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HomeMy WebLinkAbout98.06-27-2018 Board Meeting Item 21 Attachment 2 - FY18-19_19-20 Proposed Budget.pdf N W O 0 N C c� F` CY) O N00 , c� � � c — m U Ln L w PPf1 c 4 _ _ w o LAW2) BACK OF FRONT COVER Orange County Sanitation District, California FY 2018-19 & FY 2019-20 Proposed Budget o�JN14 S AW TgT�oy OWN Q 9 s c� 9oT � p gar �cTiNG THE ENv\Po� MISSION STATEMENT "To protect public health and the environment by providing effective wastewater collection, treatment, and recycling." For Fiscal Years July 1, 2018 through June 30, 2019 and July 1, 2019 through June 30, 2020 2018-19 & 2019-20 Budget Orange County Sanitation District Service Area and Treatment Plant Locations in Orange County, California oco urvb Mw IA HAMM BREA , YORBA FULLS LINOA PIAC q LA B RK I RK ANAHEIM r RE VILLA LOOS I ORANGE 1--1 AROE ROV SEAL IN BEACH A SAN ANA SAM P1 HUMP C B IRVINE COSTA 4 MESA 1]nMby 68btlJnyY NEWPORI BEACH s mr da loea a.r. SeMm arm Iwumary ul.. Sawa' mo4wn wee�erlMM S Reclamation Plan,No. SIPSI wv arie�,mrw,tl m. Trmanont Plant No.2(P2) nnere n w+4ry a Heel a<e+vn PumpnM Ilti bratlonb raee•.ae+•m.m'nmp W Ve W MIe 49499vm t] Unlnmryotated Orange County(.hke a least omnov GFOA Budget Presentation Award G GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO Orange County Sanitation District California Forthe Biennium Beginning July 1, 2016 �ysy.,�j�str. o..m 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. 2018-19 & 2019-20 Budget Table of Contents Reader's Guide to the Budget......................................................................................................................................i Boardof Directors......................................................................................................................................................iii BoardCommittees .....................................................................................................................................................iv Orange County Sanitation District Organization Chart...............................................................................................v AdministrativeOfficials...............................................................................................................................................vi General Manager's Budget Message........................................................................................................................vii CoreValues................................................................................................................................................................ix Section 1 —Executive Summary Executive Summary 1 Section 2- Introduction Financial Overview&Budgetary Issues........................................................................................................1 BusinessPlan..............................................................................................................................................15 Strategic Goals for Fiscal Years 2018-19&2019-20..................................................................................28 OCSDLong-Term Planning.........................................................................................................................29 Background Information and Description of Services.................................................................................30 OrangeCounty at a Glance.........................................................................................................................31 Section 3- Policies, Systems and Processes FiscalPolicy...................................................................................................................................................1 GFOA Best Practices and Advisories............................................................................................................9 Overview of the Budget Process.................................................................................................................19 BudgetAssumptions....................................................................................................................................21 Accounting System and Budgetary Control.................................................................................................25 OCSDFund Structure Diagram...................................................................................................................26 RevenueSources........................................................................................................................................27 Section 4—District Summary FY 2018-19: Where the Money Comes From..............................................................................................................1 Wherethe Money Goes..........................................................................................................................1 Funding Sources by Category................................................................................................................2 FundingUses by Category .....................................................................................................................3 FY 2019-20: Where the Money Comes From..............................................................................................................5 Wherethe Money Goes..........................................................................................................................5 FundingSources by Category................................................................................................................6 FundingUses by Category .....................................................................................................................7 BudgetResources.........................................................................................................................................8 Budget Resources by Revenue Area—FY 2018-19. 10 Budget Resources by Revenue Area—FY 2019-20. 12 ProjectedReserves.....................................................................................................................................14 Consolidated Cash Flow Projections...........................................................................................................16 Table of Contents Section 5—Operations Overview Operations Budget Overview.........................................................................................................................I Operations Summary/Comparisons by Department......................................................................................3 Expenseby Category....................................................................................................................................4 Allocation to Individual Revenue Areas.........................................................................................................5 NetOperating Expense by Line Item ............................................................................................................6 Notes to Operations Summary 8 Section 6-Operating Divisions GENERAL MANAGEMENT General Management Administration............................................................................................................1 BoardServices..............................................................................................................................................5 PublicAffairs ....................................................................................................................................9 HUMAN RESOURCES Human Resources Administration...............................................................................................................13 Risk Management/Safety/Security.................................................. ..................................................17 FINANCEAND ADMINISTRATIVE SERVICES Administrative Services Administration.......................................................................................................21 FinancialManagement................................................................................................................................25 Contracts, Purchasing, and Materials Management...................................................................................29 Information Technology..........................................................................................................33 ENVIRONMENTAL SERVICES Environmental Services Administration.......................................................................................................37 ResourceProtection....................................................................................................................................41 Laboratory. Monitoring &Compliance.........................................................................................................45 ENGINEERING EngineeringAdministration..........................................................................................................................49 Planning.......................................................................................................................................................53 ProjectManagement Office.........................................................................................................................57 Civil &Mechanical Engineering...................................................................................................................61 Electrical &Control Systems Engineering 65 OPERATIONS&MAINTENANCE Operations& Maintenance Administration 69 Collection Facilities Operations&Maintenance..........................................................................................73 FleetServices....... ......................................................................................................................................77 Operations- Plant No. 1 ..............................................................................................................................81 Operations- Plant No. 2..............................................................................................................................85 Maintenance-Plant No. 1 ...........................................................................................................................89 Maintenance Reliability&Planning.............................................................................................................93 Maintenance-Plant No. 2...........................................................................................................................97 2018-19 & 2019-20 Budget Section 7-Self-Insurance Program Self-Insurance Program Overview.................................................................................................................1 Total Self-Insurance Program........................................................................................................................2 General Liability and Property Self-Insurance Program................................................................................3 Workers'Compensation Self-Insurance Program.........................................................................................4 Section 8-Capital Improvement Program Overview........................................................................................................................................................1 Diagram of Treatment Process......................................................................................................................3 ProjectSummary- FY 2018-19.....................................................................................................................4 Capital Improvement Expenditure Graphs by Process and Type- FY 2018-19...........................................5 ProjectSummary- FY 2019-20.....................................................................................................................6 Capital Improvement Expenditure Graphs by Process and Type- FY 2019-20...........................................7 Summary of Capital Requirements................................................................................................................8 CIPProject Detail Sheets............................................................................................................................12 Project Summary by Revenue Program Category-Collection System Projects........................................86 Project Summary by Revenue Program Category-Treatment& Disposal Projects..................................87 Summary by Project Driver-Collection System Projects...........................................................................90 Summary by Project Driver-Treatment&Disposal Projects .....................................................................91 Proposed Equipment Budget Summary-FY 2018-19................................................................................94 Proposed Equipment Budget Detail -FY 2018-19......................................................................................96 Proposed Equipment Budget Summary-FY 2019-20................................................................................98 Proposed Equipment Budget Detail -FY 2019-20....................................................................................100 Section 9- Debt Service Debt Financing Program 1 Debt Service Requirements-Principal& Interest.........................................................................................6 Debt Service Requirements- Interest Payments..........................................................................................8 Debt Service Requirements-Principal Payments......................................................................................10 Section 10-Appendix Staffingby Department-Graph.....................................................................................................................1 Staffingby Category-Graph.........................................................................................................................1 Historical Staffing by Department-Graph.....................................................................................................2 Total Historical Staffing-Graph ....................................................................................................................2 HistoricalStaffing Summary..........................................................................................................................3 HistoricalStaffing Detail ................................................................................................................................4 AppropriationsLimit.....................................................................................................................................13 BudgetGlossary..........................................................................................................................................14 MiscellaneousStatistics ..............................................................................................................................19 Service Area Population Information...........................................................................................................20 Index 21 Reader's Guide to the Budget Reader's Guide to the Budget • The Budget Process provides an overview of the budget development process and budget This guide is intended to help the reader calendar. understand what information is available in the budget and how it is organized. This budget • Budget Assumptions are decided on as a document is broken down into ten sections foundation for developing the budget, and they including a Budget Glossary and Index. The guide the District in determining the level of Administrative Services Department invites your wastewater treatment services that will be suggestions on ways to make the budget provided to the community. document more understandable. • Accounting Systems and Budgetary Control The General Manager's Budget Message and a provides an overview of the District's summary of the District's Core Values follow this accounting systems and the level at which guide. The General Managers budget message budgetary control is maintained. introduces the budget to the reader. Section 4-District Summary Following is an explanation of the major sections This summary section is a comprehensive of this budget: overview of the FY 2018-19& FY 2019-20 Budget with a focus on all consolidated District Section 1—Executive Summary funds. Included are tables and graphs for both The Executive Summary highlights critical issues revenues and expenses. and financial information regarding the District's FY 2018-19& FY 2019-20 Budget. Section 5—Operations Overview This section is a comprehensive overview of the Section 2—Introduction District's operating costs and related revenues for FY 2018-19 and FY 2019-20. The District's • Financial Overview and Budget Issues-This operations include collection,treatment, and section highlights the issues impacting the disposal activities. Tables are included for FY 2018-19&FY 2019-20 Budget. revenues and expenses to assist the reader in interpreting the data. Section 3—Policies and Practices Section 6—Operating Divisions • Fiscal Policies describe the District's financial This section includes operating programs for the goals along with policies addressing the District's basic organizational units which provide operating budget; revenues and expenses; collection and essential wastewater treatment service fees; capital improvement program; services to the community. Divisional budgets long-and short-term debt; reserves; are presented in the following format: investments; and accounting, auditing and financial reporting. • Organization Chart-An organization chart by position is provided for each division. • GFOA Recommended Practices lists all of the Accounting,Auditing, and Financial Reporting; • Authorized FTE Positions-The total number Cash Management; Governmental Budgeting of full-time equivalent positions assigned to and Fiscal Policy; Debt Management; and each division is included in this table. Retirement and Benefits Administration practices that are recommended by the • Staffing Trends-A multi-year staffing trend Government Finance Officers Association of chart is provided to show the changes that the United States and Canada. Included within have occurred in each division overtime. this list of best financial practices for states and local governments is the District's status as to • Service Description-A description of the whether we are in compliance, in progress services or functions provided by each division. towards compliance, or whether the practice is applicable to this agency. • 2017-18 Performance Objectives-This section represents the objectives defined by the division for the previous fiscal year. 2018-19 & 2019-20 Budget • 2017-18 Performance Results-A summary of major accomplishments and objectives that Section 10-Appendix were actually met during the previous fiscal year. • Staffing -Includes charts of staffing by department and category, charts of the • 2018-19&2019-20 Performance Objectives- historical staffing by department, a historical A list of projected goals to be accomplished summary and detail schedules of authorized during the 2018-19 and 2019-20 fiscal years. positions and full-time equivalent employees by department and by division. • Performance Measures -A listing of the measures that will be used to evaluate the • Appropriations Limit-The calculation of the success of the budgeted fiscal years. District's California Constitutional appropriation limit. • Budget Overview-This section provides an overview of changes from the FY 2017-18 Budget Glossary Budget to the FY 2018-19&FY 2019-20 Budget. Additionally, the significant impacts of Miscellaneous Statistics budgetary changes are outlined along with dollar amounts. Service Area Population Information • Expenses by Category-A chart comparing . Index the FY 2016-17 actual expenses and the FY 2017-18 budgeted and projected expenses against the proposed budget for FY 2018-19& FY 2019-20. The percent change from the FY 2017-18 Budget compared to the FY 2018- 19 Budget is also included. • Expenditure Trends-This graph provides a multi-year historical trend of divisional expenses. Section 7-Self-Insurance Program This section presents an overview of the self- insurance program, including program descriptions and revenue and expense detail. Section 8-Capital Improvements This section of the budget gives an overview of the District's Capital Improvement Program (CIP), CIP project summaries, and detailed CIP project sheets. The project sheets outline project descriptions, project location, project type, projected costs, and funding sources. Section 9-Debt Financing Program This section describes the District's Debt Financing Program including a listing of the outstanding debt issues, a description of the purpose of each issue, a debt service retirement schedule, and Debt Service Requirements, including principal and interest,over the life of the outstanding debt issues. OCSD Board of Directors Orange County Sanitation District Board of Directors AGENCY/CITIES ACTIVE DIRECTOR Anaheim Denise Barnes Brea Glenn Parker Buena Park Fred Smith Cypress Mariellen Yarc Fountain Valley Steve Nagel Fullerton Greg Seboum Garden Grove Steve Jones Huntington Beach Erik Peterson Irvine Donald P. Wagner La Habra Tim Shaw La Palma Peter Kim Los Alamitos Richard Murphy Newport Beach Scott Peotter Orange Teresa Smith Placentia Chad Wanks Santa Ana Sal Tinajero Seal Beach Ellery Deaton Stanton David Shawver Tustin Allan Bernstein Villa Park Robert Collacott Sanitary Water Districts Costa Mesa Sanitary District(CMSD) James Ferryman Midway City Sanitary District(MCSD) Charlie Nguyen Irvine Ranch Water District(IRWD) John Withers Yorba Linda Water District(YLWD) Phil Hawkins County Areas Member of the Board of Supervisors Michelle Steel iii 2018-19 & 2019-20 Budget Board Committees STEERING COMMITTEE OPERATIONS COMMITTEE Greg Sebourn, Board Chair John Withers, Chair David Shawver, Board Vice-Chair Ellery Deaton, Vice-Chair Chad Wanks, Chair, Administration Committee Denise Barnes John Withers, Chair, Operations Committee Allan Bernstein Ellery Deaton, Member-At-Large Robert Collacott Tim Shaw, Member-At-Large Phil Hawkins Donald P. Wagner, Member-At-Large Steve Jones Scott Peotter Tim Shaw ADMINISTRATION COMMITTEE Fred Smith Chad Wanks, Chair Michelle Steel Donald P. Wagner,Vice-Chair Mariellen Yarc James Ferryman Greg Sebourn, Board Chair Peter Kim David Shawver, Board Vice-Chair Richard Murphy Steve Nagel Charlie Nguyen LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE Glenn Parker Greg Sebourn, Board Chair Erik Peterson David Shawver, Board Vice-Chair Teresa Smith Allan Bernstein, Member-At-Large Sal Tinajero Peter Kim, Member-At-Large Greg Sebourn, Board Chair Donald P. Wagner, Member-At-Large David Shawver, Board Vice-Chair Chad Wanke, Member-At-Large John Withers, Member-At-Large iv District's Organizational Chart General Human Resources Atlan strative Environmental Engineering Ogarations8 Management Adminsiratim Services Servil Adrdnistmtion Maintenance Administration Rlek Managerrent/ Financial Administration Planning Admin6Vatim Safety/Security Management Resource collection Board Services pm ention Rotes Facilities PONIC Affairs Contrads, Management Operations8 Purchasing& Laboratory, 011lce Materials Moniloring8 Maintenance Management Oompill Meth Fleet Services Mechanical Information Engineering Plant No Technology Eledrical6 Operations control Systems Plant No Engineering Operations Plant No i Maintenance Part No Maintenance Mantenance Fell Real V 2018-19 & 2019-20 Budget Administrative Officials Departments 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 vi S.nIng.- Orange County Sanitation District 10844 Ellis Avenue, Fountain Valley,CA 92708 Anaheim 714.962.2411 1 www.ocsd.com Brea Buena Park ,June 1, 2018 Cypress Fountain Valley Fullerton j Honorable Chair and Board Directors: Garden Grove 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 Huntington Beach 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 wine budget includes the operational, capital and debt service expenditures necessary to La Habra 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: La Palma • Succession Planning/Restructuring— In anticipation of the retirement of our Los Alamitos Assistant General Manager we have reevaluated our organization to improve and Newport Beach streamline the management structure to best position ourselves for the future. A second Assistant General Manager position was established with responsibility for Orange the Operations and Maintenance (O&M) and Engineering Departments. Upon the retirement of the existing Assistant General Manager in August 2018, his Placentia replacement will begin overseeing the Finance &Administrative Services and Santa Ana Environmental Services departments. With this restructuring in place we expect better coordination between departments and the overall Executive Management Sea l Beach Team will be streamlined with one less filled position. Stanton Infrastructure Reliability and Asset Management—OCSD's infrastructure must Tustin i, 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 Villa Park running effectively. The O&M and Engineering Departments will work together planning and coordinating near term maintenance activities, major refurbishments County of orange and replacements. These maintenance efforts reflect a $6 million dollar increase in Costa Mesa Repairs and Maintenance in this Operating Budget. In addition to all of the Sanitary District maintenance and repair work, we will review our preventative maintenance plans and schedules for accuracy and effectiveness. Improved maintenance plans will Midway City provide a more accurate picture of the resources required to complete all Sanitary District preventive maintenance for OCSD assets and will enable us to optimize our Irvine Ranch staffing resources. Water District • Operational Optimization —OCSD continues to find innovative and efficient ways to yorba Linda do our work. A new administrative headquarters facility is being designed to bring Water District p, 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 4 °°tee processing of documents. Also, the cost of biosolids hauling will be reduced by using centrifuges to dewater our biosolids and produce a drier product. THE E� Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. vii SN RNbq)) °51 Hon. Chair and Board Directors June 1,2018 Page 2 'soEc a+�2 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 44-0,--annage in the coming years. ivel�Jamlles D. Herberg General Manager Orange County Sanitation District viii Mission, Vision and Core Values ORANGE COUNTY SANITATION DISTRICT CORE VALUES MISSION STATEMENT The Mission Statement is the basic foundation that defines why the Orange County Sanitation District exists. "To protect public health and the environment by providing effective wastewater collection, treatment, and recycling." VISION STATEMENT The Vision Statement supports the Mission Statement by expressing a broad philosophy of what the Orange County Sanitation District strives to achieve now and in the future in the delivery of services to our customers, vendors,other agencies,the general public and each other. "ORANGE COUNTY SANITATION DISTRICT WILL BE A LEADER IN: • Providing reliable, responsive and affordable services in line with customer needs and expectations. • Protecting public health and the environment utilizing all practical and effective means for wastewater, energy, and solids resource recovery. • Continually seeking efficiencies to ensure that the public's money is wisely spent. • Communicating our mission and strategies with those we serve and all other stakeholders. • Partnering with others to benefit our customers, this region, and our industry. • Creating the best possible workforce in terms of safety, productivity, customer service, and training" Core Values The Core Values support the Mission and Vision Statements by expressing the values, beliefs, and philosophy that guides our daily actions.They help form the framework of our organization and reinforce our professional work ethic. • HONESTY,TRUST and RESPECT We aspire to the highest degree of integrity, honesty,trust,and respect in our interactions with each other, our suppliers, our customers, and our community. • TEAMWORK and PROBLEM SOLVING We strive to reach OCSD goals through cooperative efforts and collaboration with each other and our constituencies. We work to solve problems in a creative, cost-effective and safe manner, and we acknowledge team and individual efforts. • LEADERSHIP and COMMITMENT We lead by example, acknowledging the value of our resources and using them wisely and safely to achieve our objectives and goals. We are committed to act in the best interests of our employees,our organization, and our community. • LEARNINGITEACHING-Talents,Skills and Abilities We continuously develop ourselves,enhancing our talents, skills, and abilities, knowing that only through personal growth and development will we continue to progress as an agency and as individuals. • RECOGNITIONIREWARDS We seek to recognize, acknowledge and reward contributions to OCSD by our many talented employees. ix 2018-19 & 2019-20 Budget This page was intentionally left blank. x EXECUTIVE SUMMARY SECTION 1 Executive Summary This FY 2018-19 and FY 2019-20 budget represents $3.1 billion for active and future projects identified a consolidation of two one-year proposed operating within the recently completed Annual CIP Validation and capital budgets. The District's FY 2018-19 Process. operating and capital improvement budget is proposed at $422.3 million, a 9.5 percent increase Cost to Collect,Treat and Recycle One over the prior year budget of $385.6 million. This Million Gallons overall increase is primarily attributable to an increase of$26.4 million in net CIP Outlay, and $9.3 million in $3,000 operating costs. $2,500 $z,4z3 $z,39a Sz,uo $2,055 S2,125 The District's FY 2019-20 operating and capital $1,500 . . . , , improvement budget is proposed at$383.2 million,an $1,500 9.3 percent decrease from the FY 2018-19 proposed $1,000 budget. This overall decrease is mostly comprised of 15-16 16-17 17-18 18-19 19-20 a$37.5 million, or 21.5 percent net decrease in cash Actual Actual Projected Budget Budget outlays for construction projects. The Fluctuation in capital outlay requirements over the next two years is The District has a variety of revenue sources attributable to the timing of the construction schedule available to fund its operating and capital outlay on the implementation of the overall combined ten- requirements. As shown in the table below, the year, $2.7 billion CIP. District's major funding resources come from sewer service fees and property taxes: The table below summarizes the District's funding Fanning Bauman,by category requirements: (in millions) Funding Pegn mli nls by Category 201E-17 2017-18 2018-19 2019-20 (in mlions) Ceti Actual Budget Proposed Roposed 201617 2017-18 2018.19 2019.20 Beginning Reserves $569.5 $5315 3630.0 $678A Category Actual Budge Proposed Proposed Service Fees 300.0 310.2 318.0 320.5 Capital Improvement Rogram $139.7 $148.1 $174s $137.0 Property Taxes 85.7 93.7 99.6 104.5 Operating Expenses 143.4 154.3 163.6 162.7 raring War Fees 141 12.9 18.3 les Debt Service' IWA 82.0 80.5 80.0 Cap l Capacity Cnames 15.0 9.9 14.0 14.5 Intradisuct Transfers 21.7 1.2 3.7 3.5 Interest 4.2 SA 6.5 7.2 Tonal Outlays 485.2 385.6 422.3 383.2 Intranistrict Transfers 21.7 1.2 3.7 3.5 Ending Raervea 531.5 589.1 678.6 M3 Debt Proceeds 0.0 0.0 0.0 0.0 Total Funding Was $1,016.7 $974.7 $1,100.9 $1,156.5 Otter Revenue 5.8 6.9 10.8 9.2 Total Funding Sources $1,016.7 $974.7 $1.100.9 $1,156.6 'Ik fecalyear 201617de6[sessile enw,m[vcNnes a paymeol of$39.1 angina again'[die Dstnicrs wJuMedcensi-n iabJty and a payment of$415 ndlon arise East orasge Cai WaarD'eeict as pant ofan a,,aensaM Budget Overview bcalseaar� The agency's two treatment plants, located in Fountain Valley and Huntington Beach, process a This FY 2018-19 and 2019-20 budget continues to combined 185 million gallons of wastewater each day reflect the agency's ongoing efforts to streamline generated by approximately 2.6 million people in operations. Staffing levels are being proposed at central and northwest Orange County. 636.0 full time equivalent(FTE)positions,an increase of 1.0 FTE position,or 0.2 percent over the 535.0 FTE The FY 2018-19 proposed budget to operate, staffing level that was approved for FY 2017-18. maintain and manage our sewage collection, treatment and disposal system is $161.2 million, a Additionally, service level increases in ocean decrease of 6.1 percent,or$9.3 million,from the prior monitoring, discharge and treatment, water year budget. reclamation and conservation, urban runoff diversions, biosolids management, CIP expansion, Property and liability insurance premiums are and aging infrastructure costs have resulted in a proposed to decrease $0.8 million, or 38.4 percent, corresponding increase in cash flow requirements. due to the drawdown of excess reserves accumulated Considering the CIP alone, the $174.5 million in prior years. approved CIP outlay for FY 2018-19 is part of the Section 1 -Page 1 2018-19 & 2019-20 Budget Overhead cost allocation out to the CIP has been to the scheduled overhaul of only one central increased by$0.7 million,or 3.5 percent based on an generation engine at Plant No. 2. updated District-wide full cost allocation plan. Utilities are proposed to increase $1.6 million, or Combined utilities costs for natural gas, electricity, and water are proposed to decrease $0.5 million, or 27.1 percent in FY 2019-20. This increase is primarily 5.8 percent,due to increased operational efficiencies. due to expected increases in electricity power usage associated with the sludge dewatering and odor Somewhat offsetting these positive impacts on control facilities anticipated to be operational in the operating costs, repairs and maintenance costs are spring of 2019. proposed to increase $5.8 million or 36.2 percent. The cost per million gallons of wastewater treated,an This increase is mostly attributable to increases in industry-wide performance measurement is expected basic repairs and maintenance costs including the to increase in fiscal year 2018-19 to$2,413, a $288, scheduling of digester cleanings at an estimated cost of $1.1 million each and central generation engine or 13.6 percent increase over the prior year budget of overhauls at an estimated cost of$1.3 million each. $2,125, and then decrease in fiscal year 2019-20 to $2,398, a $15, or 0.6 percent decrease from the Personnel costs are budgeted to increase FY 2018-19 proposed budget. The 13.6 percent $2.6 million, or 2.8 percent, primarily due to the increase in FY 2018-19 is primarily due to the budget increase in budgeted salaries and wages in increase and the projected decrease in wastewater accordance with previously approved labor flows through the treatment system from the FY 2017- agreements. 18 budget of 185 million gallons per day (MGD) to Lastly,the District will recognize a$1.5 million loss on 183 MGD projected for FY 2018-19, or a decrease of the disposal of obsolete inventory as part of its effort 1.1 percent. Wastewater flows have an inverse relationship to the cost per million gallons; the lower to improve warehouse efficiency. the flows, the higher the cost. Wastewater flows are The FY 2019-20 proposed operating budget is expected to remain flat at 183 MGD in fiscal year $160.2 million, a decrease of $1.0 million, or 2019-20. 0.6 percent over the FY 2018-19 proposed budget. The District's Capital Improvement Program(CIP)net Personnel costs are proposed to increase cash flow budget for FY 2018-19 is$174.5 million,an $2.2 million, or 2.3 percent increase due primarily to increase of$50.2 million from the prior year estimated a $1.2 million, or 1.6 percent increase in salaries. total. The CIP cash flow budget for FY 2019-20 is Group medical cost is increasing $736,100, or $137.0 million, a decrease of$37.5 million from the 6.8 percent. Staffing is being proposed to remain FY 2018-19 proposed CIP cash flow. This CIP two- unchanged from the 636.0 FTE positions proposed year cash flow budget finances collection system, for FY 2018-19. joint treatment works and disposal system improvement projects. These CIP cash flows are Repairs and maintenance costs are being proposed attributable to the additional infrastructure needs to decrease$2.4 million or 11.0 percent, primarily due identified in the 2017 Facilities Master Plan and in the 2018 validation of the CIP. FY 2018-19 Use of Fund. Source of Funds Interest &Mix capital FTueaY Facilities \ \ Debt Fees Semi. Section 1 -Page 2 Executive Summary How Resources Are Used District resources are used to fund the cost of providing wastewater collection, treatment and recycling service, including employees' salaries and benefits,debt service, capital improvements and the cost of self-insurance. Summary of Operating &Maintenance Expenses Collections, Treatment&Recycling Operations 2016.17 2017.18 2018.19 2019.20 Actual Budget Proposed Proposed Salaries, Wages&Benefits $91,604,774 $93,361,330 $95,992,800 $98,189,100 Administrative Expenses 1,842,155 2,026,550 2,007,530 1,906,030 Printing & Publication 266,648 403,900 316,890 317,410 Training& Meetings 943,824 1,252,320 1,097,080 988,400 Operating Materials & Supplies 14,863,560 15,724,300 15,762,740 18,877,840 Contractual Services 23,711,308 24,489,090 25,206,520 22,055,550 Professional Services 3,528,669 5,125,990 5,393,480 4,602,370 Research& Monitoring 892,313 889,400 1,061,200 1,099,600 Repairs and Maintenance 14,797,760 15,945,110 21,715,360 19,321,260 Utilities 6,118,857 7,898,590 7,439,800 9,028,600 Other Materials, Supplies &Sevices 2,369,297 4,181,660 5,250,190 4,196,820 Cost Allocation-CIP (20,137,574) (19,394,560) (20,070,430) (20,378,610) Net Operating &Maintenance Expenses $140,801,591 $151,903,680 $161,173,160 $160,204,370 Facilities Planning Wastewater Recycling In December 2017, the 2017 Facilities Master Plan In partnership with the Orange County Water District was adopted by the Board of Directors to define the (OCWD), our agency recycles enough water to District's goals, responsibilities, and requirements supply the needs of 850,000 people. Recognizingthe over the next twenty years. It includes projections need for a reliable, affordable and high quality water through the assumed "build-out" of the District's supply, the District's Board of Directors set a goal of service area to beyond the year 2037. This update to recycling 100 percent of all wastewater flows. The the October 1999 Facilities Strategic Plan was District has committed 168,000 acre-feet per year of necessary because many of the assumptions used secondary effluent to the OCWD's Groundwater then have now changed. Critical factors such as Replenishment System(GWRS)for replenishment of population growth, new construction, the volume of the Orange County Groundwater Basin. The District wastewater delivered to the plants and viable water will be working with OCWD on the planning and conservation and reclamation programs have been design of the final expansion of the Groundwater reevaluated. Replenishment System over the next two years. The FY 2018-19 proposed cash flow budget of Sewer Service Fee Increases $174.5 million is part of the overall CIP budget of In March of 2018, the Board approved rate increases $3.1 billion for active and future projects identified for each year over the next five years. These within the recently completed Annual CIP Validation increases are necessary for compliance with the Process. District's debt fiscal policy of balancing the funding of new capital improvements with current revenues and Section 1 -Page 3 2018-19 & 2019-20 Budget existing debt, and to minimize the increase in rates the Five-Year Strategic Plan and, as part of the over an extended period of time. strategic planning process, reaffirmed the following goals: The impact of this five-year sewer fee schedule has increased the single family residence user fee rate, • Odor Control Master Plan — Future process on average, 1.2 percent a year from $335 in systems will produce the benefits intended. FY 2018-19 to $351 in FY 2022-23. These rate increases by the District are still well below the . Future Biosolids Management Options — average annual sewer rate of $529 being charged Develop biosolid disposal options, including throughout the State according to the 2016-17 third-party contracts and onsile capital facilities, California Wastewater Charge Survey by the State for mid and long-term strategies. Water Resources Control Board. . Energy Efficiency — Research new energy Staffing efficiency and conversion technologies to Authorized staffing levels are being proposed at maximize energy efficiency, reduce operating 636 FTE positions over the next two-fiscal years,one costs, and minimize environmental impact. FTE position higher than the approved staffing level for FY 2017-18. However, staffing is still 42 FTE . Ownership Transfer of Local Sewers — positions below the agency's all time high of 678 Complete the transfer of 174 miles of local positions approved in FY 1995-96. sewers to a local sewer agency. The District budgets staffing levels by FTE positions . Future Water Recycling — Determine to provide a realistic estimate of actual staffing levels partnerships, needs, strategies, and the cost vs. since not all employees are full-time employees. The benefit of recycling of Plant No. 2 effluent water. part-time positions are funded at 1,040 hours. Part- time employees receive a prorated share of . Workforce Planning and Development — An personnel benefits. The reductions from fiscal year ongoing workforce planning and development 1995-96 are a result of this agency's effort in striving initiative to ensure that the District has the right to provide wastewater treatment as efficiently and people with right skills and abilities, in the right effectively as possible while reducing operational and place. maintenance costs to more closely match those agencies that are 'best in class" for wastewater This Strategic Plan continues to chart a focused treatment facilities. roadmap of success for the future of the District. It addresses critical operations and construction issues, Strategic Planning financial and budgeting challenges, and gives a clear In December 2015,the Strategic Plan was updated to and concise direction to staff, ratepayers, regulatory cover a new five-year horizon. Following a similar agencies, and the general public. process used in the prior year updates, the General Managers Office initiated the planning effort with the Executive Management Team, then solicited input and ideas from managers and supervisors. In December 2015, the staff-generated ideas were presented to the Board of Directors during a workshop, where Board Members discussed and deliberated changes and additions to the plan. Driven by our Mission, Vision and Core Values, this Strategic Plan continues the Districts aggressive efforts to meet the sanitation, health, and safety needs of the 2.6 million people we serve while protecting the environment where we live. Since implementation of the first strategic plan in 2007, 40 strategic goals have been established and completed. In December 2015, the District updated Section 1 -Page 4 INTRODUCTION SECTION 2 Financial Overview & Budgetary Issues Financial Overview and Budgetary Issues This section of the budget is a financial overview and Budget Comparison an outline of issues affecting the development of the (in millions) budget, as listed below: $200 b150 $1]0 $161 $169 • Proposed Consolidated Cash Flow Budget $t4$ $13] • Proposed Operating Budget $100 $62 $09 $80 • Proposed Net Capital Improvement Outlay • Debt Service Requirements • Sewer Service Fees& Property Tax Revenues $0 • Budget Highlights opembona caD�tal Deb[svc lLT Liab. 9ImD�ovemen[s • Individual Collection System • Reserves .1]-18 Butl9.1 .18-19 Propoeetl .19-20 Propoeetl • Staffing Levels Proposed Operating Budget • Business Plan The Operating program accounts for the costs to • OCSD Long-Term Planning Process operate, maintain, and manage the District's two • OCSD Fiscal Policies treatment plants, with a secondary treatment design • GFOA Best Practices and Advisories capacity of 332 million gallons a day, and the 396 miles of collection systems. All the personnel Proposed Consolidated Cash Flow Budget costs for the District are initially recorded as an The total proposed cash flow budget for FY 2018-19 Operating cost. Costs chargeable to the capital is $422.3 million, a 19.1 percent increase over the improvement program are allocated for the work prior year total cash flow budget of $354.7 million. done through a job cost system. These charges are The total proposed rash flow budget for FY 2019-20 shown as reductions in the line item Operating is $383.2 million, a 9.3 percent decrease from the program budget. Costs remaining in the Operating total proposed cash flow budget for FY 2018-19. The program are ultimately allocated to the two individual increase in FY 2018-19 in comparison to the prior revenue areas that make up the District, the year is primarily due to an increase of$51.7 million Consolidated Revenue Area and Revenue Area 14, in Capital Improvement Program and Future based on flows. Rehabilitation and Replacement Capital Outlay resulting from an increase in construction activity on Operational cost,comprised of collections,treatment projects such as Newhope-Placentia Trunk plant, recycling operations and maintenance, and Replacement (2-72), as well as an unusually high administration are projected to come in under budget level of design expenditures associated with projects for FY 2017-18 Budget by $8.3 million, or that will be in construction starting in 2020 such as 5.4 percent. The FY 2018-19 Budget is being Headworks Rehabilitation and Expansion (P1-105), proposed with an increase of $9.3 million or Primary Treatment Rehabilitation at Plant 2 (P2-98), 6.1 percent from the prior year budget, and the Rehabilitation of Western Regional Sewers (3-64), FY 2019-20 Budget is being proposed with a and the Headquarters Complex(P1-128). decrease of $1.0 million, or 0.6 percent over the FY 2018-19 Proposed Budget. The following table shows the comparisons of the FY 2017-18 Budget, and the FY 2018-19 and operations Budget Comparison FY 2019-20 Proposed Budgets by major budget (In millions) category: $200.0 $149.9 8181.2 $1802 $150.0 $143.6 $100.0 $W.0 $0.0 .17-18 Budget.17-18 Project .19-19 Proposed.19-20 ProposM Section 2—Page 1 2018-19 & 2019-20 Budget Analysis on the year-to-year change is provided from FY 2817-18 Proiected Operating Expense vs. three perspectives. First, the FY 2017-18 Budget is FY 18-19 Proposed Operating Budget compared to the FY 2017-18 year-end projections. The FY 2018-19 Operating Budget is a$17.6 million, Secondly, the FY 2017-18 year-end projections are or 12.2 percent increase over the FY 2017-18 compared to the FY 2018-19 Proposed Budget, and projected operating requirements. Increases in the lastly,the FY 2018-19 Proposed Budget iscompared proposed operating requirements are primarily to the FY 2019-20 Proposed Budget. attributable to increases in salaries, wages and benefits, repairs and maintenance, contractual and FY 2817-18 Operations— Budget vs. Proiected professional services. As depicted by the chart above, operating expenses are projected to come in under the FY 2017-18 Personnel costs are being proposed at$5.6 million, Budget by $6.3 million, or 4.2 percent. The major or 6.2 percent increase over the prior year projection categories that comprised most of the underage mainly due to cost of living adjustments included in include utilities, operating materials and supplies, the current Memorandums of Understanding for all and other operating costs; as well as the overage in employee bargaining units. Group insurances the costs being allocated out of the operating budget premiums are proposed to increase $0.9 million, or to CIP.Somewhat offsetting these shortfalls includes 4.0 percent over the prior year projection primarily an overage in contractual expense. due to an increase of medical insurance premiums. Adding to the salaries increase is the addition of one Utilities costs are expected to come in under budget new full time equivalent(FTE)staff position bringing by$3.2 million,or 31.3 percent primarily due to a new the proposed total FTE count in FY 2018-19 and operating strategy implemented to reduce utility- 2019-20 to 636.0 FTEs. provided electricity; and electricity and natural gas commodity costs lower than projected in the budget. Full Time Equivalent(FTE)Staff Operating materials and supplies are expected to GM 14 4 come in under budget by$2.5 million,or 14.3 percent primarily due to a decrease in price per unit of Human z� peroxide and decreased usage from optimization nesonrcee z� and new bio scrubbers at Plant No.1 Headworks AdministralWe 100 (Project P1-123) that capture and treat larger svice. 100 volumes of foul air. Emimnmental 91 Svcs. 91 Other operating costs are expected to come in under Engineering 116 budget by $1.9 million, or 6.7 percent due primarily 116 to decreased waste discharge requirements/sewer O&M 28e system management plan audit that is done every 2aa two years for OCSD's collection systems, and the o 1ro zoo 390 aW unneeded and unspent budgeted contingency and -FY18.19 •FY 19-20 prior year re-appropriation funds totaling$0.4 million. Total Boa FTEe Total Bea Me Increased cost allocation out to CIP is expected to Contractual services and professional services are enhance these operating savings by $0.9 million, or proposed to increase $0.9 million, or 3.7 percent; 4.6 percent due to the overall increase in CIP and $1.5 million, or 38.4 percent; respectively due outlays. primarily to increasing support for the Civil Assets Maintenance Program, new coating program, Contractual expenses are expected to exceed the preventive maintenance optimization services, and FY 2017-18 Budget by $1.7 million, or 7.5 percent engineering professional and design services. primarilydue to manhole repairs and rehabilitation, industrial cleaning services and CCTV inspections, Repairs and maintenance costs are proposed to assessment services related to the Comprehensive increase $6.0 million or 38.2 percent over the prior Assets Management Program (CAMP), and odor year projection.Major changes from year-to-year are control and emergency line repair services. basically from the timing of when large facilities are scheduled for maintenance. During FY 2018-19,two central generation engines are scheduled for overhaul at an estimated cost of $3.8 million and Section 2—Page 2 Financial Overview & Budgetary Issues major rehabilitation of primary and secondary Proposed Net Capital Improvement Outlay clarifiers and both plants is planned for$1.6 million. Proposed capital improvement outlays approximate In addition, new, increased scope for electrical one-third of the overall proposed budget and provide services in the process areas and rehabilitation of for the rehabilitation, replacement, expansion and generators is planned as well as specialized lighting upgrades of facilities at the two treatment plants, and HVAC services. including the utility systems, administrative facilities, and the ocean disposal system, and the FY 2019-20 Proposed operations Budget vs. rehabilitation,replacement and expansion of the 396 FY 2018.19 Proposed Operations Budget miles of the collection system and off-site pump In FY 2019-20, the second year of this two-year stations. operating budget, staff is proposing a 0.6 percent, or $1.0 million increase over the FY 2018-19 proposed The net CIP outlay has been prepared under operating requirements. Increases in the proposed assumptions included in the Facilities Master Plan operating requirements are primarily attributable to adopted by the Board of Directors in December 2017 increases in personnel costs, operating materials and in accordance with the Board approved 2015 and supplies, and utilities. Five-Year Strategic Plan Update. Personnel costs are being proposed at a 2.2 percent, The projected outlay for the CIP is expected to reach or $2.2 million increase in FY 2019-20 over the 83.0 percent of FY 2017-18 budget, or FY 2018-19 Proposed Budget. This increase is $124.3 million. The proposed net CIP outlays for mostly attributable to the cost of living adjustments in FY 2018-19 and FY 2019-20 are$174.5 million and salaries based on existing bargaining unit $137.0 million, respectively, and are part of an agreements, and an increase of group medical overall 20-year CIP outlay of $5.5 billion for all insurance premiums. Staffing position is proposed to planned active and future projects,as well as outlays remain at 636.0 FTEs. allotted for future rehabilitation and replacement of the District's aging assets and systems. Operating materials and supplies are being proposed to increase $3.1 million or 19.6 percent, There are four key drivers that lead to CIP projects: primarily due to Sludge Dewatering and Odor Control (1) Rehabilitation and Replacement; (2) Additional (P1-101) centrifuges that will start up at the Capacity;(3)Regulatory;and(4)Strategic Initiatives. beginning of the fiscal year, the additional cationic In December 2017,the Board of Directors adopted a polymer usage for the dewatering centrifuges is new Facilities Master Plan to define the District's required. In addition, the price per unit cost of goals, responsibilities, and requirements over the chemical coagulants is projected to increase 3.0%. next twenty years. The Master Plan provides a comprehensive analysis of the condition and Contractual service costs are being proposed to capacity of the District's wastewater infrastructure. It decrease $3.2 million or 12.6 percent, primarily due also evaluated the potential impacts due to to Sludge Dewatering and Odor Control (P1-101) anticipated regulatory changes, and incorporated centrifuges is projected to be in operation and solid recommendations from other recent master planning cake will increase from 20% to 27% to reduce wet efforts, such as the Effluent Reuse Study, Biosolids tons produced,solids removal costs. Master Plan, and Odor Control Master Plan, to create a Capital Improvement Program which Repairs and maintenance costs are being proposed supports the District's mission over the next to decrease$2.4 million or 11.0 percent,primarilydue 20 years. to reduction in preventive maintenance services and engine overhaul costs. As demonstrated by the chart below, the most prevalent CIP project driver is to rehabilitate and Utilities are proposed to increase$1.6 million, or replace aging assets. The District is now facing a 21.6 percent in FY 2019-20. This increase is due to time when dry weather influent flows have decreased increased requirement for imported electricity and discharged regulations have stabilized. Much of resulting from the start-up of dewatering centrifuges. the capital improvement costs will be focused on FY 2019-20. asset management, rehabilitation, and replacement of aging infrastructure. Section 2-Page 3 2018-19 & 2019-20 Budget FY 2018-19 Net CIP Outlays by proposed project budgets of $199.5 million and Project Driver $90.5 million, respectively. Proposed cash outlays for these two projects in FY 2018-19 and FY 2019- 20 are $12.2 million and $4.6 million and Regulatory $13.4 million and $6.8 million, respectively. Other 10/ treatment plant projects with significant cash outlays over the next two years include Headworks Additional Rehabilitation and Expansion at Plant No. 1 (Project Capacity Rehabilation and No. P1-105) ($12.4 million and $7.5 million), 13% I Replacement Headquarters Complex and Site Security at Plant f 62% No. 1 (Project No. Pi-128) ($10.5 million and Strategic $9.6 million), and Ocean Outfall System Rehabilitation (Project No. J-117) ($7.4 million and $18.1 million). The Collection System Capital Program projected outlay for FY 2017-18 is expected to reach The proposed CIP includes 68 active and future 59.0 percent of the annual net CIP outlay of capital projects,five programs, such as the Planning $35.9 million. The FY 2018-19 and FY 2019-20 Studies Program (M-Studies) and Small proposed CIP budget authorities for Collection Construction Program(M-FE),and budget for capital System Improvement Projects are$33.4 million and equipment purchases with a 10-year outlay of $36.0 million, respectively. These proposed $2.67 billion. improvements are needed to keep the 396 miles of collection systems free from failure. The proposed 2018-19 CIP budget is organized by Three large projects in the Collection System include treatment process. The funds requested for the the Rehabilitation of Western Regional Sewers current cash flow budget total $191.8 million, an increase of 14.9 percent over last year's cash flow (Project No. 3-64), the Newhope-Placentia Trunk budget of$167.0 million. Replacement(Project No.2-72), and the Bay Beach Pump Station Replacement (Project No. 5-67) with The projected outlay for FY 2017-18 for Treatment total project budgets of $202 million, $112 million, and Disposal Improvement projects is expected to and $64 million; and FY 2018-19 and FY 2019-20 reach 92.0 percent of the annual net CIP outlay of proposed cash outlays of $6.5 million and $108.7 million. The FY 2018-19 and FY 2019-20 $6.6 million, $13.5 million and $9.3 million, and proposed net CIP outlays for Treatment and $13.0 million and $3.6 million, respectively. The Disposal Improvement projects are $137.6 million Capital Improvement Program is described in more and$98.6 million, respectively. detail in Section 8 of this document. Debt Service Requirements CIP Program Net CIP Outlays The District's long-term debt fiscal policy restricts (in millions) long-term borrowing to capital improvements that $1� $137.6 cannot be financed from current revenue. Before any $10e7 new debt is issued, the impact of debt service $99.s $9Bu payments on total annual fixed costs will be 5100 analyzed. $50 $359 $33.6 36.0 $z1.1 The District issued the $80.0 million Wastewater Revenue Obligation, Series 2010A in May 2010 and $0 Treehnenl8 DisD.System Collection System the $157.0 million Wastewater Revenue Obligation, Series 2010C in December 2010, both as "Build 017-18 Budge) .17-18 Proieoled .18-19 Proposed .19-20 Proposed America Bonds" (BABs)fixed rate debt and the last of the "new" money debt issuances. The American Large treatment system projects include Sludge Recovery and Reinvestment Act of 2009 createdthis Dewatering and Odor Control at Plant No. 1 (Project new financing product, BABs, for the municipal No. P1-101)and Plant No.2(Project No. P2-92)with issuer. BABs are issued as higher interest taxable bonds; however, the U.S. Treasury provides a Section 2-Page 4 Financial Overview & Budgetary Issues 35.0 percent subsidy on interest payments. The net Program. Revenue Area No. 14 is funded through cost, after accounting for the 35.0 percent subsidy user fee charges to the IRWD. Sewer service fees payment, frequently results in lower net costs to the are set annually by the District after a review of issuer, specifically in the maturity years beyond ten projected needs. years. Based on the market conditions at the time of these issuances in comparing the back-loaded BABs In the fall of 2007, District staff conducted strategic new money borrowing to a back-loaded tax-exempt planning workshops with the Board of Directors to lay structure, Series 2010A resulted in present value out a capital program to deliver the levels of service savings to the District of$15.2 million, as the debt desired by the Board of Directors. These levels of was issued at an all-in true interest cost of service and resulting capital projects are included in 3.7 percent; and Series 2010C resulted in present the District's Five-Year Strategic Plan. This effort value savings to the District of$20.0 million, as the was reinforced through the adoption of a new Master debt was issued at an all-in true interest cost of Plan in December 2017, a planning effort to define 4.1 percent. the District's goals, responsibilities, and requirements over the next twenty years. The 2017 On March 1, 2013, the federal government Facilities Master Plan defined a CIP consisting of implemented certain automatic spending cuts known over 80 future infrastructure projects. Collectively, as "the sequester". As a result of the sequester, these projects along with current active projects total federal subsidy payments on BABs have been over $5 billion of CIP spending over the next reduced annually from a high of 8.7 percent for the 20 years. federal fiscal year ended September 30, 2013 to a low of 6.6 percent for the federal fiscal year ended The 2017 Facilities Master Plan also included a September 30, 2018. Wastewater Revenue Program Rate Study which determined the appropriate rates going forward to In January 2017, the District issued $66.4 million of support the proposed 20-year CIP. Wastewater Refunding Revenue Obligations, Series 2017A to refund $91.6 million of Certificates of In March 2018, following a Proposition 218 notice Participation, Series 2007A at a net present value process,the Board approved sewer rate increases for savings of $14.5 million. As a result of having an each year over the next five years averaging adequately funded reserves policy, experienced approximately 1.2 percent a year. These increases management, and prudent planning,the District was are necessary to provide needed capital again able to secure a"AAA"credit rating from Fitch improvements, to meet additional treatment and Ratings, Moody's, and Standard and Poor's on this disinfection requirements,and to minimize future rate latest debt issuance. increases. This two-year budget proposes no additional new The impact of this five-year sewer fee schedule has money debt issuances as the $2.7 billion in future increased the single-family residence user fee rate, replacement, rehabilitation, and refurbishment the underlying rate for all sewer service user fees,an projects anticipated over the next ten years will be average of 1.2 percent a year from$335 in FY 2018- adequately funded through cu ment sewer service fee 19 to$351 in FY 2022-23. charges and existing reserves.The FY 2018-19 debt service requirements are proposed at $80.5 million, Comparison of Single Family Residential Rates a decrease of $1.5 million, or 1.8 percent from (July 2017) FY 2017-18 projected. Total Debt Service 5840 requirements for the second year of this two-year °°oo budget will fall to $80.0 million, a $0.5 million or nm 0.6 percent decrease. 58� The District's Debt Financing Program is described 5°x in more detail in Section 9 of this budget. Sewer Service Fees nw 'p m s es The Consolidated Revenue Area has an adopted Sanitary Sewer Service Fee to provide funding for operating the sewer systems in accordance with the so Clean Water Act and the District's Revenue Section 2—Page 5 2018-19 & 2019-20 Budget Even with these increases, the OCSD rates are still well below the average annual sewer rate of $529 COP Funding Requirements vs. being charged throughout the State according to the Property Tax Funding Source 2017 California Wastewater User Charge Survey S+Os,000,000 conducted by the Slate Water Resources Control 5as,000,000 Board. $es,000,000 $75,000,000 IM In FY 1997-98, the District's Rate Advisory $e5,0o0,000 Committee, made up of elected city officials, $ss,000,000 community, business and industry leaders, and $45,000,000 District staff analyzed the District's rate structure to $35,000,000 determine whether user fees were equitable among $25,000,000 1110 residences and industry. In May of 1998, the Board $15,000,000 approved the proposed revisions to the Sewer 2003 2010 M17 Service User Fee rate structure that more equitably -_PMPaV Taxes —ar— cop sennce charged consumers based on actual usage while remaining revenue neutral. Significant changes in the rate structure included: Historically,the District's property tax revenues were at a higher level than necessary to support the • Non-residential user charge will be based upon District's debt service obligations. However, capital typical quantity and strength of discharge per improvement needs averaging $200.0 million a year 1,000 square feet. over the last ten years has required new COP debt • Fees for users who discharge high quantities or issuances that have increased future debt service high-strength waste, including former Class III payments that more closely matches property tax permittees such as restaurants and revenues. laundromats,will be based on the assumed flow and strength per 1,000 square feet. Property lax revenues have increased from • Discontinuation of the Class III permit process $85.7 million in FY 2016-17 to a projected because of the implementation of the expanded $104.5 million in FY 2019-20, primarily due to the and more accurate rate structure. This resulted rebound from the economic decline and the collapse in simplification of the billing and collection in the housing and commercial property markets process for these two hundred users. beginning in 2008. Property tax revenues are now • The revised rate structure resulted in a greater being projected to increase 5.0 percent a year number of decreases in charges (22,000) for through FY 2019-20. non-residential users than increases(13,000). Any property lax revenue shortfalls in meeting debt Overall, the total fees collected remained essentially service obligations may require adjustments to user the same as those generated by the old structure. fees, as making debt service payments are legally mandated. Property Taxes The District's share of the one percent ad valorem Budget Highlights property tax is dedicated for the payment of COP This section briefly outlines the proposed major debt service. The apportionment of the ad valorem changes in all departments and Revenue Areas over tax is pursuant to the Revenue Program adopted in the next two years. All Joint Works Operations, or April 1979 to comply with regulations of the plant operating costs and collection system costs are Environmental Protection Agency and the State consolidated into the individual department budgets Water Resources Control Board and in accordance for better accountability and control. However, with COP documents and Board policy. separate accounting is maintained between Joint Works Operation activities (treatment and recycling operational costs) and collection operational activities since each Revenue Area is directly responsible for their own collection operating costs. The Joint Works Operation activities are allocated to the Revenue Areas based on their individual contributions to the annual sewage flow. Likewise, the Joint Works Capital Improvements are allocated Section 2-Page 6 Financial Overview & Budgetary Issues to the Revenue Areas on a three-year average of Environmental Services sewage flows called the "joint works equity • An increase in research and monitoring costs of percentage", and each Revenue Area is responsible $172,000. for their own collection system capital improvements. Details for each department can be found in"Section • An increase of $700,000 in operating costs will 6-Operations" of this document. Complete staffing cover the following expenses: 1) once per 5-year schedules are located in the Appendix. permit cycle special studies; 2) once per 5-year regional monitoring activities; and 3) an inter- General Manager's Office agency third party audit. • An amount equaling 0.5 percent of the Operating No net change in FTE over the next two years. materials and services budget is included within the General Manager's Re-appropriation line item Engineering for each of the next two fiscal years. Since the An increase in salaries, wages and benefits of current year's budget lapses each year, re- $445,000 in FY 2018-19 is primarily due to cost of appropriation of funds is needed to pay for goods living adjustments included in the current or services ordered at the end of one budget year Memorandums of Understanding for all employee but not provided until the following year. The bargaining units and group medical insurance General Manager reviews and approves all departmental re-appropriation requests to ensure premiums. that prior year funding was available and has not FY 2018-19 proposed CIP outlays of been spent. $177.6 million, an increase of $53.3 million, or • An amount equal to 0.85 percent of the Operating 42.8 percent, over last years cash flow budget of materials and services budget is included within $124.3 million. the General Manager's contingency account for FY 2019-20 proposed CIP outlays of each of the next two fiscal years. $149.0 million is a decrease of $28.6 million, or 16.1 percent, from FY 2018-19 proposed Human Resources budgeted CIP cash outlays. • A decrease of$812,000 in property and general No net change in FTE over the next two years. liability insurance premiums are anticipated in FY 2018-19 and an increase of $421,000 in Operations&Maintenance FY 2019-20. FY 2018-19 increases over FY 2017-18 budget: • No net change in FTE over the next two years. . An increase in personnel and benefits costs of Administrative Services $1.2 million primarily due to cost of living adjustments included in the current • An increase in salaries,wages,and benefits costs Memorandums of Understanding for all employee of$726,000 in FY 2018-19 is attributable to cost bargaining units and group medical insurance of living adjustments included in the current premiums. Memorandums of Understanding for all employee An increase in contractual services of $343,000, bargaining units and group insurances premiums. or 1.6%, due to increasing support for the Civil • An increase of $537,000 in contractual service Assets Maintenance Program. costs mainly due to the California Association of • An increase in repair and maintenance of Sanitation Agencies (CASA)wastewater flow and $5.5 loading stud engines million mainly due d two central generation 9 Y� engines are scheduled for overhaul at an • An increase of$200,000 in service maintenance estimated cost of $3.8 million and major agreements costs mainly due to additional rehabilitation of primary and secondary clarifiers software purchased and increased license costs. at both plants is planned for$1.6 million. • An increase in materials, supplies and service A decrease in utilities costs of$576,000. costs of $1.9 million primarily due to a one-time . A net increase of 1.0 FTE beginning in inventory write-off of$1.5 million in FY 2018-19. FY 2018-19. • No net change in FTE over the next two years. Section 2-Page 7 2018-19 & 2019-20 Budget FY 2019-20 increases over FY 2018-19 budget: Reserves • An increase in personnel and benefits costs of In 1998,the District conducted an in-depth review of $1.0 million. the agency's reserve policies.This review included a survey of the reserve policies of 23 other public • An increase in operating materials and supplies agencies as a tool to assist in the evaluation of the costs of$3.1 million mainly due to the additional underlying economic reasons supporting the cationic polymer usage for the thickening and District's reserve policies. Based on this review, the dewatering centrifuges at an estimated cost of Directors approved the following reserve policy: $2.6 million. • Cash Flow Criterion has been established at a • A decrease in contractual services of$2.7 million level to fund operation, maintenance and due primarily to a decrease of$3.7 million in solid certificates of participation debt service expenses removal. The sludge dewatering and odor control for the first half of the fiscal year. The first (P1-101) centrifuges is projected to be in installment of property tax revenues and sewer operation and solid cake will increase from 20% service user fees that is collected by the County to 27%to reduce wet tons produced. through the property tax bill is not available until • A decrease in professional service costs of late December each year. $926,000 for on-site supplemental reliability . Operating Contingency Criterion has been engineering support services. established to provide for non-recurring • A decrease in repair and maintenance of expenditures that were not anticipated when the $2.6 million mainly due to reduction in preventive annual budget and sewer service fees were maintenance services and engine overhaul costs. considered and adopted.The level of this criterion • No net change in FTE. will be established at an amount equal to ten percent of the annual operating budget. Individual Collection System Capital Improvement Criterion has been Operating - reflects costs of operating and maintained to fund annual increments of the maintaining each Revenue Area's collection system, capital improvement program. The long-term goal utilities, and Directors' fees. Industrial/commercial is to fund one half of the capital improvement monitoring costs reflecting the expense of enforcing program from borrowing and the other half from the Uniform Use Ordinance and EPA's pre-treatment current revenues and reserves.With this program standards are also included. The largest operating in mind, the target level of this criterion has been cost is the Revenue Area's flow-based share of the established at one half of the average annual cash Joint Works Operating expenses. outlay of the capital improvement program through the year 2020. Levels higher and lower Capital Facilities - accounts for each Revenue than the target can be expected while the long- Area's share of the Joint Works Capital Improvement term financing and capital improvement programs projects and for individual Revenue Area trunksewer are being finalized. Proceeds from any debt or pump station projects. The entire collection issuance targeted for construction are also system has a sewer construction program Master included in this criterion until spent. Plan in progress as a result of the 1999 Strategic Catastrophic Loss.or Self-Insurance Criterion has Plan. Other line items in these funds are been maintained for property damage including accumulated reserves for future capital fire, flood and earthquake, for general liability improvements in accordance with Master Plans a and for workers' compensation. This reserve federal and state requirements and annual purchase criterion is intended to work with purchased or sale of equity in the jointly-owned treatment works insurance policies, FEMA and State disaster as provided for in the Joint Ownership, Operation, reimbursements.Based on the plant infrastructure and Construction Agreement. replacement value, the level of this criterion has been set to fund the District's non- reimbursed Debt Service/COP- accounts for the proceeds from costs, estimated to be$57 million. and service of the Capital Improvement Program • Certificates of Participation (COPs). The District's Capital Replacement/Refurbishment Criterion will established to provide thirty percent of the share of the one percent basic levy ad valorem be funding to replace o refurbish the current property tax is dedicated to provide for COP principal collection, treatment and recycling facilities at the and interest payments. See Section 9 for additional end of their useful economic lives. The current information on the District's debt financing program. replacement value of these facilities is estimated Section 2-Page 8 Financial Overview & Budgetary Issues to be $10.8 billion. The initial reserve criterion Following the funding of the FY 2018-19 spending level had been established at $50 million, and is plan, total year end reserves are projected to fall to augmented by interest earnings and a small $678.6 million at June 30, 2019, within portion of the annual sewer user fee, in order to $150.6 million of the consolidated reserve policy of meet projected needs through the year 2030. $528.0 million. Debt Service Criterion is required to be under the Proposed Reserve at 6130H9 control of a Trustee by the provisions of the (in millions) certificate of participation (COP) issues. These funds are not available for the general needs of the District and must be maintained at specified levels. Cash Flow& . Rate Stabilization Criterion will be used to s98 operating accumulate all available funds exceeding the s.lr- contingency Iruurann targets for all other reserves. These funds will be cdtenpn, Cdtsdon,$177.1 applied to future years'needs to maintain rates or asr.0 to moderate annual fluctuations. There is no established target for this criterion. Capital Criterion.,$63.E63.8 Projected Reserve at 6/30118 capital (in millions) Imp rovemera Criterion,$284.1 Debt Service Criterion, Cash Flow& $100.5 operating Contingency sell- Criterion,$168.3 Collectively, these individual criterion requirements ren nsuion, Criterion, average$600 million a year over the current ten-year $57.0 cash Flow forecast, approximately nine percent of OCSD's total $6.2 billion in assets. Capital Raid. Criterion,$62.5 Staffing Levels Capital Authorized staffing levels are being proposed at l,npreworr t 636 FTE positions over the next two-fiscal years,one Criterion,u41.8 FTE position higher than the approved staffing level �- for FY 2017-18. However, staffing is still 42 1 positions below the agency's all time high of 678 positions approved in FY 1995-96. The FY 2017-18 total projected year-end reserve is 0.0 million,Y 2016-17 reserve rve million greater than the The District budgets staffing levels by FTE to provide IF a realistic estimate of actual staffing levels since not FY requirement of$531.5 million. all employees are full-time employees. The part-time The excess reserve buildup is due to the timing of positions are funded at 1,040 hours per year. Part- the actual CIP outlays. As previously noted, the time employees receive a prorated share of projected CIP outlay for FY 2017-18 is only personnel benefits. $124.3 million, or 78.1 percent of the total capital The staffing reductions from 1995-96 are a result of outlay cash flow budget of $159.1 million. In this agency's effort in striving to provide wastewater addition, $200 million of the previous overall treatment as efficiently and effectively as possible projected outlays through fiscal year 2019-20 have while lowering operational and maintenance costs to now been pushed out into future years. more closely match those agencies that are "best in As a result of the CIP program being rescheduled out class" for wastewater treatment facilities. However, into future years, the proposed budget for FY 2018- as the result of new initiatives in the areas of water 19 includes the funding of$80.5 million of long-term reclamation and conservation, and the expansion of obligations. I the Capital Improvement Program(CIP),the existing Section 2—Page 9 2018-19 & 2019-20 Budget staffing plan was no longer sufficient to meet the OCSD Long-Term Planning Process District's needs. The District's current efforts in regard to long-term Authorized FTE Staffing planning include the 2017 Facilities Master Plan, which identified a phased 20-year program of capital fi40 improvement projects that maintain reliability and accommodate future growth, as well as meet future regulatory requirements, level of service goals, and 635 strategic initiatives. With this plan, the District can identify the capital investments needed to achieve its 630 goals and adjust rate structures to produce the necessary ceshflow to support this 20-year CIP program. fi25 CIP Master Planning In October 1999, the District completed its CIP fi2o Strategic Plan, an update of the 1989 30-year"2020 Vision" Master Plan. Many of the assumptions used 615 to develop the original plan, such as inflation, the 11-12 12-131&14 14-15 15-16 16-17 17-18 18-19 1 20 projected service population, the level of building activity, and the volume of wastewater treated,were The Appendices within Section 10 provide a Staffing quite different from what was assumed nearly ten History Summary (by Department and Division) and years earlier. If the assumptions of the Master Plan Detail (by position title within each Department and were not updated, the District could be constructing Division). unnecessary facilities and charging higher fees than would be needed. Business Plan In addition to updating the population and flow The District began development of a comprehensive assumptions, the Strategic Plan provides for an annual Business Plan that was first included within operations and financial plan and includes a review the FY 2005-06 Budget document, and has been of the collection, treatment and recycling facilities, updated in every biennium budget since, including and ocean ouffalls. this update following the Board acceptance of the Five-Year Strategic Plan in December 2015. This In June 2002, a new, or interim, CIP Strategic Plan Business Plan includes the funding resources Update was completed that revised many of the necessary to support the Board approved strategic assumptions used to develop our previous planning goals including providing exceptional customer documents, including population and land-use service, protecting public health, stakeholder projections,the level of building activity in our service understanding and support and organizational area and the volume of wastewater to be treated. effectiveness.Also included in this updated business This information was needed for the Board's plan, is the business planning process and the consideration of secondary treatment the following current and projected key performance indicators month. (levels of service). The following topics are included within the FY 2016-18 Business Plan: The Interim Strategic Plan Update also provides an operations and financial plan including a review of • Strategic Goals our collection, treatment and recycling facilities, and • Levels of Service a study of our ocean ouffall system. • Performance Indicators and Results In December 2009, the District adopted a new • Two-Year Staffing Plan Facilities Master Plan to define the capital projects • Updated Financial Model needed to meet the agency's level of service • Risk Assessment& Mitigation Analysis requirements over the next twenty years. It includes • Updated Asset Management Plan projections through the assumed "build-out" of the District's service area to the year 2050. Critical A more detailed description of the FY 2018-19 factors such as population growth, new construction, Business Plan is provided within Section 2-Page 14 the volume of wastewater delivered to the plants and through Page 27. viable water conservation and reclamation programs were reevaluated. Section 2-Page 10 Financial Overview & Budgetary Issues The 2009 Facilities Master Plan was replaced with Since implementation of the first comprehensive the 2017 Facilities Master Plan in December 2017. strategic plan in 2007, 40 strategic goals have been Like previous versions, this latest master plan established and completed. In December 2015, the updated planning assumptions, provided a District updated the Five-Year Strategic Plan and,as comprehensive analysis of the condition and part of the strategic planning process, reaffirmed the capacity of our wastewater infrastructure, assessed following goals: new technology opportunities,anticipated regulatory changes, and resource recovery options to create a • Completion of the Odor Control Master Plan; roadmap of facility evaluation improvements which . Development of Future Biosolids Management supports the District's mission over the next 20 Options; years. • Research new energy efficiency and conversion technologies; The 2017 Facilities Master Plan defined a Capital . Complete the transfer of 174 miles of local sewers Improvement Program comprised of over 80 CIP to a local agency; projects. However, the budget allotted for each . Determine partnerships, needs, strategies, project must be approved by the District Board of benefits and costs associated with recycling of Directors during the annual budget review. To Plant No. 2 effluent water; and prepare for this annual budget review, District . Workforce planning and development to ensure employees go through a budget validation process. that the right people with the right skills and District employees review each CIP projectto ensure abilities, are in the right place, at the right time. that the scope of the project is appropriate, and that the cost estimates are accurate. In addition, through This Strategic Plan continues to chart a focused the Asset Management Program, the Planning roadmap of success for the future of the District. It Division continually reviews and updates the addresses critical operations and construction ongoing and future CIP to appropriately manage the issues; financial and budgets challenges; and gives risks associated with asset or system failure. Future a clear and concise direction to staff, ratepayers, projects may be accelerated, delayed, consolidated, regulatory agencies, and the general public. canceled or rescoped to help ensure that the CIP is delivered in the most efficient way possible. Biosolids Management As a resource recovered through the wastewater Five-Year Strategic Plan treatment process, the District treats nutrient-rich, In November 2007,the Board of Directors adopted a organic matter (solids) to produce biosolids. new comprehensive strategic plan to steer the Biosolids can be recycled through composting or District's efforts and engage the organization to fertilizing farm fields (non-food crops via land envision service levels and operational needs for the application). The District's goal is to ensure that next five years. This strategic plan has been biosolids management strategies align with best reviewed and updated each year since. beneficial use of biosolids, existing market In December 2015, the Strategic Plan was updated conditions and continue a sustainable, reliable, and economical biosolids management program that to cover a new five-year horizon. Following a similar process used in the prior year updates, the General provides environmentally sound practices and meets the stringent federal, state, and local regulatory Manager's Office initiated the planning effort with the Executive Management Team, then solicited input requirements. and ideas from managers and supervisors. The In FY 2016-17, the District produced an average of resulting staff-generated ideas were presented to the about 791 tons per day ("tpd") of biosolids at a cost Board of Directors during a workshop, where Board of $16,668,162, which averaged $57.72 per ton for Members discussed and deliberated changes and hauling and recycling at offsite locations, as additions to the plan. described in the table on the following page. Driven by our Mission, Vision and Core Values, this The FY 2018-19 budget for biosolids management is Strategic Plan continues the District's aggressive $16.2 million, with a decrease of 23 percent efforts to meet the sanitation, health, and safety anticipated in FY 2019-20 to$12.5 million due to the needs of the more than 2.6 million people we serve completion of the $188 million Plant No. 1 and the while protecting the environment where we live. $90.5 million Plant No. 2 Sludge Dewatering and Odor Control facilities that are projected to come Section 2-Page 11 2018-19 & 2019-20 Budget online in 2019. These facilities will reduce the water calculated on a monthly average. For the first 12 content of the solids which will result in fewer trucks years of the Urban Runoff Program, the average and lower hauling costs. The District's biosolids monthly flow averages remained less than the four production will begin trending down as new solids MGD threshold thus avoiding user fee costs being management facilities are commissioned. Also assessed to the diversion permittees. noteworthy is that IRWD is constructing solids processing facilities and plans to stop sending their In 2012, OCSD received a number of diversion solids to the District in 2019. proposals to deal with bacteria and selenium loading to the upper Newport Bay. The discharge from the AVpt.rons per additional proposed diversions combined with the Dario existing diversion flows would eventual) exceed the S Location Pmtluc! Avg.Coat Per Ton 9 Y l 2DIBI four MGD fee threshold. On June 12, 2013, the ,Number, san lbemaNm° Produce compoet 285 tpd-$50.9t Board adopted Resolution No. 13-09 expanding the Tale ale Ranch, Yuma coonlr, rana waiver of fees charges the treatment of dry Ag7xb az appnpadop 321 tp runoff four weather urban runoff from four MGD to ten MGD. ubedy compost Ka �-n County compoet ta2 t $s7.65 According to the Board, the change was necessary Inland empre not only to protect the County's coastal resources, Regional ammo but also to provide an economic benefit to the local competing Facility Cucamonga, Cumpoet 36 rod-$73.ss economy b helm to keep our beacheso en. (hauled by Denan CA Y Y helping P P water solution The Dry Weather Urban Runoff Program is The District's contractors provide fail-safe, back-up administered by the District's Resource Protection biosolids management capacity in California and Division,which issues a discharge permit for each of Arizona that include composting, land application, the diversion structures. The permit functions as a and landfill. Together, these options have the control mechanism that specifically prohibits storm additional available capacity to manage ten times the runoff and authorizes discharge only during periods District's daily biosolids production to ensure of dry weather. The permit also establishes specific sustainable, consistent, and reliable operations. discharge limits, constituent monitoring, and flow metering requirements. In addition, the District The District staff are working to implement the conducts quarterly sampling and analysis of the recommendations of the recently-completed urban runoff discharges to ensure discharge limit Biosolids Master Plan. The plan evaluated the compliance with the various regulated constituents. biosolids markets and technology options for digestion facility replacement at our Plant No. 2 in There are currently 21 active urban runoff diversion Huntington Beach, keeping in mind OCSD's goal to structures,three owned and operated by the County accommodate Orange County's food waste of Orange, 11 owned and operated by the City of diversion needs.This plan will serve as the road map Huntington Beach,three owned and operated by the for sustainable and cost-effective Biosolids City of Newport Beach,three owned and operated by management options over a 20-year period and will the IRWD, and one owned and operated by PH diversify our biosolids portfolio by adding a Class"A" Finance (present owner of the Pelican Hill Resort). option underfederal rules for biosolids management. The City of Newport Beach added their second diversion on Big Canyon Creek, an upper Newport Urban Runoff Bay tributary in 2015,followed by a third diversion in Recognizing that County beaches were being the Mid Big Canyon Nature Park in 2017. IRWD affected by pollution carried by urban runoff, the completed the Peters Canyon Diversion,the biggest Board of Directors adopted a number of resolutions contributor of selenium in the San Diego Creek agreeing to accept dry weather urban runoff into the watershed in dry weather, in 2016.The City of Santa sewer system. In June 2002,Assembly Bill 1892 Ana is currently constructing an urban runoff amended the District's charter to formally allow the diversion to deal with bacteria and selenium loading diversion and management of dry weather urban to the Newport Back Bay Watershed. The Delhi runoff flows. Resolution No. 01-07, adopted March Channel Diversion, expected to go on line in 28,2001,declared that the District will initially waive September of 2018, is estimated to add an addition fees and charges associated with authorized 2.0 to 2.6 MGD to Plant 1 influent. discharges of dry weather urban runoff to the sewer system until the total volume of all runoff discharges exceeds four million gallons per day (MGD) Section 2—Page 12 Financial Overview & Budgetary Issues Financial Overview& Budgetary Issues: secondary effluent from the District's Plant No. 2 in Since 1999, the District has treated a total of Huntington Beach using new and existing 8.9 billion gallons of dry-weather urban runoff that infrastructure to support the GWRS Final Expansion. would otherwise have been discharged into the The GWRS Final Expansion will be funded solely by ocean with no treatment. During fiscal year 2016-17, the OCWD. The District currently has two active the daily average urban runoff flow ranged between projects supporting the GWRS Final Expansion. The 0.18 and 1.72 MGD with a cumulative total diversion costs of these projects will be reimbursed by the of 378 million gallons (MG). The diversion flows OCWD. The Final Expansion of the GWRS is experienced a 71 MG increase over 2015-16, expected to be online in 2023. primarily due to a 91 MG contribution from the Peters Canyon Diversion which went on-line in August Fiscal Policies 2016. At the current operations and maintenance Included within Section 3 - Pages 1 through 8 is a cost per million gallons (CMG) of$1,756 (assuming listing of the District's Board Adopted Fiscal Policies. BOD at 20 mg/L and TSS at 50 mg/L), the cost for treating the 2016-17 combined urban runoff flows is These fiscal policies were established purpose of: estimated at$663,367. • sustaining a financially viable Sanitation District; • having the flexibility to adapt to local and regional At current flow projections, the District's cost for the economic changes; and 2017-18 urban runoff treatment increases to . maintaining and enhancing sound fiscal condition $909,930 based on$1,777 CMG.The addition of the of the District. Delhi Channel Diversion flows could boost the overall cost to $1,283,931 in 2018-19 based on Included within the District's fiscal policies are $1,842 CMG, and $1,910,770 in 2019-20 based on specific polices for Budgeting, Revenues,Expenses, $1,907 CMG assuming the diversion reaches its full Capital Improvements, Vehicles, Short-term Debt, discharge potential. Long-term Debt, Reserves, Investment, and Accounting,Auditing and Financial Reporting. Groundwater Replenishment System The District has taken a multi-jurisdictional approach GFOA Best Practices and Advisories to planning for capital facilities because many of the Included in the budget within Section 3 - Pages 9 methods for reducing or managing flows involve through 17 is a listing of accounting, auditing, other jurisdictions. One such project is the financial reporting, cash management, budgetary Groundwater Replenishment System (the"GWRS"). and fiscal policy, debt management, retirement and benefit administration, and economic development In March 2001, the District entered into an and compliance planning practices recommended by agreement with the Orange County Water District the Government Finance Officers Association of the (OCWD) to design and construct Phase I of the United States and Canada. Included within this list of GWRS. The capital cost of this Phase was shared best financial practices for state and local equally(50%shares)by each agency.The GWRS is governments is the District's status as to whether we a joint effort by the two agencies to provide reclaimed are in compliance or in progress towards water for replenishment of the Orange County compliance, or whether the practice is applicable to Groundwater Basin and to augment the seawater this agency. Out of the 154 practices identified, the intrusion barrier. The GWRS became operational in District is in compliance with 103,another 43 are not January of 2008 with a production target of considered applicable to the District, and we are in 70,000 acre-feet per year of potablewater. the process of complying with the remaining eight. The GWRS Initial Expansion, funded solely by OCWD, broke ground in January 2012 to increase potable water production to approximately 103,000 acre-feet per year. The GWRS Initial Expansion was completed in June 2015, resulting in purifying 100 percent of the treated wastewater from the District's Fountain Valley Plant No. 1. In 2016, the District and the OCWD completed a $2 million joint study to explore the possibility of using flows from the District's Plant No.2.The study identified an implementation plan to convey Section 2-Page 13 2018-19 & 2019-20 Budget This page was intentionally left blank. Section 2—Page 14 Business Plan The District's Business Plan is intended to be an from the Board of Directors to staff, ratepayers, overarching plan based on sound decision making regulatory agencies, and the general public. that provides direction on the work that the District The Business Plan development process started will take on during the next two-year budget cycle with the goals and direction identified within the and what will be deferred. This Business Plan is the Strategic Plan. Staff from across the agencyfurther underlying foundation for the development of the defined these goals in terms of level of service, District's Budget. business risk exposure, capital and operational costs,staffing, and long-term financial impacts. The During the process of developing the Business Plan, Business Plan identifies the required resources and the District's Executive Management Team reviewed prioritizes projects and goals,with recommendations the proposed work for the upcoming year, balanced for which goals should go forward for inclusion in the it with the staffing and funding resources needed and District budget, and which should be deferred or either approved the plan or made reductions. dropped from consideration. Reductions in work or resource commitment for the coming year will be considered in light of the Level of Strategic Goals Service that the agency is committed to and Over the next two years, the District will begin and appropriate levels of risk. complete many activities central to the goals of the organization. In December2017,the District updated Updates to the Business Plan are performed on an the Five-Year Strategic Plan and, as part of the on-going basis, to be developed ahead of the bi- strategic planning process, reaffirmed the following annual budgeting process, and has a five-year goals: horizon. Completion of the Odor Control Master Plan; Each year, it is staffs intent to build upon the foundation of the previous Business Plan and to • Development of Future Biosolids Management make each succeeding one more detailed and Options; comprehensive. Elements included in the Business . Research new energy efficiency and conversion Plan for this two-year budget includes: (1) the technologies; Business Planning Process; (2) Strategic Goals, including the limeframe, milestones, and resources • Complete the transfer of 174 miles of local required for the completion of each step; (3) sewers to a local agency; performance results pertaining to the Current and . Determine partnerships, needs, strategies, Projected Key Performance Indicators (Level of Services); (4) business accountability performance benefits and costs associated with recycling of objectives and measures, that are aligned with the Plant No. 2 effluent water;and updated Five-Year Strategic Plan(these are detailed • Workforce planning and development to ensure for each division within the departments in Section 6 that the right people with the right skills and of this document); (5) Two-Year Staffing Plan; (6) abilities, are in the right place, at the right time. Financial Model Update; (7) Risk Assessment & Five of these goals were completed and one is Mitigation Analysis; and (6) 2015-17 Asset ongoing. The District is in the midst of updating the Management Plan Update. Five-Year Strategic Plan. The new plan will be Business Plan Process adopted by the Board of Directors in November The framework for the Business Plan is developed 2016. as part of the process of updating the Five-Year Level of Service Strategic Plan. The process for updating the In 2005, the Orange County Sanitation District first Strategic Plan requires the assistance from all levels developed a summary of the District's present and of the organization,and includes updating the Mission future Levels of Service requirements as part of its Statement, Vision Statement and Core Values; and Asset Management Program. These Levels of addresses the major objectives and critical Services were further developed with the Business challenges facing the District now, in the next five- Plan along with measurable outcomes, or key years,and further into the future. This Strategic Plan performance indicators,that the District is committed also lays down the foundation for the development of to meeting. This Business Plan documents that the the Business Plan as it addresses critical operations Levels of Service provided by the District will and construction issues, financial and budgeting increase significantly, requiring $2.4 billion in challenges, and gives a clear and concise direction Section 2-Page 15 2018-19 & 2019-20 Budget identifiable capital improvements and millions in Staff has focused on the reallocation of existing increased maintenance and operations costs over resources in order to balance the needs within the the next ten years. business units of this agency to ensure that core business operations are met, levels of service are No modifications were made to the District's Level of maintained, and that strategic initiative elements are Service as a result of the December 2017 Five-Year accomplished. Strategic Plan update. Levels of service have been identified for the following goals: The proposed two-year staffing plan contains a significant level of analysis on how existing • Providing Exceptional Customer Service. resources can be utilized in consideration of the • Protecting the Public Health and the increased demands placed on this agency by Environment. secondary treatment standards and in support of the $2.7 billion capital improvement program over the • Managing and Protecting the Public's Funds. next ten years without increasing staffing levels. A detailed breakdown on the proposed reallocation of • Stakeholder Understanding and Support. FTEs can be found within the Appendix section of • Organizational Effectiveness. this budget. Financial Model Update These existing Levels of Service targets are currently The District's most recent regional rate study was under review. completed in December 2017 by Carollo Engineers. The purpose of the study was to update sewer Staffing Plan service rates and to equitably distribute costs among A comprehensive review was completed on the utility customers and to support the District's regional District's staffing levels for the next two fiscal years. rate structure over a five-year period from FY 2018- This undertaking began with a review of the District's 19 through FY 2022-23. Previously, the District had vision, mission, goals and objectives as part of the completed regional rate studies in 2013,2008, 2006, development of the Five-Year Strategic Plan. 2002 and 1999. The following three drivers necessitated that a rate study be completed in 2017, Authorized FTE Staffing and be incorporated into the Business Plan: 6W 1. The Necessity of Updating the Regional 600 Sewer Service Fee and the Net Cost of 640 637 636 Service Methodology for Industrial Rates - The District provides regional sewage 630 collection, treatment, and disposal services to ago approximately 550,000 customers located in central and northwest Orange County and 810 collects fees for these services through a special assessment on the Orange County soo property tax bill. In addition, the District also 2a 7 2011-12 201e-1e maintains, repairs, and replaces the local This analysis included identification and sewers for approximately 17,000 of the above development of over 100 business units in the 550,000. High strength dischargers,or industrial District with discreet duties and responsibilities. customers, pay sewer fees based upon a net cost of service. A rate study was required to Based on the needs of the agency over time,the total determine the equitable rates for these three FTE requirement has declined steadily from types of users. 644 authorized FTEs in FY 2006-07 to the proposed 2. Five-Year Proposition 218 Notice - The staffing of 636 FTEs over the next two fiscal years. District's last California Proposition 218 Notice Staffing levels are proposed at minimum levels that are necessary to support the operation and notifying rate payers of potential sewer rate maintenance of newly constructed secondary increases over the past five-years had expired treatment facilities in an efficient manner to meet all and a new 5-year Proposition 218 Notice compliance requirements. approved by the Board and the justification of the new sewer service fee rates over the next Section 2-Page 16 Business Plan five years needed to be supported by an Based on the CFCC portion of the rate study in 2017, updated sewer rate study. CFCC and Supplemental CFCC fees are as follows for FY2018-19: Capacity Charge Update - With the adoption of a new Master Plan in 2017, the District needed to CFCC Rates update the methodology for Capacity Charges. Residential Commercial/ In their Financial Model Update Report for the CFCC Industrial CFCC District issued in December of 2017, Carollo Unit Cost-FY 2017-18 $3,855 $2,000 Engineers recommended that the District: Unit Cost-FY 2018-19 $4,228 $2,066 %Increase 9.7% 3.3% • Based on current operational and capital project assumptions, implement annual increases of 1.2%, respectively, over a five-year period ending Supplemental CFCC Rates in FY 2022-23. $/1,000 /Ibs $/Ibs Gallons B.O.D. S.S. • Increase to the unit costs to high strength Unit Cost-FY 2017-18 $1.936 $0.41510 $0.22261 discharges for FY 2018-19 and FY 2019-20, as Unit Cost-FY 2018-19 $1.948 $0.42755 $0.23151 follows: %Increase 0.6% 3.0% 4.0% Industrial Discharge Sewer Rates $/1,000 $/Ibs $/Its. Risk Assessment Analysis Gallons B.O.D. T.S.S. Many leading organizations are formally applying risk management processes to identify and manage Unit Cost-FY 2018-19 $1.43349 $0.65809 $0.71660 risks across many aspects of their business. The Unit Cost-FY 2019-20 $1.48342 $0.66139 $0.73673 formalization of risk management processes is a 18-19%Increase 4.1% 0.5% 2.9% logical step towards increased accountability and 19-20% Increase 3.9% 0.5% 2.8% transparency placed on the Board and District management. All recommendations from the December 2017 Risk assessment and mitigation includes the Financial Model Update Report were approved by following steps: the Board to ensure that the funding required for the additional capacity projects required for new users • Identify and assess strategic and organization- would be available at the time of construction. wide risks facing the District and develop a high- level risk register; Local sewer service fees are based on the Financial . Identify mitigation measures that the District Model Update Report from April 2008 and remain at $108 per single family residence. currently has in place; • Propose additional mitigation measures that the In December of 2017, the 2017 Master Plan was District considers appropriate to manage; and adopted, and because the CFCC fees are based upon the most recently completed capital strategic • Develop an action plan of responsibilities and plan, staff was directed to include capacity charges timeframes for follow-up. in the 2017 rate study. A prior rate study was The Risk Register is a compilation of the various completed in 2010. risks facing the Orange County Sanitation District, as seen and described annually by District It was determined,as a result of the new Master Plan, managers and senior management. Business Risk that future build-out is now projected to be less than is defined as a threat that an event (action or what was anticipated in the previous master plan.The inaction) will adversely affect the District's ability to District's system currently has unused capacity that is achieve its business objectives and execute its available to serve future users. In addition,the District strategies successfully. The District first created the will continue to maintain, improve, and expand the Risk Register in 2006 and subsequently has system with future capital improvements. Based upon updated it at least bi-annually through 2017. this information, a hybrid approach (buy-in and future cost)to capacity charges was recommended. Section 2—Page 17 2018-19 & 2019-20 Budget The Risk Register Update in 2017 identified the OCSD has been striving to more accurately identify following as top risks: medium to long-term capital cash flow requirements. Specifically, the Engineering Planning Division has 1) Earthquake and liquefaction impact facilities been working on developing a 20-year Capital and operations; and Improvement Program (CIP) by creating specific 2) Poor maintenance of assets leads to safety project plans for the rehabilitation, replacement, and reliability issues. improvements and expansion for each treatment Managers and executive management continue to plant or collections area. review risks identified in the Risk Register and This medium to long-term planning is important for implement various ways to address those that might several reasons. By moving away from narrowly impact OCSD. Each Risk Register Update contains focused projects to solve individual problems, to solutions proposed by participants for the top risks, more comprehensive projects refurbishing entire and each Risk Register Update also contains a processes, OCSD benefits by having less section recording how OCSD dealt with the risks that operational disruption and more efficient project were spotted in the previous Risk Register Update. delivery, better cash flow estimation, and better operations and maintenance decision-making Asset Management framework.This is a huge undertaking based on the The District is committed to providing services for its number of asset and facilities, but over time the rate payers to reliably meet our regulatory mandates undefined future rehabilitation capital estimates and levels of service approved by the Board of within the 20-year window are expected to be Directors, and will provide these services using drastically reduced and replaced by more specific sustainable engineering principles that result in the estimated capital needs. lowest responsible Iifecycle cost. The District installs, operates, maintains, refurbishes and Complementing the medium- to long-term planning disposes of assets with Iifecycles measured from are the short-term efforts to coordinate maintenance years to decades, so an approach which balances actions that can reduce risks, actively defer the long, medium and short-term needs is necessary. larger refurbishment projects, and reduce asset The District's asset management program has consumption rates to minimize the need for evolved into a comprehensive decision-making replacement of structures and conveyance systems framework that encompasses engineering planning, when projects are executed. The Planning Division design and construction of quality facilities, asset engineers are constantly reviewing their area optimized operation, proper maintenance, and scopes of work, utilizing their criticality and condition planned refurbishment and disposal that will meet information and engineering judgment, to identify the District's changing needs. This coordinated opportunities for operational adjustments or decision-making process will allow the District to maintenance activities that cost effectively extend consistently meet mandated levels of service to the the life of key assets which may allow for deferral of rate payers at the lowest Iifecycle cost. the larger overall project. This may be a targeted equipment replacement or pipeline repair that is The District's Asset Management Plan focuses on more urgent than the need of the overall facility. the long-term planning of maintenance and capital These engineers may also identify opportunities to improvement projects to ensure the proper rate reduce asset consumption through coating systems, structure is in place to support sustainable atmosphere improvements or small structure repairs operations and to prioritize condition assessment before major damage is done. These actions can studies based on service life and service conditions. drastically reduce the cost of future projects by These are important starting points and have yielded preventing the need to demolish and replace entire tangible benefits in reduced risk levels and an structures. improved capital planning approach. The implementation of the Maximo Computer The District is committed to continuous improvement Maintenance Management System (CMMS) is an of the process by which it manages the assets and example of an effort to improve OCSD's Asset facilities that are required to reliably deliver its level Register. CMMS Technicians and the Asset of service commitments. The additional resources Engineers continue to work to update the database and individual accountability for specific areas has information including installation date, asset cost, improved, and will continue to improve our capital condition and criticality in the new system. planning, project packaging, project execution and delivery,plant operability and maintenance planning. Section 2-Page 18 Business Plan The average age and value of the assets the District value represents the cost in 2018 dollars to owns is increasing steadily overtime,the latent asset completely rebuild all the assets to a new condition. replacement obligation is rising, and as a The depreciated value is the book value of the assets consequence, the District needs to plan for based on their age, which is a prediction of their decreased capital projects for expansion and current condition. increased renewal expenditures in the future relative to past expenditure levels.Additional focus will need Valuation Plants Collections Total to be given to ensuring that appropriate operation Replacement $7.28 $3.56 $10.84 and maintenance strategies are being applied that Value(in billions) consider the different ages of assets being Depreciated $2.88 $0.76 $3.64 maintained. Value(in billions) Asset Valuation Planned CIP Outlays The replacement valuation for all of the District's The chart below shows the 20-year net CIP outlay assets has been updated in 2018 as part of the 2017 which includes current and projected future Capital Facilities Master Plan project. The table below Improvement Program projects. presents the current replacement and depreciated values of the District's assets. The replacement 20 YEAR CIP OUTLAY $450 $400 $350 $300 $250 `o $200 $150 $100 $50 $0 •1b .t•1 .y4 .t9 5e ,5'1 �ti Mb ,5b .jh ,56 ■CIP(less savings/deferrals) •Future Rehab&Replacement Section 2—Page 19 2018-19 & 2019-20 Budget Infrastructure Asset Management • Cleaning of 99 percent of trouble spot and Through asset management, the District's capital scheduled inverted siphon work. improvement and maintenance programs work collaboratively to ensure that our mission is delivered • Managed odor control chemical expenses to reliably and that our facilities are managed in away 103 percent of budget. that minimizes overall life cycle costs. The following emergency preparedness efforts were Below is a status of the fiscal year 2017-18 also completed: infrastructure maintenance activities and planned activities for fiscal year 2018-19. • Developed bypass pumping plans for all pump stations. Collection System: OCSD's collection system consists of 396 miles of • Purchased 12" hose and trailer to use with large sewers. The maintenance of all regional sewers is pumps. actively managed but only 230 miles of regional sewers are on a cleaning schedule. The largest . Completed analysis and update of back-up sewers are typically self-cleaning due to higher flows generator requirements for pump stations. and locations closer to the treatment plants. The regional collections system also includes 15 pump Total costs: $10,032,760 stations and three metering locations. Typical collection system maintenance activities consist of: The following activities and goals are planned for televising, inspecting, and cleaning sewer lines; fiscal year 2018-19: operating, maintaining and cleaning pump stations with associated facilities; and chemical conditioning . Clean 65 miles of regional sewer lines on a of the sewage to reduce corrosion and control odors. cleaning schedule. Maintenance activities are based on established levels of service to ensure compliance with our . CCTV video inspection of 500 regional system Sewer System Management Plan, reducing spills, manholes. increasing reliability and safety, and ensuring that our facilities are managed,operated and maintained , CCN video inspection of 80 miles of regional to minimize overall life cycle costs and need for sewer pipeline. repairs.The cleaning frequencies are based on data from pipe inspections, closed-circuit television , Complete at least 90 percent of scheduled pump (CCTV) work, historical records, and industry best practices. The planned activities help extend the station preventative maintenance work. useful life of the assets and minimize nuisance odors. • Clean 90 percent of trouble spot and scheduled inverted siphon work. During fiscal year 2017-18 the following . Manage odor control chemical expenditures to maintenance activities are projected to be between 95-100 percent of budget. completed: • Cleaning of 93 miles of regional sewer lines on a • Complete year one of a two-year effort to reduce cleaning schedule. potential arc flash by adjusting and testing protective relays and breakers • CCTV video inspection of 170 regional system , purchase of larger generators for pump stations manholes. for emergency preparedness, based on analysis . CCTV video inspection of 75 miles of regional completed in the previous year sewer pipeline. . Purchase of emergency preparedness bypass . 91 percent of scheduled pump station Pumping hardware with installation of in-place preventative maintenance work. storage,set up documentation and staff training Estimated total costs: $11,243,960 Section 2-Page 20 Business Plan Collection System Capital Improvement Protects construction anticipated for 2020.The budget for this The District's collections projects go through an project is$54 million. intensive planning and design process to ensure all elements of the project are thoroughly assessed. In Newport Beach, Bay Bridge Pump Station These projects typically renew or replace aging Replacement (Project No. 5-67) will replace the pipelines and pump stations, upgrade facilities to existing Bay Bridge pump station to meet current meet current codes and standards, and in some building, electrical, and safety codes, and to meet instances, increase flow capacity due to growth in projected rapacity needs. The existing force mains localized portion of our service area. We are will also be replaced and upsized, and will extend currently planning and executing a comprehensive from the new pump station location,across the Back- program to renew our collection system. One of the Bay channel, to connect with the existing pipes near larger projects is the Newhope-Placentia Trunk the Dover Ave and Pacific Coast Highway Replacement(Project No.2-72)which is taking place intersection. The project is currently in the design in the cities of Fullerton and Anaheim.Seven miles of phase. The construction of both the force mains and sewer along State College Boulevard, from Yorba pump station is anticipated to begin in 2020. The Linda Boulevard to Orangewood Avenue, will be budget for this project is $64 million. upsized to allow abandonment of the Yorba Linda Pump Station which diverts reclaimable wastewater Raclamatinn Plant No- 1; to the Santa Ana River Interceptor, which cannot be Flow from Reclamation Plant No. 1 is delivered to the reclaimed at the Orange County Water District's Orange County Water District (OCWD)for recycling (OCWD's) Groundwater Replenishment System via the Ground Water Replenishment System (GWRS). The project will also include modifications (GWRS). During 2015 the expanded plant came on to existing diversion structures to add flexibility to line, with capacity to deliver an additional 30 MGD divert other reclaimable flow. This project also for a total of 130 MGD. provides adequate capacityfor future development, minimizing the risk of sewer spills in the future. The maintenance organization continues to Construction of the first phase of the project was implement industry best practices for safety, completed in fall 2017. The second phase of the effectiveness and reliability. During fiscal year 2017- project is scheduled to begin in summer 2018. The 18, several major initiatives were completed to project has a budget of$112 million. enhance plant safety and reliability. These included a comprehensive lubrication assessment and Another large-scale project is the Rehabilitation of preparation of enhanced Job Plans for low voltage the Western Regional Sewers (Project No. 3-64) Motor Control Centers (MCCs) and switch gear to which covers approximately 17 miles of sewers in the comply with NFPA70 standards. An analysis of our cities of Anaheim, Buena Park, Cypress, La Palma, current pumping system at the Steve Anderson Lift Los Alamitos, Seal Beach and unincorporated areas Station (SALS) was also conducted, resulting in an of the County of Orange referred to as Rossmoor. improvement over current technology by converting This large project is required to rehabilitate or to close-coupled pump motors. Throughout the replace pipes that were installed 45 to 55 years ago. Plant, more than 4,600 preventative maintenance The sewers have multiple deficiencies which have activities were performed. In addition to these allowed the intrusion of ground water.In some cases, routine activities, the following maintenance and hard calcium deposits have developed, making the repair activities are projected to be completed in pipe difficult to clean,and may,overtime,impede the fiscal year 2017-18: wastewater flow. Portions of the project will be Replacement of all check valve and jet cell relined and others will be replaced with larger diameter pipelines. Over 150 manholes will be ignitors for three Cal engines. replaced.This project is currently in the design phase with construction anticipated for 2020. This project • Installation of automatic balancing equipment on budget is$202 million. one engine to improve efficiency and reliability The Westminster Boulevard Force Mains • Overhaul of one cake conveyor and one belt Replacement (Project No. 3-62) will replace two press for biosolids dewatering. existing force mains that run three miles along Westminster Boulevard from the Seal Beach • Major service on two blowers that service the Boulevard to Rancho Road in the City of Activated Sludge secondary treatment facility. Westminster. The project is in design, with Section 2-Page 21 2018-19 & 2019-20 Budget • Major maintenance service of ten primary • Major maintenance service of ten primary clarifiers for increased reliability. clarifiers for increased reliability. • Replacement of the vane bushings on three of • Cleaning and valve replacement of two the Activated Sludge blowers. digesters. • Cleaning and valve replacement of three Total estimated costs: $10,186,050 digesters. Reclamation Plant No. 1 CIP Projects: • Overhaul of one digester gas compressor These projects are intended to rehabilitate or reconstruct major components of our treatment Total costs: $8,586,560 process to ensure compliance with regulatory permits, enhance water recycling and safety. During fiscal year 2018-19, there are more than 5,000 preventative maintenance activities that are One of the largest projects currently being designed scheduled to be completed at Plant No.l. This is the Headwork Rehabilitation at Plant No. 1 (Project includes typical time or cycle based maintenance No. P11-105).The facility is almost 30 years old, so a tasks such as adjustments and mechanical comprehensive refurbishment is required in order to alignments, cleaning and tightening of electrical extend the life of the facility. The project will equipment, calibration of sensors and meters, rehabilitate systems including the metering and changing of lubricants and filters, exercising diversion structure, the bar screen building, the bin equipment, rebuilds and regulatory testing. While loading building, the main sewage pump station,the completing these activities, we will simultaneously grit basins, the primary influent channels, the conduct an optimization study of all preventative headworks odor control scrubbers, and electrical maintenance tasks to ensure assets are effectively power distribution and control systems. Thisproject maintained at proper intervals and lower cost. In will also replace the emergency pumping capacity addition, staff will be utilizing predictive technologies that has been provided by the original headworks such as vibration analysis to measure imbalance in pumping system dating back to the 1950s. The total rotating equipment, thermogmphy to measure budgeted cost for this project is$370 million. excessive heat, oil analysis to predict failure of lubricants, and ultrasonic to detect leaks as well as While the Sanitation District generally has adequate deterioration and short-circuiting in electrical hydraulic treatment capacity, additional solids equipment. We will also develop and initiate handling capacity is needed.The Sludge Dewatering implementation of the lubrication program based on and Odor Control Project(No. P1-101) is necessary the assessment completed in the previous year. to support the need for more capacity to thicken and Other major planned activities for fiscal year 2018-19 dewater sludge due to the conversion to full at Reclamation Plant No. 1 include: 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 • Major overhaul of one CenGen Engine. such will be replaced with a new and improved facility that will increase cake dryness which will • Meet stricter NFPA110 standards for servicing reduce biosolids management cost. This will in turn standby and mobile generators. improve sludge thickening to optimize the use of existing digesters thus eliminating the need to • Complete year one of a two-year effort to reduce construct new digesters.The project will also help us potential arc flash by adjusting and testing meetour level of service goal by reducing odors.The protective relays and breakers. project budget is$199.5 million. • Assess underground cable condition to ensure A project closely tied to the solids dewaterng facility reliability of the electrical distribution network. is the Digester Rehabilitation (Project No. P11-100) which is rehabilitating 12 digesters. The project will • Major service on one blower that services the refurbish aged storage tanks, as well as handle the Activated Sludge secondary treatment facility. increased volume of solids more efficiently and with greater reliability. The sludge pumping, heating, structural, mechanical, and electrical and control Section 2-Page 22 Business Plan systems will all be rehabilitated which will increase implementation of the lubrication program based on the quality of the sludge production. By rehabilitating the assessment completed in the previous year. our existing digesters, we reduce the risk of failure Other major planned activities at Treatment and extend the life of the assets, minimizing future Plant No. 2 for fiscal year 2018-19 include: expenditures.The total project budget is$66 million. Treatment Plant No. 2: • Overhaul of one CenGen Engine. All flows entering Treatment Plant No. 2 are treated • Cleaning and valve replacement of four to full secondary standards and then discharged four digesters. miles offshore through our ocean discharge outfall. Plant No. 2 has also implemented the same • Major repair of two primary clarifiers and six maintenance best practices implemented at Plant secondary clarifiers for increased reliability. No. 1 to ensure consistency across OCSD in the areas of safety and asset reliability. Plant No. 2 will • Meet stricter NFPA110 standards for servicing also benefit from the lubrication assessment standby and mobile generators. conducted during fiscal year 2017-18 as well as the enhanced job plans for MCCs and switch gear to • Complete year one of a two-year effort to reduce comply with NFPA70 standards. In addition to more potential arc flash by adjusting and testing than 4,700 preventative maintenance activities protective relays and breakers. completed during fiscal year 2017-18, the following major activities are projected to be completed: . Conduct medium voltage cable assessment. • Cleaning and valve replacement of three . Replace one boiler heat exchanger. digesters. . Complete repair of secondary clarifier inlet • Replacement of all check valve and jet cell gales. ignitors for one CenGen engine. • Replace all check valve and jet cell ignitors for • Rehabilitation of one CenGen electrical four CenGen engines. generator. Total estimated costs: $9,766,350 • Installation of automatic balancing equipment on one engine to improve efficiency and reliability Treatment Plant No. 2 CIP Projects: Total costs: $5,898,080 The Primary Treatment Rehabilitation Project (Project No. P2-98) will rehabilitate the primary During fiscal year 2018-19, there are more than clarifiers, influent pipes, construct new primary 5,000 preventative maintenance activities that are effluent pipes,and rehabilitate and upgrade the odor scheduled to be completed at Treatment Plant No.2. control systems.These facilities date back to the late This includes typical time or cycle based 1950s and need seismic and condition based maintenance tasks such as adjustments and upgrades. By replacing old structures and installing mechanical alignments, cleaning and tightening d new systems, we will improve the resiliency of our electrical equipment, calibration of sensors and infrastructure and thus improve our ability to provide meters, changing of lubricants and filters, exercising service.This is anticipated to be a very long duration equipment, rebuilds and regulatory testing. While project because the need to maintain treatment completing these activities, we will simultaneously operations during the project. The total project conduct an optimization study of preventative budget is$245 million. maintenance tasks to ensure assets are effectively Treating 100 percent of our influent to full secondary maintained at proper intervals and lower cost. In treatment standards means there are more solids to addition, staff will be utilizing predictive technologies manage. The Sludge Dewatering and Odor Control such as vibration analysis to measure imbalance in project (Project No. P2-92) is replacing the current rotating equipment, l analysis topphy di measure belt press dewatering system with a centrifuge excessive heat, and oil analysis to predict failure of dewatering facility that will remove a greater amount lubricants. We will also develop and initiate of water from the sludge resulting in reduced Section 2—Page 23 2018-19 & 2019-20 Budget disposal costs for the Sanitation District. This Civil Assets Maintenance Proaram: $90 million project will be in construction through The Civil Assets Maintenance Program (CAMP) 2020. covers proactive and connective maintenance tasks for all OCSD civil assets at all its facilities located at The Headworks Modifications at Plant No. 2 for Plants No. 1 and No.2, as well as all OCSD pump GWRS Final Expansion (Project No. P2-122) will stations and the collections system. CAMP works to support the GWRS Final Expansion by separating ensure that OCSD civil assets meet design life non-reclaimable flows from those that can be expectancy and will complement the existing transferred to OCWD for reclamation. The project maintenance programs for mechanical, electrical will include the installation of new gates,replacement and instrumentation maintenance. In addition, the of three existing influent pumps at the existing program ensures the assessment of nearly all Headworks, and modification of waste sidestream structures to achieve OCSD's primary mission of pumping and piping. Costs associated with this protecting the public health and environment. This project will be reimbursed by OCWD. includes a valve and gate- exercising program comprised of more than 264 preventive maintenance As we make improvements throughout the plant, it is tasks for more than 1,650 valves and gates in both imperative we pay attention to our ocean outfall plants and the collections system. Besides systems. Many components of the system such as developing in-house capabilities to better monitor the pipeline assets have already been addressed,so and maintain these assets, the program entails now we turn our attention to the pumping systems. utilizing consultants and contractors for program Project No. J-117, the Ocean Outfall System development and implementation. Repairs of the Rehabilitation, will rehabilitate the Ocean Outfall assets are planned and scheduled based on Booster Station and the 84-inch and 120-inch condition and criticality, and performed by staff or interplant effluent lines between Plant No. 1 and contracted services. CAMP will also implement an Plant No. 2. The pump station work includes equipment rotation program to ensure that rehabilitation of the mechanical, electrical, and civil equipment wear is predictable. systems which will extend the life of the facility and increase the efficiency of the system. In addition, a For fiscal year 2018-19, 45 planned entries and new Low Flow Pump Station will be added due to our inspections of civil structures are planned,which will increased water recycling rates, which will reduce include minor repairs of identified deficiencies. our outfall flows below the minimum capacity of the existing effluent pumps. This project will also Estimated total costs: $3,228,800 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. 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 No. 1 and and Plant No. 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. Section 2-Page 24 Business Plan This page was intentionally left blank. Section 2—Page 25 2018-19 & 2019-20 Budget FY 16-17 Level of Results Service Target Protecting Public Health Protecting public health and the environment utilizing all practical and effective means for wastewater, energy, and solids resource recovery. Accept dry weather runoff diversion flows without imposing fees. 0.72 MGD Up to 10 MGD Air emissions health risk to community and employees, per one 9 <10 million people(for each treatment plant). Notices of violation (NOV)with air, land, and water permits 0 0 Respond to collection system spills within 1 hour 100% 100% Sanitary sewer spills per 100 miles 2.5 <2.1 Contain sanitary sewer spills within 5 hours 100% 100% Meet secondary treatment standards BOD 4.8 mg/L BOD 25 mg/L TSS 5.3 mg/L TSS 30 mg/L Frequency of unplanned use of emergency one-mile (78-inch 0 0 diameter)outfall (per year during dry weather). Tons of biosolids to landfill through 2017 Peak Production period. 97.2 100 Compliance with core industrial pretreatment requirements 99% 100% Stakeholder Understanding and Support Communicating the District's mission and strategies with those we serve and all other stakeholders. Meet GWRS specification requirements for Plant No. 1 secondary 2.5 NTU 5 NTU effluent Provide specification effluent available to the Groundwater 100% 100% Replenishment System to maximize production of purified water. Managing and Protecting the Public Funds Continually seeking efficiencies to ensure that the public's money is wisely spent. Annual user fees sufficient to cover all O&M Requirements 100% 100% Actual collection, treatment, and disposal costs per million gallons 9.4% under s 10% of budget Maintain AAA Bond Rating 100% 100% Section 2-Page 26 Business Plan FY 16-17 Level of Results Service Target Providing Exceptional Customer Service Providing reliable, responsive and affordable services in line with customer needs and expectations. Treatment plants odor complaint response within 1 hour. 100% 100% Collection system odor complaint response within 1 working day. 100% 100% Number of odor complaints: 10 0 • Reclamation Plant No. 1 • Treatment Plant No. 2 11 0 • Collection System 25 12 'Under normal operating conditions Respond to public complaints or inquiries regarding construction projects within 1 day. 100% 100% New construction permits processed within 1 working day. 100% 100% Respond to all biosolids contractor violations within a week of violation notice. 100% 100% Organizational Effectiveness Creating the best possible workforce in terms of safety, productivity, customer service, and training. Employee injury incident rate-per 100 employees 4.0 <4.4 Industry Average Meet mandatory OSHA training requirements 100% >95% Hours worked since last lost work day 53,504 >1,000,000 Achieve annual agency target of days away from work, days of restricted 2.9 <2.5 work activity, or job transferred as a result of a work-related injury or illness Training hours per employee 47.5 45 per year Section 2-Page 27 2018-19 & 2019-20 Budget Strategic Goals for FY 2018.19 8 FY 2019.20 Goals Strategic Importance Desired Outcome Status 1. Develop Biosolids Contract to dispose of Develop a mid and long- The Siosolids Master Management one-half of total Bio- term strategy for bio- Plan was completed in Options solids expires in 2016. solids disposal prior to May. the expiration of current contracts. 2. Update Odor Master Results of process Limiting offsite odor The Odor Master Plan Plan performance and new impacts in an efficient was completed in May odor measurement and cost-effective 2017. technologies compel manner. the review of current standards. 3. Review the Utilization The District is a Maximize energy Staff researched and of Renewable significant consumer of efficiency and conversion studied opportunities and Energy in Waste- energy and seeks to from organic sludge to presented water Management minimize energy usage electricity, gas, and recommendations to the and maximize the useful heat. Board of Directors in conversion of sludge to April 2017. energy. 4. Development Future Water demand in ser- Develop a plan for the A plan to optimize Water Recycling vice area is projected to best utilization of Plant Plant No.2 effluent Options increase 16 percent by No.2 effluent water water was developed 2035.About one-half of currently discharged out and is in the design District treated waste- to the ocean. stage. water is lost to ocean disposal. 5.Transfer of Local District's core business Obtain Board support OCSD completed the Sewers to is wastewater treatment for transferring the transfer of the local Member Cities and disposal,and ownership of all local sewers in Service Area 7 and Sewer maintaining sewer pipes sewers to the member to the East Orange Agencies of the regional collection cities and sewer County Water District in system. agencies. August 2016. 6.Workforce Planning Ensure that the right Integrate WFPD efforts Ongoing. &Development people with the right to ensure workforce (WFPD) skills and abilities, are in capabilities match work the right place, at the required to meet the right time. mission and levels of service. Section 2-Page 28 Long-Term Planning OCSD Long-Term Planning Type of Planning Description of Process Budget Impacts Process Update of the Maintaining a rolling 5-year In November 2007,the The levels of service Five-Year comprehensive strategic District's Board approved a identified within the 2015 Strategic Plan plan that addresses the 5-Year Strategic Plan that Strategic Plan Update were sanitation health and safety updated the District's the foundation for the needs of the 2.6 million Mission,Vision, Levels of development of this two- people we serve. Services, and Business year budget. Plan.An update to this plan is currently in development and will be adopted by the Board of Directors in November 2018. Capital Master Develop a 20-year capital In December 2017,the The 2018 CIP Validation, Planning improvement projects(CIP) Board approved a new based on the 2017 Master Program to meet the Facilities Master Plan that Plan, includes an overall regulatory, environmental, lays out a capital program CIP budget of over$5.5 health, and safety needs of to deliver and maintain the billion for active and future. a growing population. levels of service desired by the Board of Directors. Biosolids Aggressively pursue The study of biosolids Biosolids production will Management biosolid disposal options will include offsite decrease by one-third when alternatives following the an onsite facility, and new IRWD discontinues sending expiration of the 2016-17 and established us biosolids and centrifuges disposal contract. technologies. come online. Groundwater Continue partnership with Maximize the use of The District will continue Replenishment the Orange County Water treated effluent for water executing CIP projects to System District(OCWD)in support recycling by sending support the Final Expansion (GWRS) of the GWRS. secondary effluent from of the GWRS. Plant No. 2 to the GWRS. Section 2-Page 29 2018-19 & 2019-20 Budget Background information and Description of The District operates under an ocean discharge Services: permit issued by the USEPA and the Santa Ana Regional Water Quality Control Board. This permit The Orange County Sanitation District(the"District") was last issued in July 2012 and has been is a public agency that operates one of the largest administratively extended during the renewal wastewater facilities in the United States of America. process.To maintain the District's National Pollutant Originally formed in 1964 pursuant to the joint Discharge Elimination System (NPDES) operating powers provision under the County Sanitation permit, the District's plants must meet strict District Act of the California Health and Safety Code, conditions setjointly by the regulators. the District then consisted of independent special districts responsible for wastewater collection within The District operates under an ocean discharge their own geographical boundaries. These districts permit issued by the USEPA and the Santa Ana were co-participants in a Joint Agreement to provide Regional Water Quality Control Board. This permit for the joint construction, ownership, and operation was last issued in July 2012 and is noticed for re- of the District's Joint Facilities for the treatment and adoption on December 15, 2017. To maintain the recycling of wastewater. District's National Pollutant Discharge Elimination System (NPDES) operating permit, the District's On July 1, 1998, the nine individual existing districts plants must meet strict conditions set jointly by the requested to be consolidated into one district by USEPA and the CRWQCB. resolution of the Board of Supervisors of the County of Orange and special legislation. The District maintains and operates a large system of trunk sewers and pumping stations in addition to the The District is governed by a Board of Directors two modern treatment plants. The plants use made up of mayors or members of city councils, chemical, physical and biological processes to directors of independent special districts, and one produce a high-quality effluent. Chemicals used are member from the County Board of Supervisors. A either environmentally neutral or biodegradable. variety of board committees, made up of members of the Board of Directors, consider topics for action by The treated effluent from the Huntington Beach plant the Board and make recommendations to the Board. is pumped through a five-mile, 10-foot diameter ocean outfall pipe. The outfall has a one- mile long The District is responsible for collecting,treating,and diffuser section that discharges treated water safely disposing of approximately 185 million gallons through more than 500 portholes four miles off shore. of wastewater each day for an area covering 479 square miles in metropolitan (central and In January 2008, the Orange County Water District northwestern)Orange County, The District's service (OCWD) and the District completed Phase I of the area includes approximately 2.6 million residents Groundwater Replenishment System,ajointproject by and businesses, or approximately 81 percent of the the two agencies to provide reclaimed water for County's total population. percolation into the groundwater basin from most of the secondary effluent pumped from the Fountain Professional staff of 627 full-time equivalent Valley plant, or approximately 92,300 acre-feel per employees supports the District's around-the-clock year. operation. Staff is organized into six departments, including the General Manager's Office, Human In January 2012, the OCWD completed Phase II of Resources,Administration, Environmental Services, the Groundwater Replenishment System (GWRS) Engineering,and Operations and Maintenance. that provided an additional 33,000 acre-feet per year of reclaimed water;resulting in the purification of 100 As working environmentalists, the District's staff is percent of the treated wastewater produced at the regulated by many agencies, including the United Fountain Valley plant. States Environmental Protection Agency (USEPA), the California Regional Water Quality Control Board (CRWQCB), the CalRecycle, the Califomia Air Resource Board, and the South Coast Air Quality Management District(SCAQMD). Section 2—Page 30 Orange County at a Glance Community Profile of the County of Orange of job growth in the U.S. as well as in California.This The County of Orange is bordered on the north by is all the more noteworthy considering the fact that Los Angeles and San Bernardino counties, on the Orange County's job growth was higher than the east by Riverside County, on the southeast by San state and nation in 2015. By 2016, the county fell Diego County,and on the west and southwest by the below California but still outpaced the U.S. by a Pacific Ocean. Approximately 42 miles of ocean considerable margin. Examination of the job data shoreline provide many beaches, marinas and other generated using the household rather than payroll recreational areas for use by residents and visitors. survey shows an even steeper drop-off, actually falling into negative terrain with a decrease of 0.4 The climate in the County is mild, with an average percent. The relatively sharp drop in Orange rainfall of 13 inches. The mean temperature ranges County's job growth is broad-based and not a result from a minimum of 48 degrees to a maximum of 76 of any major downward shifts in particular job sectors degrees. Chapman notes that area job growth does not seem The County has become a tourist center in Southern to be related to unemployment and that the other California by offering a broad spectrum of recreational metro areas in California exhibited significantly faster opportunities that is enhanced by the mild climate. job growth than Orange County. In September 2017, Along the shoreline are five state beaches and parks, Orange County had the lowest job growth rate five municipal beaches and five county beaches. among the five largest metropolitan areas in the state There are two small-craft docking facilities in Newport at 0.4 percent and the third lowest unemployment Harbor,one located in Sunset Beach and another in rate at 3.6 percent. Chapman's 2018 forecast for Dana Point. Orange County's job growth shows continued weakness.On the positive side,the forecast calls for Other major recreational and tourist facilities include an end to the downward slide with job growth picking Disneyland, California Adventure, Knott's Berry up from 0.6 percent in 2017 to 0.8 percent in 2018. Farm and Soak City, Mission San Juan Capistrano, the Anaheim Convention Center, and the Art Colony With no recessionary signals in sight, Chapman is at Laguna Beach with its annual art festival. Also confident that the current economic expansion will located within the County is Anaheim Stadium, home continue through 2018. Increases, however, in of the Los Angeles Angels of Anaheim of Major private debt and continuing Fed tightening will League Baseball,and the Honda Center,home of the restrain consumer and investment spending.And Anaheim Ducks of the National Hockey League. while the global economy is probably in its best overall shape since the recovery began, China's Economic Outlook growth will be constrained as a result of its rapidly According to the Califomia Employment increasing private debt. Chapman's forecast calls Development Department (EDD), Orange County for a continuation of relatively strong production generated an increase of approximately 0.9 percent levels of 1.2 million housing starts nation-wide in in payroll jobs from March 2017 to March 2018. 2018.This roughly matches the cyclical highs During this same time period, unemployment in reached in 2017. Orange County decreased to 2.8 percent from 3.7 percent while the unemployment in California as a The drop in Orange County residential permits from whole decreased to 4.2 percent from 5.2 percent. 12,134 in 2016 to 10,455 in 2017 masks the fact that single-family permits increased 13.8 percent while According to Chapman University's December 2017 multi-family dropped sharply with a decline of 26.4 Economic Forecast, after experiencing sharper job percent. In 2018, forecasted permit activity losses than the U.S. during the Great Recession, increases 10.8 percent to 11,585 units. In contrast California caught up by the end of 2013 and has to 2017, multi-family permits will show more strength since outpaced the national economy. Payroll jobs in than single-family. California are 8.6 percent higher at the end of 2017 than at the end of 2007, when the recession started. Housing appreciation is forecasted to decline from After recovering from a deeper trough during the 6.4 percent in 2017 to 5.2 percent in 2018. Higher Great Recession, Orange County mirrored mortgage rates in 2018 will reduce housing California's job growth trajectory. That is, until 2017, affordability. But offsetting that is a tight supply of whenjob growth in the county of 0.6 percent dropped unsold housing that is keeping upward pressure on sharply below California's 1.7 percent rateofgrowth. prices. On a more positive outlook, Chapman Closer examination of Orange County's nosedive in forecasts personnel income in Orange County to job growth shows that in 2017 it fell well off the pace grow 3.4 percent in 2018. Section 2-Page 31 2018-19 & 2019-20 Budget This page was intentionally left blank. Section 2—Page 32 POLICIES & PRACTICES SECTION 3 Fiscal Policy In Fiscal Policy Statement Completed Progress Comments General Financial Goals To maintain a financially viable Sanitation District that can maintain an appropriate level of wastewater treatment ✓ services. To maintain financial Flexibility by adapting to local and ✓ regional economic changes. To maintain and enhance the sound fiscal condition of the ✓ District. To ensure that the value added by every program and activity within the District is proportional to its cost; and to eliminate ✓ those programs and activities that do not contribute to the District's mission. To provide training opportunities to the greatest extent possible for available jobs within the organization for those ✓ employees working in programs or activities that have been reduced or eliminated. To provide employees with cross-training opportunities in ✓ order to achieve multi-tasking capabilities. Operating Budget Policies The District will adopt a balanced budget by June 30 of each ✓ year. The budget will be used as a fiscal control device as well as a ✓ financial plan. Budget preparation and monitoring will be performed by each division within the District,the organizational level of ✓ accountability and control. The Director of Finance&Administrative Service will prepare ✓ a budget calendar no later than January of each year. An annual operating budget will be developed by conservatively projecting revenues and expenditures for the ✓ current and forthcoming fiscal years. During the annual budget development process, the existing programs will be thoroughly examined to assure removal or ✓ reduction of any services or programs that could be eliminated or reduced in cost. Current operating revenues will be sufficient to support current ✓ operating expenditures. Section 3-Page 1 2018-19 & 2019-20 Budget In Fiscal Policy Statement Completed Progress Comments Annual budgets including reserves will provide for adequate ✓ design, construction, maintenance and replacement of District capital facilities and equipment. The District will maintain all physical assets at a level ✓ adequate to protect the District's capital investment and to minimize future maintenance and replacement costs. The District will project equipment replacement and maintenance needs for the next five years and will update this ✓ projection each year. From this projection a maintenance and replacement schedule will be developed and followed. The District will avoid budgetary and accounting procedures ✓ that balance the current budget at the expense of future budgets. The District will forecast its expenditures and revenues for ✓ each of the next five years and will update this forecast at least annually. Revenue Policies Because revenues are sensitive to both local and regional ✓ economic conditions, revenue estimates adopted by the Board of Directors must be conservative. Staff will estimate annual revenues by an objective, analytical ✓ process that utilizes trend,judgmental, and statistical analysis as appropriate. Ad valorem property tax revenues of the District will be ✓ dedicated to debt service. Sewer Service User Fees will be projected for each of the ✓ next ten years and this projection will be updated annually. Expenditure Policies The District will maintain a level of expenditures that provides ✓ for the health, safety and welfare of the residents of the community. The District will set fees and user charges at a level that fully supports the total direct and indirect costs of operations, ✓ capital improvements, and debt service requirements not covered by reserves. Section 3-Page 2 Fiscal Policy In Fiscal Policy Statement Completed Progress Comments Capital Improvement Budget Policies The District will make all capital improvements in accordance with an adopted and funded capital improvement program. ✓ The adopted capital improvement program will be based on need. The District will develop an annual five-year plan for capital Master Plan improvements, including design, development, ✓ projects needs implementation, and operating and maintenance costs. through 2050. All capital improvement projects approved in the annual operating budget are approved at the budgeted amounts through the completion of the project. The Board of Directors ✓ approves both the individual project total budget and the projected cash outlays for all capital improvement projects for the current fiscal year. Staff will identify the estimated costs, potential funding sources and project schedule for each capital project proposal ✓ before it is submitted to the Board of Directors for approval. Staff will identify the estimated on-going future Operating and Included in Maintenance costs, as well as staffing requirements upon ✓ Asset completion for each capital project proposal before it is Management. submitted to the Board of Directors for approval. The District will use intergovernmental assistance and other outside resources whenever possible to fund capital improvements providing that these improvements are ✓ consistent with the Capital Improvement Plan and the District's priorities, and that the future operating and maintenance costs of these improvements have been included in the budget. Staff will coordinate development of the capital improvement budget with the development of the operating budget. All operations and maintenance resources required to implement ✓ the CIP have been considered and appropriately reflected in the operating budget for the year the CIP is to be implemented. Cost tracking for components of the capital improvement ✓ program will be updated quarterly to ensure project completion against budget and established time lines. Section 3-Page 3 2018-19 & 2019-20 Budget In Fiscal Policy Statement Completed Progress Comments Asset Management Policy In order to provide for the systematic planning, acquisition, deployment, utilization control, and decommissioning of capital assets, the following policies have been established: • The condition, performance, utilization, and cost of assets ✓ will be recorded down to the maintenance managed item component level. • A detailed, planned maintenance program is in place to ✓ ensure that the assets,facilities and systems perform to their design criteria and meet their design lives. • A system is in place to blend planned and unplanned ✓ activity to optimize the cost against the asset performance requirements. • Reliability Centered Maintenance techniques will be used ✓ to optimize the maintenance plans and to identify any design alterations that are economically justified. • Current levels of asset management service in terms of Completed for quantity and quality of service including condition, ✓ critical and high function/size/type, regulatory requirements, reliability, and value assets. repair response times have been determined and documented. • The full economic cost is charged on all asset ✓ management activities. • Asset Management maintains appropriate pricing and ✓ funding strategies that match the needs of the business to ensure sustainability. • Asset Management considers the real growth of the District's service area and the way in which demands for ✓ service will change in the future, including population, unit demand, demographics, changing customer expectations, and changing regulatory requirements. • Monitoring and reporting is performed on the condition, Service levels are performance and functionality of the District's assets ✓ reported quarterly against prescribed service levels and regulatory through the requirements. Strategic Plan reporting. • A condition/function index is linked with customer ✓ Completed expectations at a cost that customers are willing to pay. through the budget process. • Future level of service options available and their ✓ associated costs are constantly analyzed. Section 3-Page 4 Fiscal Policy In Fiscal Policy Statement Completed Progress Comments • An assessment of the relative risks, costs and benefits is ✓ derived for all investments in capital works, maintenance, and operations. • Individual asset management decisions are made only when the cost of all programs has been analyzed and the ✓ funding needs of the whole organization is known together with the knowledge of its impact on rates. • Necessary renewal programs to sustain the existing levels of service and condition of assets, as identified through ✓ the best appropriate process, is approved ahead of new capital works and services. • New capital assets for new works and services are approved only with the commitment of the recurrent ✓ (operations and maintenance)funding necessary to sustain the new works and services. • The financial, social, and environmental aspects of asset ✓ management will be reported on bi-annually. Vehicle Replacement Policy In order to provide safe, reliable transportation appropriate to the work to be performed,the following policies have been established: • The newest vehicles will be used for those purposes ✓ requiring the highest annual mileage. • Vehicles may be replaced when they are 12 years old or ✓ have accumulated 120,000 miles. • A vehicle may be replaced in advance of the above ✓ criteria if it can be reallocated to a low mileage use between the plants. • Electric carts are to be utilized for in-plant use only. ✓ • When available, CNG vehicles or bi-fuel vehicles are to be ✓ utilized within the County(pump station runs,source control inspections, etc). • When available, CNG vehicles or bi-fuel vehicles are to be utilized to travel outside of Orange County(e.g., ✓ Environmental Compliance Monitoring of biosolids application sites, etc). Section 3-Page 5 2018-19 & 2019-20 Budget In Fiscal Policy Statement Completed Progress Comments Short-Term Debt Policies The District may use short-term debt to cover temporary or emergency cash flow shortages. All short-term borrowing will ✓ be subject to Board approval by resolution. The District may utilize Board approved intra-agency loans rather than outside debt instruments to meet short-term cash needs. Intra-agency loans will be permitted only if an analysis of the affected Revenue Areas indicates funds are available ✓ and the use of these funds will not impact current operations. The principal,along with interest at the prevailing rate as established by the District's Treasurer,will be paid to the lending Revenue Area. Long-Term Debt Policies Proceeds from long-term debt will not be used for current on- ✓ going operations. Before any new debt is issued, the impact of debt service ✓ payments on total annual fixed costs will be analyzed. Develop and maintain a board adopted debt policy. ✓ Accumulated Funds &Reserve Policies A cash flow reserve will be established to fund operations, maintenance, and certificates of participation expenses for the first half of the fiscal year, prior to the receipt of the first installment of the property tax allocation and the sewer service user fees which are collected as a separate line item ✓ on the property tax bill. The level of this reserve will be established as the sum of an amount equal to six months operations and maintenance expenses and the total of the annual debt(COP)service payments due in August each year. An operating contingency reserve will be established to provide for non-recurring expenditures that were not anticipated when the annual budget and sewer service fees V were considered and adopted. The level of this reserve will be established at an amount equal to ten percent of the annual operating budget. Section 3-Page 6 Fiscal Policy In Fiscal Policy Statement Completed Progress Comments A capital improvement reserve will be maintained to fund annual increments of the capital improvement program. The long-term target is for one half of the capital improvement program to be funded from borrowing and for one half to be funded from current revenues and reserves. With this program in mind,the target level of this reserve has been ✓ established at one half of the average annual capital improvement program through the year 2020. Levels higher and lower than the target can be expected while the long-term financing and capital improvement programs are being finalized. A renewal/replacement reserve will be maintained to fund the District's renewal, rehabilitation and replacement requirement costs associated with the District's existing capital plant and collection system over the next twenty years. The reserve ✓ was initially set at$50 million in 1998-99 and is annually augmented by interest earnings and a small portion of the annual sewer user fees in order to meet projected needs through the year 2030. Catastrophic loss, or self-insurance, reserves will be maintained for property damage including fire, flood, and earthquake;for general liability; and for workers' compensation. These reserves are intended to work with ✓ purchased insurance policies, FEMA disaster reimbursements, and State disaster reimbursements. Based on the current infrastructure value of$1.3 billion, the reserve level has been set to fund the District's non-reimbursed costs, estimated to be$57 million. Investment Policies The District's Treasurer will annually submit an investment ✓ policy to the Board of Directors for review and adoption. The investment policy will emphasize safety and liquidity ✓ before yield. Accounting,Auditing, and Financial Reporting The District's accounting and financial reporting systems will be maintained in conformance with generally accepted ✓ accounting principles and standards promulgated by the Governmental Accounting Standards Board. A capital asset system will be maintained to identify all District ✓ assets,their condition, historical cost, replacement value, and useful life. Section 3-Page 7 2018-19 & 2019-20 Budget In Fiscal Policy Statement Completed Progress Comments Quarterly financial reports will be submitted to the Board of ✓ Directors and will be made available to the public. Full disclosure will be provided in the general financial ✓ statements and bond representations. The District will maintain a good credit rating in the financial The District's community. AAA rating was reaffirmed with ✓ the$66.4 million 2017A Revenue Refunding debt issuance. An annual audit will be performed by an independent public accounting firm with the subsequent issue of an official ✓ Comprehensive Annual Financial Report, including an audit opinion and a management letter. Section 3-Page 8 GFOA Best Practices and Advisories Compliance Not In GFOA Recommended Practice Met Applicable Progress Comments Accounting.Auditing-and Financial Reporting;Recommended Practices Governmental Accounting,Auditing, ✓ and Financial Reporting Practice Prepare Popular Reports ✓ Not being considered at this time due to other communication efforts. Appropriate Levels of Working Capital ✓ Working Capital of the District in Enterprise Funds shall be greater than 45 days worth of annual operating expenses Audit Procurement ✓ Use the Comprehensive Annual ✓ Financial Report to Meet SEC Requirements for Periodic Disclosure Establish Appropriate Capitalization ✓ Thresholds for Tangible Capital Assets Internal Audit Function Established ✓ Administrative Committee directs Internal Audits Audit Committees ✓ Administrative Committee serves as an audit committee. The Need for Periodic Inventories of ✓ Capitalized Tangible Assets Application of Full-Cost Accounting to ✓ OCSD does not provide solid Municipal Solid Waste Management waste services. Activities Present Securities Lending ✓ OCSD does not have Securities Transactions in Financial Statements Lending Activities Technology Disaster Recovery ✓ Managed by Information Planning Technology Division Present Budget to Actual ✓ Not required for audited Comparisons Within the Basic financial statement reports of Financial Statements Enterprise Funds.Budget/actual comparisons are included within unaudited quarterly financial reports. Use Websites to Improve Access to ✓ Budget Documents and Financial Reports Use of Trend Data and Comparative ✓ Data for Financial Analysis Section 3—Page 9 2018-19 & 2019-20 Budget Compliance Not In GFOA Recommended Practice Met Applicable Progress Comments Appropriate Level of Unrestricted ✓ OCSD only has Proprietary Fund Balance in the General Fund Fund Types-established a formal policy on the level of unrestricted net assets Document Accounting Policies and ✓ Procedures Establish the Estimated Useful Lives ✓ of Capital Assets Improve the Effectiveness of Fund ✓ Accounting Enhance Management Involvement ✓ with Internal Control Including Management's Discussion ✓ and Analysis in Departmental Reports Auditor Association with Financial ✓ Statements Included in Offering Statements or Posted on Websites Ensuring Control over Noncapitalized ✓ Items Considerations on Using the Modified ✓ OCSD depreciates all capital Approach to Account for assets; OCSD has no Infrastructure Assets governmental fund types Mitigating the negative effects of ✓ Statement on Auditing Standards No.112 Encouraging and facilitating the ✓ reporting of fraud and questionable accounting and auditing practices Ensuring adequate documentation of ✓ costs to support claims for disaster recovery assistance Improving the timeliness of financial ✓ reports Web Site Presentation of Official ✓ Managed by Information Financial Documents Technology Division Treasury and Investment Management Recommended Practices Collateralizalion of Public Deposits ✓ Government Relationships with ✓ Securities Dealers Using Mutual Funds for Cash ✓ Management Purposes Section 3—Page 10 GFOA Best Practices and Advisories Compliance Not In GFOA Recommended Practice Met Applicable Progress Comments Debt Service Payment Settlement ✓ Procedures Adopt a comprehensive written ✓ Investment Policy and review and update policies, if necessary on an annual basis Use of Derivatives and Structured ✓ Investment Policy does not Investment by State and Local allow Derivative Investments Governments for Non-Pension Fund Investment Portfolios Use of Derivatives and Structured ✓ Investment Policy does not Investment by State and Local allow Derivative Investments Governments for Cash Operating and Reverse Portfolios Security Lending Programs for Non- ✓ Pension Fund Portfolios Diversification of Investments in a ✓ Portfolio Managing Market Risk in Investment ✓ Managed by Chandler Asset Portfolios Management Electronic Payment Systems ✓ Procurement of Banking Services ✓ Purchasing Card Programs ✓ Acceptance of Payment Cards and ✓ Selection of Payment Card Service Providers Frequency of Purchased Securities ✓ Valuation in Repurchase Agreements Selection of Investment Advisors for ✓ Non-Pension Fund Investment Portfolios Utilize independent Third-Party ✓ Custodians to safeguard District investments and protect against safekeeping/custodial risks. Mark-to-Market Reporting Practices ✓ Establish Policy for Repurchase ✓ Agreements and Reverse Repurchase Agreements Section 3—Page 11 2018-19 & 2019-20 Budget Compliance Not In GFOA Recommended Practice Met Applicable Progress Comments Use of Lockbox Services ✓ OCSD does not have sufficient cash related transactions to use Lockbox services. The majority of revenues are collected on the property tax roll. Commercial Paper ✓ Use of Cash Flow Forecasts in ✓ Operations Bank Account Fraud Prevention ✓ Use of Local Government Investment ✓ Pools Revenue Control and Management Policy ✓ Payment Consolidation Services ✓ Using Electronic Signatures ✓ Using Remote Deposit Capture ✓ Budgeting and Fiscal Policy Recommended Practices Economic Development Incentives ✓ Use of Performance Measurement for ✓ Decision Making Providing a Concise Summary of the ✓ Budget Establishing of Government Charges ✓ and Fees Recommended Budget Practices of ✓ the National Advisory Council on State and Local Budgeting(NACSLB) Financial Forecasting in the Budget ✓ Preparation Process Relationships Between Budgetary ✓ and Financial Statement Information Use of Financial Status in the ✓ Budgeting Process Adoption of Financial Policies ✓ Appropriate Level of Unreserved ✓ OCSD only has Proprietary Fund Balance in the General Fund Fund Types-established a formal policy on the level of unrestricted net assets Section 3—Page 12 GFOA Best Practices and Advisories Compliance Not In GFOA Recommended Practice Met Applicable Progress Comments Include Sustainability,in Public ✓ Finance Practices Establish Strategic Plans ✓ Measuring the Cost of Government ✓ Services Using Websites to Improve Access to ✓ Budget Documents and Financial Reports Business Preparedness and ✓ Continuity Guidelines Statistical/Supplemental Section of ✓ the Budget Document Budgeting for Results and Outcomes ✓ Present Capital Budget in Operating ✓ Budget Document Present Departmental Section in the ✓ Operating Budget Document Alternative Service Delivery: Shared ✓ Services Long-Term Financial Planning ✓ Comprehensive Risk Management ✓ Program Public Participation in Planning, ✓ Budgeting,and Performance Management Inflationary Indices in Budgeting ✓ Key Issues in Succession Planning ✓ Expand and align ongoing succession planning as part of OCSD's workforce planning and development efforts to ensure continuity and consistency of service delivery. Managing the Salary and Wage ✓ Budgeting Process Managed Competition as a Service ✓ Delivery Option Debt Management Recommended Practices Select and Manage the Method of ✓ Sale of State and Local Government Bonds Section 3—Page 13 2018-19 & 2019-20 Budget Compliance Not In GFOA Recommended Practice Met Applicable Progress Comments Analyzing and Issuing Refunding ✓ At the outset of evaluating the Bonds issuance of bonds,solicit the advice of bond counsel and financial advisor in order to outline key legal and financial issues. Debt Management Policy ✓ Board approved Debt Policy completed in 2001-02. Investment of Bond Proceeds ✓ Included in Trustee Documents Use of Debt-Related Derivatives ✓ No Derivative Products Products and Development of Derivatives Policy Maintain an Investor Relations ✓ Program Payment of the Expense Component ✓ Establish at the beginning of the of Underwriters'Discount bond negotiation process what expenses will be directly paid by the issuer or as part of the underwriter spread. Issuers role in Secondary Market ✓ Meet qualifications of arbitrage Secudtization of Tax-Exempt Obligations Evaluate the Use of Pension ✓ OCSD does not manage Obligation Bonds pension fund Evaluating the Sale and ✓ Securitization of Property Tax Liens Use Variable Rate Debt Instruments ✓ Issuers Role in Selection of ✓ Underwriters Counsel Issuing Taxable Debt by U.S.State ✓ OCSD does not plan to issue and Local Governments taxable debt outside of the Build America Bonds program Select Bond Counsel ✓ Price Bonds in a Negotiated Sale ✓ Underwriter Disclaimers in Official Statements ✓ Use a Web Site for Disclosure ✓ Tax Increment Financing as a Fiscal ✓ Tool Section 3—Page 14 GFOA Best Practices and Advisories Compliance Not In GFOA Recommended Practice Met Applicable Progress Comments Caution in Regard to OPEB Bonds ✓ Pay-As-You-Go funding,no plan on issuing bond Public-Private Partnerships for ✓ Economic Development Role of the Finance Officer in ✓ Privatization Selecting Financial Advisors ✓ Selecting Underwriters for Negotiated ✓ Bond Sales Understanding Your Continuing ✓ Disclosure Responsibilities Managing Build America and Other ✓ Develop procedures for Subsidy Bonds managing post-sale considerations and responsibilities while the bonds remain outstanding. Retirement and Benefits Administration Recommended Practices Public Employee Retirement System ✓ Managed by OCERS Investments Preparing an Effective Summary Plan ✓ Managed by OCERS Description Retirement and Financial Planning ✓ Managed by OCERS Services Directed Brokerage Programs ✓ OCERS manages all"soft dollar transactions A Policy for Retirement Plan Design ✓ Option Asset Allocation—Guidance for ✓ Managed by OCERS Defined Benefit Plans Asset Allocation-Guidance for ✓ OCERS is a defined benefit Defined Contribution Plans plan. Alternative Investment Policy for ✓ Managed by OCERS Public Employee Retirement Systems (PERS) Pension Investment Policy ✓ Managed by OCERS Selection of Investment Advisors for Managed by OCERS Pension Fund Assets ✓ Section 3—Page 15 2018-19 & 2019-20 Budget Compliance Not In GFOA Recommended Practice Met Applicable Progress Comments Brokerage Window Options for ✓ Managed by OCERS Defined Contribution Retirement Plans Framework for Understanding ✓ Managed by OCERS Pension Fund Risk Investment Policies Governing Assets ✓ Managed by the plan sponsors in a Defamed Compensation Plan Health Care Cost Containment ✓ Evaluating Use of Early Retirement Incentives ✓ Defamed Retirement Option Plans ✓ (DROPS) A Policy to Participate in Securities ✓ Managed by OCERS Litigation Class Actions Ensuring the Sustainability of Other ✓ Pay-As-You-Go funding Postemployment Benefits Design Elements of Defined Benefit ✓ Managed by OCERS Retirement Plans Design Elements of Defined ✓ Contribution Plans as the Primary Retirement Plan Design Elements of Hybrid ✓ Retirement Plans Monitoring and Disclosure of Fees for ✓ Defined Contribution Plans Prefunding OPEB Obligation ✓ Pay-As-You-Go funding Establishing and Administering an ✓ Pay-As-You-Go funding OPEB trust Commission Recapture Program ✓ Communicating Health-Care Benefits ✓ to Employees and Retirees Participant Education-Guidance for ✓ Defined Contribution Plans Strategic Health-Care Plan Design ✓ Governance of Public Employee ✓ Managed by OCERS Retirement System Sustainable Funding Practices of ✓ Defined Benefit Pension Plans Section 3—Page 16 GFOA Best Practices and Advisories Compliance Not In GFOA Recommended Practice Met Applicable Progress Comments Responsible Management and ✓ Design Practices for Defined Benefit Pension Plans Design and Implement Sustainable ✓ Pension Benefit Tiers Develop a Review Process for ✓ Implementing National Health-Care Reform(COBRA) Economic Development and Capital Planning Multi-Year Capital Planning ✓ The Role of the Finance Officer in Economic Development ✓ Capital Project Monitoring and Reporting ✓ Capital Asset Assessment, Establish a system for Maintenance, and Replacement ✓ assessing District assets and Policy plan and budget for any capital maintenance and replacement needs. The Role of Master Plans in Capital Improvement Planning ✓ Analyzing the Cost of Economic ✓ Development Projects Building Resiliency into Capital ✓ Establish resiliency into the Planning capital planning process to produce a sustainable community and mitigate the effects of disasters. Incorporating a Capital Project ✓ Budget in the Budget Process Developing an Economic ✓ No Incentive Policy established Development Incentive Policy Monitoring Economic Development ✓ Performance Balancing the Costs and Benefits of ✓ Economic Development Projects Incorporating Environmentally ✓ Responsible Practices in the Capital Improvement Program Section 3—Page 17 2018-19 & 2019-20 Budget This page was intentionally left blank. Section 3— Page 18 Overview of the Budget Process Issuance of Budget Financial Review Training and Instructions of Performance District's Budget Administration of Development Finance/Policy in Budget 1 � Compilation/Analysis Executive Board of District's Requests Enactment by Financial/Pla nning General Managers Consideration of Budget Review and Preparation by District's Board of Executive Budget and Committee Budget Process: . Preparation/Planning-takes place from January Ten years ago, the District prepared its first complete through March. budget document covering two years instead of one. . Integration- runs from March through May. The next yeara smaller budget update documentwas . Passage-adoption of the budget usually occurs prepared to summarize revisions to the second year in June of each year. of the previously adopted two-year budget period. Execution-starts from the first day of the budget This two-year cycle approach to budget preparation year, July 1, through the entire budget year and is expected to continue for the indefinite future. beyond into November with the presentation of This change has not caused any modification to the the annual audit report. previously established stages of the annual budget Key dates in this 2018 budget cycle are: process except with regard to the level of detail which Budget Kick-off Meeting -January 18 is provided. The timing of all stages of the budget Department Budget Submissions - February 23 process remains consistent from year to year. In the Preliminary Budget Review - March 5-8 second year of a two-year cycle, however, the focus General Manager Budget Review - March 19-23 is on any changes that need to be made to the Presentation to Board Committees -June 6 & 13 upcoming year's budget relative to what was Public Hearing& Board Adoption -June 27 previously submitted,reviewed,and approved for that budget during the prior year. Team Approach The District's annual budget preparation process As identified by one of the fiscal policies, the budget begins in January of each year and concludes in June preparation process originates at the division level, upon its adoption. However, the entire budget the organizational level of accountability and control. process extends beyond one year and overlaps with Budget coordinators are established to represent the preceding budget and the subsequent budget. As each operating division. A comprehensive budget shown in the chart above, the budget process manual is prepared and used as the training manual consists of four major parts. These parts occur at during a training session with the budget various stages throughout the year as follows: coordinators. Section 3—Page 19 2018-19 & 2019-20 Budget After the initial divisional budgets are prepared, Administrative policies provide guidelines on budget budget review sessions are scheduled for each transfers and the authorization necessary to division with the General Manager. It is during these implement transfers. Generally, there are two types sessions that all proposed staffing levels, programs, of budget transfers: and line item expenses are justified. Next senior management representatives from each department 1. Budget Adjustment analyze opportunities for consolidating programs and eliminating unnecessary requests. Guidance is also This is a transfer which does not change the total sought and utilized from District's committees on appropriated amount and does not require Board various issues that affect budget development. action. Depending on the budget category affected by the transfer, approval may be granted at the The Process General Manager or Department Head level as follows: The budget preparation process begins in January with the distribution of the budget manual, budget Department Heads have discretion to reapportion preparation training, and issuance of personnel funds between certain line items within a division but budget and justification forms, and equipment budget may not exceed total appropriated amounts for each forms to all of the Divisions. department. They also may transfer staff across divisional lines within their department. The General In March, the Administrative Services Department Manager and Board of Directors must approve develops divisional level budgets based on the additional capital outlay items. Funds appropriated request forms received from the various divisions. for salaries and benefits may not be expended for any These divisional budgets are then reviewed in mid- other purpose unless approved by the Board. The March by the General Manager along with the General Manager may transfer operating funds within Department and Divisional managers for each and between divisions and departments. The program request and for new, additional, or reduced General Manager may also transfer staff positions services, positions,and capital outlay. between departments. The Capital Improvement Program requests are 2. Budget Amendment: prepared from October through March and are reviewed by Engineering and Department and This is an adjustment to the total appropriated Divisional managers prior to being submitted to the amount, which was not included in the original General Manager for review and evaluation as part of budget. These supplemental appropriations require the budget process. formal action by the Board of Directors. Types of modifications can be categorized as follows: In determining recommended allocation levels, the General Manager takes into consideration the Prior year reserves or fund balances may be projected amount of available resources, direction appropriated to fund items not previously provided by the Directors,the District's fiscal policies, included in the adopted budget. and how to best provide the most cost-effective and efficient service levels to the public. After a final Reserves/fund balances exceeding minimum review of the operating budgets by the General amounts required by fiscal policy may be Manager, the proposed annual budgets are finalized appropriated if it is determined to be in the best in late May and then distributed to the Directors for interest of the District. Directors may also consideration. appropriate reserves in case of emergencies or unusual circumstances. The General Manager presents the proposed budget to the various Directors'Committees for deliberations Transfers between Revenue Areas require formal throughout the month of June. The proposed budget action by the Board of Directors. is scheduled for adoption, along with any revisions by Unexpended appropriations automatically lapse at the Board, at the Board of Directors meeting in June. the end of the fiscal year and are included in the Level of Control and Amendments to the Budget ending fund balances. Budgetary control, the level at which expenses cannot legally exceed the appropriated amount, is exercised at the individual Department level. Section 3—Page 20 Budget Assumptions 2018-20 Proposed Budget Assumptions • Annexable property in the District's service area sphere is minimal; consequently, no FY 2018-19 income from annexation fees is anticipated. Economic Assumptions • Inflation for Orange County in FY 2018-19 is • Property tax revenues are preliminarily projected to be 2.4 percent based on the 2018 estimated to increase by approximately five projected percentage change in consumer price percent from FY 2017-18 to$98,349,000. index obtained from Chapman University. A two percent annual increase in Assessed A 2.4 percent inflation factor will also be used for Value is authorized by the state constitution and FY 2019-20. is included in the increases noted above. The additional increase in assessed value is from authorized increases to market value when Revenue Assumptions property is sold at a higher value. • Based upon the proposed Sewer Service Fee Rate Schedule to be approved by the Board in • Earnings on the investment of the District's March 2018, the single-family residence (SFR) operating cash and reserves will be budgeted at rate will increase by 1.2 percent to $335 in 1.0 percent of the average cash and investment FY 2018-19. balance projected for the fiscal year. • Note that each $1 increase in the SFR rate • No additional debt issuance is scheduled for generates approximately$900,000 per year. FY 2018-19. • The capital facilities capacity charge (CFCC)fee captures only those infrastructure costs that Operating Assumptions relate to additional capacity. The proposed . Operating expenses are expected to CFCC fee to be approved by the Board in March approximate the adopted FY 2017-18 budget of 2018 will increase by ten percent for FY 2018- $154 million. 19. Other infrastructure costs such as improved treatment, rehabilitation, refurbishment, and . Average daily flows are projected at 190 mgd for replacement, will be supported through user FY 2018-19 and 191 mgd for FY 2019-20. The fees. FY 2018-19 flow projection of 190 mgd reflects an increase of 3 mgd from the actual for the first • Given the Facilities Master Plan adopted in 5 months of the current year and is 2 mgd above December 2017, a rate study was completed in the final actual flow for FY 2016-17. December 2017 to ensure that the CFCC fee methodology remains equitable and to confirm Employee/Staffing Assumptions that an appropriate share of system costs would Staffing level is expected to remain flat. No be recovered from new development. additional positions are anticipated. The total FY 2017-18 authorized staffing level is 635.00 • Revenues will be budgeted to reflect little growth FTEs, excluding Management Discretion in Equivalent Dwelling Unit (EDU) connections positions. that have remained flat over the past five years. Vacant positions as of 12/31/17 are budgeted at • Propose permit user rates for flow will increase 50 percent of step 1 for the remainder of by 4.1 percent, Biochemical Oxygen Demand FY 2017-18 and at 100 percent of step 2 for (BOD) will increase by 0.5 percent and Total FY 2018-19. Suspended Solids (TSS) will increase by 2.9 percent for FY 2018-19 based upon the Rate . New positions will be projected at Study completed in December 2017. 100 percent of step 1 for FY 2018-19. • Annexation fees capture both the net current assets and the equivalent property tax allocations totaling $4,235 per acre. Section 3—Page 21 2018-19 & 2019-20 Budget • A 5.0 percent vacancy factor on authorized • An amount equal to 0.85 percent of the positions has been budgeted for FY 2018-19. Operating materials and services budget will be The actual vacancy factor is currently running at the General Manager's contingency budget. 7.6 percent, but is on a downward trend due to These funds will be allocated to appropriate line the streamlined recruitment processes now in items during the year after requests and place. This vacancy factor accounts for time justifications for unanticipated needs are spent for recruitment and turnover. approved by the General Manager. • The Memorandums of Understanding (MOUs) Resource needs for strategic initiatives will be for the OCEA, the Local 501, and the Supervisor included in the budget. and Professional (SPMT)groups expire on June 30, 2019. Salary adjustments will be included in the budget for COLA based upon the current Capital Improvement Program Assumptions MOUs. The FY 2018-19 and FY 2019-20 cash flow budget, based on the most current Validated • Retirement costs for employees enrolled in Capital Improvement Program (CIP), is the OCERS Plans G and H are estimated at a rate target. of 15.78 percent of the employee's base salary for FY 2018-19, down from 15.83 percent in . The baseline CIP cash flow for FY 2018-19 is FY 2017-18. The rates for Plans G and H $169 million and for FY 2019-20 is$193 million. include the District's pickup of 3.5 percent of . Continual evaluation of the CIP by the Asset employees' required contributions. Management Team may result in deferral or reduction of some projects and a resultant Employees enrolled in OCERS Plan B are increase in O&M repair costs for materials and estimated at a rate of 10.21 percent of the services, if the net cash flow impact is a employee's base salary for FY 2018-19, down decrease. from 10.30 percent in FY 2017-18. • The FY 2018-19 and 2019-20 CIP budget will All employees hired on or after January 1, 2013 only increase for critical projects which were not are enrolled in OCERS Plan U and are previously identified in the Strategic Plan estimated at a rate of 9.27 percent for FY 2018- Update. 19, up from 9.25 percent in FY 2017-18. • For the first five months of FY 2017-18, Interns are not enrolled in OCERS so their $41.1 million of the $148.1 million CIP budget, retirement benefits are calculated at 6.2 percent approximately 27.8 percent,was expended. (FICA rate). • Other employee benefits and insurances will be Debt Financing budgeted to increase in FY 2018-19 and . The District will issue new debt in the form of FY 2019-20 by moderate but yet to be Certificates of Participation (COP) as needed to determined amounts. fund the CIP and to maintain reserves. • No additional debt issuance is scheduled for Materials, Supplies& Services Assumptions FY 2018-19 and FY 2019-20. • The proposed operating budget will continue to reflect an emphasis on safety, security, and • Debt will only be used for CIP and capital maintenance of plant assets and infrastructure. expenses, not for operating expenses. • An amount equal to half of one percent of the • Capital financing plans no longer include future Operating materials and services budget will be borrowings over the next ten years as the a contingency for prior year re-appropriations. approved user fee schedule is considered Since the current year's budget lapses on sufficient. June 30, a contingency is needed in the succeeding budget year for goods or services Borrowing is proposed only for facilities which do ordered at the end of one budget year but not not add capacity and that are funded by all users delivered until the following year. Section 3—Page 22 Budget Assumptions for replacement, rehabilitation, and improved ► Accumulated capital funds will be set aside for treatment. certain specific, short-term capital improvements as the need and availability arise. Reserve Assumptions ► A capital replacement/renewal criterion has The existing reserve policy is summarized as been established to provide thirty percent of the follows: funding to replace or refurbish the current collection, treatment and disposal facilities at the ► A cash Flow criterion will be established to fund end of their useful economic lives. operations, maintenance and certificates of participation expenses for the first half of the Based on the Facilities Evaluation Report fiscal year, prior to receipt of the first installment completed in December 2017, the current of the property tax allocation and sewer service replacement value of these facilities is estimated user fees which are collected as a separate line to be $3.17 billion for the collection facilities and item on the property tax bill. The level of this $6.94 billion for the treatment and disposal criterion will be established as the sum of an facilities. The initial criterion level has been amount equal to six months operations and established at $50 million, which will be maintenance expenses and the total of the augmented by interest earnings and a small annual debt (COP) service payments due in portion of the annual sewer user fee, in order to August each year. meet projected needs through the year 2030. ► An operating contingency criterion will be ► Provisions of the various certificates of established to provide for non-recurring participation (COP) issues require debt service expenditures that were not anticipated when the reserves to be under the control of the Trustee annual budget and sewer service fees were for that issue. These reserve funds are not considered and adopted. The level of this available for the general needs of the District criterion will be established at an amount equal and must be maintained at specified levels. The to ten percent of the annual operating budget. current level of required COP service reserves is projected to be$177.0 million. ► A capital improvement criterion will be maintained to fund annual increments of the ► Accumulated funds exceeding the levels capital improvement program. The long-term specified by District policy will be maintained in a target is for one half of the capital improvement rate stabilization fund. These funds will be program to be funded from borrowing and for applied to future years' needs in order to one half to be funded from current revenues and maintain rates or to moderate annual reserves. With this program in mind, the target fluctuations. There is no established target for level of this criterion has been established at this criterion. one-half of the average annual capital improvement program over the next ten years. Miscellaneous ► A catastrophic loss, or self-insurance, criterion will be maintained for property damage including . The budget document will be in a bi-annual fire, flood and earthquake, for general liability formal with two, one-year budgets presented and for workers' compensation. This criterion is for FY 2018-19 and FY 2019-20. intended to work with purchased insurance policies, FEMA disaster reimbursements and . The budget worksheets for operating costs will State disaster reimbursements. The potential contain one column for FY 2018-19 and one infrastructure loss from a major earthquake, of column for 2019-20. The column will represent which the District currently has limited outside all collection, treatment, and disposal/reuse insurance coverage of $25 million, has been costs. estimated to be as high as $1.3 billion. The level of this criterion has been set at $57 million should such a catastrophic event occur. This criterion amount will assist the District with any short-term funding needs until Federal and State assistance becomes available. Section 3—Page 23 2018-19 & 2019-20 Budget This page was intentionally left blank. Section 3— Page 24 Accounting System & Budgetary Control Accounting System and Budgetary Control Fund Accounting &Proprietary Funds Internal Controls The accounts of the District are organized within one The District is responsible for establishing and Enterprise Fund, a Proprietary Fund Type. The maintaining an internal control structure designed to District's Enterprise Fund is comprised of two ensure that the assets of the government are Revenue Areas which are identified as Revenue Area protected from loss, theft, or misuse and to ensure 14 and the Consolidated Revenue Area (Revenue that adequate accounting data are compiled to allow Area 15). Each Revenue Area includes a share of for the preparation of financial statements in capital outlay activities, self-insurance activities, debt conformity with generally accepted accounting service activities, and operating activities. These principles. The internal control structure is designed activities are allocated to each Revenue Area based to provide reasonable, but not absolute, assurance on sewage flows, location, or level of participation in that these objectives are met. The concept of specific programs. reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be Enterprise Funds are used to account for operations derived and that the valuation of costs and benefits that are financed and operated in a manner similar to requires estimates and judgments by management. a private business enterprise, where the costs (expenses, including depreciation)of providing goods Budgetary Control or services to the general public on a continuing basis are financed or recovered through user charges. Budgetary controls are maintained to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Board of Basis of Accounting Directors. The budgetary level of control,the level at which operating expenses cannot legally exceed the Basis of accounting refers to the point at which appropriated amount, is exercised at the department revenues and expenses are recognized in the level. accounts and reported in the financial statements. Enterprise funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. In an enterprise fund, revenues are recognized when earned and expenses are recognized when incurred, regardless of the timing of related cash flows. Budgetary Basis of Accounting The operating budget for the Enterprise Fund is adopted on a basis consistent with generally accepted accounting principles. Except as noted in the following paragraph, the basis of accounting and the budgetary basis of accounting are the same. Budgeted amounts are as originally adopted and as further amended by Board action of the District. Although the District does budget for capital improvement projects, the related capital outlays are recorded as increases in Property, Plant, and Equipment on the balance sheet of the Enterprise Fund. Similarly,the District budgets for the retirement of debt. However,the principal payments on debt are recorded as reductions in the current portion of long- term debt on the balance sheet of the Enterprise Fund. Section 3—Page 25 2018-19 & 2019-20 Budget Orange County Sanitation District Fund Structure Diagram OCSD Enterprise Fund Consolidated Revenue Revenue Area Area 15 14 FEI� Each Revenue Area Self- Debt Capital j------I Is comprised of Operating, Insurance Operating Service Outlay p Debt Service, Capital, and --- Self-Insurance components. Share of Direct Direct Share of Joint Works Revenues Capital Joint Capital Operating &Expenses Outlay Outlay Joint Works Net Operating Expenses and Joint Capital Joint Works Outlays are allocated to Net Operating Joint Capital : each Revenue Area's Expense Outlay Operating and Capital Outlay components, respectively, based on sewage Flows. Section 3- Page 26 Revenue Sources Revenue Sources In FY 2018-19, revenues are being proposed at The District has a variety of revenue sources $477.9 million, an increase of $7.0 million, or available for operating and capital expenses. The 1.4 percent over the prior year. This increase is major revenue sources are as follows: primarily attributable to the 1.5 percent increase in user fees that is expected to generate an additional • User Fees $4.6 million. Property tax revenue is expected to • Property Taxes generate an additional increase of $5.0 million, or • Industrial Waste Permit User Fees another projected increase of 5.0 percent over the • Interest Earnings prior year. • Debt Proceeds Property Taxes These sources have generally accounted for The County is permitted by Stale law(Proposition 13) 90 percent more than of the total revenue to the to levy taxes at one percent of full market value (at District. time of purchase) and can increase the assessed value no more than two percent per year.The District The following graph summarizes revenues from all receives a share of this basic levy proportionate to the sources for the District over the past two fiscal years, amount that was received in the 1976 to 1978 period the current year, and through the following two less $3.5 million, the amount that represents the proposed budget years: State's permanent annual diversion from special Total Revenues districts to school districts that began in 1992-93. Five Year Trend Property Tax•s (In millions) Five Year Trend (in millions) $600 $120 $M].2 .$$A.2 $470.2 $477.9 $1U0 $94.8 $99.6 $104.5 f500 ..... ................................................................... ... $81.9 $85.] 23.] $400 ... ........................................... $80 $So $300 $40 $200 $20 $too $o 2015.16 2010-17 m17-18 His-19 2019-2020 2015-16 2016-17 2017-18 2018-19 2019-20 Actual Actual Protected Proposed! Proposed Actual Actual Projected Proposed Proposed Total revenues increased from $423.7 million in The District's annual share of the one percent ad FY 2015-16 to $447.2 million in FY 2016-17, or valorem property tax levy is first dedicated for the $23.5 million. This increase was due mostly to: payment of COP debt service. The apportionment of (1) an increase of$21.7 million in infra-district equity the ad valorem tax is pursuant to the Revenue sale/purchase between the Consolidated Revenue Program adopted in April 1979 to comply with Areas and Revenue Area 14; (2) the $1.2 million regulations of the Environmental Protection Agency, increase in permitted user fees due to higher rates the State Water Resources Control Board, and in and an increase in the strength of the discharge from accordance with COP documents and Board policy. the permittees. As shown in the graph above, property tax revenues In FY 2018-19, revenues are being proposed at increased from $81.9 million in FY 2015-16 to a $470.9 million, an increase of $17.7 million, or projected $94.8 million in FY 2017-18, primarily due 3.9 percent over the prior year. This increase is to the rebound from the economic decline and the primarily attributable to the increases of $5.6 million collapse in the housing and commercial property in IRWD assessments, $4.7 million in property taxes markets beginning in 2008. Property tax revenues revenue as property assessed valuations continue to are now being projected to increase 5.0 percent per rebound from the previous market downturn, $3.0 year through FY 2019-20. million in joint operating revenues, $2.4 million in CIP reimbursements from other agencies, and $1.5 million in general user fees. Section 3 - Page 27 2018-19 & 2019-20 Budget Historically the District's property tax revenues in December 2015. The original effort was reinforced exceeded the District's debt service obligations. through the adoption of a new Master Plan in However, capital improvement requirements December 2017, a planning effort to define the averaging$200.0 million a year over the last ten years District's goals, responsibilities, and requirements have required new COP debt issuances that have over the next 20 years, and includes projections increased future debt service payments that more through the assumed "build-ouP of the District's closely matches property tax revenues. service area to the year 2050. Incorporating the 2017 Master Plan into the CIP validation update for FY 2018-19, the current CIP includes projects outlays of COP Funding Requirements vs. $2.7 billion over the next ten years. Property Tex Funding Source In March of 2018, following a Proposition 218 notice $106,000,000 process,the Board approved sewer rate increases for $95.000.000 each year over the next five years averaging $85,000,000 approximately 1.2 percent a year. These increases $75,000,000 are necessary to balance the funding of operating $66,000,000 expenses and capital improvements with current $55.000.000 revenues and existing debt, and to minimize the $as,000,060 increase in rates over an extended period of time. i $35,000,000 � The impact of this five-year sewer fee schedule $26,000,000 increased the single-family residence user fee rate, $15.000,000 the underlying rate for all sewer service user fees, an M03 2010 2018 average of 1.2 percent a year from $335 in FY 2018-19 to $351 in FY 2019-20. These rate �Proparty Texas —+—•coP sarvica increases by the District are still well below the average annual sewer rate of $529 being charged User Fees throughout the State according to the 2017 California User fees are ongoing fees for service paid by Wastewater Charge Survey conducted by the State customers connected to the sewer system. Water Resources Control Board. A property owner,or user,does not pay user fees until connected to the sewer system and receiving Net User Fees services. Once connected, a user is responsible for (in millions) their share of the system's costs, both fixed and u00 variable, in proportion to the user's demand on the system. $28a.7 $262.4 $292.9 $294.5 $299.1 $xoo In addition, the Consolidated Revenue Area charges industrial and commercial user fees to customers $200 discharging high-strength or high-volume wastes into the sewer systems. Revenue Area No. 14 needs are $10o funded by IRWD. Previously the District had been able to avoid or minimize user fee increases by reducing operational costs through reorganizing and $0 streamliningDistrict operations. As a result of the 2015.16 2016.17 2017-16 2018.19 2019.20 P capital improvement program expansion and the Actual Actual Projected Proposed Proposed rehabilitation and refurbishment of existing facilities, annual increases in user fees are required. There was a$1.3 million, or 0.4 percent, decrease in FY 2016-17 as shown in the Net User Fees chart In 2007, District staff conducted strategic planning above was due to rebates provided to commercial workshops with the Board of Directors to layout a property users. capital program to deliver the levels of service desired by the Board of Directors. These levels of service and Interest Earnings resulting capital projects are included in the District's Interest earnings are generated from the investment 5-year Strategic Planthatwere most recently updated of accumulated reserves consisting of a cash Section 3 - Page 28 Revenue Sources flow/contingency, a capital improvement, a capital minimize annual sewer rate increases in the long- replacement/refurbishment, and a self-insurance term, all of these refurbishments are being proposed reserve, all projected to total $630.0 million at July 1, to be funded from user fees with no issuances of new 2018. money debt issuances. The District's reserves are invested in accordance Teeter Plan with the District's investment policy and the State In June 1993, the County of Orange adopted the Government Code through an outside money Teeter Plan pursuant to Sections 4701 through 4717 manager,and an independent custodian bank. of the California Revenue and Taxation Code. The Teeter Plan is an alternative method of distribution of revenues from the secured property tax roll to local Interest Earnings participating agencies. (in millions) The District participates in the Teeter Plan program $8.0 $7.2 and receives its full share of property tax and user $7.0 $6.6 $6.4 Ss.s fees from the secured roll,whether or not these taxes $6.0 and user fees have been collected. The Teeter Plan $5.0 provides the District with stable and timely cash flow $4.0 without the collection risk. The County, in exchange $3.0 for assuming the collection risk, receives the $2.0 delinquent taxes and user fees,penalties and interest $1.0 for the defaulted properties when paid. $- — For the fiscal year ended June 30, 2017, the District 2015-16 2016-17 2017-18 2018-19 2019-20 received $370,714,000 in tax and user fees from the Actual Actual Projected Proposed Proposed County, or 99.99 percent of the total tax and user fee levy. Interest earnings fluctuate from year to year based on the timing of CIP outlays and debt issuances, which impact the available balance in reserves for investing, and in the rise and fall of fixed-income investment market yields. The District's investment policy is structured conservatively towards liquidity to avoid having to sell investments at a loss and having unrealized losses become realized losses. Total return on investments were 1.7 percent in FY 2015-16 and 0.7 percent in FY 2016-17. However, interest earnings were lower in FY 2016-17 due to lower yields earned on investments and lower cash and investment balances. The District is proposing an interest earnings rate of 1.0 percent in both FY 2018-19 and FY 2019-20 to generate earnings of$6.5 million and$7.2 million, on annual average investment portfolio projections, with fiscal year end balances of $678.6 million and $773.3 million in FY 2018-19 and FY 2019-20, respectively. Debt Proceeds Over the next ten years, the District is projecting an additional $2.4 billion in future treatment plant and collection system capital refurbishments. In order to Section 3 - Page 29 2018-19 & 2019-20 Budget This page was intentionally left blank. Section 3- Page 30 DISTRICT SUMMARY SECTION 4 Where the Money Comes From — FY 2018-19 Capital Improvement Self-Insurance Revenues Reserve $2,336,100 $262,,2%400 0.2% 25.2% Property Taxes $87,017,000 8.4% Intradistdot Transfers Cash Flow/Confingency $3,400,000 Reserve 0.3% — $168,788,050 16.4% Interest&Misc $10,866,000 1.1% 01.btService Reserve Fees 111,605,000 $331,838,690 10.8% 32.1 t. Self-Insurance Reserve $57,000,000 5.5% FY 2018-19 Total Funding Sources - $1,100,929,591 Where the Money Goes — FY 2018-19 Self-Insurance Program $2,480,000 Joint Capital Operations 0.2% $107,732,000 $146.356,520 10.4% District Capital Intradistrict Transfers 14.2% $63,558,000 $3,03 000 62% 0.3% Long Term Llablllry Debt Service Reduction $86,664,000 $fi5,000,000 8.4% 6.3% Cash Flow/Contingency Capital Improvement Reserve Reserve $174,478,000 $219,409,720 16.9% 21.2% self-Insurance Debt service Reserve Reserve $57,000,000 $107,265,000 5.5% 104% FY 2018.19 Total Funding Uses - $1,100,929,591 Section 4—Page 1 2018-19 & 2019-20 Budget Funding Sources by Category FY 2018-19 Consolidated Revenue Revenue Total Area Area 14 Sources Beginning Accum. Funds & Reserves $ 540,279,514 $ 89,716,772 $ 629,996,286 Services Fees 21,533,790 20,369,030 41,902,820 User Fees 294,450,000 - 294,450,000 Capital Facilities Capacity Charge 14,000,000 - 14,000,000 Capacity Rights - - - Debt Proceeds - - - Property Taxes 96,823,000 2,734,000 99,557,000 Intradistrict Transfers 3,700,000 - 3,700,000 Insurance In-Lieu Premiums 1,870,900 45,000 1,915,900 Interest and Other Revenue 13,828,585 1,579,000 15,407,585 Subtotal 446,206,275 24,727,030 470,933,305 Total Sources $ 986,485,789 $ 114,443,802 $ 1,100,929,591 Section 4—Page 2 Funding Uses by Category Funding Uses by Category FY 2018-19 Consolidated Revenue Revenue Total Area Area 14 Uses Directors' Fees $ 154,873 $ 3,727 $ 158,600 Salaries&Benefits 87,421,260 8,412,940 95,834,200 Administrative Expenses 1,831,300 176,230 2,007,530 Printing&Publications 289,070 27,820 316,890 Training & Meetings 1,000,770 96,310 1,097,080 Operating Materials and Supplies 14,378,980 1,383,760 15,762,740 Contractual Expenses 22,993,730 2,212,790 25,206,520 Professional Expenses 4,920,010 473,470 5,393,480 Research &Monitoring 968,040 93,160 1,061,200 Repairs&Maintenance 19,809,050 1,906,310 21,715,360 Utilities 6,786,690 653,110 7,439,800 Self-Insurance Requirements 2,402,100 57,900 2,460,000 Other Materials, Supplies, &Services 4,789,290 460,900 5,250,190 Cost Allocation (18,318,723) (1,751,707) (20,070,430) Joint Works Capital Improvement Program 136,680,708 4,986,719 141,667,427 Collection System Capital Improvement Frog. 32,874,449 - 32,874,449 Debt Service 80,464,000 - 80,464,000 Long Term Debt Reduction - - - Intradistrict Transfers - 3,700,000 3,700,000 Joint Equity Sale to IRWD Subtotal 399,445,597 22,893,439 422,339,036 Ending Accum. Funds&Reserves 587,040,192 91,550,363 678,590,555 Total Uses $ 986,485,789 $ 114,443,802 $ 1,100,929,591 Section 4—Page 3 2018-19 & 2019-20 Budget This page was intentionally left blank. Section 4— Page 4 Where the Money Comes From — FY 2019-20 Cash Flow/Contingency Reserve $174,478,000 Capital Improvement 17.3% Reserve $219,419,720 21.8% Debt Service Reserve $107,265.000 Self-Insurance 10 7% Revenues $2.580,000 0.3% Self-Insurance Reserve Property Taxes $57,000,000 $91,368,000 5.7% 9.1% Intradisttict Transfers $1,700,000... Interest B Misc Fees $11,168,000 $339,571,010 1.1% 333% FY 2019-20 Total Funding Sources-$1,156,520,621 Where the Money Goes — FY 2019-20 Self-Insurance Program $2,580,000 0.2% Joint Capital Operations $99,769,000 $149,854,390 9.9% Distract Capital 14.9% $38,220,000 3.8% Debt Service Intradistrlct Transfers $83,1 19,000 $1,700,000 8.3% Cash Flow/Contingency Capital Improvement Reserve Reserve $173,031,000 $296,029,340 17.2% 29.5% Debt Service Reserve Self-Insurance $103,237,000 Reserve 10.3% $57,000,000 5.7% FY 2019.20 Total Funding Uses -$1,156,520,621 Section 4—Page 5 2018-19 & 2019-20 Budget Funding Sources by Category FY 2019-20 Consolidated Revenue Revenue Total Area Area 14 Sources Beginning Accum. Funds&Reserves $ 587,040,192 $ 91,550,363 $ 678,590,555 Services Fees 21,881,746 18,030,614 39,912,360 User Fees 299,084,000 - 299,084,000 Capital Facilities Capacity Charge 14,476,000 - 14,476,000 Capacity Rights - - - Debt Proceeds - - - Property Taxes 102,077,000 2,458,000 104,535,000 Intradistrict Transfers 3,500,000 - 3,500,000 Insurance In-Lieu Premiums 2,471,300 58,700 2,530,000 Interest and Other Revenue 12,396,206 1,496,500 13,892,706 Subtotal 455,886,252 22,043,814 477,930,066 Total Sources $ 1,042,926,444 $ 113,594,177 $ 1,156,520,621 Section 4—Page 6 Funding Uses by Category Funding Uses by Category FY 2019-20 Consolidated Revenue Revenue Total Area Area 14 Uses Directors'Fees $ 154,920 $ 3,680 $ 158,600 Salaries&Benefits 89,996,530 8,033,970 98,030,500 Administrative Expenses 1,749,820 156,210 1,906,030 Printing&Publications 291,400 26,010 317,410 Training&Meetings 907,400 81,000 988,400 Operating Materials and Supplies 17,330,730 1,547,110 18,877,840 Contractual Expenses 20,248,010 1,807,540 22,055,550 Professional Expenses 4,225,190 377,180 4,602,370 Research&Monitoring 1,009,480 90,120 1,099,600 Repairs&Maintenance 17,737,810 1,583,450 19,321,260 Utilities 8,288,670 739,930 9,028,600 Self-Insurance Requirements 2,470,600 59,400 2,530,000 Other Materials, Supplies,&Services 3,852,870 343,950 4,196,820 Cost Allocation (18,717,820) (1,660,790) (20,378,610) Joint Works Capital Improvement Program 97,758,058 3,566,600 101,324,658 Collection System Capital Improvement Prog. 35,702,600 - 35,702,600 Debt Service 79,956,000 - 79,956,000 Long Term Debt Reduction - - - Intradistrict Transfers - 3,500,000 3,500,000 Joint Equity Sale to IRWD Subtotal 362,962,268 20,255,360 383,217,628 Ending Accum. Funds&Reserves 679,964,176 93,338,817 773,302,993 Total Uses $ 1,042,926,444 $ 113,594.177 $ 1,156,520,621 Section 4—Page 7 2018-19 & 2019-20 Budget ACTUAL APPROVED PROJECTED PROPOSED PROPOSED DESCRIPTION OR ACCOUNT TITLE 2016-17 2017-18 2017-18 2018-19 2019-20 BEGINNING ACCUM.FUNDS B RESERVES $ 569543,220 $ 535274550 $ 531,514990 $ 629,996,286 $ 678,590,555 OPERATING REVENUES General Sewer Service User Fees 282,429,502 291,158,000 292,985,000 294.450,000 299,094.000 Permitted User Fees 14,172,851 12,925,D00 18,101,000 10,320,000 18,530,000 IRWD Assessments 11,389,092 8,991,610 11,397,000 14,148,820 13,129,360 SAWPA Assessments 3,437,936 3,263,000 3,359,000 3,290,000 3,422,000 Interest 4,248,353 8,391 6,400,000 6,510,000 7,223,000 Miscellaneous Receipts 3,464,859 2,025,000 3,521,756 8,897,585 6,669,706 Operating Revenue Subtotal 319,142,593 326,760,610 335,763,756 345,616,405 348,066,066 NON-OPERATING REVENUES Property Tax Allocation 75,804,234 82,925,550 83,746,000 88,266,000 92,679,450 Redevelopment Agency Pass Thor 9,865,844 10,740,450 11,070,000 11,291,000 11,855,550 Subtotal-Taxes 85,670,078 93,611 $94,816,000 99,557,000 104,535,000 Capital Facilities Capacity Charge 15,621,440 9,901 13,961,000 14,000,000 14,476,000 Sale of Capacity Rights,SAWPA&SSBSD - - - - Capital Assessment(IRWD) 2,706,905 5,375,D00 3,286,000 6,144,000 4,823,000 Non-Operating Revenue Subtotal 103,998,423 108,941,005 112,063,000 119,701,000 123,834,000 INTRADISTRICT REVENUES Annual lMadistrictJoint Equity Purchase/Sale 21,678,191 1,240,D00 2,710,000 3,700,000 3,500,000 FINANCING REVENUES Sale of Certificates of Participation Financing Revenues Subtotal SELF INSURANCE REVENUES Wodcers'Comp SFl 1,196,3D0 564,330 554,300 586,600 780,000 General Liability SFl 2,729,570 2,135,700 7,329,300 1,750,000 Subtotal-Self Insurance 2,693,900 2,690,000 1,915,900 2,530,000 Total Revenues L4f47,163,052 439,635,510 453,226,756 470,933,305 477,930,066 TOTAL AVAILABLE FUNDING $ 974,910,)AA I $ 984,741,746 $1,100,929,591 $ 1,156,520,621 Section 4—Page 8 Budget Resources ACTUAL APPROVED PROJECTED PROPOSED PROPOSED DESCRIPTION OR ACCOUNT TITLE 2016-17 2017-18 2017-18 2018-19 2019-20 OPERATING REQUIREMENTS Directors Fees $ 151.540 $ 152,600 $ 158,600 $ 158.600 $ 158,600 Salaries&Benefits 91,453,234 90,464,800 90,221,280 95,834,200 98,030,500 Administrative Expense 1,842,155 1,866,480 2,068,300 2,007,530 1,906,030 Printing&Publications 266,648 368,960 344,010 316,890 317,410 Training&Meetings 943,824 1,182,210 984,170 1,097,080 988,400 Operating Materials&Supplies 14,863,560 17,369,600 14,910,520 15,762,740 18,877,840 Contractual Expense 23,711,308 22,648,530 24,281,770 25,206,520 22,055,550 Professional Expense 3,528,669 4,162,000 3,912,600 5,393,480 4,602,370 Research&Monitoring 892,313 872,400 785,000 1,061,200 1,099,600 Repairs&Maintenance 14,797,760 16,160,160 15,749,440 21,715,360 19,321,260 Utilities 6,118,857 10,233,670 6,967,860 7,439,800 9,028,600 Other Materials,Supplies,&Services 2,369,297 3,768,540 3,495,460 5,250.190 4,196,820 Cost Allocation (20,137,574) (19,394,560) (20,266,650) (20,070,430) (20,378,610) Subtotal-Operating 140,801,591 149,854,390 143,612,360 161,173,160 160,204,370 CAPITAL IMPROVEMENTS Joint Works Capital Improvements 95,730,304 112,118,000 101,937,900 141,667,427 101,324,658 Collection System Capital Improvements 43,951,666 35,943,000 22,396,100 32,874,449 35,702,600 Annual Intradistrict Joint Equity Purchase/Sale 21,678,191 1,240,000 2,710,000 3,700,000 3,500,000 Subtotal-Capital Improvements 161,360,161 149,301,000 127,044,000 178,241,876 140,527,258 FINANCING REQUIREMENTS Certificate of Participation Service 99,814,288 82.033,000 82,033,000 80,464.000 79.956,000 Lang Term Debt Reduction 80,616,110 Subtotal-Financing Req 180,430,398 82,033,000 82,033,000 80,464,000 79,956,000 SELF INSURANCE REQUIREMENTS Workers'Comp SFl 645,060 1,040,000 845,300 760,000 780,000 General Liability SFI 1,954.072 1,335,000 1,210,800 1,700.000 1,750,000 Subtotal-Self Insurance 2,599,132 2,375,000 2,056,100 2,460,000 2,530,000 TOTAL REQUIREMENTS 485,191,282 383,563,390 354,745,460 422,339,036 393,217,628 REVENUES OVER I(UNDER)REQUIREMENT 38,028,230 37,165,890 98,481,296 48,594,269 94,712,438 ENDING ACCUM.FUNDS&RESERVES $ 531,514,990 $ 591,346,670 $ 629,996,286 $ 678,590,555 $ 773,302,993 Section 4—Page 9 2018-19 & 2019-20 Budget BUDGET RESOURCES BY REVENUE AREA- FY 2018-19 Consolidated DESCRIPTION OR ACCOUNT TILE Revenue Area Rev Area 14 Total Proposed Proposed Proposed BEGINNING ACCUM. FUNDS&RESERVES $ 540,279,514 $ 89.716,772 $ 629,996.286 OPERATING REVENUES General Sewer Service User Fees 294,450,000 294,450,000 Permitted User Fees 18,320,000 - 18,320,000 O&M Joint Operating Assessment Service Fees(IRND) 2,647,240 2,647,240 O&M Collection System Assessment Service Fees(IRWD) - 1,726,580 1,726,580 O&M Sludge Disposal Assessment Service Fees(IRWD) - 9,775,000 9,775,000 SAWPA Assessments 3,213,790 76,210 3,290,000 Interest 5,204,000 1.306,000 6,510.000 Niscellaneous Receipts 8,624,585 273,000 8,897,585 Operating Revenue Subtotal 329,812,375 15,804,030 345,616,405 NON-OPERATING REVENUES Property Tax Allocation 85,842,000 2.424,000 88,266,000 Redevelopment Agency Pass Thru 10,981,000 310,000 11,291,000 Subtotal-Taxes 96,823,000 2.734,000 99,557.000 Capital Facilities Capacity Charge 14,000,000 - 14,000.000 Sale of Capacity Fights,SAWPA&SSBSD - - - Capital Assessment ill 6,144,000 6,144,000 Non-Operating Revenue Subtotal 110,823,000 8,878,000 119,701,000 INTRADISTRICT REVENUES Annual Intradistrict Joint Equity Purchase/Sale 3,700,000 3,700,000 FINANCING REVENUES Sale of Certificates of Participation - - - Intradistrict Loans,Advances&Repayments Financing Revenues Subtotal SBLF INSURANCE REVENUES Workers'Conp SFI 572,800 13,800 586,600 General Liability SFI 1,298,100 31,200 1,329,300 Subtotal-Self Insurance 1,870,900 45,000 1,915,900 Total Revenues 446,206,275 24.727,030 470,933,306 TOTAL AVAILABLE FUNDING $ 986,485,789 $ 114,443,802 $ 1,100,929,591 Section 4—Page 10 Budget Resources Consolidated DESCRIPTION OR ACCOUNT TITLE Revenue Area Rev Area 14 Total Proposed Proposed Proposed OPERATING REQUIREMENTS Directors Fees $ 154,873 $ 3,727 $ 158,600 Salaries &Benefits 87,421.260 8,412,940 95,834,200 Administrative Expense 1,831,300 176,230 2,007,530 Printing&Publications 289,070 27,820 316,890 Training&Meetings 1,000.770 96,310 1,097,080 Operating Materials and Supplies 14,378,980 1,383,760 15,762,740 Contractual Expense 22,993,730 2,212,790 25,2M,520 Professional Expense 4,920,010 473,470 5,393,480 Research&Monitoring 968,040 93,160 1,061,200 Repairs&Maintenance 19,809,050 1,906,310 21,715,360 Utilities 6,786,690 653,110 7,439,800 Other Materials, Supplies,&Services 4,789,290 460,900 5,250,190 Cost Allocation (18,318,723) (1,751,707) (20,070,430) Subtotal.Operating 147,024,340 14.148,820 161,173,160 CAPRAL IMPROVEMENTS Joint Works Capital Improvements 136,680,708 4,986,719 141,667,427 Collection System Capital Improvements 32,874,449 32,874,4 !) Annual Intradisltict Joint Equity Purchase/Sale 3,700,000 3,700,000 Subtotal-Capital Improvements 169,556,167 8,686,719 178,241,876 FINANCING REQUIREMENTS Certificate of participation Service 80,464,000 - 80,464,000 Long Term Debt Reduction Subtotal-Financing Requirements 80,464,000 80,464,000 SELF INSURANCE REQUIREMENTS Workers'Comp SFl 742,100 17,900 760,000 General Liability SFI 1,660,000 40,000 1,700,000 Subtotal-Self Insurance 2,402,100 57,900 2,460,000 OTHER CASH OUTLAYS Joint Equity Sale to IRWD Subtotal-Other Cash Outlays TOTAL REQUIREMENTS 399,445,597 22,893,439 422,339,036 REVENUES EXCEEDING REQUIREMENTS 46,760,678 1,833,591 48,594,269 ENDING ACCUMULATED FUNDS&RESERVES $ 587,040,192 $ 91,550,363 $ 678,590,555 Section 4—Page 11 2018-19 & 2019-20 Budget BUDGET RESOURCES BY REVENUE AREA-FY 2019-20 Consolidated DESCRIPTION OR ACCOUNT TITLE Revenue Area Rev Area 14 Total Proposed Proposed Proposed BEGINNING ACCUM.FUNDS&RESERVES $ 587,040,192 $ 91,550,363 $ 678,590,555 OPERATING REVENUES General Sewer Service User Fees 299,084,000 - 299,084,000 Permitted User Fees 18,538,000 18,538,000 O&MJoint Operating Assessment Service Fees (IRWD) - 2,622,520 2,622,520 O&M Collection System Assessment Service Fees (IRWD) - 1,795,840 1,795,840 O&M Sludge Disposal Assessment Service Fees(IRWD) 8,711,000 8,711,000 SAWPA Assessments, 3,343,746 78,254 3,422,000 Interest 5,968.000 1,255,000 7.223,000 Mscellaneous Receipts 6,428,206 1 241,500 6,669,706 Operating Revenue Subtotal 333,361,952 14,704,114 348,066,066 NON OPEPAT14G REVENUES Property Tax Allocation 90,500.450 2,179,000 92.679,450 Redevelopment Agency Pass Thou 11,576,550 279,000 11,855,550 Subtotal-Taxes 102,077,000 2,458,000 104,535,000 Capital Facilities Capacity Charge 14,476,000 - 14,476,000 Sale of Capacity Rights,SAWPA&SSBSD - - - Capital Assessment(IRWD) - 4,823,000 4,823,000 Non-Operating Revenue Subtotal 116,553.000 7,281,000 123.834,000 IN RADISTRICT REVENUES Annual Intradislrict Joint Equity Purchase/Sale 3,500,000 - 3,500,000 FINANCING REVENUES Sale of Certificates of Participation - - - Intradstrict Loans,Advances&Repayments - Financing Revenues Subtotal - - - SELF INSURANCE REVENUES Workers'Comp SFl 761,900 18,100 780,000 General Liability SFI 1,709,400 40,600 1,750,000 Subtotal-Self Insurance 2,471,300 58,700 2,530,000 Total Revenues 455,886,252 22,043,814 477,930,066 TOTAL AVAILABLE FUNDING $ 1,042,926,444 $ 113,594,177 $ 1,156,520,621 Section 4—Page 12 Budget Resources Consolidated DESCRIPTION OR ACCOUNT TITLE Revenue Area Rev Area 14 Total Proposed Proposed Proposed OPERATING REQUIREMENTS Directors Fees $ 154,920 $ 3,680 $ 158,600 Salaries&Benefits 89,996,530 8,033,970 98,030,500 Administmtiw Expense 1,749,820 156,210 1,906,030 Printing&Publications 291,400 26,010 317.410 Training&Meetings 907,400 81,000 988,400 Operating Materials and Supplies 17,330,730 1,547,110 18,871,840 Contractual Expense 20,248,010 1,807,540 22,055,550 Professional Expense 4,225,190 377,180 4,602,370 Research& Monitoring 1,009,480 90,120 1,099,600 Repairs&Maintenance 17,737,810 1,583,450 19,321,260 Utilities 8,288,670 739,930 9,028,600 Other Materials,Supplies,&Services 3,852,870 343,950 4,196,820 Cost Allocation (18,717.820) (1,660.790) (20,378,610) Subtotal.Operating 147,075,010 13,129,360 160,204,370 CAPITAL IMPROVEMENTS Joint Works Capital Improvements 97,758,058 3,566,600 101,324,658 Collection System Capital Improvements 35,702,600 35,702,600 Annual Intredistrict Joint Equity Purchase/Sale 3,500,000 3,500,000 Subtotal-Capital Improvements 133,460,658 7,066,600 140,527,258 FINANCING REQUIREMENTS Certificate of Participation Senlce 79,956,000 - 79,956,000 Long Term Debt Reduction Subtotal-Financing Real 79,956,000 79,956,000 SELF INSURANCE REQUIREMENTS Wo*ere Comp SFl 761,700 18,300 780,000 General Liability SFI 1,708,900 41,100 1,750,000 Subtotal-Self Insurance 2,470,600 59,400 2,530,000 OTHER CASH OUTLAYS hint Equity Sale to IRWD SUMotal-Other Cash Outlays TOTAL REQUIREMENTS 362,962,268 20,255,360 383,217,628 REVENUES E) EEDING REQUIREMENTS 92,923,984 1,788,454 94,712,438 ENDING ACCUMULATED FUNDS&RESERVES $ 679,964,176 $ 93,338,817 $ 773,302,993 Section 4—Page 13 2018-19 & 2019-20 Budget Proiected Reserves at June 30, 2018,2019 and 2020 Projected Proposed Proposed 6/30/2018 6/30/2019 6/30/2020 Cash Flow Requirements Operating Expenses $ 71,806,000 $ 80,587,000 $ 80,102,000 COP Payments 82,033,000 80,464,000 79,956,000 Operating Contingencies 14,361,000 16,117,000 16,020,000 Capital Improvement Program 241,813,286 284,103,555 382,658,993 Catastrophe&Self Insurance 57 000 000 57 000 000 57,000,000 Sub-total 467,013,286 518,271,555 615,736,993 Capital Replacement& Refurbishment 62,515,000 63,765,000 65,040,000 COP Service Required Reserves 100,468,000 96,554,000 92,526,000 Total $ 629,996,286 $ 678,590,555 $ 773,302,993 Accumulated Funds and Reserves Policy A cash Flow criterion will be established to fund Levels higher and lower than the target can be operations, maintenance and certificate of expected as a result of outlay variability in the annual participations expenses for the first half of the fiscal capital improvement programs. year, prior to the receipt of the first installment of the property tax allocation and the sewer service user A catastrophic loss or self-insurance criterion has fees which are collected as a separate line item on been established to fund potential losses from the property tax bill. The level of this criterion will be property damage, including fire, Flood and established as the sum of an amount equal to six earthquake; general liability; and for workers' months operations and maintenance expenses and compensation. This criterion is intended to the total of the annual debt(COP) service payments supplement purchased insurance policies, FEMA due in August each year. disaster reimbursements and State disaster reimbursements. The potential infrastructure loss An operating contingency criterion will be established from a major earthquake has been estimated at to provide for non-recurring expenditures that were $495 million. The level of this reserve has been set not anticipated when the annual budget and sewer to fund the District's non-reimbursed costs,estimated service fees were evaluated and adopted. The level to be$57 million. of this reserve will be established at an amount equal to ten percent of the annual operating budget. A capital replacement/renewal criterion policy has been established to provide thirty percent of the A capital improvement criterion will be maintained to funding to replace or refurbish the current collection, fund annual increments of the capital improvement treatment and disposal facilities at the end of their program. The long-term target is for one half of the useful economic lives. The current replacement capital improvement program to be funded from value of these facilities is estimated to be borrowing and for one half to be funded from current $10.8 billion. The initial criterion level was revenues and reserves. With this program in mind, established at $50 million, which will be augmented the target level of this criterion has been established by interest earnings and a small portion of the annual at one half of the average annual capital improvement sewer user fee,to meet projected needs over the next program over the next ten years. 20 years. Section 4—Page 14 Projected Reserves Proposed Ending Reserves $900 (in millions) $808 $800 $]]3 $]08 $]00 $6]9 $593 $600 $525 $530 $551 $500 $481 $498 $400 $300 $200 $100 $- FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Provisions of the various Certificate of Participation (COP) issues require debt service reserves to be under the control of the Trustee for that issue. These funds are not available for the general needs of the District and must be maintained at specified levels. Accumulated funds exceeding the levels specified by District policy will be maintained in a rate stabilization fund. These funds will be applied to future years' needs in order to maintain rates or to moderate annual fluctuations. There is no established target for this group. Section 4—Page 15 2018-19 & 2019-20 Budget Orange County Sanitation District Consolidated Cash Flow Projections Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary Ref Description 18.19 1&20 20.21 21-22 22-23 23-24 Revenues. 1 General User Fees 294,450,000 299,084,000 303,743,000 308,428,000 313,138,000 321,624,000 2 Permitted User Fees 18,320,000 18,538,000 18,757,000 18,976,000 19,194,000 19,632,000 3 IRWDAssessments 20,292,820 17,952,360 14,196,350 17,829,840 18,795,780 17,238,390 4 SAWPA Assessments 3,290,000 3,422,000 3,559,000 3701,000 3,849,000 4,003,000 5 Property Taxes 99,557,000 104,535,000 109,762,000 115,250,000 121,013,000 127,064,000 6 New OJPlssues - - - - - - 7 Merest Revenues 6,510,000 7,223,000 7,869,000 7,545,000 6,472,000 8,321,000 8 Capital Facillies Capacity Charges 14,000,000 14,476,000 10,445,000 11,085,000 11,729,000 11,801,000 9 Other Revenues 14,513,485 12,699,706 11,605,495 23,679,843 25,153,148 13,672,671 10 Revenues 470,933,305 477,930,065 479,936,845 506,494,893 519,343,928 523,356,061 Requirements: 11 Oper BMce&p(4.0%yr) 161,173,160 160,204,370 163,731,000 173,162,000 178,120,000 194,221,000 12 Capital lrryrovenent Program(C1 ) 177,571,000 148,997,000 217,021,000 371,087,000 378,421,000 311,892,000 13 Leas:CP Savings&Deferrals (17,307,124) (14,899,742) (21,702,0BO) (29,686,967) (22,705,253) (9,356,772) 14 Future Rehabilitation and Replacem 14.278,000 2,93g000 7,242,000 17,262,000 25,791,000 29,329,000 15 COP Service(50%,30 yrs) 80,464,000 79,966,000 76,019.000 72,472,000 72,466,000 72,470,000 16 Reduction of Long-Term LiabilAes - - - - - - 17 Other Requirements 6,160,000 6,030,000 2,530,000 2,530,000 2,530,000 2,530,000 18 Requirements 422,339,036 383,217,628 444,840,920 606,826,033 634,622,747 591,085,228 19 Revenues-Requirements 48,594,269 94,712,433 35,095,925 (100,331,350) (115,278,819) (67,729,167) Accumulated Funds: 20 Beginning of Year 629,996,286 678,590,555 773,302,993 808,398,918 708,067,56E 592,788,749 21 Fnd of Year 678,590,555 773,302,993 808,398,918 708,067,568 592,788,749 525,059,582 22 Consolidated Reserve Policy 527,957,000 524,114,000 519,790,000 519,620," 520,187,000 521,336,000 23 Over lOnder)Reserve Policy' 150,633,555 249,188,993 288,608,918 188,447,58E 72,601,749 3,723,582 Sewer Service User Fees: 24 Avg SFRAnnual User Fee $335 $339 $343 $347 $351 $359 25 Percentage Change 1,21% 1,19% 1.18% 1,17% 1,15% 2,28% 26 Equivalent Dw eling Units 923,730 926,501 929,281 932,069 934,865 937,670 27 SFR Connection Fee $4,228 $4,601 $4,973 $5,346 $5,719 $5,736 28 Outstanding COPe $965,539,815 $925,257,565 $887,211,498 $851,126,075 $813,575,753 $774,624,983 Reserve Policy 29 50%Next Year Operating 80,587,000 80,102,000 81,866,000 86,5B1,000 89,060,000 92.111,000 30 10%Next Year Operating 16,117,000 16,020,000 16,373,000 17,316,000 17,812,000 18,422,000 31 100%Next Year AUG COP Svc. 80,464,000 79,956,000 76,019,000 72.472,000 72,466,000 72,470,000 32 50%average ten-year CUP Bal. 133,470,000 133,470,000 133,470,000 133,470,000 133,470,000 133,470,000 33 CGR@10%Outstanding COPe 96,554,000 92,526,000 BB,721,000 85,113,000 81,358,000 77,462,000 34 SFI@$57mn 57,000,000 57,000,000 57,000,000 57,000,000 57,000,000 57,000,000 35 Repl B Refurb@2%lyr 63,765,000 65,040,000 66,341,000 67.668,000 69.021,000 70,401,000 36 'Reserve Reduction(in accordance w 8h Board action allowing a S40M reduction to town res 37 Total 527,957,000 524,114,000 519,790,000 519,620,000 520,187,000 521,336,000 CDPRatios 38 Sr Llen Cmerge,Mn 1.25 3.68 3.79 4.02 4.45 4.55 4.52 Section 4—Page 16 Cash Flow Projection Orange County Sanitation District Consolidated Cash Flow Projections Preliminary Preliminary Preliminary Preliminary 10-Year Ref Description 24-25 25-26 26-27 27-28 Total Revenues: 1 General Isar Fees 330,157,000 336,852,000 343,585,000 350,354,000 3,201,415,000 2 Perrritted User Fees 20,070,000 20,397,000 20,725,000 21,052,000 195,661,000 3 IRWDAssessments 16,656,660 14,941,840 14,999,130 15,803,790 168,706,960 4 SAWPA Assessments 4,163,000 4,329,000 4,502,000 4,683,000 39,501,000 5 Property Taxes 133,417,000 140,088,000 147,092,000 154,447,000 1,252,225,000 6 Naw COP Issues - - - - - 7 Interest Revenues 7,492,000 7,287,000 7,650,000 8,046,000 74,415,000 8 Capital Facill Capacity Charges 11,870,000 11,938,000 12,011,000 12,081,000 121,436,000 9 Other Revenues 7,717,482 7,598,000 7,725,000 7,854,000 132,218,830 10 Revenues 531,Wt,142 543,430,840 553,289,130 574,320,790 5,185,578,790 Requirements: 11 Oper&We Exp(4.0%yr) 190,525,000 197,039,000 203,769,000 210,722,000 1,822,666,530 12 Capital Improvement Program(CIP) 258,535,370 184,243,503 171,335,198 210,096,116 2,429,199,187 13 Less:CP Savings&Deferrals (7,756,061) (3,684,870) (3,426,704) (4,201,922) (134,727,495) 14 Future Rehabilitation and Replacement 58,956,000 74,634,000 82,925,000 61,585,000 374,932,000 15 COPService 72,460,000 72,467,000 68,667,000 72,819,000 740,260,000 16 Reduction of Long-Term Liabili[es - - - - - 17 Other Requirements 2,530,000 2,530,000 2,530,000 2,530,000 32,430,000 18 Requirements 575,250,309 527,228,633 525,799,494 553,550,194 5,264,760,222 19 Revenues-Requirements (43,707,167) 16,202,207 32,489,636 20,770,596 (79,181,432) Accumulated Funds: 20 Beginning of Year 525,059,582 481,352,415 497,554,622 530,044,258 629,998,286 21 Bid of Year 481,352,415 497,554,622 530,044258 550,814,854 550,814,854 22 Consolidated Reserve Policy 482,464,000 497623,000 521.339,000 526.589,001 526,589,001 23 Over(Under)Reserve Policy- (1,111,585) (68,378) 8,705,258 24,225,853 24,225,853 Sewer Service User Fees: 24 Avg SFRAnnual User Fee $367 $373 $379 $385 25 Rsrcentage Change 2.23% 1.63% 1.61% 1.58% 26 Equivalent D.velling Units 940,483 943,304 946,134 948,972 27 SFRConnection Fee $5,753 $5,770 $5,787 $5,804 28 Outstanding COPS $734,093,000 $692,165,000 $652,304,000 $606,631,000 Reserve Policy 29 50%Next Year Operating 95.263,000 98.520,000 101.885.000 105.361.000 30 10%Naxt Year Operating 19,053,000 19,704,000 20,377,000 21,072,000 31 100%Next Year AUG COP Svc. 72.460,000 72.467,000 68.667.000 72,819,000 32 50%average ten-year CIP Bal. 133,470,000 133,470,000 133,470,000 133,470,000 33 DSR@10%Outstanding COPS 73,409,000 69.217,000 65.230,000 60.663,000 34 SFI@$57mn 57,000,000 57,000,000 57,000,000 57,000,001 35 Repl&Refurb @ 2%/yr 71,809,000 73.245,000 74,710,000 76,204,000 36 'Reserve Reduction (40,000,000) (26,000,000) - - 37 Total 482,464.000 497,623,000 521,339.000 526,589.001 COP Ratios 38 Sr Lien Coverge,Mn 1.25 4,54 4,62 4,99 4,83 Section 4—Page 17 2018-19 & 2019-20 Budget This page was intentionally left blank. Section 4—Page 18 OPERATIONS OVERVIEW SECTION 5 Operations Budget Overview OPERATING REQUIREMENTS OCSD own and maintain the smaller laterals. OCSD relies on the cooperation and resources of the 25 The net operating requirements budget finances the satellite cities and agencies to maintain the smaller administrative, operations and maintenance, and laterals and to implement FOG control programs for program costs for collecting,treating,and recycling of the Food Service Establishments (FSEs) that wastewater. The departmental budgets are all discharge directly to the local collection systems. completely funded by the operating fund. The net Though the specifics vary, the programs generally operating budget for FY 2018-19 is$161.2 million and follow the basic approach of prohibiting FOG for FY 2019-20 is$160.2 million. discharges and mandating the use of kitchen Best Management Practices (BMPs) at the FSEs in their Following are descriptions of the major factors that jurisdictions. comprise the operating budget: In 2005, as the primary owner of both regional Regulatory Requirements: Many of the District's trunklines throughout Orange County and local sewer activities are either required or regulated by lines in the northwest Tustin area, OCSD assumed environmental permits issued by federal, state, and responsibility for initiating a commercial FOG control local regulatory authorities. These authorities and residential outreach program to comply with regulate effluent quality, air emissions, greenhouse Order No. R8-2002-0014 issued by the Santa Ana gases, stormwater quality, biosolids and hazardous Regional Water Quality Control Board. This order waste management, as well as extensive monitoring was later rescinded in favor of the Statewide General of all media. New and developing regulations also Waste Discharge Requirements for Sanitary Sewer drive future capital and operating expenses. Systems(Order No. 2006-0003-DWQ) issued by the Urban Runoff Program: The Urban Runoff program State Water Resources Control Board. On April 13, 2016, the Orange County Local Agency Formation was established to protect and improve the regional Commission approved East Orange County Water water quality of Orange s coastal watershed District's (EOCWD) application to accept the transfer accepting dry weather ur ur ban runoff into the of the sewers within OCSD's Service Area 7, which District's sewerage system. Since its creation as a included the Tustin area and several adjacent Di means of protecting the Orange County shoreline unincorporated areas of Orange County. The transfer from bacterial pollution carried by urban runoff, the of all assets was completed in August 2016. As of the program's role has expanded to include the mediation transfer, OCSD is no longer the administering of selenium-laden waters reaching the Upper authority for the FOG Control Program in the transfer Newport Bay. This rerouting of urban runoff from area. EOCWD has now transitioned into the stormwater pump stations, flood control channels, administering authority role for the northwest Tustin and natural conveyances before it reaches receiving area, while OCSD continues to manage a limited waters, allows the District to provide essential FOG Control Program for approximately 40 food regional public health and water quality protection. service establishments that discharge directly into Under the current urban runoff policy(Resolution No. OCSD-owned trunklines in the City of Orange. 13-09),the cities or agencies are authorized to divert Operating Chemicals: Chemicals are used for a maximum limit of 10 million gallons per day(MGD) disinfection, coagulation, and odor control programs. for all permitted urban runoff diversions combined. To regulate the quantity and quality of urban runoff Coagulants: Coagulant chemicals are used to discharged into OCSD's sewerage system, the enhance primary treatment solids removal,solids Resource Protection Division executes a discharge dewatering, waste solids thickening, and to agreement and issues a discharge permit for each control hydrogen sulfide in the digesters. diversion. OCSD continues to work with Orange County Watersheds to prioritize existing and Ferric chloride is an iron salt which is used with proposed diversion projects to ensure that the anionic polymer to increase the solids removal program's limited capacity is effectively utilized to efficiencies in the primary treatment process improve coastal water quality. and to control hydrogen sulfide levels in the Fats, Oils,and Grease(FOG)Control Program: As digester gas as required by AQMD Rule 431.1. a regional agency with trunklines throughout Orange Cationic polymer is added to digested sludge County, OCSD owns and maintains the larger prior to dewatering to improve the sludge and trunklines, while the cities and agencies that form water separation process. Cationic polymer is Section 5—Page 1 2018-19 & 2019-20 Budget also added to the waste activated sludge includes contracted services, materials and supplies, dissolved air flotation thickeners to thicken the and outsourced service agreements. solids before digestion. Utilities: The cost for utilities is a significant Odor Control: Under septic or anaerobic component of the operating budget. The largest utility conditions, sulfate-reducing bacteria can flourish cost incurred by the District is the electricity that is resulting in the accumulation of sulfides in the purchased to supplement generated power to operate liquid phase. One of the sulfide forms present is the plant processes. The central generation facilities hydrogen sulfide (1-12S). When released to the produce approximately 65 percent of the electricity vapor phase, this creates the potential for both usedforrunning the plants.In FY2005-06,thecentral odor and corrosion problems in the collection generation production was reduced in order to meet system. new air emission limits.This issue has been resolved by the installation of emission control systems on the • Sodium hydroxide is added in"shock doses"to engines at both plants. the sewers tmnkline for sulfide control. Sodium hydroxide is added over a period of 30 to 45 minutes at sufficient dosages to elevate the pH level. The high pH slug temporarily inactivates sulfate reducing bacteria and greatly reduces hydrogen sulfide generation. • The largest costs for collection system odor control are for ferrous chloride, magnesium hydroxide and calcium nitrate. These costs cover continuous treatment for odor control within four trunk lines. The contractor(s) provide(s) leased equipment and on-going labor for services such as maintenance,remote monitoring of the chemical feed rates, optimization,and field sampling. • Sodium hypochlorite, caustic soda, and granular carbon are used in plant process scrubbers to treat foul air, comply with SCAOMD permits, and prevent odor complaints. Residuals Management These costs are for hauling and beneficial reuse of wastewater solids recovered during the treatment process. Solids treated through the digesters, called biosolids or treated sewage sludge, can be recycled offsite via composting (about 60 percent)or land application on farm fields (about 40 percent). Most of the Districts residuals management costs are for hauling 30 truckloads of biosolids offsite every day. A smaller component of residuals management cost is non- recyclable grit and screenings waste that must be disposed of at a landfill. Repairs and Maintenance: Preventive maintenance and repair activities throughout the Districts expanded and upgraded treatment facilities and collection system continue to keep this budgetary category at a significant amount. This category Section 5—Page 2 Operations Summary Proposed Budget Comparisons by Department 2017-16 Budget Budget Revised 2017-18 2018-19 Percent 2019-20 Percent Department and Division Budget Projected Proposed Change Proposed Change General Manager's Office General Management Admin $ 2,911,810 $ 2.184,360 $ 2,938,490 0.92% $ 2,852,220 -2.94% Board Services 602,340 625,340 691,530 14,81% 712,760 3.07% public Affairs 1,108,900 1.076,190 1,081,500 -2.47% 1,062,000 -1.&0% Department subtotal 4,623,050 3.885,890 4,711,520 1.91% 4,626,980 -1.79% Human Resources Department Hmen Resources 4,038,470 3,806,670 4,171,570 3.30% 4,466,470 7.07% Risk Management 6,426,070 5,930,320 5,427,000 -15.55% 5,900,700 8.73% Department subtotal 10,464,540 9.736,990 9,598,570 -8.28% 10,367,170 8.01% Administrative Services Department Adnonisteve Services Adrrin 624,730 513,930 626,960 0.36% 651,860 3.97% Financial Management 3,833,990 4,214,860 3,834,170 0.00% 3,376,810 -11.93% Contracts,Ruch,&Materials Mgm 4,422,300 4,396,480 6,025,240 36.25% 4,594,440 -23.91% Information Technology 10,568,540 10,547,740 11,620,570 9.95% 11,982,540 3.11% Department subtotal 19,449,560 19,673,010 22,106,940 13.66% 20,595,650 -6.84% Eneironm antet Services Department Em ironnental Services Aduin 825,750 849,450 866,770 4.97% 882,970 1.87% Environmental Compliance 5,758,120 5,492,390 5,960,650 3,52% 5,955,020 -oD9% Laboratory&Ocean Monitoring 10,727.570 10,400,720 11,147,210 3.91% 11,496,290 3.13% Deparlmentsubtotal 17,311,440 16,742,560 17,974,630 3.83% 18,334,280 2.00% Engineering Department Engineering Admn 438,390 484,990 509,130 16,14% 528,930 3.89% Ranning 3,158.970 3,103,500 3,588,370 13.59% 3,626,870 1.07% Project Management Office 2,868,900 2,597,300 2,888,850 0,70% 2,946,130 1.98% Civil&Mechanical Engineering 8,629.930 8,276,590 8,834,460 2.37% 9,038,650 2.31% Electracal&Control System Engineering 5,235,710 4,846,160 5,422,590 3,57% 5,516,640 1.73% Department subtotal 20,331,900 19,308,540 21,243,400 4,48% 21,657,220 1.95% Operations&Maintenance Dept. O&M Administration 735,030 561,770 957,270 30.24% 966,690 0.98% Collection Facilities O&M 12,284,740 12,139,000 13,305,960 8,31% 14,348,730 7,84% Reel Services 1,965,050 1.973,190 2,108,870 7.32% 2,114,220 0.25% Rani l Operations 27,866,660 26,017,880 26,592,250 -4,57% 29,850,860 12,25% Rant No.2 Operations 19,389,450 19.596,890 20,357,180 4.99% 18,131,670 -10.93% Ran(No.l Maintenance 14,628,280 15,737,060 18,439,550 26,05% 16,768,240 -9,06% Maintenance Reliability&Planning 7,700.130 6.618,760 7,728,800 0.37% 7,299,200 -5.56% Ran(No.2 Maintenance 14,548,410 11,887,480 16,118,650 10,79% 15,522,070 -3,70% Department subtotal 99,117.750 94,532,020 105,608,530 6.55% 105,001,680 -0.571/6 Less: Cost Allocation (19,394,560) (20,266,650) (20,070,430) 3.48% (20,378,610) 1.54% Net Operating Requirements $151,903,680 $143,612,360 $161,173,160 6,10% $160,204,370 -0,60% Section 5-Page 3 2018-19 & 2019-20 Budget Proposed Budget Expense by Category 2017.18 Budget Budget Revised 2017.18 2018-19 Percent 2019.20 Percent Description Budget Projected Proposed Change Proposed Change Salaries,Wages&Benefits $ 93,361,330 $ 90,379,880 $ 95,992,800 2.82% $ 98,189,100 2.29% Administrative Expenses 2,026,550 2,068,300 2,007,530 -0.94% 1,906,030 -5.06% Printing&Publication 403,900 344,010 316,890 -21.54% 317,410 0.16% Training B Meetings 1,252,320 984,170 1,097,090 -12,40% 998,400 -9.91% Operating Materials&Supplies 15,724,300 14,910,520 15,762,740 0.24% 18,877,840 %76% Contractual SerNces 24,489,090 24,281,770 25,206,520 2.93% 22,055,550 -12.50% Professional Serdces 5,125,990 3,912,600 5,393,480 5.22% 4,602,370 -14.67% Research&Monitoring 811 785,000 1,061,200 19.32% 1,099,600 3.62% Repairs&Maintenance 15,945,110 15,749,440 21,715,360 36.19% 19,321,260 -11m% Utilities 7,898,590 6,967,860 7,439,800 -5,81% 9,028,600 21.36% Other Materials, Supplies,and Svc. 4,181,660 3,495,460 5,250,190 25.55% 4,196,820 -20.06% Cost Allocation (19,394,560) (20,266,650) (20,070,430) 3.48% (20,378,610) tsa% Net Operating Requirements $151,903,680 $143,612,360 $161,173,160 6.10% $160,204,370 -0,60% Cost to CollectlTreat l Million Gallons $ 2,24959 $ 2.124.91 $ 2,412.95 7,26% $ 2,398,45 -0,60% Flow,Million Gallons 67,525 67,585 66,795 -1,08% 66,795 0.00% Flow Per Day,MGD 185.00 185.16 183.00 -1,08% 183.00 0.00 Section 5—Page 4 Operations Summary Proposed Budget Allocation to Individual Revenue Areas Total Gallonage Flows, Million Gallons per Year(MG) Revenue 2017.18 Projected 2018.19 2019.20 Area Projected Increase Projected Percent Budgeted Percent No. Flow (MG) (MG) Flow (MG) of Total Flow (MG) of Total Consolidated 65,997 (772) 65,225 97.65% 65,245 97.68% 14 1,588 (18) 1,570 2.35% 1,550 2.32% TOTALS 67,585 (790) 66,795 100.00% 66,795 100.00% Average Daily Gallonage Flows, Million Gallons per Day(MGD) Revenue 2017.18 Projected 2018.19 2019.20 Area Projected Increase Budgeted Percent Budgeted Percent No. Flow (MGD) (MGD) Flow (MGD) of Total Flow (MGD) of Total Consolidated 181 (2) 179 97.81% 179 97.81% 14 4 - 4 2.19% 4 2.19% TOTALS 185 (2) 183 100.00% 183 10a00% FY 2018-19 Estimated Allocation of Total Costs to Revenue Areas Revenue Treatment Area Collection &Disposal Total Total No. Costs Costs Costs cost/MG Consolidated $28,792,820 $ 118,231,520 $ 147,024,340 $ 2,254.11 14-O&M 1,726,580 2,647,240 4,373,820 2,785.87 14-Sludge - 9,775,000 9,775,000 6,226.11 TOTALS $30,519,400 $ 130,653,760 $ 161,173,160 $ 2,41M5 FY 2019-20 Estimated Allocation of Total Costs to Revenue Areas Revenue Treatment Area Collection &Disposal Total Total No. Costs Costs Costs Cost/MG Consolidated $29,947,760 $ 117,127,250 $ 147,075,010 $ 2,254.20 14-O&M 1,795,840 2,622,520 4,418,360 2,850.55 14-Sludge 8,711,000 8,711,000 5,620.00 TOTALS $31,743,600 $ 128,460,770 $ 160,204,370 $ 2,398.45 Section 5—Page 5 2018-19 & 2019-20 Budget Proposed Budget Net Operating Expense by Line Item Adjusted %Budget %Budget Budget 2017-18 2018-19 Change to 2019-20 Change W Description 2017-18 Projected Proposed 2017-18 Proposed 2018-19 Salaries Wages, &Benefits Salaries &Wages Salaries &Wages $ 70,883,000 $ 68,157,300 $ 72,948,400 2.91% $ 74,101,100 1.58% Employee Benefits Retirement 10,792,800 10,809,900 10,739,100 -0.50% 10,850,600 1.04% Group Insurances 10,421,800 10,002,100 10,868.900 4.29% 11,605,000 6.77% Tuition B Certificate Reimb 102,000 126,200 128,700 26.18% 131,300 2.02% Edu.degrees,Cert. S Lic. 380,700 421,700 460,800 21.04% 460,800 0.00% Uniform Rental 110,600 131,200 131,200 18.63% 131,200 0.00% Workem'Compensatlon 554,330 594,680 586,600 5.82% 780,000 32.97% Unemployment Insurance 24,700 37,700 37,700 52.63% 37,700 0.00% EMT Supplemental Benefits 91,400 99,100 91,4W 0.00% 91,400 0.00% Salaries,Wages, &Benefits 93,361,330 90,379,880 95,W2,800 2.82% 98,189,100 2.29% Materials, Supplies, &Services Adminislralim Expenses Memberships 615,130 594,500 618,760 0.59% 619,350 0.10% Office Exp-Supplies 66,220 58,930 67,470 1.89% 68,240 1.141/6 Postage 320,570 298,990 43,270 -86.50% 43,330 0.14% Books&Publications 41,5W 35,110 38,070 .8.33% 40,640 6.75% Forms 550 930 960 74.55% 970 1.041/6 Small Computer Items 750,000 900,000 900,000 20.00% 900,000 0.00% Minor Furniture&Fixtures 232,550 179,840 339,000 45.78% 233,500 31.12% Printing& Publication Repro-In-House 243,960 179,460 198,040 -18.82% 198,430 0.20% Printing-Outside 112,560 107,140 60,370 46.37% 60,480 0.18% Notices &Ads 47,330 57,410 58,430 23.45% 58,450 0.03% Photo Processing 50 - 50 0.00% 50 0.00% Meetings&Training Meetings 198,620 132,740 167,360 -15.74% 175,510 4.87% Twining 1,053,700 851,430 929,720 -11.77% 812,890 -12.57% Operating Materials&Supplies Chem.Coagulants 5,225,000 5,243,110 5,489,080 5.05% 8,369,990 52.48% Odor Control 7,494,000 6,886,710 7,142,120 4.70% 7,415,980 3.839/6 Disinfection 307,600 217,820 253,000 -17.75% 288,000 13.83% Chemicals-Cogan Op. 342,000 316,440 326,860 4.43% 331,070 1.29% Miscellaneous Chemicals - 3,010 - Na - n1a Gas, Diesel, &Oil 565,790 517,370 582,640 2.98% 596,010 2.29% Tools 401,500 347,450 496,340 23.62% 399,140 -19.58% Safety Equipment/tools 517,290 540,830 559,690 8.20% 538,900 -3.71% Solv,Paint,Janitor Supplies 91,600 89,730 106,320 16.07% 113,200 6.471/6 Lab Chemicals&Supplies 587,160 596,410 624,570 6.37% 640,650 2.57% Misc.Operating Supplies 188,360 149,550 168,480 -10.55% 171,210 1.62% Property Tax Fees 4,000 2,090 13,640 241.00% 13,690 0.37% Contractual SeMces Solids Remosel 15,900,000 16,200A00 16,200.000 1.89% 12,500,000 -22.84% Other Waste Clap. 990,040 789,550 811,900 -17.99% 840,900 3.57% Groundskeeping 129,720 163,720 175,700 35.45% 193,000 9.85% Janitorial 366,440 357,480 435,000 18.71% 444,360 2.15% Outside Lab Services 250,000 139,000 210,000 -16.00% 260,000 23.81% Oxygen Plant Oper 375,000 320,000 330,000 -12.00% 340,000 3.03% County Serace Fee 658,700 483,000 497,490 -24.47% 512,410 3.00% Temporary SeMces 1.537,190 1,354,940 1,429,400 -7.01% 1,319,400 -7.70% Security Services 1,600,000 1,585,530 1,608,000 0.50% 1,608,000 0.00% Other 2,682,000 2,888,550 3,509,030 30.84% 4,037,480 15.06% Section 5—Page 6 Operations Summary Proposed Budget Net Operating Expense by Line Item (Continued) %Budget %Budget Budget 2017-18 2018-19 Change to 2019-20 Change to Description 2017-18 Projected Proposed 2017-18 Proposed 2018-19 Professional SeNces Legal 977,000 1,267,090 1,147,030 17.40% 1,148,820 0.16% Audit&Accounting 259,300 192,850 231,690 -10.65% 241,110 4.07% Engineering 1,758,000 978,210 1,985,460 12.94% 1,045,800 47.33% EnHro Scientific Consult 150,800 109,590 280,000 85.68% 180,000 -35.71% Software Prgm Consult 416,000 370,000 376,000 -9.62% 376,000 0.00% Advocacy Efforts 176,000 162,500 165,000 -6.25% 165,000 0.00% Industrial Hygiene Secs 50,000 40,000 50,000 0.00% 50,000 0,00% Labor Negotiation Sec 20,000 - 40,000 100.00% 80,000 100.00% Other 1,318,890 792,360 1,118,300 -15.21% 1,315,640 17.65% Research&Monitoring Enymn. Monitoring 369,200 310,000 511,200 38.46% 549,600 7.51% Air Quality Monitoring 95,200 50,000 100,000 5.04% 100,000 0.00% Research 425,000 425,000 450,000 5.88% 450,000 0.00% Repairs&Maintenance Materials&Sendces 13,078,200 13,032,850 18,445,730 41.04% 15,836,630 -14.14% SeNce Maint.Agreements 2,866,910 2,716,590 3,269,630 14.05% 3,484,630 6.58% Utilities Telephone 400,000 400,000 501,000 25.25% 501,100 0.02% Diesel For Generators 14,290 10,500 11,290 -20.99% 11,290 0.00% Natural Gas 780,500 515,130 576,100 -26.19% 597,140 3.65% Power 6,037,000 5,438,150 5,732,860 -5.04% 7,287,990 27.13% Water 666,800 604,080 618,550 -7.24% 631,080 2.03% Other Operating Costs Outside Equip Rental 107,600 128,770 132,000 22.68% 134,000 1,52% Insurance Premiums 32,000 26,200 35,500 10.94% 37,800 6.48% Prop&Gen Liab Insurance 2,110,870 2,110,870 1,299,300 -38.45% 1,720,000 32,38% Freight 71,560 85,900 87,050 21.65% 87,050 0.00% Misc. Operating Expense 259,250 301,870 210,250 -18.90% 249,980 18,90% Regulatory Operating Fees 715,900 679,000 749,000 4.62% 769,000 2.67% Contingency 281,000 - 715,000 154.45% 691,000 J.36% Prior year reappropriation 394,500 - 420,600 9.39% 406,500 -3.35% Loss on obsolete inventory 2,300 (3,630) 1,501,570 65185.65% 1,570 -99.90% Other Non-Oper Expense 216,680 166,480 99,920 -53.89% 99,920 0.00% Materials, Supplies,&Services 77,936,910 73,499,130 85,250,790 9.38% 82,393,880 J.35% Total Operating Requirements 171,298,240 163,879,010 181,243,590 5.81% 180,582,980 -0.36% Less Cost Allocation (19,394,560) (20,266,650) (20,070,430) 3.48% (20,378,610) 1.54% Net Operating Requirements $151,903,680 $143,612,360 $161,173,160 6.10% $160,204,370 -0,60°% Cost to Collect,Treat, & Dispose oft Million Gallons $ 2,249.59 $ 2,124.91 $ 2,412.95 $ 2,398.45 Flow, Million Gallons 67,525 67,585 66,795 66,795 Flow Per Day, MGD 185.00 185.16 183.00 183.00 Section 5—Page 7 2018-19 & 2019-20 Budget NOTES TO THE FISCAL YEAR 2018-19 and Uniforms - This budget projection is for uniforms 2019-20 OPERATIONS BUDGET provided to field and lab employees in accordance with employee MOU's. Salaries, Wages&Benefits Salaries& Wages-The proposed budget is set at Workers' Compensation - This item is used to 636.0 Full Time Equivalent (FTE) positions for maintain the level of accumulated reserves for FY 2018-19 and 2019-20. Provision has been workers' compensation self-insurance. The made in the proposed salaries for FY 2018-19 in amount recommended is$586,600 for FY 2018-19 order to comply with the terms of those current and $780,000 for FY 2019-20. The total estimated MOUs which extend through that fiscal year. expenditures for the workers' compensation Pending completion of the negotiation process, no program are set forth in detail in the Self-Insurance salary adjustments have been included for periods section. beyond the expiration of current MOUs. Unemployment Insurance -The District is on an Retirement - The District's employees are actual claims paid basis, which has historically members of the Orange County Employees' resulted in an overall lower cost because of Retirement System. Employees participate in one favorable claims history. This appropriation is of three plans depending on hire date: Plan G/H proposed at a level consistent with the prior year's (older), Plan B, or Plan U (newer, with a lower actual costs. retirement benefit). The employer's required contribution rate for Plan G/H has been decreased Memberships - The District has memberships in from 15.83 percent to 15.78 percent, Plan B has agencies such as the National Association of Clean been decreased from 10.30 percent to Water Agencies (NACWA), the National Water 10.21 percent, and Plan U has increased from Research Institute (NWRI), the Water Emergency 9.25 percent to 9.27 percent in FY 2018-19. In Response Organization of Orange County(WEROC), addition, for Plan G/H the District pays 3.5 percent the Water Environment Research Foundation on behalf of each employee. (WERF),the Information Technology Approval Group (ITAG), the California Association of Sanitation Group Insurance - This includes the District's Agencies(CASA),the Southern California Alliance of share of employees' medical and dental insurance Publicly Owned Treatment Works (SCAP), and the plans, and life and disability insurance premiums. Center for Demographic Research It also includes the other post-employment benefits that the District is obligated to pay for retirees.The Administrative Expenses-These accounts include FY 2018-19 and 2019-20 budgets includes an supplies, postage, technical journals and estimated 7.0 percent increase for medical publications,forms,small office equipment,and small insurance. The FY 2018-19 and 2019-20 budgets computer items. The small equipment and computer include estimated average annual increases for items cost less than $5,000 per item and exclude dental, vision, life, and disability insurance of items that are capitalized. 4.0 percent, 5.0 percent, 12.0 percent and Printing and Publication -The budget provides for 9.0 percent, respectively. in-house and outside reproduction costs and reflects Tuition & Certification Reimbursements -To an expanded management information system and encourage the self-development and training of administrative requirements as well as a continuing employees, the District has a tuition and demand by the public and regulatory agencies for certification reimbursement program. This information. This group of accounts also includes appropriation is set at $128,700 for FY 2018-19 costs for photo processing, advertisements, and and$131,100 for FY 2019-20. notices. Development Pay-To further promote employee Training&Meetings-Board member and staff travel efforts that increase job knowledge, skills, and has been significantly reduced in recent years. This abilities,the District has established this benefit for category includes meetings of professional societies; employees obtaining educational degrees and job- ongoing technical and safety training and materials related certificates/ licenses. The budget of for staff; expansion of the Leadership Academy $ elated 0 for FYtes/ licenses. 9 and 201 The is based on training program, training for computerized plant monitoring and control systems and training to allow estimated employee participation. for an adaptive and flexible work force. The District Section 5—Page 8 Notes to Operations Summary continues to place an emphasis on safety, technical, treatment plant bleach budgets will be$245,000 in leadership and management training. An amount FY 2018-19 and $280,000 in FY 2019-20. equal to approximately 1.6 percent of the regular salaries budget is allocated to training. Sodium Bisulfite — Sodium bisulfte is used for dechlorinalion of outfall effluent at Plant No. 2, if Operating Materials&Supplies required, to ensure that no residual chlorine is Chemical Coagulants-Chemical coagulants are discharged into the ocean. The sodium bisulfile used to enhance the primary treatment process by budgets are $5,000 in fiscal years 2018-19 and increasing the solids removal efficiencies and are 2019-20. used to control hydrogen sulfide levels in the digester gas. Gasoline, Off and Fuel-This group of accounts includes gasoline, oil, and diesel fuel required to The anionic polymer budget for FY 2018-19 is operate stationary treatment plant equipment as $418,000 with FY 2019-20 increasing to $431,000 well as approximately 300 pieces of major mobile because of a 3 percent anticipated inflation rate equipment such as cars, trucks, cranes, and increase. The cationic polymer budgets are generators.Also included in this group of accounts $1,876,000 for FY 2018-19 and $4,520,000 in is the cost of fuel for the compressed natural gas FY 2019-20 due to additional usage for the station. The cost of the natural gas is recovered dewatering centrifuges expected to be operational by selling the compressed natural gas as vehicle in July 2019. The projected ferric chloride budget fuel to outside users. The budgets for this group for FY 2018-19 is $3,195,000 and $3,419,000 for of items are expected to remain relatively the FY2019-20, reflecting expected price increases of same for the next two fiscal years. 7 percent each year. Other Operating Supplies - This group of Odor Control Chemicals - The District uses accounts is for miscellaneous items such as sodium hydroxide (caustic soda), and bleach as scrubber acids, activated carbon, solvents, the primary odor control chemicals within the cleaners, hardware, janitorial supplies, tools, treatment plants; muriatic acid is an odor control safety equipment, laboratory supplies, etc., that chemical used for cleaning the scrubbers. The are required to operate and maintain existing and treatment plant odor control chemicals budget expanding facilities. This group of accounts is reflects a $695,000 decrease from FY 2017-18 expected to remain relatively the same during since hydrogen peroxide is no longer being used in fiscal years 2018-19 and 2019-20. the foul air scrubbers and trunk sewers. New bio- scrubbers are efficient in capturing foul air from ContractualServices-The major component of this trunk sewers and optimization of caustic soda and category is biosolids removal and transportation bleach ensure effective foul air treatment. An costs. Contracts have been executed with firms for increase of $34,000 in FY 2019-20 is due to unit agricultural reuse of residual solids and composting rate increases. for biosolids disposal. The total cost budgeted for FY 2018-19 solids removal is expected to remain the Ferrous chloride, magnesium hydroxide, calcium same as FY 2017-18 projected amount and the cost nitrate, and caustic soda are the primary odor is projected to decrease by $3,700,000 in FY 2019- control chemicals used within the collection 20 to $12,500,000 due to the sludge dewatering and system. The FY 2018-19 budgets for these odor control facilities coming online at both plants. chemicals reflect a $343,000 increase from FY 2017-18 in order to maintain odor complaints This category also includes appropriations for other within established performance levels, with an waste removal, groundskeeping services, janitorial increase of $240,000 in FY 2019-20 because of services, security services, county service fees, estimated unit rate increases and the planned temporary help to level out periodic increases in staff addition of a new dosing site on the Euclid trunk workload, long-term leaves, and position vacancies, sewer. outside laboratory services, manhole rehabilitation, CCTV services, industrial and line cleaning services. Disinfection Chemicals - Sodium Hypochlorite (Bleach)—The treatment plant bleach usage is for Professional Services- Includes General Counsel, disinfection of plant water and the control of special labor counsel, engineering, advocacy efforts, filamentous organisms in activated sludge in the audit and accounting services, software program secondary treatment process. The District consulting, and other technical consulting services. Section 5—Page 9 2018-19 & 2019-20 Budget Research and Monitoring - The costs in this natural gas budget is $576,000, with only a slight category consist of contract services to carry out the increase to$597,000 in FY 2019-20. extensive ocean monitoring program required by EPA Region IX under the provisions of the District's Electricity - Electricity is the largest utility cost NPDES permit; air quality monitoring costs; the incurred by the District. Purchased electricity is District's contribution to the Southern California used to run the plant processes; support building Coastal Water Research Project (SCCWRP) being and pump stations. The treatment plants and conducted under a joint powers agreement with other support buildings estimated consumption and Southern California municipal dischargers; and also resulting costs for electrical energy purchased provides for operational and ocean research and from Southern California Edison for the 2018-19 evaluation to develop optimum operating parameters fiscal year are $4,510,000 and the pump stations in the treatment plants. Overall this category of costs budget for the same period is $547,000. Other is expected to remain approximately the same for the support buildings power costs are $675,000, FY 2018-19 and FY 2019-20 budgets. completing the total estimated power costs for FY 2018-19. The increase of $1.6 million in Repairs and Maintenance-Around 96 percent of the FY 2019-20 is driven by increased power usage materials and services budgets support the associated with the sludge dewatering and odor maintenance of the collection system and the control facilities anticipated to be operational in treatment plants. These line items also reflect base July 2019. budgets for equipment maintenance. Out-sourced annual service contracts and maintenance Other Materials, Supplies, and Services agreements are also included. The FY 2018-19 and Insurance Premiums-Other than approximately FY 2019-20 budgets include repairs and maintenance $36,000 budgeted each year in the operating costs totaling $21.7 million and $19.3 million, section to insure the District's ocean vessel, the respectively.The increases following FY 2017-18 are cost for general liability and property insurance mainly due to two central generation engines are premiums is budgeted entirely within the Self- scheduled for overhaul at an estimated cost of Insurance section. $3.8 million and major rehabilitation of primary and secondary clarifiers at both plants is planned for Property& General Liability In-Lieu Insurance $1.6 million. Items previously deferred that are now Premium-This item is used to maintain the level being addressed in FY 2018-19 and FY 2019-20. of accumulated reserves for property and general Further,over 94 percent of service contracts are O&M liability self-insurance. The amount recommended maintenance-related or computer-related, that will is $1,299,000 for FY 2018-19 and $1,720,000 for provide services for the computer systems located FY 2019-20. The total estimated expenditures for throughout the collection facilities, treatment plants, the insurance program are set forth in detail in the and administration areas. Self-Insurance section. O&M contracted materials and services for FY 2018- Other Operating & Non-Operating Expenses - 19 include: Central Generation engine overhaul, Expenses not chargeable elsewhere, such as digester cleaning, primary and secondary clarifier annual regulatory fees assessed by the SCAQMD repairs, emergency generator maintenance, belt and SWRCB, freight and other miscellaneous press overhaul, interplant line inspection and items are recorded within these groups of maintenance, and other maintenance work including accounts. heating, ventilation and air conditioning, lighting and Cost Allocation - This represents direct labor and electrical equipment maintenance projects at both benefit charge outs and materials, supplies and treatment plants services cost allocation to the capital project where Utilities - The cost for utilities is a significant the related work was performed. component of the operating budget. In FY2018-19, Net Operating Requirements - This line item the overall cost for utilities is anticipated to be represents the net salary,wages, benefits, materials, $7.4 million for the FY 2018-19 budget, with an supplies, and services related to operating costs for increase to$9.0 million in FY 2019-20. collection, treatment, and disposal activities, after Natural Gas - Natural gas is purchased to charge backs to CIP. supplement the digester gas that is used to run the central generation facilities. The total FY 2018-19 Section 5—Page 10 OPERATING DIVISIONS SECTION 6 General Management Administration 110 BOARD OF DIRECTORS GENERAL MANAGER ASSISTANT PRINCIPAL GENERAL STAFF ANALYST MANAGER SECRETARY TO THE GENERAL MANAGER Staffing Trends 2018-19 & 2019-20 Authorized FTE Positions 6 Executive Managers 2.0 s-- _5-5_4_4 Supervisors/ Professionals 2.0 Total 4.0 2015 2016 2017 2018 2019 2020 Section 6- Page 1 2018-19 & 2019-20 Budget Service Description The mission of the General Management Administration Division is to work with the Board to establish standards, policies and procedures, and the overall goals and Strategic Plan of the agency. The Division reports the District's progress in meeting the established goals to support the District's mission, and provides general oversight of the District's operations. The General Manager reports directly to the Board of Directors and provides general oversight to all District operations, interagency relations, legislative activities, communications, and the Strategic Plan. The Assistant General Manager directly oversees the Public Affairs Division and Board Services Division. 2017-18 Performance Objectives 2017.18 Performance Results ♦ Ensure that the Board approved Strategic Plan is ♦ The Update to the Strategic Plan was adopted by implemented. the Board of Directors in December 2017. ♦ Respond to 90%of public records requests within ♦ On track to complete the year with a 96%response seven business days. rate. ♦ Conduct an annual destruction day with District ♦ Destruction Day will be held in June 2018. wide participation. ♦ Contribute to employee development through the ♦ At mid-year the BLAST program had already BLAST program by providing quality leadership reached over 50% of OCSD staff and was on track development training, materials, classes and to meet this goal. presentations by reaching at least 70%of OCSD staff. 2018-19&2019-20 Performance Objectives ♦ Create a new 5-year Strategic Plan &recommend for Board adoption. ♦ Manage operating expenditures to within 96%to 100%of the approved budget. ♦ Ensure the District does not exceed 636 FTEs. ♦ Contribute to employee development through the BLAST program by providing quality leadership development training, materials, classes and presentations by reaching at least 70%of OCSD staff. Performance Measures Summary 2016-17 2017-18 2018-19 2019.20 Justification Actual Projected Proposed Proposed ♦ Create new 5-year 100% 100% 100% 100% In-house standard Strategic Plan ♦ Operating Expenditures 97% 96% 96% 96% In-house standard ♦ Do not exceed 636 578.25 5 635 5 636 5 636 In-house standard FTEs ♦ BLAST Program reach 86% 72% 70% 70% In-house standard Section 6- Page 2 General Management Administration Budget Overview The FY 2018-19 S 2019-20 budgets for the General Management Administration Division reflect increase of 1 and a decrease of 3%over the prior year, respectively. The increase is primarily due to an increase in legal services and an increase in the General Manager's contingency and the contingency for reappropriations,which are set at 0.85%and 0.5%of the District's overall non-salary related operating budget, respectively. 2017-18 Adjusted Budget-Total O eratin Requirements $ 2,911,810 Salaries for Portion Changes: Transfer of Positions from/(lo)Other Didsions New or(decreased)FTE - Changes in Personnel Expenses: Other net salary adjustments (234,200) Change In OCERS retirement costs (33,100) Change in group insurance costs (38,700) Other benefit cost adjustments (700) Other Cost Adjustments: Decrease in temporary services (77,000) Increase in legal services 100,000 Decrease in software program consulting (40,000) Decrease in other professional serdces (52,000) Increase in General Managers contingency/reappropriations 470,100 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (67,720) 2018.19 Proposed Budget-Total Operating Requirements $ 2,938,490 Changes in Personnel Expenses Net salary adjustments (MOlNelaled, leave payoffs, wcancy,etc.) (38,300) Change in OCERS relimment costs (6,900) Change in group insurance costs 3,800 Other benefit cost adjustments 1,200 Other Cost Adjustments: Decrease in training (37,970) Increase in other professional serdces 30,000 Decrease in General Managers contingency/reappropriations (38,100) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and serNces - 2019-20 Proposed Budget-Total Operating Requirements $ 2,852,220 Section 6- Page 3 2018-19 & 2019-20 Budget Operating Expenses 20113W Revised 2017.18 2018.19 Budget 2019.20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 1,346,834 $ 1,272,300 $ 1,276,100 $ 965,600 (24,11%) $ 925,400 (4.16%) Supplies 219,027 398,240 340,750 373,210 (6.29%) 335,240 (10.17%) Professional&Contractual Services 664,718 434,000 451,840 345,000 (20.51%) 375,000 8.70% Research&Monitoring - - - - - - - Repairs&Maintenance 23 - - - - - - Utilities 95,619 130,000 107,460 110,000 (15,38%) 110,000 0.00% Other 8,739 677,270 8,210 1,144,680 69.01°� 1,106,580 (3,33%) Total $ 2,334,960 $ 2,911,810 $ 2,184,360 $ 2,938,490 1 0.92% 1 $ 2,852,220 2.94% Expenditure Trends $2,911,810 $2,938,490 $2,852,220 $2,171,418 $2.334,960 1,658,677 2015 2016 2017 2018 2019 2020 Section 6- Page 4 Board Services 120 ASSISTANT GENERAL MANAGER CLERK OFTHE BOARD DEPUTY CLERK PROGRAM OFFICE OF THE BOARD ASSISTANT(2) ASSISTANT Staffing Trends 2018-19 & 2019-20 Authorized FTE Positions 5 5-5- -5-5-5 Supervisors/ Professionals 2.00 a Administrative/Clerical 3.00 Total 5.00 2015 2016 ton 2018 2019 2020 Section 6- Page 5 2018-19 & 2019-20 Budget Service Description The mission of the Board Services Division is to provide exceptional customer service and support to the Board of Directors,district staff and the general public through the Clerk of the Board's Office. The Clerk ofthe Board's office promotes public trust and ensures transparency by: accurately recording and preserving the legislative actions of the District;safeguarding the vital,historic and permanent records of the District as theirofficial custodian;preparing and publishing agendas and notices in accordance with legal requirements;acting as filing officer for Statement of Economic Interest flings; receiving and processing summons and complaints fled against the District; and maintaining rosters of the Board of Directors, appointed committees and historical events. 2017.18 Performance Objectives 2017.18 Performance Results ♦ Mail Board agenda packages six calendar days prior to ♦ Achieved 100%success rate. Board meeting, 100%of the time, unless otherwise authorized by the General Manager. • Maintain accurate records of official actions taken by • Maintained &Published 100%successfully. the Board of Directors and publish those actions by 5:00 p.m. the day following a meeting. ♦ Respond to all Board of Directors, staff and public ♦ Responded to all inquiries within 24 hours. inquiries in a satisfactory time frame providing excellent internal and external customer service. ♦ Maintain legal compliance with various federal, state ♦ Achieved 100%success rate. and local laws (Brown Act, Political Reform Act, etc.). ♦ Maintain District Transparency Certificate of Excellence ♦ Achieved 100%success rate. (SDLF). 2018-19&2019-20 Performance Objectives ♦ Mail Board agenda packages six calendar days prior to Board meeting, 100% of the time, unless otherwise authorized by the General Manager. ♦ Maintain accurate records of official actions taken by the Board of Directors and post those actions on website by 5:00 p.m. the day following a meeting. ♦ Respond to 90%of public records requests within 7 business days. ♦ Respond to the Board of Directors, staff and public inquiries in a satisfactory time frame providing excellent internal and external customer service. ♦ Maintain legal compliance with various federal, state and local laws(Brown Act, Political Reform Act,etc.) ♦ Maintain District Transparency Certificate of Excellence (SDLF) Performance Measures Summary 2016-17 2017-18 2018-19 2019-20 Justification Actual Projected Proposed Proposed ♦ Board Agenda Packages 100% 100% 100% 100% In-house standard • Maintain&post accurate Records 100% 100% 100% 100% Legal compliance of Board Actions ♦ Respond to 90%of public N/A 100% 100% 100% In-house standard requests within 7 business days ♦ Respond to all inquiries in 100% 100% 100% 100% In-house standard satisfactory time frame ♦ Maintain Legal Compliance 100% 100% 100% 100% Legal compliance ♦ Maintain District Transparency 100% 100% 100% 100% In-house standard Certificate of Excellence Section 6- Page 6 Board Services Budget Overview The FY 2018-19&2019-20 budgets for the Board Services Division reflect an increase of 15%and an increase of 3%over the prior year, respectively. The increase is primarily due to an increase in legal services and adjustments to salaries and benefits. 2017-18 Adjusted Budget-Total O eratin Requirements $ 602,340 Salaries for Position Changes: Transfer of Positions from/(to)Other Divisions - Nm or(decreased)FTE - Changes in Personnel Expenses Other net salary adjustments(MOU-related, lease payoffs,vacancy, etc.) 26,600 Change in OCERS retirement costs 2,800 Change in group insurance costs 3,800 Other benefit cost adjustments 1,700 Other Cost Adjustments, Increase in legal sersices 50,000 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 1 /4M: 2018-19 Proposed Budget-Total Operating Requirements $ 691.530 Changes in Personnel Expenses, Net salary adjustments (MOU-related, leave payoffs, vacancy,etc.) 13,700 Change in OCERS retirement costs 1,200 Change in group insurance costs 5,800 Other benefit cost adjustments 1.500 Other Cost Adjustments: Decrease in training (900) Aggregate change in Other Categories Aggregate change in other materials, supplies, and services (70) 2019.20 Proposed Budget-Total Operating Requirements $ 712,760 Section 6- Page 7 2018-19 & 2019-20 Budget 2017-18 Operating Expenses 2016-17 Revised 2017.18 2018.19 Budget 2019.20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 510,189 $ 485,700 $ 490,600 $ 520,600 7.191/ $ 542,800 4.26% Supplies 29,916 66,540 54,960 70,730 6.301% 69,760 (1.37%) Professional&Contractual SeNces 118,610 50,000 79,730 100,000 100.001A 100,000 0.00% Research&Monitonng - - - - - - - Repairs&Maintenance - - - - - Utilities - - - - - - - Other 148 100 50 200 100.00% 200 0.00% Total $ 658,863 $ 602,340 $ 625,340 $ 691,530 14.81% $ 712,760 Expenditure Trends $658,863 $691,530 $712,760 $621,346 $602,340 $550,728 2015 2016 2017 2018 2019 2020 Section 6- Page 8 Public Affairs 140 ASSISTANT GENERAL MANAGER PUBLIC AFFAIRS SUPERVISOR SENIOR PUBLIC PUBLIC AFFAIRS AFFAIRS SPECIALIST SPECIALIST ADMINISTRATIVE GRAPHICS ASSISTANT COORDINATOR Staffing Trends 2018-19 & 2019-20 Authorized FTE Positions Supervisors/ Professionals 3.0 Administrative & Clerical 2.0 4�s—s—s—s—5 Total 5.0 2015 2016 2017 2018 2019 2020 Section 6- Page 9 2018-19 & 2019-20 Budget Service Description The Public Affairs Division provides services and implements programs to meet the communications and legislative needs of both internal and external audiences for the Orange County Sanitation District. The division plans and implements media relations, website content, community relations, community education and outreach, employee newsletter, intranet development, corporate identity program, collateral material and graphics development, presentation development, crisis communications and legislative affairs. The goal is to create a total communications program that promotes clear and transparent communications with all designated audiences and to promote the understanding of OCSD's mission to protect the environment. 2017-18 Performance Objectives 2017-18 Performance Results ♦ Provide services and implement • Al mid-year,this goal had already been exceeded with over programs that meet the communications 150 pieces of internal communication already produced.The needs of OCSD's internal audiences by year will conclude with the goal met and exceeded. producing a minimum of 70 internal ♦ Produced and circulated daily articles on MyOCSD,weekly communication pieces. blurbs on 3 Things to Know email, monthly news in Digester, and bi-monthly stories in Pipeline. ♦ Coordinated employee events including holiday luncheons, Take Your Kid to Work Day, Harvest Festival, Public Works Day, Honor Walk and the GWRS 10r`Anniversary event. ♦ Provide services and implement ♦ Al mid-year,this goal had already been exceeded with over programs that meet communications 13,000 pieces of external communication already produced. needs of OCSD's external audiences by The year will conclude with the goal met and exceeded. reaching a minimum of 3,000 people. ♦ Hosted more than 3,000 people that toured Plant No. 1, staff participated in 24 speaking engagements, staffed a booth at 10 community events. ♦ Support General Manager activities and ♦ Prepared key messages and talking points for Board Chair provide information to Board of and General Manager. Directors through the General ♦ Prepared/presented reports on division efforts to OCSD Manager's monthly report and the new Legislative and Public Affairs Committee. Board member orientation. ♦ Prepared the GM Monthly Report. 2018-19&2019.20 Performance Objectives ♦ Provide services and implement programs that meet the communications needs of OCSD's internal audiences by producing a minimum of 70 internal communication pieces. ♦ Provide services and implement programs that meet communications needs of OCSD's external audiences by reaching a minimum of 3,000 people. ♦ Support General Manager activities and provide information to Board of Directors through the General Manager's monthly report and the new Board member orientation. ♦ Proactive engagement in legislative advocacy efforts that could impact OCSD and the industry. Performance Measures Summary 2016-17 2017-18 2018-19 2019-20 Justification Actual Projected Proposed Proposed ♦ Internal Services& Programs Achieved Achieved Per Plan Per Plan Board Approved PAO Strategic Plan ♦ External Services& Programs Achieved Achieved Per Plan Per Plan Board Approved PAO Strategic Plan ♦ Board of Directors&GM Support Achieved Achieved Per Plan Per Plan Board Approved PAO Strategic Plan ♦ Legislative Advocacy N/A N/A Per Plan Per Plan Board Approved PAO Strategic Plan Section 6-Page 10 Public Affairs Budget Overview The FY 2016-17&2017-18 budgets for the Public Affairs Division reflect a decrease of 2%and 2%from the prior year, respectively. The decrease is primarily due to a decrease in temporary services and miscellaneous operating supplies expense. 2017-18 Adjusted Budget-Total O eratin Requirements $ 1,108,900 Salaries for Position Changes: Transfer of Positions homi(to)Other Divisions - New or(decreased)FTE - Changes in Personnel Expenses: Other net salary adjustments (MOU-related, leave payoffs,vacancy, etc.) (2,600) Change in OCERS retirement costs 2,100 Change in group insurance costs 30,700 Other benefit cost adjustments 400 Other Cost Adjustmenta: Decrease in training (13,400) Decrease in temporary sendces (30,000) Increase in other professional saruces 50,000 Decrease in miscellaneous operating supplies expense (60,800) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and serdces (3,800) 2018-19 Proposed Budget-Total O eratin Requirements $ 1,081,500 Changes in Personnel Expenses: Net salary adjustments (MOUaelated, leave payoffs,vacancy, etc.) - Change in OCERS retirement costs (100) Change in group insurance costs 5,600 Other benefit cost adjustments 1,600 Other Cost Adjusgnembi Decrease in other professional services (30,000) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 3,500 2019-20 Proposed Budget-Total O eratin Re uirements $ 1,062,000 Section 6-Page 11 2018-19 & 2019-20 Budget 2017.18 Operating Expenses 201(3-17 Revised 2017-18 2018-19 Budget 2019.20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 677,906 $ 658,600 $ 662,700 $ 689,200 4.65% $ 696,200 1.02% Supplies 48,896 73,600 61,310 56,400 (23.37%) 55,900 (0.89%) Professional&Contractual SeMces 265,379 235,000 178,430 255,000 8.51% 225,000 (11.76%) Research&Monitoring - - - - - - - Repairs&Maintenance - - - - - Utilities - - - - - Other 100,881 141,700 173,750 80,900 (42.91%) 84,900 4.94% Total $ 1,093,062 $ 1,108,900 $ 1,576,190 $ 1,081,500 (2.47%) $ 1,062,000 (1.80%) Expenditure Trends $983,607 $1,093,062 $1,108,900 $1,081,500 $1,062,000 664,180 2 15 2016 2017 2018 2019 2020 Section 6-Page 12 Human Resources Administration 160 GENERAL MANAGER DIRECTOR OF HUMAN RESOURCES HUMAN RESOURCES ASSISTANT(2) HUMAN RESOURCES & RISK MANAGER HUMAN RESOURCES HUMAN RESOURCES SUPERVISOR SUPERVISOR PRINCIPAL HUMAN PRINCIPAL HUMAN RESOURCES RESOURCES ANALYST ANALYST SENIORHUMAN SENIOR HUMAN RESOURCES RESOURCES ANALYST(2) ANALYST(2) HUMAN HUMAN RESOURCES RESOURCES ANALYST(2) ANALYST(2) Staffing Trends 2018-19 & 2019-20 Authorized FTE Positions I Executive Manager 1.0 Manager 1.0 Supervisors/ Professionals 12.0 161616161616 Administrative/Clerical 2.0 Total 16.0 2015 2016 2017 2018 2019 2020 Section 6 -Page 13 2018-19 & 2019-20 Budget Service Description The mission of the Human Resources Administration Division is to work with employees and management to ensure an effective and productive employment relationship. 2017.18 Performance Objectives 2017.18 Performance Results ♦ Continue with the development and implementation of ♦ Implemented. effective workforce planning/development and succession planning strategies. ♦ Update and implement recruitment plan to reduce ♦ Implemented. vacancies by 613012018. ♦ Meet all training requirements and meet the training level of ♦ Estimated at 45 hours per employee. service of 45 hours per employee. ♦ Manage the department's budget to within 96%to 100%of ♦ Projected at 84%of revised budget. the approved budget. 2018.19 &2019.20 Performance Objectives ♦ Complete labor negotiations with all units by 613012019. ♦ Continue with development and implementation of effective workforce planning/development and succession planning strategies. ♦ Implement a comprehensive employee relations and labor relations training program by the end of fiscal year 2019-20. ♦ Meet the training level of service of 45 hours per employee. ♦ Manage the department's budget to within 96%to 100%of the approved budget. Performance Measures Summary 2016-17 2017-18 2018-19 2019-20 Justification Actual Projected Proposed Proposed ♦ Approved labor contracts N/A N/A Implement Sustain HR Work Plan ♦ Workforce Planning/ Sustain Sustain Sustain Sustain OCSD Strategic Plan Workforce Development ♦ Comprehensive employee N/A N/A In Progress Implement HR Work Plan &labor relations training program ♦ Training Level of Service Sustain In Progress Sustain Sustain Level of Service ♦ Manage Budget 62% 84% 96-100% 96-100% In-house standard Section 6-Page 14 Human Resources Administration Budget Overview The FY 2018-19&2019-20 budgets for the Human Resources Administration Division reflect an increase of 3% and 7%over the prior year, respectively. The 2018-19 increase is primarily due to increases in budgeted retirement costs.The 2019-20 increase is primarily due to an increase in other professional services. 2017-18 Adjusted Budget-Total Operating Requirements $ 4,038,470 Salaries for Position Changes Transfer of Positions from/(to)Other Divisions - Nm or(decreased)FTE - Changes in Personnel Expenses Other net salary adjustments(MOU-related, lease payoffs,vacancy, etc.) 4,100 Change in retirement costs (13,800) Change in group insurance costs 10,000 Other benefit cost adjustments 114,500 Other Cost Adjustments Increase in labor negotiation services 20.000 Increase in other professional sendces 20,000 Decrease in other non-operating expense (23,220) Aggregate change in Other Categories Aggregate change in other materials, supplies, and services 1,520 2018-19 Proposed Budget-Total Operating Requirements $ 4,171,570 Changes in Personnel Expenses Net salary adjustments (MOU-related, leave payoffs, vacancy,etc.) 56,200 Change in retirement costs 6,100 Change in group insurance costs 18,800 Other benefit cost adjustments 7,400 Other Cost Adjustments: Decrease in training (33,300) Increase in labor negotiation services 40,000 Increase in other professional seryces 200,000 Aggregate change in Other Categories Aggregate change in other materials, supplies, and senlces (300) 2019.20 Proposed Budget-Total Operating Requirements $ 4,466,470 Section 6-Page 15 2018-19 & 2019-20 Budget 2017-18 Operating Expenses 2016.17 Revised 2017.18 2018.19 Budget 2019.20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 2,828,387 $ 3,163,400 $ 3,075,110 $ 3,278,200 3.631/. $ 3,366,700 2.70% Supplies 117,709 191,410 106,510 193,330 1.00°/ 159,730 (17.38%) Professional&Contractual Services 429,789 584,400 545,000 624,000 6.780% 864,000 38.46% Research&Monitoring - - - - - Repairs&Maintenance - - - - - Utilities - - - - - - - Other 34,423 99,260 80,0' 76,040 (23.39%) 76,040 0.00% Total $ 3,410,308 $ 4,038,470 $ 3,806,670 $ 4,171,570 3.30% $ 4,466,470 7.07% Expenditure Trends $4,195,426 $3,598,662 $3,410,308 $4,038,470 $4,171,570 $4,466,470 2 15 2016 2017 2018 2019 2020 Section 6-Page 16 Risk Management/Safety/Security 161 HUMAN RESOURCES AND RISK MANAGER A EALTH SOR EMERGENCY SENIOR SAFETY& EMERGENCY HEALTH PLANNING REPRESENTATIVE SPECIALIST (2) OCCUPATIONAL SAFETY&HEALTH HEALTH NURSE REPRESENTATIVE (S) ADMINISTRATIVE ASSISTANT Staffing Trends 2018-19 & 2019-20 Authorized FTE Positions Supervisors/ Professionals 10.0 12 1111111111 Administrative & Clerical 1.0 Total 11-0 2015 2016 2017 2018 2019 2020 Section 6 - Page 17 2018-19 & 2019-20 Budget Service Description The mission of the Risk Management/Safety/Security Division is to identify potential risk to the organization and provide solutions for mitigation or reduce the risk to acceptable levels. Through this process the Risk Management Division will create a safe, healthy,and secure environment for District staff, contractors, and visitors. It will partner with management and employees to take ownership of identifying risk and controlling the risk within their sphere of control. 2017-18 Performance Objectives 2017-18 Performance Results ♦ Safety Compliance Training ♦ Completed. ♦ Develop JSA's Planned ♦ Ongoing. ♦ Contractor Safety Analysis ♦ Ongoing. ♦ Third Party Safety Audit ♦ Ongoing. ♦ Revise Claim Procedure ♦ Ongoing. 2018-19&2019-20 Performance Objectives ♦ Ensure 100%of Safety Compliance Training is completed. ♦ Develop JSA's for high risk work activities. ♦ Contractor Safely Analysis to reduce injuries and accidents. ♦ Third Party Safety Audit of Safety Program to ensure compliance ♦ Implement Security Recommendations from security consultant. ♦ Implement Leading Safety Indicators to reduce injuries to employees. ♦ Revise Risk Register with newly identified risks. Performance Measures Summary 2016.17 2017-18 2018-19 2019-20 Justification Actual Projected Proposed Proposed ♦ Safety Compliance Training 99% 99% 100% 100% OCSD Strategic Plan ♦ Develop JSA's Ongoing Ongoing 100% Planned OSHA Requirement ♦ Contractor Safety Initiative N/A N/A Planned Planned Uniform Bid Evaluation ♦ Third Party VPP Feasibility 100% 100% Planned Planned GM Strategic Plan Audit ♦ Security Recommendations Ongoing Ongoing Planned Planned DHS Recommendations ♦ Implement Leading Safety N/A N/A Planned Planned Continuous Safety Indicator Improvement ♦ Revise Risk Register Complete Complete Planned Planned GM Strategic Plan Section 6-Page 18 Risk Management/Safety/Security Budget Overview The FY 2018-19 8 2019-20 budgets for the Risk Management/Safety/Security Division reflect a decrease of 16% and an increase of 9%from the prior year, respectively. These changes are primarily due to adjustments to the property and general liability insurance in-lieu premiums. 2017-18 Adjusted Budget-Total O eratin Requirements $ 6,426,070 Salaries for Position Changes, Transfer of Positions from/(to)Other Divisions New or(decreased)FTE - Changes in Personnel Expenses Other net salary adjustments (MOU-related, leave payoffs, wicancy, etc.) 14,900 Change in OCERS retirement costs (4,300) Change in group insurance costs 8,100 Other benefit cost adjustments 11,800 Other Cost Adjustments: Decrease in training (77,910) Decrease in other professional services (60,000) Decrease in property/general liability insurance in4ieu premium (811,570) Decrease in other non-operating expense (90,580) Aggregate change in Other Categories Aggregate change in other materials, supplies, and services 10,490 2018-19 Proposed Budget-Total Operating Requirements $ 5,427,000 Changes in Personnel Expenses Net salary adjustments (MOU-related, lease payoffs, vacancy, etc.) 33,500 Change in OCERS retirement costs 3,100 Change in group insurance costs 13,000 Other benefit cost adjustments 3,400 Other Cost Adjustments Increase in property/general liability insurance in-lieu premium 420,700 Aggregate change in Other Categories Aggregate change in other materials, supplies, and seMces - 2019-20 Proposed Budget-Total Operating Reguirements $ 5,900,700 Section 6-Page 19 2018-19 & 2019-20 Budget 2017.18 Operating Expenses 2016-17 Revised 2017.18 2018-19 Budget 2019.20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 1,187,277 $ 1,470,500 $ 1,230,370 $ 1,501,000 2.07% $ 1,554,000 3.53% Supplies 439,745 562,050 544,050 497,330 (11.51%) 497,330 0.00% Professional&Contractual Services 1,489,795 2,153,500 1,938,530 2,093,500 (2.79%) 2,093,500 0.00% Research&Monitoring - - - - - Repairs&Maintenance 2,486 3,050 1,500 3,050 0.00% 3,050 0.00% Utilities - - - - - Other 1,157,541 2,236,970 2,215,870 1,332,120 (40.45%) 1,752,820 31.58% Total $ 4,276,844 $ 6,426,070 $ 5,930,320 $ 5,427,000 (15.55%) $ 5,900,700 8.73% Expenditure Trends $6,426,070 $5,900,700 $5,427,000 $4,276,844 $3,340,064 $3,212,894 2015 2016 2017 2018 2019 2020 Section 6 - Page 20 Administrative Services Administration 210 GENERAL MANAGER DIRECTOR OF FINANCE & ADMINISTRATIVE SERVICES PRINCIPAL EXECUTIVE STAFF ASSISTANT ANALYST Staffing Trends 2018-19 & 2019-20 Authorized FTE Positions Executive Manager 1.0 Supervisors / Professionals 1.0 C Administrative /Clerical 1.0 3 -3-3-3-3 Total 3.0 2015 2016 2017 2018 2019 2020 Section 6-Page 21 2018-19 & 2019-20 Budget Service Description The mission of the Administrative Services Administration Division is to oversee the functions of the Financial Management, Contracts, Purchasing,& Materials Management,and Information Technology Divisions. This oversight includes both day-today operations and strategic planning. The division is the departmental liaison with Executive Management, the Administration Committee,the Board of Directors, and other departments of the District. 2017.18 Performance Measures 2017.18 Performance Results ♦ Submittal of annual sewer service fees (SSF)within ♦ Submittal completed in time for placement on property parcel database to the County by secured property tax bills. August 10'h. ♦ All Treasury investments will be in compliance with ♦ All Treasury investments in compliance 100%of the State Government Code 100%of the time. the time. ♦ Coordinate and uphold solicitation schedules in ♦ Solicitation schedules upheld at 100%completion. support of planned projects and emergency procurements. 2018-19 &2019-20 Performance Objectives ♦ Submit annual sewer service fees (SSF)within property parcel database to the County by August 10'h. ♦ Comply with the California State Government Code 100%of the time with all treasury investments. ♦ Coordinate and uphold solicitation schedules in support of planned projects and emergency procurements. Performance Measures Summary 2016-17 2017-18 2018-19 2019-20 Justification Actual Projected Proposed Proposed ♦ Submit SSF to the County Yes Expected Expected Expected In-house by August 1O' standard ♦ Investment Compliance Yes Yes Expected Expected In-house standard ♦ Uphold Solicitation 100% 100% 100% 100% In-house Schedules standard Section 6 -Page 22 Administrative Services Administration Budget Overview The FY 2018-19&2019-20 budgets for the Administrative Services Administration Division reflect an increase of 0.4%and an increase of 4%over the prior year, respectively. The increase is primarily due to adjustments in salaries and benefits costs. 2017.18 Adjusted Budget-Total O eratin Requirements $ 624,730 Salaries for Position Changes: Transfer of Positions fromi Other DiNsions - New or(decreased)FTE - Changes in Personnel Expenses Other net salary adjustments(MOU-related, lease payoffs, vacancy,etc.) 6,400 Change in OCERS retirement costs 4,200 Change in group insurance costs 2,100 Other benefit cost adjustments (10,200) Other Cost Adjustments No other significant cast changes Aggregate change in Other Categories Aggregate change in other matenals, supplies, and services (270) 2018.19 Proposed Budget-Total O eratin Requirements $ 626,960 Changes in Personnel Expenses: Net salary adjustments(MOU-related, lame payoffs, vacancy,etc.) 17,900 Change in OCERS retirement costs 2,400 Change in group insurance costs 3,700 Other benefit cost adjustments 900 Other CostAdjusfinents No other cost changes Aggregate change in Other Categories Aggregate change in other materials, supplies, and sendces - 2019-20 Proposed Budget-Total Operating Requirements $ 651,860 Section 6 - Page 23 2018-19 & 2019-20 Budget 2017.18 Operating Expenses 2016-17 Revised 2017-18 2018-19 Budget 2019-20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 486,354 $ 608,900 $ 498,700 $ 611,400 0.41% $ 636,300 4,07% Supplies - 770 540 500 (35.06%) 500 0.00% Professional&Contractual Senices 17,284 15,000 14,630 15,000 0.00% 15,000 0.00% Research&Monitoring - - - - - - - Repairs&Maintenance - - - - - Utilities - - - - - Other 60 60 60 60 0.0" 60 0.00% Total $ 503,698 $ 624,730 $ 513,930 $ 626,960 0.36% $ 651,860 3.97% Expenditure Trends $667,767 $649,214 $624,730 $626,960 $651,860 $503,698 2015 2016 2017 2018 2019 2020 Section 6-Page 24 Financial Management 220 DIRECTOR OF FINANCE& ADMINISTRATIVE SERVICES CONTROLLER ACCOUNTING ACCOUNTING SENIOR ACCOUNTING SUPERVISOR- SUPERVISOR- ACCOUNTANT- SUPERVISOR- Revenue Financial Debt Operations/ Reporting Management Planning SENIOR STAFF PRINCIPAL PRINCIPAL SENIOR ANALYST- ACCOUNTANT- ACCOUNTANT- Se r Service General Ledger Payroll ConsWction Fee Program Axounting& Budget STAFF PAYROLL NALYST- ACCOUNTANT- TECHNICIAN (2)- Ek' UNTANT- EF'ee ewerService General Ledger Payroll nsWction Program counting ACCOUNTING CrTING ASSISTANT II (2)- II (3)- Aaounts ayable Receivable& Permit Program Staffing Trends 2018-19 &2019-20 Authorized FTE Positions Manager 1.0 t8�19-19-19-19-19 Supervisors/ Professionals 11.0 Administrative & Clerical 7.0 Total 19-0 2015 2016 2017 2018 2019 2020 Section 6 -Page 25 2018-19 & 2019-20 Budget Service Description The mission of the Financial Management Division is to maintain financial oversight and administration of all District funds and accounts. The Financial Management Division is responsible for administering the treasury management and debt financing programs, the processing of cash receipts, accounts payable, accounts receivable, user fees, and payroll, accounting for fixed assets, and coordinating the capital and operating budget process throughout the District. The annual audit required by law and all financial reporting required of special districts by the State of California is coordinated and administered through this division. 2017.18 Performance Objectives 2017.18 Performance Results ♦ Issue monthly financial reports within 10 working days ♦ Goal was achieved. of the following month for 83%of the year. ♦ No more than 30 invoices for payment outstanding ♦ No more than 30 invoices for payment outstanding longer than 30 days during the completion of any one longer than 30 days during the completion of any accounts payable cycle 90%of the time. one accounts payable cycle 100%of the time. ♦ All sewer service fee rebate requests will be ♦ All sewer service fee rebate requests were processed processed within 90 days 90%of the time. within 90 days 100%of the time. ♦ Payroll processing will be completed on time 100%of ♦ Payroll was processed with an error-free rate of the time and error free>99.5%of the time. 100%on a bi-weekly and interim basis. ♦ All debt service payments will be paid electronically, ♦ All debt service payments were paid electronically, on the actual due dates, and error free 100%of the on the actual due dates,and error free 100%of the time. time. ♦ All treasury investments will be in compliance with the ♦ All treasury investments were in compliance with the California State Government Code 100%of the time. California State Government Code 100%of the 0me. 2018-19 8 2019-20 Performance Objectives ♦ Issue monthly financial reports within 10 working days of the following month for 83% of the year. ♦ No more than 30 invoices for payment shall be outstanding longer than 30 days during the completion of any one accounts payable cycle 90%of the time. ♦ The current backlog of rebate claims will be processed resulting in all claims being processed within 90 days of receipt. ♦ Payroll processing will be completed on time 100%of the time and error free>99.5%of the time. ♦ All debt service payments will be paid electronically, on the actual due dates, and error free 100%of the time. ♦ All treasury investments will be in compliance with the California State Government Code 100% of the time. Performance Measures Summary 2016-17 2015-16 2018-19 2019-20 Justification Actual Projected Proposed Proposed ♦ Financial Reports Issuance 83% 83% 83% 83% In-house standard Standard ♦ Accounts Payable Standard 100% 100% 90% 90% In-house standard ♦ Sewer Service Refund 90 Day 0% 0% 90% 90% In-house standard Standard ♦ Payroll Error Free Standard 99.7% 99.8% 99.5% 99.5% In-house standard ♦ Debt Service Payment Standard 100% 100% 100% 100% In-house standard ♦ Investment Compliance 100% 100% 100% 100% In-house standard Section 6-Page 26 Financial Management Budget Overview The FY 2018-19&2019-20 budgets for the Financial Management Division reflects a 0% increase and a decrease of 12%over the prior year, respectively. The minimal increase in 2018-19 is primarily due to the reduction in postage, printing services, and county service fee, offset by an increase in other professional services for a sewer flow and loading study. The 2019-20 decrease is primarily due to decreases in other contractual services. 2017-18 Adjusted Budget-Total O eratin Requirements $ 3,833,990 Salaries for Position Changes, Transfer of Positions from/go)Other Divisions - New or(decreased)FTE - Changes in Personnel Expenses Other net salary adjustments(MOU-related, lease payoffs,vacancy, etc.) 9,800 Change in OCERS retirement costs (15,300) Change in group insurance costs 12,400 Other benefit cost adjustments (1,200) Other Cost Adjustm ents- Decrease in postage (269,280) Decrease in outside printing services (82,350) Decrease In county sermce fee (161.210) Increase in other contractual seiNces 517,000 Decrease in other professional seNces Aggregate change In Other Categories Aggregate change in other materials, supplies,and services (9,680) 2018-19 Proposed Budget-Total Operating Requirements $ 3,834,170 Changes in Personnel Expenses Net salary adjustments (MOU-related, lease payoffs,vacancy,etc.) 36,700 Change in OCERS retirement costs 3,600 Change in group insurance costs 22.000 Other benefit cost adjustments 5,800 Other CostAdjustments, Increase in county service fee 14,920 Decrease in other contractual senlces (521,550) Decrease in other professional services (27,340) Aggregate change in Other Categories Aggregate change in other materials, supplies,and services 8,510 2019.20 Proposed Budget.Total Operating Re uirements $ 3,376,810 Section 6-Page 27 2018-19 & 2019-20 Budget 2017-18 Operating Expenses 20111W Revised 2017-18 2018-19 Budget 2019.20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 2,654,317 $ 2,533,900 $ 2,590,500 $ 2,539,600 022% $ 2,607,700 2.68% Supplies 41,544 394,710 373,360 37,300 (90.55%) 40,610 8.87% Professional&Contractual Sernces 538,077 905,000 1,250,620 1,256,890 38.88% 728,120 (42.07%) Research&Monitoring - - - - - - Repairs&Maintenance 18 - - - - - Utilities - - - - - Other 483 380 380 380 0.00% 380 0.00% Total $ 3,234,439 $ 3,833,990 $ 4,214,860 $ 3,834,170 1 0.00% 1 $ 3,376,810 Expenditure Trends $3,580,908 $3,638,618 $3,234,439 $3,833,990 $3,834,170 $3,376,810 2015 2016 2017 2018 2019 2020 Section 6 -Page 28 Contracts, Purchasing, & Materials Management 230 DIRECTOR OF FINANCE &ADMINISTRATIVE SERVICES CONTRACTS& PURCHASING MANAGER CONTRACTS PURCHASING MATERIALS SUPERVISOR SUPERVISOR CONTROL SUPERVISOR PRINCIPAL LEAD CONTRACTS SENIOR BUYER(3) STOREKEEPER(2) ADMINISTRATOR(2) SENIOR SENIOR CONTRACTS BUYER(2) STOREKEEPER(3) ADMINISTRATOR(3) CONTRACTS CONTRACTS/ ADMINISTRATOR(3) PURCHASING STOREKEEPER(� ASSISTANT(2) CONTRACTS1 PURCHASING ASSISTANT(3) Staffing Trends 2018-19 & 2019-20 Authorized FTE Positions Manager 1.00 32-3232-32-32-32 Supervisors/ Professionals 16.00 Administrative & Clerical 15.00 Total 32-00 2015 2016 2017 2018 2019 2020 Section 6 - Page 29 2018-19 & 2019-20 Budget Service Description The Contracts, Purchasing and Materials Management Division's goal is to provide equipment, services and information with the commitment to achieving the highest ethical, economic and progressive contracts and purchasing standards possible.The division is responsible for contract administration and procurement for all Districts'departments.The Districts warehouses receive, inventory and distribute supplies, materials and equipment to all departments in addition to inventory control analysis and surplus disposition. 2017.18 Performance Objectives 2017.18 Performance Results ♦ Re-implement the cycle count program and maintain ♦ Achieved a 97%accuracy rate or better. ♦ Obtain the 2017"Achievement of Excellence in ♦ AEP award received. Procurement' (AEP)award by meeting all National requirements. ♦ Successfully reorganize a bin reorganization for ♦ Completed Materials Management staff to ensure continuity and efficiency. ♦ Successfully implement a new surplus ordinance. ♦ Delayed ♦ Successfully implement two high-volume inventory ♦ Completed. commodity contracts to maximize savings and performance. 2018-19&2019-20 Performance Objectives ♦ Re-implement the cycle count program and maintain a 97%accuracy rate or better. ♦ Obtain the 2018"Achievement of Excellence in Procurement'(AEP)award by meeting all National requirements. ♦ Successfully implement a new surplus ordinance. ♦ Conduct District-wide procurement training. ♦ Successfully implement a new Purchasing Ordinance. Performance Measures Summary 2016-17 2017-18 2018-19 2019-20 Justification Actual Projected Proposed Proposed ♦ Cycle Count Achieved Achieved 97% 97% APICS standard ♦ AEP Award Obtained Obtained Obtain Obtain NPI, NAPM, NIGP, & CAPPO standards ♦ Surplus Ordinance N/A Delayed In Progress In Progress Best Practices ♦ Procurement Training N/A N/A In Progress In Progress Best Practices ♦ Purchasing Ordinance N/A N/A In Progress In Progress Optimizing Resources Section 6 -Page 30 Contracts, Purchasing, & Materials Management Budget Overview The FY 2018-19&2019-20 budgets for the Contracts, Purchasing,& Materials Management Division reflect an increase of 36% and a decrease of 24%over the prior year, respectively. These changes are primarily due to the one-time disposal of obsolete inventory in 2018-19. 2017-18 Adjusted Budget-Total O eratin Requirements $ 4,422,300 Salaries for Posigon Changes Transfer of Positions from/(to)Other Didsions - New or(decreased)FTE - Changes In Personnel Expenses Other net salary adjustments (MOUtelated, lease payoffs,racancy,etc.) 161,400 Change in OCERS retirement costs 6,400 Change in group insurance costs 23,100 Other benefit cost adjustments 3,800 Other Cost Adjustments Decrease in legal seraces (40,000) Decrease in audit and accounting seNces (25,000) Decrease in other professional seNces (25,000) Increase in freight charges 18,000 Increase in loss on obsolete inventory 1,500,000 Aggregate change in Other Calegories Aggregate change in other materials, supplies, and seNces (19,760) 2018.19 Proposed Budget-Total O eratin Requirements $ 6,025,240 Changes in Personnel Expenses Net salary adjustments(MOU-related, lease payoffs, �cancy, etc.) 31,600 Change in OCERS retirement costs 2,900 Change in group insurance costs 36,600 Other benefit cost adjustments 9,700 Other Cost Adjushnents: Decrease in temporary seNces (15,000) Decrease in loss on obsolete inventory (1,500,000) Aggregate change in Other Categories Aggregate change in other materials, supplies, and seNces (6,600) 2019.20 Proposed Budget-Total O eratin Re uirements $ 4,584,440 Section 6-Page 31 2018-19 & 2019-20 Budget 2017.18 Operating Expenses 2016-17 Revised 2017.18 2018.19 Budget 2019-20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 4,253,633 $ 4,125,500 $ 4,219,400 $ 4,320,200 4.72% $ 4,401,000 1.87% Supplies 43,929 58,160 33,190 44,900 (22.80%) 38,300 (14.70%) Professional&Contractual SeNces 93,630 160,000 57,650 70,000 (56251/.) 55,000 (21.43%) Research&Monitoring - - - - - Repairs&Maintenance 954 8,000 (4,190) - Utilities - - - - - Other 78,834 70,640 90,430 1,590,140 2151.05% 90,140 (94.33%) Total $ 4,470,980 $ 4,422,300 $ 4,396,480 $ 6,025,240 36.25% $ 4,584,440 (23.91%) Expenditure Trends $6,025,240 4,406,473 $4,410'532 $4,470,980 $4,422,300 $4,584,440 2015 2016 2017 2018 2019 2020 Section 6 - Page 32 Information Technology 250 DIRECTOR OF FINANCE& ADMINISTRATIVE SERVICES INFORMATION TECHNOLOGY SYSTEMS 8 OPERATIONS MANAGER PRINCIPAL INFORMATION RECORDS INFORMATION TECHNOLOGY MANAGEMENT ADMINISTRATIVE TECHNOLOGY ANALYST III SPECIALIST ASSISTANT ANALYST(2) INFORMATION INFORMATION INFORMAjINFORMATION TECHNOLOGY TECHNOLOGY TECHNO SUPERVISOR SUPERVISOR SUPERV SENIOR DATA PRINCIPAL SENIOR PRINCIPAL INFORMATION INFORMATION INFORMATION ON IONTECHNOLOGY MANAGEMENT TECHNOLOGY TECHNOLOGY TECHNOLOGY GYANALYST TECH II(7) ANALYST(2) ANALYST(3) ANALYST(3) (6)INFORMATION DATA INFORMATION INFORMATION INFORMATION IONTECHOLOGV MANAGEMENT TECHNOLOGY TECHNOLOGY TECHNOLOGY OGYANALYST III TECH 1(4) ANALYST III(2) TECH II ANALYST III(2) II(3) STAFF INFORMATION ANALYST TECHNOLOGY TECHI Staffing Trends 2018-19 &2019-20 Authorized FTE Positions Manager 1.0 Supervisors/ Professionals 31.0 Technical Staff 13.0 45-44-4545-4646 Administrative/Clerical 1.0 Total 46.0 2015 2016 2017 2018 2019 2020 Section 6 -Page 33 2018-19 & 2019-20 Budget Service Description The Information Technology Division provides support to the users of the District's information technology related assets and services, as well as developing and implementing technology solutions that best meet the needs of the District. The Division procures and manages computer hardware/software and provides end user support with a Service Desk that performs computer and telecommunications installations, moves, and changes. The Division is also responsible for the design, installation, maintenance,troubleshooting, and upgrades of all enterprise applications, networking infrastructure component and back-end computer system, wireless connectivity, plant radio system, public address system,fire system, cyber security infrastructure and system, reprographics, and copy center. Additionally,this Division work closely with every department and division in developing an understanding of the organization's software application and information requirements and provides systems analysis,design, custom programming, system implementation and integration, database/data warehousing and support. 2017-18 Performance Objectives 2017-18 Performance Results ♦ Replace obsolete computers ♦ Replaced 39%of total computers ♦ Critical system availability ♦ Critical system up time was greater than 90% ♦ Replace CIP Management System ♦ This project was transferred to Engineering ♦ Maintain a Safety Scorecard above 90%for overall. ♦ Safety Scorecard was at 100% 2018-19&2019-20 Performance Objectives ♦ Replace obsolete desktop, mobile, and server computers. Rotate desktop computers every 5 years, mobile computers every 3 years, and servers every 5 to 6 years. ♦ Complete the implementation of a high availability server environment to improve disaster recovery and business continuity capabilities. ♦ Maintain a Safety Scorecard above 90%for overall. ♦ Cyber Security Awareness/Protection—report on the overall effectiveness of the phishing campaign. ♦ Manage Operating Budget within 96%to 100%of approved budget. Performance Measures Summary 2016.17 2017-18 2018-19 2019.20 Justification Actual Projected Proposed Proposed ♦ Replace Obsolete 7% 39% 25%of total 25%of total In-house standard Computers computers computers ♦ Implement Server High N/A N/A 100% Maintain In-house standard Availability Complete ♦ Safety Scorecard 100% 100% >90% >90% In-house standard ♦ Cyber Security N/A N/A Report Report GM Work Plan Awareness/Protection percentage percentage ♦ Manager Operating 86% 102% 96-100% 96-100% In-house standard Budget Section 6-Page 34 Information Technology Budget Overview The FY 2018-19&2019-20 budgets for the Information Technology Division reflect an increase of 10% and 2% over the prior year, respectively. The increase is primarily due to salary and benefit increases, the addition of one FTE position, and increases in small computer items, telephone expense and service maintenance agreements. 2017.18 Adjusted Budget-Total O eratin Requirements $ 10,568,540 Salaries far PD"on Changes: Transfer of Positions from/(to)Other Divisions - Naw or(decreased)FTE 119,300 Changes In Personnel Expenses: Other net salary adjustments(MOU-related, lease payoffs,vacancy, etc.) 309,700 Change in OCERS retirement costs 33,000 Change in group insurance costs 66,800 Other benefit cost adjustments (6,000) Other Cost Adjustments: Increase in small computer items 150,000 Decrease in imhouse reproduction services (40,500) Increase in outside printing services 22,220 Increase in temporary serNces 85,000 Increase in other contractual services 20,000 Decrease in repairs&maintenance services and materials (32,000) Increase in service maintenance agreements 200,000 Increase in telephone 100,000 Increase in outside equipment rental 19,900 Aggregate change in Other Categories Aggregate change in other materials, supplies, and services 4,610 2018.19 Proposed Budget-Total Operating Requirements $ 11,620,570 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs,vacancy,etc.) 82,100 Change In OCERS retirement costs 7,700 Change in group insurance costs 54,400 Other benefit cost adjustments 14,300 Other Cost Adjustments Increase in service maintenance agreements 200,000 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 3,470 2019-20 Proposed Budget-Total Operating Requirements $ 11,982,540 Section 6-Page 35 2018-19 & 2019-20 Budget 2017.18 Operating Expenses 2016.17 Revised 2017.18 2018.19 Budget 2019.20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 6,545,043 $ 6,616,000 $ 6,531,900 $ 7,138,800 7.90% $ 7,297,300 2.22% Supplies 1,231,493 1,108,010 1,199,440 1,244,280 12.30% 1,247,750 0.28% Professional&Contractual Services 288,030 260,000 268,000 365,000 40,38% 365,000 0.00% Research&Monitoring - - - - - Repairs &Maintenance 1,573,165 2,132,000 2,083,000 2,300,000 7.88% 2,500,000 8.70% Utilities 324,239 400,000 400,000 500,000 25.00% 500,000 0.00% Other 68,654 52,530 65,400 72,490 36.00Y° 72,490 0.00% Total $10,030,624 $10,568,540 $10,547,740 $11,620,570 9.95% $11,982,540 3.11% Expenditure Trends $11,620,570 $11.982,540 9,8521825 $10,190,477 $10,030,624 $10,568,540 2015 2016 2017 2018 2019 2020 Section 6 -Page 36 Environmental Services Administration 610 GENERAL MANAGER DIRECTOR OF ENVIRONMENTAL SERVICES EEXECUTIVE ASSISTANT Staffing Trends 2018-19 & 2019-20 Authorized FTE Positions Executive Manager 1.00 Administrative/Clerical 1.00 2-2-2-2 Total 2.00 0-0 20Is 2016 2017 2018 2019 2020 Section 6 - Page 37 2018-19 & 2019-20 Budget Service Description The Environmental Services Administration Division provides leadership, support, and oversight of the Environmental Services Department staff whose mission is: Protecting staff,facilities,the environment,and the public by influencing,tracking and ensuring compliance with environmental permits and regulations; providing laboratory services for plant process optimization, recreational water quality, and industrial discharge monitoring; and controlling industrial, commercial and residential discharges to create water, biosolids, and energy for reuse. 2017.18 Performance Objectives 2017.18 Performance Results ♦ Manage operating expenditures to within 96%to ♦ On Track to meet goal of 96-100% 100% of the approved budget. ♦ Ensure that reporting divisions achieve 90% of ♦ All objectives met except one compliance report individual performance objectives. was late. ♦ Ensure all environmental compliance reporting ♦ 19 of 20 compliance reports submitted on time. requirements are met on or before required One report was 5 days late due to needed submission date 100%of the time. correction found shortly before submission. ♦ Audit environmental permits every 3 years. • On track: audits included Stormwater and Air Quality. 2018.19&2019-20 Performance Objectives ♦ Manage operating expenditures to within 96%to 100%of the approved budget. ♦ Ensure that reporting divisions achieve 90% of individual performance objectives. ♦ Ensure all environmental compliance reporting requirements are met on or before required submission date 100% of the time. ♦ Conduct audits of all major environmental permits at least once every 3 years. Performance Measures Summary 2016.17 2017.18 2018.19 2019.20 Justification Actual Projected Proposed Proposed ♦ Manage Budget 106% 99% 96-100% 96-100% In-house standard ♦ Department Performance >90% >90% 2 90% 2 90% In-house standard & Objectives permit req. ♦ Compliance Reporting 100% 95% 100% 100% Required by permit Requirements ♦ Audit Environmental Permits 100% 100% 100% 100% In-house standard & Every 3 Years permit req. Section 6 -Page 38 Environmental Services Administration Budget Overview The FY 2018-19&2019-20 budgets for the Environmental Services Administration Division reflect an increase of 5%and 2%over the prior year, respectively. The increase is primarily due to salary and benefits adjustments and research and monitoring costs. 2017.18 Adjusted Budget-Total O eratin Requirements $ 825,750 Salaries for Position Changes Transfer of Positions from/(to)Other DiNslons New or(decreased)FTE - Changes in Personnel Expenses: Other net salary adjustments(MOU-related, lease payoffs,vacancy, etc.) 13,200 Change In OCERS retirement costs 3,600 Change in group insurance costs 1,400 Other benefit cost adjustments 200 Other Cost Adjustinents: Increase in research& monitoring 25,000 Aggregate change in Other Categories Aggregate change in other materials, supplies, and seMces (2,380) 2018-19 Proposed Budget-Total Operating Requirements $ 866,770 Changes in Personnel Expenses: Net salary adjustments(MOU-related, lases payoffs, vacancy,etc.) 11,100 Change in OCERS retirement costs 1,700 Change in group insurance costs 2,400 Other benefit cost adjustments 700 Other Cost Adjustments: Aggregate change in Other Categories Aggregate change in other materials, supplies, and serdces 300 2019.20 Proposed Budget-Total Operating Requirements $ 882,970 Section 6 -Page 39 2018-19 & 2019-20 Budget 2017-18 Operating Expenses 2016.17 Revised 2017-18 2018-19 Budget 2019.20 Budget By Category Actual Budget projected proposed %Change proposed %Change Personnel $ 439,851 $ 386,300 $ 413,400 $ 404,700 4.76% $ 420,600 3.93% Supplies 14,428 13,450 11,050 12,030 (10.56%) 12,330 2.49% Professional&Contractual SeNces - - - - - Research&Monitoring 423,337 425,000 425,000 450,000 5.88% 450,000 0.00°/k Repairs&Maintenance - - - - - - - tltilities - - - - - Other (35) 1,000 - (96 40 .00%) 40 0.00% Total $ 877,581 $ 825,750 $ 849,450 $ 866,770 4.97% 1 $ 882,9701 1.87% Expenditure Trends $877,581 $825,750 $866,770 $882,970 2015 2016 2017 2018 2019 2020 Section 6 -Page 40 Resource Protection 620 DIRECTOR OF ENVIRONMENTAL SERVICES X EERING AGER OFFICE ASSISTANT SOURCE CONTROL ENGINEERING ENGINEERING SUPERVISOR SUPERVISOR SUPERVISOR PRINCIPAL LEADSOURCE SENIOR SENIOR ENVIRONMENTAL CONTROL ENGINEER ENGINEER SPECIALIST INSPECTOR SOURCE SWRCE CONTROL CONTROL ENGINEER ENGINEER(3) INSPECTORII(7) INSPECTORI(2) PRINCIPAL TECHNNMEM3) ADMINISTRATIVE ASSOCIATE TECHNICIAN(3) ASSISTANT ENVIRONMENTAL ENGINEER(3) SPECIALIST(2) PROGRAM SENIOR ASSISTANT(2) ENVIRONMENTAL SPECIALIST PROGRAM ASSISTANT(2) Staffing Trends 2018-19 &2019-20 Authorized FTE Positions Manager 1.0 Supervisors/ Professionals 16.0 Technical Staff 13.0 7\373737 Administrative/Clerical 7.0 Total 37.0 0 0 2015 2016 2017 2018 2017 2018 Section 6-Page 41 2018-19 & 2019-20 Budget Service Description The Resource Protection Division implements a comprehensive,federally-mandated Pretreatment Program which protects staff and community health,the environment, and OCSD's infrastructure and reuse initiatives. 2017.18 Performance Objectives 2017-18 Performance Results ♦ Meet 100%of regulatory deadlines for required pretreatment program reports. • To date 100%compliance. ♦ Implement new Local Limits and Prohibitions into all • To date 100%compliance. permits by June 2018. ♦ Issue and renew 100%of the industrial wastewater ♦ Staff issued and renewed 100%of the industrial permits prior to the expiration date. wastewater permits prior to the expiration dates. ♦ Complete all assigned inspections and monitoring of ♦ Staff completed all assigned inspections and Class I industrial permit holders. monitoring of Class I industrial permit holders. ♦ Continue to implement the fats, oil&grease(FOG) control program and strategies on a regional basis in • To date 100%compliance. conformance with the Wastewater Discharge Requirements Order. ♦ Support of GWRS, special projects and routine ♦ Staff is supporting GWRS,special projects and monitoring requirements. routine monitoring requirements. 2018-19&2019-20 Performance Objectives ♦ Ensure the division's expenditures are managed to 98-100%of proposed budget. ♦ Meet 100%of regulatory deadlines for required pretreatment program reports. ♦ Issue and renew 100%of the industrial wastewater permits prior to the expiration date. ♦ Complete all assigned inspections and monitoring of Class I industrial permit holders. ♦ Continue to implement the fats, oil&grease(FOG)control program and strategies on a regional basis in conformance with the Wastewater Discharge Requirements Order. ♦ Support of GWRS, special projects and routine monitoring requirements. Performance Measures Summary 2016.17 2017.18 2018-19 2019.20 Justification Actual Projected Proposed Proposed ♦ Manage Division Budget 101% 104% 100% 100% In-house Standard ♦ Meet 100%of Regulatory 100% 100% 100% 100% NPDES Permit Deadlines(Reports) Requirement ♦ Implement New Local Limits and Federal Pretreatment Ordinance Update 100% 100% N/A N/A Requirement ♦ Industrial Permit 100% 100% 100% 100% Federal Rule and Issuance/Renewal Permit Requirement ♦ Inspections/Monitoring 100% 100% 100% 100% Federal Rule and Permit Requirement ♦ Fats, Oil &Grease Program 100% 100% 100% 100% Permit Requirement ♦ Support GWRS, special projects, and routine 100% 100% 100% 100% Joint Agreement monitoring. Section 6-Page 42 Resource Protection Budget Overview The FY 2018-19 budget for the Resource Protection Division reflects an increase of 4%over the prior year primarily due to an increase in environmental consulting services.The 2019-20 budget reflects a minimal decrease due to decreases in furniture 8 fixtures,small tools expense, and environmental consulting services, largely offset by salary and benefits adjustments and increases in accounting and other professional services. 2015-16 Adjusted Budget-Total O eratin Requirements $ Salaries for Position Changes: Transfer of Positions fromi(to)Other Divisions 4.774,200 New or(decreased)FTE - Changes In Personnel Expenses: Other net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 399,500 Change in OCERS retirement costs 744,500 Change in group insurance costs 731,500 Other benefit cost adjustments 296,700 Other Cost Adjustments: Increase in administrative expense 13,830 Increase in training 8 meetings 52,220 Increase in tools 25,200 Increase in lab chemicals 8 supplies 27,500 Increase in outside lab services 18,000 Increase in temporary services 30,000 Increase in legal seMces 300,000 Increase in auditing and accounting services 65,000 Increase in enviro scientific consulting services 85,000 Increase in advocacy efforts 26,000 Increase in other professional services 170,000 Increase in air quality monitoring 85,000 Increase in regulatory operating fees 70B,900 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 10,170 2016-17 Proposed Budget-Total O eratin Requirements $ 8,563,220 Changes in Personnel Expenses: Net salary adjustments (MOU-elated, leave payoffs,vacancy, etc.) 38,300 Change in OCERS retirement costs 4,000 Change in group insurance costs 36,900 Other benefit cost adjustments (5,700) Other Cost Adjustments: Decrease in legal services (150,000) Increase in auditing and accounting services 100,000 increase in other professional services 90,000 Increase in regulatory operating fees 14,180 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 1,000 2017-18 Proposed Budget-Total O eratin Requirements $ 8,691,900 Section 6-Page 43 2018-19 & 2019-20 Budget 2017-18 Operating Expenses 2016.17 Revised 2017.18 2018.19 Budget 2019.20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 5,418,021 $ 5,452,500 $ 5,173,600 $ 5,489,600 0.68% $ 5,627,200 2,51% Supplies 143,794 138,650 158,510 215,320 55.30% 172,090 (20,08%) Professional 8 Contractual SeMces 104,906 165,000 152,370 246,660 49.49% 146,660 (40.54%) Research 8 Monitoring - - - - - Repairs 8 Maintenance 7,443 - 7,330 7,330 7,330 0.00% Utilities - - - - - Other 2,626 1,970 580 1,740 (11.68%) 1,740 0.00% Total $ 5,676,790 $ 5,758,120 $ 5,492,390 $ 5,960,650 3.52% $ 5,955,020 (0.09%) Expenditure Trends $5,676,790 $5,758,120 $5,960,650 $5,955,020 2015 2016 2017 2018 2019 2020 Section 6-Page 44 Laboratory, Monitoring & Compliance 630 DIRECTOR OF ENVIRONMENTAL SERVICES WMANAGER PRINCIPAL SENIOR ADMINISTRATIVE ENVIRONMENTAL SCIENTIST(2) ASSISTANT SPECIALIST(1.5) ENVIRONMENTAL ENVIRONMENTAL ENVIRONMENTAL ENVIRONMENTAL SUPERVISOR— SUPERVISOR— SUPERVISOR— SUPERVISOR— AnayticelChemistry MiemGeneral hermitlogy& Ocean Monibring EComnmentel General Chemistry Compliance PRINCIPAL PRINCIPAL SENIOR SENIOR ENVIRONMENTAL ENVIRONMENTAL SCIENTIST SCIENTIST REGULATORY SPECIALIST(3) SPECIALIST(2) SPECIALIST SENIOR SENIOR PRINCIPAL SENIOR REGULATORY ENVIRONMENTAL ENVIRONMENTAL ENVIRONMENTAL ENVIRONMENTAL SPECIALIST(3) SPECIALIST(6) SPECIALIST(3) SPECIALIST SPECIALIST(6) ENVIRONMENTAL ENVIRONMENTAL ENVIRONMENTAL BOAT ASSOGATE SPECIALIST(3) SPECIALIST(3) SPECIALIST CAPTAIN ENGINEER PRINCIPAL ENVIRONMENTAL ENVIRONMENTAL TECHNIGAN(3) SPECIALIST(0.5) SENIOR ENVIRONMENTAL SPECIALIST(3) Staffing Trends 2018-19 & 2019-20 Authorized FTE Positions Manager 1.0 Supervisors/ Professionals 47.0 /5252-52 Technical Staff 3.0 41-41—Q Administrative/Clerical 1.0 Total 52.0 2015 2016 2017 2018 2019 2020 Section 6-Page 45 2018-19 & 2019-20 Budget Service Description The mission of the Laboratory, Monitoring &Compliance Division is to perform sampling, environmental and process monitoring, accurate analysis, evaluation and compliance reporting for collection system, treatment processes, air emissions, coastal water quality, marine sediments and fish populations within the influence of OCSD's wastewater discharge and comparison sites to evaluate and address issues of concern to the District. 2017-18 Performance Objectives 2017.18 Performance Results ♦ Meet or surpass efficiency improvement as ♦ Benchmarking with other regional laboratories is measured by internal standards and industry an ongoing effort and external metrics are being benchmarking with other laboratories. updated.All indications are that OCSD is as efficient as other regional laboratories. ♦ Successful performance on proficiency test ♦ Proficiency testing has resulted in 100% passing standards 100% correctly in no more than two of all tests on first attempt for this year. attempts and achieve no less than 95%correct results on the first attempt. ♦ Manage division controllable costs to 98%to 102% ♦ Final budget expenditures are projected at 88% of projection. of budget. ♦ Support of GWRS, special projects and routine ♦ Several special projects in support of GWRS monitoring requirements. were undertaken and successfully completed. ♦ Meet all NPDES Permit compliance standards, ♦ Met all NPDES Permit compliance standards and Strategic Initiatives and Strategic Process Studies to initiatives for this year. advance OCSD's Mission. 2018-19 & 2019-20 Performance Objectives ♦ Continued efficiency improvement as measured by internal standards and industry benchmarking with regional laboratories. ♦ Successful performance on proficiency test standards 100% correctly in no more than two attempts and achieve no less than 95% correct results on the first attempt. ♦ Manage division controllable costs to within 96%to 100%of budget projection. ♦ Support of GWRS, special projects and routine monitoring requirements. ♦ Meet all NPDES Permit compliance standards, Strategic Initiatives and Strategic Process Studies to advance OCSD's Mission. Performance Measures Summary 2016-17 2017-18 2018-19 2019-20 Justification Actual Projected Proposed Proposed ♦ Laboratory Productivity 100% 100% 100% 100% Internal and external benchmark comparison. ♦ Laboratory Standards 100% 100% 100% 100% Blind check standards. ♦ Budget 91% 88% s100% 5100% In-house standard ♦ Support GWRS 100% 100% 100% 100% Percent of requested work completed ♦ Permit Compliance 100% 100% 100% 100% Compliance measure Section 6-Page 46 Laboratory, Monitoring & Compliance Budget Overview The FY 2018-19&2019-20 budgets for the Laboratory, Monitoring&Compliance Division reflect an increase of 4%and 3%over the prior year, respectively. The 2018-19 increase is primarily due to salary and benefits adjustments and an increase in research and monitoring costs, partially offset by a decrease in electricity costs. 2017-18 Adjusted Budget-Total O eratin Requirements $ 10,727,570 salaries for Position Change., Transfer of Positions from/(to)Other Divisions New or(decreased)FTE - Changes in Personnel Expenses Other net salary adjustments(MOU-related, leave payoffs, vacancy, etc.) 234,000 Change in OCERS retirement costs 12,500 Change in group insurance costs 36,200 Other benefit cost adjustments 5,800 Other Cos/Adjustments Increase in lab chemicals and supplies 24,500 Increase in temporary services 30,000 Decrease in legal services (40,000) Increase in audit&accounting services 10,000 Decrease In advocacy effods (11,000) Increase in research&monitoring 146,800 Increase in repairs and maintenance 20,000 Decrease in electricity costs (130,600) Increase in miscellaneous operating expenses 19,400 Increase in regulatory operating fees 31,100 Aggregate change in Other Categories Aggregate change in other malenals,supplies, and seMces 30,940 2018-19 Proposed Budget-Total O eratin Requirements $ 11,147,210 Changes in Personnel Expenses Net salary adjustments(MOU-related, leave payoffs,vacancy,etc.) 80,400 Change in OCERS retirement costs 8,300 Change in group insurance costs 60,100 Other benefit cost adjustments 15,800 Other Cost Adjustments Increase in lab chemicals and supplies 15,000 Increase in outside lab seMces 50,000 Increase in research&monitonng 38,400 Increase in repairs and maintenance 17,640 Increase in electricity costs 11,100 Increase in regulatory operating fees 20,000 Aggregate change In Other Categories Aggregate change in other materials,supplies, and services 32,340 2019-20 Proposed Budget-Total Operating Requirements $ 11,496,290 Section 6-Page 47 2018-19 & 2019-20 Budget 2017.18 Operating Expenses 2016.17 Revised 2017.18 2018.19 Budget 2019.20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 7,896,902 $ 7,581,200 $ 7,642,300 $ 7,869,700 3.81% $ 8,034,300 2.09% Supplies 704,081 643,080 647,660 693,870 7.901/6 719,210 3.65% Professional&Contractual Services 233,747 492,800 353,380 490,000 (0.57%) 555,000 13.27% Research&Monitoring 468,976 464,400 360,000 611,200 31.61% 649,600 6.28% Repairs&Maintenance 252,669 270,000 268,400 290,000 7.41% 307,640 6.08% Utilities 328,548 500,000 387,100 369,400 (26.12%) 380,500 3.00% Other 796.840 776,090 741,880 823,040 6.05% 850,040 3.28% Total $10,681,763 $10,727,570 $10,400,720 $11,147,210 3.91% $11,496,290 3.13% Expenditure Trends $30,681,763 $10,727,570 $11,147,210 $11,496,290 2015 2016 2017 2018 2019 2020 Section 6 -Page 48 Engineering Administration 710 GENERAL MANAGER ASSISTANT GENERAL MANAGER & DI RECTOR OF ENGINEERING EXECUTIVE ASSISTANT Staffing Trends 2018-19 & 2019-20 Authorized FTE Positions Executive Manager 1.0 Administrative/Clerical 1.0 2-2-2-2-2-2 Total 2.0 2015 2016 2017 2018 2019 2020 Section 6 -Page 49 2018-19 & 2019-20 Budget Service Description The mission of the Engineering Administration Division is to deliver world class engineered projects through skilled staff, technical excellence, proactive project planning, effective project delivery, effective communication, and critical thinking. 2017-18 Performance Objectives 2017-18 Performance Results ♦ Expend 90 to 100%of project annual CIP cash ♦ Expected to expend 97.8%. Flow. ♦ Ensure the department's expenditures are ♦ Expected to be 30%. managed to 96- 100%of approved budget. ♦ Ensure that reporting divisions achieve 90%of ♦ Expected to be 90%. individual performance objectives. ♦ Prepare and maintain 20-year District-wide ♦ Yes. capital plan. 2018-19 &2019-20 Performance Objectives ♦ Expend 90-100%of project annual CIP cash flow. ♦ Ensure the department's expenditures are managed to within 96-100%of the proposed budgets. ♦ Ensure that reporting divisions achieve 90%of individual performance objectives. ♦ Prepare and maintain a 20-year District-wide capital plan coordinating research, condition assessment, regulatory requirements, changing levels of service, and projected capacity requirements. Performance Measures Summary 2016-17 2017.18 2018.19 2019.20 Justification Actual Projected Proposed Proposed ♦ Expend 90-100%of Project 86.7% 97.8% 90-100% 90-100% In-house standard Annual CIP Cash Flow ♦ Ensure Department's 49% 30% 96-100% 96-100% In-house standard Expenditures 96-100% ♦ Ensure Reporting Divisions 95% 90% 90% min 90% min In-house standard Achieve 90% Performance Measures ♦ Prepare& Maintain 20-year Yes Yes Yes Yes In-house standard District-wide Capital Plan Section 6 - Page 50 Engineering Administration Budget Overview The FY 2018-19&2019-20 budgets for the Engineering Administration Division reflect an increase of 16%and an increase of 4%over the prior year, respectively. This is primarily due to increases in salary and benefits adjustments. 2017-18 Adjusted Budget-Total O eratin Requirements $ 438,390 salaries for Position Changes: Transfer of Positions hom/(to)Other Divisions - New or(decreased)FTE - Changes in Personnel Expenses.: Other net salary adjustments (MOU-related, lease payoffs,vacancy, etc.) 63,300 Change in OCERS retirement costs 6,700 Change in group insurance costs 2,100 Other benefit cost adjustments 100 Other Cost Adjustments: No other significant cost changes Aggregate change in Other Categories: Aggregate change in other materials, supplies, and seMces (1,460) 2018-19 Proposed Budget-Total Operating Requirements $ 509,130 Changes in Personnel Expenses: Net salary adjustments (MOU-related, lease payoffs,vacancy, etc.) 14,600 Change in OCERS retirement costs 2,000 Change in group insurance costs 2,500 Other benefit cost adjustments 700 Other Cost Adjust nentx No other significant cost changes Aggregate change in Other Categories: Aggregate change in other materials, supplies, and senices - 2019-20 Proposed Budget-Total O eratin Re uirements $ 528,930 Section 6-Page 51 2018-19 & 2019-20 Budget Operating Expenses 2016-17 Revised 2017.18 2018.19 Budget 2019.20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 470,806 $ 419,500 $ 479,400 $ 491,700 17.21% $ 511,500 4.03% Supplies 6,514 8,850 2,050 7,390 (16.50%) 7,390 0.00% Professional&Contractual Services - 10,000 3,500 10,000 0.00% 10,000 0.00% Research&Monitoring - - - - - - - Repairs&Maintenance - - - - - Utilities - - - - - Other 2,086 40 40 40 0.00% 40 0.00% Total $ 479,406 $ 438,4 $ 484,40 $ 509,130 16.14% $ 528,930 3.89% Expenditure Trends $679,070 $468,304 $479,406 $438,390 $509,130 $528,930 2015 2016 2017 2018 2019 2020 Section 6 - Page 52 Planning 740 ASSISTANT GENERAL MANAGER& DIRECTOR OF ENGINEERING ENGINEERING MANAGER ADMINISTRATIVE ASSISTANT ENGINEERING ENGINEERING SUPERVISOR SUPERVISOR SENIOR ASSOCIATE SENIOR PRINCIPAL ENGINEER(2) ENGINEER ENGINEER STAFF ANALYST(2) ENGINEER(2) ENGINEER ENGINEERING ASSOCIATE Staffing Trends 2018-19 &2019-20 Authorized FTE Positions Manager 1.0 Supervisors / Professionals 11.0 Administrative/Clerical 2.0 1T� 1s-1s-1s-1a1a Total 14.0 2015 2016 2019 2018 2019 2020 Section 6-Page 53 2018-19 & 2019-20 Budget Service Description The mission of the Planning Division is to provide a comprehensive Capital Improvement Program for the District considering projected capacity requirements, condition of current asset, projected regulatory and level of service changes,and research or business opportunities. The Planning Division takes an active role in the Asset Management Program at the District. The Division is also responsible for water resources management, California Environmental Quality Act preparation and review, annexations, connection permitting, easements, and interagency agreements. 2017-18 Performance Objectives 2017-18 Performance Results ♦ Ensure the division's expenditures are managed to ♦ Division expenditures are projected to be 122%. within 96-100%of proposed budget. ♦ Facilitate the District-wide project clearinghouse. ♦ Planning has facilitated the biweekly Clearinghouse meeting to disposition all capital and maintenance projects. ♦ Prepare and maintain a 20-year District-wide capital ♦ The Planning Division completed the 2017 Facilities plan coordinating research,condition assessment, Master Plan which defines a 20-year CIP totaling$5 regulatory requirements,changing levels of service, Billion. The Master Plan included recently completed and projected capacity requirements. efforts of the Biosolids Master Plan and the Odor Control Master Plan, both completed in 2017. ♦ Response to 100%of environmental correspondence ♦ 100%of environmental correspondence was within 45 days. responded to within 45 days. ♦ Maintain a hydraulic model for the collection system. ♦ 2006 hydraulic model is on track for a complete update in July 2018. 2018.19&2019.20 Performance Objectives ♦ Ensure the division's expenditures are managed to 96-100%of proposed budget. ♦ Facilitate the District-wide project clearinghouse to properly disposition maintenance, repair, replacement and capital expansion work into projects. Meet regularly and clearly assign tasks. ♦ Prepare and maintain a 20-year District-wide Capital Improvement Program considering research,condition assessment, regulatory requirements, changing levels of service,and projected capacity requirements. ♦ Response to 100%of environmental correspondence within 45 days. ♦ Complete the Facilities Master Plan Program Environmental Impact Report. ♦ Complete the Biosolids Master Plan Program Environmental Impact Report. Performance Measures Summary 2016-17 2017-18 2018-19 2019-20 Justification Actual Projected Proposed Proposed ♦ Manage Budget 114% 122% 96-100% 96-100% In-house standard ♦ Facilitate Project Clearinghouse Yes Yes Yes Yes In-house standard ♦ Prepare and Maintain a 20-Year Yes Yes Yes Yes In-house standard District-Wide Capital Plan ♦ CEQA Correspondence 100% 100% 100% 100% CEQA requirement ♦ Facilities Master Plan EIR N/A N/A 100% 100% CEQA requirement ♦ Biosolids Master Plan EIR N/A N/A 100% 100% CEQA requirement Section 6-Page 54 Planning Budget Overview The FY 2018-19 budget for the Planning Division reflect an increase of 14%.This is primarily due to increases in legal services, repairs and maintenance, and electricity costs. The FY 2019-20 budget reflects an increase of 1%, with no significant changes affecting the budget. 2017-18 Adjusted Budget-Total O eratin Requirements $ 3,158,970 Salaries for Position Changes Transfer of Positions from/(to)Other Diusions New or(decreased)FTE - Changes in Personnel Expenses: Other net salary adjustments (MOU-related, leave payoffs,vacancy,etc.) (17,200) Change in OCERS retirement costs (11,800) Change in group insurance costs (6,100) Other benefit cost adjustments (31,700) Other Cost Adjustments Decrease in training (12,290) Increase in operating materials 8 supplies 30,710 Increase in gmundskeeping services 10,700 Increase in janitorial sendces 55,000 Decrease in temporary serNces (20.000) Increase in legal seMces 100,000 Increase in other professional services 60,000 Increase in repairs S maintenance services and materials 105,000 Increase in electricity costs 159,000 Aggregate change in Other Categories Aggregate change in other materials,supplies, and services 8.080 2018-19 Proposed Budget-Total Operating Requirements $ 3,588,370 Changes in Personnel Expenses Net salary adjustments(MOU-related, leave payoffs, vacancy, etc.) 6,600 Change in OCERS retirement costs 500 Change in group insurance costs 16,100 Other benefit cost adjustments 4,300 Other Cost AdjushnenGs, Increase in electricity costs 5,000 Aggregate change in Other Categories, Aggregate change in other materials, supplies, and services 6,000 2019.20 Proposed Budget-Total Operating Requirements $ 3,626,870 Section 6-Page 55 2018-19 & 2019-20 Budget 2017-18 Operating Expenses 2016.17 Revised 2017-18 2018-19 Budget 2019.20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 2,752,644 $ 2,662,700 $ 2,499,200 $ 2,595,900 (2.51%) $ 2,623,400 1.06% Supplies 272,417 250,470 237,840 256,610 2.45% 256,610 0.00% Professional&Contractual SeMces 352,501 235,000 348,250 448,700 90.94% 454,000 1.18% Rasearoh&Monitoring - - - - - Repairs&Maintenance 37 - 550 105,000 105,000 0.00% Utilities 6,087 10,000 17,120 178,100 1681.00% 183,500 3.03% Other 1,110 800 540 4,060 407.T% 4,360 7.39% Total $ 3,384,79; $ 3,158,970 $ 3,103,500 $ 3,588,370 13.59% $ 3,626,870 Expenditure Trends $3,484,300 $3,384,796 $3,158,970 $3,588,370 $3,626,870 2,927,989 2015 2016 2017 2018 2019 2020 Section 6 - Page 56 Project Management Office 750 ASSISTANT GENERAL MANAGER& DIRECTOR OF ENGINEERING ENGINEERING MANAGER ADMINISTRATIVE ASSISTANT PRINCIPALtANALYST RINCIPAL PROJECT STAFF CONTROLS (2) ANALYST CIP PROJEMANAGER Staffing Trends 2018-19 &2019-20 Authorized FTE Positions Manager 1.00 Supervisors/ Professionals 14.00 Administrative/Clerical 1.00 20-20�17 17-16 16 Total 16.00 Ms 2016 2017 2016 2019 2020 Section 6 - Page 57 2018-19 & 2019-20 Budget Service Description The mission of the Project Management Office(PMO) Division is to be responsible for managing the design and construction of new collection and treatment and disposal facilities plus the rehabilitation of older facilities to ensure the safe, cost effective transport, and treatment of influentleffiuent. This division is responsible for the delivery of capital projects from the preliminary design stages through closeout of construction. The division provides standards, processes, and methodologies to improve project quality, cost, and timeliness. 2017-18 Performance Objectives 2018-19 Performance Results ♦ Ensure that the division's expenditures are managed ♦ Projected to be 38%. to 96-100°% of the proposed budget. ♦ Expend 85-105%of budgeted CIP expenditures. ♦ Projected at 98%. ♦ Manage non-construction costs for active projects to ♦ Projected to be<37.5%. < 37.5%of construction costs. ♦ Maintain a Combined Advertising Variance of< 30 ♦ Projected to be 88 days late. days late. ♦ Maintain a Combined Completion Variance of< 120 ♦ Projected to be 111 days early. days late. 2018-19&2019-20 Performance Objectives ♦ Ensure the division's expenditures are managed to 96-100°%of proposed budget. ♦ Expend 85%-105% of budgeted CIP expenditures. ♦ Manage non-construction costs for active projects to<37.5% of construction costs. ♦ Maintain a Combined Advertising Variance of<30 days. ♦ Maintain a Combined Completion Variance of< 120 days. Performance Measures Summary 2016-17 2017-18 2018-19 2019-20 Justification Actual Projected Proposed Proposed ♦ Manage Division Budget 18°% 38% 96-100°% 96-100°% In-house standard ♦ Expend 85-105%of Projected 86.7% 98% 85-105% 85-105% In-house standard Project Expenditures ♦ Manage Non-construction 35.3% < 37.5% <37.5% <37.5% In-house standard Costs for Active Projects to <37.5%of Construction Costs ♦ Combined Advertising 117 late 88 late <30 late <30 late In-house standard Variance of< 30 days late ♦ Combined Negative 25 early 111 early < 120 late < 120 late In-house standard Completion Variance of< 120 days late Section 6 -Page 58 Project Management Office Budget Overview The FY 2018-19&2019-20 budgets for the Project Management Office Division reflect an increase of 1% and an increase of 2%over the prior year, respectively. The increases are primarily due to salary and benefits adjustments. FY 2018-19 is partially off-set with a decrease due to an FTE transfer. 2017-18 Adjusted Budget-Total Operating Requirements $ 2,868,900 salaries for Position Changes: Transfer of Positions from/(to)Other DiNsions (72,100) New or(decreased)FTE - Changes in Personnel Expenses: Other net salary adjustments (MOU-related, lame payoffs, vacancy,etc.) 122,000 Change in OCERS retirement costs (13,500) Change in group insurance costs (3,700) Other benefit cost adjustments 5,500 Other CostAEjustments: Increase in training&meetings expense (12,000) Aggregate change In Other Categories Aggregate change in other materials, supplies, and seMces (6,250) 2018-19 Proposed Budget-Total Operating Requirements $ 2,888,850 Changes in Personnel Expenses: Net salary adjustments (MOU-related, lease payoffs, vacancy,etc.) 29,100 Change in OCERS retirement costs 2,600 Change in group insurance costs 18,400 Other benefit cost adjustments 4,800 Offer Cog Adjustments: No other significant cost changes Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 2,380 2019-20 Proposed Budget-Total Operating Requirements $ 2,946,130 Section 6 - Page 59 2018-19 & 2019-20 Budget 2017-18 Operating Expenses 2016-17 Revised 2017-18 2018.19 Budget 2019-20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 2,746,521 $ 2,825,000 $ 2,580,500 $ 2,863,200 1.350/ $ 2,918,100 1.92% Supplies 7,577 43,260 16,440 25,280 (41.56%) 27,660 9.41% Professional&Contractual Sentces - - - - - Resea¢h&Monitoring - - - - - - - Repairs&Maintenance 36 100 - - (100.00%) Utilities - - - - - Other 330 540 360 370 (31.48%) 370 0.00% Total $ 2,754,464 $ 2,868,900 $ 2,597,300 $ 2,888,850 0.70% $ 2,946,130 1.98% Expenditure Trends 3,509,251 $2,754,464 $2,868,900 $2,888,850 $2,946,130 $2,499,407 2015 2016 2017 2018 2019 2020 Section 6 - Page 60 Civil & Mechanical Engineering 760 ASSISTANTGEIER MANAGER& DIRECTOR OF ENGINEERING ENGINEERING MANAGER SENIOR SENIORSTAW CONSTRUCTION ANALYST r1) INSPECTOR ENGINEERING ENGINEERING ENGINEERING ENGINEERING CONSTRUCTION CgJS1RUCrION SUPERVISOR- SUPERVISOR- SUPERVISOR- SUPERVISOR- INSPECTION INSPECTION DeslgNMe CNII DeslgNMe GNII Gonametlon PbM1 ConMmctlon PlaM2 SUPERAI - SUPERVISOR- Colantions Rams &Pump Sbtions &CDMctlona PIaM 1&Pump SUtlna PbM2gRpd. SENIOR SENIOR SENIOR SENIIXt SENIOR SENIOR ENGINEER ENGINEER(3) ENGINEER ENGINEER r21 CONSTI2UCTIGN CONSTRUCTION INSPECTOR INSPECTOR"" ENGINEER(3) ENGINEER(4) ENGINEER(4) ENGINEER(2) CCNSTRUcnoN CONSTRUCTION INSPECTOR(3) INSPECTOR(3) ASSOCIATE ASSOCIATE SENIOR COST SENI� ENGINEER ENGINEER ESTIMATOR PLPNNERI SCHEDULER ENGINEERING ASSOCIATE ASSOCIATE ASSOCIATE ENGINEER ENGINEER ENGINEERING ENGINEERING ASSISTANTIl i2) ASSISTANTII(2) ENGINEERING ADMINISTRATIVE ASSISTANTI ASSISTANT ADMINISTRATIVE ASSISTANT Staffing Trends 2018-19 & 2019-20 Authorized FTE Positions Manager 1.0 �—,59�53 53-54 54 Supervisors/ Professionals 34.0 Administrative/Clerical 19.0 Total 54-0 2015 2016 2017 2018 2016 2020 Section 6-Page 61 2018-19 & 2019-20 Budget Service Description The mission of the Civil &Mechanical Engineering Division is to provide civil/mechanical engineering and construction management services for OCSD divisions and for project support to ensure OCSD projects are designed to meet stakeholder needs,comply with applicable codes and standards, are safely constructed and are fully inspected while minimizing impacts to operations, maintenance, local agencies and the public. 2017.18 Performance Objectives 2017.18 Performance Results ♦ Ensure the division's expenditures are managed to ♦ Expected to be 118%. 96-100%of proposed budget. ♦ Reduce program change order performance ♦ 5.2%as of December 31 data. towards Change Order Management Plan goal of 5%. ♦ Respond to public complaints or inquiries regarding ♦ Within 1-day response rate. construction projects within 1 day. ♦ No sewer spills on CIP collections projects. ♦ No spills. ♦ Division Injury Incident Rate<2.9 to support OCSD ♦ Projected to be 4.5. goal of<5.7. ♦ Develop and implement a plan of continuous ♦ Implemented specification ticket module and contract improvement incorporating lessons learned from document improvement plan for continued use. executed projects. 2018.19&2019.20 Performance Objectives ♦ Ensure division's expenditures are managed to 96-100%of proposed budget. ♦ Manage construction change orders to a CIP Change Order Management Plan goal of 5.5%. ♦ Respond to public complaints or inquiries regarding construction projects within 1 day. ♦ No sewer spills on CIP collections projects. ♦ Division Injury Incident Rate<2.9 to support OCSD goal of< 5.7. ♦ Routinely update standard specifications and design guidelines based on lessons learned from executed projects and the latest industry standards. ♦ Implement the Project Management Information System (PMIS)to replace the existing system. Performance Measures Summary 2016-17 2017-18 2018-19 2019-20 Justification Actual Projected Proposed Proposed ♦ Manage Division Budget 68% 118% 96-100% 96-100% In-house standard ♦ Change Order Rate 4.6% 5.2% <5.5% <5.5% In-house standard ♦ Respond to Public 1 day 1 day 1 day 1 day In-house standard ♦ No Sewer Spills 0 0 0 0 In-house standard ♦ Injury Incident Rate<2.9 2.1 4.5 <2.9 <2.9 In-house standard ♦ Update Standards N/A N/A 12 yearly 12 yearly In-house standard ♦ Implement PMIS N/A In Progress Implement Complete In-house standard Section 6-Page 62 Civil & Mechanical Engineering Budget Overview The FY 2018-19&2019-20 budgets for the Civil &Mechanical Engineering Division reflect an increase of 2%and an increase of 2%over the prior year, respectively.The increases are primarily due to salary and benefits adjustments. 2017-18 Adjusted Budget-Total O eratin Requirements $ 8,629,930 Salaries for Position Changes: Transfer of Positions fronv(to)Other DMsions - New or(decreased)FTE - Changes in Personnel Expenses: Other net salary adjustments (MOU-related, lease payoffs,vacancy,etc.) 188,000 Change in OCERS retirement costs (40,200) Change in group insurance costs 52,000 Other benefit cost adjustments 15,570 Other Cost Adjustments Decrease in training&meetings (6,300) Aggregate change in Other Categories Aggregate change in other materials, supplies, and services (4,540) 2018.19 Proposed Budget-Total O eratin Requirements $ 8,834,460 Changes in Personnel Expenses Net salary adjustments(MOU-related, lease payoffs, vacancy, etc.) 113,300 Change in OCERS retirement costs 10,800 Change in group insurance costs 62,900 Other benefit cost adjustments 16,400 Other Cost Adjushnents No other significant cost changes Aggregate change in Other Categories Aggregate change in other materials, supplies, and services 790 2019-20 Proposed Budget-Total O eratin Re uirements $ 9,038,650 Section 6-Page 63 2018-19 & 2019-20 Budget 2017-18 Operating Expenses 2016-17 Revised 2017.18 2018.19 Budget 2019.20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 8,418,163 $ 8,550,230 $ 8,182,600 $ 8,765,600 2.52% $ 8,969,000 2.32% Supplies 49,871 66,570 81,020 55,780 (16.21%) 56,570 1.42% Professional&Contractual Seidces 4,254 10,000 10,000 10,000 0.00% 10,000 0.00% Research&Monitoring - - - - - Repairs&Maintenance 148 600 490 500 (16.67%) 500 0.00% Utilities - - - - - - - Other 1,652 2,530 2,480 2,"0 1.98°70 2,580 0.00% Total $ 8,474,088 $ 8,629,930 $ 8,276,590 $ 8,834,460 2.37% $ 9,038,650 2.31% Expenditure Trends $9,013,817 $9,892,540 $8,474,088 $8,629,930 $8,834,460 $9,038,650 2015 2016 2017 2018 2019 2020 Section 6-Page 64 Electrical & Control Systems Engineering 770 ASSISTANT GENERAL MANAGER& DIRECTOR OF ENGINEERING ENGINEERING MANAGER ADMINISTRATIVE ASSISTANT ENGINEERING SENIOR SUPERVISOR- EIecl ENGINEERING CONSTRUCTION I&C SUPERVISOR-PCI INSPECTION SUPERVISOR-Bee SENIOR SENIOR PRINCIPAL SENIOR ENGINEER(4) INFO TECH CONSTRUCTION ENGINEER 2 ( ) ANALYST(4) INSPECTOR(3) SENIOR IWO CONSTRUCTION ENGINEER(3) ENGINEER TECH ANALYST INSPECTOR(3) (3) INFORMATION TECH ANALYST III INFORMATION TECH ANALYST II Staffing Trends 2018-19 & 2019-20 Authorized FTE Positions Manager 1.0 Supervisors/ Professionals 22.0 Administrative/Clerical 7.0 19 29-30 30 Total 30.0 s—U zots 2016 zan zoia 201e zozo Section 6 -Page 65 2018-19 & 2019-20 Budget Service Description The mission of the Electrical&Control Systems Engineering Division is to provide electrical and control system designs which are reliable,maintainable,and operable at optimum lifecycle costs in accordance with Engineering Standards and codes. Ensures that projects are properly and safely constructed and executed in accordance with the contract documents with minimal impact to operations, maintenance, local agencies, and the public. Provide process control SCADA system hardware, software and data network support for collections and treatment plant processes that are highly reliable, safe, secure,online, and available to monitor,record, control,and operate our facilities. 2017.18 Performance Objectives 2017.18 Performance Results ♦ Ensure the division's expenditures are managed to 96- • Expected to be 86% 100%of proposed budget. ♦ Reduce program change order performance towards ♦ 5.2%as of December 31 data. Change Order Management Plan goal of 5%. ♦ Assure all mission critical real-time SCADA systems ♦ Expected to be 100%. are online and available>99.9%. ♦ SCADA system programming complete and bench ♦ Expected to be 100%. tested prior to functional acceptance testing. ♦ New electrical equipment is properly modeled in the ♦ Expected to be 100%. power systems software and equipment is properly configured and tested prior to energization. ♦ Division Injury Rate 12.9. ♦ 0.0 2018.19&2019.20 Performance Objectives ♦ Ensure division's expenditures are managed to within 96-100%of proposed budget. ♦ Manage construction change order to CIP Change Order Management Plan goal of 5.5%. ♦ Assure all mission critical real-time SCADA systems are online and available greater than 99.9%(8hr/year of unplanned downtime). ♦ SCADA system programming is complete and bench tested prior to functional acceptance testing. ♦ New electrical equipment is properly modeled in the power systems software and equipment is property configured and tested prior to energization. ♦ Division Injury Incident Rate<2.9 to support OCSD goal of<5.7. ♦ Routinely update standard specifications and design guidelines based on lessons learned from executed projects and the latest industry standards. Performance Measures Summary 2016-17 2017-18 2018-19 2019-20 Justification Actual Projected Proposed Proposed ♦ Manage Division Budget 65% 86% 96-100% 96-100% In-house standard ♦ Change Order Rate 4.6% 5.2% <5.5% <5.5% In-house standard ♦ SCADA system availability 100% 100% 99.9% 99.9% In-house standard (less planned downtime) ♦ SCADA System 100% 100% '98% >98% In-house standard Programming Complete ♦ New Electrical Equipment 100% 100% >98% >98% In-house standard Configured and Tested ♦ Injury Incident Rate 12.9 0.0 0.0 <2.9 <2.9 In-house standard ♦ Update Standards N/A N/A 12 Annually 12 Annually In-house standard Section 6-Page 66 Electrical & Control Systems Engineering Budget Overview The FY 2018-19 budget for the Electrical &Control Systems Engineering Division reflects an increase of 4%. This is primarily due to increases in salary and benefits adjustments and an FTE transfer. The FY 2019-20 budget reflects an increase of 2%over the prior year, primarily due an increase in salary and benefits adjustments. 2017-18 Adjusted Budget-Total Operating Requirements $ 5,235,710 salaries for Position Changes' Transfer of Positions fmM(to)Other DrAsions 72,100 New or decreased)FTE - Changes in Personnel Expenses: Other net salary adjustments(MOU-related, leave payoffs,vacancy,etc.) 48,800 Change in OCERS retirement costs 24,400 Change in group insurance costs 35,200 Other benefit cost adjustments 5,700 Other Cost Adjustments: Increase in training 16,720 Decrease in engineering seMces (25,000) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 8,960 2018-19 Proposed Budget-Total Operating Requirements $ 5,422,590 Changes in Personnel Expenses: Net salary adjustments(MOU+elated, leave payoffs, vacancy,etc.) 61,100 Change in OCERS retirement costs 6,300 Change in group insurance costs 35,000 Other benefit cost adjustments 9,100 Other Cost Adjustments: Decrease in training (19,630) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 2,180 2019-20 Proposed Budget-Total Operating Requirements $ 5,516,640 Section 6-Page 67 2018-19 & 2019-20 Budget 2017-18 Operating Expenses 2016-17 Revised 2017.18 2018.19 Budget 2019-20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 4,811,354 $ 4,896,000 $ 4,553,700 $ 5,082,200 3.80% $ 5,193,700 2.19% Supplies 51,041 88,210 80,110 106,740 21.01% 89,290 (16.35%) Professional&Contractual Serdces 164,567 246,000 199,800 221,000 (10.16%) 221,000 0.00% Research&Monitoring - - - - - - - Repairs&Maintenance 11,711 5,000 12,000 12,000 140.00% 12,000 0.00% Utilities - - - - - - - Olher - 500 550 650 30.00°/ 650 0.00°k Total $ 5,038,673 $ 5,235,710 $ 4,846,160 $ 5,422,590 3.57.1 $ 5,516,640 1 1.73% Expenditure Trends $5,038,673 $5,235,710 $5,422,590 $5,516,640 2015 2016 2017 2018 2019 2020 Section 6 - Page 68 Operations and Maintenance Administration 810 GENERAL MANAGER DIRECTOR OF OPERATIONS & MAINTENANCE SENIOR STAFF STAFF ANALYST ANALYST Staffing Trends 2018-19 & 2019-20 Authorized FTE Positions Executive Manager 1.00 Supervisors/ Professionals 2.00 �3-3 3 3 2-2 Total 3.00 ' 2015 2015 2017 2018 2019 2020 Section 6-Page 69 2018-19 & 2019-20 Budget Service Description The mission of the Operations and Maintenance(O&M)Administration Division late provide leadership and support, as well as management oversight and development of the department. Ratepayer owned facilities and assets managed by the O&M Divisions have a replacement value that exceeds $10 billion. The Director, as a member of the Executive Management Team, provides counsel and expertise in developing the necessary strategies to maintain alignment with the District's Strategic Plan, levels of service, and annual divisional work plans. The Director and staff also proactively network with the OCSD member cities,sewering agencies and regional regulators on operational issues. 2017.18 Performance Objectives 2017.18 Performance Results ♦ Achieve 100%compliance with water, solids, air, ♦ Achieved 100%compliance with water, solids, air, and energy permits. and energy permits. ♦ Achieve a compliance level of 96 to 100%of the ♦ Achieved a compliance level of 90%of the level of levels of service targets. service targets. ♦ Manage operating expenditures to within 96 to ♦ Managed operating expenditures 16% of approved 100%of approved budget. budget. 2018-19&2019-20 Performance Objectives ♦ Achieve 100% compliance with water,solids, air, and energy permits. ♦ Achieve 100%compliance level of 90 to 100%of the Levels of Service targets. ♦ Manage operating expenditures to within 96 to 100%of approved budget. Performance Measures Summary 2016-17 2017-18 2018-19 2019-20 Justification Actual Projected Proposed Proposed ♦ Compliance with 100% 100% 100% 100% In-house standard Permits&Regulatory Requirements ♦ Levels of Service 100% 90% 100% 100% In-house standard Compliance ♦ Manage Budget 24% 16% 96-100% 96-100% In-house standard Section 6 - Page 70 Operations and Maintenance Administration Budget Overview The FY 2018-19 budget for the Operations and Maintenance Administration Division reflect an increase of 30%. This is primarily due to an increase in temporary services. The FY 2019-20 budget reflects an increase of 1% over the prior year, with no significant changes affecting the budget. 2017.18 Adjusted Budget-Total O eratin Requirements $ 735,030 Salaries for Position Changes Trensfer of Positions from/(to)Other DlNslons New or(decreased)FTE - Changes/n Personnel Expenses Other net salary adjustments(MOU-related, lease payoffs, vacancy,etc.) (41,400) Change in OCERS retirement costs 4,100 Change in group insurance costs (1,100) Other benefit cost adjustments 10,100 Other Cost Adjustments: Increase in temporary seroces 256,600 Aggregate change In Other Categories Aggregate change in other materials, supplies, and seMces (6,060) 2018-19 Proposed Budget-Total O eratin Requirements $ 957,270 Changes in Personnel Expenses Net salary adjustments(MOU-related, lease payoffs, vacancy,etc.) 15,600 Change in OCERS retirement costs 2,200 Change in group insurance casts 3,700 Other benefit cost adjustments 900 Other CostAdjusfinents: Decrease in other professional serNces (18,000) Aggregate change In Other Categories Aggregate change in other materials, supplies, and seMces 5,020 2019-20 Proposed Budget-Total O eratin Re uirements $ 966,690 Section 6-Page 71 2018-19 & 2019-20 Budget 2017-18 Operating Expenses 2016.17 Revised 2017-18 2018-19 Budget 2019-20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 481,892 $ 693,200 $ 555,000 $ 664,900 (4.08%) $ 687,300 3.37% Supplies 6,197 9,620 5,330 2,890 (69.96%) 2,900 0.35% Professional&Contractual Services 35 31,580 500 288,520 813,62% 275,530 (4.50%) Research&Monitoring - - - - - Repairs&Maintenance - - - - - - - Utilities - - - - - - - Other 631 630 940 960 52.38% 960 0.00% Total 1 $ 488.7551 $ 735,0301 $ 561,7701 $ 957,2701 30.24% 1 $ 966,6901 0.98% Expenditure Trends $918,455 $957,270 $966,690 $750,168 $711,030 $488,755 2015 2016 2017 2018 2019 2020 Section 6 - Page 72 Collections Facilities Operations and Maintenance 820 DIRECTOR OF OPERATIONS& MAINTENANCE ENGINEERING MANAGER ADMINISTRATIVE OFFICE ASSITANT ASSISTANT MAINTENANCE MAINTENANCE SUPERVISOR SUPERVISOR (COLLECTIONS O&M) (COLLECTIONS O&M) LEAD LEAD MECHANIC(2) MECHANIC(3) SENIOR SENIOR MECHANIC(4) MECHANIC(4) MECHANIC(2) MECHANIC(6) Staffing Trends 2018-19 & 2019-20 Authorized FTE Positions Manager 1.0 Supervisors / Professionals 2.0 Operations & Maintenance 21.0 26 26 26 26 Administrative/Clerical 2.0 / 00 - Total 26.0 2015 2016 2017 2018 2019 2020 Section 6 - Page 73 2018-19 & 2019-20 Budget Service Description The mission of the Collections Facilities Operations and Maintenance Division is to provide support and services which preserve the integrity and reliability of the District's infrastructure. The Pipeline and Pump Station teams operate and maintain the sewer systems and auxiliary facilities to protect public health and the environment and to achieve regulatory compliance. 2017-18 Performance Objectives 2017.18 Performance Results ♦ Achieve levels of service for keeping number of ♦ Incurred zero spills during the FY 2017-18. sewer spills less than 8.4 per year based on the industry average of 2.1 per 100 miles of sewer. ♦ Achieve levels of service for response to sewer ♦ Achieved 100%compliance. spills within one hour and full containment within five hours. ♦ Manage operating expenditures to within 96 to ♦ Managed operating expenditures to 99%of 100%of the approved budget. approved budget. ♦ Achieve 100%compliance with the safety ♦ Achieved 97.8%compliance with the safety scorecard. scorecard. 2018-19&2019-20 Performance Objectives ♦ Achieve 100%compliance with water, solids, air,and energy permits and regulatory requirements. ♦ Achieve 100%compliance level of 90 to 100%of the Levels of Service targets. ♦ Achieve greater than 90%compliance with the safety scorecard. ♦ Manage operating expenditures to within 96 to 100%of approved budget. Performance Measures Summary 2016-17 2017-18 2018-19 2019.20 Justification Actual Projected Proposed Proposed ♦ Compliance with Permits N/A N/A 100% 100% In house standard & Regulatory Requirements ♦ Levels of Service N/A N/A 100% 100% In house standard Compliance ♦ Compliance with the 97% 97.8% 100% 100% In house standard Safety Scorecard ♦ Manage Budget 96% 99% 96-100% 96-100% In house standard Section 6-Page 74 Collections Facilities Operations and Maintenance Budget Overview The FY 2018-19 budget for the Collections Facilities Operations and Maintenance Division reflect an increase of 8%. This is primarily due to increases in salary and benefits, odor control costs, engineering, and repairs and maintenance. The FY 2019-20 budget reflects an increase of 8% over the prior year.This is primarily due to the increase in odor control costs and other contractual services,which is somewhat off-set with a decrease in engineering services. 2017-18 Adjusted Budget-Total O eratin Requirements $ 12,284,740 salaries for Posigon Changes, Transfer of Positions hom/(to)Other Di islons - New or(decreased)FTE - Changea in Personnel Expenses Other net salary adjustments(MOU+elated, lame payogs,vacancy,etc.) 100,800 Change in OCERS retirement costs 15,300 Change in group insurance costs 17,100 Other benefit cost adjustments 8,500 Other Cost Adjusbn ants: Decrease in training (22,370) Increase in odor control costs 342,620 Decrease in temporary services (80,000) Decrease in other contractual serNces (62,140) Increase in engineering serades 606,210 Increase in other professional sera 21,440 Increase in repairs and maintenance 135,620 Decrease in electricity costs (52,580) Decrease in miscellaneous operating expense (18,380) Aggregate change in Other Categories, Aggregate change in other materials, supplies, and serdces (10,900) 2018-19 Proposed Budget-Total O eratin Requirements S 13,305,960 Changes in Personnel Expenses Net salary adjustments(MOtNelated, leeye travel vacancy,etc.) 18.400 Change In OCERS retirement costs 1,700 Change in group insurance costs 29,600 Other benefit cost adjustments 7,900 Other CostAdjustments, Increase in odor control costs 240,060 Increase in other contrectual serdces 1,200,000 Decrease in engineering services (513,660) Increase in repairs and maintenance 10,460 Increase in electncity costs 13,140 Increase in miscellaneous operating expense 30,730 Aggregate change in Other Categories Aggregate change in other materials,supplies,and seMces 4,440 2019-20 Proposed Budget-Total O eratin Requirements $ 14,348,730 Section 6-Page 75 2018-19 & 2019-20 Budget 2017-18 Operating Expenses 2016.17 Revised 2017-18 2018.19 Budget 2019.20 Budget By Category Actual Budget Projecbd Proposed %Change Proposed %Change Personnel $ 3,321,859 $ 3,245,300 $ 3,180,800 $ 3,387,000 4.37% $ 3,444,6W 1.70% Supplies 6,051,933 6,531,230 6,618,160 6,835,180 4.650/ 7,078,020 3.550/. Professional&Contractual Services 1,796,286 1,467,900 1,309,710 1,978,810 34.81% 2,666,430 34.75% Research&Monitoring - - - - - - - Repairs&Maintenance 1,303,387 375,000 450,410 510,620 36.17% 521,080 2.05% Utilities 595,667 615,800 550,020 %3,220 (8.54%) 576,740 2.40% Other 35,124 49,510 29,900 31.131 (37.12%) 61,860 98,72°% Total $13,104,256 $12,284,740 $12,139,000 $13,305,960 1 8.31% 1 $14,348,730 1 7.840/6 Expenditure Trends $13,104,256 $12,284,740 $13,305,960 $14,348,730 2015 2016 2017 2018 2019 2020 Section 6 -Page 76 Fleet Services 822 DIRECTOROF OPERATIONS& MAINTENANCE ENGINEERING MANAGER MAINTENANCE SUPERVISOR (FLEET SERVICES) AUTOMOTNFJ EQUIPMENT AUrOMOTNFJ MECHANIC LEAD HEAW EQUIP. CRANE HEAW EQUIP. TECHNICIAN(3) OPERATOR(2) ASSISTANT Staffing Trends 2018-19 &2019-20 Authorized FTE Positions Supervisors/ Professionals 1.0 9 Operations & Maintenance 7.0 a a a a a Total $ Q 2015 2016 2017 2018 2019 2020 Section 6 - Page 77 2018-19 & 2019-20 Budget Service Description The mission of the Fleet Services Division is to provide our customers with high quality, dependable, cost effective and efficient services. 2017-18 Performance Objectives 2017.18 Performance Results ♦ Manage operating expenditures to within 96 to ♦ Managed operating expenditures to 96%of the 100%of the approved budget approved budget. ♦ Achieve 100% compliance with state emissions • Achieved 100% compliance with state emissions regulations on all mobile equipment and vehicles. regulations on all mobile equipment and vehicles. ♦ Fleet Services in-house survey published with ♦ Achieved >80%on in-house customer results achieving 80%or above satisfaction ratings. satisfaction ratings. ♦ Achieve 100%compliance with the safety ♦ Achieved 94.7% compliance with the safety scorecard. scorecard. 2018.19 &2019.20 Performance Objectives ♦ Achieve 100%compliance with water, solids, air, and energy permits and regulatory requirements. ♦ Fleet Services in-house survey published with results achieving 90%at or above satisfaction ratings. ♦ Decrease average age of fleet over a 5-year period until all fleet vehicles meet the industry standard. ♦ Achieve greater than 90%compliance with the safety scorecard. ♦ Manage operating expenditures to within 96 to 100%of the approved budget. Performance Measures Summary 2016-17 2017-18 2018-19 2019-20 Justification Actual Projected Proposed Proposed ♦ Compliance with Permits& N/A N/A 100% 100% In-house standard Regulatory Requirements ♦ In-house Survey 95.4% >80% > 90% >90% In-house standard ♦ 5-Year Fleet Buy Down N/A N/A 20% 20% In-house standard ♦ Compliance with Safety 100% 94.7% > 90% >90% In-house standard Scorecard ♦ Manage Budget 88% 96% 96-100% 96-100% In-house standard Section 6 -Page 78 Fleet Services Budget Overview The FY 2018-19 budget for the Fleet Services Division reflects an increase of 7%. This is primarily due to increases in salaries and benefits adjustments and small tools expense. The FY 2019-20 budget reflects an increase of 0.25%over the prior year,with no significant changes affecting the budget. 2017.18 Adjusted Budget-Total O eratin Requirements $ 1,965,050 Salaries for Position Changes, Transfer of positions homi Other Ditisions New or(decreased)FTE Changes In personnel Expenses Other net salary adjustments(MOU-related, lease payoffs, �cancy,etc.) 37.700 Change in OCERS retirement costs 3.300 Change in group insurance costs 5,800 Other benefit cost adjustments (16,700) Other Cost Adjustments: Increase in training 18,470 Increase in small tools expense 52,200 Increase in repairs and maintenance 30,500 Increase in outside equipment rental 10.000 Aggregate change in Other Categories Aggregate change in other materials, supplies,and serNces 2,550 2018-19 Proposed Budget-Total O eratin Requirements $ 2,108,870 Changes in personnel Expenses Net salary adjustments(MOU-related, lease payoffs, vacancy, etc.) - Change in OCERS retirement costs (100) Change in group insurance costs 8,900 Other benefit cost adjustments 2,400 Other CostAdjustments Decrease in training (13,800) Increase in vehicle fuel&lubricants 5,000 Increase in compressed natural gas 5,000 Decrease in other pmlessional services (15,000) Increase in repairs and maintenance 10,000 Aggregate change in Other Categories Aggregate change in other materials, supplies,and seMces 2.950 2019.20 Proposed Budget-Total O eratin Reguirements $ 2,114,220 Section 6 - Page 79 2018-19 & 2019-20 Budget 2017.18 Operating Expenses 2016-17 Revised 2017-18 2018.19 Budget 2019-20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 1,198,889 $ 1,054,200 $ 1,096,500 $ 1,084,300 2.86% $ 1,095,500 1.03% Supplies 453,599 420,190 347,360 489,210 16.43% 486,360 (0.58%) Professional&Contractual Services 338 60,000 95,000 65,000 8.33% 50,000 (23.08%) Research& Monitoring - - - - - Repairs&Maintenance 431,271 378,500 368,150 409,000 8.06% 419,000 2.44% Utilities - - - - - Olher 51,512 52,160 66,170 61,360 17.64% 63,360 3.26% Total $ 2,135,609 $ 1,965,050 $ 1,973,180 $ 2,108,870 7.32% $ 2,114,220 0.25% Expenditure Trends $2,135,609 $1,965,050 $2,108,870 $2,114,220 2015 2016 2017 2018 2019 2020 Section 6 -Page 80 Operations - Plant No. 1 830 DIRECTOR OF OPERATIONS& MAINTENANCE OPERATIONS MANAGER CHIEF PLANT O&M PROCESS SUPPORT OPERATOR ENGINEERING SUPERVISOR- Process PRINCIPAL STAFF ANALYST SENIOR SCIENTIST ADMINISTRATIVE ENGINEER ASSISrANT PRINCIPAL ENGINEER ENVIRONI.EMAL SPECIALIST ASSOCIATE SENIOR ENGINEER(2) ENVIRONNEMAL SPECALIST ASSISTANT ENVIRONM1EMAL ENGINEER TECHNICIAN FRONT SIDE BACKSIDE DAY SHIFT/ FRONT SIDE BACKSIDE NIGHTSHIFT NIGHTSHIFT PROCESS DAVSHIFT DAYSHIFT OPERATIONS OPERATIONS OPERATIONS OPERATIONS OPERATIONS SUPERVISOR SUPERVISOR SUPERVISOR(3) SUPERVISOR SUPERVISOR SENIOR PLANT SENIOR PLANT LEAOPLA-Ni SENIOR PLANT SENIOR PLANT OPERATOR(2) OPERATOR(2) OPERATOR(4) OPERATOR(3) OPERATOR(3) PLANT PLANT SENIOR PLANT PLANT PLANT OPERATORi(4) OPERATORN) OPERATOR(4) OFERATOR(3) OPERATOR(4) POWER PLANT POWERPLANT LEAD POWER PO RPLANT POWERPLANT OPERATOR II OPERATOR II PWJTOPER OPERATORII OPERATOR II pLgNT CONTROL CONTROL OPERATOR CENTERTECH CENTER TECH 2018-19 &2019-20 Authorized FTE Positions Staffing Trends Manager 1.00 Supervisors/ Professionals 18.00 Operations & Maintenance 41.00 cB Technical Staff 1.00 54/ �Sz 6z 62 cz Administrative/Clerical 1.00 Total 62.00 2015 2016 ton 2018 2015 2020 Section 6 - Page 81 2018-19 & 2019-20 Budget Service Description The mission of the Plant No. 1 Operations Division is to safely, reliably, and cost effectively operate the plant to meet all regulatory requirements for the land, air, and water environments of Orange County and the 2.6 million residents we serve. 2017-18 Performance Objectives 2017.18 Performance Results ♦ Achieve 100% permit compliance. ♦ Achieved 100% permit compliance. ♦ Maintain overtime as less than 6%of the total ♦ Maintained overtime at 2.6% of the total hours hours worked. worked. ♦ Maintain a safety scorecard above 90%overall. ♦ Maintained a safety scorecard at 100%. ♦ Manage expenditures to within 96 to 100%of ♦ Managed operating expenditures to 90%of approved budget. approved budget. 2018-19&2019-20 Performance Objectives ♦ Achieve 100%compliance with water, solids, air, and energy permits and regulatory requirements. ♦ Achieve 100%compliance level of 90 to 100%of Levels of Service targets. ♦ Achieve greater than 90%compliance with the safety scorecard. ♦ Manage operating expenditures to within 96 to 100%of approved budget. Performance Measures Summary 2016.17 2017-18 2018.19 2019.20 Justification Actual Projected Proposed Proposed ♦ Compliance with Permits& 100% 100% 100% 100% In-house standard Regulatory Requirements ♦ Levels of Service N/A N/A 100% 100% In-house standard Compliance ♦ Compliance with Safety 100% 100% >90% > 90% In-house standard Scorecard ♦ Manage Budget 88% 90% 96-100% 96-100% In-house standard Section 6 - Page 82 Operations - Plant No. 1 Budget Overview The FY 2018-19 budget for the Plant No. 1 Operations Division reflect a decrease of 5%.This is primarily due to decreases in odor control chemicals, solids removal costs, other waste disposal costs, natural gas costs, and electricity costs,which is somewhat off-set with increases in salary and benefit adjustments and chemical coagulants. The FY 2019-20 budget reflects an increase of 12% over the prior year. This is primarily due to increases in chemical coagulants, electricity costs, and salary and benefits adjustments. 2017-18 Adjusted Budget-Total O era8n Requirements S 27,866,660 Salad"for Position Changes Transfer of Positions fromd(lo)Other Malone (32,000) New or(decreased)FTE - Changes in Personnel Expenses Other net salary adjustments(MOU+elated, lame payogs,vacancy,etc.) 257,800 Change In OCERS retirement costs (19,800) Change in group insurance costs 27,300 Other benefit cost adjustments (4,200) Other Cost A djustmentsr Increase in administreliw expense 67,140 Increase in chemical coagulants 320,080 Decrease in odor control chemicals (611,500) Decrease in disinfection chemicals (77,000) Decrease in solids remo al costs (400.000) Decrease in other waste disposal costs (93,000) Decrease in temporary services (65,000) Decrease in other contractual services (60,000) Decrease in repairs and maintenance (51,750) Decrease in natural gas costs (145.900) Decrease in electricity costs (320,000) Increase in water costs Aggregate change in Other Categories Aggregate change in other materials,supplies, and services (66,580) 2018.19 Proposed Budget-Total O eratin Requirements S 26,592,250 Changes in Personnel Expenses: Net salary adjustments(MOU.elated,lease payogs,vacancy,etc.) 90,900 Change in OCERS retirement costs 8,100 Change in group insurance costs 69,300 Other benefit cost adjustments 18,300 Other Cost Adjustments: Decrease in administrative expense (50,000) Increase in chemical coagulants 2,092,910 Decrease in engineering seMces (50,000) Increase in electncily costs 1,000,000 Increase in water costs Aggregate change in Other Categories Aggregate change in other materials,supplies, and services 79,100 2019-20 Proposed Budget-Total O eratin Requirements $ 29,850,860 Section 6 - Page 83 2018-19 & 2019-20 Budget 2017-18 Operating Expenses 2016.17 Revised 2017-18 2018.19 Budget 2019-20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 8,894,642 $ 8,679,800 $ 8,716,500 $ 8,908,900 2.64% $ 9,095,500 2.09% Supplies 4,343,097 4,876,880 4,166,840 4,526,850 (7.18%) 6,610,340 46.03% Professional&Contractual Services 7,979,021 9,490,000 8,993,730 8,885,000 (6.38%) 8,853,000 (0,36%) Research&Monitoring - - - - - Repairs&Maintenance 113,352 148,200 120,060 96,450 (34.92%) 96,450 0.00% Utilities 3,603,083 4,670,500 4,016,580 4,169,850 (10.72%) 5,190,370 24,47% Other 5,067 1,280 4,170 5,200 306.25% 5,200 0.00% Total $24,938,262 $27,866,660 $26,017,880 $26,592,250 (4.57%) $29,850,860 1 12.25% Expenditure Trends $32,129,523 $29,850,860 27,352,941 $24,938,262 $27,866,660 $26,592,250 2015 2016 2017 2018 2019 2020 Section 6-Page 84 Operations - Plant No. 2 840 DIRECTOR OF OPERATIONS& MAINTENANCE OPERATIONS MANAGER CHIEF PLANT OPERATOR ADMINISTRATIVE ASSISTANT FRONT SIDE BACKSIDE DAYSHIFT/ FROM SIDE BACKSIDE NIGHTSHIFT NIGHTSHIFT PROCESS DAYSHIFT DAYSHIFT OPERATIONS OPERATIONS OPERATIONS OPERATIONS OPERATIONS SUPERVISOR SUPERVISOR SUPERVISOR(3) SUPERVISOR SUPERVISOR SENIOR PLANT SENIOR PLANT LEAD PLANT SENIOR PLANT SENIOR PLANT OPERATOR(2) OPERATOR(2) OPERATOR(4) OPERATOR(3) OPERATOR(3) PLANT PLANT SENIOR PLANT PLANT PLANT OPERATOR(4) OPERATOR(4) OPERATOR(4) OPERATOR(5) OPERATOR(5) POWER PLANT POWER PLANT POWERPLANT� POWER PLANT POWER PLANT OPERATOR II OPERATOR II OPERATOR OPERATOR II OPERATOR II Staffing Trends 2018-19 &2019-20 Authorized FTE Positions Supervisors/ Professionals 8.0 Operations & Maintenance 41.0 4T/55�50505050 Administrative/Clerical 1.0 Total 50.0 2015 2015 ton 2018 2019 2020 Section 6 -Page 85 2018-19 & 2019-20 Budget Service Description The mission of the Plant No. 2 Operations Division is to safely, reliably, and cost effectively operate the plant to meet all regulatory requirements for the land, air, and water environments of Orange County and the 2.6 million residents we serve. 2017.18 Performance Objectives 2017.18 Performance Results ♦ Achieve 100% permit compliance. ♦ Received one (1)Nofice of Violation (NOV). ♦ Maintain overtime as less than 6%of the total hours ♦ Maintained overtime at 2.9%of total hours worked. worked. ♦ Maintain a safety scorecard above 90%overall. ♦ Maintained a safety scorecard at 100%overall. ♦ Manage operating expenditures to within 96 to 100% ♦ Managed operating expenditures to 101%of of approved budget. approved budget. 2018-19 & 2019-20 Performance Objectives ♦ Achieve 100%compliance with water, solids, air,and energy permits and regulatory requirements. ♦ Achieve 100%compliance level of 90 to 100%of the Levels of Service targets. ♦ Achieve greater than 90%compliance with the safety scorecard. ♦ Manage operating expenditures to within 96 to 100%of approved budget. Performance Measures Summary 2016-17 2017-18 2018-19 2019.20 Justification Actual Projected Proposed Proposed ♦ Compliance with 100% 1 NOV 100% 100% In-house standard Permits&Regulatory Requirements ♦ Levels of Service N/A N/A 100% 100% In-house standard Compliance ♦ Compliance with Safety 100% 100% >90% >90% In-house standard Scorecard ♦ Manage Budget 105% 101% 96-100% 96-100% In-house standard Section 6 - Page 86 Operations - Plant No. 2 Budget Overview The FY 2018-19 budget for the Plant No. 2 Operations Division reflect an increase of 5%.This is primarily due to increases in salary and benefits adjustments and solids removal costs, which is somewhat off-set with decreases in odor control chemicals and repairs and maintenance. The FY 2019-20 budget reflects a decrease of 11%over the prior year. This is primarily due to a decrease in solids removal costs,which is somewhat off-set with increases in chemical coagulants, electricity costs, and salary and benefits adjustments. 2017-18 Adjusted Budget-Total O eratin Requirements $ 19,389,450 Salaries for Position Changes, Transfer of Positions from/(to)Other Divisions 32,000 New or(decreased)FTE - Changes in Personnel Expenses Other net salary adjustments (MOU-related, lease payofs,vacancy,etc.) 378,800 Change in OCERS retirement costs 23,100 Change in group insurance costs 54,300 Other benefit cost adjustments 68,000 Other Cost Adjustments, Increase in administretij expense 29,960 Decrease in chemical coagulants (56,000) Decrease In odor control chemicals (83,000) Increase in solids removal costs 700,000 Decrease in repairs and maintenance (102,530) Decrease in natural gas costs (66,600) Increase in electricity costs 60,040 Aggregate change In Other Categories: Aggregate change in other materials, supplies,and semces (70,340) 2018-19 Proposed Budget-Total O eratin Requirements $ 20,357,180 Changes In Personnel Expenses: Net salary adjustments(MOU-related,lease payoffs,vacancy, etc.) 78,300 Change in OCERS retirement costs 7,500 Change in group insurance costs 60,100 Other benefit cost adjustments 15,800 Other Cosi Adjustments Decrease in administrative expense (30,000) Increase in chemical coagulants 788,000 Decrease In solids removal costs (3,700,000) Decrease in repairs and maintenance (50,000) Increase in electricity costs 525,890 Aggregate change in Other Categories Aggregate change in other materials,supplies,and aspects 78,900 2019-20 Proposed Budget-Total Operating Requirements $ 18,131,670 Section 6-Page 87 2018-19 & 2019-20 Budget 2017.18 Operating Expenses 2016.17 Revised 2017.18 2018.19 Budget 2019620 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 7,501,649 $ 7,158,500 $ 7,205,600 $ 7,714,700 7.77% $ 7,876,400 2.10% Supplies 2,589,687 2,499,700 2,282,130 2,438,830 (2.44%) 3,242,360 32.950/. Professional&Contractual SeNces 9,725,303 7,750,750 8,348,000 8,343,000 7.64% 4,664,000 (44.10%) Research&Monitoring - - - - - Repairs&Maintenance 502,645 420,200 278,510 317,670 (24.40%) 267,670 (15.74%) Utilities 1,158,746 1,558,000 1,479,080 1,537,940 (1.29%) 2,076,200 35.00% Other 9,513 2,300 3,570 5,040 119.13% 5,040 0.00% Total $21,487,543 $19,389,450 $19,596,890 $20,357,180 4.99% 1 $18,131,670 Expenditure Trends 20,301,842 $20,531,191 $21,487,543 $19,389,450 $20,357,180 $18,131,670 2015 2016 2017 2018 2019 2020 Section 6 - Page 88 Maintenance — Plant No. 1 870 1..�E.AI.E F & CE CEADMINISTRATIVE ASSISTANT EENT MAINTENANCE MAINTENANCE MAINTENANCE MAINTENANCE MAINTENANCE MAINTENANCE SUPERVISOR- SUPERVISOR- SUPERVISOR- SUPERVISOR- SUPERVISOR- SUPERVISOR- Me harcal Metl anical InstrumeHaOon El�Nral Rebuild CiWl Fadiii LEAD LEAD LEAD INST. LEAD SENIOR LEAD FACILITIES MECHANIC MECHANIC TECH. [ELECTRICAL MECHANIC(2) WORKER TECH.(2) SENIOR SENIOR LEAD ELECTRICAL WELDERI FACILITIES ELECTRICAL WORK=R/ MECHANC(8) MECHANC(/) TECH TECH.II(6) FABRICATIXt(a) gUILDER(2) MAINTENANCE ELECTRICAL FACILITIES MECHANIC WORKER(2) INST.TECH.II(6) TECH. MACHNIST WORK=R/ PAINTER INST.TECH.I(a) ELECTRICAL TECH.II(2) Staffing Trends 2018-19 & 2019-20 Authorized FTE Positions Manager 1.0 Supervisors/ Professionals 7.0 Operations & Maintenance 52.0 ai—esas\ Administrative/Clerical 1.0 / 6161 Total 61.0 2015 2016 2017 2018 2019 2020 Section 6 - Page 89 2018-19 & 2019-20 Budget Service Description The mission of the Plant No. 1 Maintenance Division is to protect public health and the environment by providing reliable power distribution,electrical and instrument maintenance, civil facilities and grounds maintenance, and mechanical maintenance to the treatment plant and associated pump stations in outer lying service areas.The Division's professional, highly skilled staff use best practices and technology to provide Collection, Plant Operations, and District staff with electrical power, control systems, environmental controls that are safe and on- line, and mechanical and facilities support to ensure and restore reliability. 2017-18 Performance Objectives 2017.18 Performance Results ♦ Maintain overtime at less than 5% of the total hours ♦ Maintained overtime at 10.8%of the total hours worked. worked. ♦ Maintain a total work order backlog of no greater ♦ Maintained a total work order backlog of<6 than 6 weeks. weeks. ♦ Maintain a safety scorecard rating above 90%. ♦ Maintained a safety scorecard rating of 98.2%. ♦ Maintain 100%records compliance for Volatile ♦ Maintain 100% records compliance for Volatile Organic Compounds (VOC's). Organic Compounds(VOCs). ♦ Manage operating expenditures to within 96 to ♦ Manage operating expenditures to 131%of 100%of approved budget. approved budget. ♦ Maintain electrical power availability at the ♦ Maintain electrical power availability at the distribution level greater than 99.9% (8 hr/yr of distribution level greater than 99.9%(8hr/yr of unplanned outage). unplanned outage). 2018-19&2019-20 Performance Objectives ♦ Achieve 100%compliance with water, solids, air, and energy permits and regulatory requirements. ♦ Achieve 100%compliance level of 90 to 100%of Levels of Service targets. ♦ Maintain a total work order backlog of less than 6 weeks. ♦ Achieve preventative maintenance(PM)compliance of greater than 75%. ♦ Achieve greater than 90%compliance with the safety scorecard. ♦ Manage operating expenditures to within 96 to 100%of the approved budget. Performance Measures Summary 2016.17 2017-18 2018-19 2019-20 Justification Actual Projected Proposed Proposed ♦ Compliance with Permits& N/A N/A 100% 100% In-house standard Regulatory Requirements ♦ Levels of Service N/A N/A 100% 100% In-house standard Compliance ♦ Maintain Work Order 6.4 weeks <6 weeks <6 weeks <6 weeks In-house standard Backlog ♦ PM Compliance N/A N/A >75% >80% In-house standard ♦ Compliance with Safety 97% 98.2% >90% > 90% In-house standard Scorecard ♦ Manage Budget 98% 131% 96-100% 96-100% In-house standard Section 6 - Page 90 Maintenance - Plant No. 1 Budget Overview The FY 2018-19 budget for the Plant No. 1 Maintenance Division reflect an increase of 26%.This is primarily due to increases in repairs and maintenance costs and salary and benefits adjustments,which is somewhat off-set with a decrease in professional services.The FY 2019-20 budget reflects a decrease of 9%over the prior year. This is primarily due to a decrease in repairs and maintenance and temporary services,which is somewhat off-set with an increase in salary and benefits adjustments. 2017.18 Adjusted Budget-Total O eratin Requirements $ 14,628,280 Salaries for Position Changes Transfer of Positions firor o)Other Dissions - Nm or(decreased)FTE - Changes in Personnel Expenses, Other net salary adjustments(MOU-related, lease payoiFs,vacancy,etc.) 160,400 Change in OCERS retirement costs (3,000) Change in group insurance costs 36,100 Other benefit cost adjustments (7,400) Other Cost Adjustments.' Increase in tools 69,560 Increase in safety equipment and tools 32,740 Decrease in temporary services (64,200) Decrease in other professional services (206,900) Increase in repairs and maintenance 3,794,270 Increase in repairs and maintenance Decrease in outside equipment rental Aggregate change in Other Categories: Aggregate change in other materials, supplies,and seMces (300) 2018.19 Proposed Budget-Total O eratin Requirements $ 18,439,550 Changes in Personnel Expenses Net salary adjustments(MOU-related,leave payoffs,vacancy, etc.) 136,800 Change in OCERS retirement costs 11,600 Change in group insurance costs 71,100 Other benefit cost adjustments 18,500 Other Cost Adjustments: Decrease in tools (58,840) Decrease in safety equipment and tools (29,740) Decrease in temporary seMces (100,000) Decrease in repairs and maintenance (1,760,220) Increase in seNce maintenance agreements Aggregate change In Other Categories Aggregate change in other materials,supplies,and senices 39,490 2019-20 Proposed Budget-Tote I O eratin Re uirements $ 16,768,240 Section 6-Page 91 2018-19 & 2019-20 Budget 2017.18 Operating Expenses 20116W Revised 2017-18 2018.19 Budget 2019-20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 8,739,082 $ 8,067,400 $ 7,150,500 $ 8,253,500 2.31% $ 8,491,500 2,88% Supplies 597,172 424,360 482,350 506,640 19.39% 417,190 (17,66%) Professional&Contractual SeNces 1,501,347 1,077,320 930,820 828,500 (23.10%) 768,860 (720%) Research&Monitoring - - - - - - - Repairs&Maintenance 5,566,928 5,043,190 7,161,930 8,837,460 75.24% 7,077,240 Utilities 2,638 8,000 4,210 5,000 (37.50%) 5,000 0.00% Other 7,470 8,010 7,250 8,450 5.49% 8,450 0.00% Total $16,414,637 $14,628,280 $15,737,060 $18,439,550 26.05% $16,768,240 (9.06%) Expenditure Trends $15,839,768 $16,414,637 $14,628,280 $18,439,550 $16,768,240 2015 2016 2017 2018 2019 2020 Section 6 - Page 92 Maintenance Reliability and Planning 875 DIRECTOR OF OPERATIONS& MAINTENANCE ENGINEERING MANAGER ENGINEERING MAINTENANCE SUPERVISOR SUPERVISOR SENIOR MAINTENANCE ENGINEER(3) SPECIALIST(11) ENGINEER(4) ASSOCIATE ENGINEER(2) RELIABILITY MAINTENANCE TECHNICIAN (5) Staffing Trends 2018-19 & 2019-20 Authorized FTE Positions Manager 1.0 Supervisors/ Professionals 22.0 Operations& Maintenance 5.0 28-28-28-28 Total 28.0 201s 2016 2017 2018 2019 2020 Section 6-Page 93 2018-19 & 2019-20 Budget Service Description The mission of the Maintenance Reliability and Planning Division is to ensure the highest level of reliability for mechanical, electrical, and instrumentation assets at the lowest cost through the execution of correct, preventative, and predictive maintenance activities and the engagement of the engineering department for assets at the end of their life cycle. 2017-18 Performance Objectives 2017-18 Performance Results ♦ Achieve 100% permit compliance. ♦ Achieved 100% permit compliance. ♦ Achieve a compliance level of 90 to 100%of the ♦ Achieved a compliance level of 100%of the level levels of service targets. of service targets. ♦ Maintain a safety scorecard above 90%overall. ♦ Maintained a safety scorecard at> 96%. ♦ Manage operating expenditures to within 96 to ♦ Managed operating expenditures to 68%of 100%of approved budget. approved budget. 2018-19&2019-20 Performance Objectives ♦ Achieve 100%compliance with water, solids, air,and energy permits and regulatory requirements. ♦ Achieve 100%compliance level of 90 to 100%of the Levels of Service targets. ♦ Approved maintenance service requests will be processed within 3 days 90%of the time. ♦ Staff will respond to all received root cause analysis (RCA)requests within 1 week and will initiate proper investigation of these requests. ♦ Achieve greater than 90%compliance with the safety scorecard. ♦ Manage operating expenditures to within 96 to 100% of approved budget. Performance Measures Summary 2016-17 2017.18 2018-19 2019-20 Justification Actual Projected Proposed Proposed ♦ Compliance with N/A 100% 100% 100% In-house standard Permits&Regulatory Requirements ♦ Levels of Service N/A 100% 100% 100% In-house standard Compliance ♦ Process Maintenance N/A N/A 90% 90% In-house standard Service Requests ♦ Respond to RCA N/A N/A 100% 100% In-house standard requests within 1 week ♦ Compliance with N/A > 96% >90% >90% In-house standard Safety Scorecard ♦ Manage Budget 57% 68% 96-100% 96-100% In-house standard Section 6-Page 94 Maintenance Reliability and Planning Budget Overview The FY 2018-19 budget for the Maintenance Reliability and Planning Division reflect an increase of 0.37%. This is primarily due an increase in other contractual services, which is off-set with decreases in temporary services and engineering services. The FY 2019-20 budget reflects a decrease of 6%over the prior year. This is primarily due to decreases in other contractual services and engineering services, which is somewhat off-set with an increase in salary and benefits adjustments. 2017.18 Adjusted Budget-Total O eratin Requirements $ 7,700,130 Salaries for Position Changes Transfer of Positions from/(to)Other Divisions New or(decreased)FTE - Changes in Personnel Expenses Other net salary adjustments(MOU-related,lease payoffs,vacancy, etc.) 18,800 Change in OCERS retirement costs 24,900 Change in group insurance costs 2,200 Other benefit cost adjustments 16,900 Other Cost Adjustments: Decrease in temporary services (134,000) Increase in other contractual senlces 432,170 Decrease in engineering services (378,750) Increase in repairs and maintenance 46,500 Aggregate change in Other Categories, Aggregate change in other materials,supplies,and sennces (50) 2018-19 Proposed Budget-Total Operating Requirements $ 7,728,800 Changes in Personnel Expenses Net salary adjustments(MOU-related, lease payoffs,vacancy,etc.) 58,900 Change in OCERS retirement costs 6,600 Change In group Insurance costs 32,500 Other benefit cost adjustments 8,500 Other Cost Adjustments Decrease in other contractual services (150,000) Decrease in engineering services (376,000) Aggregate change in Other Categories. Aggregate change in other materials,supplies,and serAces (10,100) 2019.20 Proposed Budget-Total Operating Requirements $ 7,299,200 Section 6-Page 95 2018-19 & 2019-20 Budget 2017.18 Operating Expenses 2016.17 Revised 2017.18 2018.19 Budget 2019620 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 2,139,724 $ 4,437,200 $ 4,385,500 $ 4,500,000 1.42% $ 4,606,500 2,37% Supplies 74,136 88,930 50,340 79,120 (11.03%) 70,520 (10.87%) Professional&Contractual SeMces 1,046,726 3,164,000 2,128,750 3,092,420 (226%) 2,564,920 (17.06%) Research&Monitoring - - - - - - - Repairs&Maintenance 15,376 10,000 54,000 56.500 465.00% 56,500 0.00% Utilities - - - - - - - Other 498 - 170 760 760 0.00% Total $ 3,276,460 $ 7,700,130 $ 6,618,760 $ 7,728,800 0.37% $ 7,299,200 (5.56%) Expenditure Trends $7,700,130 $7,728,800 $7 29y 200 $3,276,46 2015 2016 2017 2018 2019 2020 Section 6 - Page 96 Maintenance — Plant No. 2 880 DIRECTOROF OPERATIONS& MAINTENANCE MAINTENANCE MANAGER MAINTENANCE SUPERINTENDEM ADMINISTRATNE ASSISTANT MANTENANCE MAINTENANCE MAINTENANCE MAINTENANCE MAINTENANCE SUPERVISOR- SUPERVISOR- SUPERVISOR- SUPERVISOR- SUPERVISOR- Fadlii Mechanical Med mcal IWivmeniation Elechi� LEAD FACILITIES LEAD LEAD INST. LEAD WORKER MECHANIC LEPD MECHANIC TECH.(2) ELECTRICAL TECH.(2) SENIOR SENIOR SENIOR ELECTRICAL MECHANIC MECHANIC(]) MECHANIC(]) INST.TECH.II(8) TECH.II(7) FACILITIES ELECTRICAL WORKER/ MECHANIC MAIMENANCE TECH I PAINTER WORKER FACILITIES MAINTENANCE WORKER/ BUILDER WORKER Staffing Trends 2018-19 &2019-20 Authorized FTE Positions Supervisors/ Professionals 6.0 Operations & Maintenance 43.0 'so—so Administrative/Clerical 1.0 as—alas Total 50.0 0 x015 2016 2017 xois 2019 2020 Section 6 - Page 97 2018-19 & 2019-20 Budget Service Description The mission of the Plant No. 2 Maintenance Division is to protect public health and the environment by providing reliable power distribution,electrical and instrument maintenance, civil facilities and grounds maintenance, and mechanical maintenance to the treatment plant and associated pump stations in outer lying service areas.The Division's professional, highly skilled staff use best practices and technology to provide Collections, Plant Operations, and District staff with electrical power, control systems, environmental controls that are safe and on- line, and mechanical and facilities support to ensure and restore reliability. 2017.18 Performance Objectives 2017.18 Performance Results ♦ Maintain overtime at less than 5% of the total hours ♦ Maintained overtime at 4.8%of the total hours worked. worked. ♦ Maintain a total work order backlog of no greater than 6 ♦ Maintained a total work order backlog of< 6 weeks. weeks. ♦ Maintain a safety scorecard rating above 90%. ♦ Maintained a safety scorecard rating of 99.9%. ♦ Maintain 100%records compliance for Volatile Organic ♦ Maintain 100%records compliance for Volatile Compounds(VOC's). Organic Compounds (VOCs). ♦ Manage operating expenditures to within 96 to 100%of ♦ Manage operating expenditures to 72% of approved budget. approved budget. ♦ Maintain electrical power availability at the distribution ♦ Maintain electrical power availability at the level greater than 99.9% (8 hr/yr of unplanned outage). distribution level greater than 99.9% (8hr/yr of unplanned outage). 2018.19&2019.20 Performance Objectives ♦ Achieve 100%compliance with water, solids, air,and energy permits and regulatory requirements. ♦ Achieve 100%compliance level of 90 to 100%of Levels of Service targets. ♦ Maintain a total work order backlog of less than 6 weeks. ♦ Achieve preventative maintenance(PM)compliance of greater than 75%. ♦ Achieve greater than 90%compliance with the safety scorecard. ♦ Manage operating expenditures to within 96 to 100%of the approved budget. Performance Measures Summary 2016-17 2017.18 2018-19 2019-20 Justification Actual Projected Proposed Proposed ♦ Compliance with Permits 8 N/A N/A 100% 100% In-house standard Regulatory Requirements ♦ Levels of Service Compliance N/A N/A 100% 100% In-house standard ♦ Maintain Work Order Backlog 6.4 weeks <6 weeks <6 weeks <6 weeks In-house standard ♦ PM Compliance N/A N/A > 75% > 80% In-house standard ♦ Compliance with Safety 99% 99.9% > 90% >90% In-house standard Scorecard ♦ Manage Budget 86% 72% 96-100% 96-100% In-house standard Section 6 - Page 98 Maintenance - Plant No. 2 Budget Overview The FY 2018-19 budget for the Plant No. 2 Maintenance Division reflect an increase of 11%.This is primarily due to increases in repairs and maintenance costs. The FY 2019-20 budget reflects a decrease of 4%over the prior year. This is primarily due to a decrease in repairs and maintenance,which is somewhat off-set with an increase in salary and benefits adjustments. 2017-18 Adjusted Budget-Total O eratin Requirements $ 14,548,410 Salaries for Position Changer Transfer of Positions from/(to)Other Dimsions - New or(decreased)FT - Changes in Personnel Expenses. Other net salary adjustments(MOU-related, lease payoffs, vacancy, etc.) 67,000 Change in OCERS retirement costs (23,800) Change in group insurance costs 47,600 Other benefit cost adjustments (56,000) Other Cost Adjustments, Decrease in training (36,400) Decrease in small tools expense (28,600) Decrease in other waste disposal costs (30,730) Decrease in other professional seraces (33,660) Increase in repairs and maintenance 1,530,840 Increase in seMce maintenance agreements 87,670 Aggregate change In Other Categories, Aggregate change in other materials,supplies, and services 46,320 2018-19 Proposed Budget-Total O eratin Requirements $ 16,118,650 Changes in Personnel Expenses Net salary adjustments(MOU-related, lease payoffs,vacancy,etc.) 129,500 Change in OCERS retirement costs 12,500 Change in group insurance costs 57,400 Other benefit cost adjustments 14,900 Other Cost Adjustments Decrease in repairs and maintenance (821,980) Aggregate change in Other Categories Aggregate change in other materials,supplies, and services 11,100 2019-20 Proposed Budget-Total O eratin Re uirements $ 15,522,070 Section 6-Page 99 2018-19 & 2019-20 Budget 2017.18 Operating Expenses 2016.17 Revised 2017-18 2018.19 Budget 2019.20 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 5,882,835 $ 6,317,500 $ 5,989,400 $ 6,352,300 0.55% $ 6,566,600 3.37% Supplies 378,384 450,130 405,700 414,520 (7.91%) 395,720 (4.54%) Professional 8 Contractual Serdces 425,634 617,830 536,130 568,000 (8.07%) 597,900 5.26% Research 8 Monitoring - - - - - Repairs& Maintenance 5,016,111 7,151,270 4,947,300 8,769,780 22.63% 7.947,800 (9.37%) Utilities 4,230 6,290 6,290 6,290 0.00% 6,290 0.00% Other 5,110 5,390 2,660 7,760 43.17% 7,760 0.00% Total $11,712,304 $14,548,410 $11,887,480 $16,118,650 10.79% $15,522,070 (3.70%) Expenditure Trends $14,548,410 $16,118,650 $15,522,070 $11,739,126 $11,712,304 2015 2016 2017 2018 2019 2020 Section 6-Page 100 SELF-INSURANCE PROGRAM SECTION 7 Self-Insurance Program Overview SELF-FUNDED INSURANCE PLANS In order to maintain the reserve balance of $2 million for the Workers' Compensation The District is partially self-insured for general liability program, appropriations for in-lieu premiums and workers compensation. The General Liability charged to operating divisions are recommended and Property program and the Workers' at$586,600 and$780,000 for FY 2018-19 and FY Compensation program have been in existence since 2019-20, respectively. 1979. The annual in-lieu premiums and charges to the Revenue Areas or Operating Divisions are the revenue sources within these programs. Expenses primarily consist of claim settlements, legal fees and excess loss insurance premiums. Ending Reserve Balances are projected at$57,000,000 in FY 2018-19 and in FY 2019-20. General Liability and Property • The District's current outside excess general liability insurance coverage is $40 million per occurrence with an annual aggregate limit and with a self-insured retention of$500,000. • The District's current property insurance coverage is $1 billion for perils of fire and $300 million for perils of flood, subject to a self- insured retention of $250,000. The District is partially self-insured for earthquake, but does carry$25 million in coverage on 15 key structures with a $5 million deductible. The District also has a $50 million sublimit for builders risk under the property insurance program to ensure upcoming construction projects are adequately covered. • In order to maintain a reserve balance of $55 million for FY 2018-19 and FY 2019-20 for the Property and General Liability program, appropriations for in-lieu premiums charged to the Revenue Areas are recommended at $1,299,300 and $1,720,000 for FY 2018-19 and FY 2019-20, respectively. Workers'Compensation • The District's current excess workers' compensation coverage has unlimited statutory coverage per occurrence and $4 million employer's liability with a self-insured retention of $1 million per person per occurrence. Section 7-Page 1 2018-19 & 2019-20 Budget Total of the Self-Insurance Programs 2016-17 2017-18 2017-18 2018-19 2019-20 DESCRIPTION OR ACCOUNT TITLE Actuals Budget Projected Proposed Proposed Beginning Reserves $ 57,165,477 $ 56,681,100 $ 66,910,200 $ 57,544,100 $ 57,000,000 Revenues In-Lieu Premiums 2,307,400 2,665,200 2,665,200 1,885,900 2,500,000 Miscellaneous Other Revenue 17,749 10,000 6,100 10,000 10,000 Serdce Department Allocation 18,696 18,700 18,700 20,000 20,000 Total Revenues 2,343,845 2,693,900 2,690,000 1,915,900 2,530,000 ExpenseB Benefits/Claims 1,015,890 700,000 484,100 770,000 790,000 Contractual Services - - - - - Legal Sendces 127,245 305,000 120,100 120,000 120,000 Professional Services 94,510 90,000 53,000 70,000 70,000 Subtotal 1,227,645 1,095,000 657,200 960,000 980,000 Policy Premium Expense 1,371,487 1,280,000 1,398,900 1,500,000 1,550,000 Total Expenses 2,599,132 2,375,000 2,056,100 2,460,000 2,530,000 Excess Revenue (Expenses) (255,287) 318,900 633,900 (544,100) Ending Reserves $ 56,910,190 $ 57,000,000 $ 57,544,100 $ 57,000,000 $ 57,000,000 Section 7- Page 2 Self-Insurance Program General Liability and Property Self-Insurance Program 2016-17 2017-18 2017-18 2018-19 2019-20 DESCRIPTION OR ACCOUNT TITLE Actuals Budget Projected Proposed Proposed Beginning Reserves $ 55,252,299 $ 54,205,430 $ 54,445,800 $ 55,370,700 $ 55,000,000 Revenues In-Lieu Premiums 1,111,100 2,110,870 2,110,900 1,299,300 1,720,000 Miscellaneous Other Revenue 17,749 6,100 10,000 10,000 SeMce Department Allocation 18,696 18,700 18,700 20,000 20,000 Total Revenues 1,147,545 2,129,570 2,135,700 1,329,300 1,750,000 Expenses Benefits/Claims 674,613 100,000 4,300 350,000 360,000 Contractual Services Legal SeMces 81,434 130,000 4,400 40,000 40,000 Professional Services 27,165 25,000 10,000 10,000 Subtotal 783,212 255,000 8,700 400,000 410,000 Policy Premium Expense 1,170,860 1,080,000 1,202,100 1,300,000 1,340,000 Total Expenses 1,954,072 1,335,000 1,210,800 1,700,000 1,750,000 Excess Revenue (Expenses) (806,527) 794,570 924,900 (370,700) Ending Reserves $ 54,445,772 $ 55,000,000 $ 55,370,700 $ 55,000,000 $ 55,000,000 Section 7-Page 3 2018-19 & 2019-20 Budget Workers' Compensation Self-Insurance Program 2016-17 2017-18 2017-18 2018-19 201g-20 DESCRIPTION OR ACCOUNT TITLE Actuals Budget Projected Proposed Proposed Beginning Reserves $ 1,913,178 $ 2,475,670 $ 2,464,400 $ 2,173,400 $ 2,000,000 Revenues In-Lieu Premiums 1,196,300 554,330 554,300 586,600 780,000 Miscellaneous Other Revenue 10,000 Transfer In - - - - - Service Department Allocation - - - - - Total Revenues 1,196,300 564,330 554,300 586,600 780,000 Expenses Benefits/Claims 341,277 600,000 479,800 420,000 430,000 Contractual SeMces Legal Services 45,811 175,000 115,700 80,000 80,000 Professional SeMces 57,345 65,000 53,000 60,000 60,000 Subtotal 444,433 840,000 648,500 560,000 570,000 Policy Premium Expense 200,627 200,000 196,800 200,000 210,000 Total Expenses 645,060 1,040,000 845,300 760,000 780,000 Excess Revenue (Expenses) 551,240 (475,670) (291,000) (173,400) Ending Reserves $ 2,464,418 $ 2,000,000 $ 2,173,400 $ 2,000,000 $ 2,000,000 Section 7- Page 4 CAPITAL IMPROVEMENTS SECTION 8 Capital Improvement Program Overview CIP BUDGET REQUEST SUMMARY • M-FE: Small Construction Projects Program Each year, the Board of Directors, through their District staff has also validated all active and future committee process,reviews and approves the Capital CIP projects to ensure that the project scopes of work Improvement Program (CIP) prepared by staff for and cost estimates were up-to-date. Through the both sewage collection system projects (collections) budget validation process, each project's schedule, and the joint works treatment and disposal system staff resources, total project cost,cash flow and risks projects. are assessed to confirm the budgetary requirements. The validated CIP includes 68 active and future CIP projects take several years to complete the capital projects, five programs, such as the Planning planning, design and construction cycle. The Studies Program (M-Studies)and Small Construction proposed budgetforeach projectcovers the life ofthe Program (M-FE), and budget for capital equipment project. This budget is reevaluated each year for the purchases with a total CIP budget authority of$4.01 purpose of managing annual cash flows. Thus,many billion. The total CIP budget authority has decreased of the projects in the CIP Budget for FY 2018-19 and by$108 million as compared to FY 2017-18 approved 2019-20 are continuing projects that were approved budget of$4.12 billion. The changes are summarized in prior years. below: In December 2017, the 2017 Facilities Master Plan FY2017-18 Approved Total CIP Budget Authority $4.1213 was adopted by the Board of Directors. The Master Net Changes: Plan identified a phased 20-year program of capital New Projects $171M improvement projects that will allow the District to Closed/Cancelled Projects ($180M) maintain reliability and accommodate future growth, Budget Changes for Active Projects ($94M) as well as meet future regulatory requirements, level Budget Changes for Future Projects ($5M) 108M of service goals, and strategic initiatives. FY2018-19 Proposed Total CIP Budget Authority $4.016 With this phased 20-year program as a starting point, Following is a table of the FY 2018-19 proposed CIP the Asset Management Program within the Planning budget: Division continues assessing the condition of the District's existing assets and systems to ensure that FY 2018-19 these assets and systems can provide the necessary Description CIP Budget level of service. The Planning Division continues Capital Improvement Program(CIP) $177.6M reviewing and updating the ongoing and future CIP to Future Rehab&Replacement $14.3M appropriately manage the risks associated with asset $191.9M or system failure. Projects can be delayed, Less: Savings and Deferrals ($17,3M) consolidated or rescoped to help ensure that the CIP Net CIP Outlay $174.5M is delivered in the most efficient way possible. The Asset Management Program will continue these The proposed 2018-19 and 2019-20 net CIP outlays efforts and vaill continue to define the future CIP can be categorized by the location of the projects in project requirements not currently included on the terms of wastewater treatment process, or by the CIP list but are anticipated within the long-term reasons why the projects are needed, i.e. project financial plan to ensure effective and efficient drivers. The charts showing the distribution of the operations in the future. funds requested for FYs 2018-19 and 2019-20 are shown on pages 5 and 7, respectively. This year,five new projects are proposed for addition to the 2018-20 budget. These are: The proposed net CIP outlays can also be categorized by project phase or status. The following • Project No. 3-67: Seal Beach Pump Station chart shows the net CIP outlays of projects in the Replacement Planning, Design and Construction phases for FY • Project No. 3-68: Los Alamitos Sub-Trunk 2018-19. 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 Section 8—Page 1 2018-19 & 2019-20 Budget Projected FY18-19 Net CIP Outlay OCSD's system includes approximately 396 miles of by Project Status sewers that convey wastewater generated within the Sanitation District's boundaries to the Sanitation Design District's two wastewater treatment plants, 42% Reclamation Plant No. 1 located in the City of Fountain Valley,and Treatment Plant No.2located in the City of Huntington Beach. Planning Influent wastewater undergoes Preliminary 6% Construction Treatment upon entry to the treatment plants where it 52% 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 Projects that are in the Planning phase make up settled out, enhanced by the addition chemicals, about 6% of the FY 2018-19 net CIP outlay. Projects in the Planning phase are planning or research and sent to solids processing. The wastewater then s flows to secondary treatment, which is a biological studies that are mostly managed under the Planning process using either the trickling filter or activated Studies Program, or M-Studies. sludge process. Solids removed in secondary 42% of the FY 2018-19 net CIP outlay will be for treatment are also sent to digestion. projects that are in the Design phase. The three Methane gas generated during the natural largest projects in the Design phase are decomposition of the solids in the digesters fuels the Headquarters Complex and Site Security at Plant No. Central Power Generation System producing enough 1 (Project No.P1-128), Headworks Rehabilitation and electricity to meet two-thirds of the power needed to Expansion at Plant No. 1 (Project No. P1-105), and run both treatment plants. Bay Bridge Pump Station Replacement (Project No. 5-67)with projected expenditures of$10.5 million and Solids are then dewatered to a 20 percent solids $12.4 million, $13M respectively in FY 2018-19. consistency, called biosolids, and recycled via direct 52%of the FY 2018-19 net CIP outlay will be spent in land application or composting. construction. The four most significant construction Approximately 130 MGD of secondary effluent from projects are the Consolidated Demolition and Utility Reclamation Plant No. 1 is sent to the Orange County Improvements at Plant 2 (Project No. P2-110), Water District (OCWD) for recycling in its two Sludge Dewatering and Odor Control at Plant 2 treatment systems. (Project No. P2-92), Newhope-Placentia Trunk Replacement (Project No. 2-72) and Sludge The first is OCWD's Groundwater Replenishment Dewatering and Odor Control at Plant 1 (Project No. System (GWRS). The GWRS is the largest water Pl-101 with projected FY 2018-19 expenditures of $11.3 million, $11.9 million, $13.5 million, and $16.7 purification project its kind y the world and its ion was fund OCW D and OCSD. million, respectively. At 100 million gallons per day, the GWRS generates enough pure water to meet the needs of 850,000 Following within this section are individual capital people. improvement project detail sheets that have been provided as a brief overview of each project, the The second is OCWD's Green Acres Project (GAP) budget for the next five years, and the budget for the which is a water recycling effort that provides total project. reclaimed water for landscape irrigation at parks, schools and golf courses as well as for industrial The Treatment Process: uses, such as carpet dying. The total annual demand The Treatment Process Diagram on the following for GAP water is about four million gallons per day. page illustrates the stages of wastewater treatment in Secondary effluent from Treatment Plant No. 2, as relation to the flow of wastewater through the well as brine generated from the GWRS, is treatment process. The icons in the legend are discharged into the ocean through our ocean outfall shown as graphics in the individual CIP Detail Sheets systems. to give the reader insight about where a project correlates to the treatment process. Section 8- Page 2 Overview Treatment Process Diagram Ocean Systems B1entl aco Pump to Collections Headworks Primary Second erp Ocean Cumuli Treatment Treatment e Bn9 Aerzi Sefllinp .B8316% a81n Basin . ...... ...... Reclamation Incoming Wastewater from Homes and u^=• Businesses ElectAcky Heat ye Lard Systems Dewatering Application . Composting i r Solids Handling&Digestion Budget Legend D Ocean Outtall �l Solids Handling Systems & Digestion M Collections �!► Others ��g1i Strategic & y Facilities O r 0 Master Planning ® Equipment Primary Treatments Support Facilities �4 Headworks ® Process Related Utility Systems Special Projects Information Management Syste Secondary Treatment ® Water Management trts Projects Section 8- Page 3 2018-19 & 2019-20 Budget Project Summary FY 2018-19 Rehabilitation Strategic Additional Total Item and Initiatives Capacity Regulatory Budget Replacement Authority Collections Facilities $ 24,282,943 $ 3,400,201 $7 14,062,189 $ 1209,582 $ 42,954,915 Solids Handling&Digestion 24,363,030 304,086 8,340,897 - 33,008,013 Support Facilities 13,458,700 6,361,254 966,080 3,520,439 24,306,473 Utility Systems 16,704.908 - - - 16,704.908 Liquid Treatment: Headworks 12,397,710 2,500,263 - - 14,897,973 Ocean Outfall Systems 1,854,446 5,563,337 - - 7,417,783 Primary Treatment 5,040,352 - 189,666 - 5230,018 Secondary Treatment 3,522,391 - - - 3,522,391 Liquid Treatment Total 22,814,899 8,063,600 189,666 - 31,068,,65 Other: Process Related Special Projects - - - 9,372.763 9,372.763 Strategic&Master Planning 2,819,087 1,950,687 704,772 1,761,930 7,236,476 Information Management Systems 4,162.036 1,926.443 - 867,988 6,956.467 Equipment 895,600 895,600 895,600 895,600 3,582,400 Research - 2,166.356 - - 2,166.356 Water Management Projects - 108,588 - - 108,588 Others 105,711 - - - 105,711 Other Total 7,982,434 7,047,674 1,600,372 12,898,281 29,528,761 Grand Total $ 109,606,914 $ 25,176,815 $ 25,159,204 $ 17,628,302 $ 177,571,235 Section 8- Page 4 Summary of Capital Requirements - FY 2018-19 Solids Handling 8 Digestion $33aM ts.6% Other: Support Facilities $29 5M S24.3M 16.6% 13.7% Utility Systems $16714 94% Liquid Treatment $31.1M 17.5% Collections Facilities $4,2% 24.2% Total FV 2018-19 Capital Improvement Authority by Process -$177.6 Million Rehabilation and Replacement $mg 6M 61.7% Strategic Initiatives $25.2M 14.2% Regulatory1Nl Additicnal Capacity $17.6M - 52S2M 9.9% 14.2% Total FV 2018-19 Capital Improvement Authority by CIP Driver-$177.6 Million Section 8- Page 5 2018-19 & 2019-20 Budget Project Summary FY 2019-20 Rehabilitation Strategic Additional Total Item and Initiatives Capacity Regulatory Budget Replacement Authority Collections Facilities $ 17,055,200 $ 4,905,705 $ 12,475,411 $ 4,747,780 $ 39,194,096 Solids Handling 8 Digestion 11,934,504 412,370 2,297,977 - 14,644,851 Support Facilities 13,523,377 6,057.081 794,541 983,110 21,358,109 Utility Systems 8,817.089 - - - 8,817.089 Liquid Treatment: Ocean Outfall Systems 4,532,278 13,596,834 - - 18,129,112 Secondary Treatment 10,449,181 - - - 10,449,181 Primary Treatment 9,452,082 - 451,408 - 9,903,490 Headworks 7,506.074 2,300.703 - - 9,806.777 Liquid Treatment Total 31,938,615 15,897,537 451,408 - 48,287,560 Other: Information Management Systems 2,974,786 1,808.564 - 631.223 5,414.573 Process Related Special Projects - - - 4,431,775 4,431,775 Strategic B Master Planning 941,466 937.639 235.367 588,417 2,702.889 Equipment 618,650 618,650 618,650 618,650 2,474,600 Research - 1,315.161 - - 1,315.161 Others 219,498 7,241 - - 226,739 Water Management Projects - 139.973 - - 139.973 Other Total 4,754,400 4,827,228 854,017 6,270,065 16,705,710 Grand Total $ 88,023,185 $ 32,099,921 $ 16,873,354 $ 12,000,955 $ 148,997,415 Section 8- Page 6 Summary of Capital Requirements - FY 2019-20 Solids Handling 4 Digestion Support Facilities $14.6M $21.4M 98% 14A% Other: Way Systems $18.710 $8.8M 11.2% 5A% Collections Facilities $39.2M 26.3 Liquid Treatment' 548.3M 324% Total FY 2019-20 Capital Improvement Authority by Process -$149.0 Million Reinstallation and Replacement $88.0M 59A % Strategic Initiatives $32.1 M 21.5% Regulatory Additional Capacity $12.OM $18.910 8.1 % 11.3% Total FY 2019-20 Capital Improvement Authority by CIP Driver-$149.0 Million Section 8- Page 7 2018-19 & 2019-20 Budget Summary of Capital Requirement-Collection System Improvement Projects Project Total Est Coal 2018-19 201920 Project Phase Project WDak CaM1gew LaffiBow Future Budget Number 711118 Budget WM118 Budget Budget Budget gurus Collections Fail Raft B Bnalol Sumer Sewer EMIscrim 1.101 Planning $ 7,100,000$ 259,081 $ 135,409 242,829 6,462,683 Future Edinger gains China Trunk Imp, 1125 Planning 51159,000 5,159,000 Fuhlm Edinger Pump Station Upgrade B Rehab 1133 Plenning 14,100,000 14100,000 Future Slater Avenue Pump Slagm Rehab 1134 Planning 25,300,000 25,300,000 Fuhlm SARI Rock Stabil¢em Removal 2414 Design 6,860000 956915 1.050,174 4,687,312 158,599 Continuing Tag Branch Imp, 249 Running 2,13g000 12,072 2,11I,928 Fuhlm threadbare-Placentia Trunk Grace Suggestion Real. 2E5 CoulAmpl. 4,3W,o00 4,199,401 100599 Continuing New410pe-Pdcentla Trunk Repl. 2-II Cm&Ampl. 112,000,000 35,341,259 13,499,364 19,30,417 43,856,960 Cumming Yarns Linda Pump Station AlmrdonmeM 2.73 Ranning 10,8001000 10,800,000 Future Tustin Rase OCTA Grade Separation 2-76 CmslAmpl. 455,000 443,639 11,361 Reveal Beach TrunMNnod Inumeptcr Sewer Ralie( 360 Panning 136.0001000 136,000,000 Future Westminster BW Force Main Repl. 3-62 Design 541000,000 5,206834 3,356,135 3,002,210 42,432,813 Cumming Rehab of Wearing Regional Sewers 344 Design 202.000,000 12.152,930 6.537,370 6.656,821 176,651 Revised Interstate 405 Widening Pri Impacts an OCSD 34i6 Design 528,000 172,102 39,440 60,46E 255,902 Continuing Beavers Seal Beach Pump Station Rep. M7 Planning 78,900.000 4855% 1,214,803 7199,641 Non Los Nam9m Sub-Trunk Extension 358 Planning 66.000,000 66,000,000 New Newport Force Main Rehab 5.60 CmaLAmpl. 59,6(1 59,596532 71,40 Candming Crystal Cove Pump Station Upgrade 8 Rehab 556 Planning 17,900,000 17,900.W0 FUNm Bay Bridge Pomp Station Real. M7 Design 641000,000 84456T 13,o47599 3,622,954 4fip84,802 Candming Newpod But Pump Stations Pressurization Imp, 568 Planning 4.001 50,7 0 160,202 Sill Commuing Dii 6 Trunk Sewer Relief 6-17 CmslAmpl. 7,965,000 5,055,366 2,883,772 22.062 Candming Glsle-Red Hill Trunk lmR. Rmi 737 CanetAmpl. 25.213,000 23,536,059 1,674,9a3 Continuing MacArthur Pump Stell Rehab 7463 Planning 13,100,000 13,100,000 Ful Main Street Pump Station Rehab 7b4 Planning 60.400,000 60400,000 FUNre Gisler-Retl Hill Interceptor Rehab 7465 Planning 14,800,O00 211,211 14,588,709 Ful Bay Bridge Pomp pertion 8 Force Mains Rehab Study SP-178 Planning 725,000 725,000 CmAnuing Collections Fri Total Budget 993p69A00 113,5OI,155 Q,951,915 39,164,096 762,Bti Section 8-Page 8 Summary of Capital Requirements Summary of Capital Requirement-Treatment System Improvement Projects Project Total Est Cast Milli 201920 Project Ph.. Pat Wone Camel cai Future Budget Number 711118 Budget WM118 Budget Budget Budget gurus Equipment Equipment Purchases Equipment ConslAmpl. 9,593,700 3,536,700 3,582,400 2p74,600 CaNnuing Equipment Total 9,SB3,700 3,51 3,50,100 2AT4,600 HBafterka HeadooNS Rehab B Expansion at Pl 1:1-105 Design 37O,Ompm 10.890,664 12.397,710 7,506,074 339,216.532 Revised Trunk Line Odor Control lmpr. P1-123 Conetdmpl. 9,eb,Om 9,250,501 46,499 Catinuing Headoods Modifications at P2 for GWRB Final 1:2-in Design 54.01 2.614A55 2.951.764 2.300.703 46,632.668 Continuing Expansion Hmdworks Toed dl)M 000 22,74ON 14,07,973 9,605,77 335AUnO PrimaryTredbeetd Primary Callan Real s&lamp,.at P1 1:1-126 Planning 106,O1 520,765 105,479,235 Revised Primary Clarifiers 6-31 Reliability Imp,at Pl P1-133 Planning 21,500,000 329,331 902,815 20,217,854 N. BAOSgdc Primary Clarifier Rehab at P2 P2-133 Planning 249,560,000 249,MONO New Primary Treatment Rehab at P2 P2-98 Design 245,Om,Om 9,991,239 4,850,687 9,0 0,625 221,157,30 Reveal PrimarrI eahnena l 622,060,000 10,512,004 5,230,018 9,903,490 596,414,488 SecondaryTreehnent Return Activated Sludge Piping Real.at Activated P1-129 Design 7,9m,Om 588,623 697,946 5,970,017 643,364 Revised Sludge Pl AcOvdted Sludge Armenian Basin Deck Repair at P2 P2-118 ConstAmpl. 2,1100.000 1,317535 1,376.540 106,925 Continuing Retum Activated Sludge Piping Real.at Plant No 2 P2-123 Planning 12,750,000 394,235 1,447,905 4,3T3,239 6534,611 Revised SewndaryTmatmenl Total 23A50,000 2,300,443 3,521 10Ae3,181 7,1117,905 Solids Handling&Dgeston Digester Rehab at Pl ii Goodall 66,000.000 65,863,145 136,855 named Sludge Dawatenrg&Nor Control at Pl P1-101 Cmetnmpl. 199,5m,Om 177,390,045 16,661]94 4,596,956 832,207 Revised Interim Food Waste Recording Facility P2-124 Planning 6,3mAm 59,422 30 OW 412,370 5,324,122 Revised chaster P,O,R,&S Rep. P2-129 Planning 166,O1 168,000,000 Revised P2 Digester Faalities Rehab P2.91-1 Planning 20,000.000 778526 2,07,265 2,M.022 13,871,187 Revised Sludge Dewetedrg&Nor Control at P2 P24I2 CmetAmpl. 90,4r,Om 68,728,205 13,378,013 6,T93,505 1,672,217 CpNnuing Solids Handling&Di0eafion Teal 568,2T3,000 312,819,343 33,0118,013 14,644,851 187,804,793 ocean outfall Systems Ocean Outall System Rehab 1112 Design 166,000,000 21,999,936 7A17,783 18,129,112 11M3,169 Canning Ocean Outten Systems Total 168,OOOAD0 21,999,935 7A17,783 18,129,112 11BA53,169 UNIdy Systems UPS Sysmm Upgrades J121 Planning 4,7m,Om 4701 Future Ditil Gas count.Rehab }124 Design 96.5m,Om 695]75 4,896,117 3.627,156 87,280,852 Oannuing Natural Gas Pipelines Rai at Pt&P2 J127 Planning 1,310,Om 42.308 65.178 359,943 842,571 CwNnuing Section 8-Page 9 2018-19 & 2019-20 Budget Summary of Capital Requirement - Treatment System Improvement Projects Board Total En Cost 2018-19 201920 Project Phase Project WDate CaffiBew Canada. Future Budget Number 711110 Budget UM118 Budget Budget Budget But.. Utility Systems Phenol Power Cinnamon System lmpr, J-98 Planning 34,608,000 55,370 285,913 1.393.714 328T3,003 Future Central Generating Rehab at Pi P1-in Planning 87,000,000 6T,000,000 Continuing Unintermptable Power Supply lmpr.at P1 P1-132 Planning 4,80g000 30,163 154548 376534 4239,765 Canning Consolidated Damon.&USIIty Imp.at P2 P2-110 CondBmpl. 31,000,000 16,5643% 11,303,152 3,060,742 71,710 Banned Central Osmanli Rehab st P2 P2-119 Planning 114000,000 114000.000 Canning IXlllq Systems Total 373,918,000 17,31111,012 16,700,908 g81p089 331,007,901 Process Related Special Projects Safetylmpr.Program Ju126 Design 1910001000 5,195,462 9,371,783 4p31,725 Continuing Prouss Behead Special Projects Total 19,GAg000 5,19;462 9,372,763 4A31,775 Information Management Systems Process Control Systems Upgrades 1120 Planning 46,111 23$064 45,760,136 Future Project Mgmt 1pormaaon Spent 1128 Planning 4,000,00D 876705 1.658.647 1.451 Cwanuing Information Technology Capital Program B4MC-IT Conddmpl. 10,0W,000 1,230,66T 515,592 7D7,833 7,Sd5,908 Continuing SCADA System B Metal Upgrades P3-107 Design 5,0c0,000 3.658.180 1.299.323 32,497 Continuing EAM Sagami,B Process Implementation SP-100 Conetdmpl. 7,500,000 5,015163 W1,955 1,178,517 Sail Continuing Geographic anformaaon System SP-15 ConatAmpl. 4.568.000 3.008.789 867,988 631,223 Rawasd Process Control Systems Upgrades Sandy SN196 Planning 3,5u,000 721,046 1,662,962 1,169,992 Continuing Information Management Systems Total W,622,000 14,584,551 6,9%,1ar 5AI073 53p70A09 Strategic&Master Planning Planning Studies Program MPSTUDIES Planning 28,652,000 13,799,868 7,047,719 2,353,667 5,45D,746 CwNnuing Climate Reagan,Study SP-152 Planning 5901000 52,021 188]57 349,222 Cumming Strategic 6 Master Planning Total 29,242,000 13,851,889 7,236,476 2,702,889 S,650,746 Water Management Projects GWRS Final Eagansion Coordination 1362 Planning 1,1g2,0ag 122,302 lixi' B 139,973 761,137 Continuing Water Management Projects Total 1,132,000 ug,302 108,588 13911 761,137 Research Recearch Program M-RESEARCR Planning 8,M,OW 952,490 2,166,356 1,315,161 4,01 Rensad Research Total 8,W0,o00 8524Po 3,166,356 1,315,161 4,065,882 Support Facilities 18350 Min Langley St.Building Purdlaee&Improvemerd 1131 Planning 11.000,000 9.752410 126,931 435,785 W.873 Revised Small Construction Projects Pregram FIFE ConetAmpl. 55,0e0,000 12,333,994 9,660,004 7,945,406 25,059,T96 Revised Operations&Maintenance Captal Program MS64CAP Design 15.622,000 51 930,125 2,11M.358 12079,232 CaNnuing The 24 Access Camphor.B Buii Rehab Project P1-115 ConetAmpl. 18,4e0,000 15,657,072 2,554359 till Revised P1-128 Neadeusters Comples&Site Scarily at Pl P1-128 Design 179.057,000 2.460,949 10530d80 9,653508 156,416,057 Continuing Section 8-Page 10 Summary of Capital Requirements Summary of Capital Requirement-Treatment System Improvement Projects Project Total Est Coat 2018-19 201920 Project Ph.. Project to Oars Cade caster. Future Budget Number 711118 Budget WM118 Budget Budget Budget Btatua Support FaulAiae P2 Warehouse Relaca6gn 1,2-126 Planning 9,800,000 497769 195424 9106,808 Command P2 Willi Yad Mai P2-iV Planning 1,84o,ow IU0,000 Reused TPAD Digester Facility at P2 P2-128 Planning 405.100,000 91 404193,942 Fehsetl Support Facilities Teal 825,829,0013 40,763,710 24,3M,03 21,358,100 6NMO,M8 More Banning Gale Rabcffion S Gentling at P2 P2-120 Planning 2,931,000 7,241 2,03,769 CpNnuing Perimeter Screening at P2 P2-125 Planning 2,800,000 39,553 1W,711 219498 2,435,n8 Coed ing Cali lmpmvement Program Mgmt Sarvlces SP-195 Planning 3001000 70,630 229,370 Ursnuing Others Total 6,031,000 110,183 105,711 226,739 5.581 Total Treatment and Disposal Projects l007,340,000 483,352,355 131.033,920 fOT,3N,T19 2,305,625,006 Total Collections Facilities 993,469,01H 1495K755 42,91 39,181 762,825,234 Capital Equipment Purchases 9,583,iM 3,51 3.5111 2,474,600 Total Capital lmprowment Program Budget 64,010,422,700 $615,403,810 $177,571,235 3148,997,415 $3,068,45Q240 Section 8-Page 11 2018-19 & 2019-20 Budget Project Name&Number I Raitt and Bristol Street Sewer Extension - 1.101 Project Category Collections Facilities Project Status: Future Description This project will replace 2,360 linear feet 21-inch City of Santa Ana sewer with 24owf Sanitation District's sewer line and a parallel 8-inch City of Santa Ana sewer line too allow for redirecting all house lateral connections.The sewer line is located along Myrtle Street, between Raid and Bristol Streets in the City of Santa Ana. Collections Facilities Justification This project was identified in the 2006 Strategic Plan Update and is needed to reduce the potential for minor surcharging in the Lower Bristol Trunk during major storm events. The project budget has been decreased from$13,622,000 to$7,100,000. The reduced budget is a result of changes in the project elements as delemlined in the 2017 Facilities Master Plan. The project's construction cost is$3,970,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 201940 202041 202142 202243 Thereafter Total Project Date Budget Proj Dev 255,168 38,884 39,039 1,556 334,647 Prelim Design 104,426 14,790 119,216 Design 3,610 196,190 387,392 131,708 718,900 Construction 303 247,842 4.361,816 4.609,961 Commissioning 79,474 79,474 Close-out 19,868 19,868 Contingency 96,524 99,363 115,599 135,058 162,638 608,754 1217,934 I 259,081 135,4011 242,828 328,135 522,4411 542,1811 5.069,912 7,100,0 Reimbursable Costs: N/A Section 8-Page 12 CIP Project Detail Sheets Project Name&Number I Edinger Boise Chloe Trunk Improvements - 11-25 Project Category Collections Facilities Project Status: Future Description The scope of this project includes increasing the suet i approx. in4,000 Bose Chfeet of Edinger Bolsa Chica Trunk from 12-inches to 1 Sinches. The project is located in Boise Chica Street from Robinwood Drive, north to Boise Avenue in the City of Huntington Beach. Collections Facilities Justification The need for this project was identified in the 2006 Strategic Plan Update. These improvements will accommodate changing flow patterns due to planned development strategies,economic influences,and potential wet weather surcharges. The projects construction cost is$3,010,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020-21 2021-22 20=3 Thereafter Total Project Date Budget Proj Dev 60,153 60,153 Prelim Design 90,250 90,250 Design 541,498 541,498 Constructor, 3,489,698 3,489,698 Commissioning 60,165 60,165 Close-out 15,042 15,042 Contingency 902,194 902,194 5,159,0 Reimbursable Costs: N/A Section 8-Page 13 2018-19 & 2019-20 Budget Project Name&Number I Edinger Pump Station Upgrade and Rehabilitation - 11.33 Project Category Collections Facilities Project Status: Future Description The purpose of the Edinger Pump Station Rehabilitation Project is to execute the conceptual design plan that is currently being developed as a result of the study by the same name.This project will rehabilitate the Edinger Pump Station to improve the condition of the structures and the mechanical piping and support systems. The electrical and controls system will also be updated. Collections Facilities Justification Edinger Pump Station was originally constructed in 1968. Although the pumps have recently been replaced,the control systems are rapidly becoming obsolete and the facility is relatively dangerous to access. The electrical system does not comply with current codes. The project budget has been increased from$8,880,000 to$14,100,000. The increased budget is needed based on escalation of costs associated with delaying the project as determined in the 2017 Facilities Master Plan. The projects construction cost is $7,640,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Date Budget Proj Dev 120,868 31,938 152,806 Prelim Design 229,235 229,235 Design 1,757,480 1,757,480 Construction 9,398,696 9,398,696 Commissioning 152,837 152,837 Close-out 152,825 152,825 Contingency 2,256,121 2,256,121 120,868 13,979,132 14,100,0 Reimbursable Costs: N/A Section 8-Page 14 CIP Project Detail Sheets Project Name&Number I Slater Avenue Pump Station Rehabilitation - 11-34 Project Category Collections Facilities Project Status: Future Description This project will rehabilitate the existing Slater Avenue Pump Station to meet current building, electrical and safety codes,and OCSD design standards,and to extend the useful life of the pump station. In addition to the improvements to the pump station,both force mains currently serving this pump station will be rehabilitated. Collections Facilities Justification Slater Avenue Pump Station was constructed in the late 1990s and needs rehabilitation to maintain the pump station's reliability in the coming decades. The electrical system does not meet current building code requirements. The ductile iron force mains,one of which was constructed with the original Slater Avenue Pump Station,are aging and need to be rehabilitated. The project budget has been increased from$9,729,000 to$25,300,000. The increased budget is needed based on changes in the project elements as determined in the 2017 Facilities Master Plan. The projects construction cost is$13,680,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202031 201 201 Thereafter Total Project Date Budget Proj Dev 273,657 273,657 Prelim Design 410,488 410,488 Design 3,147,049 3,147,049 Construc9on 16,829,872 16,829,872 Commissioning 273,648 273,648 Close-out 273,657 273,657 Contingency 4,091,629 4,091,629 25,300,000 25,300,0 Reimbursable Costs: N/A Section 8-Page 15 2018-19 & 2019-20 Budget Project Name&Number I SARI Rock Stabilizers Removal - 241-8 Project Category Collections Facilities Project Status: Continuing Description This project involves the removal and disposal of approximately tons rip rap rocks from Green G within sensitive habitat in the Santa Ana River bed between the Green River Golf Course and Weir Canyon Road in Yorba Linda.The work also includes the restoration and mitigation of temporary gravel access roads. Collections Facilities Justification This is a condition of the emergency permits issued by the US Army Corps of Engineers over the years for temporarily protecting the SARI line. The project's construction cost is$4,160,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Data Budget Proj Dev 338,018 338,018 Prelim Design 323.096 323,096 Design 244,970 11,041 256,011 Construction 3,801 946,051 3,980,533 4,830,385 Commissioning Close-out 28,016 28,016 Contingency 46,029 201,082 678,763 158,599 1,084,473 955.915 1,058,174 4,687,312 158,511 Reimbursable Costs: 161.214 Section 8-Page 16 CIP Project Detail Sheets Project Name&Number I Taft Branch Improvements - 249 Project Category Collections Facilities Project Status: Future Description The purpose of this project is to increase the capacity of a portion of the Taff Branch regional sewer. in The project includes replacing approximately 9,500 feet of 12-inch to 18-inch pipe with iSinch to 24-inch diameter pipe along both Taft and Meats Avenues in the City of Orange. Collections Facilities Justification This project was identified in the 2006 Strategic Plan Update. These improvements will accommodate changing flow patterns due to planned development strategies,economic influences,and potential wet weather surcharges. The project budget has been increased from$1,928,000 to$2,130,000. The increased budget is needed based on changes in the project elements as determined in the 2017 Facilities Master Plan. The project's construction cost is$1,230,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 9,375 24,690 34,065 Prelim Design 37,032 37,032 Design 2,697 222,207 224,904 Construction 1,431,974 1,431,974 Commissioning 24,697 24,697 Close-out 6,174 6,174 Contingency 371,154 371,154 Total 12,072 Reimbursable Costs: N/A Section 8-Page 17 2018-19 & 2019-20 Budget Project Name&Number I Newhope-Placentia Trunk Grade Separation Replacement - 2-65 Project Category Collections Facilities Project Status: Continuing Description This project will replace a section of the College D'sBoulevard Newhevard between Ora Trunk and Wastewater Disposal Company Sewers in Slate College Boulevard behveen Orangethorpe and Commonwealth. The project is being done with the City of Fullerton as part of a railroad grade separation project. Collections Facilities Justification The existing sewers need to be relocated to accommodate the undergrounding of State College Boulevard below the railroad tracks at the intersection of Valencia Drive and State College Boulevard. These improvements will also accommodate the projected increases in flow for this section of sewer from planned developments and growth and be designed to convey potential wet weather surcharges. The project is anticipated to be constructed by the City of Fullerton's contractor performing the roadwork under the railroad. The original project and budget were to upsize a large stretch of sewer that will be hydraulically deficient. The remaining portion of the sewer upsizing was re-budgeted under a new CIP project. The projects construction cost is$3,170,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Data Budget Proj Dev 103,062 103,062 Prelim Design 64,933 64,933 Design 313,041 313,041 Construction 3,653,607 3,653,607 Commissioning Close-out 13,7861 9,0091 22,795 Contingency 50,972 91,590 142,562 4,199,401 100,599 4,300,000 Reimbursable Costs: N/A Section 8-Page 18 CIP Project Detail Sheets Project Name&Number I Newhope-Placentia Trunk Replacement - 2-72 Project Category Collections Facilities Project Status: Continuing Description This project will increase the size of Orangewood Avenu feet a the Newhope r will ntiammod sewer from Yorba Linda Boulevard to Orangewood Avenue. The upsized sewer will accommodate Flows from the newly abandoned Yorba Linda Pump Station and the newly interconnected Atwood Sub- trunk. The scope also includes rehabilitating five sections of the Rolling Hill Sub trunk,and abandoning any remaining portion of the wastewater disposal company sewer alignment not used for the new pipeline. Collections Facilities JustiFlcatlon This section of the Newhope-Placentia Trunk Sewer was originally constructed in 1961. These improvements will accommodate the projected flow increases due to the abandonment of the aging Yorba Linda Pump Station,increase capacity in a short portion of the Rolling Hills Sub-trunk that is undersized when burdened by 2030 wet weather flows,and increase operational flexibility of the collection system. The projects construction cost is$79,460,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Data Budget Proj Dev 132,601 132,601 Prelim Design 6,033,652 6,033,652 Design 4,506,048 379,446 4,885,494 Construction 24,198,835 12,280,833 17,457,161 18,336,097 17,741,675 90,014,601 Commissioning Close-out 4,765 14,774 12,924 8,082 244,056 73,276 357,877 Contingency 465,358 824,311 1,832,332 2,794,834 3,857,972 800,968 10,575,775 Total 35,341.259 13,499,364 19,302,417 21,139,013 21,943,703 874,244 Reimbursable Costs: N/A Section 8-Page 19 2018-19 & 2019-20 Budget Project Name&Number I Yorba Linda Pump Station Abandonment - 2.73 Project Category Collections Facilities Project Status: Future Description This project will abandon the Vorba Linda Pump Station and downstream force main. Gravity sewers located in Vorba Linda Boulevard will also be reconfigured to improve access to the facilities for maintenance. Flows which are currently being pumped by the Vorba Linda Pump Station east �i will be conveyed by gravity through the newly upsized Newhope-Placentia Trunk located in State College Boulevard to the west. Collections Facilities Justification The Vorba Linda Pump Station was built, in part,to convey Flow away from undersized gravity sewers located in State College Boulevard. Land development in the vicinity necessitates the upsizing of the same gravity sewers and the project to do so is currently in design. When complete the pump station will no longer be needed. Also,the pump station is rapidly aging and does not meet current electrical and safety codes. Costly rehabilitation would be necessary for the pump station to remain in service. The project budget has been increased from$7,053,000 to$10,800,000. The increased budget is needed based on escalation of costs associated with delaying the project as determined in the 2017 Facilities Master Plan. The projects construction cost is $5,840,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020-21 202182 20=3 Thereafter Total Project Date Budget Proj Dev 85,034 31,834 116,868 Prelim Design 155,470 19,842 175,312 Design 49,543 1,294,480 1,344,023 Construc9on 7,187,605 7,187,605 Commissioning 116,872 116,872 Close-out 116,870 116,870 Contingency 24,331 153,501 1,564,618 1,742,450 709,365 390,348 10,300,287 10,800,0 Reimbursable Costs: N/A Section 8-Page 20 CIP Project Detail Sheets Project Name&Number I Tustin Rose OCTA Grade Separation - 2-76 Project Category Collections Facilities Project Status: Revised Description This project will provide construction costs and staff support costs for the realignment of an OCSD trunkline as pad of Orange County Transit Authority's(OCTA)Grade Separation Project at the intersection of Tustin Avenue/Rose Drive and Orangethorpe Avenue. Collections Facilities Justification The Orange County Transportation Authority(OCTA)will construct a vehicle overpass at the intersection of Tustin Avenue/Rose Drive and Orangethorpe Avenue,along the Burlington Northern Santa Fe railroad track. An OCSD trunkline will need to be relocated as part of the project. The design of relocating OCSD's trunkline is complete and was paid for by OCTA. The project budget has been decreased from$586,000 to$455,000. The reduced budget is a result of an updated estimate to complete the work based on project closeout and release of contingency. The projects construction cost is$300,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Date Budget Pmj Dev Prelim Design Design Construc9on 424.270 424,270 Commissioning 15,906 5,300 21,206 Close-out 715 1,570 2,285 Contingency 2,749 4,491 7,240 443,639 11,361 Reimbursable Costs: N/A Section 8-Page 21 2018-19 & 2019-20 Budget Project Name&Number I Beach Trunk/Knott Interceptor Sewer Relief - 3-60 Project Category Collections Facilities Project Status: Future Description The purpose of this project is increase the capacity of numerous OCSD regional sewers located in the City of Buena Park. The project consists of the following potential capacity improvements projects: 1)upsize 11,100 feet of 39 to 45-inch pipe along Knott Avenue from Orangelhorpe Avenue to Artesia Boulevard,East to Kingman, and North to Dobbs Avenue,and 2)upsize 9,800 feet of 24 to 36-inch along Knott Avenue from Sth Street north to Artesia Boulevard and then east to Dale Street. Portions of the pipe within the project limits will be rehabilitated with a structural liner and aging manholes will also be rehabilitated. Collections Facilities Justification The need for this project was identified in the 2006 Strategic Plan Update. These improvements will accommodate changing flow patterns due to planned development strategies, economic influences,and potential wet weather surcharges. The facilities are also aging and need to be rehabilitated. The project budget has been increased from$118,678,000 to$136,000,000. The increased budget is needed based on an updated estimate to complete the work. The projects construction cost is$84,030,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Date Budget Proj Dev 369,750 369,750 Prelim Design 66,072 1,194,432 1,260,504 Design 11,764,769 11,764,769 Construction 96,639,133 96,639,133 Commissioning 840,341 840,341 Close-out 214,287 214,287 Contingency 170,822 24,740,394 24,911,216 606,6441 135,393,356 136,000,0 Reimbursable Costs: N/A Section 8-Page 22 CIP Project Detail Sheets Project Name&Number I Westminster Blvd Force Main Replacement - 3-62 Project Category Collections Facilities Project Status: Continuing Description This project will replace the two existing Westminster Blvd force mains that extend along Westminster Blvd for almost 3 miles from Seal Beach Blvd in the City of Seal Beach to Rancho Rd in the City of Westminster. The exiting siphons near Rancho Rd will be slip lined to extend the force main to terminate at an existing discharge structure.A Midway City Sanitation District(MCSD) sewer will be re-routed and extended to a downstream OCSD manhole. Collections Facilities Justification The pump station currently operates with just one of two force mains,a 42"ductile iron pipe that has no cathodic protection system. The other force mains is reinforced plastic mortar pipe in danger of failing and cannot be placed back into operation,thus eliminating operational redundancy. This project will replace the existing Westminster Blvd force mains to provide adequate redundancy and increase capacity to handle the new predicted peak wet weather flow of 34 MGD. The projects construction cost is$34,800,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Data Budget Proj Dev 199,656 199,656 Prelim Design 4,862,940 4,862,940 Design 56,249 2,972,275 1,062,696 4,091,220 Consauc9on 77 1,452,550 14,859,308 15,733,183 6,524,599 38,569,717 Commissioning 63,337 238,984 137,030 439,351 Close-out 425,0121 425,012 Contingency 89,911 383,860 486,972 994,431 1,818,281 1,472,521 166,127 5,412,103 5.208,834 3,356,135 3,002,218 15,917,076 17,790,448 8,559,162 166,127 54,000,0 Reimbursable Costs: N/A Section 8-Page 23 2018-19 & 2019-20 Budget Project Name&Number I Rehabilitation of Western Regional Sewers - 3-64 Project Category Collections Facilities Project Status: Revised Description The project will replace or rehabilitate a significant portion the sewers and manholes l in Revenue Area 3. The extent of the rehabilitation/replacemea nt effort includes Orange Western Sub- Trunk and Knott Avenue Collector; (19,202 feet) the Los Alamitos Sub-Trunk;(34,392 feel),and the Westside Relief Interceptor pipeline;(33,164 feet). These sewers are located primarily within public rights of way except for a few segments within Sanitation Districts easements in the Cities of Rossmoor(Unincorporated Areas of County of Orange), Seal Beach,Los Alamitos,Cypress, Anaheim,Buena Park and La Palma. Collections Facilities Justification Most of the sewers were originally constructed in late 1950's and early 1960's.The estimated life of this type of pipe is 40 to 50 years.During routine cleaning of the sewer, it has been noted that the sewer liner had significant defects and the joints are allowing significant amounts of groundwater into the sewers. The area has a high groundwater level that can contribute to the formation of sink holes if sediments are allowed to continue to be washed into the sewer through the failed joints and cracks. Upsizing the Westside Relief Interceptor will provide capacity for future flows projected from redevelopment and inflow in the City of Cypress. The project budget has been decreased from$217,069,000 to$202,000,000. The reduced budget is a result of changes in the project elements identified from recent engineering efforts. The project's construction cost is$132,800,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 489,057 44 489,101 Prelim Design 11,298,267 3,179,596 14,477,863 Design 187,153 2,439,937 4,312,280 625,001 7,564,371 Consauc8on 8,509 654,816 18,377,134 27,375,471 28,701,472 76,761,285 151,878,687 Commissioning Close-out 41,742 59,467 110,319 182,653 394,181 Contingency 128,202 917,837 1,689,725 1,950,083 3,669,118 4,825,729 14,015,103 27,195,797 Total 12,152,930 6,537,370 6,656,821 20,952,218 31,104,056 33,637,520 90,959,085 202,000,000 Reimbursable Costs: N/A Section 8-Page 24 CIP Project Detail Sheets Project Name&Number I Interstate 405 Widening Project Impacts on OCSD Sewers - 3-66 Project Category Collections Facilities Project Status: Continuing Description This project will provide reimbursement for staff support for(OCT the realignment/conflicts of of District facilities as part of Orange County Transit Authority's(OCTA)proposed widening of the Interstate 405(1-405)between State Route 73 and Interstate 605. Collections Facilities Justification In partnership with the California Department of Transportation(CalTrans),the Orange County Transportation Authority(OCTA) proposes to widen the Interstate 405(1-405)between State Route 73 and Interstate 605.This project will require relocation of existing District facilities.Eight utility agreements provide the terms for 22 District facility conflicts and reimbursement up to $427,151. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Data Budget Proj Dev 116,877 116,877 Prelim Design Design 40,032 40,032 Consauc9on 12,399 18,066 23,935 24,623 10,452 89,475 Commissioning Close-out 27,298 190 27,488 Contingency 2,794 21,382 36,533 53,862 70,640 68,917 254,128 172.102 39,448 60,468 78,485 108,390 69,107 528,0 Reimbursable Costs: N/A Section 8-Page 25 2018-19 & 2019-20 Budget Project Name&Number I Seal Beach Pump Station Replacement - 3-67 Project Category Collections Facilities Project Status: New Description This project will replace the existing Seal Beach Pump Station the existing site and demolish the old pump station when the new one is complete. The new pump station will have a deeper wet well to allow gravity flow from the future extension of the Los Alamitos Sub-Trunk from the West Side Pump Station to the Seal Beach Pump Station,thus allowing the West Side Pump Station to be abandoned. Extension of the Los Alamitos Sub-Trunk and abandonment of the West Side Pump Station is budgeted under Los Alamitos Sub-Trunk Extension, Project No.3-68. The project will also include odor control improvements of vapor-phase and liquid-phase treatment at the pump station to minimize both upstream and downstream odors and corrosion. Collections Facilities Justification The existing Seal Beach Pump Station is in need of extensive rehabilitation due to age and condition. A life-cycle cost evaluation determined that the most cost effective alternative is to replace the existing pump station on site to allow extension of the Los Alamitos Sub-Trunk by gravity and abandonment of the West Side Pump Station. The projects construction cost is$42,660,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 201980 202081 202182 20=3 Thereafter Total Project Date Budget Proj Dev 453,774 399,323 853,097 Prelim Design 542,310 737,348 1,279,658 Design 1,820,788 4,157,259 3,832,641 9,810,688 Construc9on 639,960 51,825,871 52,465,831 Commissioning 853,091 853,091 Close-out 853,105 853,105 Contingency 31,782 273,170 618,921 1,004,223 1,407,674 9,448,760 12,784,530 485,556 1,214,803 3,177,057 5,161,482 5,880,275 62,980,827 78,900,000 Reimbursable Costs: N/A Section 8-Page 26 CIP Project Detail Sheets Project Name&Number I Los Alamitos Sub-Trunk Extension - 3-68 Project Category Collections Facilities Project Status: New Description This project will extend the Los Alamitos Sub-trunk by gravity from the Westside Pump Station to the new,deeper Seal Beach Pump Station to be constructed under Seal Beach Pump Station Replacement, Project No.3-67. It will also abandon the existing Westside Pump Station. Collections Facilities Justification Extension of this section of gravity sewer will allow the Westside Pump Station to be abandoned when it reaches the end of its useful life,at which point it would require replacement on a different site. The projects construction cost is$40,770,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Date Budget Proj Dev 179,365 179,365 Prelim Design 611,493 611,493 Design 5,707,286 5,707,286 Construction 46,881,256 46,881,256 Commissioning 407,665 407,665 Close-out 103,951 103,951 Contingency 12,108,984 12,108,984 66,000,000 66,000,000 Reimbursable Costs: N/A Section 8-Page 27 2018-19 & 2019-20 Budget Project Name&Number I Newport Force Main Rehabilitation - 5.60 Project Category Collections Facilities Project Status: Continuing Description This project will rehabilitate approximately 28,000 feet of the Newport Force Main system located on Pacific Coast Highway in Newport Beach between the Biller Point Pump Station and Dover Drive.The force main system consists of two parallel, interconnected pipelines,varying in size from 22 to 36 inches. More than half of the force main system will be rehabilitated rather than replaced to minimize impacts to the community, businesses,tourism and the environment. Collections Facilities Justification The force main system has reached the end of its useful life. Rehabilitation and replacement is necessary because the force main system is more than 50 years old and has experienced multiple structural failures due to corrosion since 1984. The project's construction cost is$46,200,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 1,224,529 1,224,529 Prelim Design 2,364,482 2,364,4a2 Design 1,658,807 1,658,807 Consbuobon 53,635,489 71,468 53,706,957 Commissioning 376,321 376,321 Close-out 336.903 336,903 Contingency Total 59,596,532 71,468 Reimbursable Costs: N/A Section 8-Page 28 CIP Project Detail Sheets Project Name 8.Number I Crystal Cove Pump Station Upgrade and Rehabilitation - 5-66 Project Category Collections Facilities Project Status: Future Description This project will rehabilitate the existing Crystal Cove Pump Station to maintain compliance with electrical and safety codes,and to restore the condition of the aging facility. The project also consists of rehabilitating the two 8-inch ductile iron force mains. The existing gravity system in the �i vicinity of the pump station,located in Pacific Coast Highway, will also be assessed and rehabilitated as needed. Collections Facilities Justification The Pump Station was originally constructed in 1995 and needs rehabilitation to maintain the pump station's reliability in the coming decades.The electrical system does not meet current code requirements. The control system is out of date and does not meet OCSD standards. The force mains are not currently protected from corrosion. The project budget has been increased from$10,882,000 to$17,900,000. The increased budget is needed based on changes in the project elements as determined in the 2017 Facilities Master Plan. The projects construction cost is$9,660,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Date Budget Proj Dev 193,168 193,168 Prelim Design 289,755 289,755 Design 2,221,441 2,221,441 Cnstruc9on 11,879,873 11,879,873 Commissioning 193,167 193,167 Close-out 193,167 193,167 Contingency 2,929,429 2,929,429 17,900,000 17,900,0 Reimbursable Costs: N/A Section 8-Page 29 2018-19 & 2019-20 Budget Project Name&Number I Bay Bridge Pump Station Replacement - 5-67 Project Category Collections Facilities Project Status: Continuing Description This project will replace the existing Bay Bridge Pump Station to ,at current building,electrical, and safely codes and OCSD design standards. The Bay Bridge Pump Station associated force mains will also be replaced.The force mains to be replaced extend from Bay Bridge Pump Station to a valve box on the west side of Upper Newport Bay. Collections Facilities Justification The Bay Bridge Pump Station was originally constructed in 1966.The pumping systems are aging, and have control systems that are rapidly becoming obsolete,all require additional attention from maintenance staff. Also,the existing pumping station does not comply with current electrical and safety codes. The force mains have reached the end of their expected life and the risk of failure will increase if not addressed. The projects construction cost is$27,060,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202031 201 201 Thereafter Total Project Data Budget Proj Dev 433,735 433,735 Prelim Design 309.792 3,030,107 120,329 3,460,228 Design 58,245 9,683,780 2,791,835 2,193,724 14,727,584 Construction 1,774 2,378,251 17,371,467 14,433,056 2,438,881 36,623,429 Commissioning 141,360 481,310 210,245 832,915 Close-out 143,0761 270,"64,000,0 Contingency 41,021 333,710 710,790 986,577 1,624,005 2,132,229 1,679, Total 844.567 13,047,597 3,622,954 5,558,552 19,136,832 17,189,671 4,599, Reimbursable Costs: N/A Section 8-Page 30 CIP Project Detail Sheets Project Name 8.Number I Newport Beach Pump Stations Pressurization Improvements - 5.68 Project Category Collections Facilities Project Status: Continuing Description This project will address the ventilation issues that causes odorants to migrate to unwanted areas at the Newport Beach collections system pump stations. It will also provide odor control at selected pump stations and gravity lines in the Newport Beach collections system. Collections Facilities Justification This will reduce corrosion at the pump stations, reduce odor complaints,and allow the onsite bathrooms to be used. The projects construction cost is$2,030,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 2019420 2020421 2021422 2022423 Thereafter Total Project Date Budget Pmj Dev 31,697 9,001 40,698 Prelim Design 56,447 4,597 61,044 Design 28,200 275,651 164,152 468,003 Consauc0on 622,204 1,880,585 2,502,789 Commissioning 3,020 37,679 40,699 Close-out 40,697 40,697 Contingency 19,023 66,554 125,028 204,371 339,650 157,444 912,070 50,720 160,202 405,276 993,747 2,298,611 157,4441 4,066,000 Reimbursable Costs: N/A Section 8-Page 31 2018-19 & 2019-20 Budget Project Name&Number I District 6 Trunk Sewer Relief - 6-17 Project Category Collections Facilities Project Status: Continuing Description This project is to increase the capacity,rehabilitate and performaccess improvements for the District 6 Trunk sewer.The existing 3,700 feet of 12-inch through h 18-inch pipeline runs west of Pomona,southerly to 16th Street,to Newport Boulevard, and southerly along Newport Boulevard towards Coast Highway in the Cities of Costa Mesa and Newport Beach. Portions of the sewer that are not being increased in size are being rehabilitated so the life of this sewer will be extended by 30 years. Combined into this work are Maintenance access improvements for OCSD personnel. Collections Facilities Justification The need for this project was identified in the January 2006 Draft Strategic Plan Update. Based on current flow projections and hydraulic modeling,this project is needed to reduce the potential for surcharging and sewer spills due to projected increase in flow from planned developments and growth. Investigations during preliminary design also revealed the that segments not being up- sized, required rehabilitation and maintenance access improvements. The projecfa construction cost is$3,700,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 20204!1 20214!2 20224!3 Thereafter Total Project Data Budget Proj Dev 70,429 70,429 Prelim Design 442.648 442,648 Design 1,461,047 1,461,047 Construction 2,856,213 1,799,284 4,655,497 Commissioning 6,985 9,714 16,699 Close-out 77,319 77,319 Contingency 218,043 1,000,455 22,862 1,241,360 5,055,366 2,886,772 22,862 1 1 7 Reimbursable Costs: N/A Section 8-Page 32 CIP Project Detail Sheets Project Name&Number I Gisler-Red Hill Trunk Improvements-Reach B - 7-37 Project Category Collections Facilities Project Status: Continuing Description This project will replace ll section of the existing sewer and rehabilitate other reaches in the Gisler - Redhill System. This will include installing larger diameter pipelines, providing interties,new diversion settings,sliplining and relining manholes.The project includes repairs of up to 13,200 feet along Redhill Avenue in the Cities of Santa Ana,Tustin and Irvine. Collections Facilities Justification This section of the Gisler-Redhill System was originally built in the 1960's. Based on hydraulic analysis and condition assessments of the pipes, a new replacement section of pipeline and rehabilitation of other sections are needed.To accommodate near-tenn future flows the project will also reset several diversions to accommodate new flows. The project's construction cost is$17,720,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 15,006 15,006 Prelim Design 293,306 293,306 Design 3,089,653 3,089,653 Construction 19,728,822 1,257,750 20,986,572 Commissioning 207 207 Close-out 145.9691 87,0211 232,990 Contingency 265,094 330,172 595,266 Total 23,538.057 1,674,943 Reimbursable Costs: N/A Section 8-Page 33 2018-19 & 2019-20 Budget Project Name&Number I MacArthur Pump Station Rehabilitation - 7-63 Project Category Collections Facilities Project Status: Future Description This project will rehabilitate the existing MacArthur Pump Station,force main and upstream gravity system pipeline and manholes(approximately 2,000 linear feet of 8-inch pipe and eight manholes). The existing station is located in the vicinity of John Wayne Airport in the City of Newport Beach. The work includes bringing the pump station into compliance with the latest applicable electrical and safety codes and replacing maintenance-intensive pumps. 700 feet of the nearby Von Kaman Trunk Sewer(located in Campus Drive north of the pump station)will also be upsized as part of this project. The sewer,which is a 12-inch vitrified clay pipe(VCP),will be upsized to 15-inch in diameter. Collections Facilities Justification The MacArthur Pump Station was originally built in 1960.The pump station is aging and requires increased effort to adequately maintain,does not comply with current electrical and safety codes,and needs to be upgraded to reliably serve the cities of Irvine and Newport Beach. The age and condition of the force main indicates that it needs to be replaced and the condition of the upstream sewers indicates that rehabilitation is necessary in the near future. The capacity project for the Von Karmen Trunk Sewer was identified in 2006 Strategic Plan Update. The project budget has been increased from$8,762,000 to$13,100,000. The increased budget is needed based on changes in the project elements as determined in the 2017 Facilities Master Plan. The project's construction cost is$7,060,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Date Budget Proj Dev 141,180 141,180 Prelim Design 211,777 211,777 Design 1,623,600 1,623,600 Construc9on 8,682,730 8,682,730 Commissioning 141,182 141,182 Close-out 141,183 141,183 Contingency 2,158,348 2,158,348 13,100,000 13,100,0 Reimbursable Costs: N/A Section 8-Page 34 CIP Project Detail Sheets Project Name&Number I Main Street Pump Station Rehabilitation - 7-64 Project Category Collections Facilities Project Status: Future Description This project will rehabilitate the existing Main Street Pump Station to meet current building, t electrical and safety codes and to extend its useful life. In addition to the pump station,two of three force mains will be rehabilitated and access manholes constructed for future condition assessments and the third force main will be completely reconstructed as part of this project. The condition of gravity system components in close proximity to the pump station such as a reinforced concrete pipe and access manholes will be assessed and the facilities rehabilitated as needed. Collections Facilities Justification Main Street pump station was constructed in 1987 and needs rehabilitation to maintain the pump station's reliability in the coming decades. Two of the force mains that serve this facility are ductile iron pipe and have been operating without corrosion protection. The project budget has been increased from$39,219,000 to$60,400,000. The increased budget is needed based on changes in the project elements as determined in the 2017 Facilities Master Plan. The projects construction cost is$32,650,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Date Budget Proj Dev 652,961 652,961 Prelim Design 979,425 979,425 Design 7,508,927 7,508,927 Construction 40,156,449 40,156,449 Commissioning 652,945 652,945 Close-out 652,957 652,957 Contingency 9,796,342 9,796,342 60,400,000 60,400,000 Reimbursable Costs: N/A Section 8-Page 35 2018-19 & 2019-20 Budget Project Name&Number I Gisler-Red Hill Interceptor Rehabilitation - 7-65 Project Category Collections Facilities Project Status: Future Description This project will rehabilitate the Gisler Redhill Interceptor from a diversion manhole near the Main Street Pump Station to the College Avenue Pump Station. The project is expected to line or repair 38 manholes and approximately 15,000 feel of VCP sewer in Costa Mesa. Collections Facilities Justification The condition of Gisler Redhill Interceptor upstream of College Avenue pump station is of concern. Condition assessments completed in 2007 and again in 2015 indicate that the condition of the piping is worsening. Camera video of the manholes indicate liner failures and corrosion from the cover to the base in the majority of the structures. The project budget has been decreased from$15,300,000 to$14,800,000. The reduced budget is a result of changes in the project elements identified from recent engineering efforts. The projects construction cost is$8,630,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Date Budget Proj Dev 144,337 28,177 172,514 Prelim Design 257,955 815 258,770 Design 124,041 1,077,199 351,372 1,552,612 Construc9un 7,164 2,986,065 7,012,491 10,005,720 Commissioning 17,706 154,814 172,520 Close-out 43,128 43,128 Contingency 66,874 155,988 297,696 419,348 1,13 8:30 2,594,736 211,211 566,161 1,382,874 3,774,491 8,865,2631 14,800,0 Reimbursable Costs: N/A Section 8-Page 36 CIP Project Detail Sheets Project Name&Number I Ocean Outfall System Rehabilitation - J-117 Project Category Ocean Oulfall Systems Project Status: Continuing Description This project will rehabilitate the Ocean Outfall Booster Station at Plant No.2, rehabilitate the 84- inch and 120-inch interplant effluent lines between Plant No. 1 and Plant No.2,and construct a new Low Flow Pump Station and a Plant Water Pump Station,and replace existing electrical switchgear at CenGen. The Low Flow Pump Station will consist of four 40-mgd pumps and deliver non-reclaimable dry weather flows to the effluent oudall. The Plant Water Pump Station will replace the existing plant water pump station. Oc ti;. )U t f a I I _�ms Justification The existing Ocean Outfall Booster Station facility is over 20 years old and requires extensive rehabilitation.The two interplant effluent lines have been found to need repairs and lining. Diversions of some Plant No.2 effluent to the Orange County Water District's Groundwater Replenishment System(GWRS)will result in ouHall flow rates dropping below the minimum flow rates of the existing Ocean Outfall Booster pumps. The Plant Water Pump Station must be relocated because the existing pump station in its current location would transfer non-reclaimable effluent to GWRS. Replacement of the CenGen switchgear will replace electrical equipment that is nearing obsolescence and does not provide sufficient redundancy. The project construction cost is$111,890,000 The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Date Budget Proj Dev 287,938 287,938 Prelim Design 5,353,613 5,353,613 Design 7,901,261 563,959 8,465,220 Constructor, 8,316,986 5,868,198 16,521,984 38,466,487 44,511,994 22,752,636 1,066,865 137,505,150 Commissioning 98,068 60,045 1,219,073 1,735,425 1,875,668 125,4T7 5,113,756 Close-out 387,013 30,757 14,969 345,965 601,500 1,380,198 Contingency 140,138 887,558 1,160,070 1,059,073 1,739,456 2,417,116 490,714 7,894,125 Total 21,999,936 7,417,783 18,129,112 40,775,384 48,001,844 27,391,385 2,284,556 166,000,000 Reimbursable Costs: N/A Section 8-Page 37 2018-19 & 2019-20 Budget Project Name&Number I Process Control Systems Upgrades - J-120 Project Category Information Management Systems Project Status: Future Description This project will upgrade the existing Supervisory Control and Data Acquisition(SCADA)Systems for the treatment plants and pump stations which includes Human Machine Interface(HMI) hardware and software, SCADA servers, historian,and a select number of Programmable Logic Controllers(PLCs).These improvements will replace the existing obsolete HMI systems,databases 0 and software programs,which includes trending,diagnostic data, monitoring,control,alarming and I I I I I I I I B reporting.PLCs not replaced under this project will be replaced as part of future projects.This project will develop SCADA programming standards,templates,programming methodologies,tools, and databases and will develop standards for SCADA networking and control panels. Project also includes the replacement of the existing fiber optic system at Plant 1 and modifications to the Information existing fiber optic system at Plant 2.The scope and technical details of this project will be defined by Process Control Systems Upgrades Study, Project No.SP-196,which may affect the scope of Management this project. Systems Justification The existing HMI system consisting of the CRISP software and associated SCADA subsystems are obsolete.The CRISP software has a limited customer installed base and technical expertise for support and source code modifications will become scarce in the future. The CRISP HMI software in conjunction with the SCADA subsystems provides important data communications for treatment process and plant monitoring,control,automation,visualization,alarm handling and notification. The existing Quantum PLCs that are currently being used throughout the treatment plants and pump stations are no longer being manufactured.The manufacturer has developed a family of replacement PLC processors and ancillary equipment with enhanced capabilities and security features.A replacement PLC processor system will be evaluated and selected to provide a long-term,20-year life. Reliability and maintainability of the SCADA systems is critical to maintaining regulatory compliance for both the collections system and the treatment plants.Many of the fiber optic cables at Plant 1 have reached the end of their useful life.Since the existing 62.5 micron fiber cables are no long manufactured,the entire fiber optic system needs to be replaced with 50 micron fibers to provide overall system compatibility. The project budget has been decreased from$102,399,000 to$46,000,000. The reduced budget is a result of changes in the project elements identified from recent engineering efforts. The project'a construction cost is$9,230,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 202243 Thereafter Total Project Date Budget Proj Dev 11,008 11,097 22,105 Prelim Design 550,236 929,360 1,479,596 Design 84,412 804,374 287,723 1,176,509 Construction 10,596,617 10,596,617 Commissioning 485,492 2,725,024 11,308,973 14,519,489 Close-out 119,375 119,375 Contingency 228,856 650,029 1,511,863 1,968,638 13,726,923 18,086,309 239,864 1,211,362 3,011,127 5,498,036 36,039,ill 46,000,0 Reimbursable Costs: N/A Section 8-Page 38 CIP Project Detail Sheets Project Name&Number I UPS System Upgrades - J-121 Project Category Utility Systems Project Status: Future Description This project will provide a regional uninterruptible power system(UPS)in the northern portion of Plant No.2 and provide UPS power distribution and power distribution units(PDUs)to feed UPS loads from the regional UPSs installed by this project and existing regional UPSs installed in the DAFT Thickener Building and in Effluent Pump Station Annex Standby Power Building. The regional UPSs will be industrial grade with lead acid batteries and will replace the smaller UPS - units.This approach of replacing small UPS units with a limited number of larger units was recommended in the Energy Master Plan, Project No.J-102. A v_ Utility Systems Justification The existing UPS system includes units of various sizes,configurations, and capabilities.This system does not provide an ideal level of reliability or cost effective operation. Issues with the existing UPS system include failures without warning, use of maintenance free battery that last less than 5 years compared to 20 years for lead acid batteries,locations that are difficult to maintain,increased maintenance due to UPS quantity,and lack of standby diesel generator back up power to maintain UPS operation during an extended power outage. The project budget has been decreased from$8,087,000 to$4,700,000. The reduced budget is a result of changes in the project elements identified from recent engineering efforts. The project's construction cost is$2,330,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Date Budget Proj Dev 57,553 57,553 Prelim Design 128,235 128,235 Design 599,688 599,688 Construc9on 3,107,363 3,107,363 Commissioning 87,834 87,834 Close-out 46,793 46,793 Contingency 672,534 672,534 4,700,000 4,700,0 Reimbursable Costs: N/A Section 8-Page 39 2018-19 & 2019-20 Budget Project Name&Number I Digester Gas Facilities Rehabilitation - J-124 Project Category Utility Systems Project Status: Continuing Description This project will rehabilitate the low and high pressure digester gas facilities at Plant Nos. 1 and 2 to meet current and future OCSD needs such as Air Quality Management District and National Fire Protection Association regulations,and future projected gas production. 4 ` Utility Systems Justification The major equipment associated with the digester gas systems are at the end of their useful lives and need to be replaced for reliability purposes. The projects construction cost is$53,360,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 384,708 384,708 Prelim Design 290,796 4,739,061 572,527 5,602,384 Design 433 2,734,824 5,043,515 913,754 8,692,526 Construc9on 2,332,928 12,657,763 54,896,828 69,887,519 Commissioning 3,798,588 3,798,588 Close-out 788,723 788,723 Contingency 19,838 157,056 319,805 482,829 486,746 576,415 5,302,863 7,345,552 695.775 4,896,117 3,627,156 5,526,344 3,733,428 13,234,178 64,787,002 96,500,0 Reimbursable Costs: N/A Section 8-Page 40 CIP Project Detail Sheets Project Name&Number I Safety Improvements Program - J-126 Project Category Process Related Special Projects Project Status: Continuing Description This project will address approximately 900 safety deficiencies throughout the Sanitation District's Facilities that could not be readily addressed with staff resources,or that require engineering efforts. This project will be completed using a number of construction contracts to allow the highest priority items to be constructed while the design of lower priority items is being completed. Process Related Special Projects Justification Correction of these safety deficiencies is needed to address potential safety risks to Sanitation District staff,consultants, contractors, and visitors,and to comply with code requirements. The project's construction cost is$10,060,000. This project will not have an impact on opera0onal budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 743,291 743,291 Prelim Design 476.773 193,090 31,143 701,006 Design 2,479,150 995,970 459,168 3,934,288 Consauc9on 1,360,808 7,384,787 2,783,014 11,528,609 Commissioning Close-out 170,555 170,555 Contingency 135,440 798,916 987,895 1,922,251 Total 5,195,462 9,372,763 4,431,775 Reimbursable Costs: N/A Section 8-Page 41 2018-19 & 2019-20 Budget Project Name&Number I Natural Gas Pipelines Replacement at Plant Nos. 1 and 2 - J-127 Project Category Utility Systems Project Status: Continuing Description This project will rehabilitate the natural gas pipelines at Plants No 1 and 2.This includes the replacement of aging metallic pipelines and risers and upgrades to the cathodic protection systems. 4 ` Utility Systems Justification Recent condition assessments of the natural gas piping have revealed that some of the metallic piping and risers have reached the end of their useful life and require replacement. The cathodic protection systems will also be upgraded to provide corrosion control of the buried metallic piping.This project will ensure safe, reliable operations of the natural gas systems. The projects construction cost is$430,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 32,233 32,233 Prelim Design Design 7,481 191,267 43,460 242,208 Construction 74,725 593,154 667,879 Commissioning Close-out 25,798 25,798 Contingency 10,075 57,697 93,951 126,729 53,430 341,882 423081 65,178 359,943 789,141 53,430 1,310,000 Reimbursable Costs: N/A Section 8-Page 42 CIP Project Detail Sheets Project Name&Number I Project Management Information System - J-128 Project Category Information Management Systems Project Status: Continuing Description This project will implement a new Project Management Information System to replace the obsolete software application currently in use and to serve additional business processes related to management of the capital improvement program. 0 Information Management Systems Justification The software application currently used to manage construction contracts is no longer supported by the vendor and cannot continue to meet requirements. In addition,a number of business processes involved in managing the capital improvement program could be more efficiently and effectively performed using a modern commercially available software system. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 319,465 319,465 Prelim Design Design 381,164 715,615 419,766 1,516,545 Consouc9on Commissioning Close-out 16,491 16,491 Contingency 176,077 953,032 1,018,390 2,147,499 8767061 1,668,647 1,454,647 4,000,000 Reimbursable Costs: N/A Section 8-Page 43 2018-19 & 2019-20 Budget Project Name&Number 118350 Mt. Langley St. Building Purchase and Improvement - J-131 Project Category Support Facilities Project Status: Revised Description This project provides capital funds for the purchase and purchase-related costs for the property at 18350 Mt. Langley in Fountain Valley,California,and to perform necessary life-safety system upgrades. Support Facilities Justification In September 2017,the Board of Directors approved the purchase of the property as part of a strategic effort to free space for treatment facilities at either plant by relocating non-treatment facilities off-site. This property has the advantages of proximity to Plant No. 1 and being adjacent to the proposed Headquarters Complex. The projects construction cost is$400,000. This project will increase operational budgets by$400,000 annually resulting from net rental income after expenses,assuming the building is fully leased to tenants. This income will be reduced to the extent the building is space is used for Sanitation District purposes. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020-21 2021-22 2022-23 Thereafter Total Project Data Budget Proj Dev Prelim Design Design 9,750,000 103,818 242,005 10,095,823 Consauc9on 144,954 483,405 628,359 Commissioning Close-out 14,985 538 "11,000,00 Contingency 2,410 23,113 48,827 117,089 67,349 1, Total 9,752,410 126,931 435,786 615,479 67,887 , Reimbursable Costs: N/A Section 8-Page 44 CIP Project Detail Sheets Project Name&Number I GWRS Final Expansion Coordination - J-36.2 Project Category Water Management Projects Project Status: Continuing Description This project will be used to track costs,forecast resources,and coordinate Sanitation District reviews related to the Orange County Water District's Groundwater Replenishment System Final Expansion project.This project will not address modification of Sanitation District Facilities,which are included in other projects such as the Headworks Modifications at Plant 2 for GWRS Final i Expansion, Project No. P2-122,and the Ocean Outfall Rehabilitation Project No.J-117. This project does not address modifications of any Sanitation District Facilities;any such changes are included in other projects such as the Headworks Modifications at Plant 2 for GWRS Final Expansion, Project No. P2-122,and the Ocean Outfall Rehabilitation Project No.J-117. -W. W�jtej VVf=lnag� a, ni Projects Justification The Orange County Water District's Groundwater Replenishment System Final Expansion will impact Sanitation District Facilities at both plants and along the interplant effluent pipelines. Per a cooperative agreement between the two agencies, Sanitation District costs for this coordination will not be charged to the Water District. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 49,036 49,036 Prelim Design 45,468 45,468 Design 12,913 50,440 25,624 88,977 Consauc9on 55,967 226,337 300,660 83,655 666,619 Commissioning Close-out Contingency 14,885 58,148 58,382 59,077 60,706 30,702 281,900 1223021 108,588 139,973 285,414 361,366 114,357 Reimbursable Costs: N/A Section 8-Page 45 2018-19 & 2019-20 Budget Project Name&Number I Electrical Power Distribution System Improvements - J-98 Project Category Utility Systems Project Status: Future Description This project provides various electrical distribution system improvements at Plant Nos. 1 and 2,as recommended by the J-25-4 project study,which are needed based on equipment condition and age,insufficient equipment ratings,grounding safety, non-compliance with the National Electrical Code(NEC)requirements, and electrical configuration reliability.This includes replacing elecu cal that is at the and of its useful life,modifying the electrical system configurations to improve - reliability and support maintenance, replacing electrical cables and equipment that are not propedy sized, and adding surge protection to protect equipment. Utility Systems JustiBcatlon These improvements are required to improve electrical safety, reliability and protective device coordination and for compliance with NEC requirements. As the electrical systems at Plant 1 and 2 has aged and reliability and safety philosophy has improved, the existing electrical systems,which are not scheduled for rehabilitation in the near future,require improvements and replacement to maintain electrical system reliability and improved safety. The projects construction cost is$20,040,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Data Budget Proj Dev 48,687 97,350 146,037 Prelim Design 57,241 968,433 1,440 1,027,114 Design 152,575 1,528,167 1,142,741 2,823,483 Construction 160,367 3,332,300 19,390,419 22,883,086 Commissioning 54,248 171,852 226,100 Close-out 59,302 59,302 Contingency 6,683 131,322 272,706 495,120 688,545 901,629 4,946,873 7,442,878 553701 285,913 1,393,714 2,024,727 1,991,653 4,288,1771 24,568,446 34,608,000 Reimbursable Costs: N/A Section 8-Page 46 CIP Project Detail Sheets Project Name&Number I Small Construction Projects Program - M-FE Project Category Support Facilities Project Status: Revised Description This budget provides funds for small construction projects. A construction project is defined as small when the professional engineering services for design and construction can be provided by a Task Order issued under a master professional design services agreement per Purchasing e Ordinance No 47,or by using Sanitation District staff. This budget request is intended to cover active small construction projects created under the previous Facilities Engineering Programs (Project No. F-FE-PLANT and Project No. M-FE-COLLECT),and those that will be identified and created through Fiscal Year 2022/2023.These small projects are individually managed within the Small Construction Projects Program budget. 0 Support Facilities Justification This fund allows Sanitation District staff to complete small construction projects more quickly and cost effectively than larger projects that require specific Board authorization. Of the requested budget,$28,400,000 is allocated for small construction projects active as of April 1,2018. The remainder is for not-yet-identified projects. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Data Budget Proj Dev 382,920 7,204 390,124 Prelim Design 14,666 14,666 Design 3,444,988 453,118 78,180 3,976,286 Consauc9on 7,905,307 6,488,954 3,296,204 476,605 18,167,070 Commissioning 45,849 45,849 Close-out 12,701 66,123 83,828 65,136 27,935 255,723 Contingency 573,412 2,645,405 4,441,345 2,269,448 2,197,115 2,515,980 17,507,577 32,150,282 Total 12,333.994 9,660,804 7,945,406 2,811,189 2,225,050 2,515,980 17,507,577 55,000,0 Reimbursable Costs: N/A Section 8-Page 47 2018-19 & 2019-20 Budget Project Name&Number I Information Technology Capital Program - M-MC-IT Project Category Information Management Systems Project Status: Continuing Description This project will provide for the replacement, rehabilitation and/or upgrade of various Information technology assets that meet the criteria and justification for capital expenditure. 0 Information Management Systems Justification These funds are needed in order to replace/rehabilitate/upgrade Information technology assets that are not included or identified in a capital improvement project. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 274,170 274,170 Prelim Design Design 27,414 155,572 213,575 273,465 337,514 394,974 1,402,514 Consaoc9on 747.615 54,751 3,222,184 935,062 4,959,612 Commissioning 105,428 105,428 Close-out Contingency 76,039 360,020 494,258 632,851 781,068 914,039 3,258,275 Total 1,230,667 515,592 707,833 961,067 4,340,766 2,244,075 10,000,0 Reimbursable Costs: N/A Section 8-Page 48 CIP Project Detail Sheets Project Name&Number I Research Program - M-RESEARCH Project Category Research Project Status: Revised Description 10 This budget provides funds for research projects. Specific projects will be identified and developed projects je funded from this budget. This budget request is intended to cover No.M-currently-active research projects already created under the previous Research Program(Project No.M-RESEARCH),and those that will be identified and created through Fiscal Year 2022/2023.These research projects are individually managed within the Research Program budget. Research & Development Justification Research projects are used demonstrate technologies,equipment,configurations,and control strategies to improve operational efficiency,reduce costs,improve safety,or fill important information gaps.The results will support operations and maintenance and provide information needed for future planning and design work. Of the requested budget, $1,300,000 is allocated for Research Projects active as of April 1,2018. The remainder is for not-yet-identified projects. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202031 202182 20=3 Thereafter Total Project Data Budget Proj Dev 585,962 700,760 1,286,722 Prelim Design Design Constructor, 29,750 22,000 51,750 Commissioning Close-out 1,439 1,066 2,505 Contingency 335,339 1,442,530 1,315,161 1,330,878 1,36],55] 1,36],558 7,159,023 952.490 2,166,356 1,315,161 1,330,878 1,367,557 1,367,558 8,500,000 Reimbursable Costs: N/A Section 8-Page 49 2018-19 & 2019-20 Budget Project Name&Number I Operations&Maintenance Capital Program - M-SM-CAP Project Category Support Facilities Project Status: Continuing Description This project will provide for the replacement and rehabilitation of various plant processes and collection facilities as well as the replacement and or rehabilitation of facilities that meet the criteria for capital replacement. Support Facilities Justification These funds are needed in order to replace/rehabilitate equipment that is beyond economical repair or is at the end of its useful life or repair of facilities that are not included in a capital improvement project. It is also used to replace equipment when parts or services are no longer economically feasible. The projects construction cost is$1,040,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 221,628 221,628 Prelim Design Design 4,973 171,131 287,455 393,560 513,084 634,786 2,004,989 Construction 352.684 185,272 263,109 203,117 273,873 355,266 1,633,321 Commissioning Close-out Contingency 573,722 1,482,794 2,305,587 3,221,293 4,178,666 11,]62,062 5792851 930,125 2,033,358 2,902,264 4,008,250 5,168,718 Reimbursable Costs: N/A Section 8-Page 50 CIP Project Detail Sheets Project Name&Number I Planning Studies Program - M-STUDIES Project Category Strategic&Master Planning Project Status: Continuing Description - This budget provides funds for planning studies.This budget request is intended to cover currently- - active planning studies already created under the previous Planning Studies Program(Project No M-STUDIES),and those that will be identified and created through Fiscal Year 2022/2023.These planning studies are individually managed within the Planning Studies Program budget. nrW a V% s trty Master Planning Justification Planning studies provide comprehensive capital program planning for the District to meet anticipated capacity needs, manage risks associated with asset or system failure,take advantage of technology advancements,comply with regulatory changes,and meet strategic goals.Of the requested budget,$20,700,000 is allocated for planning studies active as of April 1,2018. The remainder is for not-yet-identfied projects. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 2019420 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 12,800,328 4,242,852 978,006 18,021,186 Prelim Design 348.157 65,079 413,236 Design 31,219 7,789 39,008 Conssuc9on 7,793 7,793 Commissioning Close-out 2,7701 3,4641 1 1 16,234 Contingency 609,600 2,728,535 1,375,661 1,067,455 1,096,874 1,096,874 2,189,543 10,164,542 Total 13,799.868 7,047,719 2,353,667 1,067,455 1,096,874 1,096,874 2,189,543 28,652,000 Reimbursable Costs: N/A Section 8-Page 51 2018-19 & 2019-20 Budget Project Name&Number I Digester Rehabilitation at Plant 1 - PI.100 Project Category Solids Handling&Digestion Project Status: Revised Description The project rehabilitates Digesters No. 5 through No. 16 at Plant No. 1 to replace aging equipment and improve solids handling capacity. The equipment rehabilitation includes sludge pumping, heating,structural systems,mechanical systems,electrical and control systems,and digester roofing replacement. ti Solids Hsi & Dig , Justification This project is being built in conjunction with Project Pi-101 to treat increased solids due to secondary expansion at Plant No. 1, efficiently use existing digesters'capacity,increase reliability,and improve quality of sludge production. Scope of work includes removal of sludge accumulated in digesters, replacing aging mechanical/electrical equipment,and structural rehabilitation of digesters 5-16 that were built during the years of 1959-1993. The project budget has been decreased from$67,150,000 to$66,000,000. The reduced budget is a result of an updated estimate to complete the work based on project closeout and release of contingency. The project's construction cost is$43,760,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Pmj Dev 217,569 217,569 Prelim Design 3,094,006 3,094,006 Design 3,603,301 3,603,301 Consauc9on 55,991,113 55,991,113 Commissioning 2,699,102 2,699,102 Close-out 141.785 11,500 153,285 Contingency 116,270 125,355 241,625 Total 65,863.145 136,855 Reimbursable Costs: N/A Section 8-Page 52 CIP Project Detail Sheets Project Name&Number I Sludge Dewalering and Odor Control at Plant l - Pi-101 Project Category Solids Handling&Digestion Project Status: Revised Description IF This project constructs primary sludge thickening facilities to improve solids handling capacity, replace sludge dewatering facilities with aging equipment and reduce biosolids handling and disposal, rehabilitate solids handling odor control equipment for aging equipment,and temporarily expand sludge dewatering facilities to accommodate temporary construction needs. ti Sol ids H 4VV!M! & Dig � o"% Justification This project is necessary to support the need for more capacity to thicken and dewater sludge due to conversion of Plant No. 1 to full secondary treatment and increased flows to support expansion of the GWR System.The existing sludge dewatering facilities that were built in the late 1970's have reached the end of useful life and are in need of replacement.This project will increase cake dryness which will reduce biosolids management costs;improve sludge thickening to optimize use of existing digesters while eliminating construction of new digesters and improve site constraints at Plant No. 1 by building compact solids treatment facilities and facilitate future expansion. The project budget has been increased from$188,328,000 to$199,500,000. The increased budget is needed based on an updated estimate to complete the work due to an extended construction duration. The project's construction cost is$138,220,000. This project will decrease operational budgets by$3,600,000 annually. Sludge hauling and disposal costs will drop because there will be less moisture in the sludge. This operational savings factors in the additional energy and chemical costs associated with operating centrifuges. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 330,031 330,031 Prelim Design 6,904,058 6,904,058 Design 11,395,368 11,395,368 Construction 155,391.316 9,099,339 511,496 165,002,151 Commissioning 1,646,825 1,630,477 84,392 3,361,694 Close-out 251.550 278,283 10,099 4,385 544,317 Contingency 1,4]0,89] 5,673,695 3,989,967 827,822 11,962,381 Total 177,390.045 16,681,794 4,595,954 832,207 Reimbursable Costs: N/A Section 8-Page 53 2018-19 & 2019-20 Budget Project Name&Number I Headworks Rehabilitation and Expansion at Plant 1 - P1-105 Project Category Headworks Project Status: Revised Description This project will rehabilitate and upgrade facilities at the Plant 1 Headworks. Facilities to be rehabilitated include 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. The / project will also include demolition of the original Headworks No. 1 facilities and the unused ((\) Chlorine Building pumps. Headworks Justification The purpose of the work is to rehabilitate the Plant 1 headworks area in order to increase the life of critical assets,improve services of other areas in the plant,and meet level of service goals. The project budget has been decreased from$436,000,000 to$370,000,000. The reduced budget is a result of changes in the Project elements and a reduced construction duration. The project's construction cost is$254,150,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202041 202182 20=3 Thereafter Total Project Data Budget Proj Dev 152,473 152,473 Prelim Design 7,470,867 740,578 8,211,445 Design 2,750,303 9,804,665 3,412,275 15,967,243 Construc8on 75,661 1,760,037 27,289,915 74,648,909 79,760,878 101,949,402 285,484,802 Commissioning 719,412 1,322,302 1,327,139 4,127,704 7,496,557 Close-out 36 1,157,948 1,157,994 Contingency 431,324 1,852,467 2,332,762 3,111,83-1 4,958,742 6,570,918 32,271,450 51,529,496 Total 10,880.664 12,397,710 7,505,074 31,121,160 80,929,953 87,658,935 139,506,504 370,000,0 Reimbursable Costs: N/A Section 8-Page 54 CIP Project Detail Sheets Project Name&Number I Title 24 Access Compliance and Building Rehabilitation Project - P1-115 Project Category Support Facilities Project Status: Revised Description The project evaluated Title 24(Americans with Disabilities Act)upgrades and retrofits,code compliance and asset condition at the existing office facilities and grounds at Plant No. 1.The buildings studied in the Preliminary Design Report include:Administration, Human Resources, e Laboratory, Maintenance Facilities, Fleet Services, Purchasing,Warehouses, Purchasing Conference Room and office trailers and Demolition of Building H.The grounds modifications include changes to the parking areas,asphalt repair,drainage improvements, and accessibility improvements. The project costs developed for the Preliminary Design Report for the Laboratory,Administration Building, Purchasing,Human Resources Building, Fleet Services and supporting trailers were used for comparison to other options for housing the staff and laboratory including the construction of Support Facilities new facilities and/or repurposing the Laboratory. The options were considered in the Administrative Facilities Master Plan under this project budget. This project scope is revised to only include the rehabilitation of the Warehouse and Maintenance Facilities,demolition of Building H and area improvements adjacent to these buildings under P1- 115A and rehabilitation of the Fleet Services compound under P1-115B. Justification State and federal law requires that OCSD ensure that these facilities can be accessible to individuals with disabilities. Roofing, lighting,some ventilation equipment,and other building features am at the end of their useful life and require replacement. Building H does not meet current building codes and needs to be demolished. An implementation plan for the construction of new facilities for the Administration Building,Laboratory, Fleet Services, Purchasing, Human Resources and office trailers was conducted under Project No. SP-194. The projects construction cost is$9,890,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 696,253 696,253 Prelim Design 1,600,880 1,600,880 Design 2,559,710 2,559,710 Construction 10,476,307 2,063,009 12,539,316 Commissioning Close-out 134.091 39,062 173,153 Contingency 189,831 452,288 188,569 830,688 Total 15,657,072 2,554,359 188,569 Reimbursable Costs: N/A Section 8-Page 55 2018-19 & 2019-20 Budget Project Name&Number I Trunk Line Odor Control Improvements - PI.123 Project Category Headworks Project Status: Continuing Description Scrubbers 9 and 10,which are part of Plant No. 1 Headwords odor control system,will be replaced with new biological scrubbers. The new scrubbers will treat air from Steve Anderson Lift Station (SALS),Waste Hauler Station,Sunflower Pump Station and M&D Structure. The treated air will then continue to existing Chemical Scrubbers 1 through 4 for further treatment. The second part ofim the scope of work is to eliminate odors upstream of the three siphons along the Baker-Gisler Interceptor and Santa Ana Trunk sewers by implementing airjumper improvements. Headworks Justification The concept evaluation study for Project J-71-8 indicated an imbalance of airflow between existing Scrubbers 9 and 10 causing poor performance of the scrubbers. The carbon units of the SALS odor control system and the packaged biofilter at the Waste Hauler Station have both been operating inefficiently. Replacing the existing Scrubbers9 and 10 will improve the overall efficiency of the Headworks facilities'odor control system. The projects construction cost is$5,580,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev Prelim Design 568.156 568,156 Design 935,736 935,736 Consauc9on 7,491,201 7,491,201 Commissioning 165,415 23,241 188,656 Close-out 65,547 1,195 66,742 Contingency 24,445 24,063 48,509 Total 9,250,501 48,499 9 Reimbursable Costs: N/A Section 8-Page 56 CIP Project Detail Sheets Project Name&Number I Primary Clarifiers Replacements and Improvements at Plant No.1 - Pl-126 Project Category Primary Treatment Project Status: Revised Description O O This project will rehabilitate or replace the Plant No. 1 Primary Clarifiers 3,4,&5 System which O O 0000 includes all primary influent and effluent lines,distribution boxes,junction boxes,the Primary 000 0000 O Effluent Pump Station,structural,mechanical,and electrical systems affiliated with Primary 000000000 Clarifiers 3,4,&5.This project will demolish Primary Clarifiers 1U. 000000000 00000000 00000 O 0 Primary Treatment Justification The project is needed due to the age and condition of the Primary Clarifiers(PCs)3,4,&5 System. PCs 3&4 were constructed in 1956 and are the oldest primary clarifiers at Plant No. 1.They share a common sludge and scum pumping facility located between them. PC 5 was constructed in 1963. Many of the PC 3-5 System components are showing significant deterioration.To continue to operate the PC 35 system for the next 50 years will require the entire system be rehabilitated or replaced. PCs 1-2 were constructed in 1986 to replace the two original clarifiers.These primary clarifiers are currently used only during extreme flow events.They share a common sludge and scum pumping facility at the southwest end of PCs 1-2 that also serves PC 5. PCs 1-2 shall be demolished to make space for other future processes. The project budget has been decreased from$112,267,000 to$106,000,000. The reduced budget is a result of an updated estimate to complete the work as determined in the 2017 Facilities Master Plan. The projecCa construction cost is$67,410,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Data Budget Pmj Dev 520,268 31,823 68,347 620,438 Prelim Design 497 14,769 155,334 17,902 188,502 Design 5,811,610 5,811,610 Constructor, 77,954,242 77,954,242 Commissioning 501,300 501,300 Close-out 535,417 535,417 Contingency 368,401 1,198,859 1,453,256 17,367,975 20.388,491 Total 520.765 400,224 1,281,975 1,608,590 102,188,146 106,000,0 Reimbursable Costs: N/A Section 8-Page 57 2018-19 & 2019-20 Budget Project Name&Number I Central Generation Rehabilitation at Plant No. 1 - P7-127 Project Category Utility Systems Project Status: Continuing Description This project will rehabilitate the Can Gen facility equipment including the lube oil system,the engine jacket water loop,steam loop,hot water loop,waste/supplement heat system, chilled water loop, cooling water loop, HVAC system,starting air and instrumentation air systems,exhaust gas monitoring system,miscellaneous building improvements,and allowance for electrical and 18C improvements. - A v_ Utility Systems Justification Can Gen equipment had been rebuilt through regular maintenance program,or by CIP projects working in the area.There has not been a project just focusing on the condition assessment and rehabilitation of overall Can Gen facility equipment, particularly the equipment that are too large to be rebuilt through regular maintenance. The projects construction cost is$52,160,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Date Budget Proj Dev 101,827 101,827 Prelim Design 158,666 158,666 Design 5,420,048 5,420,048 Construction 58,443,809 58,443,809 Commissioning 3,038,287 3,038,287 Close-out 549,932 549,932 Contingency 19,287,431 19,287,431 87,000,000 87,000,0 Reimbursable Costs: N/A Section 8-Page 58 CIP Project Detail Sheets Project Name 8.Number I Pl-128 Headquarters Complex and Site Security at Plant No. 1 - Pi-128 Project Category Support Facilities Project Status: Continuing Description This project will construct of a new Headquarters Complex on the north side of Ellis Avenue to house administrative,engineering and laboratory staff. In addition to the main building for administrative,engineering and laboratory staff,the Headquarters Complex will include parking and a pedestrian/utility bridge over Ellis Avenue to Plant No.1. This project will also include security and storm water upgrades along the south border of Plant No. 1 and along the west perimeter between Gameld Avenue and the Orange County Water District property. That work will include new 8-foot tall split-face concrete masonry walls and two motorized vehicle gates on Garfield.Grading and storm drainage work will include the installation of catch 4 basins,underground retention basins and storm drain lines within the plant. Support Facilities Justification The administrative,engineering and laboratory functions are located primarily at Reclamation Plant No. 1 in Fountain Valley.The Administration, Laboratory,Human Resources,and Purchasing buildings are aging,were not pennifted when constructed and are in need of replacement.Also,approximately 130 staff are located in aging office trailers throughout Plant No. 1.OCSD has decided that the most cost effective solution is replacement of the aging buildings and trailers with new buildings that serve administrative,engineering,and laboratory functions. The projects construction cost is$115,380,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 531,890 531,890 Prelim Design 1,295,488 6,208,076 16,560 7,520,124 Design 154,522 2,030,353 5,871,499 559,501 8,615,875 Construction 730,408 17,337,239 56,774,379 51,254,656 4,813,105 130,909,787 Commissioning 3,951 183,134 354,404 137,288 671l Close-out 29,642 36,706 3,097,0159 3,163,407 Contingency 479,049 2,298,057 3,035,041 3,800,830 5,150,661 6,412,718 6,470,784 2],647,140 2,460,949 10,536,486 9,653,508 21,731,163 62,144,880 58,021,778 14,518,236 179,067,000 Reimbursable Costs: N/A Section 8-Page 59 2018-19 & 2019-20 Budget Project Name&Number I Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1 - P1-129 Project Category Secondary Treatment Project Status: Revised Description The work consists of the removal and replacement of an existing deteriorated 30-inch steel 000 COO 000 discharge header piping,valves,flexible couplings,and pipe hangers in the Return Activated Sludge(RAS)Pump Room at Plant No. 1 and approximately 220 linear feet of buried discharge piping. 000 000 000 000 000 000 Secondary Treatment Justification The RAS facility was constructed under Project No.P1-16 in 1974.Over the past few years,the header piping failed in numerous locations due to internal corrosion warranting replacement of leaking piping. The project budget has been increased from$3,979,000 to$7,900,000. The increased budget is needed based on changes in the project elements identified from recent engineering efforts. The project's construction cost is$4,700,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Data Budget Proj Dev 237,097 237,097 Prelim Design 248.940 248,940 Design 75,998 266,786 342,784 Consauc9on 276,625 5,362,235 204,499 5,843,359 Commissioning 115,793 115,793 Close-out 19,736 38,653 58,389 Contingency 26,638 154,535 472,253 374,192 26,020 1,053,638 Total 588.673 697,946 5,970,017 617,344 26,020 Reimbursable Costs: N/A Section 8-Page 60 CIP Project Detail Sheets Project Name&Number I Uninterruptable Power Supply Improvements at Plant 1 - P1-132 Project Category Utility Systems Project Status: Continuing Description This project will add a regional Uninterruptable Power Supply(UPS)in the northwest portion of plant 1.The UPS will supply power to power distribution buildings 4,7 and 8, maintenance buildings,primary clarifiers,any other users requiring UPS in the area.Also,included in the project is the installation of power distribution units for facilities to be fed from the Sludge Dewatering and Odor Control UPS.The project will also determine if the UPS will supply power to the laboratory - building. ;. ^' Utility Systems Justification The control center requires a reliable property sized Uninterruptable Power Supply(UPS). If power is lost to the control center the ability to control the plant could be lost.This project will supply a regional UPS that will also supply power for Power Buildings and Primary Clarifiers.in the area based on the UPS study conducted in March 2013. The projects construction cost is$2,370,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 26,243 11,727 37,970 Prelim Design Design 114,426 333,630 174,216 622,272 Construction 541,575 2,556,148 17,210 3,114,933 Commissioning 18,768 275,116 293,884 Close-out 59,354 17,134 76488 Contingency 3,920 28,395 41,904 93,839 363,410 122,985 854,453 301631 154,548 375,534 828,398 3,254,028 157,329 Reimbursable Costs: N/A Section 8-Page 61 2018-19 & 2019-20 Budget Project Name&Number I Primary Clarifiers 6-31 Reliability Improvements at Plant No. 1 - Pi-133 Project Category Primary Treatment Project Status: New Description a Increase the operating reliability of the rectangular primary clarifiers at Plant No.1 by modifying the000000 Primary Influent Splitter Box(PISB)to increase hydraulic capacity upstream of the facilities. 0000000 OImprovements will also be made to the Microfltration Backwash Waste piping that currently O O Odischarges to PISB,allowing it to be discharged to the effluent side of the primary clarifiers. O O OAdditional primary sludge pumps will be added to allow sludge removal from all of the prmaryclarifiers in lieu of using basins for sludge thickening. 0 0 0Leaky pipe joints in the 90&108 inch primary effluent pipes will also be repaired. O Primary Treatment Justification District has been discharging high quality backwash water to Primary Clarifiers 6-14,thus increasing the hydraulic load to the clarifiers.This backwash water can be discharged to the effluent structure,thus reducing hydraulic load on the primary clarifiers and increasing reliability. The failing primary influent pipe joints are discussed in the Districf s Corrosion Assessment Report dated 2-5-15. The projects construction cost is$12,280,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020-21 2021-22 2022-23 Thereafter Total Project Date Budget Proj Dev 325,546 35,159 360,705 Prelim Design 364,685 364,685 Design 310,889 1,164,991 275,508 1,751,388 Consauc0on 55,061 4,077,731 10,528,030 281,886 14,942,708 Commissioning 73,344 197,260 13,052 283,656 Close-out 34,3671 93,096 127,463 Contingency 53,785 192,082 387,175 686,376 1,316,218 1,033,761 3,669,395 379,337 902,815 1,607,227 5,112,959 12,075,873 1,421,795 21,500,0 Reimbursable Costs: N/A Section 8-Page 62 CIP Project Detail Sheets Project Name&Number I SCADA System and Network Upgrades - P2-107 Project Category Information Management Systems Project Status: Continuing Description This project will provide a Process Data Network at Plant No.2 which is independent and isolated from the Office Data and Security systems.These improvements will provide greater security, increase SCADA system capacity,and provide the network needed for the Load Management and Load Shedding System.Load Management and Load Shedding items will be provided under this 0 project. IIIIIIII e Information Management Systems Justification With the improvements made under this project,staff will be able to respond quickly via remote control panels to perform normal power switching or switching as a result of a fault condition,allowing operators to maintain a safe operating distance from live electrical panels to avoid arc Flash risks. Improvements to the industrial control system will improve reliability by eliminating a potential single point of failure with the fiber optic network This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 100,243 100,243 Prelim Design 1,174,912 1,174,912 Design 2,205,336 913,642 3,118,978 Construc8on 8,195 8,195 Commissioning 88,880 88,880 Close-out Contingency 90,614 385,681 32,497 508,792 3.668,1801 1,299,323 32,497 1 1 5 Reimbursable Costs: N/A Section 8-Page 63 2018-19 & 2019-20 Budget Project Name&Number I Consolidated Demolition and Utility Improvements at Plant - P2-110 Project Category Utility Systems Project Status: Revised Description IF This project will demolish Digesters A and B; Primary Clarifiers A, B and C;the Air Compressor Building; the Emergency Power Building,and several other facilities at the end of useful life. Several existing tunnels will be demolished and/or rehabilitated including new pipe supports, drainage improvements,structural repair, lighting improvements etc.The demolition site will receive extensive grading,drainage and paving improvements. - Utility Systems Justification The demolished facilities are at the end of useful life or are no longer in use. The project budget has been increased from$30,300,000 to$31,000,000. The increased budget is needed based on an updated estimate to complete the work. The project's construction cost is$17,320,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Data Budget Proj Dev 221,226 221,226 Prelim Design 4,384,291 4,384,291 Design 2,013,629 2,013,629 Construction 9,757,626 9,879,691 1,123,236 20,760,553 Commissioning 28,623 500,999 267,960 797,582 Close-out 27.389 181,453 1,052,174 1,261,016 Contingency 131,612 741,009 617,372 71,710 1,561,703 Total 16,564,396 11,303,152 3,060,742 71,710 Reimbursable Costs: N/A Section 8-Page 64 CIP Project Detail Sheets Project Name&Number I Activated Sludge Aeration Basin Deck Repair at Plant No.2 - P2.118 Project Category Secondary Treatment Project Status: Continuing Description This project will rehabilitate the concrete deck at the oxygen activated sludge basins at Plant No.2 000 000 000 in order to increase the life of its critical assets and to address safety issues associated with oxygen seepage from cracks in the deck. This project will focus on repair of full penetration cracks and surface spalling on the top deck of the basins. 000 000 000 000 000 000 Secondary Treatment Justification The deck of the aeration basins has incurred cracking over time,many of which go through the entire slab potentially exposing the rebar to corrosion and causing leakage of oxygen. The leaking oxygen imposes a safety concern because of the potential for it to accumulate in confined areas potentially creating an oxygen-enriched environment.Additionally,there are large areas of surface spalling where the top layer of reinforcement is exposed,causing corrosion of the metal. This project will rehabilitate or restore the reinforcement as needed and replace the spelled concrete with an epoxy-based mortar to cover and protect the reinforcement from being compromised further and to maintain the structural integrity of the deck. The projects construction cost is$940,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 44,873 44,873 Prelim Design 55,191 55,191 Design 393,097 393,097 Consbuc9on 593.240 423,751 1,016,991 Commissioning Close-out 22,705 24,804 47,509 Contingency 208,429 927,985 105,925 1,242,339 1,317,535 1,376,540 105,925 Reimbursable Costs: N/A Section 8-Page 65 2018-19 & 2019-20 Budget Project Name&Number I Central Generation Rehabilitation at Plant No.2 - P2-119 Project Category Utility Systems Project Status: Continuing Description This project will rehabilitate the Plant 2 Can Gen facility equipment including the tube oil system, the engine jacket water loop,steam loop, hot water loop, cooling water loop, HVAC system,starting air and instrumentation air systems,exhaust gas monitoring system, miscellaneous building improvements,and allowance for electrical and I&C improvements. Utility Systems Justification Can Gen equipment had been rebuilt through regular maintenance program,or by CIP projects working in the area.There has not been a project just focusing on the condition assessment and rehabilitation of overall Can Gen facility equipment, particularly the equipment that are too large to be rebuilt through regular maintenance. The projects construction cost is$64,850,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Date Budget Proj Dev 1,602,674 1,602,674 Prelim Design 3,570,566 3,570,566 Design 16,697,868 16,697,868 Construction 86,521,873 86,521,873 Commissioning 2,445,716 2,445,716 Close-out 1,302,953 1,302,953 Contingency 1,858,350 1,858,350 114,000,)00 114,000,00 Reimbursable Costs: N/A Section 8-Page 66 CIP Project Detail Sheets Project Name&Number I Banning Gate Relocation and Grading at Plant 2 - P2-120 Project Category Others Project Status: Continuing Description This project relocates the Plant No.2 vehicular gate near Banning Avenue to align with Banning Avenue.This includes moving the gate and supporting infrastructure such as the wall,curb,gutter, to and sidewalk. It will also re-grade the pavement in Plant No.2 in this area to improve drainage and storm water flow. 6(+Awl , Others Justification This project is needed to improve traffic flow so that vehicles,in particular trucks, may exit left from the Banning Avenue gate. Currently,if vehicles need to drive to the south,they must exit to the north and perform a u-tum.Aligning the gate with the intersection should reduce unnecessary travel.The grading will reduce ponding that occurs during storm events. The projects construction cost is$1,430,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Date Budget Proj Dev 2,418 655 3,073 Prelim Design 44,629 17,388 62,017 Design 154,751 310,253 37,320 502,324 Construc9on 1,843,294 1,843,294 Commissioning 38,375 38,375 Close-out 51,893 51,893 Contingency 4,823 13,833 30,217 43,761 337,390 430,024 7,241 59,117 202,356 354,0141 2,308,272 2,931,0 Reimbursable Costs: N/A Section 8-Page 67 2018-19 & 2019-20 Budget Project Name 8.Number I Headworks Modifications at Plant 2 for GWRS Final Expansion - P2.122 Project Category Headworks Project Status: Continuing Description This project will modify the Headworks,related piping, and sidestream flow routing to separate reclaimable and non-reclaimable flows to accommodate the Orange County Water DislricCs Groundwater Replenishment System Final Expansion.Work elements include installing a new 66- inch diameter flow diversion, installing or upgrading existing gates,and modification of waste / sidestream pump station discharge piping to the non-reclaimable portion of the plant.The work ((\) includes replacing three existing main sewage pumps with new,smaller pumps. Headworks Justification This project is necessary to separate reclaimable and non-reclaimable flows to accommodate the Orange County Water District's Groundwater Replenishment System Final Expansion project.The planning project SP-173 was completed in October 2016 that recommended the modifcation option. The projects construction cost is$33,680,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020-21 2021-22 2022-23 Thereafter Total Project Data Budget Proj Dev 623,315 623,315 Prelim Design 1,953,767 608,528 2,562,295 Design 40 1,568,666 1,843,479 173,304 3,585,489 Construction 28,817 3,809,209 15,344,309 16,102,803 4,193,871 39,479,009 Commissioning 139,981 493,716 557,234 226,717 1,417,648 Close-out 322,477 322,471 Contingency 37,743 274,570 428,407 519,649 1,067,122 1,681,415 2,000,867 6,009,773 2,614,865 2,451,764 2,300,703 4,642,143 16,905,147 18,341,452 6,743,926 54,000,000 Reimbursable Costs: N/A Section 8-Page 68 CIP Project Detail Sheets Project Name&Number I Return Activated Sludge Piping Replacement at Plant No 2 - P2-123 Project Category Secondary Treatment Project Status: Revised Description The Activated Sludge(AS)facility was built in 1979 as part of multi-facility treatment improvement. 000 000 000 The work consists of the removal and replacement of the existing deteriorated AS piping,valves, valve actuators,flexible couplings,and pipe supports located in the AS pump stations east and west, Kinnison tunnel,and Scott tunnel at Plant No.2.All piping and associated appurtenances will 000 000 000 be replaced in kind,with the exception of the butterfly valves,which will be replaced with plug valves. 000 000 000 Secondary Treatment Justification The AS facility has experienced major leaks in various locations within its piping system. Multiple repair methods have been used with varying success.Based on the results of a recent assessment and O&M concerns,a recommendation was made to rehabilitate the piping immediately. Due to the level of corrosion of the pipes, replacement is the only feasible option. The project budget has been decreased from$15,000,000 to$12,750,000. The reduced budget is a result of changes in the project elements identified from recent engineering efforts. The projects construction cost is$7,000,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Data Budget Proj Dev 83,618 83,618 Prelim Design 1,326 1,326 Design 276,983 1,216,607 150,013 1,643,603 Consauc9on 72,004 3,803,341 4,431,693 572,039 8,879,077 Commissioning 31,479 116,561 148,040 CIOse-out 27,2611 69,019 96,280 Contingency 32,308 159,294 388,406 819,488 498,560 1,898,056 3M 2351 1,447,905 4,373,239 5,395,003 1,139,618 Reimbursable Costs: N/A Section 8-Page 69 2018-19 & 2019-20 Budget Project Name&Number I Interim Food Waste Receiving Facility - P2-124 Project Category Solids Handling&Digestion Project Status: Revised Description This project will construct a station to receive,store,and feed pre-processed food waste slurry to the digester complex at Plant 2 to generate additional digester gas. The cost of the project will be offset by revenues from tipping fees charged to food waste haulers. This facility will be replaced with a permanent receiving station following completion of a proposed program to replace existing digesters at Plant 2. ti Solids H , & Dig a�"' 6,`A'V Justification This project was identified in the Biosolids Master Plan, Project No. PS15-01,to address the need for solid waste generators and haulers to dived organic waste from landfills. Waste haulers will separate organics at the source,screen,and process the high strength organic waste into a liquid slurry. The Sanitation District's costs to construct,operate the facilities,and handle the additional biosolids production will be offset by tipping fees charged to haulers and additional power associated with increased digester gas production. The project budget has been increased from$5,400,000 to$6,300,000. The increased budget is needed based on changes in the project elements identified from recent engineering efforts. The projecl's construction cost is$3,380,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Date Budget Proj Dev 53,274 29,573 82,847 Prelim Design 230,064 45,370 275,434 Design 281,523 248,938 530,461 Construction 135,299 3,796,260 302,656 4,234,215 Commissioning 2,601 73,377 75,978 Close-out 12,752 86,532 99,284 Contingency 6,148 44,449 85,477 133,172 292,596 373,484 66,455 1,001,781 Total 59.422 304,086 412,370 517,409 4,104,209 836,049 66,455 6,300,0 Reimbursable Costs: N/A Section 8-Page 70 CIP Project Detail Sheets Project Name&Number I Perimeter Screening at Plant No.2 - P2-125 Project Category Others Project Status: Continuing Description OF This project will install landscaping or other appropriate line-of-sight barriers to minimize the visual impact neighbors and traffic on Pacific Coast Highway and B street. The work is expectedd to include construction of a berm along the south perimetermeter and additional landscaping on the berm and along the Brookhurst perimeter. Others Justification This project is necessary to minimize the visual impact on neighbors and traffic on Pacific Coast Highway and Brookhurst Street from proposed digesters to be built on the Southwest corner of plant. The project's construction cost is$1,310,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 36,338 46,872 83,210 Prelim Design 37,846 84,875 122,721 Design 83,829 218,551 36,299 338,679 Consauc9on 675,166 977,789 1,652,955 Commissioning 369 1,054 1,423 Close-out 23,232 1,618 24,850 Contingency 3,215 20,993 50,794 79,803 134,131 235,143 52,083 576,162 39.553 105,711 219,498 298,354 845,965 1,237,218 53,7 2,800,0 Reimbursable Costs: N/A Section 8-Page 71 2018-19 & 2019-20 Budget Project Name&Number I Plant 2 Warehouse Relocation - P2-126 Project Category Support Facilities Project Status: Continuing Description The project will construct a replacement for the existing warehouse located in the southwest corner of Plant 2,which must be demolished to accommodate the proposed Temperature Phased Anaerobic Digestion facilities. Support Facilities Justification The area where the Plant 2 Warehouse is currently located is needed to accommodate facilities associated with the new digester project. These new facilities must be near the new digesters. The projects construction cost is$5,320,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 2019420 2020421 2021422 2022423 Thereafter Total Project Date Budget Proj Dev 61,642 94,682 156,324 Prelim Design 53,323 51,514 104,837 Design 431,002 532,209 263,775 1,226,986 Construction 586,470 5,184,128 705,454 6,476,052 Commissioning 5,920 87,742 29,277 122,939 Close-out 55,240 55,240 Contingency 5,124 47,419 155,594 269,441 490,826 689,218 1,657,622 497,768 195,424 739,317 1,125,606 5,762,6961 1,479,189 9,800,0 Reimbursable Costs: N/A Section 8-Page 72 CIP Project Detail Sheets Project Name&Number I Plant 2 Collections Yard Relocation - P2-127 Project Category Support Facilities Project Status: Revised Description This project will replace the existing Collections Facilities yard and fencing in a new location,yet to be determined. Support Facilities Justification The area where this facility is currently located is needed for the new Temperature Phased Anaerobic Digestion facilities. The project budget has been increased from$1,500,000 to$1,840,000. The increased budget is needed based on changes in the project elements identified from recent engineering efforts. The projears construction cost is$900,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Date Budget Proj Dev 1,735 187 1,922 Prelim Design 38,844 38,844 Design 43,780 106,029 164,841 314,650 Consouc9on 1,154,622 1,154,622 Commissioning 24,043 24,043 Close-out 32,504 32,504 Contingency 6,191 25,796 241,428 273,415 51,706 170,8561 1,617,438 1,940,000 Reimbursable Costs: N/A Section 8-Page 73 2018-19 & 2019-20 Budget Project Name 8.Number I TPAD Digester Facility at Plant 2 - P2-128 Project Category Support Facilities Project Status: Revised Description This project is the largest of a set of related projects to replace the mesophilic anaerobic digesters at Plant 2 with new digesters in a temperature-phased anaerobic digester(TPAD)configuration. This project will include six new thermophilic digesters,batch tanks,cooling facilities,and associated sludge pumping,digester mixing, power distribution,and controls. Replacement and demolition of existing digesters will be included in a separate project. Support Facilities Justification The 2017 Biosolids Master Plan conducted a comprehensive evaluation of end-to-end alternatives for solids processing at Plant No.2. The study was prompted by seismic and condition deficiencies in many of the existing digesters. The evaluation concluded that the best alternative was to replace the existing digester complex with a temperature-phased anaerobic digestion process with batch tanks to meet Class A requirements. One of the key benefits of this approach is that when the thermophilic digesters are placed into service,the Sanitation District would be able to produce classified sludge even if the existing digesters failed due to seismic event. The project budget has been decreased from$419,000,000 to$405,100,000. The reduced budget is a result of an updated estimate to complete the work as determined in the 2017 Facilities Master Plan. The projects construction cost is$265,140,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Date Budget Proj Dev 175,935 46,781 222,716 Prelim Design 1,248,024 4,375,449 17,076 5,640,549 Design 262,046 6,351,808 9,966,534 16,580,388 Consbuc9on 297,698,813 297,698,813 Commissioning 5,370,611 5,370,611 Close-out 4,772 4,772 Contingency 730,123 1,424,140 2,366,510 3,911,278 71,150,100 79,582,151 906,058 2,718,945 7,004,005 10,280,1621 394,190,830 405,100,000 Reimbursable Costs: N/A Section 8-Page 74 CIP Project Detail Sheets Project Name&Number I Digester P,Q,R,and S Replacement - P2-129 Project Category Solids Handling&Digestion Project Status: Revised Description This project will replace,or extensively rehabilitate Digesters P,Q,R,and S to address both condition issues,seismic deficiencies,and liquefaction risks,and relocated the ferric facility to the new digesters location.The new P,Q, R, S digesters will be the mesophillic phase of the TPAD process. ti Sol ids H ;sa Justification Digesters P, Q,R,and S are subject to liquefaction in the event of an earthquake,there are known structural deficiencies with the structures,and a thorough rehabilitation of mechanical and electrical systems is required based on age and condition. The project budget has been increased from$158,000,000 to$166,000,000. The increased budget is needed based on escalation of costs associated with delaying the project as determined in the 2017 Facilities Master Plan. The project's construction cost is$99,640,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Date Budget Proj Dev 238,535 238,535 Prelim Design 371,655 371,655 Design 12,695,574 12,695,574 Construc9on 114.346,644 114.346,644 Commissioning 7,116,694 7,116,694 Close-out 1,288,131 1,288,131 Contingency 29,942,767 29,942,767 166,000,000 166,000,000 Reimbursable Costs: N/A Section 8-Page 75 2018-19 & 2019-20 Budget Project Name&Number I B/C-Side Primary Clarifiers Rehabilitation at Plant 2 - P2-133 Project Category Primary Treatment Project Status: New Description COO This project will extensively rehabilitate the C-Side primary clarifiers at Plant No.2. The work is 000000 expected to include structural improvements, replacement of all mechanical and electrical systems, O O O new covers for odor control,and miscellaneous upgrades. This work was originally included in 00000000 O Primary Treatment Rehabilitation at Plant No.2,Project No. P2-98,but was broken out into a 00000000 O separate project due to the significant time interval between the two projects,and the lower degree of scope definition of this project. 00000000 Primary Treatment Justification The project is necessary to modify aging clarifiers and their associated mechanical and electrical systems. A concept study was completed in 2015 that recommended these permanent repairs. The project's construction cost is$149,940,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020-21 202142 20=3 Thereafter Total Project Date Budget Proj Dev 358,966 358,966 Prelim Design 559,291 559,291 Design 19,105,224 19,105,224 Consbuc9on 172,077,227 172,077,227 Commissioning 10,709,722 10,709,722 Close-out 1,938,473 1,938,473 Contingency 44,811,097 44,811,097 249,56d,000 249,560,0 Reimbursable Costs: N/A Section 8-Page 76 CIP Project Detail Sheets Project Name&Number I Plant No.2 Digester Facilities Rehabilitation - P2-91-1 Project Category Solids Handling&Digestion Project Status: Revised Description This project will rehabilitate all the Plant 2 Digesters.The extent of rehabilitation will vary per digester but may include mechanical equipment and piping including sludge mixing system,sludge recirculation and heating system,hot water system,auxiliary equipment,repair of concrete structure,miscellaneous safety item,and related electrical and instrumentation work. ti Sol ids H� V�, i & Di9 ?`&% Justification The Biosolids Master Plan mandates that the existing small digesters will be replaced by six Temperature-Phased Anaerobic Digesters(TPAD)and the four larger digesters will either be fully rehabilitated or rebuilt. It will take about 10-15 years to finish the design and construction of the new digesters in a phased manner. In order to keep all the existing digesters online until they are replaced,this project will complete smaller rehabilitation projects on the digesters to extend their useful lives. The project budget has been decreased from$49,220,000 to$20,000,000. The reduced budget is a result of changes in the project elements identified from recent engineering efforts. The projects construction cost is$8,270,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 202132 201 Thereafter Total Project Data Budget Proj Dev 317,818 317,818 Prelim Design Design 64,636 533,085 612,116 634,793 736,729 682,978 52,416 3,316,753 ConsWclion 370.770 1,788,356 1,830,982 2,039,027 2,221,012 2,029,271 1,978,100 12,257,518 Commissioning 101 106,138 109,063 101 93,183 522,335 Close-out 201,869 201,869 Contingency 25,303 185,824 295,037 398,908 539,865 656,872 1,281,899 3,383,708 7785261 2,507,265 2,943,022 3,178,866 3,606,669 3,478,185 3,607,167 20,000,000 Reimbursable Costs: N/A Section 8-Page 77 2018-19 & 2019-20 Budget Project Name&Number I Sludge Dewalering and Odor Control at Plant 2 - P2-92 Project Category Solids Handling&Digestion Project Status: Continuing Description This project constructs facilities to reduce biosolids handling and disposal costs, replace aging sludge dewatering facilities,and provides associated odor control facilities. The project will also demolish the existing Bell Press Dewatedng Building,and two unused sludge cake storage silos. This budget also includes construction of Truck Loading Bay Odor Control, Contract No. P2-92A, which is built under a separate construction contract. ti Justification This project will replace the dewatering facilities that have reached the end of their service life. Based on the Long Range Biosolids Master Plan,a newer dewatering technology,centrifuges,will be utilized to reduce the amount of water in the biosolids hauled offsite to reduce biosolids management disposal costs. The project's construction cost is$55,060,000. This project will decrease operational budgets by$1,800,000 annually. Sludge hauling and disposal costs will drop because there will be less moisture in the sludge. This operational savings factors in the additional energy and chemical costs associated with operating centrifuges. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 1,298,345 1,298,345 Prelim Design 2,793,707 2,793,707 Design 7,163,556 7,163,556 Consbuc9on 56,868,202 11,316,664 4,477,450 121,704 72,784,020 Commissioning 380,673 995,599 1,326,155 147,119 2,849,546 Close-out 681,544 681,544 Contingency 223,722 1,065,750 989,900 609,090 17,820 2,906,282 Total 68,728.205 13,378,013 6,793,505 1,559,457 17,820 Reimbursable Costs: N/A Section 8-Page 78 CIP Project Detail Sheets Project Name&Number I Primary Treatment Rehabilitation at Plant 2 - P2.98 Project Category Primary Treatment Project Status: Revised Description a The primary treatment facilities at Plant No.2 consist of 14 circular clarifiers which are supported by000000 influent piping, influent distribution structures,effluent piping and sludge pumping units.The 0000000 Oclarifiers are covered with geodesic domes which collect foul air from the clarifiers for conveyance O O Oand treatment at two foul air scrubbing complexes.The first phase of the project will provide interim O O Orepairs to the ten clarifiers on B and C Side,and pipelines to provide necessary reliability when theA-Side clarifiers are taken out of service.The second phase will replace the four clarifiers on A- O O OSide,construct a new odor control system,and provide a new power building. O Primary Treatment Justification This project is necessary to modify the aging clarifiers and their associated mechanical and electrical systems.A concept study was completed in January 2015 that recommended the replacement and repair. The project budget has been decreased from$491,000,000 to$245,000,000. The reduced budget is a result of transferring the major rehabilitation work for the 6-side and C-Side clarifiers to Project No. P2-133. The projecPs construction cost is $157,610,000. This project will increase operational budgets by$50,000 annually due to additional effort to monitor clarifiers with flat covers. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Data Budget Proj Dev 828,155 828,155 Prelim Design 8,159,888 1,112,479 9,272,367 Design 948,259 2,656,728 3,454,982 5,060,232 1,154,411 13,274,612 Consauc9on 3,806 439,833 4,114,015 4,112,11E 10,658,795 36,644,255 122,123,232 178,096,054 Commissioning 1,795 5,557 222,519 744,986 2,826,355 3,801,212 CIOse-out 73,488 14,838 1,209,886 1,298,212 Contingency 51,131 641,647 1,429,883 2,659,806 2,716,943 3,956,665 26,973,313 38,429,388 9,991,239 4,850,687 9,000,675 11,911,201 14,767,506 41,345,906 153,132,786 245,000,0 Reimbursable Costs: N/A Section 8-Page 79 2018-19 & 2019-20 Budget Project Name&Number I EAM Software and Process Implementation - SP-100 Project Category Information Management Systems Project Status: Continuing Description This project will implement the IBM Maximo System in support of the Enterprise Asset Management D program. The system will replace the current Computerized Maintenance Management System. The system will manage asset data and asset activities throughout the asset lifecycle. Information Management Systems Justification The IBM Maximo System will provide the means to manage asset to achieve the highest return at low risk by improving asset usage and reducing cost. The system will also manage asset lifecycle, provide visibility into asset performance,streamline process by eliminating paper work order,and reduce maintenance cost. The system will be integrated with other District system (i.e. FIS, GIS,and Timecard). The projects construction cost is$210,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Coal To- 2018-2019 2019-20 202041 20214!2 20224!3 Thereafter Total Project Data Budget Proj Dev 1,306,829 1,306,829 Prelim Design 412.837 412,837 Design 2,119,035 373,980 686,232 3,179,247 Construction 864.288 319,982 243,464 1,427,734 Commissioning 223,344 41,024 41,024 305,392 Close-out 35,846 35,846 Contingency 52,983 206,969 207,797 21Q2]8 154,087 832,114 5,015,163 941,955 1,178,517 210,278 154,087 Reimbursable Costs: N/A Section 8-Page 80 CIP Project Detail Sheets Project Name&Number I Geographic Information System - SP-15 Project Category Information Management Systems Project Status: Revised Description Geographic Information Systems(GIs)can be utilized at the District for any works project such as collections,ocean monitoring,flow studies,rate structure studies,and construction. The GIs can be a planning tool for Asset Management,and a reporting tool for Permits and Sewer Shed Modeling. Other regional programs that would utilize the GIs are Bacteria Investigations,Air 0 Quality,Special Purpose Discharge Permits, Connection Permits,and Source Control Permits. A i I I I li I I B goal of the project is to enable Internet access to the District's GIs and Electronic Data Management System(EDMS)by consultants to collect data for projects and to check out and check in drawings. The public would also benefit through Internet access to reports and news about District's projects. Information Management Systems Justification There is a need for spatial data control,and a reporting tool that can graphically display the District's data on maps via the Internet for reporting to agencies,the public,and across the organization. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202041 202182 20=3 Thereafter Total Project Data Budget Proj Dev 801,985 801,985 Prelim Design 121.040 121,040 Design 141,989 26,631 26,631 195,251 Construc9on 1,825,679 249,445 249,445 2,324,569 Commissioning 2,091 2,091 Close-out 24,4761 24,476 Contingency 151,529 591,912 355,147 1,098,588 3,068,789 867,988 631,223 4 Reimbursable Costs: N/A Section 8-Page 81 2018-19 & 2019-20 Budget Project Name&Number I Climate Resiliency Study - SP-152 Project Category Strategic&Master Planning Project Status: Continuing Description This study provides a site-specific vulnerability analysis of potential impacts of climate change on OCSD's infrastructure and operations in response to the Governor's Executive Order(EO)8-13-08 OCSD's Climate Change/Environmental Footprint Initiative started in 2007 and has completed a detailed carbon footprint study.The next step and the subject of this study includes a site-specific assessment to identify threats to infrastructure and operations and develop resilience strategies to reduce vulnerabilities to weather extremes,climate change and variability. p ; iri Q� L' Master Planning Justification On November 14, 2008,Governor Arnold Schwarzenegger issued an executive order directing state agencies to plan for sea level rise and climate impacts.The executive order predicts global warming may lead to thermal expansion of sea water,along with partial melting of land-based glaciers and sea-ice, resulting in a rise of sea level. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 20=3 Thereafter Total Project Data Budget Proj Dev 32,986 68,452 187,649 289,087 Prelim Design Design Consauc9on Commissioning Close-out Contingency 19,035 120,305 161,573 300,913 520211 188,757 349,222 Reimbursable Costs: N/A Section 8-Page 82 CIP Project Detail Sheets Project Name&Number I Bay Bridge Pumpstation and Force Mains Rehabilitation Study - SP-178 Project Category Collections Facilities Project Status: Continuing Description This project will investigate opportunities to replace and relocate the Bay Bridge Pump Station and replace the forcemains under the Newport Bay Channel.The pump station and forcemains are aging and undersized.This project will also investigate operation, maintenance,and code compliance issues associated with the Bay Bridge Pump Station and the force mains leaving the station.This includes CEQA requirements,odor control needs,equipment inspection,hydraulic capacities, National Fire Protection Association(NFPA)compliance,and Occupational Safety 8 Health Administration(OSHA)requirements. Collections Facilities Justification This project will provide needed recommendations and direction for future Project No.5-67, Bay Bridge Pumping Station Upgrade and Rehabilitation. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 202081 202182 2022-23 Thereafter Total Project Data Budget Pmj Dev 666,740 666,740 Prelim Design Design 58,202 58,202 Construction 58 58 Commissioning Close-out Contingency 725,000 Reimbursable Costs: N/A Section 8-Page 83 2018-19 & 2019-20 Budget Project Name&Number I Capital Improvement Program Management Services - SP-195 Project Category Others Project Status: Continuing Description Program management consulting services for the Capital Improvement Program not related on any one specific project, but on the management of the projects as a whole. Includes consulting services related to best practices in project and program management including risk analysis, benchmarking, analysis of key performance indicators(KPI),program metrics, and data analysis. May also include review of project controls including project budgeting,cash flow analysis and project scheduling. *ilhl Others Justification Project facilitates continuous improvements to program management practices to maintain effectiveness in managing the Capital Improvement Program as business practices and the project makeup of the CHIP evolves. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019-20 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 5,826 5,826 Prelim Design Design 19,620 100,005 119,625 Consbuc9on 45,184 45,184 Commissioning Close-out Contingency 129,365 129,365 70,630 229,370 1 300,0 Reimbursable Costs: N/A Section 8-Page 84 CIP Project Detail Sheets Project Name&Number I Process Control Systems Upgrades Study - SP-196 Project Category Information Management Systems Project Status: Continuing Description This study will evaluate and identify suitable replacements for the existing Supervisory Control and Data Acquisition(SCADA)Systems for the treatment plants and pump stations,which includes Human Machine Interface(HMI)hardware and HMI software, Programmable Logic Controllers (PLCs), Historian, import-export tools to align HMI servers,and security and administrative 0 requirements for the Industrial Control System(ICS)network.These improvements will provide greater reliability and system continuity by replacing the existing obsolete HMI systems,databases and software programs,to provide trending,diagnostic data, monitoring,control,automation and management information such as logistic information,detailed linked Standard Operating Procedures(SOPS),and expert-system troubleshooting guides.This study will review the latest Information technology offerings, evaluate the existing process networks and hardwired network configuration and recommend changes,define system reliability, redundancy,performance and scan time Management requirements, identify software programming tools that need replacement,evaluate enterprise wide process data integration needs,evaluate and define requirements for current and future SCADA systems and ICS security requirements,define requirements for upgrading HMI and PLC hardware and software standards. Justification The existing HMI system consisting of the CRISP software and associated SCADA sub systems is obsolete. The CRISP software has a limited customer installed base and technical expertise for support and source code modifications will become scarce in the future. The CRISP HMI software in conjunction with the SCADA sub systems provides important data communications for treatment process and plant monitoring,control,automation,visualization,alarm handling and notification. The existing Quantum PLCs that are currently being used throughout the treatment plants and pump stations are no longer being manufactured.. The manufacturer has developed a family of replacement PLC processors and ancillary equipment with enhanced capabilities and security features.A new processor system will also be evaluated and selected to provide a long-term,20-year plus life. Reliability and maintainability of the SCADA systems is critical to maintaining regulatory compliance for both the collections system and the treatment plants. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2018-2019 2019420 2020421 2021422 2022423 Thereafter Total Project Data Budget Proj Dev 618,462 1,269,017 823,321 2,710,800 Prelim Design 1,716 1,716 Design 19 19 Construction Commissioning Close-out Contingency 100,849 393,945 346,671 841,465 721.046 1,662,962 1,169,992 Reimbursable Costs: N/A Section 8-Page 85 2018-19 & 2019-20 Budget Collection System Improvement Projects - Budget by Project Status Project Toad New Continuing Revised Future Number Title Budget Project Project Project Project Collections Facilities 1-101 Raib&Brad Street Sewer Extension $ 7,100,000 $ 7,100000 1125 Edinger Bolan Chirps Took lmpr. 51169,000 5.159AO0 1133 Edinger Pump Station Upgrade&Rehab 14,100,000 14,100,000 1134 Slater Avenue Pump Station Rehab 25,3OO,W0 2513W,000 2414 SARI Rock Stabilizers Removal Beni 6,860,000 249 Tag Branch lmpr. 2,130,000 2.130.000 2,65 Newfiope-Placentia Trunk Grade Separation Real. 4,300,000 4,300,000 2-72 Newhope-Placedla Trunk Repl. 112,000.000 112 000.WO 2-93 Yuba Linda Pump Station A9urdonment 1QBO0,000 10,800,000 2-76 Tustin Rose OCTA Gmtle Sagan ion 455,000 455,000 MD Beach Trunoldrod lderceplar Sewer Relief 138,000,000 136,000,000 3b2 Westminster Blvd Force Main Raid 541000,000 541000,000 3-64 Rehab of Western Regbnal Sewers 202,000,000 202,000,000 3-66 Interstate 405 Widening Prged Impacts I OCSD Sewers 526,000 528,000 3-67 Seal Bwh Pump Station Repl. TS000,000 TS000,000 Us Los Names Sub-Trunk Extension WOOD,WO WOOD,WO 540 Newport Force Main Rehab 59,666,000 59,666,000 5b6 Crystal Cove Pump Station Upgrade&Rehab 17,900,000 17,900,000 5fi7 Bay Bridge Pomp Station Real. 64,000,000 64,000,000 5b8 Newport Beach Pump Stations Pressurization Im, 4,066,000 4,066,000 e17 DisMd 6 Took Sewer Relief 7,965,000 7,965,000 737 Gisler-Red Hill Tmnk lmp. Reeche 25,213,000 25,213,000 7463 MacAMUr Pump Station Rehab 13,100,000 13,100,000 7-64 Main Street Pump Staion Rehab 60,400,000 60,400,000 7fi5 Giser-Red Hill Interceptor Rehab 14,800,000 14,800,000 SP-98 Bay Bridge Pumpatation&Force Mains Rehab Study 725,000 725.WO Collectons Facilities Ted Budget 993,469,NO 144,900,NO 339,325,NO 202,455,000 306,789,000 Section 8-Page 86 Summary by Project Status Treatment & Disposal Projects - Budget by Project Status Project Total New Continuing Revised Future Number Title Budget Project Project Project Project Headwork, PI-105 Headwords Rehab&Expansion at Pl 370,000,000 370,111 Pi-123 Tmnk Line Odor Contml In, 91299.000 91299.000 P2-122 Headwords Modigcaticns at P2 for GWRS Final Expansion 54,WO,OW 54,WO,OW Heddl Total Budget 03,2gg,OW 63,ng,OW 370,0001000 Primary7busbnent Pi-126 Primary Clarifiers Red,&Impr.at P1 106,000,0W 106,000,000 P1-133 Primary carries&31 Reliability Impr.at P1 21,500,000 21,500,000 P2-133 BICSitla Primary Clarifiers Rehab at P2 249,550,000 249.561 P2E8 Primary Treatment Rehab at P2 245,000,000 245,111 Primary Treatment Tonal Budget 622,060,000 271,060,000 351,0011,000 Secondary Treatment Pt-in Ream Activated Sludge Piping Repl.at Wiveted Sludge Pt 7,900,000 7,900,000 P2-123 Return Activated Sludge Piping Real.at Plant No 2 12,750,000 12,750A00 P2-118 Activated Sludge Almtion Basin Deck Peter at P2 MOM MOM Second.,Treatment Total Budget 23A50,000 ;BOO,OW 2g650A00 Solids Handling&Digestion P2-124 Interim Facd Wastes Receiving Fadlily 6,WO,M 6,300,000 Pi-100 DiScamr Rehab at Pl 66,000.000 below,000 P1-101 Sludge Dewatenrg&Nor Carl at Pl 199,WO,OW 199,5W,000 P241-1 P2 M, ler Fetlltiies Rehab 20,000.000 201000,000 P242 Sludge Dewatenrg&Nor Carl at P2 90,477,000 90,477,000 P2-ln DiScamr P,O,R,&$Real. 166,000,0W 10,000000 Sulfide Hall&Madman Tatty Budget setagn,,OW 9DA77,ON M,800,000 Ocean Outhall Systems J-117 Noun Outlall System Rehab 166,000,000 166,000,030 Ocan Ougall Systems Toal Budget 166,WO,OW 165,WO,OW Nifty systems J-121 UPS$Main Upgrades 4,700.000 4,700,000 J-124 Digester Gas Facilities Rehab 96,WO,OOII 96,WO,OOII J-127 Natural Gas Pipelines Reel.at P1&P2 1,310.000 1,310.000 J-96 Electrical Power Distributed System Imp, U'usi' 0 34,608,000 P2-119 Central Generation Rehab at P2 114,000,0W 114,000.OW Section 8-Page 87 2018-19 & 2019-20 Budget Treatment& Disposal Projects -Budget by Project Status Project Toad New Continuing Revised Future Number Title Budget Project Project Project Project UUI&y Systems P1-132 Uninkumptable Prover Supply lots,.at P1 4,800.000 4,600.000 pi-12r Central Generation Rehab at Pit 87,WO,000 87,WO,000 P2-110 Consolidated Derni&Utility lmpr.d P2 311000,000 31,000000 Utility Systems Total Budget Si ]0],fi10,000 ]1,—ONOM ]9,]OB" Process Related Special Projects J-126 Safety lmpr.Program 19,W0,000 19,W0,000 Process Related Special Projects Total Budge 1910001000 1910001000 IMormado.Management Systems J-120 Process Codml S)¢tems Upgrades 46,000.000 AM= J-126 Project Mgm]ldotmi System 4,WO,000 4,WO,000 WMCAT Information Technology Capital Program 101000.000 101000.00) P2-107 SWA System&NeMmdc Upgrades S,WO,000 5,WO,000 SP-100 EAM Software&Process lmplementalion 71500.000 71500.000 SP-15 Geogmphic Inforrratlan System 4,568,000 4,56SCOD SP-196 Process Codml 8,,mms Upgrades Story 31554.000 3,554,000 Information Management Systems Taal Budget 80,622,0W 301051 0. NAN ",OMAN Strategic&Master Planning SP-152 Climate Resiliency Study Bei WO,OW MSTUDIES Planning Sodium Program 28,652.000 28.651 strategic&Master Plannlnp Total Budget ati'm,OW M,212,OW Water Management Projects J268 GWRS Final ENtamion Coordination 1,132,000 1,132,000 Water Management Protons Total Budget 1,132,OW 1,132,OW Research M-RESEARCH Research Program 61500,000 &5WUOD Research Total Budget %501 8,sHBOO Support FacilMes "M-CAP Operations&Maintenance Capital Program 15,&22,000 15,&22,000 P1-115 The 24 Access Compliance&Building Rehab Project 18,400,000 18,400,000 J-131 18350 M]tengley St.Building Purchase&Improvement 111Wg000 11,OW,COD MFE Sri Contraction Projects Program 55,WOM boom 000 P1-128 Pb128 Headquarters Complex&Site Security at PI 179,061 179,061 P2-in P2 Warehouse Relocation 91600.000 91600.000 Section 8-Page 88 Summary by Project Status Treatment & Disposal Projects - Budget by Project Status Project Total New Continuing Revised Future Number Title Budget Project Project Project Project Support Fadlgies P2-127 P2 Collections Yadl RetoraOon 1,6/0.000 1.9W,000 P2-120 TPAD Digester Facility at P2 405,100,000 405,100,000 Support FacllNln Total Budget 695,929,000 204A09,000 4W,3410A00 Others P2-120 Banning Gate Rabc is Grading at P2 2,931.000 2,931.000 P2-125 Perimeter Screening at P2 2,wo,000 2,wo,000 SP-195 Capital Improvement PMmmr Mori Services 300.ox 300.ox Others Total Budget 6p31,s00 6p31,000 Tdal Treatment and Disposal Projects 3,007,360,000 271,060,000 916,130,000 1,730,050,000 By3dB4O00 Total Collections Facilities 093,0e9.000 144,900A00 3UA26,000 202,40,000 300,i99.000 Capital Equipment Purchases 9,593,700 deal Total Capital lmprovemem Program Budget 51,010A22,i00 H15,000,000 51,206.05E}00 N,937,313,0011 9092,007,000 Section 8-Page 89 2018-19 & 2019-20 Budget Collection System Improvement Projects Project N.M. Total Percentage Allocation Total Project Coat Budget Project mail Stlalryl[ AEEl Reavalm gNep Noral l Somenc Ob] Repultlwy Bad 0 aAI shade, Gqury Regncemem Ini coined, Collections Facill Haut B briatd SOeet Sayer Edchn. $ 7.1mr.000 100% - - § 2,100,000 Edinger Bolas Chip Think ant, Site,00 1L0% - - 5,159,000 Edinger Pump Station Upgrade 8 Rehab 14,100,000 100% 14.100,000 - - Shamir Avenue Pump Station Rehab 25.300,000 100% 25,3(1 - - SARIRockStabl@ers Removal 6.860.000 100% - - - 6.860.000 Taft March Im,. 2.130,000 10% - - 2130,000 Nestlope-Racal Think crude Separation pop, 4,300A00 100% - - - 4,W,000 Neal Placentia Tmak Repl. 112,0100,000 25% 25% AYv 29000,900 28,9W,000 lemo 000 YoNe Lints Pump Slal abandonment 10,8W,000 IW% - 1018001000 - Tustin Read 06TAGrick,Mparabon 456,000 ion - - - 456,000 Beach Tranlit lave lOr Sewn Relies 136.000,000 100% - - 136,000,000 Wastmincler BNt For.Main Rull. 54,000,000 100% c"Good000 - - - Rehab of Willem Regional My. 202,000,000 75% 26% 15116W,900 - imia 00 IHeated 405 Widening Pi Impacts An Oki 5n 000 rum - - - 523000 Sewers Seal Beach Pump Statian Rapt, 78,900,000 IW% matters) - - Los Aber SubTrunk Etlenaian founde,WO 25% 25% 40,5400,900 - M,5N,000 Newport Farce Main Rehab 59,668,000 1sk, weal - - CrysblCovePumpSlalbnUpBraEe B Rehab 17.900,000 SMA SMA 891 - bles 00 Bay Badge Pump Sbtim Repl. 64.000,000 TS% 26% 48,000.000 - 16AWA00 Nespod Beach Pump Sbhena Preasurlptirm Imp. 4.0611,000 50% 50% 20331000 2,03,000 - oisMdfi Trunk Seaver Role 7,965,000 50% 50% 3962,50) - 3,M,500 Gisler Rod Hill Trunk lmpr.-Reach B 25,213,000 50% 50% 12606,500 - 12,605,500 Metal Pump Stetson Rehab 13.100,000 fro% 13,100.000 - - MainSbetPumpSetlonRehab 60.400,000 100% 60,400.000 - - CoerRodHilllnter.pbrRehab 14.800,000 100% 14,800,000 - - MyBnd3ePumptation B Force Maine Rehab Study 225,000 Ill ttR000 - - Collections FacilNba Projects TOW W3,46g000 625,555,000 40,833,000 1 314,928,000 1 12,11110 Section 8-Page g0 Summary of Revenue Program Category Treatment& Disposal Improvement Projects Prolid Name Total Percentage Allocation Total Protect Coal Budge PfOted .1. enale9¢ tri Ryu6hy Rai ande k Additional Regulatory Budge W InPAve GPacM R,.—nt Ia... Caai Trunk Line Nor Carol lar,, 9,2%,00 100% - 9,299,000 - HwEwoMa Medittator.at P2 lot GWRS First 56,OW,IgO tpl% - 54,1100,000 - Espanron HeaewaMS Rehab&Esparemo at PI 371000 11 320,000,000 - - Headearks Patti Total 433,291 370,000,000 63,299,000 Process Control Starnes Up9mdes 46.000,000 t00% 46000.00) - - Pmi Miln.Information System 4,IX0A00 IW% - 4,000,000 - InfaeaOon Taulandy Capital Pmgram 10.000,000 50% 50% 501 5,011 - SCADA Sysem&NBMnrk Upgratles 51000100 100% 5,ogui - - EMI Software&Process Implementation 2,50S09 10% 1501 - - Geographic lnfmretion System 4,568A00 10% - - 4,508000 Process Corral Systems Upgrades Study 3.554,000 t00% 3,554,00 - - Information Management Systems Pmleds Total 80,622,000 6T,05gOW 9,000,000 4,561,000 Coma Ni System Rehab 165.000000 25% cyA 41W.OW 124,500,000 - New 0i Systems Proi TOW 1660Wp00 41,50400 124,500,000 Banning Gate RelosOon&Grading at P2 2,01,000 lwr% 2,931,000 - ramant Saeenir,g at P2 2.800,00 1W% 2000W - - Quit lmpmvameni Prcgrem Signal.Samos 300,000 100% 3W,000 - NNr Protects Taal 6.051,000 3d00,OW 3,331,000 Primary Chifier Repl.s&In,al P1 106,000,000 100% INIINOW - - Primary Gab0er5631 Ralleollty,Imp,at P1 21.500,010 50% 50% 10780.000 - 10.71 WC-Side Primary Clarifier RaM1ab at N 249,5PO,W0 1W% stmis OW - - Primary Treatment Rehab d P2 245000000 1W% 245000.00s) - - Primary TreaMent Prole us Total 622,060,000 611,310,000 10,750,000 MN,IN,Pmgram 19.000000 100% - - 19,000000 Prceea RelakE Spi Protects Final TW1 19,OW,000 19,000,000 Rescarch P,pan 8,Sf0A00 100% 8500000 - Research Pm3enls Tend O.W,000 6Wou00 RBWrn Activalnd Sludge Piping Reel.at iiessid 2,900,00 100% 7900000 - - Sludge Pit Section 8-Page 91 2018-19 & 2019-20 Budget Treatment& Disposal Improvement Projects Project Name Total Perennial Allocation Talal Project Cost Budget Project san. Sualryle d.—I foodun[ry gNup,l dareadia Additional Pegulalwy Budget 6m hidati.T eon, dopeonal InMative easing Retum AciNaled Sludge Piping PaDt.at Plain No 2 12.MNO 1W% 12750.W0 - - Adlvaled Sludge Aeraden Basin Deck Repair at P2 2,800,00 1W% 2,WO,M0 - - Secondary ThaMent Projects Total 33,150,0011 21ISO,IIW IMen.Food Waste Receiving Faclliry 6.3W,00 IM - 6,390.OW - P2 D'pesler could.,Rehab 20,OW,000 100% 20003.0100 - - Bud,Dewetenrg&War cmlbol At P2 WATT,WO IM 90,47,000 - - D'gesler P,0 R,85 Repl. 1E6.000,000 100% 188000.000 - - Deal Rehab At Pl W.OW,WO IM 66,W00W - - No,Dewelwlrg 6 Cdor Call at Pl 199.500,000 50% 50" 99,750.000 - 99,TW,000 Sail Handling&Digestion Patients Total 640.2"1 a13,33T,OW 11 99,750,000 Climate hall Study oustwo 60% - 590,000 - Planning Studies Pogram 28.662000 40% 26% 10% 25% 11460.80) 7,163.00 2,865,200 7.163.000 SWegic&Matter Planning Poll Total 29,242,000 11,M,8W 7,,753,01 2,865,200 7,10,000 Opemtkms&Maintenance CapAal Pm,mm 15.622000 100% 1562000 - - Title 24 Access,Compliance&Building Rehab Prated 1aAW,WO iW% - - - 10AW,000 18HO M1.Wni St,Building PuMase& 11.000000 10% - 11.000,000 - lauraremenl Small CondWdion Prated,Program SS,OWp00 TD% 16% 16% 10% 38,500,000 5,W3,OM 5,600,050 515001000 P1128 Headqual Carmk%&Ste Security al Pi 119.067000 50% 50% 89533,500 BAMBOO - P2 Ransil Rebcamn 31800100 1W% 9,80l - - P2 Colledkms Yet Rellal 1,BW.00 1W% 1530,000 - - TPAD Digsder Feebly at P2 40,100,050 1W% 406100,000 - - Sappot Fxill Proleak Total "B'dw0g0 5Nn5,m Hamill 5,5W,OW 3,,,,,,o UPS System Upgrades 4,700,00 IM 4701 - - Dgesler Cos Facilities Rehab 955W,W0 100% WSM.DW - - NAmAl Gas Piim ineS RAN at P1&P2 11310,00 100% 1,310AW - - Elecriical Power Distubu6Dn System Inn, 31,6W,W0 100% 36,M,OW - - Cons011dated Demdisan&All brig,.At P2 311000,000 100% 31,000,000 - - Central Generation Rehab at P2 114.0100 000 100% 114 W00W - - Unlnterimptable Pawer Supplylth,at 11 4,800,00 IM 4,800,000 - - Section 8-Page 92 Summary of Revenue Program Category Treatment& Disposal Improvement Projects Project Berra Total Peroental Allocation Total Project Cost Budget Protect gala. Stlnlryl[ PEEYI—I pulAry Pe .I Shalepic Additional equl Budget Sao .. GouIty Oepacemem legal L elry Central Genotetlon Ratted at P1 01.0WOOO 100% 8)000.OW - - WIBy Byakma Prajecta Total 373,818.800 37%918,OW GMS Firal Erpensim CmNlnalim 1.132,900 100% - 1.132.000 - Water Manageoent Iii Projects Total 1,132,000 1.130.11W TotelTnaNreMelq Ms9osalprojacis 3003,360,000 2.540.11B300 $29,70,500 "ll"In 300 56,W1A00 Tool ColkUions Fell 993A69.000 625,565,000 40,03,000 "AM ON 12,1"M Coal Ealingionand Perot es 2IM700 zued'do 2,3911M 2,391,05 2,398A25 Tool Cal lmpouemenl prang. K010A22,700 95,132AT8,325 $3749"1 je36,191,10 j62,132A25 Section 8-Page 93 2018-19 & 2019-18 Budget Proposed Capital Equipment Budget 2018-19 Trucks & Other Mobile Machine Eq Comm Vehicles Eq &Tools Equipment Department 09410000 09410001 09410002 09410003 Information Technology $ - $ - $ - $ - Resource Protection - - - - Laboratory, Monitoring and Compliance - - - - Electrical and Control Systems Engineering - - - - Collection Facilities O&M - - 18,400 - Fleet Sernces 724,100 1,066,900 22,000 - Plant No. 1 Operations - - - - Plant No. 1 Maintenance - - 84,800 - Maintenance Reliability and Planning - - - - Plant No. 2 Maintenance - - 33,200 - Total Proposed Capital Equipment $ 724,100 $1,066,900 $ 158,400 $ Section 8-Page 94 Proposed Capital Equipment Budget Summary Proposed Capital Equipment Budget 2018-19 Instr/Test Safety & Office Fix Computer 2018-19 Equipment Traffic Eq & Eq Equipment Proposed Department 09410004 09410005 09410006 09410007 Budget Intonation Technology $ - $ - $ - $ 15,000 $ 15,000 Resource Protection 39,000 - - - 39,000 Laboratory, Monitoring and Compliance 1,047,300 - - - 1,047,300 Electrical and Control Systems Engineering 123,200 - - - 123,200 Collection Facilities O&M 50,900 - - - 69,300 Fleet Services - - - - 1,813,000 Plant No. 1 Operations 128,700 - - - 128,700 Plant No. 1 Maintenance 22,100 - - - 106,900 Maintenance Reliability and Planning 179,900 - - - 179,900 Plant No. 2 Maintenance 26,900 - - - 60,100 Total Proposed Capital Equipment $1,618,000 $ - $ - $ 15,000 $3,582,400 Section 8—Page 95 2018-19 & 2019-20 Budget Proposed Capital Equipment Budget Detail Proposed Capital Equip. Division EgUlpment Type Budget 250 - Information Technology Cathodic Protection Software(Div. 875) $ 15,000 Total 15,000 620 - Resource Protection Five(5)Weather Refiigerated Sampler 8,Five(5)Portable Sampler 39,000 Total 39,000 630 -Labomtow, Monitoring, and Compliance Automated Sample Extraction System 120,000 LCMS External Pump 33,000 EPA 624 Purge&Trap GCMS System 165,000 Benchtop Balance Enclosure 15,300 Digital Droplet PCR System 86,400 Freezer(-80 Degrees Celsius) 16,400 Skalar Auto-Sampler 16,000 Scientific Winch 150,000 Seakeeper Vessel Stabilization System 208,000 Training Microscope 22,000 Two(2)Acoustic Doppler Cument Proffer 81,200 Six(6)Ocean Acidification And Hypoxia Sensor Packages 134,000 Total 1,047,300 770-Electrical and Control Systems Engineering Fiber Optic Networking Testing And Maintenance Kit 80,000 Two(2)PLC Test Units 43,200 Total 123,200 820-Collection Facilities O&M Pole Camara 18.400 Trimble R2 GNSS Receiver(2) 50,900 Total 69,300 822 - Fleet Services Eleven(11)Sedans 308,600 Six (6)Light Trucks 220,200 Two(2)HeaW Trucks 195,300 21 Electdc Carts 262,600 Four(4)Electric Carts(Large Cab)BF-3000 90,500 14-Passenger Electric Cart For Div. 140 20,000 Two(2)Towable Light Tower With Generator 29,100 500 Kw Trailer-Mounted Generator 325,000 Hose Reel Trailer For The 12"Pumps For Div. 820 317,900 Trailer For The Transportation of 25'Pump Hoses For Div. 880 21,800 2-Post, 10000 Lbs. Capacity Autolift 22,000 Total 11813,000 Section 8-Page 96 Proposed Capital Equipment Budget Detail Proposed Capital Equipment Budget Detail Proposed Capital Equip. Division Equipment Type Budget 830-Plant No. 1 Operations FUR GF320 Optical Gas Imaging Camera $ 105,600 Two(2)Hydrogen Sulfide Analyzers 23,200 Total 128,700 870 - Plant No. 1 Maintenance Two(2)Miller Gas Engine Ddwn Generator Trailblazer 302 Air Pak 28,200 Skid-Mounted Pump System &Water Suction&Discharge Hoses 56,600 Two(2)Midtronics CAD-5500 Battery Tester/Analyzer 11,000 Fluke 437 II 3-Phase Power Quality & Energy Analyzer 11,100 Total 106,900 875-Maintenance Reliability and Plannina Megger DDA-6000 High Current Circuit Breaker Tester 81,000 Electric Motor&Generator Analyzer 90,000 Sverker900 High Voltage 3-Phase Protection Relay Tester 8,900 Total 179,900 880 - Plant No. 2 Maintenance Ice Blaster-Electric Motor&Generator Cleaner 33,200 10 Amp Micro-Ohm Meter 5,100 Fluke Networks Cable Tester 21,800 Total 60,100 Total Proposed 201849 Capital Equipment Budget $ 3,582,400 Section 8—Page 97 2018-19 & 2019-20 Budget Proposed Capital Equipment Budget 2019-20 Trucks & Other Mobile Machine Eq Comm Vehicles Eq &Tools Equipment Department 09410000 09410001 09410002 09410003 Laboratory, Monitoring and Compliance $ - $ - $ - $ - Electrical &Control Systems Engineering - - - - Collection Facilities O&M - - - - Fleet SerNces 909,400 595,500 - - Plant No. 1 Operations - - - - Plant No. 1 Maintenance - - 57,300 - Plant No. 2 Maintenance - - - - Total Proposed Capital Equipment $ 909,400 $ 595,500 $ 57,300 $ Section 8-Page 98 Proposed Capital Equipment Budget Summary Proposed Capital Equipment Budget 2019-20 Instr/Test Safety& Office Fix Computer 2019-20 Equipment Traffic Eq & Eq Equipment Proposed Department 09410004 09410005 09410006 09410007 Budget Laboratory, Monitoring and Compliance $ 639,200 $ - $ - $ - $ 639,200 Electrical &Control Systems Engineering 43,200 - - - 43,200 Collection Facilities O&M 50,900 - - - 50,900 Fleet Services - - - - 1,504,900 Plant No. 1 Operations 23,200 - - - 23,200 Plant No. 1 Maintenance 50,300 - - - 107,600 Plant No. 2 Maintenance 105,600 - - - 105,600 Total Proposed Capital Equipment $ 912,400 $ - $ - $ - $2,474,600 Section 8—Page 99 2018-19 & 2019-20 Budget Proposed Capital Equipment Budget Detail Proposed Capital Equip. Division Equipment Type Budget 630 -Laboratorv. Monitoring, and Comoliance Two(2)Acoustic Doppler Current Profiler $ 81,200 Six(6)Ocean Acidification and Hypoxia Sensor Packages 134,000 Triple Quadrupole Gas Chromatography Mass Spectrometry Systems 385,000 Two(2)Precision BOO ReMgerated Incubator 24,000 Two(2)HACH Reidgerated Auto-Sampler 15,000 Total 639,200 770-Electrical &Control Systems Engineering Two(2)PLC Test Units 43,200 Total 43,200 820-Collection Facilities 0&M Two(2)Trimble R2 GNSS Receiver 50,900 Total 50,900 822 - Fleet Sendces Sedan 28,100 Nine(9)Light Trucks 380,800 Five(5)Heavy Trucks 500,500 21 Electric Carts 270,500 500 KW Trailer-Mounted Generator 325,000 Total 1,504,900 830-Plant No. 1 Operations Two(2)Hydrogen Sulfide Analyzers 23,200 Total 23,200 870-Plant No. 1 Maintenance Schenck Balancer CAB820 Control Upgrade 44,300 Cold Saw 13,000 Portable Vibration Sensor Calibrator 23,000 Beamex Multi-Calibrator 27,300 Total 107,600 880 - Plant No.2 Maintenance Two(2)Fluke 729 Automatic Pressure Calibrator 18,900 Megger Trax 220 86,700 Total 105,600 Total Proposed 2019-20 Capital Equipment Budget $ 2,474,600 Section 8-Page 100 DEBT PROGRAM SECTION 9 Debt Financing Program CERTIFICATES OF PARTICIPATION maintain reliability and accommodate future growth, DEBT FINANCING PROGRAM as well as meet future regulatory requirements, level of service goals,and strategic initiatives. A Ten-Year Financial Plan is maintained to establish financing parameters regarding the issuance of debt, Each project in the master plan was initialed to the levying of user charges and the funding level for address the impact of one or more of the main required reserves in accordance with the District's drivers (existing facilities condition, changes in reserve policy. The Financial Plan is revised regulations, facilities rapacity, redundancy criteria, annually to reflect the most cuff ant cost and revenue District initiatives, and health and safety). Most of figures resulting from capital program revisions and the CIP needs for the next 20 years are due to the operating changes. condition of existing aging facilities requiring In December 2017, the 2017 Facilities Master Plan rehabilitation and replacement. was adopted by the Board of Directors. The Master Plan identified a phased 20-year program of capital improvement projects that will allow the District to Figure 1 Summary of Certificates of Participation/Revenue Obligations and Notes Series 2009A Series 2010A Series 2010C Series 2011A Series Issue Name COPs Taxable SASs Taxable SASs Refund Rev Oblig Issue Date M-23-2009 05.18.10 11-29-10 10-03-11 Original Par $200,000,000 $80,000,000 $157,000,000 $147,595,000 Outstanding Par $4,690,000 $80,000,000 $157,000.000 $75,370,000 Payment Date February 1 February 1 February 1 February&August 1 Use of Proceeds Current/Future CIP Currem/Future CIP Cunem/Future CIP Advance Refund Lien or Tier Open Senior Open Senior Open Senior Open Senior Interest Rate Mode Fixed Fixed Fixed Fixed Final Maturity Date 02-01-2019 02-01-2040 02-01-2044 02-01-2026 Series 2012A Series 2012E Series 2014A Series 2015A Series Issue Name Refund Rev Oblig Refund Rev Oblig Refund Rev Oblig Refund Rev Oblig Issue Date 03-22-12 08.1612 011 02-12-15 Original Par $100,645,000 $66.395,000 $85.090,000 $127,510,000 Outstanding Par $100,645,000 $66,395,000 $78,375,000 $127,510,000 Payment Date February 1 February 1 February 1 February 1 Use of Proceeds Advance Refund Advance Refund Advance Refund Advance Refund Lien or Tier Open Senior Open Senior Open Senior Open Senior Interest Rate Mode Fixed Fixed Fixed Fixed Final Maturity Date 02-01-2033 02-01-2026 02-01-2027 01 Series 2016A Series 2016B Series 2017A Series Issue Name Refund Rev Oblig Refunding CANS Refund Rev Oblig Issue Date 03-30-16 11-01-16 02-01-17 Original Par $145,880,000 $109,875.000 $66.370,000 Outstanding Par $145,880,000 $109,875,000 $66,370,000 Payment Date February 1 December 15 February 1 Use of Proceeds Advance Refund Current Refund Advance Refund Lien or Tier Open Senior Open Senior Open Senior Interest Rate Mode Fixed Fixed Fixed Final Maturity Date 02-01-2039 12-15-2018 02-01-2030 Section 9—Page 1 2018-19 & 2019-20 Budget In conjunction with preparation for the 2018-20 Dedicated Funding Source Budget, District staff has developed and reviewed In 1992 and 2004 the Board of Directors formalized with the Board of Directors a capital program to the dedication of certain funding sources. To assure deliver the levels of service included in the District's the continuation of favorable credit ratings, revenues 5-year Strategic Plan. were dedicated to debt service in the following order: District staff has also validated the active CIP 1. Ad valorem property taxes projects currently being executed to ensure that the 2. Sanitary sewer service charges active project scopes of work and cost estimates 3. Other revenues were accurate. The validated CIP includes 68 active and future capital projects, five programs, and This apportionment of the ad valorem tax was capital equipment purchases, with a 10-year consistent with and pursuant to the Revenue expenditure of$2.7 billion. Program adopted in April 1979 to comply with regulations of the Environmental Protection Agency The District embarked upon its Debt Financing and and the State Water Resources Control Board and Management Program, and specifically its Variable in accordance with COP documents and Board and Fixed Rate Debt Program (the "Program"), in policy. 1990 with the issuance of$100 million in Certificates of Participation ("COP"), Capital Improvement Historically the District's property tax revenues were Program, 1990 Series "A." The Program was at a higher level than necessary to support the established to: District's debt service obligations. However, capital improvement requirements averaging $200.0 million • Finance assets with long useful lives with long- a year over the last ten years have required new term debt; COP debt issuances that have increased future debt • Achieve the lowest possible interest costs and service payments that more closely matches highest investment returns, commensurate with property tax revenues. the appropriate risk; • Recoup reserve moneys that had previously Establishment of Debt Policy been spent. In 2001, the District developed a written debt policy for the following underlying reasons: COPS are repayment obligations based on a lease • committing to long-term financial planning; or installment sale agreement. The COP structure • promoting credit quality to rating agencies; was selected over other structures because COPS • rationalizing the decision making process; are not viewed as debt by the State of California, as . enhancing the quality of decisions; and the purchaser does not actually receive a"bond," but • promoting consistency and continuity. rather a share in an installment sale arrangement where the District serves as the purchaser. This Board adopted policy serves as the agency's Accordingly, the District is not subject to the usual guide in the management of existing debt and in the State restrictions surrounding the issuance of debt. issuance of future debt. COPS can be issued with fixed or variable interest rates. Debt Coverage Ratios As of July 1, 2018, the total outstanding COP The only legal debt limits pertaining to the District are those that are provided within the existing COP indebtedness is$1.0 billion. indenture agreements requiring 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 proposed at 3.68 and 3.79 for FY 2018-19 and FY 2019-20, respectively. Section 9—Page 2 Debt Financing Program Build America Bonds Financings Future Financings The District issued the $80.0 million Wastewater As a result of having a prudent reserve policy, Revenue Obligation, Series 2010A in May 2010 and experienced management, and prudent planning, the $157.0 million Wastewater Revenue Obligations, the District has been able to secure "AAA" credit Series 201 OC in November 2010 as "Build America ratings from Fitch Ratings, Moody's and Standard Bonds" (BABs)fixed rate debt. and Poor's. The District's long-range financing plan is designed to maintain these high ratings. Over the The American Recovery and Reinvestment Act of next 10 years, the District is projecting an additional 2009 created a new financing product, BABs, for the $2.7 billion in future treatment plant and collection municipal issuer. BABs are issued as higher interest system capital replacement, refurbishment, and taxable bonds; however, the U.S. Treasury provides rehabilitation improvements. In accordance with the a 35 percent subsidy on interest payments. The net District's long-temt debt fiscal policy, the District will cost, after accounting for the 35 percent subsidy confine long-term borrowing to capital improvements payment, frequently results in lower net costs to the that cannot be financed from current revenue. issuer, specifically in the maturity years beyond ten Before any new debt is issued, the impact of debt years. service payments on total annual fixed costs will be On March 1, 2013, the federal government analyzed. implemented certain automatic spending cuts known The District's cash Flow forecast does not require as the sequester. As a result of the sequester, any new money debt issuances over the next ten federal subsidy payments on BABs have been years as all capital improvements planned over this reduced annually from a high of 8.7 percent for the time period primarily consist of replacement, federal fiscal year ended September 30, 2013 to a refurbishment, and rehabilitation of existing projects low of 6.6 percent for the federal fiscal year ended which are to be funded through existing reserves September 30, 2018. and current sewer charges. Aggregate Debt Service Structures $100mil $90mil $80mil -,-,-, $70mi1 $60mi1 - - - - - - - - - - - - - - - $50mi1 - - - - - - - - - - - - - - - - - - - $40mi1 $30mi1 $20mi1 $10mil $Omil � O1i ry ry "r1 "rl ry 0 cs 0 m m m N, m `Ci m ,%i m $ v e v S 0 0 00 0 0 0 a 0 0 a 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N N N N N N N N N N N N N N N N N N N N N NO,Fused Rah •2016B CMs assumed amortized Doer 14 y mrs Section 9-Page 3 2018-19 & 2019-20 Budget Figure 2 Schedule of Future Certificates of PmBcioation Issues and CIP Cash Flo" (in millions) 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 202 25 2025-26 2026-27 2027-28 New COP Issues $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 CIP Outlays $174.5 $137.0 $202.6 $359.7 $381.5 $331.9 $309.7 $255.2 $250.8 $267.5 Section 9—Page 4 Debt Financing Program This page was intentionally left blank. Section 9— Page 5 2018-19 & 2019-20 Budget Total Certificates of Participation i Revenue Obligations and Notes Debt Service Requirements Principal and Interest Combined Fiscal 2009A 2010A 2010C 2011A 2012A 2012E Year Acquisition/ Build America Build America Refunding Refunding Refunding Of Construction Bonds Bonds (Partial 2000 (Remain (2000-A Payments Acq./Const. Acq./Const. &2003) 2003) &2000-B) 2018-19 $ 4,924,500 $ 2,897,639 $ 6,523,780 $ 3,348,350 $ 3,735,900 $23,107,400 2019-20 - 2,897,639 6,523,780 3,348,350 3,735,900 23,106,400 2020-21 - 2,897,639 6,523,780 3,348,350 3,735,900 18,535,650 2021-22 - 2,897,639 6,523,780 17,143,350 3,735,900 1,776,150 2022-23 - 2,897,639 6,523,780 17,093,600 3,735,900 1,821,150 2023-24 - 2,897,639 6,523,780 17,136,200 3,735,900 1,781,950 2024-25 - 2,897,639 6,523,780 17,088,450 3,735,900 1,818,050 2025-26 - 2,897,639 6,523,780 17,141,250 3,735,900 1,771,600 2026-27 - 2,897,639 6,523,780 - 3,735,900 - 2027-28 - 2,897,639 6,523,780 - 3,735,900 - 2028-29 - 2,897,639 6,523,780 - 3,735,900 - 2029-30 - 2,897,639 6,523,780 - 3,735,900 - 2030-31 - 2,897,639 12,258,780 - 32,725,900 - 2031-32 - 2,897,639 23,382,068 - 31,921,200 - 2032-33 - 2,897,639 23,476,472 - 44,304,000 - 2033-34 - 12,487,639 13,967,040 - - - 2034-35 - 12,696,056 13,897,232 - - - 2035-36 - 12,919,416 13,834,528 - - - 2036-37 - 13,151,453 13,758,096 - - - 2037-38 - 13,399,607 13,667,936 - - - 2038-39 - 13,658,823 13,574,048 - - - 2039-40 - 13,937,832 13,481,016 - - - 2040-41 - - 22,698,216 - - - 204142 - - 13,457,728 - - - 204243 - - 10,305,640 - - - 2043-44 - - 2,583,168 - - - Totals $ 4,924,500 $135,715,410 $282,627,331 $ 95,647,900 $153,781,900 $73,718,350 Section 9—Page 6 Debt Financing Program Total Certificates of Participation/Revenue Obligations and Notes Debt Service Requirements Principal and Interest Combined Fiscal 2014A 2015A 2016A 2016B 2017A Total Year Refunding Refunding Refunding Refunding Refunding Payment Of (Partial (Partial (Partial Notes (Remain Per Payments 200713) 2007B) 2009A) (201413) 2007A) Fiscal Year 2018-19 $ 10,963,750 $ 6,375,500 $ 6,977,300 $110,973,750 $ 3,318,500 $ 183,146,369 2019-20 10,966,500 6,375,500 11,392,300 - 3,318,500 71,664,869 2020-21 11,046,500 6,375,500 11,391,550 - 3,873,500 67,728,369 2021-22 11,049,000 6,375,500 11,389,800 - 3,290,750 64,181,869 2022-23 11,046,750 6,375,500 11,391,550 - 3,290,750 64,176,619 2023-24 11,044,000 6,375,500 11,396,050 - 3,290,750 64,181,769 2024-25 11,049,750 6,375,500 11,392,550 - 3,290,750 64,172,369 2025-26 11,052,500 6,375,500 11,390,800 - 3,290,750 64,179,719 2026-27 11,051,250 6,375,500 11,390,050 - 18,405,750 60,379,869 2027-28 - 21,615,500 11,394,550 - 18,365,000 64,532,369 2028-29 - 21,658,500 11,388,300 - 18,323,500 64,527,619 2029-30 - 20,776,250 11,391,050 - 19,204,500 64,529,119 203031 - 10,228,000 11,411,550 - - 69,521,869 2031-32 - 3,702,250 11,413,050 - - 73,316,207 203233 - 3,702,250 11,415,550 - - 85,795,911 2033-34 - 20,882,250 11,408,050 - - 58,744,979 203435 - 20,883,250 11,415,050 - - 58,891,588 203536 - 20,881,250 11,409,800 - - 59,044,994 203637 - 20,879,250 11,411,800 - - 59,200,599 203738 - - 11,411,000 - - 38,478,543 2038-39 - - 11,414,000 - - 38,646,871 2039-40 - - - - - 27,418,848 2040-41 - - - - - 22,698,216 2041-42 - - - - - 13,457,728 2042-43 - - - - - 10,305,640 2043-44 - - - - - 2,583,168 Totals $ 99,270,000 $222,588,250 $234,995,700 $110,973,750 $101,263,000 $1,515,506,091 Section 9—Page 7 2018-19 & 2019-20 Budget Certificates of Particioation/ Revenue Obligations and Notes Debt Service Requirements Annual Interest Payments Fiscal 2009A 2010A 2010C 2011A 2012A 2012B Year Acquisition/ Build America Build America Refunding Refunding Refunding Of Construction Bonds Bonds (Partial 2000 (Remain (2000-A Payments Acq./Const. Acq./Const. &2003) 2003) &2000-B) 2018-19 $ 234,500 $ 2,897,639 $ 6,523,780 $ 3,348,350 $ 3,735,900 $ 3,187,400 2019-20 - 2,897,639 6,523,780 3,348,350 3,735,900 2,191,400 2020-21 - 2,897,639 6,523,780 3,348,350 3,735,900 1,145,650 2021-22 - 2,897,639 6,523,780 3,348,350 3,735,900 276,150 2022-23 - 2,897,639 6,523,780 2,658,600 3,735,900 216,150 2023-24 - 2,897,639 6,523,780 2,081,200 3,735,900 151,950 2024-25 - 2,897,639 6,523,780 1,328,450 3,735,900 103,050 2025-26 - 2,897,639 6,523,780 816,250 3,735,900 51,600 2026-27 - 2,897,639 6,523,780 - 3,735,900 - 2027-28 - 2,897,639 6,523,780 - 3,735,900 - 2028-29 - 2,897,639 6,523,780 - 3,735,900 - 2029-30 - 2,897,639 6,523,780 - 3,735,900 - 2030-31 - 2,897,639 6,523,780 - 3,735,900 - 2031-32 - 2,897,639 6,287,068 - 2,866,200 - 2032-33 - 2,897,639 5,581,472 - 1,704,000 - 2033-34 - 2,897,639 4,837,040 - - - 2034-35 - 2,551,056 4,457,232 - - - 2035-36 - 2,184,416 4,064,528 - - - 2036-37 - 1,796,453 3,658,096 - - - 2037-38 - 1,384,607 3,237,936 - - - 2038-39 - 948,823 2,804,048 - - - 2039-40 - 487,832 2,356,016 - - - 2040-41 - - 1,893,216 - - - 2041-42 - - 1,027,728 - - - 204243 - - 510,640 - - - 2043-44 - - 103,168 - - - Totals $ 234,500 $ 55,715,410 $125,627,331 $20,277,900 $53,136,900 $ 7,323,350 Section 9—Page 8 Debt Financing Program Certificates of Participation/ Revenue Obligations and Notes Debt Service Requirements Annual Interest Payments Fiscal 2014A 2015A 2016A 2016B 2017A Total Year Refunding Refunding Refunding Refunding Refunding Interest Of (Partial (Partial (Partial Notes (Remain Per Payments 2007B) 200713) 2009A) (2014B) 2007A) Fiscal Year 2018-19 $ 3,918,750 $ 6,375,500 $ 6,977,300 $ 1,098,750 $ 3,318,500 $ 41,616,369 2019-20 3,566,500 6,375,500 6,977,300 - 3,318,500 38,934,869 2020-21 3,196,500 6,375,500 6,756,550 - 3,318,500 37,298,369 2021-22 2,804,000 6,375,500 6,524,800 - 3,290,750 35,776,869 2022-23 2,391,750 6,375,500 6,281,550 - 3,290,750 34,371,619 2023-24 1,959,000 6,375,500 6,026,050 - 3,290,750 33,041,769 2024-25 1,504,750 6,375,500 5,757,550 - 3,290,750 31,517,369 2025-26 1,027,500 6,375,500 5,475,800 - 3,290,750 30,194,719 2026-27 526,250 6,375,500 5,180,050 - 3,290,750 28,529,869 2027-28 - 6,375,500 4,869,550 - 2,535,000 26,937,369 2028-29 - 5,613,500 4,543,300 - 1,743,500 25,057,619 202930 - 4,811,250 4,201,050 - 914,500 23,084,119 203031 - 4,013,000 3,841,550 - - 21,011,869 2031-32 - 3,702,250 3,463,050 - - 19,216,207 203233 - 3,702,250 3,065,550 - - 16,950,911 203334 - 3,702,250 2,648,050 - - 14,084,979 203435 - 2,843,250 2,210,050 - - 12,061,588 203536 - 1,941,250 1,749,800 - - 9,939,994 203637 - 994,250 1,266,800 - - 7,715,599 203738 - - 861,000 - - 5,483,543 2038-39 - - 439,000 - - 4,191,871 2039-40 - - - - - 2,843,848 2040-41 - - - - - 1,893,216 2041-42 - - - - - 1,027,728 2042-43 - - - - - 510,640 2043-44 - - - - - 103,168 Totals $20,895,000 $95,078,250 $ 89,115,700 $ 1,098,750 $ 34,893,000 $503,396,091 Section 9—Page 9 2018-19 & 2019-20 Budget Certificates of Participation/ Revenue Obligations and Notes Debt Service Requirements Annual Principal Payments Fiscal 2009A 2010A 2010C 2011A 2012A 2012B Year Acquisition/ Build America Build America Refunding Refunding Refunding Of Construction Bonds Bonds (Partial 2000 (Remain (2000-A Payments Acq./Const. Acq./Const. &2003) 2003) &2000-B) 2018-19 $ 4,690,000 $ - $ - $ - $ - $19,920,000 2019-20 - - - - - 20,915,000 2020-21 - - - - - 17,390,000 2021-22 - - - 13,795,000 - 1,500,000 2022-23 - - - 14,435,000 - 1,605,000 2023-24 - - - 15,055,000 - 1,630,000 2024-25 - - - 15,760,000 - 1,715,000 202526 - - - 16,325,000 - 1,720,000 2026-27 - - - - - - 2027-28 - - - - - - 2028-29 - - - - - - 2029-30 - - - - - - 2030-31 - - 5,735,000 - 28,990,000 - 2031-32 - - 17,095,000 - 29,055,000 - 2032-33 - - 17,895,000 - 42,600,000 - 2033-34 - 9,590,000 9,130,000 - - - 2034-35 - 10,145,000 9,440,000 - - - 2035-36 - 10,735,000 9,770,000 - - - 2036-37 - 11,355,000 10,100,000 - - - 2037-38 - 12,015,000 10,430,000 - - - 2038-39 - 12,710,000 10,770,000 - - - 2039-40 - 13,450,000 11,125,000 - - - 2040-41 - - 20,805,000 - - - 2041-42 - - 12,430,000 - - - 204243 - - 9,795,000 - - - 2043-44 - - 2,480,000 - - - Totals $ 4,690,000 $80,000,000 $157,000,000 $ 75,370,000 $100,645,000 $66,395,000 Section 9—Page 10 Debt Financing Program Certificates of Participation/ Revenue Obligations and Notes Debt Service Requirements Annual Principal Payments Fiscal 2014A 2015A 2016A 2016B 2017A Total Year Refunding Refunding Refunding Refunding Refunding Principal Of (Partial (Partial (Partial Notes (Remain Per Payments 2007B) 2007B) 2009A) (2014B) 2007A) Fiscal Year 2018-19 $ 7,045,000 $ - $ - $109,875,000 $ - $ 141,530,000 2019-20 7,400,000 - 4,415,000 - - 32,730,000 2020-21 7,850,000 - 4,635,000 - 555,000 30,430,000 2021-22 8,245,000 - 4,865,000 - - 28,405,000 2022-23 8,655,000 - 5,110,000 - - 29,805,000 2023-24 9,085,000 - 5,370,000 - - 31,140,000 2024-25 9,545,000 - 5,635,000 - - 32,655,000 2025-26 10,025,000 - 5,915,000 - - 33,985,000 2026-27 10,525,000 - 6,210,000 - 15,115,000 31,850,000 2027-28 - 15,240,000 6,525,000 - 15,830,000 37,595,000 2028-29 - 16,045,000 6,845,000 - 16,580,000 39,470,000 2029-30 - 15,965,000 7,190,000 - 18,290,000 41,445,000 2030-31 - 6,215,000 7,570,000 - - 48,510,000 2031-32 - - 7,950,000 - - 54,100,000 2032-33 - - 8,350,000 - - 68,845,000 2033-34 - 17,180,000 8,760,000 - - 44,660,000 2034-35 - 18,040,000 9,205,000 - - 46,830,000 2035-36 - 18,940,000 9,660,000 - - 49,105,000 2036-37 - 19,885,000 10,145,000 - - 51,485,000 2037-38 - - 10,550,000 - - 32,995,000 2038-39 - - 10,975,000 - - 34,455,000 2039-40 - - - - - 24,575,000 2040,41 - - - - - 20,805,000 2041-42 - - - - - 12,430,000 2042-43 - - - - - 9,795,000 2043-44 - - - - - 2,480,000 Totals $78,375,000 $127,510,000 $145,880,000 $109,875,000 $ 66,370,000 $1,012,110,000 Section 9—Page 11 2018-19 & 2019-20 Budget This page was intentionally left blank. Section 9—Page 12 APPENDIX SECTION 10 Staffing Allocation Staffing by Department Total 636 FTE General Managers Office 14 FTE Operations& Human Resources Maintenance 27 FTE 288 FTE Administrative Sevices 100 FTE Environmental Engineering Services 116 FTE 91 FTE Staffing by Category Supervisory os% Technical Services 4.7% Professional Administrative 36.0% 8.5% Division Management 2.2% Engineering 3.8% Executive Management 1.1% Part Time 0.2% Operations& Maintenance 33.0% Section 10- Page 1 2018-19 & 2019-20 Budget Historical Staffing By Department 300 .............. 250 .......... ............................................ 200 ............ ............ ....... ..... ..... .................. ..................... u � 150 100 50 0 2015-16 2016-17 2017-18 201819 2019-20 Rscal Year ■General Marlag&s Office -Human Resources Administrative Services •Facilities Support Services" -Environmental Services -Engineering •Operations&Maintenance •The Facilities5uppurt5ervices Departmentwas eliminotedospartof the District's 2016-17reorganization. Total Historical Staffing 650 — — — — — — — — — — — — — — — — — — — — — — — - 640 635.00 636.00 636.00 630 627.00 624.00 620 610 2015-16 2016-17 2017-18 2018-19 2019-20 Fiscal Year Section 10- Page 2 Staffing Allocation Authorized Authorized Authorized Proposed Proposed Department and Division Name FTEs FTEs FTEs FTEs FTEs 2015-16 2016-17 2017-18 2018-19 2019-20 General Manager's Office General Management Administration 6.00 5.00 5.00 4.00 4.00 Board Sertices 4.00 5.00 5.00 5.00 5.00 Public Affairs 5.00 5.00 5.00 5.00 5.00 Department Subtotal' 15.00 15.00 15.00 14.00 14.00 Human Resources Department Human Resources Administration 16.00 16.00 16.00 16.00 16.00 Risk Management/Safety/Security 11.00 11.001 11.00 11.001 11.00 Department Subtotal 27.00 27.00 27.00 27.00 27.00 Administrative Services Department Administrative Services Administration 3.00 3.00 3.00 3.00 3.00 Financial Management 19.00 19.00 19.00 19.00 19.00 Contracts, Purchasing and Materials Management 32.00 32.00 32.00 32.00 32.00 Information Technology 44.00 45.00 45.00 46.00 46.00 Department Subtotal 98.00 99.00 99.00 100.00 100.00 Facilities Support Services Department Facilities Support Sermces Administration 4.00 - - - - Fleet Sertices 9.00 - - - - Facilities Engineering and Repair Services 5.00 - - - - NPDES Source Inspection 16.00 - - - - Odor and Corrosion Control 6.00 - - - - Collection Facilities Operations and Maintenance 23.00 Department Subtotal 63.00 Envrinmental Services Department Environmental Services Administration - 2.00 2.00 2.00 2.00 Resource Protection - 47.00 37.00 37.00 37.00 Laboratory, Monitoring and Compliance 42.00 52.00 52.00 52.00 Department Subtotal 91.00 91.00 91.00 91.00 Engineering Department Engineering Administration 2.00 2.00 2.00 2.00 2.00 Planning 15.00 15.00 15.00 14.00 14.00 Project Management Office 20.00 17.00 17.00 16.00 16.00 Civil and Mechanical Engineering 59.00 53.00 63.00 54.00 64.00 Electrical and Control Systems Engineering - 29.00 29.00 30.00 30.00 Environmental Compliance 31.00 Department Subtotal 127.00 116.00 116.00 116.00 116.00 Operations and Maintenance Department Operations and Maintenance Administration 2.00 3.00 3.00 3.00 3.00 Collection Facilities Operations and Maintenance - 26.00 26.00 26.00 26.00 Fleet Services - 8.00 8.00 8.00 8.00 Plant No. 1 Operations 69.00 62.00 61.00 62.00 62.00 Plant No. 2 Operations 54.00 50.00 51.00 50.00 50.00 Plant No. 1 Maintenance 82.00 85.00 62.00 61.00 61.00 Maintenance Reliability and Planning - - 28.00 28.00 28.00 Plant No. 2 Maintenance 46.00 45.00 48.00 50.00 50.00 Environmental Laboratory and Ocean Monitoring 41.00 - DepartnentSubtstal 294.00 279.00 287.00 288.00 288.00 Grand Total -All Departments' 624.00 627.00 635.00 636.00 636.00 Section 10- Page 3 2018-19 & 2019-20 Budget Authorized Authored Authorized Proposed! Proposed B FT FTEs FTB FTEs FTEs Division&Position 201&16 2016-17 2017-18 201&19 2019-20 General Manager's Office 110 General Management Administration General Manager 1.00 1.00 1.00 1.00 1.00 Assistant General Manager 1.00 1.00 1.00 1.00 1.00 Public Affairs Manager 1.00 - - - - Principal Staff Analyst - 1.00 1.00 1.00 1.00 Records Management Specialist 1.00 1.00 1.00 - - Senior StaffAnalysl 1.00 - - - - Secretaryto the General Manager 1.00 1.00 1 1.00 1.00 1 1.00 Total General Management Administration' 6.00 5.00 5.00 4.00 4.00 120 Board Services Clerk ofthe Board 1.00 1.00 1.00 1.00 1.00 Deputy Clerk of the Board 1.00 1.00 1.00 1.00 1.00 Program Assistant 2.00 2.00 2.00 2.00 2.00 Office Assistant 1.00 1.00 1.00 1.00 Total Board Services 4.00 5.00 5.00 5.00 5.00 140 Public Affairs Public Affairs Supervisor - 1.00 1.00 1.00 1.00 Principal Public Affairs Specialist 1.00 - - - - Senior Public Affairs Specialist 1.00 1.00 1.00 1.00 1.00 Public Affairs Specialist 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Graphics Designer - - - 1.00 1.00 Graphics Coordinator 1.00 1.00 1.00 Total Public Affairs 5.00 5.00 5.00 5.00 5.00 Total General Manager's Office 15.00 15.00 15.00 14.00 14.00 Human Resources Department 160 Human Resources Administration Director of Human Resources 1.00 1.00 1.00 1.00 1.00 HR and Risk Manager - - 1.00 1.00 1.00 Human Resources Manager 1.00 1.00 - - - Human Resources Supervisor 1.00 1.00 1.00 2.00 2.00 Principal Human Resources Analyst 3.00 3.00 3.00 2.00 2.00 Senior Human Resources Analyst 4.00 4.00 4.00 4.00 4.00 Human Resources Analyst 4.00 4.00 4.00 4.00 4.00 Human Resources Assistant 1.00 1.00 1.00 2.00 2.00 Program Assistant 1.00 1.00 1.00 Total Human Resources Administration 16.00 16.00 16.00 16.00 16.00 161 Risk Management/Safety/Security Safety&Health Supervisor 1.00 1.00 1.00 1.00 1.00 Principal Financial Analyst 1.00 1.00 1.00 1.00 1.00 Safety&Health Specialist 1.00 1.00 1.00 1.00 1.00 Security&Emergency Planning Specialist 1.00 1.00 1.00 1.00 1.00 Occupational Health Nurse 1.00 1.00 1.00 1.00 1.00 Senior Safety&Health Representative 2.00 2.00 2.00 2.00 2.00 Safety&Health Representative 3.00 3.00 3.00 3.00 &00 Administrative Assistant 1.00 t00 1.00 1.00 1.00 Total Risk Management/Safety/Security 11.00 11.00 11.00 11.00 11.00 Total Human Resources Department 27.00 27.00 27.00 27.00 27.00 Section 10- Page 4 Historical Staffing Detail Authorized Authorized Authorized Proposed Proposed FIEs F a FEs FTFs FES Division&Position M15-16 2016-17 2017-18 2018-19 2019-20 Administrative Services Department 210 Administrative Services Administration Director of Finance&Administrative Services/Treasurer 1.00 1.00 1.00 1.00 1.00 Principal Financial Analyst 1.00 1.00 1.00 - - Principal Staff Analyst - - - 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 1.00 Total Administrative Services Administration 3.00 3.00 3.00 3.00 3.00 220 Financial Management Controller 1.00 1.00 1.00 1.00 1.00 Accounting Supervisor 3.00 3.00 3.00 3.00 3.00 Principal Accountant 3.00 2.00 2.00 2.00 2.00 Senior Accountant 1.00 2.00 2.00 2.00 2.00 Senior Staff Analyst 1.00 1.00 1.00 1.00 1.00 Accountant 2.00 2.00 2.00 2.00 2.00 Staff Analyst 1.00 1.00 1.00 -Payroll Technician 2.00 2.00 2.00 2.00 2.00 Accounting Assistant ll 5.00 5.00 5.00 6.00 6.00 Total Financial Management 19.00 19.00 19.00 19.00 19.00 230 Contracts,Purchasing and Materials Management Contracts&Purchasing Manager 1.00 1.00 1.00 1.00 1.00 Contracts Supervisor 1.00 1.00 1.00 1.00 1.00 Principal Contracts Administrator 2.00 2.00 2.00 2.00 2.00 Purchasing Supervisor 1.00 1.00 1.00 1.00 1.00 Materials Control Supervisor 1.00 1.00 1.00 1.00 1.00 Senior Contracts Administrator 3.00 3.00 3.00 3.00 3.00 Principal Buyer 1.00 1.00 1.00 - - Contracts Administrator 3.00 3.00 3.00 3.00 3.00 Senior Buyer 1.00 1.00 1.00 3.00 3.00 Buyer 3.00 3.00 3.00 2.00 2.00 Contracts/Purchasing,Assistant 5.00 5.00 5.00 5.00 5.00 Lead Storekeeper 2.00 2.00 2.00 2.00 2.00 Senior Storekeeper 3.00 3.00 3.00 3.00 3.00 Storekeeper 5.00 5.00 5.00 5.00 5.00 Total Contracts,Purchasing and Materials Management 32.00 32.00 32.00 32.00 32.00 250 Information Technology Information Technology Systems and Operations Manager 1.00 1.00 1.00 1.00 1.00 Information Technology Manager 1.00 1.00 - - - Information Technology Supervisor 2.00 2.00 3.00 3.00 3.00 Principal Information Technology Analyst 6.00 6.00 6.00 7.00 7.00 Senior Information Technology Analyst 9.00 10.00 10.00 10.00 10.00 Information Technology Analyst 111 6.00 6.00 6.00 6.00 6.00 Records Management Specialist - - - 1.00 1.00 Data Management Technician II 7.00 7.00 7.00 7.00 7.00 Information Technology Analyst ll 3.00 3.00 3.00 3.00 3.00 Data Management Technician 1 4.00 4.00 4.00 4.00 4.00 Staff Malyst 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Information Technology Technician II 1.00 1.00 1.00 1.00 1.00 Information Technology Technician I 1.00 1.00 1.00 1.00 1.00 Program Assistant 1.00 1.00 1.00 Total Information Technology 1 44.00 1 45.00 1 45.00 46.00 46.00 Total Administrative Services Department 1 93.00 1 99.00 1 99.00 100.00 100.00 Section 10- Page 5 2018-19 & 2019-20 Budget Authored Authored Authorized Proposed Proposed FTEa FTFs FTEs FTFS FIE. Division&Position 2015-16 2016-17 2017-18 2018-19 2019-20 Facilities Support Services Department 310 Facilities Support Services Administration Director of Facilities Support 1.00 - - - - PrincipalFinancialAnalyst 1.00 - - - - SeniorStaffAnalyst 1.00 - - - - Executive Assistant 1.00 - Total Facilities Support SeMces Administration 4.00 - - 322 fleet Services Maintenance Supervisor 1.00 - - - - Lead Mechanic 1.00 - - - - Automotive/Heavy Equipment Technician 3.00 - - - - Mobile Crane Operator 2.00 - - - - Automotive/Heavy Equipment Assistant 1.00 - - - - Office Assistant 1.00 - Total Fleet Services 9.00 - 330 Facilities Engineering and Repair Services Engineering Manager 1.00 - - -Senior Engineer 1.00 - - - - Associate Engineer 2.00 - - - - Administrative Assistant 1.00 Total Facilities Engineering and Repair Services 5.00 341 NPDES Source Inspection Source Control Supervisor 1.00 - - - - Principal Environmental Specialist 1.00 - - - - LeadSourceControllnspector 1.00 - - - - Source Control Inspector ll 7.00 - - - - Source Control Inspector l 2.00 - - -Administrative Assistant 1.00 - - - - Environmental Technician 3.00 - Total NPDES Source Inspection 16.00 342 Odor and Corrosion Control Engineering Supervisor 1.00 - - - - Associate Engineer 1.00 - - - - SeniorEnvironmentalSpecialist 2.00 - - - - EngineeringAssistantl 1.00 - - - - Environmental Technician 1.00 - Total Odor and Corrosion Control 6.00 343 Collection Facilities Operations and Maintenance Maintenance Supervisor 2.00 - - - - Lead Mechanic 5.00 - - -Senior Mechanic 8.00 - - - - Mechanic i 8.00 - Total Collection Facilities Operations and Maintenance 23.00 - Total Facilities Support Services Department 1 63.00 Section 10- Page 6 Historical Staffing Detail Authorized Authorized Authorized Proposed Proposed FfEs FTEs FTEs FTEs FTEs Division&Position 2015-16 2016-17 2017-18 2018-19 2019-20 Envrionmental Services Department 610 Environmental Services Administration Director of Environmental Services - 1.00 1.00 1.00 1.00 Executive Assistant - 1.00 1.00 1.00 1.00 Total Enwonmenial Services Administration - 2.00 2.00 2.00 2.00 620 Resource Protection Engineering Manager - - 1.00 1.00 1.00 Environmental Compl&Reg Affairs Manager - 1.00 - - - Engineering Supervisor - 2.00 2.00 2.00 2.00 Environmental Supervisor - 1.00 - - - Senior Engineer - 1.00 1.00 2.00 2.00 Senior Regulatory Specialist - 1.00 - - - Engineer - 5.00 5.00 4.00 4.00 Source Control Supervisor - 1.00 1.00 1.00 1.00 Regulatory Specialist - 3.00 - - - Associate Engineer - 4.00 3.00 3.00 3.00 Principal Environmental Specialist - 3.50 3.00 3.00 3.00 Lead Source Control Inspector - 1.00 1.00 1.00 1.00 Senior Environmental Specialist - 4.50 1.00 1.00 1.00 Source Control Inspector II - 7.00 7.00 7.00 7.00 Source Control Inspector 1 - 2.00 2.00 2.00 2.00 Administrative Assistant - 2.00 2.00 2.00 2.00 Environmental Technician - 3.00 3.00 3.00 3.00 Program Assistant - 4.00 4.00 4.00 4.00 Office Assistant - 1.00 1.00 1.00 1.00 Total Resource Protection - 47.00 37.00 37.00 37.00 630 Laboratory,Monitoring and Compliance Environmental Lab&Ocean Monitoring Manager - 1.00 1.00 1.00 1.00 Environmental Supervisor - 1.00 4.00 4.00 4.00 Laboratory Supervisor - 2.00 - - - Senior Regulatory Specialist - - 1.00 1.00 1.00 Senior Scientist - 3.00 3.00 3.00 3.00 Regulatory Specialist - - 2.00 3.00 3.00 Scientist - 1.00 1.00 1.00 1.00 Associate Engineer - - 1.00 1.00 1.00 Principal Environmental Specialist - 2.00 8.50 8.00 8.00 Principal LaboretoryAnalyst - 6.00 - - - SeniorEnvironmentalSpecialist - 6.00 18.50 18.00 18.00 Boat Captain - 1.00 1.00 1.00 1.00 Senior Laboratory Analyst - 10.00 - - - Environmental Specialist - 2.00 7.00 7.00 7.00 Laboratory Analyst - 3.00 - - - Administrative Assistant - 1.00 1.00 1.00 1.00 Environmental Technician - - 3.00 3.00 3.00 Laboratory Assistant - 3.00 - - - Total Laboratory,Monitoring and Compliance 42.00 52.00 1 52.00 1 52.00 Total Environmental Services Department 91.00 91.00 1 91.00 1 91.00 Section 10- Page 7 2018-19 & 2019-20 Budget Authorized Authorized Authorized Proposed Proposed FTEs FMa FTEs FMa FTEs Division&Position 2015-16 2016-17 2017-18 2018-19 2019-20 Engineering Department 710 Engineering Administration Assistant General Manager - - - 1.00 1.00 Director of Engineering 1.00 1.00 1.00 - - Erecutive Assistant 1.00 1.00 1.00 1.00 1.00 Total Engineering Administration 2.00 2.00 2.00 2.00 2.00 740 Planning Engineering Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 1.00 2.00 2.00 2.00 2.00 Senior Engineer 3.00 3.00 3.00 3.00 3.00 Engineer 4.00 3.00 3.00 3.00 3.00 Principal Financial Analyst - 1.00 1.00 - - Principal StaffAnalyst 1.00 1.00 1.00 2.00 2.00 Associate Engineer 2.00 2.00 2.00 1.00 1.00 Engineering Associate 1.00 1.00 1.00 1.00 1.00 Senior Staff Analyst 1.00 - - - - Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Total Planning 15.00 15.00 15.00 14.00 14.00 750 Project ManagementOMce Engineering Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 1.00 - - 1.00 1.00 Capital Improvement Program Project Manager 7.00 8.00 9.00 9.00 9.00 Senior Engineer 1.00 2.00 1.00 1.00 1.00 Principal Project Controls Analyst 1.00 1.00 1.00 1.00 1.00 Engineer 1.00 - - - - Principal Staff Analyst 2.00 2.00 2.00 2.00 2.00 Cost Estimator 1.00 - - - - Planner/Scheduler 1.00 - - - - SenlorStaffAnalysl 1.00 - - - - Engineering Assistant II 1.00 1.00 1.00 - - Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Office Assistant 1.00 1.00 1.00 Total Project Management Dfice 20.00 17.00 17.00 16.00 16.00 760 Civil and Mechanical Engineering Engineering Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 4.00 5.00 5.00 4.00 4.00 Senlor Construction Inspection Supervisor 1.00 - - - - Senior Engineer 9.00 7.00 7.00 7.00 7.00 Construction Inspection Supervisor 1.00 2.00 2.00 2.00 2.00 Engineer 13.00 13.00 13.00 13.00 13.00 Senior Cost Estimator - - - 1.00 1.00 Senior Planner/Scheduler - - - 1.00 1.00 Associate Engineer 3.00 3.00 3.00 4.00 4.00 Cost Estimator - 1.00 1.00 - - Planner/Scheduler - 1.00 1.00 - - SeniorConsWction Inspector 7.00 5.00 5.00 5.00 5.00 Assistant Engineer 2.00 1.00 1.00 - - Engineering Associate 1.00 1.00 1.00 1.00 1.00 Senior Staff Analyst 1.00 2.00 2.00 2.00 2.00 Construction Inspector 9.00 5.00 5.00 6.00 6.00 Engineering Assistant ll 3.00 3.00 3.00 4.00 4.00 Staff Analyst 1.00 - - - - Administrarb.Assistant 2.00 2.00 2.00 2.00 2.00 Engineering Assistant 1 1.00 1.00 1.00 1.00 1.00 Total Civil and Mechanical Engineering 59.00 53.00 53.00 54.00 54.00 Section 10- Page 8 Historical Staffing Detail Authorized Authorized Authorized Proposed Roposed F1Es F1Es FiEs FiEs FIEs Division&Position 2015-16 2016-17 2017-18 2018-19 2019-20 770 Electrical and Control Systems Engineering Engineering Manager - 1.00 1.00 1.00 1.00 Engineering Supervisor - 2.00 2.00 2.00 2.00 Senior Construction trap Supv - 1.00 1.00 1.00 1.00 Senior Engineer - 6.00 6.00 6.00 6.00 Principal Info Tech Analyst - 4.00 4.00 4.00 4.00 Engineer - 4.00 4.00 4.00 4.00 Senior Info Tech Analyst - 3.00 3.00 3.00 3.00 Information Tech Analyst 111 - 1.00 1.00 1.00 1.00 Senior Construction Inspector - 2.00 2.00 3.00 3.00 Information Tech Analyst ll - 1.00 1.00 1.00 1.00 Construction Inspector - 4.00 4.00 3.00 3.00 Administrative Assistant 1.00 1.00 Total Electrical and Con"I Systems Engineering 29.00 29.00 30.00 30.00 790 Environmental Compliance Environmental Comp1&Reg Affairs Manager 1.00 - - - - Engineering Supervisor 2.00 - - -Environmental Supervisor 1.00 - - -Senior Scientist 1.00 - - - - Engineer 6.00 - - -Regulatory Specialist 3.00 - - - - Associate Engineer 4.00 - - - - Principal Environmental Specialist 2.50 - - - - SeniorEnvironmentalSpecialist 4.50 - - -Administrative Assistant 1.00 - - - - Program Assistant 4.00 - - - - Office Assistant 1.00 Total Environmental Compliance 31.00 Total Engineering Department 127.00 116.00 116.00 116.00 116.00 Operations and Maintenance Department 810 Operations and Maintenance Administration Director of Operations&Maintenance 1.00 1.00 1.00 1.00 1.00 Senior StaRAnalyst 1.00 2.00 1.00 1.00 1.00 Sta6Analyst 1.00 1.00 1.00 Total Operations and Maintenance Administration 2.00 3.00 3.00 3.00 3.00 820 Collection Facilities Operations and Maintenance Engineering Manager - 1.00 1.00 1.00 1.00 Maintenance Supervisor - 2.00 2.00 2.00 2.00 Lead Mechanic - 5.00 5.00 5.00 5.00 Administrative Assistant - 1.00 1.00 1.00 1.00 Senior Mechanic - 8.00 8.00 8.00 8.00 Mechanic - 8.00 8.00 8.00 8.00 Office Assistant 1.00 1.00 1.00 1.00 Total Collection Facilities Operations and Maintenance 26.00 26.00 26.00 26.00 822 Fleet Services Maintenance Supervisor - 1.00 1.00 1.00 1.00 Lead Mechanic - 1.00 1.00 1.00 1.00 Automotive/Heavy Equipment Technician - 3.00 3.00 3.00 3.00 Mobile Crane Operator - 2.00 2.00 2.00 2.00 Automotive/Heavy Equipment Assistant 1.00 1.00 1.00 1.00 Total Fleet Services 8.00 8.00 8.00 8.00 Section 10- Page 9 2018-19 & 2019-20 Budget Authorized Authorized Authorized Proposed Proposed FTEs FTEs FTEs FTEs FTEs Division&Position M15-16 201f+17 2017-18 2018-19 2019-20 830 Plant No.1 Operations Operations Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 2.00 1.00 1.00 1.00 1.00 Chief Plant Operator 1.00 1.00 1.00 1.00 1.00 Senior Engineer 4.00 1.00 1.00 1.00 1.00 Principal Information Technology Analyst 3.00 - - - - Engineer 3.00 2.00 2.00 1.00 1.00 Operations Supervisor 6.00 6.00 6.00 7.00 7.00 Principal Staff Analyst - - - 1.00 1.00 Senior Information Technology Analyst 3.00 - - - - Maintenance Supervisor 1.00 - - - - Scientist 1.00 1.00 1.00 1.00 1.00 Associate Engineer 1.00 2.00 2.00 2.00 2.00 Principal Environmental Specialist - - 1.00 1.00 1.00 Information Technology Analyst 111 1.00 - - - - Assistant Engineer 1.00 1.00 1.00 1.00 1.00 Senior Environmental Specialist 1.00 2.00 1.00 1.00 1.00 Information Technology Analyst ll 1.00 - - - - LeadPlantOperator 3.00 4.00 4.00 4.00 4.00 Lead Power Plant Operator 1.00 1.00 1.00 1.00 1.00 Power Plant Operator ll 4.00 4.00 4.00 4.00 4.00 Senior Plant Operator 14.00 15.00 15.00 14.00 14.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Plant Operator 14.00 16.00 15.00 16.00 16.00 Environmental Technician - 1.00 1.00 1.00 1.00 Control Center Technician 2.00 1 2.00 1 2.00 2.00 1 2.00 Total Plant No.1 Operations 69.00 62.00 61.00 62.00 62.00 840 Plant No.2 Operations Chief Plant Operator 1.00 1.00 1.00 1.00 1.00 Operations Supervisor 6.00 6.00 7.00 7.00 7.00 Lead Plant Operator 6.00 5.00 4.00 4.00 4.00 Lead Power Plant Operator - - 1.00 1.00 1.00 Power Plant Operator ll 4.00 4.00 4.00 4.00 4.00 Senior Plant Operator 15.00 14.00 14.00 14.00 14.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Plant Operator 20.00 18.00 19.00 18.00 18.00 Program Assistant 1.00 1.00 Total Plant No.2 Operations 54.00 50.00 51.00 50.00 50.00 Section 10-Page 10 Historical Staffing Detail Authorized Authored Authorized Reposed Reposed FTEs FTES FTEs FTEs FTB Division&Position 2015-16 2016-17 2017-18 2018-19 2019-20 870 Plant No.1 Maintenance Engineering Manager 1.00 - - - - Maintenance Manager - 1.00 1.00 1.00 1.00 Engineering Supervisor 1.00 1.00 - - - Maintenance Superintendent 1.00 1.00 1.00 1.00 1.00 Senior Engineer 2.00 3.00 - - - Engineer 3.00 4.00 - - - Maintenance Supervisor 6.00 7.00 6.00 6.00 6.00 Associate Engineer 1.00 2.00 - - - Maintenance Specialist 5.00 5.00 - - - Lead Electrical Technician 3.00 3.00 3.00 3.00 3.00 Lead Instrumentation Technician 1.00 1.00 1.00 1.00 1.00 Maintenance Planner/Scheduler 3.00 4.00 - - - Reliability Maintenance Technician 4.00 6.00 - - - Electrical Technician II 7.00 7.00 8.00 8.00 8.00 Instrumentation Technician II 6.00 5.00 6.00 6.00 6.00 Lead Mechanic 2.00 2.00 2.00 2.00 2.00 Machinist 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Senior Mechanic 17.00 17.00 18.00 17.00 17.00 Welder/Fabricator 3.00 3.00 3.00 3.00 3.00 Lead Facilities Worker 1.00 1.00 1.00 1.00 1.00 Electrical Technician 1 1.00 1.00 1.00 1.00 1.00 Instrumentation Technician 1 3.00 3.00 3.00 3.00 3.00 Facilities Worker/Builder 3.00 2.00 2.00 2.00 2.00 Facilities Worker/Painter 2.00 1.00 1.00 1.00 1.00 Mechanic 1.00 1.00 1.00 1.00 1.00 Maintenance Worker 3.00 1 2.00 1 2.00 2.00 1 2.00 Total Plant No.1 Maintenance 82.00 85.00 62.00 61.00 61.00 875 Maintenance Reliabilityand Planning Engineering Manager - - 1.00 1.00 1.00 Engineering Supervisor - - 1.00 1.00 1.00 Senior Engineer - - 3.00 3.00 3.00 Engineer - - 4.00 4.00 4.00 Maintenance Supervisor - - 1.00 1.00 1.00 Associate Engineer - - 2.00 2.00 2.00 Maintenance Specialist - - 11.00 11.00 11.00 Reliability Maintenance Technician 5.00 5.00 5.00 Total Maintenance Reliabilityand Planning 28.00 28.00 28.00 Section 10-Page 11 2018-19 & 2019-20 Budget Authorized Authorzed Authorized Proposed Reposed FTFs FTBe FTFs FTFs FTBe DIIsion B Position 201516 2016-17 2017-18 2018-19 2019-20 880 Platt No.2 Maintenance Maintenance Superintendent 1.00 1.00 1.00 1.00 1.00 Maintenance Supervisor 5.00 5.00 5.00 5.00 5.00 Lead Electrical Technician 2.00 2.00 2.00 2.00 2.00 Lead lnstmmentabon Technician 2.00 2.00 2.00 2.00 2.00 Electrical Technician II 6.00 6.00 7.00 7.00 7.00 Instrumentation Technician ll 7.00 6.00 8.00 8.00 8.00 Lead Mechanic 2.00 2.00 2.00 2.00 2.00 Administrative Assistant 1.00 - - 1.00 1.00 Senior Mechanic 15.00 14.00 14.00 15.00 15.00 Lead Facilities Worker - 1.00 1.00 1.00 1.00 Electrical Technician 1 1.00 1.00 1.00 1.00 1.00 Instrumentation Technician 1 1.00 - - - - Facilities Worker/Builder - 1.00 1.00 1.00 1.00 Facilities Worker/Painter - 1.00 1.00 1.00 1.00 Mechanic 1.00 1.00 1.00 1.00 1.00 Maintenance Worker 2.00 2.00 1 2.00 2.00 1 2.00 Total Plant No.2 Maintenance 46.00 45.00 48.00 50.00 50.00 890 Environmental Laboratory and Ocean Monitoring Emironmemal Lab&Ocean Monitoring Manager 1.00 - - - - Emironmemal Supervisor 1.00 - - - - Laboratory Supervisor 2.00 - - - - Senior Scientist 3.00 - - - - Scientist 1.00 - - - - Principal Environmental Specialist 2.00 - - - - Principal Laboratory Analyst 6.00 - - - - SeniorEnvironmentalSpecialist 6.00 - - - - Boat Captain 1.00 - - - - Senior LaboratoryAnalyst 10.00 - - - - Environmental Specialist 1.00 - - - - Laboratory Analyst 3.00 - - - - Administrative Assistant 1.00 - - - - LaboratoryAssistant 3.00 Total Enwonmental Laboratoryand Ocean Monitoring 41.00 Total Operations and Maintenance Department 294.00 279.00 287.00 288.00 288.00 Grand Total,All Departments' 624.00 1 627.00 635.00 1 636.00 1 636.00 'FTE totals shoe,exclude three Management Discretion positions that are authorized but used only on a tempomrybasis to facilitate Me replacement of key positions. FTE totals also exclude three companion positions to be used for extended leaves of absence. Total filled positions sill Trot exceed 06 FTEs at any point in time. Section 10- Page 12 Appropriations Limit Appropriations Limit In certain situations, proceeds of taxes Article XIIIB of the California State Constitution, may be spent on emergencies without more commonly referred to as the Gann Initiative or having to reduce the limit in future years. Gann Limit, was adopted by California voters in 1980. The Gann Limit placed limits on the amount Each agency also conducts a review of of proceeds of taxes that state and local its Appropriations Limit during its annual governmental agencies can receive and appropriate financial audit. (authorize to spend)each year. The law requires a governing body to annually The limit is different for each agency and the limit adopt, by resolution, an appropriations limit for the changes each year. The annual limit is based on the following year, along with a recorded vote amount of tax proceeds that were authorized to be regarding which of the annual adjustment factors spent in fiscal year 1978-79 in each agency, have been selected. The Orange County modified for changes in inflation and population in Sanitation District's appropriations limit and each subsequent year. annual adjustment factors are adopted at the same meeting as the budget. The adjustment Proposition 111 was passed by the State's voters in factors used for 2018-19 are the weighted average June 1990. This legislation made changes to the change in city population and the change in state manner in which the Appropriations Limit is to be per capita personal income. calculated: The following table shows the annual The annual adjustment factors for inflation appropriations limit for each of the last two years and population have been changed. and the appropriations limit and the Instead of using the lesser of California per appropriations, or proceeds from taxes, for capita income, or U.S. CPI, each agency 2018-19. The increase in the limit is based upon may choose either the growth in the population changes ranging from 0.06%to 1.13 California per capita income,or the growth for major cities within the District as provided by in assessed valuation due to new non- the State Department of Finance and a per capita residential construction within the district. personal income change of 3.67%as provided by For population, instead of using only the the State Department of Finance. population growth of an agency, each agency may choose to use the population Annual Appropriation Limits: growth within its county. These are both 2016-17 $101,768,666 annual elections. 2017-18 $105,998,787 The revised annual adjustment factors will 2018-19 $110,229,598 be applied to the 1986-87 limit for most proceeds of Taxes (Appropriations) agencies and each year in between in order to calculate the 1990-91 limit. The 2018-19 $17,665,729 actual limits for the intervening years, however, are not affected. As a result of the July 1998 consolidation of the District, a single limit is presented in contrast to Expenditures for"qualified capital outlay", individual limits shown in years prior to 1998. which are capital assets with a value of Population changes for representative cities have more than$100,000 and an expected life continued to be used in order to ensure of 10 years or more, are excluded from the consistency and to eliminate significant population limit. growth in parts of the County outside of the District's service area. This method results in a An agency which exceeds the limit in any lower limit than using the County-wide change. one year may choose to not give a tax refund if they fall below the limit in the next fiscal year. They then have two more years to refund any remaining excess or to obtain a successful override vote. Section 10-Page 13 2018-19 & 2019-20 Budget Budget Glossary Biosolids: Treated sewage sludge that meets the USEPA Accounting System: pollutant and pathogen requirements for land The set of records and procedures which are used to application as an agricultural soil conditioner or record, classify, and report information on the surface disposal. financial status and operations of an entity. BLAST: Accrual Basis Accounting: A District program that stands for Building Leaders, Under this accounting method, transactions are Abilities and Skills for Tomorrow. The BLAST recognized when they occur, regardless of the timing program is an employee designed leadership of related cash receipts and disbursements. development program that aims to provide training and opportunities for staff at levels of the organization Administrative and Clerical., to develop themselves as leaders An employee group that provides administrative and clerical support. Budget Document: The official financial spending and resource plan Ad Valorem Taxes: submitted by the General Manager, adopted by the The District's allocated share of the property taxes Board of Directors, and made available to the public assessed by the County representing a 2% annual and other interested parties. increase in assessed values of property taxes. Budget Message: Annual Budget., A written explanation by the General Manager of the A budget applicable to a single fiscal year. proposed budget. The budget message explains principal budget and policy issues and presents an Appropriation Ordinance: overview of the General Manager's budget The official legal document approved by the District's recommendations. Board of Directors authorizing officials to obligate and expend resources. Budget Calendar., The schedule of key dates which the District follows Appropriation: in preparing and adopting the budget. An authorization made by the District's Board of Directors which permits officials to incur obligations Capital Facilities Capacity Charge: against and to make expenditures of governmental A one-time, nondiscriminatory charge imposed at the resources. Operating appropriations are typically time a building or structure is newly connected to the granted for a one-year period. District's system, directly or indirectly, or an existing structure or category of use is expanded or increased. AQMD: This charge is to pay for District facilities in existence Air Quality Management District. See also SCAQMD. at the time the charge is imposed, or to pay for new facilities to be constructed in the future, that are of Assessed Valuation: benefit to the property being charged. This charge The estimated value of real and personal property does not apply to temporary facilities. used by the Orange County Assessor as the basis for levying property taxes. Capital Improvement Program: A plan over a period of five years setting forth each Balanced Budget: capital project, the amount to be expended in each A budget in which the sum of estimated net revenues year, and the method of financing capital and appropriated fund balances is equal to expenditures. appropriations. Capital Outlay. Biennial Budget., Cash outlays which result in the acquisition of or A budget applicable to two individual fiscal years. additions to capital assets. Examples include land, buildings, machinery, equipment, and other improvements. Section 10-Page 14 Budget Glossary Capital Assets: Decision Package: Assets of significant value which have a useful life of A standardized format whereby departments may several years. Examples are land, buildings, other request budgetary consideration for new programs, improvements, machinery, and equipment. positions, capital equipment, and position reclassification. Cash Basis Accounting: A basis of accounting under which transactions are Deficit., recognized only when cash is received or disbursed. The excess of an entity's liabilities over its assets. CCTV..1 Engineers: Closed-circuit television(CCTV),also known as video A professional engineers/employee group. surveillance, is technology often used by the OCSD to inspect and document the condition of Enterprise Fund: underground sewer lines. In governmental accounting, a fund that provides goods or services to the public for a fee that makes CEQA: the entity self-supporting. California Environmental Quality Act, is a statute that requires state and local agencies to identify the Executive Manager., significant environmental impacts of their actions and The group of employees which head each to avoid or mitigate those impacts, if feasible. department. Certificates of Participation(COPs): Expenditures/Expenses: A type of debt financing in which certificates are Where accounts are kept on the accrual basis of issued which represent an investor's participation in accounting, expenses are recognized when goods the stream of lease payments paid by the issuer. are received or services rendered. Where accounts COPS are secured by the lease payments. Voter are kept on a cash basis, expenditures are approval is not required prior to issuance. recognized only when the cash payments are made. Comprehensive Annual Financial Report(CAFR): FEMA: The official financial report of a government. It Federal Emergency Management Agency. This includes an audit opinion as well as basic financial agency provides federal grant monies for disaster statements and supporting schedules necessary to relief. demonstrate compliance with legal and contractual Fiscal Year., requirements of the District. A 12-month period to which the annual operating budget applies and at the end of which a government Contingency: determines its financial position and results of its A budgetary reserve set aside for emergencies or operations. The District's fiscal year runs from July 1 unforeseen expenditures not otherwise budgeted. -June 30. Contingent Liabilities: Five-Year Financial Forecast: Items which may become liabilities of the District but Estimates of future revenues and expenditures to are undetermined at a given date, such as pending help predict the future financial condition of the law suits,unsettled disputed claims,unfilled purchase community. orders, and uncompleted contracts. Contractual Services: FLSA: Personal services provided to the District from the The Fair Labor Standards Act sets minimum wage, private sector or other public agencies. overtime pay, equal pay, and Child Labor Standards to private and public sector employees. Enforcement CRWQCB: of the FLSA is assigned to the Department of Labor California Regional Water Quality Control Board. (DOL),Wage and Hour Division. Debt Service: Payment of interest and repayment of principal to holders of the District's debt instruments. Section 10-Page 15 2018-19 & 2019-20 Budget Fats, Oils, & Grease(FOG) Control Program: practices identified as contributing to improved Educational and regulatory efforts designed to government management by the Government achieve reductions in the quantity of fats, oils and Finance Officers Association of the United States and grease that is found in the wastewater that is Canada. discharged into the District's sewerage system. GFOA's Distinguished Budget Presentation Full-Time Equivalents(FTE): Award Program: The amount of time a regular, full-time employee The only national awards program in governmental normally works in a year. For example, a full-time budgeting. It represents a significant employee (1 FTE) is budgeted to work 2,080 hours accomplishment in meeting the highest principles of per year, while a .5 FTE is budgeted to work 1,040 governmental budgeting and satisfying nationally hours per year. recognized guidelines for effective budget presentation. Fund., An independent fiscal and accounting entity with a Groundwater Replenishment System(GWRS): self-balancing set of accounts recording cash and/or A joint project by the Orange County Water District other resources together with all related liabilities, (OCWD) and the District, the GWRS reclaims up to obligations, reserves, and equities. 100 million gallons a day of the District's secondary effluent. GWRS is the world's largest water Fund Accounting: purification system for indirect potable reuse. The System used by nonprofit organizations, particularly system takes highly treated wastewater that would governments. Since there is no profit motive, have previously been discharged into the Pacific accountability is measured instead of profitability. Ocean and purifies it using a three-step advanced The main purpose is stewardship of financial treatment process consisting of microfiltration, resources received and expended in compliance with reverse osmosis and ultraviolet light with hydrogen legal requirements. peroxide. The process produces high-quality water that meets or exceeds all state and federal drinking Fund Equity. water standards. The excess of an entity's assets over liabilities. Improvements: General Obligation Bonds: Buildings, structures, or attachments to land such as Bonds for which the full faith and credit of the insuring sidewalks, trees, drives, tunnels, drains and sewers. government are pledged for payment. Interest: Ad valorem property taxes are pledged to pay the Revenue derived from the investment of idle cash bonds. A two-thirds voter approval is required prior to and/or reserves. bond issuance. Intergovernmental Services: Generally Accepted Accounting Principles G Genera. Purchases from other governments of those Uniform standards for financial accounting and specialized services typically performed by local governments. reporting. They govern the form and content of the basic financial statements of an entity. Intergovernmental Revenue: Revenue received from other governmental agencies Government Finance Officers Association and municipalities. (GFOA): A nonprofit, professional association, serving over IRWD: 18,000 government finance professionals through the Irvine Ranch Water District is a California Special United States and Canada. District formed in 1961 and incorporated under the California water cede. IRWD provides potable water, GFOA's Best Practices and Advisories: sewer service and reclaimed(or recycled)water to its A listing of the Accounting, Auditing, and Financial customers in Irvine and portions of Costa Mesa, Lake Reporting, Treasury and Investment Management, Forest, Newport Beach, Orange, Tustin and Budgeting and Fiscal Policy, Debt Management, unincorporated areas of Orange County. Retirement and Benefits Administration, and Economic Development and Capital Planning Section 10-Page 16 Budget Glossary Levy: Other Revenues: (Verb) To impose taxes, special assessments, or Revenues from sources, other than those specifically service charges for the support of governmental identified, that are immaterial in amount and do not activities. (Noun)The total amount of taxes, special justify reporting as separate line items. assessments, or service charges imposed by a government levying property taxes. Other Charges: Expenditures that do not fit in other categories, are Long-Term Debt or Long-Term Liabilities: immaterial in amount, and do not justify reporting as Debt borrowed from a source outside the District with separate line items. a maturity of more than one year after the date of issuance. Performance Measure: Represents the objectives of each department along Maintenance Employees: with a target date for achieving the objective. An employee group of the District. Performance Results: Manager Employees: A summary of major accomplishments and objectives The group of employees who assume management that were met during the fiscal year. responsibilities for operating divisions. Permits: MGD: Revenues earned by the issuance of permits levied in Million Gallons per Day is a measurement of water or accordance with the benefits conferred by the permit. wastewater flow. Personnel: NPDES(National Pollution Discharge Elimination Salaries and benefits paid to the District's employees. System): Included are items such as special duty pay, Permit system established by the U.S. Environmental insurance, and retirement. Protection Agency to regulate discharge of treated sewage, storm water, and urban mnoff. Personnel Benefits: Those benefits paid by the District as conditions of Object. employment. Examples include insurance and An expenditure classification which refers to the type retirement benefits. of item purchased or the service obtained. Examples include personnel,supplies,or contract services. Professional Employees: An employee group consisting of technical experts, OCWD: analysts, and planners. The Orange County Water District (OCWD) is a California special district that manages the Program: groundwater basin beneath central and northern Organizational units directed to attain specific Orange County, California. purposes or objectives. DES: Reserve: State Office of Emergency Services. This agency A term used to indicate that a portion of fund equity is provides state grant monies for disaster relief. restricted for a specific purpose. Operating Engineers: Resources: An employee group of the District. Total dollars available for appropriations including estimated revenues and beginning fund equity. Operating Budget., The operating budget is the primary means by which Revenue Bonds: most of the financing of acquisition, spending, and Bonds issued pledging future revenues such as service delivery activities of a government are sewer charges to cover debt payments. A majority controlled. voter approval is required prior to bond issuance. Section 10-Page 17 2018-19 & 2019-20 Budget Revenue Estimate: District's high level of service standards. A formal estimate of how much revenue will be earned from a specific revenue source for some Strategic Plan: future period, typically a fiscal year. A planning effort to define the District's goals, responsibilities, and requirements over a specified Revenue: future period. Key factors used in the planning effort Income received by the District to support wastewater include estimates for population growth, new treatment services. This income may be in the form construction, the volume of wastewater delivered to of property taxes, fees, user charges, grants, and the plants, and viable water conservation and interest. reclamation programs. Risk Register: Supervisory Employees: The Risk Register is a compilation of the various risks An employee group whose members have facing the District, as seen by the District's responsibility for directing the work of line employees. management team. Supplemental Appropriation: Service Charges: An appropriation approved by the Directors after the Charges for specific services rendered. initial budget is adopted. Service Description: Supplies: A description of the services or functions provided by An expenditure classification for articles and each department or division. commodities purchased for consumption or resale. Examples include office and operating supplies,fuel, SCADA (Supervisory Control And Data power, water, gas inventory, or small tools and Acquisition): equipment. A system for remote monitoring and control that operates with coded signals over communication SWRCB: channels. The California State Water Resources Control Board (SWRCB) is one of six branches of the California SCAQMD: Environmental Protection Agency. The South Coast Air Quality Management District, also using the acronym SCAQMD,formed in 1976, is Taxes: the air pollution agency responsible for regulating Compulsory charges levied by a government for the stationary sources of air pollution in the South Coast purpose of financing services performed for the Air Basin, in Southern California. common benefit. Secondary Treatment: Technical Services: A treatment process for wastewater (or sewage) to Support services to the District's wastewater achieve a certain degree of effluent quality by using a management program through environmental sewage treatment plant with physical phase sampling, analysis and research, source control of separation to remove settleable solids and a industrial users, administration of compliance biological process to remove dissolved and programs to meet federal, state and local suspended organic compounds. environmental standards; provides leadership and influence in the development and implementation of Significant Changes: environmental policies, laws, and regulations. This section provides an overview of the changes adopted in the budget. Additionally, the significant impacts of budgetary changes are outlined (Budget Impact) along with dollar amounts (Increase/ Decrease). Strategic Goals: District-wide goals that demonstrate the District's long-term commitment to excellence and that establish the framework necessary to maintain the Section 10-Page 18 Miscellaneous Statistics General Information Year of Formation................................................1948 Miles of Sewers..................................................396 miles Form of Government............County Sanitation District On-Plant Pump Station............................................2 Authority.....................................Section 4700 at.seq. Off-Plant Pump Stations................................................15 -.................................California Health&Safety Code Operating Authority...............RWOCB/NPDES Permit No. Service Area...........................................479 sq. miles ............................................................CA0110604 Service Population...............Approximately 2.6 million ..........................Statewide WDR Order No.2006-0003 2017-18 Assessed Value........................$416.3 billion Authorized Staff(Full-Time Equivalent)..................636.00 Treatment Information Daily Influent Flow to Total Primary 2016-17 Influent BOD: Capacity Comparison(in MGD) Plant No. 1.........................312 milligrams per liter Plant No. 2.........................344 milligrams per liter ,In gee 2016-17 Influent Suspended Solids: Plant No. 1.........................362 milligrams per liter ae lea tea tag Plant No. 2........... 430 milligrams per liter PW too I 2016-17 Effluent BOD. 11 milligrams per liter 0 2016-17 Effluent Suspended Solids....5 milligrams per liter Plano PIam2 TOUI 2016-17 Biosolids Produced&Reused ..289,336 wet tons 02017-18 EsUrneed Influent OCapacity-Primary Treatment Primary Treatment Capacity(includes standby): 2017-18 Estimated Average Daily Influent: Plant No. 1 .......................................208 MGD Plant No. 1............................................. 120 MGD Plant No. 2.......................................168 MGD Plant No. 2...............................................65 MGD TOTAL..............................376 MGD TOTAL....................................185 MGD Secondary Treatment Capacity: 2017-18 Estimated Electricity Generated: Plant No. 1 .......................................182 MGD Plant No. 1...................................44,121,508 kwh Plant No. 2..................................... 150 MGD Plant No. 2.................................. 49,677,613 kwh TOTAL..............................332 MGD TOTAL..........................9:i.799.121 kwh Legend MGD—million gallons per day kwh—kilowatts per hour Financial Information 2016-17 2017-18 2018-19 2019-20 Actual Projected Proposed Proposed Fees and Charges: One-Time 3-Bedroom Residence Connection $3,710.00 $3,855.00 $4,228.00 $4,601.00 Average Annual Single-Family Residence Fee $327 $331 $335 $339 Local SRF Fee $108 $108 $108 $108 District's Avg.Share of Ad Valorem Property Tax 1.61% 1.60% 1.60% 1.60% Cost to Collect,Treat,&Dispose of One Million Gallons $2,054.56 $2,124.91 $2,412.95 $2,398.45 Summary of COP Issues: April 2009A New Money $ 4,690,000 August 2014A Refunding 78,375,000 May 2010A New Money 80,000,000 February 2015A Refunding 127,510,000 November 2010C New Money 157,000,000 March 2016A Refunding 145,880,000 September 2011A Refunding 75,370,000 November 2016B Refunding 109,875.000 February 2012A Refunding 100,645,000 February 2017A Refunding 66,370,000 August 2012B Refunding 66,395,000 Total Outstanding COP Balance 7/1118 $1,012,110,000 Section 10-Page 19 2018-19 & 2019-20 Budget ORANGE COUNTY SANITATION DISTRICT Estimated Population Served by the Orange County Sanitation District Population as of January 1, 2018 Anaheim 357,084 Brea 44,890 Buena Park 83,995 Costa Mesa 115,296 Cypress 49,978 Fountain Valley 56,920 Fullerton 144,214 Garden Grove 176,896 Huntington Beach 202,648 IMne 276,176 La Habra 62,850 La Palma 15,948 Los Alamitos 11,863 Newport Beach 87,182 Orange 141,952 Placentia 52,755 Santa Ana 338,247 Seal Beach 25,984 Stanton 39,470 Tustin 82,344 Villa Park 5,951 Westminster 94,476 Yorba Linda 69,121 Subtotal Cities n) 2,536,240 Estimated Population Served in Unincorporated Areas (21 73,127 2,609,367 Data Source: (1) Demographic Research Unit, State of California Department of Finance (2)Center for Demographic Research, California State University, Fullerton. Section 10-Page 20 Index Index Accounting System and Budgetary Control...................................................................................Section 3, Page 25 AdministrativeOfficials..............................................................................................................................................vi Administrative Services Administration..................................................................................Section 6, Pages 21-24 Appropriations Limit.....................................................................................................................Section 10, Page 13 Background Information and Description of Services...................................................................Section 2, Page 30 BoardCommittees.....................................................................................................................................................iv Boardof Directors......................................................................................................................................................iii Board Services Section 6, Pages 5-8 Budget Assumptions...............................................................................................................Section 3, Pages 21-23 Budget Glossary...................................................................................................................Section 10, Pages 14-18 Budget Resources......................................................................................................................Section 4. Page 8-13 Business Plan.........................................................................................................................Section 2, Pages 15-27 Capital Equipment Budget Detail....................................................................................Section 8, Pages 96-97, 100 Capital Equipment Budget Summary..........................................................................Section 8, Pages 94-95, 98-99 Capital Improvement Expenditure Graphs................................................................................Section 8, Pages 5, 7 Capital Improvement Program- Budget Summary Section 8, Pages 4, 6 Capital Improvement Program-Overview...................................................................................Section 8, Page 1-2 Capital Improvement Program- Project Detail Sheets...........................................................Section 8, Pages 12-85 Capital Improvement Program- Project Summary by CIP Driver..........................................Section 8, Pages 90-93 Capital Improvement Program-Summary by Project Status.................................................Section 8, Pages 86-89 Capital Improvement Program-Summary of Capital Requirements.......................................Section 8, Pages 8-11 Civil & Mechanical Engineering..............................................................................................Section 6, Pages 61-64 Collection Facilities Operations&Maintenance.....................................................................Section 6, Pages 73-77 Consolidated Cash Flow Projections Section 4, Pages 16-17 Contracts, Purchasing and Materials Management Section 6, Pages 29-32 Debt Financing Program.............................................................................................................Section 9, Pages 1-4 Debt Service Requirements Schedule, Interest...........................................................................Section 9, Page 8-9 Debt Service Requirements Schedule, Principal......................................................................Section 9, Page 10-11 Debt Service Requirements Schedule, Principal & Interest.........................................................Section 9, Page 6-7 District Funding Sources by Category...... ................................................................................Section 4, Pages 2, 6 District Funding Uses by Category Section 4, Pages 3, 7 District's Organizational Chart v Electrical &Control Systems Engineering..............................................................................Section 6, Pages 65-68 Engineering Administration.....................................................................................................Section 6, Pages 49-52 Environmental Services Administration..................................................................................Section 6, Pages 37-40 Executive Summary......................................................................................................................Section 1, Page 1-4 Financial Management ..........................................................................................................Section 6, Pages 25-28 Financial Overview&Budgetary Issues...................................................................................Section 2, Pages 1-13 FiscalPolicy................................................................................................................................Section 3, Pages 1-8 Fleet Services Section 6, Pages 77-80 Fund Structure Diagram................................................................................................................Section 3, Page 26 GFOA Best Practices and Advisories.......................................................................................Section 3, Pages 9-17 General Liability and Property Self-Insurance Program..................................................................Section 7, Page 3 General Management Administration.........................................................................................Section 6, Pages 1-4 Section 10-Page 21 2018-19 & 2019-20 Budget Index (continued) General Manager's Budget Message vii-viii Historical Staffing Chart.................................................................................................................Section 10, Page 2 Historical Staffing Detail (by Department by Position)..............................................................Section 10, Page 4-12 Historical Staffing Summary(by Department)...............................................................................Section 10, Page 3 Human Resources Administration..........................................................................................Section 6, Pages 13-16 Information Technology..........................................................................................................Section 6, Pages 33-36 Laboratory, Monitoring and Compliance.................................................................................Section 6, Pages 45-48 Levels of Service Target Levels.............................................................................................Section 2, Pages 26-27 Long-Tenn Planning Table............................................................................................................Section 2, Page 29 Maintenance-Plant No. 1 Section 6, Page 89-92 Maintenance-Plant No.2.....................................................................................................Section 6, Page 97-100 Maintenance Reliability and Planning.......................................................................................Section 6, Page 93-96 Miscellaneous Statistics ..............................................................................................................Section 10, Page 19 Mission.Vision and Core Values...............................................................................................................................ix Notes to Operations Summary.................................................................................................Section 5, Pages 8-10 Operations- Plant No. 1 .........................................................................................................Section 6, Pages 81-84 Operations- Plant No. 2.........................................................................................................Section 6, Pages 85-88 Operations Summary-Allocation to Individual Revenue Areas Section 5, Page 5 Operations Summary-Comparisons by Department.....................................................................Section 5, Page 3 Operations Summary- Expense by Category.................................................................................Section 5, Page 4 Operations Summary- Expense by Line Item............................................................................Section 5, Pages 6-7 Operations Summary- Budget Overview...................................................................................Section 5, Pages 1-2 Operations&Maintenance Administration.............................................................................Section 6, Pages 69-72 Orange County at a Glance...........................................................................................................Section 2, Page 31 Overview of the Budget Process............................................................................................Section 3, Pages 19-20 Planning..................................................................................................................................Section 6, Pages 53-56 Population Information, Service Area Section 10, Page 20 Project Management Office ...................................................................................................Section 6, Pages 57-60 Projected Reserves..................................................................................................................Section 4, Page 14-15 PublicAffairs.............................................................................................................................Section 6, Pages 9-12 Reader's Guide to the Budget..................................................................................................................................i-ii Resource Protection...............................................................................................................Section 6, Pages 41-44 Revenue Sources Section 3, Pages 27-29 Risk ManagementiSafety/Security Section 6, Pages 17-20 Self-Insurance Program-Overview................................................................................................Section 7, Page 1 Staffing by Category Chart............................................................................................................Section 10, Page 1 Staffing by Department Chart........................................................................................................Section 10, Page 1 Strategic Goal Objectives Table....................................................................................................Section 2, Page 28 Summary of Outstanding Certificates of Participation.....................................................................Section 9, Page 1 Total of Self-Insurance Program......................................................................................................Section 7, Page 2 Treatment Process Diagram............................................................................................................Section 8, Page 3 Where the Money Comes From Section 4, Pages 1, 5 Where the Money Goes.............................................................................................................Section 4, Pages 1, 5 Workers' Compensation Self-Insurance Program...........................................................................Section 7, Page 4 Section 10-Page 22 INSIDE OF BACK COVER i Orange County Sanitation District 10844 Ellis Avenue Fountain Valley Calilfornia,92708-7018 ��- 714.962.2411 www.ocsd.com .+ OW018