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Home My WebLink AboutBudget Workshop - Final PPTBUDGET WORKSHOP for Fiscal Years2018-19 and 2019-20 Special Board Meeting April 11, 2018 OCSD has Distinct and StableRevenue Components Fees & Charges $321 M 68% Property Taxes $98 M 22% Revenue Forecast $468 Million Other $49 M -10% Revenues are Composed of Four Major Categories Forecast Percent Fees and Charges $321 M 69% Property Taxes $ 98 M 21% Interagency/Other $ 49 M 10% Debt Proceeds $ 0 M 0% Total Revenue $ 468 M 100% Fees and Charges are Composed of Three Major Categories Forecast Percent General User Fees $ 296 M 92% Permit User Fees $ 13 M 4% Capital Facilities Charges $ 12 M 4% Total Fees & Charges $ 321 M 100% Company Fee % of TotalHouse Foods America $ 1,328,551 0.43%Kimberly-Clark Worldwide 1,139,233 0.36%Cargill 1,119,665 0.36%Pulmuone Wildwood, Inc.749,655 0.24%Stremicks Heritage Foods 678,705 0.22%MCP Foods, Inc.676,563 0.22%Schreiber Foods, Inc.635,504 0.20%Ameripec Inc.593,679 0.19%Jazz Semiconductor 549,292 0.18% Nor-Cal Beverage 538,242 0.17%Top Ten Total Fees & Charges $8,009,089 2.57% Ten Largest Industrial Users Represent < 3% of OCSD User Fees The District has Distinct Expenditure Components Capital Improvement $170 M 40% Operating Expenses $161 M 40% Expenditure Forecast $411 Million Debt Service $80 M 20% OCSD has a Strategic Debt Program that includes no new debt and will be paid off by 2042 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 OCSD Outstanding Debt Category Millions Salaries $ 74Benefits$ 25 Contractual Services $ 22Repairs and Maintenance $ 19 Operating Materials & Supplies $ 19 Utilities $ 9Professional Services $ 5 Other $ 8Allocation$ -20Total Operating Budget $161 Operating Budget Major Categories The District has Distinct Expenditure Components Capital Improvement $170 M 40% Operating Expenses $161 M 40% Expenditure Forecast $411 Million Debt Service $80 M 20% Salaries and Benefits Represent less than 25% of the Total Budget Forecast Capital Improvement $170 M Operating Expenses $161 M Debt Service $ 80 M Total Expenditures $411 M Salaries and Benefits $ 99 M (24%) Administrative Services Department Finance 19 FTEs General Accounting, Accounts Payable/Receivable, Payroll, Budgeting, Fixed Assets, User Fees, Revenues Information Technology 47 FTEs IT Assets and Services, Applications Support Networking, Infrastructure, Telecommunications, Programming Solutions Procurement 32 FTEs Contracts Administration, General Procurement, Purchasing, Warehousing, Inventory Administration –Department Oversight 3 FTEs Administrative Services Department Staffing $15.0M Supplies $ 1.5M (Small Computer Items-$900K, Telephone Equip. -$500K) Repairs and Maintenance $ 2.5M (Service Maintenance Agreements-$2.3M) Total Department Budget $20.0M Professional & Contractual Services $ 1.0M County Service Fee-$500K), Software Consulting-$200K, Auditing-$150K) Questions? Bob Ghirelli Assistant General Manager General Manager’s Office General Manager’s Office Administration Public AffairsLegislative Advocacy & Grants Community Education Internal & External Communications Community Events Board Services District Transparency Certificate of Excellence Staffing & Budget 4 5 5 Staffing Administration Board Services PAO $2,938,540 $643,660 $1,012,800 Budget Administration Board Services Public Affairs Office Total Staff = 14 Total Budget = $4.6M Questions? Celia Chandler Director of Human Resources Human Resources Human Resources DepartmentMajor Functions HumanResources Recruitment & Selection Benefits Classification & CompensationTraining & Development Employee & Labor Relations Risk Management Safety Property & General Liability Insurance Occupational Health Security & Emergency Planning Orange County Employees Retirement System (OCERS) 360 57 169 0 50 100 150 200 250 300 350 400 Plans G & H (hired before 2011)Plan B (hired 2011 to 2013, or coming from public agency) Plan U (hired 2013 or later) Number of Employees on Each OCERS Plan Employee Benefits Human Resources Department Staffing Levels FY 2017/18 FY 2018/19 27 Full-Time Equivalent Positions 27 Full-Time Equivalent Positions •No change in staffing levels for FY 2018/19 Questions? James E. Colston Director of Environmental Services Environmental Services Environmental Services Mission •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. Staffing & Budget 2 52 37 Staffing Administration Lab, Monitoring & Compliance Resource Protection $800,000 $11,200,000 $6,000,000 Budget Admininstration Lab, Monitoring & Compliance Resource Protection Total Staff = 91 Total Budget = $18M Laboratory, Monitoring & Complianceby the Numbers •>108,000 samples per year (>9,000/month) •>100 cruises per year with OCSD’s ocean monitoring vessel, Nerissa •Monitoring for water, air and biosolids quality includes: •Plant processes and optimization •Compliance •Public health and environmental protection •GWRS source water quality and protection •Industrial and Commercial permit holders and sources •Research and Special Studies •20 Mandatory Environmental Reports submitted each year Pr e t r e a t m e n t P r o g r a m Industrial –354 (198 federal categorical) High User (Class II) –22 Special Purpose Discharge –61 Wastehauler –46 Urban Runoff –21 Fats, Oils and Grease –178 SAWPA Permits –82 Zero Discharge Certifications –24 Inspections –1,543 Pretreatment by the Numbers (FY 2015-2016) James E. Colston Director of Environmental Services Biosolids Budget Update OCSD Biosolids Policy •Commitment to a sustainable biosolids program that includes recycling •Diversification of contractors, markets and facilities for biosolids management •Maintenance of fail-safe back-up capacity of at least 100% •Striving to balance financial, environmental and societal considerations in decision-making Where Do Our Biosolids Go? Cost Impact Drivers •Variation in biosolids production •Contract obligations and renewals •Fluctuating cost of diesel fuel 12 13 14 15 16 17 18 19 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 Budgeted Actual Mi l l i o n D o l l a r s Biosolids Hauling Cost Budgeted and Actual Data point is a projection based on first 8 months of FY 17/18 Questions? Ed Torres Director of Operations & Maintenance Operations and Maintenance Department Summary (FY18/19 –19/20 Proposed Budget*) *Materials & Services only DIVISION 810 O&M Administration Total Budget: $0.3M DIVISION 820 Collections DIVISION 822 Fleet DIVISION 830 P1 Operations DIVISION 840 P2 Operations DIVISION 870 P1 Maintenance DIVISION 880 P2 Maintenance DIVISION 875 Reliability Maintenance & Planning •Total Staff: 26 •Chemicals: $6.7M•Contractual Services: $1.3M •Total Budget: $9.9M •Total Staff: 8 •Total Budget: $1.0M •Total Staff: 49 •Solids Removal: $7.8M•Chemicals: $2.1M •Utilities: $1.5M •Total Budget: $12.6M •Total Staff: 49 •Repairs & Maintenance: $8.8M•Total Budget: $9.8M •Total Staff: 28 •Contractual Services: $1.8M•Professional Services: $1.2M •Total Budget: $3.2M •Total Staff: 61 •Repairs & Maintenance: $8.8M•Total Budget: $10.2M •Total Staff: 63 •Solids Removal: $8.4M•Chemicals: $4.0M •Utilities: $4.1M •Total Budget: $17.7M Total Operating Budget (FY18-19): $64.7M Total Operating Budget (FY19-20): $63.1M Repairs and Maintenance Central Generation P1 P2 # Engines 3 5 Capacity (MW) –Each/ Total 2.5 / 7.5 3 / 161 Average Daily Demand2 (MW)9.3 7.5 Peak Demand (MW)11 9.5 # Engines Normally Running 2 3 1 Includes output from Steam Turbine (1 MW) 2 Averages from Month of January 2018 FY17/18 Projected FY18/19 FY19/20 CenGen Engine Overhauls -$ 3,800,000$ 2,000,000$ Proposed Budget Clarification Process Clarified Primary Effluent Primary Sludge to Digesters Incoming Wastewater Ferric Chloride Anionic Polymer to Secondary Treatment Sludge Particles Rectangular Primary Clarifier Tank Repairs and Maintenance Clarifiers 34 56–31 2 1 27 29 31 33 32 34 1–26 Primary Clarifiers Secondary ClarifiersPlant 1 Plant 2 Digestion Process FY17/18 Projected FY18/19 FY19/20 Digester Cleaning 1,600,000$ 2,400,000$ 2,400,000$ Proposed Budget Repairs and Maintenance Digesters Plant 1 Plant 2 Repairs and Maintenance Blowers, Electrical & Generators FY17/18 Projected FY18/19 FY19/20 Blower Maintenance 150,000$ 450,000$ 150,000$ Electrical Services -$ 650,000$ 550,000$ Generator Maintenance -$ 400,000$ 400,000$ Proposed Budget Repairs and Maintenance SUMMARY FY17/18 Projected FY18/19 FY19/20 CenGen Engine Overhauls -$ 3,800,000$ 2,000,000$ Digester Cleaning 1,600,000$ 2,400,000$ 2,400,000$ Clarifier Maintenance / Rehab 500,000$ 2,150,000$ 1,450,000$ Blower Maintenance 150,000$ 450,000$ 150,000$ Electrical Services -$ 650,000$ 550,000$ Generator Maintenance -$ 400,000$ 400,000$ Materials / Other 12,330,360$ 9,147,480$ 9,435,740$ Total 14,580,360$ 18,997,480$ 16,385,740$ Proposed Budget Chemicals Odor Control Process Chemicals Odor Control Strategies FY17/18 Projected FY18/19 FY19/20 Treatment Plant Airphase 410,000$ 435,000$ 468,000$ Continuous Dosing (Collections)5,154,000$ 5,466,000$ 5,662,000$ Caustic Dumping (Collections)1,320,000$ 1,239,000$ 1,283,000$ Odor Chemicals (Total)6,886,710$ 7,142,120$ 7,415,980$ Proposed Budget Chemicals Coagulants Dewatering FY17/18 Projected FY18/19 FY19/20 Anionic Polymer 405,000$ 418,000$ 431,000$ Cationic Polymer 1,852,000$ 1,876,000$ 4,520,000$ Ferric Chloride 2,986,106$ 3,195,077$ 3,418,992$ Coagulants/Flocculents (Total)5,243,106$ 5,489,077$ 8,369,992$ Proposed Budget ChemicalsBleach FY17/18 Projected FY18/19 FY19/20 Bleach 439,200$ 481,500$ 516,500$ Proposed Budget Utilities FY17/18 Projected FY18/19 FY19/20 Natural Gas 515,130$ 568,000$ 588,940$ Electricity 4,929,100$ 5,089,460$ 6,628,490$ Water 601,450$ 613,550$ 625,880$ Other 10,500$ 11,290$ 11,290$ Total 6,056,180$ 6,282,300$ 7,854,600$ Proposed Budget Engineering Services FY17/18 Projected FY18/19 FY19/20 Corrosion Control 460,000$ 650,000$ 650,000$ Sunflower Repair -$ 550,000$ 80,000$ Engineering Support 300,000$ 560,000$ 187,500$ Other 180,160$ 125,460$ 28,300$ Total 940,160$ 1,885,460$ 945,800$ Proposed Budget Questions? Rob Thompson Assistant General Manager & Director of Engineering Capital Improvement Program (CIP) Annual Budget Update Process OCSD Resources Cash Flow Analysis Risks & Impacts to OCSD Rates New Information ProposedCIPAnalysisCurrentCIP CIP Project Validation $- $50 $100 $150 $200 $250 $300 $350 $400 $450 Mi l l i o n s Past (spent) FY 18-19 Proposed Budget FY17-18 Budget 10-Year CIP Outlay = $2.67 Billion Annual Budget Authority by Project Top Budget Increases Project No.Project Name Current Budget Proposed Budget Variance Phase 7-64 Main Street Pump Station Rehab $39M $60 M $21M Future 3-60 Beach Trunk/Knott Interceptor Sewer $119M $136 M $17M Future 11-34 Slater Avenue Pump Station Rehab $10M $25 M $15M Future P2-129 Digester P, Q, R, and S Replacement $158M $166 M $8M Future 5-66 Crystal Cove Pumping Station Rehab $11M $18 M $7M Future P1-101 Sludge Dewatering and Odor Control $188M $195 M $7M Constr 11-33 Edinger Pump Station Rehab $9M $14 M $5M Future 7-63 MacArthur Pump Station Rehab $9M $13M $4M Future P1-129 AS1 RAS Header Piping Replacement $4M $8M $4M Design 2-73 Yorba Linda Pump Station Abandonment $7M $11M $4M Future Top Budget Decreases Project No.Project Name Current Budget Proposed Budget Variance Phase P2-98 Primary Treatment Rehabilitation at P2 $491M $245M ($246M)Pre-Design P1-105 Headworks Rehab. and Expansion at P1 $436M $370M ($66M)Design J-120 Process Control Systems Upgrades $102M $46M ($56M)Future P2-91-1 Plant No. 2 Digester Facilities Rehab $49M $20M ($29M)Project Develop. 3-64 Rehab of Western Regional Sewers $217M $202M ($15M)Pre-Design P2-128 TPAD Digester Facility at P2 $419M $405M ($14M)Future 1-101 Raitt and Bristol Street Sewer Extension $13M $7 M ($6M)Future P1-126 Primary Clarifiers Replacements and Improvements at P1 $112M $106M ($6M)Future J-121 UPS Systems Upgrades $8M $5M ($3M)Future P2-123 RAS Piping Replacement at P2 $15M $13M ($2M)Design Top Project Closures/Cancellations Project No.Project Name Current Approved Budget P1-114 Primary Scrubber Rehabilitation Project at Plant No. 1 $75 M P2-89 Solids Thickening and Processing Upgrades $48 M M-FE- PLANT Facilities Engineering Program -Plant $43M J-111 Cengen Emissions Control Project $24 M J-110 Final Effluent Sampler and Building Area Upgrades $16 M M-FE- COLLECT Facilities Engineering Program -Collections $14 M P1-130 Interstate 405 Widening Project Impacts on OCSD Front Entrance $2.7 M 2-77 Orangethorpe OCTA Grade Separation Project $1.5 M SP-103 PDS2D Software Replacement $0.5 M 2-75 Lakeview Grade Separation Project $330 K Newly Defined Projects Project No.Project Name Proposed Budget P2-133 B/C-Side Primary Clarifiers Rehabilitation at Plant No. 2 $250 M 3-67 Seal Beach Pump Station Replacement $79 M 3-68 Los Alamitos Sub-Trunk Extension $66 M M-FE Small Construction Projects Program $55M P1-133 Primary Clarifiers 6-31 Reliability Improvements at Plant No. 1 $22 M Questions?