the federal fiscal years
ended 2013,2014,2015,and 2016,respectively.
24
R
/ I
. � r J6 v� yvr � _ +. �►
It
f
�E �lOW
OPERATING EXPENSES
Summary of Operating and Maintenance Expenses
(in millions)
2014-15 2015-16 2016-17 2017-18
Category Actual Projected Proposed Proposed
Salaries and Benefits $94.2 $89.9 $89.3 $90.6
Contractual Services 22.2 23.5 24.8 22.6
Operating Materials&Supplies 15.4 16.4 16.7 17.4
Repairs and Maintenance 11.6 13.4 14.2 16.1
Utilities 7.2 8.5 8.9 10.2
Professional Services 3.2 3.0 4.2 4.2
Other Materials,Supplies,Services 1.7 1.7 3.4 3.8
Self-Insurance Requirements 2.2 2.5 2.5 2.6
Administrative Expenses 1.4 1.5 1.8 1.8
Training and Meetings 0.8 0.8 1.2 1.2
Research and Monitoring 0.8 0.7 0.8 0.9
Printing and Publications 0.3 0.3 0.3 0.4
Cost Allocation (17.3) (18.3) (19.2) (19.4)
Total Operating Expenses $143.7 $143.9 $148.9 $152.4
Salaries, Wages & Benefits - croup Insurance-These expenses include OCSD's
$89.3M share(approximately$13,900 per employee)of
employee medical plan benefits for the indemnity plan,
Salaries&Wages-The proposed budget for Full Time prepaid HMO plans,dental insurance plan,and life and
Equivalent(FTE)positions for both 2016-17 and 2017- disability insurance premiums.The proposed budget
18 reflects an increase of three FTEs from the 2015-16 includes a 5.0 percent increase for medical plans over
approved staffing level of 624.0 FFEs to 627.0 FFEs. the prior year projected.
Provision has been made in these salary projections to
comply with the terms of the most recently adopted Contractual Services - $24.8M
Memorandums of Understanding. The treatment plants currently produce about 775 wet
Retirement-OCSD employees are members of tons per day of biosolids which are recycled in
the Orange County Employees'Retirement System California and Arizona.Nearly 50 percent of biosolids
(OCERS).Information from OCERS indicates that are currently allocated to composting,40 percent is used
the employer's required contribution rates will be on farms for soil enrichment,and 10 percent is sent to
decreased in fiscal year 2016-17 from 20.75 percent a local landfill that produces methane. In 2016-17
to 13.09 percent as a result of the District's additional and 2017-18,biosolids budgets will be approximately
payment in 2015-16 to reduce the unfunded actuarial $17.2 million and$14.0 million respectively,
accrued liability.In addition,OCSD pays 3.5 percent of approximately 69 percent of the Contractual Services
the employee required contribution. budget. Other residuals solids and waste includes
disposal costs for grit and screening waste,digester
cleaning waste,and hazardous materials.
20
FISCAL YEARS 2010-17 AND 2017-18 BUDGET
This category also includes appropriations for grounds Planned repairs include:digester cleaning($1.3M);
keeping,janitorial,security,toxic waste removal,outside CenGen engine overhaul($1.3M);service of aeration
laboratory,trash pickup,plant site sweeping,closed blowers($400K);electrical protective relay maintenance
circuit television pipeline inspections,line cleaning,and ($325K);interplant gas line maintenance($185K);and
temporary services. emergency generator maintenance($150K).
Operating Materials & Supplies - Utilities - $8.9M
$16.7M During fiscal year 2016-17,the overall cost for utilities,
Chemical Coagulants-Anionic polymer is added to a significant component of the operating budget,is
the influent wastewater along with ferric chloride to anticipated to increase by 5.2 percent over the projected
improve solids removal efficiencies in the primary 2015-16 costs and then increase by$1.3 million,or
clarifiers.Ferric chloride is also added to the digesters 14.8 percent,in 2017-18.
for solids odor control.Cationic polymer is added Natural Gas-Natural gas is purchased from two
to digested sludge prior to dewatering to aid in providers for different purposes.Purchases from a gas
coagulation,improving the sludge and water separation
process.Cationic polymer is also added to the waste marketer are used to supplement the digester gas that
activated sludge dissolved air flotation thickeners is used to run the Ce budgeGen facilities.The fiscal year
(DAFTs)to improve solids coagulation. higher t natural gas budget is 5- 1 costs 5.3 percent
higher than the projected 2015-16 costs. With the
The costs for this group of chemicals are expected to new emission control systems installed on all GenGen
decrease by$879,000(14 percent)in 2016-17 printarfly engines,natural gas usage is expected to increase during
due to the award of new purchase agreements for ferric the summer months in order to reduce peak electricity
chloride with lower pricing. demand.
Odor Control Chemicals-The District uses hydrogen Electricity-Electricity is the largest utility cost incurred
peroxide,sodium hydroxide(caustic soda),sodium by OCSD.Purchased electricity is used in running the
hypochlorite(bleach)and muriatic acid as the primary plant processes as a supplement to power produced in
odor control chemicals in the treatment plants.Ferrous the central generation facilities.
chloride,magnesium hydroxide,calcium nitrate,and The 2016-17 proposed budget is five percent higher
caustic soda are the primary odor control chemicals than the 2015-16 projected costs due to rate increases.
used in the collection system. The costs are expected to further increase in 2017-18 by
The 2016-17 and 2017-18 budgets for these chemicals $1.2 million due to the startup of the sludge dewatering
are$8.2 million,and$8.7 million,respectively. The facilities and a projected four percent rate increase.
collection system chemical costs are expected to increase With the completion of the emission controls system
due to the replacement of Irvine Ranch Water District installation,staff have the opportunity to optimize
(IRWD)injection points using ferrous chloride with an power usage by either purchasing supplemental natural
injection point using the more expensive magnesium gas or electricity,whichever costs less.
hydroxide and calcium nitrate to mitigate collection
system odors. Water-Water is used throughout the treatment plants.
Repairs and Maintenance — Potable(drinking)water is supplied by the Cities of
p Fountain Valley and Huntington Beach;reclaimed
$14.2M water is supplied by the GAP;and plant water is
This item,which is for parts and services for repair disinfected secondary effluent.
of plant and collection facilities and annual service . GAP water is secondary treated effluent from
contracts,is expected to increase by approximately the Sanitation District that is further treated by
$839,000 or 6.2 percent in 2016-17,followed by an the Orange County Water District.GAP water is
increase of 1.9 million or 13.3 percent in 2017-18. significantly less expensive than potable water and is
27
OPERATING EXPENSES
used in the process wherever possible.The major uses flood,subject to a self-insurance retention of$250,000.
of GAP water include cooling water,solids handling, The District is partially self-insured for earthquake,
and landscaping.By agreement,OCSD receives up but does carry$25 million in coverage on seven key
to 1,120 acre feet per year of GAP water at no charge. structures with a$5 million deductible.The District
The proposed budget is$5,000 for each of the next also has a$50 million sublimit for builder's risk under
two years. the property insurance program to ensure upcoming
. Potable Water-The potable water budget includes construction projects are adequately covered.
water supplied by the City of Fountain Valley for An appropriation of$1.1 million for in-lieu premium
Plant No. 1 and the City of Huntington Beach for contribution charged to operations is recommended for
Plant No.2.Approximately five percent of the potable the Property and General Liability Program.
water at Plant No. 1 is used for domestic uses and less
than one percent is used for irrigation.The majority of This will serve to maintain the reserves balance.
the irrigation at both plants uses reclaimed water.Less Administrative Expenses - $1.8M
than one percent of the potable water used at Plant
No.2 is for domestic uses due to the relatively small These accounts include supplies,postage,technical
number of employees at Plant No.2.The proposed journals and publications,forms,small office
total potable water cost for 2016-17 is$646,000,a three equipment,and small computer items that cost less than
percent increase from the projected 2015-16 costs. $5,000 per item and exclude items that are capitalized.
Professional Services - $4.2M Training and Meetings - $1.2M
Professional Services includes General Counsel,special Board member and staff travel has been significantly
labor counsel,audit and miscellaneous accounting reduced in recent years.This category also includes
services,legislative advocacy,engineering,and other meetings of professional societies;ongoing technical
technical consulting services. training and materials for staff;training for
computerized plant monitoring and control systems,
Other Material, Supplies,
MAXIMO(a computerized maintenance management
Services - $3.4M system),Enterprise Resource Planning(ERP),and
This category of costs includes the in-lieu insurance other"high tech"equipment,processes and systems;
and training to allow for an adaptive and flexible work
premium used to maintain the level of accumulated
force.While OCSD continues to place an emphasis
reserves for the property and general liability self-
insurance programs.This in-heu cost for 2016-17 is effective safety training, well as technical,leadership
proposed at$1.1 million. and management training,the training budge[has
been reduced from previous highs of 2.0 percent to
Expenses not chargeable to other categories,such approximately 1.8 percent of budgeted regular salaries
as freight and miscellaneous items,and annual due to savings achieved in part through the use of
regulatory fees assessed by the South Coast Air Quality online courses.
Management District,are recorded with this category. Research and Monitoring - $0.8M
Insurance - $2.SM Research and monitoring expenditures consist of
The District's outside excess general liability insurance contract services to carry out the extensive ocean
coverage is$40 million per occurrence with self- monitoring program required by the EPA under
insurance retention of$500,000. provisions of the District's NPDES permit;air quality
monitoring costs;the District's contribution to the
The District's property insurance coverage is Southern California Coastal Water Research Project
$1 billion for perils of fire and$300 million for perils of (SCCWRP)being conducted under a joint power
28
FISCAL YEARS 2010-17 AND 2017-18 BUDGET
agreement with other Southern California municipal improve public education programs about the District's
dischargers;and also provide for increased operational activities is also reflected in the budget for this line item.
and ocean research and evaluation to develop optimum This group of accounts also includes costs for photo
operating parameters in treatment plants. processing,advertisements,and notices.
Printing and Publication - $0.3M Cost Allocation - ($19.2M)
The budget provides for in-house and outside This represents direct labor and benefit charge outs and
reproduction costs and reflects an expanded materials,supplies and services cost allocation to the
management information system and administrative capital projects where the related work was performed.
requirements,as well as a continuing demand by
the public and regulatory agencies for information.
The continuing effort of the Public Affairs Office to
moo
i
ORANGE COUNTY SANITATION DISTRICT I EXECUTIVE SUMMARY FiSCAI YFAFS 911E 1 AND 2717 ' 29
DEPARTMENTS SUMMARY
Expenses by Department (in millions)
Projected Proposed Percent Proposed Percent
Department 2015-16 2016-17 Change 2017-18 Change
Administration Units:
General Manager's Office $3.4 $4.5 32.4% S4.6 2.2%
Human Resources 5.7 7.1 24.6% 7.5 5.6%
Administrative Services 17.7 17.5 (1.1%) 18.5 5.7%
Sub-Total $26.8 $29.1 8.6% $30.6 5.2%
Operating Units:
Facilities Support Services 18.7 0.0 (100.0%) 0.0 0.0%
Environmental Services 0.0 17.1 100.0% 17.5 2.3%
Engineering 7.8 2.4 (69.2%) 2.3 (4.2%)
Operations&Maintenance 88.1 97.8 11.0% 99.5 1.7%
Sub-Total $114.6 $117.3 2.4% $119.3 1.7%
Total $141.4 $146.4 3.5% $149.9 2.4%
Staffing by Department (FTEs)
Projected Proposed Percent Proposed Percent
Department 2015-16 2016-17 Change 2017-18 Change
Administration Units:
General Managers Office' 15.00 15.00 0.0% 15.00 0.0%
Human Resources 27.00 27.00 0.0% 27.00 0.0%
Administrative Services 98.00 99.00 1.0% 99.00 0.0%
Sub-Total 140.00 141.00 0.7% 141.00 0.0%
Operating Units:
Facilities Support Services 63.00 0.00 (100.0%) 0.00 0.0%
Environmental Services 0.00 91.00 100.0% 91.00 0.0%
Engineering 127.00 116.00 (8.79/6) 116.00 0.0%
Operations&Maintenance 294.00 279.00 (5.1%) 279.00 0.0%
Sub-Total 484.00 486.00 0.4% 486.00 0.0%
Total FTEs" 624.00 627.00 0.5% 627.00 0.0%
'FTE totals exclude Management Discretion positions thatare authorized but used only on a temporary basis to facilitate
the replacement of key positions. A total of three Management Discretion positions are included in the proposed budget for
FY2016-17,however, total filled positions will not exceed 627 FTEs at anypoint in time.
30
FISCAL YEARS 2010-17 AND 2017-18 BUDGET
Administration Units Operating Units
Office of the General Manager Environmental Services
Budget $4.SM - Staffing 15 FTE Positions Budget $17.1 M - Staffing 91 FTE Positions
The Office of the General Manager provides general The Environmental Services Department is a newly
oversight of all District operations and incorporates created department that manages all environmental
functions in the areas of Public Affairs and Board monitoring,regulatory,compliance and reporting
Services.This office reports directly to the Board of elements to ensure that the District meets the
Directors. requirements of federal,state and local regulations for
treated sewage discharge into the ocean,water recycling,
Human Resources air emissions,industrial waste,sewer system operations,
Budget $7.1 M -Staffing 27 FTE Positions land use controls and biosolids and stormwater
management.
The Human Resources Department works with
management and employees to ensure an effective Engineering
and productive employment relationship.The Budget $2.41101 - Staffing 116 FTE Positions
department also provides risk management services
to the organization to create a safe,healthy and secure The Engineering Department is responsible for
environment for staff,contractors,and visitors. the planning and execution of the District's capital
improvement program and asset management program.
Administrative Services The budget reflects the transfer out of 14 positions to
Budget $17.5M - Staffing 99 FTE Positions other departments,partially offset by the addition of
three new positions.
The Administrative Services Department maintains
financial oversight and administration of all District Operations and Maintenance
funds and accounts and is responsible for contract Budget $97.81101 -Staffing 279 FTE Positions
administration and procurement,and oversees all
District computer,networking and customer support The Operations and Maintenance Department is
issues.The budget reflects the transfer in of one position responsible for the operation and maintenance of the
from another department District's two wastewater treatment plants as well as the
sanitary sewer system pipeline and pumping facilities.
The department also provides fleet management services
for the District. The budget reflects the transfer out of
15 positions to other departments.
31
GENERAL MANAGER'S OFFICE
M.
Human
Resources
Board of
Directors
Administrative
General General
General
Counsel
Office Manager
Environmental
Services
Engineering
Opemticns&
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 Bond 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
FISCAL YEARS 2010-17 AND 2017-18 BUDGET
Operating Expense
2014-15 2015-16 2015-16 2016-17 2017-18
Category Actual Budget Projected Proposed Proposed
Personnel $2,161,806 $2,462,470 $2,199,500 $2,286,100 $2,336,300
Supplies 243,943 327,540 267,730 355,590 362,690
Professional/Contractual Services 335,085 630,500 777,980 728,900 642,900
Research&Monitoring 0 0 0 0 0
Repairs&Maintenance 847 1,500 0 0 0
Utilities 110,824 136,000 116,000 122,000 137,000
Other 91,698 1,033,420 77,890 1,115,270 1,151,970
Cost Allocation (81,781) (92,500) (83,040) (57,240) (57,240)
Total $2,862,422 $4,498,930 $3,356,060 $4,550,620 $4,573,620
Budget Overview
Authorized FTE
The fiscal year 2016-17 budget for the General Manager's Office reflects Positions
an increase of 1.1 percent over the current budget.The increase is Managers.......................... ..........
primarily due to increases in costs for legal services,software program Supervisors/Professionals...........8.00
consulting services,and temporary services in addition to the transfer Administrative/Clerical.................5.00
of funding for the National Water Research Institute membership
from the Engineering Department.These increases were partially offset Total............................................15.00
b reductions in retirement costs,advocacy efforts,and training and 'Frerorais e"`r°°e roWwn c 0be moreererroc
y e7' g p0smw,s wnron are fudholM ro Eeuseaonyon
meeting expenses. a rampereynsar ro ramiram n�.apraaemanmr
keyposilions.
Performance Objectives / Measures Staffing Trends
• Ensure that the Board approved Strategic Plan is implemented.
• Provide leadership development opportunities reaching at least 70% i s oo u.o0
of staff. no
12.00 12.00
• Maintain the Special District Leadership Foundation(SLDF)District
Transparency Certificate of Excellence.
2012-13 2013-14 2014-15 2015-16 2016-17
• Respond to 90%of public records requests within seven business days.
FISCAL YEARS 2016-17 AND 2017-18 33
HUMAN RESOURCES DEPARTMENT
General
Manager's
OffiHuman
Risk
Management I
ce
Resources
Administration
Board of
Dnectors
Administrative
General Services
Counsel General
Office Manager
Environmental
Services
Engineering
Operations&
Maintenance
Service Description
Human Resources is a full service department responsible for all aspects of Human Resources administration and
management to ensure an effective and productive workplace and employment relationship. The Human Resources
Department is committed to a workplace grounded in fair and equitable employment decisions and practices. This
department serves as the in-house advisor to the General Manager,executive staff,OCSD departments,and all staff.
Delivering services with a high-level of customer satisfaction is a key objective.
Human Resources Administration oversees all human resources functions,including Benefits Administration,
Classification and Compensation,Employee/Labor Relations,Employee Development/Performance Management,
and Recruitment and Selection.Benefits Administration manages,maintains,and administers benefits for
employees,including medical,dental,vision,and life insurance plans,Employee Assistance Program,retirement,
voluntary benefits,and reasonable accommodations. Classification and Compensation is a vital function that
establishes new classifications and salaries,while also reviewing existing classifications to determine appropriate
placement within OCSD departments,including salary surveys and studies.Employee and Labor Relations offers
professional assistance in various areas of the employee and labor relations field. Human Resources manages,
interprets,and administers District policies and collective bargaining agreements while ensuring compliance with
local,state,and federal regulations. Employee Development/Performance Management manages and coordinates
District-wide legally mandated and development training programs;and manages employee performance through
consulting management regarding performance appraisals and performance improvement plans.Through the
Recruitment and Selection program,the District seeks to attract,hire,and retain the best qualified employees in a
manner that is fair,equitable and merit-based.
Risk Management/Safety/Security protects the finances and human resources of the District.It identifies and
manages potential risk to the organization and provides solutions for mitigating or reducing the risk;and manages
the District's Workers'Compensation Program and provides a secure,safe and healthy work environment for OCSD
staff,contractors,and visitors. The division also provides training to identify and control risk,and cost-effectively
address safety,health and security issues.
34 I 08ANGE COM
FISCAL YEARS 2010-17 AND 2017-18 BUDGET
Operating Expense
2014-15 2015-16 2015-16 2016-17 2017-18
Category Actual Budget Projected Proposed Proposed
Personnel $3,345,017 $5,473,600 $4,301,780 $4,409,600 $4,484,300
Supplies 104,626 546,110 521,220 682,370 687,910
Professional/Contractual Services 718,293 1,655,800 1,438,390 1,622,000 1,642,400
Research&Monitoring 0 0 0 0 0
Repairs&Maintenance 0 3,550 3,050 28,050 28,050
Utilities 0 0 0 0 0
Other 27,490 629,580 608,300 1,255,920 1,576,120
Cost Allocation (681,160) (1,118,100) (1,119,920) (931,720) (931,720)
Total $3,514,266 $7,190,540 $5,752,620 $7,066,220 $7,487,060
Budget Overview
Authorized FTE
The fiscal year 2016-17 budget for the Human Resources Department Positions
reflects a 1.7 percent decrease from the current budget.The decrease Managers......................................2.00
is primarily due to a reduction in budgeted retirement costs.The Supervisors/Professionals.........22.00
decrease is partially offset by an increase in the general liability Administrative/Clerical.................3.00
insurance in-lieu premium expense and adjustments to the district-
wide cost allocation plan. Total............................................27.00
Performance Objectives / Measures Staffing Trends
27.00 27,00
• Continue with development and implementation ofeffective
workforce planning/development and succession planning
strategies. 1800
16.00
• Update and implement recruitment plan to reduce vacancies by 1600
June 30,2017.
• Review all training requirements and meet the training]eve]of 13012-13 2013-14 201415 2015-16 2016-17
service of 45 hours per employee.
• Complete labor negotiations with all bargaining units by
December 31,2016.
• Ensure 100%of Safety Compliance Training is completed.
• Implement Leading Safety Indicators to reduce injuries to
employees.
• Manage operating expenditures to within 96 to 100 percent of the
approved budget.
ISCAL YEARS 2016-17AND 2017-18 35
ADMINISTRATIVE SERVICES DEPARTMENT
General
Managers
Office
Human
Resources
Board of
Directors
General General
Counsel Manager
Office
Environmental
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.'Ihe department includes four
divisions:
Administrative Services provides leadership and oversight to all Administrative Services divisions.
Financial Management oversees and administers all OCSD's fonds 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.
30
FISCAL YEARS 2010-17 AND 2017-18 BUDGET
Operating Expense
2014-15 2015-16 2015-16 2016-17 2017-18
Category Actual Budget Projected Proposed Proposed
Personnel $16,071,788 $14,188,900 $13,824,000 $13,363,400 $13,563,000
Supplies 1,431,769 1,354,360 1,141,120 1,233,960 1,581,870
Professional Contractual Services 2,032,272 1,468,570 1,276,910 1,289,400 1,578,900
Research&Monitoring 0 0 0 0 0
Repairs&Maintenance 1,342,205 1,354,140 2,006,260 2,042,000 2,142,000
Utilities 315,172 385,000 350,000 400,000 400,000
Other 654,831 64,820 80,280 109,610 121,610
Cost Allocation (1,441,269) (1,117,710) (1,001,310) (942,320) (942,320)
Total $20,406,768 $17,698,080 $17,677,260 $17,496,050 $18,445,060
Budget Overview
Authorized FTE
The fiscal year 2016-17 budget for the Administrative Services Positions
Department reflects a 1.1 percent decrease from the current budget. Managers......................................5.00
The decrease is primarily due to a reduction in budgeted retirement Supervisors/Professionals.........56.00
costs,in-house reproduction services,and other professional services. Administrative/Clerical...............36.00
The decrease is partially offset by increased costs for repairs and
maintenance,service maintenance agreements,and adjustments to the Other......... ............................2.00
district-wide cost allocation plan. Total............................................99.00
Performance Objectives / Measures Staffing Trends
• Manage operating expenditures to within 96 to 100 percent of the
approved budget.
• Comply with the California State Government Code 100 percent of 110.75 110.00 111.00
the time with all treasury investments.
• Submit the annual sewer service fee property parcel database to the 98.00 99.00
County in time for placement on annual secured property tax bills.
• Process all approved sewer service fee refund requests within 45 days, 2012-13 2013-14 201415 2015-I6 2016-17
90 percent of the time.
• All debt service payments will be paid electronically,on the actual due
dates,and error free too percent of the time.
• Continue the warehouse inventory 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.
EARS 2016-17 AND 2017-18 37
ENVIRONMENTAL SERVICES DEPARTMENT
General
Managers
Office
Human
Resou es
Board of
Directors
17— Administrative Environmental
General ServicesServices
Counsel GeneralAdministration
Office ManagEnvironmental
er
Compliance
Laboratory&
Ocean
Monitoring
Engineering
Operations&
Maintenance
Service Description
The Environmental Services Department,a newly created department,manages all of OCSD's environmental
monitoring,regulatory,compliance and reporting elements to ensure that the District meets the requirements
of federal,state and local regulations for treated sewage discharge into the ocean,water recycling,air emissions,
industrial waste,sewer system operations,land use controls and biosolids and stormwater management The
Environmental Services Services Department consists of three divisions:
Environmental Services Administration provides leadership,support,and management oversight for the
Department in order to accomplish OCSD's Strategic Plan and departmental annual goals.
Environmental Compliance fulfills regulatory requirements with proper biosolids management,air quality controls,
federal pretreatment regulations,stormwater guidelines,non-industrial source control,and water reclamation and
reuse.This is done in the most cost effective,practical,and beneficial manner that meets regulatory requirements,
protects the Sanitation District's assets,employees,and ocean discharge.
Laboratory and Ocean Monitoring performs sampling,monitoring,analysis,evaluation and recommendations for
collection system,treatment processes,air samples,coastal water quality,marine sediments and the fish populations
within the influence of OCSD's wastewater discharge and comparison sites to evaluate and address related issues of
concern to the District in order to protect and preserve the environment and public health.
38
FISCAL YEARS 2010-17 AND 2017-18 BUDGET
Operating Expense
2014-15 2015-16 2015-16 2016-17 2017-1B
Category Actual Budget Projected Proposed Proposed
Personnel $0 $0 $0 $13,239,100 $13,387,300
Supplies 0 0 0 768,150 781,530
Professional/Contractual Services 0 0 0 881,000 966,800
Research&Monitoring 0 0 0 800,000 872,400
Repairs&Maintenance 0 0 0 255,000 270,000
Utilities 0 0 0 448,000 504,000
Other 0 0 0 778,370 793,240
Cost Allocation 0 0 0 (34,950) (34,950)
Total $0 $0 $0 $17,134,670 $17,540,320
Budget Overview
Authorized FTE
The fiscal year 2016-17 budget for the newly created Environmental Positions
Services Department is$17.1 million.The major cost items include Managers...... ....................3.00
salaries and benefits for 91 full-time equivalent(FTE)positions Supervisors/Professionals........63.00
reallocated from other departments,as well as costs for research and Administrative/Clerical.................9.00
monitoring,regulatory operating fees,laboratory chemical and supplies, Technical.....................................16.00
electricity,and legal services.
Total............................................91.00
Performance Objectives / Measures Staffing Trends
• Manage operating expenditures to within 96 to 100 percent of the 91.00
approved budget.
• Ensure that reporting divisions achieve 90%of individual
performance objectives.
• Ensure that all environmental compliance reporting requirements are
met on or before required submission dates. are, 0.00 0.00 0.
2012 13 2013-14 201415 2015-16 2016-1/
• Conduct audits of all major environmental permits at least once every
three years.
• Complete 100%of Safety Scorecard requirements each quarter.
"""'"' ""••••_.,"...._._.".."."_"."_ . _.,__.._..._ _......._.. FISCAL YEARS 2016-17 AND 2017-18 39
ENGINEERING DEPARTMENT
General
Manager's
Office
Human
Resources
Board of
Directors
Administrative
General Services
Counsel General
Office Manager
EnNronmental
Planning
Project
Management
Office
Civil&
Mechanical
Services
Operations& Engineering
Maintenance Electrical&
Service Description
The Engineering Department is responsible for the planning and execution of OCSD's Capital Improvement
Program and the Asset Management Program.The Engineering Department is comprised of five divisions:
Engineering Administration provides management to all Engineering Divisions.
Planning 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 Asset Management program to
ensure that required levels of service me 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.
Civil&Mechanical Engineering provides design and construction engineering,quality control inspection,and
other technical support for design and construction projects.
Electrical&Control Systems Engineering provides electrical and control system designs,ensures that projects are
properly and safely constructed,and provides process control SCADA system hardware,software and data network
support for collections and treatment plant processes that monitor,record,control,and operate our facilities.
40
FISCAL YEARS 2010-17 AND 2017-18 BUDGET
Operating Expense
2014-15 2015-16 2015-16 2016-17 2017-18
Category Actual Budget Projected Proposed Proposed
Personnel $21,037,728 $21,045,730 $20,229,400 $18,341,000 $18,594,200
Supplies 424,129 514,370 392,300 516,090 471,430
Professional/Contractual Services 1,383,448 551,000 765,600 500,000 430,000
Research&Monitoring 94,932 85,000 85,000 0 0
Repairs&Maintenance 1,096 0 2,040 21000 2,000
Utilities 0 0 0 0 0
Other 700,384 702,660 699,700 4,360 4,410
Cost Allocation (13,426,197) (13,355,500) (14,327,550) (17,010,000) (17,220,420)
Total $10,215,520 $9,543,260 $7,846,490 $2,353,450 $2,281,620
Budget Overview
The fiscal year 2016-17 budget for the Engineering Department reflects a Authorized FTE
75.3 percent decrease from the current budget.The decrease is primarily due Positions
to the reallocation of 11 FTE positions to other deparhnents,a reduction in Managers—.._...............................5.00
budgeted retirement costs,the transfer of regulatory operating costs to the Supervisors/Professionals........82.00
new Environmental Services Department and adjustments to the district- Administrative/Clerical..............29.00
wide cost allocation plan. Total..........................................116.00
Performance Objectives / Measures staffing Trends
• Expend minimum 90 percent of project annual Capital Improvement 125.00 123.00 123,00 127 00
Program cash flows for fiscal year 2016-17. 0
• Manage operating expenditures to within 96 to 100 percent of the
approved budget.
201213 2013-14 2014-15 2015-16 201617
• Ensure that reporting divisions achieve 90 percent of individual
performance objectives.
• Complete the Odor Control Master Plan in fiscal year 2016-17.
FISCAL YEARS 2016-17 AND 2017-18 41
OPERATIONS & MAINTENANCE DEPARTMENT
General
Managers
Office
Human
Resources
Board of
Directors
AAministrative
General Services
Counsel General
Office Manager
Environmental oPlantNo.
$eNlCee
Perot.ions
Plant No.2
Maintenance
Engineering
r�
Service Description
The Operations and Maintenance(O&M)Department is responsible for treating wastewater,reusing or disposing
of the treated wastewater and all residuals,providing maintenance support to all treatment facilities,operating and
maintaining the sanitary sewer system pipeline and pumping facilities,and for providing fleet management services.
The Department consists of seven divisions:
Operations and Maintenance Administration provides leadership and oversight to all O&M divisions.
Collection Facilities Operations&Maintenance operates and maintains the regional facilities which include gravity
sewers and pumping facilities.
Fleet Services provides fleet and heavy equipment services and motor pool management to all OCSD staff.
Plant No. 1 and Plant No.2 Operations are responsible for the daily management of the wastewater treatment
processes,sludge and biosolids treatment and loading processes,power generation,and odor and air quality
control processes.Activities also include ensuring compliance with all regulatory permits,support of the Capital
Improvement Program,and coordination of construction and maintenance work Plant No. 1 Operations also
ensures the delivery of specification water to the 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
42
FISCAL YEARS 2010-17 AND 2017-18 BUDGET
Operating Expense
2014-15 2015-16 2015-16 2016-17 2017-18
Category Actual Budget Projected Proposed Proposed
Personnel $41,873,009 $42,634,100 $40,683,200 $37,650,600 $38,252,300
Supplies 9,118,904 9,978,000 10,160,520 16,337,150 16,900,820
Professional/Contractual Services 19,490,254 21,232,380 20,405,360 23,970,950 21,549,530
Research&Monitoring 715,922 745,000 635,000 0 0
Repairs&Maintenance 8,564,533 9,938,040 10,241,850 11,938.880 13,718,110
Utilities 6,054,294 6,501,160 7,384,380 7,942,240 9,192,670
Other 70,528 196,730 81,370 121,490 121,190
Cost Allocation (1,216,587) (914,520) (1,505,680) (205,800) (207,910)
Total $84,670,857 $90,310,890 $88,086,000 $97,755,510 $99,526,710
Budget Overview
Authorized FTE
The fiscal yar 2016-17 budget for the Operations and Maintenance Positions
Department reflects an increase of 8.2 percent over the current budget. Managers...... .............4.00
The increase is primarily due to increases in costs for odor control,other Supervisors/Professionals..........58.00
contractual services,repairs and maintenance,and electricity.These Administrative/Clerical..................6.00
increases were partially offset by reductions in costs for retirement, Technical.......................................1.00
solids removal,research and monitoring,laboratory chemicals and Operations&Maintenance.......210.00
supplies,and the reallocation of 15 FTE positions to other departments.
These budget changes reflect the District's reorganization that added Total..........................................279.00
Fleet Services and Collection System Operations and Maintenance
functions to the Operations and Maintenance Department and Staffing Trends
transferred Laboratory and Ocean Monitoring functions to the new
Environmental Services Department.
28183 00 28400 29400 27900
Performance Objectives / Measures _ -
.00 2
• Achieve 100 percent compliance with water,solids,air,and energy
permits.
2012-13 201314 2014-15 2015-16 za1F17
• Achieve a compliance level of 90 to 100 percent of the O&M
performance measurement targets.
• Manage operating expenditures to within 96 to 100 percent of the
approved budget.
FISCAL YEARS 2016-17 AND 2017-18 43
yea
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APPENDIX
A
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year strategic plan
DECEMBER 2015
ORANGE COUNTY SANITATION DISTRICT
ORANGE COUNTY SANITATION DISTRICT
5 year strategic plan
DECEMBER 2015
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table of contents ■
OCSD Board of Directors.........................................................................................ii
Message from the General Manager........................................................................iu
Executive Summary.....................................................................................................1
The Strategic Planning Fmme otk..........................................................................2
MissionStatement.......................................................................................................3
VisionStatement..........................................................................................................4
CoreValues...................................................................................................................5
RiskRegister.................................................................................................................6
Strategic Goals and Levels of Service......................................................................7
Appendix A: Issue Papers........................................................................................10
Appendix B: Summary of Accomplishments.......................................................13
AppendixC: Glossary...............................................................................................17
ORANGE COUNTY SANITATION DISTRICT-5 YEAR STRATEGIC PLAN(DECEMBER 2015)
board of directors
The strategic planning effort starts with the Board of Directors setting overall policy and priorities for the
Sanitation District. Based on that policy direction,staff develops the annual operational plan and budget.
Anaheim Los Alamitos
Lucille Kong Richard Murphy
Brea Member of the Board of
Glenn Parker Supervisors
Lisa Bartlett
Buena Park
Fred Smith Midway City Sanitary District
Joy Neugebauer
Costa Mesa Sanitary District
James M. Ferryman Newport Beach
Keith Curry
Cypress
Mariellen Yarc Orange
Teresa Smith
Fountain Valley
Steve Nagel Placentia
Chad Wanke
Fullerton
Greg Seboum Santa Ana
(Board Vice Chair) Sal Tinajero
Garden Grove Seal Beach
Steve Jones Ellery Deaton
Huntington Beach Stanton
Jim Katapodis David Shawver
Irvine Tustin
Steven Choi John Nielsen
(Board Chair)
Irvine Ranch Water District
John Withers Villa Park
Greg Mills
La Habra
Tom Beamish Yorba Linda Water District
Robert Kiley
La Palma
Peter Kim
■
ORANGE COUNTY SANITATION DISTRICT-5 YEAR STRATEGIC PLAN (DECEMBER 2015)
message from the general manager
In November 2013 the Orange County Sanitation District
(OCSD) adopted a 5 Year Strategic Plan that envisioned an
organizational culture that adheres to our core values and makes
efficient and effective use of all available resources.The Strategic
Plan centered our efforts on customer service, fiscal responsibility,
protecting public health and the environment,communication,
partnering with others and creating the best possible workforce.
We committed to the execution of that plan and implementation
of the eight strategic goals necessary to achieve success.
Protecting public health and the environment is critical to our mission,and I am pleased to
report that our ocean monitoring program reflects that the ocean is healthy around OCSD's
ocean outfall.We also continue to be fiscally strong.This year OCSD received AAA bond
ratings and we have reduced our long term pension liabilities,which in turn enabled us to
reduce planned rate increases by 35 percent over the next three years.
Two years into the five year Strategic Plan, I am pleased to report that we have completed
two of the strategic goals and made strides towards accomplishing the remaining six.We held
a Strategic Plan Update workshop,prepared two issue papers and updated our Summary of
Accomplishments and the Risk Register.We remain committed to sustaining and improving
our performance and meeting all of the established strategic goals.
Under the direction of the Board of Directors,I am honored to be leading this effort and I look
forward to working together to accomplish our goals in the years ahead and continuing our
successes.
The accomplishments laid out in this Strategic Plan Update would not be possible without
the collective dedication and effort of our workforce and the commitment and support of our
Board of Directors and the public we serve.
Respectfully submitted,
/�Mw "
James D. Herberg
General Manager
ORANGE COUNTY SANITATION DISTRICT-5 YEAR STRATEGIC PLAN(DECEMBER 2015)
executive summary
The 2014—2019 5 year Strategic Plan is a guiding document that provides a framework that directs our work
Every two years,the Strategic Plan will be reassessed,updated,and submitted for approval by the Board of
Directors.
This year's Strategic Plan Update began with a consultant retained by OCSD conducting confidential
interviews with interested Board members to identify issues or concerns.The Strategic Plan Update
continued with a workshop and presentation of two issue papers.The Update concluded with two Strategic
Goals being identified as completed,no new goals being adopted and no modifications being made to
OCSD's levels of service.
Completed Strategic Goals:
Disinfection of Ocean Discharge—Develop an implementation plan including the technical, financial and
societal factors associated with cessation of disinfection of the ocean discharge.
Legislative Advocacy and Public Outreach—Develop a unified legislative advocacy and public outreach
program.
Strategic Goals In Progress:
1.Odor Control—Completion of the Odor Control Master Plan.
2.Future Biosolids Management Options—Study biosohds management options including third party
contracts and onsite capital facilities.
3.Energy Efficiency—Continue to research new energy efficiency and energy conversion technologies.
4.Local Sewer Transfers—Complete the transfer of 174 miles of local sewers serving pans of Tustin and
unincorporated areas north of Tustin and local sewer transfers in the City of Santa Ana.
5.Future Water Recycling—Determine partnerships,needs, strategies,benefits and costs associated with
recycling of Plant No. 2 effluent water.
6.Workforce Planning and Workforce Development—This initiative is ongoing and part of a comprehensive
workforce planning and development effort to ensure we have the right people with the right skills and
abilities,in the tight place,at the right time.
ORANGE COUNTY SANITATION DISTRICT-5 YEAR STRATEGIC PLAN (DECEMBER 2015)
strategic planning framework
The planning framework illustrated below shows how OCSD staff and the Board of Directors play a critical
role in strategic planning and resource allocation.
Monitoring Strategic New or altered
and Evaluation PlanningLevels of Service
Strategic Boara
Board Planning Approval of
Approval of Process Strategic Plan
Budget
Budget"* Operational *\Goals and
Planning Objectives
■
■
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ORANGE COUNTY SANITATION DISTRICT-5 YEAR STRATEGIC PLAN(DECEMBER 2015)
our mission statement
The Mission Statement is the basic foundation that defines why we exist.
1 protect public
1the environment
1 providing
wastewater collection,
1
i
ORANGE COUNTY SANITATION DISTRICT-5 YEAR STRATEGIC PLAN (DECEMBER 2015)
vision statement
The Vision Statement supports the Mission Statement by expressing a broad philosophy of what the
Orange County Sanitation District strives to achieve in the delivery of services to our customers,vendors,
other agencies,the general public,and each other.
ORANGE COUNTY SANITATION DISTRICT
WILL BE A LEADER IN:
Providing reliable, responsive and
affordable services in line with
customer needs and expectations.
Protecting public health and the
environment utilizing all practical
and effective means for wastewater,
energy, and solids resource recovery.
Continually seeking efficiencies to
ensure that the public's money is
wisely spent.
Communicating our mission and
strategies with those we serve and all
other stakeholders.
Partnering with others to benefit our
customers, this region, and our industry.
Creating the best possible workforce
in terms of safety, productivity,
customer service, and training.
ORANGE COUNTY SANITATION DISTRICT-5 YEAR STRATEGIC PLAN(DECEMBER 2015)
core values
The Core Values
ort the Nfission and Vision Statements by expressing the
and philosophy
that guides . actions. . . o . organization . our
professional work ethic.
Honesty, Trust and Respect
We aspire to the highest degree of integrity,honesty,trust,
and respect in out interaction with each other,our suppliers,
our customers,and our community.
Teamwork and Problem Solving
We strive to reach OCSD goals rhxough cooperative effotts
and collaboration with each other and our constituencies.
We work to solve problems in a creative,cost-effective and
safe manner,and we acknowledge ream and individual efforts.
Leadership and Commitment
We lead by example,acknowledging the value of our
resources and using them wisely and safely to aclileve
our objectives and goals.We are committed to act
in the best interest of our employees,out orgatilzation,
and our community.
Learning/Teaching
We continuously develop ourselves, enhancing our talents,
skills, and abilities,knowing that only through personal
growth and development will we continue
to peogxess as an agency and as individuals.
Recognition/Rewards
We seek to recognize,acknowledge,and xewazd
contributions to OCSD by our many talented employees.
ORANGE
risk register 2015
The Risk Register is a periodic compilation of the various risks facing the Orange County Sanitation District,
as seen and determined by our management team.
The 2015 Risk Register Update identified these as the top risks:
• Pipelines damaged or severed after earthquake—focusing on the concern of liquefaction from an
earthquake,that may cause movement of pipes or other system failures.
• Attracting qualified applicants and enticing top candidates to join OCSD—reflecting the concern that as
we lose talent due to retirements and staff movement,our lack of a comprehensive strategy to attract top
talent and the existing pay and benefits program which is not competitive with other agencies may limit us
from attracting tenured public sector employees.
The top opportunities for the 2015 update are:
• As employees leave,restructure staffing to become more efficient—referring to the many
employees who are eligible for retirement, and the opportunity to look at staffing needs thereafter.
• Focus on main mission without other endeavors leading to higher rates—an opportunity to stick
to our core business so that costs are kept in line.
The major underrated continuity challenges Include:
• Cyber-terrorist or hacker attacks on OCSD—related to the ever-changing risks and increased
need to secure our computer network servers.
• Emergency Preparedness—expressing concern that OCSD is unprepared to deal with disasters
such as electrical outages and explosions.
Staff is developing plans to mitigate the risks and continuity challenges,and to take advantage of the
opportunities. OCSD's Risk Management division released a schedule of"table top exercises"designed to
respond to the top risks and challenges,and held an exercise focused on the possible interruption of electrical
power after a disaster.An exercise is also planned to consider how to respond to the potential damage to
Pipelines from an earthquake.As for opportunities,OCSD's General Manager has directed,as part of this
Strategic Plan,that comprehensive workforce planning activities be designed and implemented.
ORANGE COUNTY SANITATION DISTRICT-5 YEAR STRATEGIC PLAN(DECEMBER 2015)
strategic goals and levels of service
OCSD has six outstanding strategic goals to support the vision of the Board of Directors and Executive
Management Team.The levels of service are key performance indicators in achieving the overall vision.
Providing Exceptional Customer Service
• Providing reliable,responsive and affordable services in line with customer needs and expectations.
1. Odor Control- Completion of the Odor Control Master Plan to make sure the District's investment
is current and,if needed, future process systems to produce the benefits intended.
Target eo SnIetidn in FY 15-16.
Providing I Customer 14-15 Level of
Service Target
Odor complaint response Treatment plants within 1 hour 100% 100
Odor complaint response:Collection system within 1 working day 98% 100%
Number of odor complaints:
• Reclamation Plant No. 1 8 0
•Treatment Plant No. 2 9 0
• Collection System 27 12
*Under normal operating conditions
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 a week of 100% 100%
violation notice
Protecting Public Health and the Environment
• Protecting public health and the environment utilizing all practical and effective means for wastewater,
energy, and solids resource recovery.
2. Future Biosolids Management Options—Study biosolids management options including
third parry contracts and onsite capital facilities for mid-term and long-term approaches beginning in
2016-2017. Target for completion in FY 15-16.
3. Energy Efficiency—The District will research new energy efficiency and energy conversion
technologies to maximize energy efficiency,reduce operating costs,minimize environmental impact,
and replace assets that are at the end of their useful lives. Target for completion in FY 17-18.
4 �
i
OCSD owns and operates$6.2 billion in inhastructure assets.Through these assets,OCSD collects,treats,and either reuses or safely discharges 185
million gallons per day of wastewater.
ORANGE COO NTY SANITATION DISTRICT—5 YEAR STRATEGIC PLAN (DEC E M BER 2015)
strategic goals and levels of service
Protecting Public Health &The Environment Level of
Results Service Target
Accept dry weather runoff diversion flows without imposing fees 1.2 mgd Up to 10 mgd
Air emissions health risk to community and employees,per one 9 QO
million people for each Treatmentplant)
Notices of violation (NOV) with air,land, and water permits 0 0
Respond to collections stems ills within 1 hour 100% 100%
Sanitary sewer spills per 100 miles 1.2 < 2.1
Contain sanitary sewers ills within 5 hours 100% 100%
Meet secondary treatment standards BOD 4.8 mg/L BOD 25 mg/L
TSS 5.7 mg/L TSS 30 mg/L
Thirty-day geometric mean of coliform bacteria in effluent after 881 <I000
initial dilution of 250:1 (MPN)
Frequency of unplanned use of emergency one-mile(78-inch 0 0
diameter) outfall (per year during dry weather)
Tons of biosolids to landfill through 2017 peak production period 60 100
Compliance with core industrial pretreatment requirements 100% 100%
Managing and Protecting the Public's Funds
Continually seeking efficiencies to ensure that the public's money is wisely spent.
4. Local Sewer Transfers—Complete Transfer of 174 miles of local sewers serving parts of Tustin
and unincorporated areas north of Tustin and local sewer transfers in the City of Santa Ana to be
concluded by December 31,2016. Following those,no further local sewers to be Transferred at the
initiation of OCSD.If a local jurisdiction is interested in OCSD transferring sewers,each request will
be considered on an individual basis assuming the sewers meet the requirements identified.
Tagetfor completion in I'Y 16-17.
Managing and Protecting the Public Funds F1'14-15 Level of Service
Results Target
Annual user fees sufficient to cover all O&M requirements 100% 100%
Actual collection, treatment,and disposal costs per million gallons 3%under 5 10% of budget
Maintain AAA Bond Rating 100% 100%
ORANGE COUNTY SANITATION DISTRICT-5 YEAR STRATEGIC PLAN(DECEMBER 2015)
strategic goals and levels of service
Stakeholder Understanding and Support
• Communicating our mission and strategies with those we serve and all other stakeholders.
• Partnering with others to benefit our customers,this region and our industry.
5. Future Water Recycling Options—Determine partnerships,needs,strategies,benefits and costs
associated with recycling of Plant No. 2 effluent water. Tagetforcomple&on in FY 18-19.
Stakeholder Understanding and Support F1'IA-15 Lev 1 of Service
Results Target
Meet GWRS specification rcyuixcments for Plant No. 1 secondary 2.7 NTU 5 NTU
effluent
Provide specification effluent available to the Groundwater 100% 100%
Replenishment System to maximize production of purified water
Organizational Effectives
• Creating the best possible workforce in terms of safety,productivity,customer service,and training.
6. Workforce Planning and Workforce Development—This initiative is ongoing and part of a
comprehensive workforce planning and development effort to ensure we have the right people with
the eight skills and abilities,in the eight place, at the right time.Target for completion is ongoing.
Organizational Effectiveness iY 14-15 vel of Service
Results Target
Employee injury incidentrate—per 100 employees 17 <3.31ndustry
Average
Meet mandatory OSHA training re uiretnents 100% >95%
Hours worked since last lost work day 430,000 >1,000,000
Achieve annual agency target of days away from work,days of
restricted work activity,or job transferred as a result of a work- 0.8 <2.5
related injury or illness
Avcxag*c cost per Workers Compensation claim $6,774 $13,545
Trainin hoursper employee 45.23 45 per year
ORANGE COUNTY SANITATION DISTRICT-5 YEAR STRATEGIC PLAN (DECEMBER 2015)
appendix A: issue papers
In preparation for the October 21,2015 Board of Directors Strategic Planning Workshop staff
prepared two issue papers related to the new goals.The appendix includes issue papers on the
following topics:
1. Odor Control Level Of Service
2.Storrnwater Capture
i
r -
ORANGE COUNTY SANITATION DISTRICT-5 YEAR STRATEGIC PLAN(DECEMBER 2016)
odor control
Should OCSD change the level nfAmmllap for odor control?
Why is this issue important to the District?
In 1989, OCSD began addressing collection system odor and corrosion concerns chemically by implementing
a caustic soda shock-dosing program for some of the tmnklines.In 2001,this program evolved to continuous
chemical dosing in the collection system for odor control which utilized ferrous chloride,magnesium
hydroxide,and calcium nitrate at nine different dosing locations.The program has proven to reduce odor and
corrosion in the regional trunk system and suppress odors at the headworks of the treatment plants.It also
helps condition the sewage arriving at the treatment plants.
In 2007, the Board of Directors adopted the Five-Year Strategic Plan,which set the Level of Service standard
at a goal of 34 or less odor complaints attributed to the OCSD collection system.At that time two categories
were tracked;Attributed,and Not Attributed.The attributed category captured complaints attributed to
OCSD as well as those whose source could not be determined.The complaints were classified by the
OCSD responder. In 2009, a third category was created by staff to appropriately document odors of an
undetermined source.With the addition of this category,odor complaints attributed to OCSD were reduced
significantly.As a result,the goal was reduced in 2014 to 12 complaints or less attributed to OCSD.
In 2014,the Odor Control Division revised its Odor Response Procedure to include a follow up investigation
as a secondary response for each odor complaint.The objective was to minimize the unknown sources and
ultimately better address the root causes of the odors.The complaints were classified by the secondary OCSD
responder after the investigation was concluded. Our LOS goal for FY 14/15 was 12 or fewer. Due to the
results of the detailed investigations,the number of OCSD attributed complaints has increased.We had 27
validated odor complaints in the collection facilities in FY 14/15 due to various causes. It is recommended
that the Level of Service goals be changed to better reflect the current methodology used to investigate.
Recommendation
Increase our current level of service from 12 odor complaints to 28. A new goal of 28 or less odor complaints
attributed to OCSD would reflect the success of the change in procedures in determining the true source or
root cause of the odor complaints.This new LOS could also be achieved within the current budget/sewer
fee structure. Staff does not foresee a reduction to the current number of complaints until the plant odor
facilities modifications are completed.Any further reductions would also require modifications to Collections'
Odor Control Program. Modifications could include items such as additional dosing facilities, additional
siphon vents,and repairs to existing siphon vents within the collection system.The Collection Facilities Odor
Control Master Plan Update expected in 2017 will help guide the future direction.
The new goal of 28 or less odor complaints attributed to OCSD is an appropriate reflection of Current
Odor Control Program procedures.By continuing to better investigate the root causes of the odors,we
can improve strategies for mitigation.The desired outcome may be to eventually reduce the number of
attributable odor complaints to zero for those facilities that are a part of the continuous dosing or"sewage
conditioning"program
ORANGE COUNTY SANITATION DISTRICT-5 YEAR STRATEGIC PLAN (DECEMBER 2015)
stormwater
Should we capture stormwater?
Why is this issue important to the District?
The Board of Directors has expressed interest in stormwater capture to augment water supplies and aquifer
recharge for North Central Orange County.
Background: OCSD has been active in stormwater capture for more than a decade with its urban runoff
diversion program.This program is approved to accept up to ten million gallons per day of urban runoff,
which is technically stormwater. Expressed differently,this ten million gallon per day of flow is equivalent to
18 cubic feet per second.The program was originally begun to improve beach water quality by diverting river
water laden with bacteria from reaching recreational beaches. OCSD has limited the flow to dry weather to
protect its collection system and Treatment plants from having overflows which are spills.
OCSD's service area contains several dams to control wet weather sto¢nwater flows.These include Prado
Dam, Carbon Canyon Dam,Brea Dam,Fullerton Dam,Villa Park Dam,and Santiago Dam.These Dams
are connected to rivers and channels which are designed to flow large volumes of silt laden water in order to
protect regions from the damage associated with flooding events. Prado Dam is capable of releasing more
than 30,000 cubic feet of water per second,or more than 19 billion gallons per day.
The Orange County Water District is primarily responsible for recharging the aquifer in North Central
Orange County.It controls more than 1,000 acres of river,ponds and percolation basins in Anaheim and
1,250 acres of surface water storage behind Prado Dam.The dam is controlled by the Army Corps of
Engineers to protect from flooding and secondarily to store stormwater to recharge of Orange Counties'
aquifer.The water is released at a rate that allows for diversion to the Anaheim recharge ponds and lakes
usually less than 100 cubic feet per second.
OCSD's systems are not designed to handle wet weather stormwater volumes or content.Wet weather
naturally increases flow through OCSD's system caused by inflow and infiltration.Inflow is direct flow into
the system generally attributed to illegal connections,leaks through manholes and other openings to standing
or flowing surface water.Infiltration is ground water that seeps into the sewer system through pipe and
manhole defects.These flows can increase normal dry weather flows by 2.2 tunes.
Recommendation
Orange County Sanitation District must balance its mission to protect public health and to create usable
products like potable water.Treatment Plant and collection system capacities are designed around normal
system flow patterns.These sewers and plants are completely incapable of dealing with even minor rain event
stormwater flows. Sewer pipes are a fraction of the size of storm drains,much less flood channels. Storms
flows are not necessary for feeding the GWRS. Normal sewage flows, even in a historic drought,are feeding
the system at near capacity.The greater risk to OCSD's mission is the risk to public health that occurs with
sewer overflows. Raw sewage in the streets or waterways is a completely unacceptable outcome.
Stormwater capture is the purview of Orange County Water District,CC Flood, and the Army Corps of
Engineers.They have the necessary infrastructure and available land. OCSD should continue to accept dry
weather urban runoff to support water reuse and protect beach water quality.
ORANGE COUNTY SANITATION DISTRICT-5 YEAR STRATEGIC PLAN(DECEMBER 2015)
appendix B summary of accomplishments
Goal Completed
FY 07-08 FY 08-09 FY 09-10 FY 1011 FY 1112 FY 12-13 FY 1314 FY 15-16
SARI Line Relocation-Work in
conjunction with the County of Omnge and •
the Federal Government to relocate the
SARI Line by December 31,2013.
Management System for Environmental
Compliance-Implement a management
control system for environmental •
compliance information that incorporates a
dashboard-style report.
Contaminants of Potential Concern
(CPC)-Complete three phase testing and
analysis of 550+CPC, prepare report on •
findings and recommendations,develop
initial source control strategy if they are
CPCs identified that require control.
Climate Change/Greenhouse Gases
Develop an overall strategy for
respondingto climate change
regulations and proactively adapting
to the effects of climate change All
including identification and mitigation of
greenhouse gases and adapting to any
impacts to our facilities and operations.
Develop models to estimate greenhouse
gas and traditional pollutant emissions
for determination of our environmental •
footprint.(Functional predictive
greenhouse gas model completed)
Engine Emission Compliance
Complete study to evaluate alternatives
for complying with lower emission
limits in the South Coast Air Quality
Management's Rule 1110.2.Initiate •
planning and design of demonstration
testing of most promising technology(s)
identified in the study.
Implement capital improvements or
operational modifications in order to •
achieve compliance.
Providing Ongoing Leadership
Development-Maximize the development
of a pool of dedicated and talented •
employees ready to lead OCSD into the
future.
ORANGE COUNTY SANITATION DISTRICT-5 YEAR STRATEGIC PLAN (DECEMBER 2015)
summary of accomplishments
Goal Completed
FY 0708 FY 0809 FY 0910 FY 1011 FY 1112 FY 12-13 FY 1314 FY 1516
Fuel Cell Evaluation
Start up 300kW demonstration unit. •
Evaluate cost feasibility of replacing or
supplementing CGS engines with fuel •
cell.
Reclaiming Santa Ana River Interceptor
Line(SARI)Flows-Meet with
stakeholders,develop a list of obstacles
that need to be overcome to reclaim the •
SARI Line and develop a strategy to obtain
regulatory approval to reclaim SARI Line
flows.This goal was canceled due to
inability to obtain regulatory approval.
Sewer Rate for Green Development-
Submit for Board approval an amendment •
to sewer rate Ordinance with incentives for
green developments.
Complete Facilities Master Plan Update
- Complete a comprehensive update of •
the Facilities Master Plan and obtain Board
approval
Enterprise Information Technology
Strategic Plan - Complete a District-wide •
Information Technology Strategic Plan.
Updating OCSD's Risk Register- Review
and update OCSD's risk register to include
an assessment oftechnical, regulatory, •
financial,and political risks(among others)
and possible mitigation strategies
Annex Unincorporated Areas-With
Board concurrence,annex unincorporated •
areas onto OCSD's service area.
Review Interagency Agreements-
Conduct a comprehensive review of
agreements with the Santa Ana Watershed •
Project Authority and Irvine Ranch Water
District,and,if appropriate,reopen for
discussion.
Strategic Business Plan-With Board
concurrence,annually update and •
implement the Strategic Plan and Business
Plan.
Business Accountability Charters-
Create Business Accountability Charters
for each department consistent with those •
developed by managers and supervisors -F
ORANGE COUNTY SANITATION DISTRICT—5 YEAR STRATEGIC PLAN(DECEMBER 2015)
summary of accomplishments
Goal Completed
FY 07-08 FY 08-09 FY 09-10 FY 1011 FY 1112 FY 12-13 FY 1314 FY 15-16
Chemical Supplies- Develop a Chemical
Sustainability Plan that provides OCSD with
options for obtaining wastewater treatment •
chemicals during chemical shortages,
emergencies or complete stoppages.
Chemical Sustalnablllty-Ensure a reliable
and sustainable chemical supply using
multiple vendor contracts to reduce the •
risk of supply disruption while benefiting
from competitive pricing.
Full-Cost Recovery 2010-11-Conduct a
comprehensive review of the Sanitation •
District's Urban Runoff Program to ensure
a fair share recovery of costs for services.
Full-Cost Recovery 2012-1.3-Implement a
direct charging mechanism to recover the
full cost of urban runoff treatment starting
July 1,2013 when the new rate structure •
is in place.This goal was canceled in FY
12-13 to allow additional urban runoff at
no cost to the local jurisdiction.
Groundwater Replenishment System-
Maximize the production of GWR System
product water to augment and protect the •
Orange County groundwater basin with a
goal of 70 mgd.
Sustainable Biosolids Program
Complete new in-county Compost Take- •
Back Program Plan Strategy.
Evaluate the feasibility of deep injection/
methane recovery including commissioning
a study of the geological formations •
below Plants 1 and 2,and availability and
acceptability of any existing wells
Evaluate option of processing some
biosolids at the City of Los Angeles •
Terminal Island demonstration well.
Implement Energy Master Plan -After
the completion of the plan,assess final •
recommendations to ensure adequate
power resources and energy management.
Disinfection of Final Effluent-Develop
a cost effective program to sustain
protection of public health associated with •
bacteria in the effluent and incorporate
program elements into our NPDES Permit.
ORANGE COUNTY SANITATION DISTRICT-5 YEAR STRATEGIC PLAN (DECEMBER 2015)
summary of accomplishments
Goal Completed
FY 0708 FY 08,09 FY 09-10 FY 1011 FY 1112 FY 12-13 FY 1314 FY 15 Sfi
Ocean Protection - Undertake studies to
determine the cause of benthic community
changes near the ocean outfalI and take •
corrective action to return affected areas
to reference conditions.
Space Planning Study Recommendations
- Complete relocation of staff housed
in Information Technology Trailers, •
Administration Building,Control Center and
Building 6.
Improve the Sanitation District Security-
Provide long-term security enhancements •
at both treatment plants and within OCSD's
Collection System.
Safety and Health Strategic Plan -
DevelopandimplementaSafetyand •
Health Strategic Plan for all OCSD
activities.
Human Resources Strategic Plan-
Design,develop and implement human
resources policies, practices,systems and •
tools to ensure OCSD has a workforce that
meets future needs of OCSD and the public
it serves.
Succession Plan-Implement the
Succession Management Plan including •
management training and the creation of a
Leadership Academy.
North County Yard -Open the North
County Maintenance Yard and complete
the relocation of selected staff and
equipment to the facility.Implement flex •
space for added agency-wide needs as
appropriate.This goal was canceled in FY
10-11 and the facility is currently being
leased.
Five-Year Rate Plan - Prepare an
updated 5-year rate schedule for Board •
consideration to go into effect July 1,2013
Sustainable Biosolids Program-Conduct
research to reduce the amount of biosolids •
produced and increase digester gas
production
Disinfection of Ocean Discharge-Develop
an implementation plan includingthe
technical,financial and societal factors •
associated with cessation of disinfection of
the ocean discharge
Legislative Advocacy and Public Outreach-
Develop a unified legislative advocacy and •
public outreach program
ORANGE COUNTY SANITATION DISTRICT-5 YEAR STRATEGIC PLAN (DECEMBER 2015)
appendix C: glossary
Activated-sludge process—A secondary biological wastewater treatment process
where bacteria reproduce at a high rate with the introduction of excess air or oxygen,and consume dissolved
nutrients in the wastewater.
Biochemical Oxygen Demand(BOD)—The amount of oxygen used when organic matter undergoes
decomposition by microorganisms.Testing for BOD is done to assess the amount of organic matter
in water.
Biosolids—Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater
treatment process.This high-quality product can be recycled as a soil amendment on farm land or further
processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and
stimulate plant growth.
Business Accountability Charters—A business unit strategic plan.
Capital Improvement Program (CIP)—Projects for repair,rehabilitation,and replacement of assets.Also
includes treatment improvements,additional capacity,and projects for the support facilities.
Coliform bacteria—A group of bacteria found in the intestines of humans and other animals,but also
occasionally found elsewhere used as indicators of sewage pollution. E. coh are the most common bacteria in
wastewater.
Collections system—In wastewater,it is the system of typically underground pipes that receive and convey
sanitary wastewater or Storm water.
Certificate of Participation (COP)—A type of financing where an investor purchases a share of the lease
revenues of a program rather than the bond being secured by those revenues.
Contaminants of Potential Concern (CPC)—Pharmaceuticals,hormones,and other organic
wastewater contaminants.
Dashboard—A computer based business tool used to visually track performance.
Dilution to Threshold(D/T)—the dilution at which the majority of the people detect the odor becomes
the D/T for that air sample.
1,4-Dioxane—A chemical used in solvents for manufacturing, fumigants and automotive coolant.Like
NDMA,it occurs in the Groundwater Replenishment System water and is eliminated with hydrogen peroxide
and additional ultra-violet treatment.
Greenhouse gases—In the order of relative abundance water vapor,carbon dioxide,methane,nitrous oxide,
and ozone gases that are considered the cause of global warming("greenhouse effect').
Groundwater Replenishment (GWR) System—A joint water reclamation project that proactively
responds to Southern California's current and future water needs.This joint project between the Orange
County Water District and the Orange County Sanitation District will provide 70 million gallons a day of
drinking quality water to replenish the local groundwater supply.
Levels of Service (LOS)—Goals to support environmental and public expectations for performance.
Million gallons per day(mgd)—A measure of flow used in the water industry.
Most Probable Number(MPN)—Number of organisms per 100 ml that would yield a test result or the
observed test result with the greatest frequency. Commonly used for coliform bacteria.
NDMA—N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been found
in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra
ultra-violet treatment.
ORANGE COUNTY SANITATION DISTRICT-5 YEAR STRATEGIC PLAN (DECEMBER 2015)
appendix C: glossary
Nephelometric Turbidity Units (NTU)—An instrument for measuring the concentration of suspended
particles in a liquid.
O&M—Operations and maintenance of the treatment plants facilities and collections system.
Publicly-owned Treatment Works (POTW)—Municipal wastewater Treatment plant.
Recycling—The conversion of solid and liquid waste into usable materials or energy.
Risk Register—An internal document that describes vulnerabilities of the Sanitation District.
Santa Ana River Interceptor(SARI) Line—A regional brine fine designed to convey 30 million gallons per
day (MGD) of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal,
after treatment.
Sanitary sewer—Separate sewer systems specifically for the carrying of domestic and industrial wastewater.
Combined sewers carry both wastewater and urban run-off.
South Coast Air Quality Management District (SCAQMD)—Regional regulatory agency that develops
plans and regulations designed to achieve public health standards by reducing emissions from business and
industry.
Secondary treatment—Biological wastewater treatment,particularly the activated-sludge process,where
bacteria and other microorganisms consume dissolved nutrients in wastewater.
Sludge—Untreated solid material created by the treatment of wastewater.
Total suspended solids (TSS)—The amount of solids floating and in suspension in wastewater.
Trickling filter—A biological secondary treatment process in which bacteria and other microorganisms,
growing as slime on the surface of rocks or plastic media,consume nutrients in wastewater as it trickles over
them.
Urban runoff—Water from city streets and domestic properties that carry pollutants into the stomt drains,
rivers,lakes,and oceans.
Wastewater—Any water that enters the sanitary sewer.
Watershed—A land area from which water drains
to a particular water body. OCSD's service area is in the Santa Ana River Watershed.
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ORANGE COUNTY SANITATION DISTRICT-5 YEAR STRATEGIC PLAN(DECEMBER 2015)
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ORANGE COUNTY SANITATION DISTRICT
10844 Ellis Avenue
Fountain Valley, CA 92708-7018
714.962.2411
www.ocsd.com