HomeMy WebLinkAbout98.06-27-2018 Board Meeting Item 21 Attachment 1 - Budget Executive Summary.pdf22EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
Orange County Sanitation District, California
EXECUTIVESUMMARY
Fiscal Years 2018-19 and 2019-20
PROPOSED BUDGET
BUDGET
EXECUTIVE SUMMARY
Orange County Sanitation District, California
Fiscal Years 2018-19 and 2019-20
OUR MISSION
“To protect public health and the environment by providing
effective wastewater collection, treatment, and recycling.”
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
GFOA BUDGET PRESENTATION AWARD
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
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, 2016.
In order to receive this award, a government unit must publish a budget document that meets program criteria
as a policy document, as an operations guide, as a financial plan, and as a communication device.
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.
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
TABLE OF CONTENTS
OCSD Service Area ..............................................................................................................................................i
Board of Directors ...............................................................................................................................................ii
Board Committees ..............................................................................................................................................iii
Orange County Sanitation District Organization Chart .............................................................................iv
Administrative Officials .......................................................................................................................................v
Message from the General Manager ...............................................................................................................vi
Finance Summary ..............................................................................................................................................1
Financial Overview & Budgetary Issues ..........................................................................................................2
Where the Money Comes From .......................................................................................................................6
Funding Sources by Category ............................................................................................................................6
Where the Money Goes ......................................................................................................................................8
Funding Uses by Category .................................................................................................................................8
Collection, Treatment & Recycling Process Overview ............................................................................10
Infrastructure Asset Management ...............................................................................................................12
Capital Improvement Program ....................................................................................................................22
Debt Financing Program ................................................................................................................................24
Operating Expenses .........................................................................................................................................26
Departments ......................................................................................................................................................30
Summary .............................................................................................................................................................30
General Manager’s Office .................................................................................................................................32
Human Resources .............................................................................................................................................34
Administrative Services ....................................................................................................................................36
Environmental Services ....................................................................................................................................38
Engineering .........................................................................................................................................................40
Operations and Maintenance ..........................................................................................................................42
Wastewater Treatment Process Diagram
OCSD SERVICE AREA
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET i
Sewer pipelines
Plant No. 1 (P1)
Plant No. 2 (P2)
Pump Stations
Unincorporated Orange County
(white areas)
LEGEND
Offshore Pipeline5 miles long10-foot diameter
OCSD Emergency Outfall1.5 miles long6.5-foot diameter
IRVINE
ANAHEIM
ORANGE
SANTAANA
FULLERTON
BREA
TUSTIN
YORBALINDA
HUNTINGTONBEACH
COSTAMESA
GARDENGROVE
SEALBEACH
BUENAPARK
NEWPORTBEACH
LAHABRA
WESTMINSTER
CYPRESS
PLACENTIA
FOUNTAINVALLEY
STANTONLOSALAMITOS
VILLAPARK
LAPALMA
PacificOcean
P1
P2
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGETii
BOARD OF DIRECTORS
Agency/Cities Active Director Alternate Director
Anaheim Denise Barnes Lucille Kring
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 Jesus Silva
Garden Grove Steve Jones Kris Beard
Huntington Beach Erik Peterson Mike Posey
Irvine Donald P. Wagner Lynn Schott
La Habra Tim Shaw Michael Blazey
La Palma Peter Kim Marshall Goodman
Los Alamitos Richard Murphy Warren Kusumoto
Newport Beach Scott Peotter Brad Avery
Orange Teresa Smith Mark Murphy
Placentia Chad Wanke Ward Smith
Santa Ana Sal Tinajero David Benavides
Seal Beach Ellery Deaton Sandra Massa-Lavitt
Stanton David Shawver Carol Warren
Tustin Allan Bernstein Chuck Puckett
Villa Park Robert Collacott Robert Pitts
Sanitary Water Districts
Costa Mesa Sanitary District (CMSD) James Ferryman Robert Ooten
Midway City Sanitary District (MCSD) Charlie Nguyen Al Krippner
Irvine Ranch Water District (IRWD) John Withers Douglas Reinhart
Yorba Linda Water District (YLWD) Phil Hawkins Brooke Jones
County Areas
Member of the Board of Supervisors Michelle Steel Shawn Nelson
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET iii
BOARD COMMITTEES
Steering Committee
Greg Sebourn, Board Chair
David Shawver, Board Vice-Chair
Chad Wanke, Chair, Administration Committee
John Withers, Chair, Operations Committee
Ellery Deaton, Member-At-Large
Tim Shaw, Member-At-Large
Donald P. Wagner, Member-At-Large
Administration Committee
Chad Wanke, Chair
Donald P. Wagner, Vice-Chair
James Ferryman
Peter Kim
Richard Murphy
Steve Nagel
Charlie Nguyen
Glenn Parker
Erik Peterson
Teresa Smith
Sal Tinajero
Greg Sebourn, Board Chair
David Shawver, Board Vice-Chair
Operations Committee
John Withers, Chair
Ellery Deaton, Vice-Chair
Denise Barnes
Allan Bernstein
Robert Collacott
Phil Hawkins
Steve Jones
Scott Peotter
Tim Shaw
Fred Smith
Michelle Steel
Mariellen Yarc
Greg Sebourn, Board Chair
David Shawver, Board Vice-Chair
Legislative and
Public Affairs Committee
Greg Sebourn, Board Chair
David Shawver, Board Vice-Chair
Allan Bernstein, Member-At-Large
Peter Kim, Member-At-Large
Donald P. Wagner, Member-At-Large
Chad Wanke, Member-At-Large
John Withers, Member-At-Large
GWRS Joint Cooperative
Steering Committee
Greg Sebourn
James Ferryman
Steve Jones
(A1) – Donald P. Wagner
(A2) – Phil Hawkins
(A3) – Tim Shaw
Audit Ad Hoc Committee
Peter Kim
Richard Murphy
Steve Nagel
Glenn Parker
SAWPA Joint Policy Committee
Greg Sebourn
David Shawver
(A) John Withers
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGETiv
ORGANIZATION CHART
Human Resources
Administration
Risk Management/
Safety/Security
Board of
Directors
General
Manager
General
Counsel Office
Human
Resources
(27 FTEs)
Administrative
Services
Financial Management
Contracts,
Purchasing &
Materials
Management
Information Technology
Environmental
Services
Administration
Resource Protection
Laboratory,
Monitoring &
Compliance
Engineering
Administration
Planning
Project
Management
Office
Civil & Mechanical Engineering
Electrical &
Control Systems
Engineering
Operations &
Maintenance
Administration
Collection Facilities Operations & Maintenance
Fleet Services
Plant No. 1 Operations
Plant No. 2
Operations
Plant No. 1 Maintenance
Plant No. 2
Maintenance
Maintenance Reliability & Planning
Administrative
Services
(100 FTEs)
Environmental
Services
(91 FTEs)
Engineering
(116 FTEs)
Operations
& Maintenance
(288 FTEs)
Assistant
General
Manager
Assistant
General
Manager
General
Management
Administration
Board Services
Public Affairs
General
Manager’s Office
(14 FTEs)
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET v
ADMINISTRATIVE OFFICIALS
Management Team
General Manager ......................................................................................................................................................James Herberg
Assistant General Manager ....................................................................................................................................Robert Ghirelli
Assistant General Manager and Director of Engineering ...........................................................................Robert Thompson
Director of Environmental Services .......................................................................................................................James Colston
Director of Finance and Administrative Services ...............................................................................................Lorenzo Tyner
Director of Human Resources ...............................................................................................................................Celia Chandler
Director of Operations and Maintenance ...........................................................................................................Edward Torres
General Counsel .......................................................................................................................................................Bradley Hogin
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGETvi
MESSAGE FROM THE GENERAL MANAGER
June 1, 2018
Honorable Chair and Board Directors:
I am pleased to submit the Orange County Sanitation District’s (OCSD) Proposed Budget Update for fiscal
years 2018-2019 and 2019-2020. This document lays out the framework of 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. Our
work plan for the next two years focuses on:
• Succession Planning/Restructuring – In anticipation of the retirement of our Assistant General Manager
we have reevaluated our organization to improve and streamline the management structure to best
position ourselves for the future. A second Assistant General Manager position was established with
responsibility for the Operations and Maintenance (O&M) and Engineering Departments. Upon
the retirement of the existing Assistant General Manager in August 2018, his replacement will begin
overseeing the Finance & Administrative Services and Environmental Services departments. With this
restructuring in place we expect better coordination between departments and the overall Executive
Management Team will be streamlined with one less filled position.
• Infrastructure Reliability and Asset Management – OCSD’s infrastructure must operate continuously day
and night. Reliability must be built into all that we do and that includes managing the condition of our
$10 billion in assets to ensure they are running effectively. The O&M and Engineering Departments will
work together planning and coordinating near term maintenance activities, major refurbishments and
replacements. These maintenance efforts reflect a $6 million dollar increase in Repairs and Maintenance
in this Operating Budget. In addition to all of the maintenance and repair work, we will review our
preventative maintenance plans and schedules for accuracy and effectiveness. Improved maintenance
plans will provide a more accurate picture of the resources required to complete all preventive
maintenance for OCSD assets and will enable us to optimize our staffing resources.
• Operational Optimization – OCSD continues to find innovative and efficient ways to do our work. A
new administrative headquarters facility is being designed to bring together employees who are currently
located in various trailers and offices. To reduce the need for storage space for paper records, a trusted
digital system is being implemented to maintain electronic records and speed up locating and processing
of documents. Also, the cost of biosolids hauling will be reduced by using centrifuges to dewater our
biosolids and produce a drier product.
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
vii
• 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. Having completed a joint feasibility
study with OCWD for the ultimate expansion of the Groundwater Replenishment System (GWRS), the
two agencies will now embark on construction projects that will increase water recycling for an additional
250,000 people. This expansion will ensure that a potential resource once lost to the ocean will now
supply water for over one million people in north and central Orange County.
• Energy Resource Recovery – The State of California mandates that local jurisdictions reduce the amount
of organic material entering landfills by 75 percent by 2025. With anaerobic digestion facilities already in
place, OCSD can help the state meet its goals by receiving food waste to be co-digested with our solids to
increase biogas and energy production. OCSD has plans to construct interim and permanent food waste
receiving facilities at Plant No. 2 in Huntington Beach.
• Safety and Security – Capital projects, maintenance activities, drafting of an implementation plan for a
Voluntary Protection Program Certification, and training to address safety in our workplace are included
in this budget, as are enhancements to our physical, electronic, and cyber security infrastructure.
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 staff cost
increases; and rate increases averaging only about 1 percent per year.
OCSD will continue to provide wastewater treatment, recycling, sewer and facilities maintenance, ocean
monitoring and many other services while keeping rates among the lowest in California. This budget fully
supports the goals and level of service included in the Orange County Sanitation District’s Strategic Plan
and positions us well to proactively manage in the coming years.
James D. Herberg
General Manager
Orange County Sanitation District
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGETviii
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FINANCESUMMARY
1
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET2
FINANCIAL SUMMARY/OVERVIEW & BUDGETARY ISSUES
Budget Overview
Orange County Sanitation District’s (OCSD) proposed
fiscal year 2018-19 and 2019-20 operating and capital
improvement budgets total $422 million and $383 million,
respectively. The increase in the 2018-19 budget over the
2017-18 projected spending of $355 million is primarily
due to the timing of construction cash outlays, in
addition to increases in salaries and benefits, repairs and
maintenance, and an increase in the loss on the disposal
of obsolete inventory. The decrease in the
2019-20 budget is primarily due to the timing of
construction cash outlays as we meet our infrastructure
needs. The budget continues to reflect the agency’s
ongoing efforts to streamline operations.
OCSD’s proposed Capital Improvement Program (CIP)
budgets for fiscal years 2018-19 and 2019-20 are
$175 million and $137 million, respectively, net of
savings and deferrals. This CIP budget supports
collection system, joint works treatment and disposal
system improvement projects.
Financing
OCSD uses long-term Certificates of Participation
(COP) for financing capital improvements that cannot
be completely funded from current revenue. Before any
new debt is issued, the impact of debt service payments
on total annual fixed costs is analyzed. Total COP
indebtedness is currently at $1.0 billion. No new money
debt financings are currently forecasted to assist in the
funding of the $2.7 billion in capital improvements
required over the next 10 years.
Staffing
Reflecting the organization’s commitment to providing
service at the lowest costs, the budget reflects a minimal
increase of one authorized full time equivalent (FTE)
position for fiscal years 2018-19 and 2019-20 as staffing
is proposed at 636 FTE positions in both years. The
new position is needed to provide additional support
for OCSD’s pretreatment program. However, staffing
continues to remain lower than the fiscal year 2010-11
approved staffing level of 641 FTE positions.
Personnel costs will increase primarily due to approved
increases in salaries and wages for all employee
bargaining units based on the existing Memorandums
of Understanding.
OCSD will continue to effectively manage these
expenses with approximately 23 percent of the budget
allocated to employee costs, much less than most other
government agencies.
Cost of Treatment
The agency’s two treatment plants, located in
Fountain Valley and Huntington Beach, process about
185 million gallons of wastewater each day generated by
approximately 2.6 million people residing within central
and northwest Orange County and the businesses that
operate within this service area. The proposed budget
to operate, maintain and manage our sewage collection,
treatment, and disposal system, including self-insurance
requirements, for the next two years is $164 million and
$163 million.
The cost per million gallons of wastewater treated (an
industry-wide performance measurement) is expected
to increase $288, or 13.6 percent, in fiscal year 2018-19
to $2,413. The increase in the cost per million gallons is
due to the increase in the operating budget and a slight
decrease in projected flows.
Sewer Service Fees
The 2018-19 and 2019-20 single family residential rates
are scheduled to increase by approximately one percent
each year to $335 and $339, respectively. OCSD’s rates
are well below the statewide average sewer rate of $529
as reported in a 2016-2017 survey of 963 agencies in
California
Groundwater Replenishment System
(GWRS)
The OCSD Strategic Plan includes water reclamation.
With the Orange County Water District (OCWD),
OCSD completed the GWRS, the nation’s largest water
reclamation project, in January 2008.
The original GWRS facility reclaimed 70 million gallons
of water a day, eliminating the need to build a second
outfall which could cost more than $200 million. OCSD
and OCWD equally shared the expenses of this project
and approximately $44 million in Federal and State
grants that were received to offset part of the total costs.
Initial expansion of GWRS increased the production of
reclaimed water to 100 million gallons a day.
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
3
This expansion, which was funded entirely by the
OCWD, was completed in early 2015. OCSD is
directing all reclaimable flows from Plant No. 1 to
OCWD in support of providing maximum amounts of
specification water for reclamation.
A feasibility study for recycling all of OCSD’s reclaimable
effluent was completed in May 2016. This study was
jointly funded by OCSD and OCWD with a grant from
the U.S. Bureau of Reclamation. The feasibility study
identified the projects necessary to implement the
final expansion of GWRS. The expansion will add an
additional 30 million gallons a day (MGD), bringing the
total GWRS capacity to 130 MGD of drinking water.
Capital Improvement Program (CIP)
The proposed CIP budget for fiscal year 2018-19, net of
savings and deferrals, is $174.5 million.
Over the next 10 years, OCSD’s Capital Improvement
Program will:
• Rehabilitate the headworks, primary treatment, solids
handling facilities, and utility systems at Plant No. 1.
• Replace a third of the primary treatment and the
solids dewatering facilities, and rehabilitate the outfall
pumping system at Plant No. 2.
• Construct a new Headquarters Complex.
• Modify existing headworks at Plant No. 2 and
construct a new plant water pump station to
enable the final expansion of the Groundwater
Replenishment System (GWRS).
• Replace or rehabilitate OCSD’s aging pump stations
and trunk sewers in the collections system.
Projects Driving the CIP
Over the next 24 months, the largest capital cash outlays
are:
• Newhope-Placentia Trunk Replacement - $32.8
million ($112 million total budget).
• Headworks Rehabilitation & Expansion at Plant No. 1 -
$19.9 million ($370 million total budget).
• Sludge Dewatering & Odor Control at Plant No. 1-
$21.3 million ($200 million total budget).
• Sludge Dewatering & Odor Control at Plant No. 2 -
$20.2 million ($90 million total budget).
• Ocean Outfall System Rehabilitation - $25.5 million
($166 million total budget).
• P1-128 Headquarters Complex & Site Security at
Plant No. 1 - $20.2 million ($179 million total budget).
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET4
FINANCIAL SUMMARY/OVERVIEW & BUDGETARY ISSUES
Operating Budget Increase – $17.9M
The operations budget for the collection, treatment, and
disposal of wastewater is proposed at $163.6 million,
a $17.9 million (12.3 percent) increase above 2017-
18 projected expenditures. In fiscal year 2019-20, it is
projected to decrease by $0.9 million (0.6 percent).
Although some expenses will increase or decrease
slightly, the overall increase to the operating budget
in 2018-19 over the 2017-18 projected is primarily
attributable to five specific areas:
Salaries and Benefits – $5.6M Increase
Salaries and benefits will increase primarily due
to approved increases in salaries and wages for all
employee bargaining units, an increase of $0.9 million
(8.7 percent) in group insurance costs, and the addition
of one full-time equivalent (FTE) position.
These changes reflect the impacts from existing
collective bargaining agreements.
Contractual Services – $0.9M Increase
Costs for other contractual services are expected to
increase by $0.6 million (21.5%) in 2018-19 to support
the Civil Assets Maintenance Program.
In 2019-20, contractual services costs are expected
to decrease by $3.2 million (12.5%) as a result
of completing sludge dewatering facilities that
will significantly reduce biosolids removal and
transportation costs.
Professional Services – $1.5M Increase
The increase in professional services in fiscal year
2018-19 is to fund repairs to the Sunflower Trunk
Line and the comprehensive Civil Assets Maintenance
Program.
Repairs and Maintenance – $6.0M
Increase
This expense category includes parts and services for
repairing aging treatment plant and collection facilities,
and reflects base budgets for equipment maintenance
as well as out-sourced annual service contracts and
maintenance agreements.
The fiscal year 2018-19 budget increase of $5,966,000
(37.9 percent) is mostly attributable to increases in basic
repairs and maintenance costs and overhaul of Central
Generation (CenGen) engines.
Other Materials, Supplies, Services –
$1.8M Increase
The increase is primarily due to the restoration of the
General Manager’s contingency and the contingency
for prior year reappropriations, and a loss on disposal of
obsolete inventory, partially offset by a reduction in the
property and general liability insurance premiums.
Operating Expenses
(in millions)
$145.7M
$163.6M $162.7M
FY 2017-18
Projected
FY 2018-19
Proposed
FY 2019-20
Proposed
+12.3%-0.6%
Operating expenses increase $17.9 million (12.3%)
in FY 2018-19 and decease $0.9 million (0.6%) in FY 2019-20.
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
5
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET6
FINANCIAL SUMMARY/FUNDING SOURCES BY CATEGORY
Other
$10.8M2.2%
Fees &
Charges
$350.3M
74.4%
Property Taxes
$99.6M
21.2%
Interest
$6.5M
1.4%
Intradistrict
Transfers
$3.7M0.8%
Funding Sources by Category
(in millions)
2016-17 2017-18 2018-19 2019-20
Category Actual Projected Proposed Proposed
Service Fees $300.0 $311.0 $318.0 $320.5
Property Taxes 85.7 94.8 99.6 104.5
Permit User Fees 14.2 18.1 18.3 18.5
Capital Facilities Capacity Charges 15.6 14.0 14.0 14.5
Interest 4.2 6.4 6.5 7.2
Intradistrict Transfers 21.7 2.7 3.7 3.5
Other Revenue 5.8 6.2 10.8 9.2
Debt Proceeds 0.0 0.0 0.0 0.0
Total Funding Sources $447.2 $453.2 $470.9 $477.9
WHERE THE MONEY COMES FROM
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
7
OCSD has a variety of revenue sources available for
operating and capital expenses. The major revenue
sources are:
General Service Fees – $318.0M
User fees are ongoing fees for service paid by customers
connected to the sewer system.
A property owner, or user, does not pay user fees until
connected to the sewer system and receiving services.
Once connected, users are responsible for their share of
the system’s costs, both fixed and variable, in proportion
to their demand on the system. These fees are for both
Single Family Residences (SFR) and Multiple Family
Residences (MFR).
Property Taxes – $99.6M
The County of Orange is permitted by State law
(Proposition 13) to levy taxes at one percent of full
market value (at time of purchase) and can increase
the assessed value no more than two percent per year.
OCSD receives a share of the basic levy proportionate
to what was received in the 1976 to 1978 period, less
$3.5 million, the amount that represents the State’s
permanent annual diversion from special districts to
school districts that began in 1992-93. OCSD’s share
of this revenue is dedicated for the payment of debt
service.
Permit User Fees – $18.3M
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.
Capital Facilities Capacity Charges
(CFCC) – $14.0M
The Capital Facilities Capacity Charge is a one-time
charge imposed at the time a building or structure
is newly connected to OCSD’s system, directly or
indirectly, or an existing structure or category of use
is expanded or increased. This charge pays for OCSD
facilities that exist at the time the charge is imposed, or
to pay for new facilities to be constructed in the future
that will benefit the property being charged.
Interest Earnings – $6.5M
Interest earnings are generated from the investment
of accumulated reserves consisting of a cash flow/
contingency, a capital improvement, a renewal/
replacement, and a self-insurance reserve.
Intradistrict Transfers – $3.7M
In accordance with Amendment No. 2 to the
Agreement for Purchase and Sale of Capacity Rights
in Treatment, Disposal and Sewer Facilities between
Irvine Ranch Water District (IRWD) and OCSD dated
November 15, 1995, ownership is adjusted annually to
reflect the current equity percentage ownership based
on sewage flows.
Other Revenue – $10.8M
Other revenue includes self-insurance assessments for
workers’ compensation and general liability coverage as
well as miscellaneous revenue such as rents and leases.
Debt Proceeds – $0M
Certificates of Participation (COPs) are OCSD’s primary
mechanism for financing capital projects. COPs are
repayment obligations based on a lease or installment
sale agreement. COPs are not viewed as “debt” by the
State of California, but rather a share in an installment
arrangement where OCSD serves as the purchaser.
No new money debt issuances are being proposed over
the next two fiscal years as the $2.7 billion in future
replacement, rehabilitation, and refurbishment projects
anticipated over the next ten years will be adequately
funded through current sewer service fee charges and
existing reserves.
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET8
FINANCIAL SUMMARY/FUNDING USES BY CATEGORY
Capital
ImprovementProgram
$174 .5M41.3%
Debt Service
$80.5M
19.1%
Operating
Expenses
$163.6M
38.7%
Intradistrict
Transfers
$3.7M
0.9%
WHERE THE MONEY GOES
Funding Uses by Category
(in millions)
2016-17 2017-18 2018-19 2019-20
Category Actual Projected Proposed Proposed
Capital Improvement Program, Net $139.7 $124.3 $174.5 $137.0
Operating Expenses 143.4 145.7 163.6 162.7
Debt Service* 180.4 82.0 80.5 80.0
Intradistrict Transfers 21.7 2.7 3.7 3.5
Total Funding Uses $485.2 $354.7 $422.3 $383.2
*The fiscal year 2016-17 debt service amount includes a payment of $39.1 million against OCSD’s unfunded pension liability and a payment of
$41.5 million to the East Orange County Water District as part of an agreement to transfer responsibility for local sewer maintenance.
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
9
OCSD budgets its funds in four distinct areas:
Capital Improvement Program (CIP) -
$174.5M
To provide an appropriate level of service to
OCSD’s rate payers, large capital improvements are
required. The CIP provides for the management
and implementation of these improvements. The
CIP budget includes specific projects as well as an
allocation for anticipated replacement, rehabilitation, or
refurbishment (RRR) projects where detailed job plans
have not yet been prepared. The budgets for specific CIP
projects for 2018-19 and 2019-20 total $177.6 million
and $149.0 million, respectively. However, the net CIP
cash outlays, which includes future rehabilitation and
replacement less savings and deferrals, are budgeted
at $174.5 million and $137.0 million for each year,
respectively.
Operating Expenses - $163.6M
The proposed budget allocates resources to operate,
maintain and manage our sewage collection,
treatment, and disposal system, and for any associated
administrative or technical requirements.
Debt Service - $80.5M
This is the cost of repaying debt. Long-term debt
financing allows OCSD to complete large multi-
year capital projects by providing funds not always
immediately available.
Intradistrict Transfers - $3.7M
In accordance with Amendment No. 2 to the
Agreement for Purchase and Sale of Capacity Rights
in Treatment, Disposal and Sewer Facilities between
IRWD and OCSD dated November 15, 1995, ownership
is adjusted annually to reflect the current equity
percentage ownership based on sewage flows.
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET10
COLLECTION, TREATMENT & RECYCLING PROCESS OVERVIEW
OCSD’s system includes approximately 396 miles
of sewers that convey wastewater generated within
OCSD’s service area to its two treatment facilities,
Reclamation Plant No. 1 located in the City of
Fountain Valley, and Treatment Plant No. 2 located in
the City of Huntington Beach.
Influent wastewater undergoes Preliminary Treatment
upon entry to the treatment plants where it is filtered
through bar screens, and grit and debris are removed.
It then flows to Primary Treatment, which consists
of large settling basins where solids are settled out,
enhanced by the addition of chemicals, and sent to
Solids Processing. Wastewater then flows to Secondary
Treatment, which is a biological process using either
the trickling filter or activated sludge process. Solids
removed in Secondary Treatment are also sent to
digestion.
Methane gas generated during the natural
decomposition of the solids in the digesters fuels the
Central Power Generation System producing enough
electricity to meet two-thirds of the power needed to
run both treatment plants.
Solids are then dewatered to a 20 percent solids
consistency, called biosolids, and recycled via direct
land application or composting.
Approximately 130 million gallons per day of
secondary effluent from Reclamation Plant No. 1 is
sent to the Orange County Water District (OCWD) for
recycling in its two treatment processes.
The first is OCWD’s Groundwater Replenishment
System (GWRS). The GWRS is the largest water
purification project of its kind in the world and its
construction was funded jointly by OCWD and OCSD.
At 100 million gallons per day, the GWRS generates
enough pure water to meet the needs of 850,000
people.
The second is OCWD’s Green Acres Project (GAP)
which is a water recycling effort that provides
reclaimed water for landscape irrigation at parks,
schools and golf courses as well as for industrial uses,
such as carpet dying. The total annual demand for
GAP water is about four million gallons per day.
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
11
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET12
INFRASTRUCTURE ASSET MANAGEMENT
Asset Management
In December 2002, the Orange County Sanitation District
(OCSD) Board adopted their “Asset Management Strategic
Plan and Framework Analysis” (Strategic Plan). The
Strategic Plan defined Asset Management for OCSD as;
“to create and acquire, maintain, rehabilitate, replace and
augment these valuable wastewater assets in the most cost
effective (lowest life cycle cost) sustainable manner at the
level of service required by present and future generations of
regulators and customers at an acceptable level of risk.”
OCSD is committed to providing services for its rate payers
to reliably meet our regulatory mandates and levels of
service approved by the Board of Directors, and will provide
these services using sustainable engineering principles that
result in the lowest responsible lifecycle cost. OCSD installs,
operates, maintains, refurbishes and disposes of assets with
lifecycles measured from years to decades, so an approach
which balances long, medium and short-term needs is
necessary. OCSD’s asset management program has evolved
into a comprehensive decision-making framework that
encompasses engineering planning, design and construction
of quality facilities, optimized operation, proper
maintenance, and planned refurbishment and disposal
that will meet OCSD’s changing needs. This coordinated
decision making process will allow OCSD to consistently
meet mandated levels of service to the rate payers at the
lowest lifecycle cost.
OCSD’s Asset Management Plan focuses on the long-
term planning of maintenance and capital improvement
projects to ensure the proper rate structure is in place to
support sustainable operations and to prioritize condition
assessment studies based on service life and service
conditions. These are important starting points and have
yielded tangible benefits in reduced risk levels and an
improved capital planning approach. The implementation of
the Maximo Computer Maintenance Management System
(CMMS) is an example of an effort to improve OCSD’s
Asset Register. CMMS Technicians and the Asset Engineers
continue to work to update the database information
including installation date, asset cost, condition, and
criticality in the new system.
OCSD has been striving to more accurately identify medium
to long-term capital cash flow requirements. Specifically,
the Engineering Planning Division has been working on
developing a 20-year Capital Improvement Program (CIP)
by creating specific project plans for the rehabilitation,
replacement, improvements and expansion for each
treatment plant or collections area.
This medium to long-term planning is important for several
reasons. By moving away from narrowly focused projects to
solve individual problems, to more comprehensive projects
refurbishing entire processes, OCSD benefits by having less
operational disruption and more efficient project delivery,
better cash flow estimation, and better operations and
maintenance decision-making framework. This is a huge
undertaking based on the number of asset and facilities,
but over time the undefined future rehabilitation capital
estimates within the 20-year window are expected to be
drastically reduced and replaced by more specific estimated
capital needs.
Complementing the medium- to long-term planning are
the short-term efforts to coordinate maintenance actions
that can reduce risks, actively defer the larger refurbishment
projects, and reduce asset consumption rates to minimize
the need for replacement of structures and conveyance
systems when projects are executed. The Planning Division
asset engineers are constantly reviewing their area scopes of
work, utilizing their criticality and condition information
and engineering judgment, to identify opportunities for
operational adjustments or maintenance activities that cost
effectively extend the life of key assets which may allow for
deferral of the larger overall project. This may be a targeted
equipment replacement or pipeline repair that is more
urgent than the need of the overall facility. These engineers
may also identify opportunities to reduce asset consumption
through coating systems, atmosphere improvements or
small structure repairs before major damage is done. These
actions can drastically reduce the cost of future projects
by preventing the need to demolish and replace entire
structures.
OCSD is committed to continuous improvement of the
process by which it manages the assets and facilities that are
required to reliably deliver its level of service commitments.
The additional resources and individual accountability for
specific areas has improved, and will continue to improve
our capital planning, project packaging, project execution
and delivery, plant operability and maintenance planning.
The average age and value of the assets OCSD owns is
increasing steadily over time, the latent asset replacement
obligation is rising, and as a consequence, OCSD needs
to plan for decreased capital projects for expansion and
increased renewal expenditures in the future relative to past
expenditure levels. Additional focus will need to be given
to ensuring that appropriate operation and maintenance
strategies are being applied that consider the different ages
of assets being maintained.
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
13
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET14
INFRASTRUCTURE ASSET MANAGEMENT
Asset Valuation
The replacement valuation for all of OCSD’s assets
has been updated in 2018 as part of the 2017 Facilities
Master Plan project. The table below presents the
current replacement and depreciated values of OCSD’s
assets. The replacement value represents the cost in
2018 dollars to completely rebuild all the assets to a new
condition. The depreciated value is the book value of the
assets based on their age, which is a prediction of their
current condition.
Planned CIP Outlays
The following chart shows the 20-year CIP outlay
which includes current and predicted future Capital
Improvement Program projects.
Valuation Plants Collection Total
Replacement Value $7.28 $3.56 $10.84
(in billions)
Depreciated Value $1.64 $0.48 $2.12
(in billions)
0
50
100
150
200
250
300
350
400
450
FY 3
6
-
3
7
FY 3
7
-
3
8
FY 1
8
-
1
9
FY 1
9
-
2
0
FY 2
0
-
2
1
FY 2
1
-
2
2
FY 2
2
-
2
3
FY 2
3
-
2
4
FY 2
4
-
2
5
FY 2
5
-
2
6
FY 2
6
-
2
7
FY 2
7
-
2
8
FY 2
8
-
2
9
FY 2
9
-
3
0
FY 3
0
-
3
1
FY 3
1
-
3
2
FY 3
2
-
3
3
FY 3
3
-
3
4
FY 3
4
-
3
5
FY 3
5
-
3
6
FISCAL YEAR
Budget CIP Future CIP Rehabilitation or Replacement
$
i
n
m
i
l
l
i
o
n
s
20 YEAR CIP OUTLAY
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
15
Through asset management, OCSD’s capital
improvement and maintenance programs work
collaboratively to ensure that our mission is delivered
reliably and that our facilities are managed in a way that
minimizes overall life cycle costs.
Below is a status of the fiscal year 2017-18 infrastructure
maintenance activities and planned activities for fiscal
year 2018-19.
Collection System:
OCSD’s collection system consists of 396 miles of
sewers. The maintenance of all regional sewers is
actively managed but only 230 miles of regional
sewers are on a cleaning schedule. The largest sewers
are typically self-cleaning due to higher flows and
locations closer to the treatment plants. The regional
collections system also includes 15 pump stations and
three metering locations. Typical collection system
maintenance activities consist of: televising, inspecting,
and cleaning sewer lines; operating, maintaining and
cleaning pump stations with associated facilities; and
chemical conditioning of the sewage to reduce corrosion
and control odors. Maintenance activities are based on
established levels of service to ensure compliance with
our Sewer System Management Plan, reducing spills,
increasing reliability and safety, and ensuring that our
facilities are managed, operated and maintained to
minimize overall life cycle costs and need for repairs.
The cleaning frequencies are based on data from pipe
inspections, closed-circuit television (CCTV) work,
historical records, and industry best practices. The
planned activities help extend the useful life of the assets
and minimize nuisance odors.
During fiscal year 2017-18 the following maintenance
activities are projected to be completed:
• Cleaning of 93 miles of regional sewer lines on a
cleaning schedule.
• CCTV video inspection of 170 regional system
manholes.
• CCTV video inspection of 75 miles of regional sewer
pipeline.
• 91 percent of scheduled pump station preventative
maintenance work.
• Cleaning of 99 percent of trouble spot and scheduled
inverted siphon work.
• Managed odor control chemical expenses to
103 percent of budget.
The following emergency preparedness efforts were also
completed:
• Developed bypass pumping plans for all pump
stations.
• Purchased 12” hose and trailer to use with large
pumps.
• Completed analysis and update of back-up generator
requirements for pump stations.
Total costs: $10,032,760
The following activities and goals are planned for fiscal
year 2018-19:
• Clean 65 miles of regional sewer lines on a cleaning
schedule.
• CCTV video inspection of 500 regional system
manholes.
• CCTV video inspection of 80 miles of regional sewer
pipeline.
• Complete at least 90 percent of scheduled pump
station preventative maintenance work.
• Clean 90 percent of trouble spot and scheduled
inverted siphon work.
• Manage odor control chemical expenditures to
between 95-100 percent of budget.
• Complete year one of a two-year effort to reduce
potential arc flash by adjusting and testing protective
relays and breakers
• Purchase of larger generators for pump stations for
emergency preparedness, based on analysis completed
in the previous year
• Purchase of emergency preparedness bypass pumping
hardware with installation of in-place storage, set up
documentation and staff training
Estimated total costs: $11,243,960
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET16
INFRASTRUCTURE ASSET MANAGEMENT
Collection System Capital Improvement
Projects:
OCSD’s collections projects go through an intensive
planning and design process to ensure all elements
of the project are thoroughly assessed. These projects
typically renew or replace aging pipelines and pump
stations, upgrade facilities to meet current codes and
standards, and, in some instances, increase flow capacity
due to growth in localized portion of our service area.
We are currently planning and executing a comprehensive
program to renew our collection system. One of
the larger projects is the Newhope-Placentia Trunk
Replacement (Project No. 2-72) which is taking place
in the cities of Fullerton and Anaheim. Seven miles of
sewer along State College Boulevard, from Yorba Linda
Boulevard to Orangewood Avenue, will be upsized to
allow abandonment of the Yorba Linda Pump Station
which diverts reclaimable wastewater to the Santa
Ana River Interceptor, which cannot be reclaimed
at the Orange County Water District’s (OCWD’s)
Groundwater Replenishment System (GWRS). The
project will also include modifications to existing
diversion structures to add flexibility to divert other
reclaimable flow. This project also provides adequate
capacity for future development, minimizing the risk of
sewer spills in the future. Construction of the first phase
of the project was completed in fall 2017. The second
phase of the project is scheduled to begin in summer
2018. The project has a budget of $112 million.
Another large-scale project is the Rehabilitation of the
Western Regional Sewers (Project No. 3-64) which
covers approximately 17 miles of sewers in the cities of
Anaheim, Buena Park, Cypress, La Palma, Los Alamitos,
Seal Beach and unincorporated areas of the County
of Orange referred to as Rossmoor. This large project
is required to rehabilitate or replace pipes that were
installed 45 to 55 years ago. The sewers have multiple
deficiencies which have allowed the intrusion of ground
water. In some cases, hard calcium deposits have
developed, making the pipe difficult to clean, and may,
over time, impede the wastewater flow. Portions of the
project will be relined and others will be replaced with
larger diameter pipelines. Over 150 manholes will be
replaced. This project is currently in the design phase
with construction anticipated for 2020. This project
budget is $202 million.
The Westminster Boulevard Force Mains Replacement
(Project No. 3-62) will replace two existing force mains
that run three miles along Westminster Boulevard from
Seal Beach Boulevard to Rancho Road in the City of
Westminster. The project is in design, with construction
anticipated for 2020. The budget for this project is
$54 million.
In Newport Beach, Bay Bridge Pump Station
Replacement (Project No. 5-67) will replace the existing
Bay Bridge pump station to meet current building,
electrical, and safety codes, and to meet projected
capacity needs. The existing force mains will also be
replaced and upsized, and will extend from the new
pump station location, across the Back Bay channel,
to connect with the existing pipes near the Dover Ave
and Pacific Coast Highway intersection. The project is
currently in the design phase. The construction of both
the force mains and pump station is anticipated to begin
in 2020. The budget for this project is $64 million.
Reclamation Plant No. 1:
Flow from Reclamation Plant No. 1 is delivered to the
Orange County Water District (OCWD) for recycling
via the Ground Water Replenishment System (GWRS).
During 2015 the expanded plant came on line, with
capacity to deliver an additional 30 million gallons per
day for a total of 130 million gallons per day.
The maintenance organization continues to implement
industry best practices for safety, effectiveness and
reliability. During fiscal year 2017-18, several major
initiatives were completed to enhance plant safety and
reliability. These included a comprehensive lubrication
assessment and preparation of enhanced Job Plans for
low voltage Motor Control Centers (MCCs) and switch
gear to comply with NFPA70 standards. An analysis
of our current pumping system at the Steve Anderson
Lift Station (SALS) was also conducted, resulting in an
improvement over current technology by converting
to close-coupled pump motors. Throughout the Plant,
more than 4,600 preventative maintenance activities
were performed. In addition to these routine activities,
the following maintenance and repair activities are
projected to be completed in fiscal year 2017-18:
• Replacement of all check valve and jet cell ignitors for
three CenGen engines.
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
17
• Installation of automatic balancing equipment on one
engine to improve efficiency and reliability.
• Overhaul of one cake conveyor and one belt press for
biosolids dewatering.
• Major service on two blowers that service the
Activated Sludge secondary treatment facility.
• Major maintenance service of ten primary clarifiers
for increased reliability.
• Replacement of the vane bushings on three of the
Activated Sludge blowers.
• Cleaning and valve replacement of three digesters.
• Overhaul of one digester gas compressor.
Total costs: $8,586,560
During fiscal year 2018-19, there are more than 5,000
preventative maintenance activities that are scheduled
to be completed at Plant No.1. This includes typical time
or cycle based maintenance tasks such as adjustments
and mechanical alignments, cleaning and tightening of
electrical equipment, calibration of sensors and meters,
changing of lubricants and filters, exercising equipment,
rebuilds and regulatory testing. While completing
these activities we will simultaneously conduct an
optimization study of all preventative maintenance
tasks to ensure assets are effectively maintained at
proper intervals and lower cost. In addition, staff will
be utilizing predictive technologies such as vibration
analysis to measure imbalance in rotating equipment,
thermography to measure excessive heat, oil analysis
to predict failure of lubricants, and ultrasonic to detect
leaks as well as deterioration and short-circuiting in
electrical equipment. We will also develop and initiate
implementation of the lubrication program based on the
assessment completed in the previous year. Other major
planned activities for fiscal year 2018-19 at Reclamation
Plant No. 1 include:
• Major overhaul of one CenGen Engine.
• Meet stricter NFPA110 standards for servicing
standby and mobile generators.
• Complete year one of a two-year effort to reduce
potential arc flash by adjusting and testing protective
relays and breakers.
• Assess underground cable condition to ensure reliability of the electrical distribution network.
• Major service on one blower that services the Activated Sludge secondary treatment facility.
• Major maintenance service of ten primary clarifiers
for increased reliability.
• Cleaning and valve replacement of two digesters.
Total estimated costs: $10,186,050
Reclamation Plant No. 1 Capital
Improvement Projects:
These projects are intended to rehabilitate or reconstruct
major components of our treatment process to ensure
compliance with regulatory permits, enhance water
recycling and safety.
One of the largest projects currently being designed is the Headwork Rehabilitation at Plant No. 1 (Project
No. P1-105). The facility is almost 30 years old, so a
comprehensive refurbishment is required in order to
extend the life of the facility. The project will rehabilitate
systems including the metering and diversion structure, the bar screen building, the bin loading building,
the main sewage pump station, the grit basins, the
primary influent channels, the headworks odor control
scrubbers, and electrical power distribution and control
systems. This project will also replace the emergency pumping capacity that has been provided by the original
headworks pumping system dating back to the 1950s.
The total budgeted cost for this project is $370 million.
While OCSD generally has adequate hydraulic
treatment capacity, additional solids handling capacity is needed. The Sludge Dewatering and Odor Control
Project (No. P1-101) is necessary to support the need
for more capacity to thicken and dewater sludge due
to the conversion to full secondary treatment as well as
increased flow to support the expansion of the GWRS. The 40-year old system has reached the end of its
useful life and as such will be replaced with a new and
improved facility that will increase cake dryness which
will reduce biosolids management cost. This will in
turn improve sludge thickening to optimize the use of existing digesters thus eliminating the need to construct
new digesters. The project will also help us meet our level of service goal by reducing odors. The project
budget is $195 million.
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET18
INFRASTRUCTURE ASSET MANAGEMENT
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
19
A project closely tied to the solids dewatering facility is
the Digester Rehabilitation (Project No. P1-100) which
is rehabilitating 12 digesters. The project will refurbish
aged storage tanks, as well as handle the increased
volume of solids more efficiently and with greater
reliability. The sludge pumping, heating, structural,
mechanical, and electrical and control systems will
all be rehabilitated which will increase the quality of
the sludge production. By rehabilitating our existing
digesters, we reduce the risk of failure and extend the
life of the assets, minimizing future expenditures. The
total project budget is $66 million.
Treatment Plant No. 2:
All flows entering Treatment Plant No. 2 are treated to
full secondary standards and then discharged four miles
offshore through our ocean discharge outfall. Plant
No. 2 has also implemented the same maintenance
best practices implemented at Plant No. 1 to ensure
consistency across OCSD in the areas of safety and
asset reliability. Plant No. 2 will also benefit from the
lubrication assessment conducted during fiscal year
2017-18 as well as the enhanced job plans for MCCs
and switch gear to comply with NFPA70 standards. In
addition to more than 4,700 preventative maintenance
activities completed during fiscal year 2017-18, the
following major activities are projected to be completed:
• Cleaning and valve replacement of three digesters.
• Replacement of all check valve and jet cell ignitors for
one CenGen engine.
• Rehabilitation of one CenGen electrical generator.
• Installation of automatic balancing equipment on one
engine to improve efficiency and reliability.
Total costs: $5,898,080
During fiscal year 2018-19, there are more than 5,000
preventative maintenance activities that are scheduled
to be completed at Treatment Plant No. 2. This includes
typical time or cycle based maintenance tasks such
as adjustments and mechanical alignments, cleaning
and tightening of electrical equipment, calibration of
sensors and meters, changing of lubricants and filters,
exercising equipment, rebuilds and regulatory testing.
While completing these activities we will simultaneously
conduct an optimization study of preventative
maintenance tasks to ensure assets are effectively
maintained at proper intervals and lower cost. In
addition, staff will be utilizing predictive technologies
such as vibration analysis to measure imbalance in
rotating equipment, thermography to measure excessive
heat, and oil analysis to predict failure of lubricants.
We will also develop and initiate implementation of the
lubrication program based on the assessment completed
in the previous year.
Other major planned activities at Treatment Plant No. 2
for fiscal year 2018-19 include:
• Overhaul of one CenGen Engine.
• Cleaning and valve replacement of four digesters.
• Major repair of two primary clarifiers and six
secondary clarifiers for increased reliability.
• Meet stricter NFPA110 standards for servicing
standby and mobile generators.
• Complete year one of a two-year effort to reduce
potential arc flash by adjusting and testing protective
relays and breakers.
• Conduct medium voltage cable assessment.
• Replace one boiler heat exchanger.
• Complete repair of secondary clarifier inlet gates.
• Replace all check valve and jet cell ignitors for four
CenGen engines.
Total estimated costs: $9,766,350
Treatment Plant No. 2 Capital
Improvement Projects:
The Primary Treatment Rehabilitation Project (Project
No. P2-98) will rehabilitate the primary clarifiers,
influent pipes, construct new primary effluent pipes,
and rehabilitate and upgrade the odor control systems.
These facilities date back to the late 1950s and need
seismic and condition based upgrades. By replacing old
structures and installing new systems, we will improve
the resiliency of our infrastructure and thus improve
our ability to provide service. This is anticipated to be a
very long duration project because the need to maintain
treatment operations during the project. The total
project budget is $245 million.
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET20
INFRASTRUCTURE ASSET MANAGEMENT
Treating 100 percent of our influent to full secondary
treatment standards means there are more solids to
manage. The Sludge Dewatering and Odor Control
project (Project No. P2-92) is replacing the current belt
press dewatering system with a centrifuge dewatering
facility that will remove a greater amount of water from
the sludge resulting in reduced disposal costs for OCSD.
This $90 million project will be in construction through
2020.
The Headworks Modifications at Plant No. 2 for GWRS
Final Expansion (Project No. P2-122) will support the
GWRS Final Expansion by separating non-reclaimable
flows from those that can be transferred to OCWD for
reclamation. The project will include the installation of
new gates, replacement of three existing influent pumps
at the existing headworks, and modification of waste
sidestream pumping and piping. Costs associated with
this project will be reimbursed by OCWD.
As we make improvements throughout the plant, it
is imperative we pay attention to our ocean outfall
systems. Many components of the system such as the
pipeline assets have already been addressed, so now we
turn our attention to the pumping systems. Project No.
J-117, the Ocean Outfall System Rehabilitation, will
rehabilitate the Ocean Outfall Booster Station and the
84-inch and 120-inch interplant effluent lines between
Plant No. 1 and Plant No. 2. The pump station work
includes rehabilitation of the mechanical, electrical, and
civil systems which will extend the life of the facility
and increase the efficiency of the system. In addition,
a new Low Flow Pump Station will be added due to
our increased water recycling rates, which will reduce
our outfall flows below the minimum capacity of the
existing effluent pumps. This project will also relocate
the existing Plant Water Pump Station to prevent water
that is not reclaimable by the GWRS from flowing into
the reclaimable portion of the treatment plant. The
project will also replace existing electrical switchgear
at the Central Generation Building. The budget for this
project is $166 million. Costs associated with the Plant
Water Pump Station will be reimbursed by the OCWD.
Planning Studies:
As part of the long-term CIP planning efforts, several
studies are currently underway evaluating various
areas of the Plants and the collection system to
determine their condition, and identify deficiencies
or improvements needed. These studies include the
Seismic Evaluation of Structures at Plant Nos. 1 and
2, Collections Capacity Evaluation Study, Stormwater
Master Plan, Edinger Pump Station Rehabilitation
Study, and Rectangular Primary Clarifier Reliability
Study at Plant No. 1. The results of these studies will
help define and refine future CIP projects to improve
our facilities and systems.
Civil Assets Maintenance Program
The Civil Assets Maintenance Program (CAMP) covers
proactive and corrective maintenance tasks for all
OCSD civil assets at all its facilities located at Plants
No. 1 and No.2, as well as all OCSD pump stations
and the collections system. CAMP works to ensure
that OCSD civil assets meet design life expectancy and
will complement the existing maintenance programs
for mechanical, electrical and instrumentation
maintenance. In addition, the program ensures the
assessment of nearly all structures in order to achieve
OCSD’s primary mission of protecting the public
health and environment. This includes a valve and
gate exercising program comprised of more than 264
preventive maintenance tasks for more than 1,650
valves and gates in both Plants and the collections
system. 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. CAMP will also implement an equipment
rotation program to ensure that equipment wear is
predictable. For fiscal year 2018-19, 45 planned entries
and inspections of civil structures are planned, which
will include minor repairs of identified deficiencies.
Estimated total costs: $3,228,800
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
21
22 EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
CAPITAL IMPROVEMENT PROGRAM
CIP Budget Request Summary
Each year, the Board of Directors, through their
committee process, reviews and approves the Capital
Improvement Program (CIP) prepared by staff for both
sewage collection system projects (collections) and the
joint works treatment and disposal system projects.
CIP projects take several years to complete the planning,
design, and construction cycle. The proposed budget for
each project covers the life of the project. This budget
is reevaluated each year for the purpose of managing
annual cash flows. Thus, many of the projects in the
CIP Budget for FY 2018-19 and 2019-20 are continuing
projects that were approved in prior years.
In December 2017, the 2017 Facilities Master Plan
was adopted by the Board of Directors. The Master
Plan identified a phased 20-year program of capital
improvement projects that will allow OCSD to maintain
reliability and accommodate future growth, as well as
meet future regulatory requirements, level of service
goals, and strategic initiatives.
With this phased 20-year program as a starting point,
the Asset Management Program within the Planning
Division continues assessing the condition of OCSD’s
existing assets and systems to ensure that these assets
and systems can provide the necessary level of service.
The Planning Division continues reviewing and
updating the ongoing and future CIP to appropriately
manage the risks associated with asset or system failure.
Projects can be delayed, consolidated or rescoped to
help ensure that the CIP is delivered in the most efficient
way possible. The Asset Management Program will
continue these efforts and will continue to define the
future CIP project requirements not currently included
on the CIP list but are anticipated within the long-term
financial plan to ensure effective and efficient operations
in the future.
This year, five new projects are proposed for addition to
the 2018-20 budget. These are:
• Project No. 3-67: Seal Beach Pump Station
Replacement
• Project No. 3-68: Los Alamitos Sub-Trunk Extension
• Project No. P1-133: Primary Influent Splitter Box
Rehabilitation at Plant No. 1
• Project No. P2-133: B/C-Side Primary Clarifiers
Rehabilitation at Plant No. 2
• M-FE: Small Construction Projects Program
OCSD staff has also validated all active and future CIP
projects to ensure that the project scopes of work and cost
estimates were up-to-date. Through the budget validation
process, each project’s schedule, staff resources, total
project cost, cash flow and risks are assessed to confirm
the budgetary requirements. The validated CIP includes
68 active and future capital projects, five programs,
such as the Planning Studies Program (M-Studies) and
Small Construction Program (M-FE), and budget for
capital equipment purchases with a total CIP budget
authority of $4.01 billion. The total CIP budget authority
has decreased by $112 million as compared to FY 2017-
18 approved budget of $4.12 billion. The changes are
summarized below:
FY2017-18 Approved Total CIP
Budget Authority $4.12B
Net Changes:
New Projects $171M
Closed/Cancelled Projects ($180M)
Budget Changes for Active Projects ($94M)
Budget Changes for Future Projects ($5M)
($108M)
FY2018-19 Proposed Total CIP
Budget Authority $4.01B
Following is a table of the FY 2018-19 proposed CIP
budget:
FY 2018-19
Description CIP Budget
Capital Improvement Program (CIP) $177.6M
Future Rehab & Replacement $14.3M)
$191.9M
Less: Savings and Deferrals ($17.3M)
Net CIP Outlay $174.5M)
The proposed 2018-19 and 2019-20 net CIP outlays can
be categorized by the location of the projects in terms of
wastewater treatment process, or by the reasons why the
projects are needed, i.e. project drivers. The FY 2018-19
and 2019-20 charts showing the distribution of the
funds by CIP driver are shown on the following page.
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
23
The proposed net CIP outlays can also be categorized by
project phase or status. The following chart shows the
net CIP outlays of projects in the Planning, Design and
Construction phases for FY 2018-19.
Projects that are in the Planning phase make up about
6% of the FY 2018-19 net CIP outlay. Projects in the
Planning phase are planning or research studies that are
mostly managed under the Planning Studies Program, or
M-Studies.
Forty-two percent of the FY 2018-19 net CIP outlay will
be for projects that are in the Design phase. The three
largest projects in the Design phase are Headquarters
Complex and Site Security at Plant No. 1 (Project No.
P1-128), Headworks Rehabilitation and Expansion at
Plant No. 1 (Project No. P1-105), and Bay Bridge Pump
Station Replacement (Project No. 5-67) with projected
expenditures of $10.5 million and $12.4 million,
$13 million respectively in FY 2018-19.
Fifty-two percent of the FY 2018-19 net CIP outlay
will be spent in construction. The four most significant
construction projects are the Consolidated Demolition
and Utility Improvements at Plant No. 2 (Project No. P2-
110), Sludge Dewatering and Odor Control at Plant No. 2
(Project No. P2-92), Sludge Dewatering and Odor Control
at Plant No. 1 (Project No. P1-101), and Newhope-
Placentia Trunk Replacement (Project No. 2-72) with
projected FY 2018-19 expenditures of $11.3 million, $11.9
million, $12.2 million, and $13.5 million, respectively.
Regulatory$17.6M9.9%
Additional
Capacity
$25.2M
14.2%
Replacement/Rehabilitation
$109.5M
61.7%
Strategic
Initiatives
$25.2M
14.2%
Regulatory$12.0M8.1%
AdditionalCapacity$16.9M11.3%
Replacement/Rehabilitation$88.0M59.1%
StrategicInitiatives$32.1M21.5%
FISCAL YEAR 2018-19
Capital Improvement Authority by CIP Driver
Total = $177.6 Million
FISCAL YEAR 2019-20
Capital Improvement Authority by CIP Driver
Total = $149.0 Million
Planning6%
Construction
52%
Design
42%
Projected FY 18-19 Net CIP Outlay
By Project Status
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET24
DEBT FINANCING PROGRAM
Debt Financing
Due to the potential magnitude of the capital
improvement program, it may be necessary that OCSD
utilize debt financing to meet its total obligations. Debt
financing allows OCSD to meet projected construction
schedules while achieving the lowest possible user fees,
as well as long-term stability in future sewer service
fee rates.
Certificates of Participation (COP)
The primary debt financing mechanism used is
Certificates of Participation (COP). COPs are
repayment obligations based on a lease or installment
sale agreement. The COP structure was selected over
other structures because COPs are not viewed as debt by
the State of California, as the purchaser does not actually
receive a “bond,” but rather a share in an installment
sale arrangement where OCSD serves as the purchaser.
COPs can be issued with fixed or variable interest rates.
As of July 1, 2018, the total outstanding COP
indebtedness will be $1.0 billion.
Build America Bonds Financings
OCSD issued the $80.0 million Wastewater Revenue
Obligations, Series 2010A in May 2010 and the
$157.0 million Wastewater Revenue Obligations,
Series 2010C in November 2010 as “Build America
Bonds” (BABs) fixed rate debt.
The American Recovery and Reinvestment Act of
2009 created a new financing product, BABs, for the
municipal issuer. BABs are issued as higher interest
taxable bonds; however, the U.S. Treasury provides a
35 percent subsidy on interest payments. The net cost,
after accounting for the 35 percent subsidy payment,
frequently results in lower net costs to the issuer,
specifically in the maturity years beyond ten years.
On March 1, 2013, the federal government implemented
certain automatic spending cuts known as the sequester.
As a result of the sequester, federal subsidy payments
on BABs have been reduced annually from a high of
8.7 percent for the federal fiscal year ended September
30, 2013 to a low of 6.6 percent for the federal fiscal year
ended September 30, 2018.
Dedicated Funding Source
In 1992 and 2004 the Board of Directors formalized the
dedication of certain funding sources. To ensure the
continuation of favorable credit ratings, revenues were
dedicated to debt service in the following order:
1. Ad valorem property taxes
2. Sanitary sewer service charges
3. Other revenues
This apportionment of the ad valorem tax was
consistent with and pursuant to the Revenue Program
adopted in April 1979 to comply with regulations of the
Environmental Protection Agency and the State Water
Resources Control Board and in accordance with COP
documents and Board policy.
OCSD Maintains AAA Bond Rating
OCSD’s bond rating is “AAA” from both Standard
& Poors and Fitch Ratings. An “AAA” Rating is the
highest for a government agency. In order to maintain
this rating, OCSD adheres to its debt policy and
coverage ratio requirements. This Board-adopted policy
serves as the agency’s guide in the management of
existing debt and in the issuance of future debt.
Debt Ratios
OCSD has contractual covenants within the existing
COP agreements which require minimum coverage
ratios of 1.25. The minimum coverage ratio is the
ratio of net annual revenues available for debt service
requirements to total annual debt service requirements
for all senior lien COP debt. The coverage ratio for
senior lien COP debt is being proposed to remain above
3.60 for fiscal years 2018-19 and 2019-20.
Future Financings
No new money debt issuances are being proposed over
the next two fiscal years as the $2.7 billion in future
replacement, rehabilitation, and refurbishment projects
anticipated over the next ten years will be adequately
funded through current sewer service fee charges and
existing reserves.
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
25
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET26
OPERATING EXPENSES
Summary of Operating and Maintenance Expenses
(in millions)
2016-17 2017-18 2018-19 2019-20
Category Actual Projected Proposed Proposed
Salaries and Benefits $91.6 $90.4 $96.0 $98.2
Contractual Services 23.7 24.5 25.2 22.1
Repairs and Maintenance 14.8 15.7 21.7 19.3
Operating Materials & Supplies 14.9 14.9 15.8 18.9
Utilities 6.1 6.9 7.4 9.0
Professional Services 3.5 3.9 5.4 4.6
Other Materials, Supplies, Services 2.4 3.5 5.3 4.2
Self-Insurance Requirements 2.6 2.1 2.4 2.5
Administrative Expenses 1.8 2.0 2.0 1.9
Training and Meetings 0.9 1.0 1.1 1.0
Research and Monitoring 0.9 0.8 1.1 1.1
Printing and Publications 0.3 0.3 0.3 0.3
Cost Allocation (20.1) (20.3) (20.1) (20.4)
Total Operating Expenses $143.4 $145.7 $163.6 $162.7
Salaries, Wages, and Benefits – $96.0M
Salaries and Wages – The proposed budget for Full
Time Equivalent (FTE) positions for 2018-19 reflects
an increase of one FTE (0.2 percent) from the 2017-18
approved staffing level of 635.0 FTEs to 636.0 FTEs.
Provision has been made in these salary projections to
comply with the terms of the most recently adopted
Memorandum’s of Understanding.
Retirement – OCSD employees are members of
the Orange County Employees’ Retirement System
(OCERS). Information from OCERS indicates that the
employer’s required contribution rates will be
decreased in fiscal year 2018-19 from 12.33 percent
to 12.28 percent.
Group Insurance – These expenses include OCSD’s
share (approximately $17,100 per employee) of
employee medical plan benefits for the indemnity
plan, prepaid HMO plans, dental insurance plan, and
life and disability insurance premiums. The proposed
budget includes a ten percent increase for medical plans
starting January 2019.
Contractual Services – $25.2M
The treatment plants currently produce about 800
wet tons per day of biosolids which are recycled in
California and Arizona. About half of the biosolids are
currently allocated to create compost and the other half
is used on farms to grow feed and seed crops. The 2018-
19 biosolids budget is $16.2 million, approximately
64 percent of the Contractual Services budget. Other
residuals solids and waste includes disposal costs for
grit and screening waste, digester cleaning waste, and
hazardous materials.
This category also includes appropriations for grounds
keeping, janitorial, security, toxic waste removal, outside
laboratory, trash pickup, plant site sweeping, closed
circuit television pipeline inspections, line cleaning, and
temporary services
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
27
Repairs and Maintenance – $21.7M
This item, which is for parts and services for repair
of plant and collection facilities and annual service
contracts, is expected to increase $6.0 million, or
38 percent above the 2017-18 projected costs of
$15.7 million.
Planned repairs include: CenGen engine overhaul
($2.7M); digester cleaning ($2.2M); and clarifier repairs
and rehabilitation ($1.5M).
Operating Materials and Supplies –
$15.8M
Chemical Coagulants – Anionic polymer is added to
the influent wastewater along with ferric chloride to
improve solids removal efficiencies in the primary
clarifiers. Ferric chloride is also added to the digesters
for solids odor control. Cationic polymer is added
to digested sludge prior to dewatering to aid in
coagulation, improving the sludge and water separation
process. Cationic polymer is also added to the waste
activated sludge dissolved air flotation thickeners
(DAFTs) to improve solids coagulation.
The costs for this group of chemicals are expected to
increase by $246,000 or 4.7 percent above the 2017-18
projected costs of $5.2 million.
Odor Control Chemicals – OCSD uses hydrogen
peroxide, sodium hydroxide (caustic soda), sodium
hypochlorite (bleach) and muriatic acid as the primary
odor control chemicals in the treatment plants. Ferrous
chloride, magnesium hydroxide, calcium nitrate, and
caustic soda are the primary odor control chemicals
used in the collection system.
The 2018-19 budget for these chemicals is $7.1million,
3.7 percent lower than the 2017-18 projected costs of
$6.9 million.
Utilities – $7.4M
During fiscal year 2018-19, the overall cost for utilities,
a significant component of the operating budget, is
anticipated to increase by $472,000, or 6.8 percent.
Natural Gas – Natural gas is purchased from two
providers for different purposes. Purchases from a gas
marketer are used to supplement the digester gas that is
used to run the CenGen facilities. The fiscal year 2018-
19 natural gas budget is $576,000, 11.8 percent higher
than the projected 2017-18 costs.
Electricity – Electricity is the largest utility cost incurred
by OCSD. Purchased electricity is used in running the
plant processes as a supplement to power produced in
the central generation facilities.
The 2018-19 proposed budget is $5.7 million,
5.4 percent higher than the 2017-18 projected.
Water – Water is used throughout the treatment plants.
Potable (drinking) water is supplied by the Cities of
Fountain Valley and Huntington Beach; reclaimed
water is supplied by the GAP; and plant water is
disinfected secondary effluent.
• GAP water is secondary treated effluent from OCSD
that is further treated by the Orange County Water
District. GAP water is significantly less expensive than
potable water and is used in the process wherever
possible. The major uses of GAP water include
cooling water, solids handling, and landscaping.
By agreement, OCSD receives up to 1,120 acre feet
per year of GAP water at no charge. Since OCSD’s
demand for GAP water is not expected to exceed the
allotment of “free water”, there is no proposed budget
for GAP water in 2018-19.
• Potable Water – The potable water budget includes
water supplied by the City of Fountain Valley for
Plant No. 1 and the City of Huntington Beach for
Plant No. 2. Approximately 5 percent of the potable
water at Plant No. 1 is used for domestic uses and
less than 1 percent is used for irrigation. The majority
of the irrigation at both plants uses reclaimed water.
Less than 1 percent of the potable water used at Plant
No. 2 is for domestic uses due to the relatively small
number of employees at Plant No. 2. The proposed
total potable water cost for 2018-19 is $619,000, a
2.4 percent increase from the projected 2017-18 costs.
Professional Services – $5.4M
Professional Services includes General Counsel, special
labor counsel, audit and miscellaneous accounting
services, legislative advocacy, engineering, and other
technical consulting services.
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
OPERATING EXPENSES
28
Other Material, Supplies,
Services – $5.3M
This category of costs includes the in-lieu insurance
premium used to maintain the level of accumulated
reserves for the property and general liability self-
insurance programs. This in-lieu cost for 2018-19 is
proposed at $1.3 million.
Expenses not chargeable to other categories, such
as freight and miscellaneous items, and annual
regulatory fees assessed by the South Coast Air Quality
Management District, are recorded with this category.
Insurance – $2.4M
OCSD’s outside excess general liability insurance
coverage is $40 million per occurrence with self-
insurance retention of $500,000.
OCSD’s property insurance coverage is $1 billion for
perils of fire and $300 million for perils of flood, subject
to a self-insurance retention of $250,000. OCSD is
partially self-insured for earthquake, but does carry
$25 million in coverage on 15 key structures with a
$5 million deductible. OCSD also has a $50 million
sublimit for builder’s risk under the property insurance
program to ensure upcoming construction projects are
adequately covered.
An appropriation of $1.3 million for in-lieu premium
contribution charged to operations is recommended for
the Property and General Liability Program. This will
serve to maintain the reserves balance.
Administrative Expenses – $2.0M
These accounts include supplies, postage, technical
journals and publications, forms, small office
equipment, and small computer items that cost less than
$5,000 per item and exclude items that are capitalized.
Training and Meetings – $1.1M
Board member and staff travel has been significantly
reduced in recent years. This category also includes
meetings of professional societies; ongoing technical
training and materials for staff; training for
computerized plant monitoring and control systems,
MAXIMO (a computerized maintenance management
system), Enterprise Resource Planning (ERP), and
other “high tech” equipment, processes and systems;
and training to allow for an adaptive and flexible work
force. While OCSD continues to place an emphasis on
effective safety training, as well as technical, leadership
and management training, the training budget has
been reduced from previous highs of 2.0 percent to
approximately 1.6 percent of budgeted regular salaries
due to savings achieved in part through the use of
online courses.
Research and Monitoring – $1.1M
Research and monitoring expenditures consist of
contract services to carry out the extensive ocean
monitoring program required by the EPA under
provisions of OCSD’s NPDES permit; air quality
monitoring costs; OCSD’s contribution to the Southern
California Coastal Water Research Project (SCCWRP)
being conducted under a joint powers agreement with
other Southern California municipal dischargers;
and also provide for increased operational and ocean
research and evaluation to develop optimum operating
parameters in treatment plants.
Printing and Publication – $0.3M
The budget provides for in-house and outside
reproduction costs and reflects an expanded
management information system and administrative
requirements, as well as a continuing demand by the
public and regulatory agencies for information. The
continuing effort of the Public Affairs Office to improve
public education programs about OCSD’s activities is
also reflected in the budget for this line item. This group
of accounts also includes costs for photo processing,
advertisements, and notices.
Cost Allocation – ($20.1M)
This represents direct labor and benefit charge outs and
materials, supplies and services cost allocation to the
capital projects where the related work was performed.
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
29
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET30
DEPARTMENTS SUMMARY
Expenses by Department (in millions)
Budget Proposed Percent Proposed Percent
Department 2017-18 2018-19 Change 2019-20 Change
Administration Units:
General Manager’s Office $4.6 $4.5 (2.2%) $4.5 0.0%
Human Resources 9.5 8.3 (12.6%) 9.0 8.4%
Administrative Services 18.5 21.1 14.1% 19.5 (7.6%)
Sub-Total $32.6 $33.9 4.0% $33.0 (2.7%)
Operating Units:
Environmental Services 17.3 18.0 4.0% 18.4 2.2%
Engineering 3.1 3.8 22.6% 3.9 2.6%
Operations & Maintenance 98.9 105.5 6.7% 104.9 (0.6%)
Sub-Total $119.3 $127.3 6.7% $127.2 (0.1%)
Total $151.9 $161.2 6.1% $160.2 (0.6%)
Staffing by Department (FTEs)
Authorized Proposed Percent Proposed Percent
Department 2017-18 2018-19 Change 2019-20 Change
Administration Units
General Manager’s Office* 15.00 14.00 (6.7%) 14.00 0.0%
Human Resources 27.00 27.00 0.0% 27.00 0.0%
Administrative Services 99.00 100.00 1.0% 100.00 0.0%
Sub-Total 141.00 141.00 0.0% 141.00 0.0%
Operating Units
Environmental Services 91.00 91.00 0.0% 91.00 0.0%
Engineering 116.00 116.00 0.0% 116.00 0.0%
Operations & Maintenance 287.00 288.00 0.3% 288.00 0.0%
Sub-Total 494.00 495.00 0.2% 495.00 0.0%
Total FTEs* 635.00 636.00 0.2% 636.00 0.0%
*FTE totals exclude Management Discretion positions that are authorized but used only on a temporary basis to facilitate the
replacement of key positions. A total of three Management Discretion positions are included in the proposed budget for FY 2018-19;
however, total filled positions will not exceed 636 FTEs at any point in time.
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
31
Administration Units
Office of the General Manager
Budget $4.5M — Staffing 14 FTEs
The General Manager’s Office provides general
oversight of all OCSD operations and incorporates
functions in the areas of Public Affairs and Board
Services. The budget reflects the transfer out of one
position to another department.
Human Resources
Budget $8.3M — Staffing 27 FTEs
The Human Resources Department works with
management and employees to ensure an effective
and productive employment relationship. The
department also provides risk management services
to the organization to create a safe, healthy and secure
environment for staff, contractors, and visitors.
Administrative Services
Budget $21.5M — Staffing 100 FTEs
The Administrative Services Department maintains
financial oversight and administration of all OCSD
funds and accounts and is responsible for contract
administration and procurement, and oversees all
OCSD computer, networking and customer support
issues. The budget reflects the addition of one position
to provide computer system support for OCSD’s
pretreatment program.
Operating Units
Environmental Services
Budget $18.0M — Staffing 91 FTEs
The Environmental Services Department manages all
environmental monitoring, regulatory, compliance
and reporting elements to ensure that OCSD 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.
Engineering
Budget $3.8M — Staffing 116 FTEs
The Engineering Department is responsible for
the planning and execution of the OCSD’s capital
improvement program and asset management program.
Operations and Maintenance
Budget $105.5M — Staffing 288 FTEs
The Operations and Maintenance Department is
responsible for the operation and maintenance of
OCSD’s two wastewater treatment plants as well as the
sanitary sewer system pipeline and pumping facilities.
The department also provides fleet management services
for OCSD. The budget reflects the transfer in of one
position from another department.
FTEs = Full-Time Equivalent Positions
32 EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
GENERAL MANAGER’S OFFICE
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 OCSD operations, interagency relations, legislative
activities, communications, and the Strategic Plan. The Assistant General Manager directly oversees the Public
Affairs and Board Services Divisions.
Board Services provides a high level of customer service through the Clerk of the Board’s office. The Clerk of the
Board’s office supports the Board of Directors and the public by preparing and publishing agendas in accordance
with legal requirements for meetings of the Board of Directors; recording the actions taken by the Board; publishing
notices as required by law; acting as filing officer for Statement of Economic Interests filings; receiving and
processing summons and complaints filed against OCSD; 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.
Administrative
Services
Environmental
Services
Engineering
Operations &
Maintenance
Board ofDirectors
General
Counsel
Office
General
Manager
HumanResources
General
Management
Administration
Board Services
Public Affairs
General
Manager’s
Office
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
33
Budget Overview
The fiscal year 2018-19 budget for the General Manager’s Office reflects
an increase of 0.6 percent over the current budget. The increase is
primarily due to increases in costs for legal services and adjustment of
the General Manager’s contingency. These increases were essentially
offset by reductions in personnel costs, training and meeting expenses,
software program consulting services, temporary services, other
operating supplies, and adjustments to the district-wide cost
allocation plan.
Performance Objectives / Measures
• Ensure that the Board approved Strategic Plan is implemented.
• Provide leadership development opportunities reaching at least 70
percent of staff.
• Maintain the Special District Leadership Foundation (SLDF) District
Transparency Certificate of Excellence.
• Respond to 90 percent of public records requests within seven
business days.
• Provide information to Board of Directors through the General
Manager’s monthly report and the new Board member orientation.
• Provide services and implement programs that meet communication
needs of OCSD’s external audience by reaching a minimum of
3,000 people.
Authorized FTE Positions
Managers ......................................2.00
Supervisors /Professionals ...........7.00
Administrative /Clerical .................5.00
Total ............................................14.00
*FTE totals exclude four Management Discretion
positions which are authorized to be used only on
a temporary basis to facilitate the replacement of
key positions.
Staffing Trends
2018-192017-182016-172015-162014-15
14.00 15.00 15.00 15.00 14.00
Operating Expense
2016-17 2017-18 2017-18 2018-19 2019-20
Category Actual Budget Projected Proposed Proposed
Personnel $2,534,929 $2,416,600 $2,429,400 $2,175,400 $2,164,400
Supplies 297,839 538,380 457,020 500,340 460,900
Professional / Contractual Services 1,048,707 719,000 710,000 700,000 700,000
Research & Monitoring 0 0 0 0 0
Repairs & Maintenance 23 0 0 0 0
Utilities 95,619 130,000 107,460 110,000 110,000
Other 109,768 819,070 182,010 1,225,780 1,191,680
Cost Allocation (54,658) (57,240) (57,720) (116,520) (116,520)
Total $4,032,227 $4,565,810 $3,828,170 $4,595,000 $4,510,460
34 EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
HUMAN RESOURCES DEPARTMENT
Service Description
Human Resources is a full service department responsible for all aspects of Human Resources administration
and risk management to ensure a safe, 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 OCSD 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, OCSD 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 OCSD. It identifies and manages
potential risk to the organization and provides solutions for mitigating or reducing the risk; and manages OCSD’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.
Human
Resources
Administration
Risk
Management /
Safety Security
Administrative
Services
General
Manager’s
Office
Environmental
Services
Engineering
Operations & Maintenance
Board ofDirectors
General
Counsel
Office
General
Manager
Human
Resources
35EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
Budget Overview
The fiscal year 2018-19 budget for the Human Resources Department
reflects a 13.3 percent decrease from the current budget. The decrease is
primarily due to reductions in training expense, general liability insurance
in-lieu premium expense, other non-operating supplies, and adjustments
to the district-wide cost allocation plan. The overall decrease is partially
offset by an increase in personnel costs.
Performance Objectives / Measures
• Continue with development and implementation of effective workforce
planning/development and succession planning strategies.
• Continue with a recruitment plan that reduces vacancies and
time-to-fill.
• Review all training requirements and support departments in meeting
the training level of service requirements of 45 hours per employee.
• 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.
Authorized FTE Positions
Managers ......................................2.00
Supervisors /Professionals .........22.00
Administrative /Clerical .................3.00
Total ............................................27.00
Staffing Trends
2018-192017-182016-172015-162014-15
27.00
16.00
27.0027.00 27.00
Operating Expense
2016-17 2017-18 2017-18 2018-19 2019-20
Category Actual Budget Projected Proposed Proposed
Personnel $4,015,664 $4,633,900 $4,305,480 $4,779,200 $4,920,700
Supplies 557,454 753,460 650,560 690,660 657,060
Professional / Contractual Services 1,919,584 2,737,900 2,483,530 2,717,500 2,957,500
Research & Monitoring 0 0 0 0 0
Repairs & Maintenance 2,486 3,050 1,500 3,050 3,050
Utilities 0 0 0 0 0
Other 1,191,964 2,336,230 2,295,920 1,408,160 1,828,860
Cost Allocation (935,634) (931,720) (935,780) (1,334,180) (1,334,180)
Total $6,751,518 $9,532,820 $8,801,210 $8,264,390 $9,032,990
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET36
ADMINISTRATIVE SERVICES DEPARTMENT
Service Description
The Administrative Services Department oversees all of OCSD’s finance, contracts/purchasing, and information
technology activities, including both day-to-day operations and strategic planning. The department serves as a liaison
to Executive Management, the Board of Directors, and other departments of OCSD. The department includes four
divisions:
Administrative Services provides leadership and oversight to all Administrative Services divisions.
Financial Management oversees and administers all OCSD’s funds and accounts. Programs include treasury and
debt management, accounts receivable and payable, user fees, payroll, fixed assets accounting, and coordinating the
capital and operating budget process.
Contracts, Purchasing, and 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
Administrative
Services
General
Manager’s
Office
Engineering
Operations &
Maintenance
Board ofDirectors
General
Counsel
Office
General
Manager
HumanResources
Administrative
Services
Financial
Management
Contracts,
Purchasing &
Materials
Management
Information
Technology
Environmental
Services
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
37
Budget Overview
The fiscal year 2018-19 budget for the Administrative Services Department reflects a 13.7 percent increase from the current budget. The increase is primarily due to increases in personnel costs, small computer items, service maintenance agreements, telephone service, other contractual services, and a loss on disposal of obsolete inventory. The increase is partially offset by decreases in costs for postage, printing and publication, county service fees, and adjustments to the district-wide cost allocation plan.
Performance Objectives / Measures
• Manage operating expenditures to within 96 to 100 percent of the approved budget.
• Comply with the California State Government Code 100 percent of the time with all treasury investments.,
• Submit the annual sewer service fee property parcel database to the County in time for placement on annual secured property tax bills.
• Process all approved sewer service fee refund requests within 90 days, 90 percent of the time.
• All debt service payments will be paid electronically, on the actual due dates, and error free 100 percent of the time.
• Continue the cycle count program and maintain a 97 percent accuracy rate or better.
• Ensure the measurement of the Information Technology Strategic Plan target achievement based on the importance and completion of goals supporting the Levels of Service (LOS) in the OCSD Strategic Plan.
• Maintain an average uptime of 90 percent for critical applications.
.
Authorized FTE Positions
Managers ......................................4.00
Supervisors /Professionals .........58.00
Administrative /Clerical ...............36.00
Other .............................................2.00
Total ..........................................100.00
Staffing Trends
2018-192017-182016-172015-162014-15
111.00
98.00 99.00 99.00 100.00
Operating Expense
2016-17 2017-18 2017-18 2018-19 2019-20
Category Actual Budget Projected Proposed Proposed
Personnel $13,939,347 $13,884,300 $13,840,500 $14,610,000 $14,942,300
Supplies 1,316,966 1,561,650 1,606,530 1,326,980 1,327,160
Professional / Contractual Services 937,021 1,340,000 1,590,900 1,706,890 1,163,120
Research & Monitoring 0 0 0 0 0
Repairs & Maintenance 1,574,137 2,140,000 2,078,810 2,300,000 2,500,000
Utilities 324,239 400,000 400,000 500,000 500,000
Other 148,031 123,610 156,270 1,663,070 163,070
Cost Allocation (940,243) (942,320) (933,540) (1,056,440) (1,056,440)
Total $17,299,498 $18,507,240 $18,739,470 $21,050,500 $19,539,210
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET38
ENVIRONMENTAL SERVICES DEPARTMENT
Service Description
The Environmental Services Department manages all of OCSD’s environmental monitoring, regulatory, compliance
and reporting elements to ensure that OCSD 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 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.
Resource Protection fulfills regulatory requirements with proper biosolids management, air quality controls,
federal pretreatment regulations, 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 OCSD’s assets,
employees, and ocean discharge.
Laboratory, Monitoring and Compliance 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. The division also assures compliance
with environmental permits and regulations, and the team works proactively on developing regulations of interest
to OCSD
Administrative
Services
GeneralManager’sOffice
Engineering
Operations &
Maintenance
Board of
Directors
General
Counsel
Office
General
Manager
Human
Resources
Environmental
Services
Administration
Resource
Protection
Laboratory,
Monitoring &
Compliance
Environmental
Services
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
39
Budget Overview
The fiscal year 2018-19 budget for the Environmental Services
Department reflects an increase of 4.2 percent from the current budget.
The increase is primarily attributable to increases in personnel costs,
operating materials and supplies, environmental scientific consulting
services, research and monitoring services, and adjustments to the
district-wide cost allocation plan. The overall increase was partially
offset by decreases in legal services and electricity costs.
Performance Objectives / Measures
• Manage operating expenditures to within 96 to 100 percent of the
approved budget.
• Ensure that reporting divisions achieve 90 percent of individual
performance objectives.
• Ensure that all environmental compliance reporting requirements are
met on or before required submission dates.
• Conduct audits of all major environmental permits at least once every
three years.
• Complete 100 percent of Safety Scorecard requirements each quarter.
Authorized FTE Positions
Managers ......................................3.00
Supervisors / Professionals ........63.00
Administrative /Clerical .................9.00
Technical .....................................16.00
Total ............................................91.00
Staffing Trends
2018-192017-182016-172015-162014-15
0.00 0.00
91.00 91.00 91.00
Operating Expense
2016-17 2017-18 2017-18 2018-19 2019-20
Category Actual Budget Projected Proposed Proposed
Personnel $13,754,774 $13,420,000 $13,229,300 $13,764,000 $14,082,100
Supplies 862,303 795,180 817,220 921,220 903,630
Professional / Contractual Services 338,653 657,800 505,750 736,660 701,660
Research & Monitoring 892,313 889,400 785,000 1,061,200 1,099,600
Repairs & Maintenance 260,112 270,000 275,730 297,330 314,970
Utilities 328,548 500,000 387,100 369,400 380,500
Other 799,431 779,060 742,460 824,820 851,820
Cost Allocation (26,076) (34,950) (35,200) 23,250 23,030
Total $17,210,058 $17,276,490 $16,707,360 $17,997,880 $18,357,310
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET40
ENGINEERING DEPARTMENT
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 are maintained by performing necessary rehabilitation and replacement
of facilities at optimal lifecycle costs. The Planning division also performs services for annexations, connection
permitting, and inter-agency agreements.
Project Management Office is responsible for the delivery of capital projects from the preliminary design stage
through the closeout of construction.
Civil and Mechanical Engineering provides design and construction engineering, quality control inspection, and
other technical support for design and construction projects.
Electrical and 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.
Administrative
Services
General
Manager’s
Office
Operations &
Maintenance
Board ofDirectors
General
Counsel
Office
General
Manager
HumanResources
Engineering
Administration
Planning
Project
Management
Office
Civil &
Mechanical
Engineering
Electrical &
Control Systems
Engineering
Environmental
Services
Engineering
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
41
Budget Overview
The fiscal year 2018-19 budget for the Engineering Department reflects a
20.8 percent increase from the current budget primarily due to increases
in personnel costs, legal and other professional services, repairs and
maintenance, and electricity costs. The overall increase was partially offset by
adjustments to the district-wide cost allocation plan.
Performance Objectives / Measures
• Expend 90 to 100 percent of project annual Capital Improvement
Program cash flows.
• Manage operating expenditures to within 96 to 100 percent of the
approved budget.
• Ensure that reporting divisions achieve 90 percent of individual
performance objectives.
• Prepare and maintain a 20-year District-wide capital plan coordinating
research, condition assessment, regulatory requirements, changing levels
of science, and projected capacity requirements.
Authorized FTE Positions
Managers ......................................5.00
Supervisors / Professionals ........81.00
Administrative / Clerical ..............30.00
Total ..........................................116.00
Staffing Trends
2018-192017-182016-172015-162014-15
123.00 127.00 116.00 116.00 116.00
Operating Expense
2016-17 2017-18 2017-18 2018-19 2019-20
Category Actual Budget Projected Proposed Proposed
Personnel $19,199,488 $19,353,430 $18,295,400 $19,798,600 $20,215,700
Supplies 387,420 457,360 417,460 451,800 437,520
Professional / Contractual Services 521,322 501,000 561,550 689,700 695,000
Research & Monitoring 0 0 0 0 0
Repairs & Maintenance 11,932 5,700 13,040 117,500 117,500
Utilities 6,087 10,000 17,120 178,100 183,500
Other 5,178 4,410 3,970 7,700 8,000
Cost Allocation (18,040,866) (17,220,420) (18,219,810) (17,483,180) (17,789,760)
Total $2,090,561 $3,111,480 $1,088,730 $3,760,220 $3,867,460
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET42
OPERATIONS AND MAINTENANCE DEPARTMENT
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 eight divisions:
Operations and Maintenance Administration provides leadership and oversight to all O&M divisions.
Collection Facilities Operations and 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 Groundwater 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.
Maintenance Reliability and Planning is responsible for the planning function for all maintenance activities as well
as reliability engineering for both Plants and the Collections System. The Division also oversees administration of the
Civil Assets Maintenance Program (CAMP).
Administrative
Services
General
Manager’s
Office
Board of
Directors
General
Counsel
Office
General
Manager
HumanResources
Operations &
Maintenance
Administration
Collection
Facilities
Operations &
Maintenance
Fleet Services
Plant No. 1
Operations
Plant No. 2
Operations
Plant No. 1
Maintenance
Plant No. 2
Maintenance
Maintenance
Reliability &
Planning
Environmental
Services
Engineering
Operations &
Maintenance
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET
FISCAL YEARS 2018-19 AND 2019-20 BUDGET
43
Budget Overview
The fiscal year 2018-19 budget for the Operations and Maintenance
Department reflects a 6.7 percent increase from the current budget.
The increase is primarily due to increases in personnel costs, contractual
services, and repairs and maintenance costs, partially offset by a decrease in
utility costs.
Performance Objectives / Measures
• Achieve 100 percent compliance with water, solids, air, and energy
permits.
• 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.
Operating Expense
2016-17 2017-18 2017-18 2018-19 2019-20
Category Actual Budget Projected Proposed Proposed
Personnel $38,160,572 $39,653,100 $38,279,800 $40,865,600 $41,863,900
Supplies 14,494,205 15,301,040 14,358,210 15,293,240 18,303,410
Professional / Contractual Services 22,474,690 23,659,380 22,342,640 24,049,250 20,440,640
Research & Monitoring 0 0 0 0 0
Repairs & Maintenance 12,949,070 13,526,360 13,380,360 18,997,480 16,385,740
Utilities 5,364,364 6,858,590 6,056,180 6,282,300 7,854,600
Other 114,925 119,280 114,830 120,660 153,390
Cost Allocation (140,097) (207,910) (84,600) (103,360) (104,740)
Total $93,417,729 $98,909,840 $94,447,420 $105,505,170 $104,896,940
Authorized FTE Positions
Managers ......................................5.00
Supervisors /Professionals ..........66.00
Administrative /Clerical ..................6.00
Technical .......................................1.00
Operations & Maintenance .......210.00
Total ..........................................288.00
Staffing Trends
2018-192017-182016-172015-162014-15
284.00 294.00 279.00 287.00 288.00
EXECUTIVE SUMMARY | FISCAL YEARS 2018-19 AND 2019-20 BUDGET44
1. METERING AND DIVERSION
Wastewater enters our plant at 2.5 - 5 mph through
pipes up to 10 feet in diameter. High tech equipment
monitors the temperature, pH, conductivity, and fl ow of
the incoming wastewater.
2. PRELIMINARY TREATMENT
Raw sewage passes through bar screens
that trap large items like rags that cannot
be recycled. Materials like egg shells and
coffee grounds are then removed through
the grit chamber that uses high pressure
air to separate the gritty material.
3. AIR SCRUBBER
Hydrogen Sulfi de (foul air) is captured
throughout the process and funneled
into large silos. It passes through
a plastic medium and mixes with
caustic soda and bleach. Causing
the odorous compounds to be
neutralized.
4. PRIMARY TREATMENT
Primary clarifi ers or settling basins, slow
the water down to let the solids that are
within the water settle out, separate and
fl oat to the surface. Scraper arms that
move along the top and bottom remove
up to 80% of the solids. Solids are then
sent to digesters for processing.
5. SECONDARY TREATMENT
Trickling fi lters and aeration basins are used to further clean the water. In trickling
fi lters the water is sprayed over a honeycomb type material upon which aerobic bacteria
grow. As the water trickles down, the microorganisms consume the solids that were not
removed through primary treatment. Aeration tanks use a combination of oxygen and
microorganisms, (activated sludge) that consume the remaining organic solids. Treated
water is then sent to the Orange County Water District for recycling, or discharged into
the ocean.
6. BIOSOLIDS
Solids captured from primary and secondary processes are batch loaded into
anaerobic digesters where they are heated to about 98 degrees and treated for
18-21 days. They enter de-watering where water is squeezed out using belt presses.
The nutrient rich biosolids are trucked off to farms where they are recycled for direct
land application, and composting. The digestion process produces methane gas.
7. CENTRAL GENERATION
Methane gas that is captured
from digesters is compressed and
used to fuel engine-generators
that produce electricity, supplying
about 60% of our energy needs.
PA 06/2015
Orange County Sanitation District
Wastewater Treatment Process
Biosolids
Our Policy: OCSD strives to recycle our biosolids using sustainable
options while protecting public health and the environment.
Some of our biosolids are recycled and used like fertilizer on farm fields
to create and maintain healthy soils and improve crop yields.
Some of OCSD’s biosolids are further processed through composting
to create a consumer-grade soil amendment that is distributed to
agricultural, commercial and residential users.
Certified Program
OCSD was the first public wastewater agency in the
nation certified by the National Biosolids Partnership
(NBP) (www.biosolids.org) for our biosolids program in
2003. Certification is maintained through independent,
third-party audits that verify OCSD conforms to the
management system standard that was designed by the
NBP, U.S. Environmental Protection Agency (EPA) and
other clean water partners.
Learn More
Visit our web site at www.ocsewers.com/biosolids for more
information and to sign up for periodic biosolids program newsletters
using the “Keep me Informed” button.
Know what should go downthe drain that is sewer safe
It’s simple, the toilet is only meant to fl ush the
three P’s—pee, poop and paper.
Unfortunately, over the years, people have turned the toilet
into a trash can. From medications and sanitary products
to deceased pet fi sh and cigarette butts. If it fi ts, people
fl ush it. Flushing these types of items down the toilet causes
home pipes to clog, wastes water (up to 5 gallons of water
every time you fl ush) and most importantly can have a
huge impact on our sewers, not to mention our ocean.
Besides the three P’s the only other thing going down the drain
should be soap and water. The toilet is not the only drain
that people are using to get rid of unwanted waste;
people are also known to use the kitchen sink as a trash
can. Letting trash fl ow and go down the kitchen sink (or
any other drain in the house) may cause pipes to clog
and can eventually lead to sewage spills that harm
the environment.
Visit www.What2Flush.com to learn how to properly dispose of
common items that people fl ush or dump down the drain. Let’s keep
our wastewater fl owing and our oceans clean. Educate yourself
and others.
Know What 2 Flush and what to put down the drain. Protect
our sewers and environment!
The Groundwater Replenishment System (GWRS) is the world’s largest
advanced water purification system for potable reuse. It takes treated
wastewater that otherwise would be sent to the Pacific Ocean and purifies
it using a three-step advanced process.
The design and construction of the GWRS was jointly funded by the
Orange County Water District (OCWD) and the Orange County
Sanitation District (OCSD). Together OCWD and OCSD constructed
one of the most celebrated civil engineering and water reuse projects in
the world.
The GWRS provides a reliable supply of high-purity near-distilled quality
water even during drought and offers a more cost-effective and energy-
efficient strategy than importing water from distant sources.
GWRS provides the county with new water it can count on and serves
as a model project for other regions throughout the United States and
the world that are or will be facing natural and man-made water supply
challenges.
Reclamation Plant No. 1 and Administration Offices
10844 Ellis Avenue, Fountain Valley, California 92708
Treatment Plant No. 2
22212 Brookhurst Street, Huntington Beach, California 92646
Phone: 714.962.2411
Email: forinformation@ocsd.com
Website: OCSewers.com
The Orange County Sanitation District (OCSD) is a public agency that provides
wastewater collection, treatment, and disposal services for approximately 2.5
million people in our service area of central and northern Orange County. OCSD
is a special district that is governed by a Board of Directors consisting of 25 board
members. OCSD has two operating facilities that treat wastewater from residential,
commercial, and industrial sources.
Follow the Flow:
Pretreatment: All the cities’ sewers connect to OCSD’s collections system that
transports the wastewater to our treatment plants. Before the sewage enters our
facilities, our Source Control Program permits and inspects business and industry
that discharge waste into the sewers. Maintaining and protecting our trunklines
from corrosion and odor issues is also an important part of what we do.
1. Metering and Diversion: Wastewater enters our treatment plants through
trunklines up to 10-feet in diameter at a speed of 2.5-5 mph. Automated
equipment measures the pH, conductivity, flow, and temperature. Data is
monitored by Operators around the clock.
2. Preliminary Treatment: Consists of two parts – bar screens and grit
chambers. First, sewage passes through metal bars that catch large items (rags,
trash, wood, etc.). Next, grit chambers use air bubbles to suspend lighter material
while heavier grit (egg shells, coffee grounds, gravel, sand, etc.) sinks to the bottom
and is removed. Screenings and grit are sent to a landfill.
3. Air Scrubber: Most processes that produce odors are covered and the foul air
is drawn off for cleaning (deodorizing) by air scrubbers. OCSD uses both Chemical
and Biofilter systems. Hydrogen Sulfides (sewer gas smell) are neutralized by using
caustic soda, bleach, or live microorganisms.
4. Advanced Primary Treatment: Chemicals (ferric chloride and anionic
polymer) are added to the preliminary treated sewage to improve settling. Heavier
suspended solids clump together and sink to the bottom. Lighter waste (grease and
oil) float to the surface. This process takes about 2 hours and up to 75% of the
suspended solids are continuously removed by scraper arms revolve along the top
and bottom of the basin. These solids are sent to digesters for further processing.
5. Secondary Treatment: Advanced primary treated sewage is sent to either
trickling filters or activated sludge processes were aerobic microorganisms eat
the remaining dissolved waste from the water. The secondary treated wastewater
is then settled in clarifiers allowing the remaining sludge (either live or dead
microorganisms) to be removed. Activated sludge process uses aeration basins
to mix oxygen and microorganisms to enhance the waste removal rate. Some of
the sludge is pumped back into the aeration basin as return activated sludge to
regenerate the basin. The remaining sludge is thickened and sent to digesters.
Final Effluent: Almost all the secondary treated wastewater from Plant 1 is sent
to the Orange County Water Districts for advanced treatment though the Ground
Water Replenishment System (GWRS). This water is used to replenish Orange
County’s groundwater aquifers and protect against seawater intrusion. The
secondary treated wastewater from Plant 2 is safely released though our ocean
pipeline five miles out to sea at a depth of 200 feet below the ocean surface.
Our Mission:
“To protect public health and the environment by providing
effective wastewater collection, treatment, and recycling.”
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley
Calilfornia, 92708-7018
714.962.2411
www.ocsd.com
06/2018