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HomeMy WebLinkAbout04-11-2018 Special Board Meeting Agenda Packet 04/11/2018 OCSD SPECIAL Meeting of Board of Directors Page 1 of 2 UBUDGET WORKSHOP UUUAGENDA UUCALL TO ORDER: UUUROLL CALL:UU Clerk of the Board UPUBLIC COMMENTS:U If you wish to speak, please complete a Speaker’s Form (located at the table outside of the Board Room) and give it to the Clerk of the Board. Speakers are requested to limit comments to three minutes. UUWELCOME & OPENING REMARKS: Board Chairman Gregory C. Sebourn General Manager James D. Herberg UUBUDGET INTRODUCTION: 1. FY 2018-19 AND FY 2019-20 BUDGET WORKSHOP (Lorenzo Tyner) UDEPARTMENT/DIRECTOR BUDGET REVIEW: Finance & Administrative Services…………………………………………. Lorenzo Tyner General Manager’s Office…………………………………………………… Bob Ghirelli Human Resources…………………………………………………………… Celia Chandler Environmental Services……………………………………………………… Jim Colston Operations & Maintenance………………………………………………….. Ed Torres Engineering…………………………………………………………………… Rob Thompson UQUESTIONS: UUUADJOURNMENTUUUU: Adjourn the Special Board of Directors meeting until the next Regular Board of Directors Meeting on April 25, 2018 at 6:00 p.m. Orange County Sanitation District SPECIAL Meeting of the BOARD OF DIRECTORS Wednesday, April 11, 2018 5:30 P.M. Board Room 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 04/11/2018 OCSD SPECIAL Meeting of Board of Directors Page 2 of 2 UUAccommodations for the DisabledUUU: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board’s office at (714) 593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. UUUAgenda PostingUUU: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted outside the main gate of the Sanitation District’s Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board. UUUNOTICE TO DIRECTORSUUU: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Kelly A. Lore, MMC Clerk of the Board (714) 593-7433 UUUklore@ocsd.comUUU For any questions on the agenda, Committee members may contact staff at: General Manager Jim Herberg (714) 593-7300 24T24TU24TUUjherberg@ocsd.comUUU24T24T Assistant General Manager Bob Ghirelli (714) 593-7400 24T24TU24TUUrghirelli@ocsd.comUUU24T24T Assistant General Manager Rob Thompson (714) 593-7310 UUUrthompson@ocsd.com Director of Environmental Compliance Jim Colston (714) 593-7450 U24T24TUUjcolston@ocsd.comUU24T24T Director of Finance and Administrative Services Lorenzo Tyner (714) 593-7550 Ultyner@ocsd.comU Director of Human Resources Director of Operations & Maintenance Celia Chandler Ed Torres (714) 593-7202 (714) 593-7080 24T24Tcchandler@ocsd.com24T etorres@ocsd.com Page 1 of 2 BOARD OF DIRECTORS Meeting Date -- To Bd. of Dir. 04/11/18 AGENDA REPORT Item Number -- Item Number 1 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: FY 2018-19 AND FY 2019-20 BUDGET WORKSHOP GENERAL MANAGER'S RECOMMENDATION Information Only. BACKGROUND Annually, during each month of the budget development process, Orange County Sanitation District (Sanitatiion District) staff provides comprehensive presentations on the major budget areas to the Administration Committee, starting in February and concluding in June. Two additional presentations are provided to the Operations Committee before the budget is submitted to the Board of Directors for approval. This year, the Board of Directors expressed interest in having an additional budget workshop to allow for additional discussion and information. After a general budget overview, each department head will give a brief presentation on their individual operation, followed by a presentation of the major line items for which they are responsible. To facilitate this discussion, the following materials are included: 1) Budget Assumptions Summary 2) Revenue Summary and Detail 3) Expenditure Summary and Detail 4) Department Summaries and Detail 5) Staffing Summary This workshop will focus on Revenues and Operating Expenditures. Given the size, complexity, and importance of the Sanitation District’s Capital Improvement Program (CIP), staff will provide a separate and more comprehensive CIP presentation to the Operations and Administration Committees in May. RELEVANT STANDARDS • Produce Ops and CIP budgets every two years with annual update PRIOR COMMITTEE/BOARD ACTIONS The FY 2017-18 biennium budget was adopted on June 28, 2017. Page 2 of 2 FINANCIAL CONSIDERATIONS The outlays for the FY 2018-19 and 2019-20 Budgets will be proposed for adoption at the June 27, 2018 Board meeting. These outlays will not exceed the amounts within the cash flow model included in the Proposed FY 2018-19 and 2019-20 Budgets. ATTACHMENTS The following attachment(s) are included in hard copy and may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package and attachments: • Budget Update Development – Budget Assumptions Summary • Budget Update Development – Revenue Summary and Detail • Budget Update Development – Expenditure Summary and Detail • Budget Update Development – Department Summaries and Detail • Budget Update Development – Staffing Summary FY 2018-19 and FY 2019-20 BUDGET ASSUMPTIONS Economic Assumptions • Inflation for Orange County in FY 2018-19 is projected to be 2.4 percent based on the 2018 projected percentage change in consumer price index obtained from Chapman University. A 2.4 percent inflation factor will also be used for FY 2019-20. Revenue Assumptions • Based upon the proposed Sewer Service Fee Rate Schedule to be approved by the Board in March 2018, the single-family residence (SFR) rate will increase by 1.2 percent to $335 in FY 2018-19. • Note that each $1 increase in the SFR rate generates approximately $900,000 per year. • The capital facilities capacity charge (CFCC) fee captures only those infrastructure costs that relate to additional capacity. The proposed CFCC fee to be approved by the Board in March 2018 will increase by 10 percent for FY 2018-19. Other infrastructure costs such as improved treatment, rehabilitation, refurbishment, and replacement, will be supported through user fees. • Given the Facilities Master Plan adopted in December 2017, a rate study was completed in December 2017 to ensure that the CFCC fee methodology remains equitable and to confirm that an appropriate share of system costs would be recovered from new development. • Revenues will be budgeted to reflect little growth in Equivalent Dwelling Unit (EDU) connections that have remained flat over the past five years. • Propose permit user rates for flow will increase by 4.1 percent, Biochemical Oxygen Demand (BOD) will increase by 0.5 percent and Total Suspended Solids (TSS) will increase by 2.9 percent for FY 2018-19 based upon the Rate Study completed in December 2017. • Annexation fees capture both the net current assets and the equivalent property tax allocations totaling $4,235 per acre. • Annexable property in the District’s service area sphere is minimal; consequently, no FY 2018-19 income from annexation fees is anticipated. • Property tax revenues are preliminarily estimated to increase by approximately five percent from FY 2017-18 to $98,349,000. A two percent annual increase in Assessed Value is authorized by the state constitution and is included in the increases noted above. The additional increase in assessed value is from authorized increases to market value when property is sold at a higher value. • Earnings on the investment of the District’s operating cash and reserves will be budgeted at 1.0 percent of the average cash and investment balance projected for the fiscal year. • No additional debt issuance is scheduled for FY 2018-19. FY 2018-19 and FY 2019-20 BUDGET ASSUMPTIONS Operating Assumptions • Operating expenses are expected to approximate the adopted FY 2017-18 budget of $154 million. • Average daily flows are projected at 190 mgd for FY 2018-19 and 191 MGD for FY 2019-20. The FY 2018-19 flow projection of 190 mgd reflects an increase of 3 mgd from the actual for the first 5 months of the current year and is 2 mgd above the final actual flow for FY 2016-17. Employee/Staffing Assumptions • Staffing level is expected to remain flat. No additional positions are anticipated. The total FY 2017-18 authorized staffing level is 635.00 FTEs, excluding Management Discretion positions. • Vacant positions as of 12/31/17 are budgeted at 50 percent of step 1 for the remainder of FY 2017-18 and at 100 percent of step 2 for FY 2018-19. • New positions will be projected at 100 percent of step 1 for FY 2018-19. • A 5.0 percent vacancy factor on authorized positions has been budgeted for FY 2018-19. The actual vacancy factor is currently running at 7.6 percent, but is on a downward trend due to the streamlined recruitment processes now in place. This vacancy factor accounts for time spent for recruitment and turnover. • The Memorandums of Understanding (MOUs) for the OCEA, the Local 501, and the Supervisor and Professional (SPMT) groups expire on June 30, 2019. Salary adjustments will be included in the budget for COLA based upon the current MOUs. • Retirement costs for employees enrolled in OCERS Plans G and H are estimated at a rate of 15.78 percent of the employee’s base salary for FY 2018-19, down from 15.83 percent in FY 2017-18. The rates for Plans G and H include the District’s pickup of 3.5 percent of employees’ required contributions. Employees enrolled in OCERS Plan B are estimated at a rate of 10.21 percent of the employee’s base salary for FY 2018-19, down from 10.30 percent in FY 2017-18. All employees hired on or after January 1, 2013 are enrolled in OCERS Plan U and are estimated at a rate of 9.27 percent for FY 2018-19, up from 9.25 percent in FY 2017-18. Interns are not enrolled in OCERS so their retirement benefits are calculated at 6.2 percent (FICA rate). • Other employee benefits and insurances will be budgeted to increase in FY 2018-19 and FY 2019-20 by moderate but yet to be determined amounts. FY 2018-19 and FY 2019-20 BUDGET ASSUMPTIONS Materials, Supplies, & Services Assumptions • The proposed operating budget will continue to reflect an emphasis on safety, security, and maintenance of plant assets and infrastructure. • An amount equal to half of one percent of the Operating materials and services budget will be a contingency for prior year re-appropriations. Since the current year’s budget lapses on June 30, a contingency is needed in the succeeding budget year for goods or services ordered at the end of one budget year but not delivered until the following year. • An amount equal to 0.85 percent of the Operating materials and services budget will be the General Manager’s contingency budget. These funds will be allocated to appropriate line items during the year after requests and justifications for unanticipated needs are approved by the General Manager. • Resource needs for strategic initiatives will be included in the budget. Capital Improvement Program Assumptions • The FY 2018-19 and FY 2019-20 cash flow budget, based on the most current Validated Capital Improvement Program (CIP), is the target. • The baseline CIP cash flow for FY 2018-19 is $169 million and for FY 2019-20 is $193 million. • Continual evaluation of the CIP by the Asset Management Team may result in deferral or reduction of some projects and a resultant increase in O&M repair costs for materials and services, if the net cash flow impact is a decrease. • The FY 2018-19 and FY 2019-20 CIP budget will only increase for critical projects which were not previously identified in the Strategic Plan Update. • For the first five months of FY 2017-18, $41.1 million of the $148.1 million CIP budget, approximately 27.8 percent, was expended. Debt Financing • The District will issue new debt in the form of Certificates of Participation (COP) as needed to fund the CIP and to maintain reserves. • No additional debt issuance is scheduled for FY 2018-19 and FY 2019-20. • Debt will only be used for CIP and capital expenses, not for operating expenses. • Capital financing plans no longer include future borrowings over the next ten years as the approved user fee schedule is considered sufficient. • Borrowing is proposed only for facilities which do not add capacity and that are funded by all users for replacement, rehabilitation, and improved treatment. FY 2018-19 and FY 2019-20 BUDGET ASSUMPTIONS Reserve Assumptions The existing reserve policy is summarized as follows: ► A cash flow criterion will be established to fund operations, maintenance and certificates of participation expenses for the first half of the fiscal year, prior to receipt of the first installment of the property tax allocation and sewer service user fees which are collected as a separate line item on the property tax bill. The level of this criterion 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 criterion will be established to provide for non-recurring expenditures that were not anticipated when the annual budget and sewer service fees were considered and adopted. The level of this criterion will be established at an amount equal to ten percent of the annual operating budget. ► A capital improvement criterion 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 criterion has been established at one-half of the average annual capital improvement program over the next ten years. ► A catastrophic loss, or self-insurance, criterion will be maintained for property damage including fire, flood and earthquake, for general liability and for workers' compensation. This criterion is intended to work with purchased insurance policies, FEMA disaster reimbursements and State disaster reimbursements. The potential infrastructure loss from a major earthquake, of which the District currently has limited outside insurance coverage of $25 million, has been 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. ► Accumulated capital funds will be set aside for certain specific, short-term capital improvements as the need and availability arise. ► A capital replacement/renewal criterion has been established to provide thirty percent of the funding to replace or refurbish the current collection, treatment and disposal facilities at the end of their useful economic lives. Based on the Facilities Evaluation Report completed in December 2017, the current replacement value of these facilities is estimated to be $3.17 billion for the collection facilities and $6.94 billion for the treatment and disposal facilities. The initial criterion level has been established at $50 million, which will be augmented by interest earnings and a small portion of the annual sewer user fee, in order to meet projected needs through the year 2030. ► Provisions of the various certificates of participation (COP) issues require debt service reserves to be under the control of the Trustee for that issue. These reserve funds are not available for the general needs of the District and must be maintained at specified levels. The current level of required COP service reserves is projected to be $177 million. ► 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. No target has been established target for this criterion. 1 FY 2018-20 Budget Development Revenue Summary and Detail Revenue Summary (in millions) Category 2017-18 Adopted 2018-19 Proposed 2019-20 Proposed Revenues: Service Fees 291.1 295.8 300.4 Permit User Fees 12.9 13.1 13.2 Capital Facility Capacity Charge 9.9 12.1 12.5 Property Taxes 93.7 98.3 103.3 Interest 8.4 12.1 16.3 Other Revenue 27.2 37.1 43.8 Debt Proceeds 0.0 0.0 0.0 Total Revenue $443.2 $468.5 $489.5 The Orange County Sanitation District (District) has a variety of revenue sources available for operating and capital expenses. The major revenue sources are as follows: • General Sewer Service Fees • Industrial Waste Permit User Fees • Capital Facilities Capacity Charges (CFCC) • Property Taxes • Interest Earnings • Other Miscellaneous Revenue • Debt Proceeds 2018-19 2019-20 General Service Fees – User fees are ongoing fees for service paid by customers connected to the sewer system. A property owner, or user, does not pay user fees until connected to the sewer system and receiving services. Once connected, a user is responsible for his share of the system’s costs, both fixed and variable, in proportion to demand on the system. These fees are for both Single Family Residences (SFR) and Multiple Family Residences (MFR). Beginning with FY 2018-19, staff is proposing a new five-year rate schedule. The SFR rate (the underlying basis for all sewer rates) will increase by 1.2% ($4) to $335 in FY 2018-19, and additional 1.2% annually over the next four years. These rates are still consistently below the average annual sewer rate currently being charged throughout the state. $295.8M $300.4M 2 2018-19 2019-20 Industrial Waste Permit User Fees – Fees paid by large industrial and commercial properties owners connected to the sewer system. These fees are for the owner’s share of the system’s costs, both fixed and variable, in proportion to demand on the system. Since the inception of the Permit User Fee program in 1970, users of the District’s system that discharge high volumes or high strength wastewater are required to obtain a discharge permit and pay for the full cost of service. $13.1M $13.2M Capital Facilities Capacity Charges (CFCC) – Capital Facilities Capacity Charge is a one-time, non-discriminatory charge imposed at the time a building or structure is newly connected to the District’s system, directly or indirectly, or an existing structure or category of use is expanded or increased. This charge pays for District facilities in existence at the time the charge is imposed, or to pay for new facilities to be constructed in the future, that are of benefit to the property being charged. $12.1M $12.5M Property Taxes – The County is permitted by State law (Proposition 13) to levy taxes at 1% of full market value (at time of purchase) and can increase the assessed value no more than 2% per year. The District receives a share of the basic levy proportionate to what was received in the 1976 to 1978 period less $3.5 million, the amount that represents the State’s permanent annual diversion from special districts to school districts that began in 1992-93. The District’s share of this revenue is dedicated for the payment of debt service. $98.3M $103.3M Interest Earnings – Interest earnings are generated from the investment of accumulated reserves consisting of a cash flow/contingency, a capital improvement, a renewal/replacement, and a self-insurance reserve. $12.1M $16.3M Other Revenue – Other revenue includes solids handling and capital assessments from the Irvine Ranch Water District (IRWD); and O&M sewer services provided to IRWD, the Santa Ana Watershed Protection Authority (SAWPA), and the Sunset Beach Sanitary District. $37.1M $43.8M 3 2018-19 2019-20 Debt Proceeds – Certificates of Participation (COPs) are the District’s primary mechanism for financing capital projects. COPs are repayment obligations based on a lease or installment sale agreement. COPs are viewed by the State of California as a share in an installment arrangement where the District serves as the purchaser. No new debt issuances are projected in the near-term. $0.0M $0.0M Financing If it is necessary that the District utilize debt financing to meet its total obligations and to meet projected construction schedules, the District uses long-term borrowing (Certificates of Participation (COP)) for capital improvements that cannot be financed from current revenue. Before any new debt is issued, the impact of debt service payments on total annual fixed costs is analyzed. No new debt issuance is currently being planned. The District Maintains its AAA Rating The District maintains ratings of “AAA” from S&P Global Ratings, Moody’s Investor Services, and Fitch Ratings. A triple A rating is the highest obtainable for any governmental agency. To maintain this rating, the District adheres to its Debt Policy and coverage ratios requirements. This Board-adopted policy serves as the agency’s guide in the management of existing debt and issuance of future debt. OCSD Has Contractual Covenants The District has contractual covenants within the existing COP agreements which require minimum coverage ratios of 1.25. The minimum coverage ratio is the ratio of net annual revenues available for debt service requirements to total annual debt service requirements for all senior lien COP debt. The coverage ratio for senior lien COP debt was approved at 3.43 for FY 2017-18. 2017-18 2018-19 2019-20 Description Budget Proposed Proposed 1 Salaries & Wages $70.9 $72.9 $74.1 2 Benefits 22.5 23.0 24.7 3 Operating Materials & Supplies 15.7 15.8 18.9 4 Contractual Services 24.5 25.2 22.1 5 Repairs & Maintenance 15.9 21.7 19.3 6 Utilities 7.9 7.4 9.0 7 Professional Services 5.1 5.4 4.6 8 Other Operating Supplies 3.3 2.5 3.0 9 Administrative Expenses 2.0 2.0 1.9 10 Research & Monitoring 0.9 1.1 1.1 11 Other Non-Operating Expenses 0.9 2.8 1.2 12 Training & Meetings 1.3 1.1 1.0 13 Printing & Publication 0.4 0.3 0.3 14 Cost Allocation (19.4)(20.0)(20.4) Net Operating Requirements $151.9 $161.2 $160.8 2018-19 and 2019-20 Budget Development - Expenditure Summary (in millions) 2018-19 AND 2019-20 BUDGET DEVELOPMENT – ADDITIONAL DETAIL (in millions unless otherwise noted) Proposed Proposed 2018-19 2019-20 1) SALARIES AND WAGES $72.9 $74.1 1a) Salaries $68.4 $69.4 Salaries for 636 full-time equivalent (FTE) positions are shown for the fiscal year (FY) 2018-19 and FY 2019-20 proposed budgets. Salary increases have only been included per existing bargaining agreements. The Vacancy Factor is projected at five percent based on the volume of recent and near-future retirements, and the time it will take to become fully staffed. 1b) Leave Payoffs $ 2.5 $ 2.6 Leave Payoffs for retirements are anticipated to remain relatively constant for the next two years. 1c) Overtime $ 2.0 $ 2.1 Overtime has remained constant at approximately $2.0 million over the last several years. Of this total, approximately $1.8 million is budgeted in Operations and Maintenance primarily for required overtime as the plants are in operation 24/7 (vacation, sick, shift overlap), emergencies, unscheduled maintenance, backlog and off- shift construction support. The remaining $200,000 is budgeted in other divisions and has remained essentially flat also. 2) BENEFITS $23.0 $24.7 2a) Retirement $10.7 $10.9 District employees are members of the Orange County Employees’ Retirement System (OCERS). The employer’s required contribution rates have now remained relatively flat following the payoff of the District’s unfunded actuarial accrued liability beginning in the fall of 2015 that had reached a high of close to $200 million. 2b) Group Insurance $10.9 $ 12.1 Includes Medical, Dental, Vision, Life Insurance, Medicare, Disability. In FY 2018-19, the proposed group insurance budget approximates $17,090 per employee. 2c) Benefits, Other $ 1.4 $ 1.7 Includes Workers’ Compensation, Tuition Reimbursement, Development Pay and Uniform Rental. Workers’ Compensation ($0.6 million in FY 2018-19 and $0.8 million in FY 2019-20) is used to maintain the level of accumulated reserves within the Workers’ Compensation self-insurance funds. The Development Pay Program ($461,000) is intended to promote employee efforts that increase job knowledge, skills, and abilities. 2018-19 AND 2019-20 BUDGET DEVELOPMENT – ADDITIONAL DETAIL (in millions unless otherwise noted) Proposed Proposed 2018-19 2019-20 3) OPERATING MAT’LS & SUPPLIES $15.8 $18.9 3a) Chemical Coagulants $ 5.5 $ 8.4 Anionic Polymer – Anionic polymer is added to the primary clarifiers in combination with ferric chloride to enhance primary clarifier performance. The projected budget for FY 2018-19 is $418,000 with FY 2019-20 increasing to $431,000 due to an anticipated three percent unit rate increase. Cationic Polymer – Cationic polymer is added to digested sludge prior to dewatering in order to improve the sludge and water separation process. Cationic polymer is also added to the waste activated sludge dissolved air flotation thickeners (DAFTs) to improve solid(s) coagulation. Projected costs for cationic polymer are $1,876,000 for FY 2018-19 reflecting minimal change from FY 2017-18. These costs will increase to $4,520,000 for FY 2019-20 due to the additional usage for the dewatering centrifuges that are expected to be operational in July 2019. Ferric Chloride – Ferric chloride is an iron salt which is currently used to increase the solids removal efficiencies in the primary treatment process and to control digester hydrogen sulfide. As the amount of ferric chloride is optimized in primary treatment, additional amounts of ferric chloride are added to the digesters to control hydrogen sulfide. The projected ferric chloride budgets for FY 2018-19 and FY 2019-20 are $3,195,000 and $3,419,000, respectively, reflecting expected price increases of seven percent each year. 3b) Odor Control $ 7.1 $ 7.4 Hydrogen Peroxide – The budget for hydrogen peroxide has been eliminated since hydrogen peroxide is no longer being used in the foul air scrubbers and in the trunk sewers. Project P1-123 installed new bio-scrubbers and is efficient in capturing foul air from trunk sewers. Additionally, staff optimized the usage of caustic soda and bleach to the chemical scrubbers and the usage of ferric chloride to the primary clarifiers to ensure effective foul air treatment. Sodium Hydroxide (Caustic Soda) – Caustic soda (25%) is used in the foul air scrubbers and in the District’s main trunk lines (50%) tributary to the treatment plants. For FY 2018-19, staff proposes a budget of $83,000. The collection system usage is proposed with a budget of $1,239,000 to maintain odor complaints within established performance levels. The total budget for caustic soda for FY 2018-19 is $1,322,000 and $1,392,000 in FY 2019-20 based on an estimated pricing increase of 3.6 percent. Muriatic Acid – Muriatic Acid (hydrochloric Acid) is used to backwash the media in the foul air scrubbers, associated piping, and pumps. This cleans deposits caused by hard water, sulfides from the reaction with the foul air, and caustic soda used in the scrubbing 2018-19 AND 2019-20 BUDGET DEVELOPMENT – ADDITIONAL DETAIL (in millions unless otherwise noted) Proposed Proposed 2018-19 2019-20 process. Muriatic Acid is also used as a method for cleaning polymer tanks. The projected budget for FY 2018-19 is $22,000. Magnesium Hydroxide, Trunklines – Magnesium hydroxide reduces the formation of hydrogen sulfide which causes odor and corrosion. Contract services include supply, operational monitoring, sampling, reporting and on-going maintenance services for odor control chemical dosing systems within the wastewater collection and conveyance system. The projected budget for FY 2018-19 is $1,923,000, an increase of $67,000 from the FY 2017-18 projected expense. The budget increase is due to a unit rate increase from $439 per dry ton to $469 per dry ton. The projected budget of $1,992,000 for FY 2019-20 also reflects an estimated pricing increase of 3.6 percent. Ferrous Chloride, Trunklines – Ferrous Chloride is used in the trunks to reduce hydrogen sulfide generation. This contract provides supply, operational monitoring, sampling, reporting and on-going maintenance services for odor control chemical dosing systems within the wastewater collection and conveyance system. In FY 2018-19, the projected budget is $2,719,000, an increase of $216,000 from the FY 2017-18 projected expense due to the new continuous dosing site for the Euclid trunk line that is expected to be operational in March 2019. In FY 2019-20, the projected budget increases to $2,816,000 due to an estimated pricing increase of 3.6 percent. Calcium Nitrate, Trunklines – Calcium nitrate is a biological approach to controlling odors in wastewater. It provides the naturally occurring bacteria with an alternate source of oxygen which, when metabolized, produces nitrogen gas as a byproduct rather than the sulfides produced by the naturally occurring sources of oxygen. This contract provides supply, tanks and delivery equipment, operational monitoring, sampling, reporting and on-going maintenance services for odor control chemical dosing systems within the wastewater collection and conveyance system. The projected budget for FY 2018-19 is $824,000. The FY 2019-20 proposed usage will be the same as the current year. The increase in budgeted cost to $854,000 results from an estimated 3.6 percent unit rate increase. Bleach, Treatment Plant Odor Control – Bleach is used in treatment plant odor control scrubbers and has replaced more expensive chemicals. The projected total cost of odor control bleach is $330,000 for FY 2018-19 with a slight increase to $333,000 in FY 2019-20. 3c) Disinfection $ 0.3 $ 0.3 Sodium Hypochlorite (Bleach) – The treatment plant bleach usage is for disinfection of plant water and the control of filamentous organisms in activated sludge in the secondary treatment process. It is anticipated that the District will use approximately 400,000 gallons of process bleach in FY 2018-19 at a budgeted amount of $245,000. 2018-19 AND 2019-20 BUDGET DEVELOPMENT – ADDITIONAL DETAIL (in millions unless otherwise noted) Proposed Proposed 2018-19 2019-20 For FY 2019-20, costs are projected to increase to $280,000 due to increased usage for the operation of the new centrifuges for solids dewatering. Sodium Bisulfite – Sodium bisulfite is used for dechlorination of outfall effluent at Plant No. 2, if required, to ensure that no residual chlorine is discharged into the ocean. The sodium bisulfite budgets are $5,000 in FY 2018-19 and FY 2019-20. 3d) Tools and Safety Equipment / Tools $ 1.1 $ 0.9 O&M and Safety use 89 percent of these budgets. There has been an increase in these budgets since the definition of capital equipment has changed; tools and equipment that cost less than $5,000 are not considered to be capital. Personal Protective Equipment requirements have increased, and there are different tools needed to maintain the new facilities. 3e) Laboratory Chemicals and Supplies $ 0.6 $ 0.6 Approximately 90 percent of this budget supports the Environmental Sciences Laboratory purchases of glassware, filtration supplies, solvents used for organic extractions, acids and bases used in metals digestion and glassware cleaning, reagents, a variety of standards used in quality assurance of the tests, specialty gases, microbiology supplies and growth media, chromatography columns, test organisms for bioassay, toxicity, and various other laboratory supplies. 3f) Gas, Diesel and Oil $ 0.6 $ 0.6 Vehicle and vessel gasoline and diesel fuel, compressed natural gas, diesel and oil used in the operation of the mobile equipment, within generators and other operating equipment are included in these budgets. The future price of gasoline and natural gas are the major impacts to these budgets. 3g) Other $ 0.6 $ 0.7 Other smaller operating expenses collectively reported within this one line item such as chemicals for CoGen operations, janitorial supplies, miscellaneous operating supplies and property tax fees. 4) CONTRACTUAL SERVICES $25.2 $22.1 4a) Biosolids Management $16.2 $12.5 OCSD has benefitted the last few years from low diesel prices, keeping program costs within budget despite the peak solids production. The FY 2017-18 biosolids budget was impacted by the California fuel tax and a contract renewal resulted in higher costs for land application. The total cost for FY 2018-19 is expected to remain the same as FY 2017-18 projected amount and the cost is projected to decrease by $3,700,000 in FY 2019-20 to $12,500,000 due to the sludge dewatering and odor control facilities coming online at both Plant No. 1 and Plant No. 2. 2018-19 AND 2019-20 BUDGET DEVELOPMENT – ADDITIONAL DETAIL (in millions unless otherwise noted) Proposed Proposed 2018-19 2019-20 4b) Other Residual Solids and Waste $ 0.8 $ 0.8 The other residual solids and waste category includes disposal costs for grit and screening waste, digester cleaning waste, and hazardous materials. The Grit and Screening budget includes supplying bins to collect then haul and dispose of grit, screenings, and drying bed material to a landfill. The grit is generated from the grit chambers, and the screenings is the material collected off the bar screens. Drying bed material is typically made up of the material cleaned out of pipes in the collection system by District’s crews and other city crews in the District’s service area. The budget for disposal of grit, screenings and other waste is $812,000 in FY 2018-19 4c) Grounds keeping/Janitorial/Security $ 2.2 $ 2.2 The Security Services budget is projected to increase slightly from the FY 2017-18 projected total of $1,586,000 to $1,608,000 in FY 2018-19. The proposed FY 2018-19 budgets for Groundskeeping and Janitorial services reflect an increase of $89,000 over the FY 2017-18 projected costs primarily due to maintenance required for the recently acquired Mt. Langley property. The budget for FY 2019-20 is projected to remain the same as FY 2018-19. 4d) County Service Fee $ 0.5 $ 0.5 The County Service Fee is the fee charged by the County of Orange for the inclusion of the District’s sanitation fees on the County of Orange Property Tax Bill and for the collection of these fees by the County on behalf of the District. 4e) Oxygen Plant Operations $ 0.3 $ 0.3 The District oxygen plant has been decommissioned and currently the activated sludge plant operates solely with purchased oxygen. 4f) Temporary Services $ 1.4 $ 1.3 In addition to the temporary services used to fill in for long-term leaves and position vacancies, proposed budgets for FY 2018-19 and FY 2019-20 also provide additional support for the Civil Assets Maintenance Program (CAMP). 4g) Outside Lab Services $ 0.2 $ 0.3 The District contracts out certain laboratory services that are not cost-efficient to perform in-house. Examples include air quality analyses, oil analyses for transformers and internal combustion engines, contaminants of potential concern, and hi-resolution mass spectroscopy. As approximately half of OCSD biosolids are reused in Arizona; contracted testing for those biosolids must meet the State of Arizona requirement for analyses to be performed in an Arizona certified laboratory. 2018-19 AND 2019-20 BUDGET DEVELOPMENT – ADDITIONAL DETAIL (in millions unless otherwise noted) Proposed Proposed 2018-19 2019-20 4h) Contracted Services, Other $ 3.6 $ 4.2 Over 82 percent of contracted services are in support of operating and maintaining the collection system and the treatment plants. Collection system services include closed circuit television of lines ($315K), manhole structural repair and coating ($267K), manhole frame and cover rehabilitation and replacement ($160K), closed circuit television of manholes ($135K), line cleaning ($100K), and sewer repair and relining ($90K). Treatment plant services include CAMP-related support services for asset assessment ($526K), industrial cleaning ($320) and coatings ($431K), as well as preventative maintenance optimization services ($375K). 5) REPAIRS AND MAINTENANCE $ 21.7 $ 19.3 5a) Materials & Services $ 18.4 $ 15.8 Approximately 96 percent of these budgets support the maintenance of the collection system and treatment plants. O&M contracted materials and services for FY 2018-19 include: Central Generation engine overhaul ($2.7M), digester cleaning ($2.0M); primary clarifier repairs ($1.1M); secondary clarifier repairs ($455K); emergency generator maintenance ($280K); belt press overhaul ($250k); interplant line inspection and maintenance ($202K); and other maintenance work including heating, ventilation, and air conditioning (HVAC), lighting and electrical equipment maintenance projects at both treatment plants. The increases following FY 2017-18 are attributed to items previously deferred that are now being addressed in FY 2018-19 and FY 2019-20. The budget for basic scheduled, predictive, and preventive maintenance and emergency maintenance are included in these budgets which are proposed based on historical experience and cost trends. 5b) Service Agreements $ 3.3 $ 3.5 Over 94 percent of service contracts are computer-related or O&M maintenance-related. Major contracts for Information Technology include: Microsoft License Agreements ($292K); Software Maintenance for Maximo ($159K); JDE-Oracle support ($92K); and various smaller service agreements. O&M service contracts include: maintenance of doors and security gates ($240K); maintenance of uninterruptible power supplies ($99K); maintenance of fire sprinklers and extinguishers ($90K); tree pruning and removal services ($80K); scaffolding services ($64K); maintenance of the IRWD Harvard Avenue Trunk Sewer ($61K), and various other plant maintenance agreements. Additional service maintenance agreements covering various equipment items are budgeted throughout the District. 2018-19 AND 2019-20 BUDGET DEVELOPMENT – ADDITIONAL DETAIL (in millions unless otherwise noted) Proposed Proposed 2018-19 2019-20 6) UTILITIES $ 7.4 $ 9.0 6a) Power $ 5.7 $ 7.3 Electricity – For FY 2018-19, the estimated budget and resulting costs of electricity, and power demand charges from Southern California Edison are shown below. The presented budget excludes the electricity requirements of all outlying pump stations and the Mt. Langley property. Southern California Edison requested a 3% increase for next fiscal year over presently authorized total rates. FY 2018-19 Item Estimated Consumption Costs (*) Proposed Budget Value 55041 Plant No. 1 Energy Charges (kWh) 32,841,590 $0.07 (S) $2,200,000 $0.06 (W) Facility Related Demand (kW) 28,598 $8.30 $240,000 Plant No. 1 Demand Charges (kW) 16,704 $19.26 (S-OP) $410,000 22,662 $3.55 (S-MP) Plant No. 1 Fixed Charges ----- ----- $550,000 Total for Plant 1 $3,400,000 55042 Plant No. 2 Energy Charges (kWh) 11,115,835 $0.07 (S) $744,200 $0.06 (W) Facility Related Demand (kW) 5,456 $8.30 $45,300 Plant No. 2 Demand Charges (kW) 2,388 $19.26 (S-OP) $73,340 7,696 $3.55 (S-MP) Plant No. 2 Fixed Charges $247,200 Total for Plant 2 $1,110,040 55043 Contracts Admin Trailers 136,710 $0.21 32,000 Total Plants $4,542,040 55043 Laboratory 2,758,730 $0.13 $369,400 55043 Administration Building 744,862 $0.14 $110,000 Total $5,021,440 (*) based on a 3% increase over SCE rates OP: On-Peak; MP: Mid-Peak; S: Summer time; W: Winter time 2018-19 AND 2019-20 BUDGET DEVELOPMENT – ADDITIONAL DETAIL (in millions unless otherwise noted) Proposed Proposed 2018-19 2019-20 For 2019-20 fiscal year, the estimated budget and resulting costs of electricity, and power demand charges from Southern California Edison are shown below. The presented budget excludes the electricity requirements of all outlying pump stations and the Mt. Langley property. Southern California Edison requested a 3% increase for next fiscal year over presently authorized total rates. FY 2019-20 Item Estimated Consumption Costs (*) Proposed Budget Value Plant No. 1 Energy Charges (kWh) 32,841,590 $0.07 $2,260,000 $0.06 Facility Related Demand (kW) 28,598 $8.55 $240,000 Plant No. 1 Demand Charges (kW) 16,704 $19.84 $410,000 22,662 $3.66 Plant No. 1 Fixed Charges ----- ----- $540,000 P1-101 Estimated Costs* $950,000 Total for Plant 1 $4,400,000 Plant No. 2 Energy Charges (kWh) 11,115,835 $0.07 $766,530 $0.06 Facility Related Demand (kW) 5,456 $8.55 $46,650 Plant No. 2 Demand Charges (kW) 2,388 $19.84 $75,550 7,696 $3.66 Plant No. 2 Fixed Charges ----- ----- $247,200 P2-92 Estimated Costs $500,000 Total for Plant 2 $1,635,930 Contracts Admin Trailers 136,710 $0.21 32,000 Total Plants $6,067,930 Laboratory 2,758,730 $0.14 $380,500 Administration Building 744,862 $0.15 $110,000 Total $6,558,430 (*) it includes the expected savings associated with battery storage system The treatment plants and support buildings estimated consumption and resulting costs for electrical energy purchased from Southern California Edison for the FY 2018-19 are $4,510,000 and the pump stations budget for the same period is $547,000. Other support buildings power costs are $675,000, completing the total estimated power costs for FY 2018-19. The significant increase in FY 2019-20 is driven by increased power 2018-19 AND 2019-20 BUDGET DEVELOPMENT – ADDITIONAL DETAIL (in millions unless otherwise noted) Proposed Proposed 2018-19 2019-20 usage associated with the sludge dewatering and odor control facilities anticipated to be operational in July 2019. 6b) Water $ 0.6 $ 0.6 Potable Water – The potable water budget includes the water supplied by the City of Fountain Valley for Plant No. 1 and the City of Huntington Beach for Plant No. 2. Approximately five percent of the potable water at Plant No. 1 is used for domestic purposes and less than one percent is used for irrigation. Most of the irrigation at both plants uses reclaimed water. Less than one percent of the potable water used at Plant No. 2 is for domestic purposes due to the relatively small number of employees at Plant No. 2. The projected total potable water costs for FY 2018-19 and FY 2019-20 are $619,000 and $631,000, respectively, reflecting projected unit price increases of two percent per year. Green Acres Project (GAP) Water – GAP water is made up of secondary treated effluent from the District that is further treated by the Orange County Water District (OCWD). As provided in OCSD’s agreement with the OCWD, OCSD receives up to 1,120 acre-feet of GAP water annually at no charge. The major uses of GAP water include cooling water, solids handling, and landscaping. Since OCSD has been operating well within the 1,120 acre-feet allotment, no amounts are included in the proposed budget for payments to OCWD. 6c) Natural Gas $ 0.6 $ 0.6 Natural Gas – Natural gas used for Central Generation is purchased from a gas marketer, currently Constellation Energy, and transported through the Southern California Gas Company conveyance system. The “core subscription” is natural gas purchased directly from the Southern California Gas Company and used mainly for building heating and supplemental process heating. For FY 2018-19, the estimated natural gas to be purchased from the Southern California Gas Company and the gas marketer (Constellation Energy) for Plant No. 1 and Plant No. 2 and the associated costs are shown in the table below. The presented budget excludes the requirements for the Mt. Langley property. FY 2018-19 User Estimated Consumption (Therm) Cost ($ Per Therm) Total Cost ($) Plant 1 Cen Gen Normal Operation 360,000 $0.56 $201,600 Plant 1 Core Subscription 171,400 $0.70 $120,000 Plant 2 Cen Gen Normal Operation 425,000 $0.56 $238,000 2018-19 AND 2019-20 BUDGET DEVELOPMENT – ADDITIONAL DETAIL (in millions unless otherwise noted) Proposed Proposed 2018-19 2019-20 Plant 2 Core Subscription 12,000 $0.70 $8,400 Total 968,400 $568,000 For FY 2019-20, gas consumption is not expected to change. The estimated natural gas to be purchased from Southern California Gas Company and the gas marketer (i.e., Constellation Energy) for Plants 1 and 2 and the associated costs are shown in the table below. The presented budget excludes the requirements for the Mt. Langley property. FY 2019-20 User Estimated Consumption (Therm) Cost ($ Per Therm) Total Cost ($) Plant 1 Cen Gen Normal Operation 360,000 $0.58 $208,800 Plant 1 Core Subscription 173,600 $0.72 $125,000 Plant 2 Cen Gen Normal Operation 425,000 $0.58 $246,500 Plant 2 Core Subscription 12,000 $0.72 $8,640 Total 970,600 $588,940 6d) Telephone $ 0.5 $ 0.5 Included in this line item is the funding for over 600 landlines and mobile phones for management and field staff, as deemed appropriate. The total FY 2018-19 telephone estimate is $500,000, $100,000 higher than the FY 2017-18 projected to provide for Internet upgrades. 7) PROFESSIONAL SERVICES $ 5.4 $ 4.6 7a) Legal Services ($1.1M) Legal services are services primarily provided by General Counsel including hours at the District, hours attending committee and board meetings, and general legal support. Other specialized legal services from other firms are also included in this budgeted amount. 7b) Engineering Services ($2.0M) These services provide technical support that in-house staff cannot provide or do not have the time to provide. In FY 2018-19 requested engineering services include corrosion management support ($656K); engineering design services for the Sunflower 2018-19 AND 2019-20 BUDGET DEVELOPMENT – ADDITIONAL DETAIL (in millions unless otherwise noted) Proposed Proposed 2018-19 2019-20 Trunk Line repairs ($546K); and on-site engineering services ($375K) and on-call engineering services ($188K) to support an increasing number of maintenance projects. 7c) Advocacy Efforts ($165K) These are consultant services for promoting the District’s interests in Sacramento and Washington D.C concerning legislation and funding. 7d) Audit & Accounting ($232K) These services represent the cost for the District’s independent annual financial audit and contracted internal auditing services. 7e) Software Program Consultant ($376K) These support costs are required to supplement programming staff as new software versions and new programs are implemented and revised; they are also in support of the SCADA/ (supervisory control and data acquisition) system for process monitoring and controlling. 7f) Other ($1.5M) Professional services also include: environmental scientific consulting services ($280K); industrial hygiene services ($50K); and labor negotiation services ($40K). Collectively reported within the single line item “Other” are various smaller services including: reasonable accommodation consulting, pre-employment testing, actuarial services, annexation fee rate study, Dig Alert services; fleet assessment consulting; and other small professional services expenses. 8) OTHER OPERATING SUPPLIES $ 2.5 $ 3.0 8a) Property & General Liability Insurance ($1.3M) The District’s outside excess general liability insurance coverage is $40 million with a self- insurance retention of $500,000. The District’s property insurance coverage of $1 billion for perils of fire and $300 million for flood is subject to a self-insurance retention of $250,000. The District is partially self-insured for all property damage from the perils of earthquake, but does carry $25 million in coverage on 15 key structures with a $5 million deductible. The proposed appropriation of $1.3 million is needed to maintain the recommended level of reserve within the general liability and property self-insurance fund. 2018-19 AND 2019-20 BUDGET DEVELOPMENT – ADDITIONAL DETAIL (in millions unless otherwise noted) Proposed Proposed 2018-19 2019-20 8b) Regulatory Operating Fees ($749K) Payments to the Regional Water Quality Control Board for the NPDES Permit and to the South Coast Air Quality Management District for permit fees. 8c) Other ($451K) Other material, supplies, and services collectively reported within this single line item. 9) ADMINISTRATIVE EXPENSE $ 2.0 $ 1.9 9a) Small Computer Items ($900K) New computers/notebooks/tablets, printers, monitors, networking equipment, computer peripherals, digital equipment, PDAs, digital cameras, etc. 9b) Memberships ($619K) OCSD’s largest membership costs are for District-wide participation in groups such as the National Association of Clean Water Agencies, the National Water Research Institute, the Water Emergency Response Organization of Orange County, the Water Environment Research Foundation, the Information Technology Approval Group, the California Association of Sanitation Agencies, the Southern California Alliance of Publicly Owned Treatment Works, and the Center for Demographic Research. A minor portion of these expenses is for staff memberships in professional associations. 9c) Minor Furniture & Fixtures ($339K) Minor furniture & fixtures include such items as desks, chairs and related work station fixtures. 9d) Office Supplies ($67K) Office supplies include such items as envelopes, letterhead, notebooks, calendars, etc. 9e) Other ($75K) Other smaller administrative expenses collectively reported within this one line item. 10) RESEARCH AND MONITORING $ 1.1 $ 1.1 10a) Environmental Monitoring ($511K) The budget line items that make-up “Environmental Monitoring” include costs associated with the District’s National Pollution Discharge Elimination System (NPDES) permit-required ocean monitoring program. Core compliance monitoring occurs annually. 2018-19 AND 2019-20 BUDGET DEVELOPMENT – ADDITIONAL DETAIL (in millions unless otherwise noted) Proposed Proposed 2018-19 2019-20 Regional monitoring occurs on a five-year cycle and is a cooperative, multi-agency effort that targets large issues and projects that are beyond the scope of any single agency. Strategic process studies address environmental issues facing OCSD that are outside the scope of the core compliance or regional monitoring. These funds are needed to meet OCSD’s permit-required environmental monitoring program, which includes operating funds and insurance fees for the District’s ocean monitoring vessel, Nerissa. 10b) Air Quality Monitoring ($100K) Periodic monitoring and analysis of air emissions requires testing from various sources including the central generation facilities, validation of emissions from continuous monitoring equipment, source testing after CIP installation/modification (i.e. P1 trickling filters, P1 primary basin install and modifications, etc.). Periodically, there is a requirement to test the waste gas flares. 10c) Other Research ($450K) OCSD contributes annually to research organizations such as the Southern California Coastal Water Research Project and the Water Environmental Research Foundation. 11) OTHER NON-OPERATING EXPENSE $ 2.8 $ 1.2 11a) General Manager Contingency ($715K) These funds are centrally budgeted and expended through the direct discretion and specific approval of the General Manager to support unanticipated District needs or requests of the Board. 11b) Prior year Appropriations ($421K) Since the operating budget lapses at the end of each fiscal year, funds need to be set aside for contacts, purchases, commitments, and other legal obligations that have been incurred prior to June 30 in the prior year but goods or services have not been delivered until after June 30 in the new budget year. 12) TRAINING AND MEETINGS $ 1.1 $ 1.0 12a) Training ($930K) An amount equal to approximately 1.6 percent of the Regular Salaries budget is allocated to Training. Compliance and safety training activities are coordinated through the Human Resources Department. This category includes ongoing technical and safety training and materials for staff; expansion of the Leadership Academy training program, required 2018-19 AND 2019-20 BUDGET DEVELOPMENT – ADDITIONAL DETAIL (in millions unless otherwise noted) Proposed Proposed 2018-19 2019-20 training for computerized plant monitoring and control systems and training to allow for a more adaptive and flexible work force. 12b) Meetings ($167K) The General Manager has reviewed all meeting request budgets for necessity, duplication, and redundancy and has limited this amount to a responsible level. 13) PRINTING AND PUBLISHING $ 0.3 $ 0.3 13a) In-House Publishing ($198K) Although the budget provides for some outside reproduction, the majority of OCSD printing activities are completed in-house, reflecting an expanded management information system and administrative requirements. As well as continuing demand by the public and regulatory agencies for information. These activities including printing of District’s maps, brochures, Board reports and agenda items, budget materials, etc. 13b) Other ($119K) Other printing and publishing expenses collectively reported within this single line item. 14) COST ALLOCATION ($20.0) ($20.4) This represents direct and indirect labor, benefits, materials, and services charged to the Capital Improvement Program (CIP) where the related work was performed. Department Summaries Expenses by Department Department Budget 2017-18 Proposed 2018-19 Proposed 2019-20 Administration Units General Manager's Office $4.6 $4.5 $4.5 Human Resources 9.5 8.3 9.0 Administrative Services 18.5 21.1 19.5 Sub-Total $32.6 $33.9 $33.0 Operating Units Environmental Services 17.3 18.0 18.4 Engineering 3.1 3.8 3.9 Operations & Maintenance 98.9 105.5 105.5 Sub-Total $119.3 $127.3 $127.8 Grand Total $151.9 $161.2 $160.8 Staffing by Department Department Authorized 2017-18 Proposed 2018-19 Proposed 2019-20 Administration Units General Manager's Office* 15.00 14.00 14.00 Human Resources 27.00 27.00 27.00 Administrative Services 99.00 101.00 101.00 Sub-Total 141.00 142.00 142.00 Operating Units Environmental Services 91.00 91.00 91.00 Engineering 116.00 116.00 116.00 Operations & Maintenance 287.00 287.00 287.00 Sub-Total 494.00 494.00 494.00 Total FTEs* 635.00 636.00 636.00 *FTE totals exclude Management Discretion positions that are authorized but used only on a temporary basis to facilitate the  replacement of key positions.  A total of three Management Discretion positions are included in the proposed budget for FY  2018‐19; however, total filled positions will not exceed 636 FTEs at any point in time. Department Summaries General Manager's Office 2017-18 2018-19 2019-20 Category Budget Proposed Proposed Personnel 2,416,600$ 2,175,400$ 2,164,400$ Supplies 538,380 500,340 460,900 Professional / Contractual Services 719,000 700,000 700,000 Research & Monitoring 0 0 0 Repairs & Maintenance 0 0 0 Utilities 130,000 110,000 110,000 Other 819,070 1,225,780 1,191,680 Cost Allocation (57,240) (116,520) (116,520) Total 4,565,810$ 4,595,000$ 4,510,460$ Human Resources 2017-18 2018-19 2019-20 Category Budget Proposed Proposed Personnel 4,633,900$ 4,779,200$ 4,920,700$ Supplies 753,460 690,660 657,060 Professional / Contractual Services 2,737,900 2,717,500 2,957,500 Research & Monitoring 0 0 0 Repairs & Maintenance 3,050 3,050 3,050 Utilities 0 0 0 Other 2,336,230 1,408,160 1,828,860 Cost Allocation (931,720) (1,334,180) (1,334,180) Total 9,532,820$ 8,264,390$ 9,032,990$ Administrative Services 2017-18 2018-19 2019-20 Category Budget Proposed Proposed Personnel 13,884,300$ 14,610,000$ 14,942,300$ Supplies 1,561,650 1,326,980 1,327,160 Professional / Contractual Services 1,340,000 1,706,890 1,163,120 Research & Monitoring 0 0 0 Repairs & Maintenance 2,140,000 2,300,000 2,500,000 Utilities 400,000 500,000 500,000 Other 123,610 1,663,070 163,070 Cost Allocation (942,320) (1,056,440) (1,056,440) Total 18,507,240$ 21,050,500$ 19,539,210$ Department Summaries Environmental Services 2017-18 2018-19 2019-20 Category Budget Proposed Proposed Personnel 13,420,000$ 13,764,000$ 14,082,100$ Supplies 795,180 921,220 903,630 Professional / Contractual Services 657,800 736,660 701,660 Research & Monitoring 889,400 1,061,200 1,099,600 Repairs & Maintenance 270,000 297,330 314,970 Utilities 500,000 369,400 380,500 Other 779,060 824,820 851,820 Cost Allocation (34,950) 23,250 23,030 Total 17,276,490$ 17,997,880$ 18,357,310$ Engineering 2017-18 2018-19 2019-20 Category Budget Proposed Proposed Personnel 19,353,430$ 19,798,600$ 20,215,700$ Supplies 457,360 451,800 437,520 Professional / Contractual Services 501,000 689,700 695,000 Research & Monitoring 0 0 0 Repairs & Maintenance 5,700 117,500 117,500 Utilities 10,000 178,100 183,500 Other 4,410 7,700 8,000 Cost Allocation (17,220,420) (17,483,180) (17,789,760) Total 3,111,480$ 3,760,220$ 3,867,460$ Operations & Maintenance 2017-18 2018-19 2019-20 Category Budget Proposed Proposed Personnel 39,653,100$ 40,860,200$ 42,444,200$ Supplies 15,301,040 15,293,240 18,303,410 Professional / Contractual Services 23,659,380 24,049,250 20,440,640 Research & Monitoring 0 0 0 Repairs & Maintenance 13,526,360 18,997,480 16,385,740 Utilities 6,858,590 6,282,300 7,854,600 Other 119,280 120,660 153,390 Cost Allocation (207,910) (103,350) (104,720) Total 98,909,840$ 105,499,780$ 105,477,260$ OCSD Totals 151,903,680$ 161,167,770$ 160,784,690$ Staffing Summary Authorized Authorized Proposed Proposed Department and Division Name FTEs FTEs FTEs FTEs 2016-17 2017-18 2018-19 2019-20 General Manager's Office General Management Administration 5.00 5.00 4.00 4.00 Board Services 5.00 5.00 5.00 5.00 Public Affairs 5.00 5.00 5.00 5.00 Department Subtotal* 15.00 15.00 14.00 14.00 Human Resources Department Human Resources 16.00 16.00 16.00 16.00 Risk Management 11.00 11.00 11.00 11.00 Department Subtotal 27.00 27.00 27.00 27.00 Administrative Services Department Administrative Services 3.00 3.00 3.00 3.00 Financial Management 19.00 19.00 19.00 19.00 Contracts, Purchasing & Materials Management 32.00 32.00 32.00 32.00 Information Technology 45.00 45.00 47.00 47.00 Department Subtotal 99.00 99.00 101.00 101.00 Environmental Services Department Environmental Services Administration 2.00 2.00 2.00 2.00 Environmental Compliance 47.00 37.00 37.00 37.00 Laboratory & Ocean Monitoring 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 Planning 15.00 15.00 14.00 14.00 Project Management Office 17.00 17.00 16.00 16.00 Civil & Mechanical Engineering 53.00 53.00 54.00 54.00 Electrical & Control Systems Engineering 29.00 29.00 30.00 30.00 Department Subtotal 116.00 116.00 116.00 116.00 Operations & Maintenance Department Operations & Maintenance Administration 3.00 3.00 3.00 3.00 Collection Facilities Operations & Maintenance 26.00 26.00 26.00 26.00 Fleet Services 8.00 8.00 8.00 8.00 Plant No. 1 Operations 62.00 61.00 61.00 61.00 Plant No. 2 Operations 50.00 51.00 51.00 51.00 Plant No. 1 Maintenance 85.00 62.00 61.00 61.00 Maintenance Reliability & Planning 28.00 28.00 28.00 Plant No. 2 Maintenance 45.00 48.00 49.00 49.00 Department Subtotal 279.00 287.00 287.00 287.00 Grand Total - All Departments* 627.00 635.00 636.00 636.00 *Excludes Management Discretion Positions Proposed Positions by Department and Division FY 2018‐19 2019‐20 Budget Next FY Dept Next FY  Division Job Title FY 18‐19 FTE FY 19‐20 FTE 100 110 General Manager 1.00 1.00 Assistant General Manager 1.00 1.00 Principal Staff Analyst 1.00 1.00 Secretary to General Manager 1.00 1.00 110 Total 4.00 4.00 120 Clerk of the Board 1.00 1.00 Deputy Clerk of the Board 1.00 1.00 Office Assistant 1.00 1.00 Program Assistant 2.00 2.00 120 Total 5.00 5.00 140 Public Affairs Supervisor 1.00 1.00 Senior Public Info Specialist 1.00 1.00 Public Affairs Specialist 1.00 1.00 Administrative Assistant 1.00 1.00 Graphics Designer 1.00 1.00 140 Total 5.00 5.00 100 Total 14.00 14.00 160 160 Director of Human Resources 1.00 1.00 HR and Risk Manager 1.00 1.00 Human Resources Supervisor 2.00 2.00 Principal HR Analyst 2.00 2.00 Sr Human Resources Analyst 4.00 4.00 Human Resources Analyst 4.00 4.00 Human Resources Assistant 2.00 2.00 160 Total 16.00 16.00 161 Safety & Health Supervisor 1.00 1.00 Principal Staff Analyst 1.00 1.00 Safety & Health Specialist 1.00 1.00 Security/Emerg Plng Specialist 1.00 1.00 Occupational Health Nurse 1.00 1.00 Senior Safety & Health Rep 2.00 2.00 Safety & Health Representative 3.00 3.00 Administrative Assistant 1.00 1.00 161 Total 11.00 11.00 160 Total 27.00 27.00 Page 1 of 8 Proposed Positions by Department and Division FY 2018‐19 2019‐20 Budget Next FY Dept Next FY  Division Job Title FY 18‐19 FTE FY 19‐20 FTE 200 210 Director of Fin & Admin Svcs 1.00 1.00 Principal Financial Analyst 1.00 1.00 Executive Assistant 1.00 1.00 210 Total 3.00 3.00 220 Controller 1.00 1.00 Accounting Supervisor 3.00 3.00 Principal Accountant 2.00 2.00 Senior Accountant 2.00 2.00 Senior Staff Analyst 1.00 1.00 Accountant 2.00 2.00 Payroll Technician 2.00 2.00 Accounting Assistant II 6.00 6.00 220 Total 19.00 19.00 230 Contract & Purchasing Manager 1.00 1.00 Contracts Supervisor 2.00 2.00 Principal Contracts Admin 2.00 2.00 Purchasing Supervisor 1.00 1.00 Materials Control Supervisor 1.00 1.00 Senior Contracts Administrator 3.00 3.00 Contracts Administrator 3.00 3.00 Senior Buyer 3.00 3.00 Buyer 2.00 2.00 Contract/Purchasing Assistant 5.00 5.00 Lead Storekeeper 1.00 1.00 Senior Storekeeper 3.00 3.00 Storekeeper 5.00 5.00 230 Total 32.00 32.00 250 IT Syst & Operations Manager 1.00 1.00 Information Tech Supervisor 3.00 3.00 Principal Info Tech Analyst 7.00 7.00 Senior Info Tech Analyst 7.00 7.00 Information Tech Analyst III 6.00 6.00 Senior Info Tech Analyst 3.00 3.00 Records Management Specialist 1.00 1.00 Data Mgmt Tech II 7.00 7.00 Information Tech Analyst II 3.00 3.00 Data Mgmt Tech I 4.00 4.00 Staff Analyst 1.00 1.00 Administrative Assistant 2.00 2.00 Information Technology Tech II 1.00 1.00 Information Technology Tech I 1.00 1.00 250 Total 47.00 47.00 200 Total 101.00 101.00 Page 2 of 8 Proposed Positions by Department and Division FY 2018‐19 2019‐20 Budget Next FY Dept Next FY  Division Job Title FY 18‐19 FTE FY 19‐20 FTE 600 610 Director of Environmental Svcs 1.00 1.00 Executive Assistant 1.00 1.00 610 Total 2.00 2.00 620 Engineering Manager 1.00 1.00 Engineering Supervisor 2.00 2.00 Senior Engineer 2.00 2.00 Engineer 4.00 4.00 Source Control Supervisor 1.00 1.00 Associate Engineer 3.00 3.00 Pr Environmental Specialist 3.00 3.00 Lead Source Control Inspector 1.00 1.00 Sr Environmental Specialist 1.00 1.00 Source Control Inspector II 7.00 7.00 Source Control Inspector I 2.00 2.00 Administrative Assistant 2.00 2.00 Environmental Technician 3.00 3.00 Program Assistant 4.00 4.00 Office Assistant 1.00 1.00 620 Total 37.00 37.00 630 Environmental Lab & OM Manager 1.00 1.00 Environmental Supervisor 4.00 4.00 Senior Regulatory Specialist 1.00 1.00 Senior Scientist 3.00 3.00 Regulatory Specialist 2.00 2.00 Scientist 1.00 1.00 Associate Engineer 1.00 1.00 Pr Environmental Specialist 8.00 8.00 Regulatory Specialist 1.00 1.00 Sr Environmental Specialist 18.00 18.00 Boat Captain 1.00 1.00 Environmental Specialist 7.00 7.00 Administrative Assistant 1.00 1.00 Environmental Technician 3.00 3.00 630 Total 52.00 52.00 600 Total 91.00 91.00 Page 3 of 8 Proposed Positions by Department and Division FY 2018‐19 2019‐20 Budget Next FY Dept Next FY  Division Job Title FY 18‐19 FTE FY 19‐20 FTE 700 710 Assistant General Manager 1.00 1.00 Executive Assistant 1.00 1.00 710 Total 2.00 2.00 740 Engineering Manager 1.00 1.00 Engineering Supervisor 2.00 2.00 Senior Engineer 3.00 3.00 Engineer 3.00 3.00 Principal Staff Analyst 2.00 2.00 Associate Engineer 1.00 1.00 Engineering Associate 1.00 1.00 Administrative Assistant 1.00 1.00 740 Total 14.00 14.00 750 Engineering Manager 1.00 1.00 Engineering Supervisor 1.00 1.00 CIP Project Manager 9.00 9.00 Senior Engineer 1.00 1.00 Pr Project Controls Analyst 1.00 1.00 Principal Staff Analyst 2.00 2.00 Administrative Assistant 1.00 1.00 750 Total 16.00 16.00 760 Engineering Manager 1.00 1.00 Engineering Supervisor 4.00 4.00 Senior Engineer 7.00 7.00 Construction Insp Supervisor 2.00 2.00 Engineer 13.00 13.00 Senior Cost Estimator 1.00 1.00 Senior Planner‐Scheduler 1.00 1.00 Associate Engineer 4.00 4.00 Senior Construction Inspector 5.00 5.00 Engineering Associate 1.00 1.00 Senior Staff Analyst 2.00 2.00 Construction Inspector 6.00 6.00 Engineering Assistant II 4.00 4.00 Administrative Assistant 2.00 2.00 Engineering Assistant I 1.00 1.00 760 Total 54.00 54.00 770 Engineering Manager 1.00 1.00 Engineering Supervisor 2.00 2.00 Senior Engineer 6.00 6.00 Principal Info Tech Analyst 4.00 4.00 Engineer 4.00 4.00 Senior Construction Insp Supv 1.00 1.00 Senior Info Tech Analyst 3.00 3.00 Information Tech Analyst III 1.00 1.00 Page 4 of 8 Proposed Positions by Department and Division FY 2018‐19 2019‐20 Budget Next FY Dept Next FY  Division Job Title FY 18‐19 FTE FY 19‐20 FTE 700 770 Senior Construction Inspector 3.00 3.00 Information Tech Analyst II 1.00 1.00 Construction Inspector 3.00 3.00 Administrative Assistant 1.00 1.00 770 Total 30.00 30.00 700 Total 116.00 116.00 Page 5 of 8 Proposed Positions by Department and Division FY 2018‐19 2019‐20 Budget Next FY Dept Next FY  Division Job Title FY 18‐19 FTE FY 19‐20 FTE 800 810 Director of Operations & Maint 1.00 1.00 Senior Staff Analyst 1.00 1.00 Staff Analyst 1.00 1.00 810 Total 3.00 3.00 820 Engineering Manager 1.00 1.00 Maintenance Supervisor 2.00 2.00 Lead Mechanic 5.00 5.00 Administrative Assistant 1.00 1.00 Senior Mechanic 8.00 8.00 Mechanic 7.00 7.00 Mechanic 1.00 1.00 Office Assistant 1.00 1.00 820 Total 26.00 26.00 822 Maintenance Supervisor 1.00 1.00 Lead Mechanic 1.00 1.00 Automotive/Heavy Equip Tech 3.00 3.00 Mobile Crane Operator 2.00 2.00 Automotive/Heavy Equip Asst 1.00 1.00 822 Total 8.00 8.00 830 Operations Manager 1.00 1.00 Engineering Supervisor 1.00 1.00 Chief Plant Operator 1.00 1.00 Senior Engineer 1.00 1.00 Engineer 1.00 1.00 Operations Supervisor 7.00 7.00 Principal Staff Analyst 1.00 1.00 Scientist 1.00 1.00 Associate Engineer 2.00 2.00 Assistant Engineer 1.00 1.00 Pr Environmental Specialist 1.00 1.00 Sr Environmental Specialist 1.00 1.00 Lead Plant Operator 4.00 4.00 Lead Power Plant Operator 1.00 1.00 Power Plant Operator II 4.00 4.00 Senior Plant Operator 14.00 14.00 Administrative Assistant 1.00 1.00 Plant Operator 13.00 13.00 Environmental Technician 1.00 1.00 Control Center Technician ‐ upgraded 2.00 2.00 Plant Operator 2.00 2.00 830 Total 61.00 61.00 840 Chief Plant Operator 1.00 1.00 Operations Supervisor 7.00 7.00 Lead Plant Operator 4.00 4.00 Page 6 of 8 Proposed Positions by Department and Division FY 2018‐19 2019‐20 Budget Next FY Dept Next FY  Division Job Title FY 18‐19 FTE FY 19‐20 FTE 800 840 Lead Power Plant Operator 1.00 1.00 Power Plant Operator II 4.00 4.00 Senior Plant Operator 14.00 14.00 Administrative Assistant 1.00 1.00 Plant Operator 18.00 18.00 Plant Operator 1.00 1.00 840 Total 51.00 51.00 870 Maintenance Manager 1.00 1.00 Maintenance Superintendent 1.00 1.00 Maintenance Supervisor 6.00 6.00 Lead Elec Tech 3.00 3.00 Lead Instrumentation Tech 1.00 1.00 Electrical Tech II 8.00 8.00 Instrumentation Tech II 6.00 6.00 Lead Mechanic 2.00 2.00 Machinist 1.00 1.00 Administrative Assistant 1.00 1.00 Senior Mechanic 16.00 16.00 Welder/Fabricator 3.00 3.00 Lead Facilities Worker 1.00 1.00 Electrical Tech I 1.00 1.00 Instrumentation Tech I 3.00 3.00 Facilities Worker/Builder 2.00 2.00 Facilities Worker/Painter 1.00 1.00 Senior Mechanic 1.00 1.00 Maintenance Worker 2.00 2.00 Mechanic 1.00 1.00 870 Total 61.00 61.00 875 Engineering Manager 1.00 1.00 Engineering Supervisor 1.00 1.00 Senior Engineer 3.00 3.00 Engineer 4.00 4.00 Maintenance Supervisor 1.00 1.00 Associate Engineer 2.00 2.00 Maintenance Specialist 11.00 11.00 Reliability Maint Technician 5.00 5.00 875 Total 28.00 28.00 880 Maintenance Superintendent 1.00 1.00 Maintenance Supervisor 5.00 5.00 Lead Elec Tech 2.00 2.00 Lead Instrumentation Tech 2.00 2.00 Electrical Tech II 7.00 7.00 Instrumentation Tech II 8.00 8.00 Lead Mechanic 2.00 2.00 Page 7 of 8 Proposed Positions by Department and Division FY 2018‐19 2019‐20 Budget Next FY Dept Next FY  Division Job Title FY 18‐19 FTE FY 19‐20 FTE 800 880 Senior Mechanic 13.00 13.00 Lead Facilities Worker 1.00 1.00 Electrical Tech I 1.00 1.00 Facilities Worker/Builder 1.00 1.00 Facilities Worker/Painter 1.00 1.00 Mechanic 1.00 1.00 Maintenance Worker 2.00 2.00 Senior Mechanic 2.00 2.00 880 Total 49.00 49.00 800 Total 287.00 287.00 Grand Total 636.00 636.00 Page 8 of 8