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HomeMy WebLinkAboutItem 7 - Proposed Budget FY 2020-21_2021-22 t• ._ — — l,� PROPOSED BUDGET �WpAr-- Ti let FISCAL YEARS 2020-2021 and 2021 -2022 1 Orange County Sanitation District, California - �`� Orange County Sanitation District, California FY 2020-21 & FY 2021 -22 Proposed Budget V S A N I Tq V Q � o -a MISSION STATEMENT "To protect public health and the environment by providing effective wastewater collection, treatment, and recycling." For Fiscal Years July 1, 2020 through June 30, 2021 and July 1, 2021 through June 30, 2022 Go to Table of Contents 2020-21 & 2021 -22 Budget LA ocsD HABRA BREA Sew"Area i Ixroa gr:xgaa: YOR BA FULLE ON LINDA PLAC NTIA I - LA ENA - - PAL A ARK J CY E S ANAHEIM VILLA P ANT N LOS ALAMIT ARD ORANGE RO ' J SEAL E TMI STER BEAC SAN A FAUN AI ANA TUSTIN All r � Hu INc rop - B H IRVINE C MESA -� LEGEND r Sewer plpegnes NEWPORT -Pant Na.1 1P1) BEACH Pant No.2 IP"et ■pimp 5tatlons Unincorporated Orange County Iwhlte areal N A DISCLAIMER:Map prepared by the Orange County Sanitation District This map is intended for graphical representation only. No level of accuracy is claimed. Portions of this derived product corttain yeugraphocal informative copyrighted by Rand McNally 2013 An Rights Reserved- REVISED:2C 1 B Go to Table of Contents GFOA Budget Presentation Award GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO Orange County Sanitation District California For the Fiscal Year Beginning July 1, 2018 �'-4'� P Lxecutive Director 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, 2018. 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. Hyperlinks are active 2020-21 & 2021 -22 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.................................................................................................................................................................x Section 1 — Executive Summary ExecutiveSummary.......................................................................................................................................1 Section 2 - Introduction Financial Overview & Budgetary Issues........................................................................................................1 BusinessPlan..............................................................................................................................................13 OCSDLong-Term Planning.........................................................................................................................24 Background Information and Description of Services .................................................................................25 OrangeCounty at a Glance.........................................................................................................................25 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 2020-21: Wherethe Money Comes From..............................................................................................................1 Wherethe Money Goes..........................................................................................................................1 Funding Sources by Category ................................................................................................................2 FundingUses by Category .....................................................................................................................3 FY 2021-22: Where the Money Comes From..............................................................................................................5 Wherethe Money Goes..........................................................................................................................5 Funding Sources by Category ................................................................................................................6 FundingUses by Category .....................................................................................................................7 BudgetResources.........................................................................................................................................8 Budget Resources by Revenue Area — FY 2020-21 ...................................................................................10 Budget Resources by Revenue Area — FY 2021-22...................................................................................12 ProjectedReserves .....................................................................................................................................14 Consolidated Cash Flow Projections...........................................................................................................16 Hyperlinks are active Table of Contents Section 5—Operations Overview Operations Budget Overview.........................................................................................................................1 Operations Summary/Comparisons by Department......................................................................................2 Expenseby Category ....................................................................................................................................3 Allocation to Individual Revenue Areas.........................................................................................................4 Net Operating Expense by Line Item ............................................................................................................5 Notes to Operations Summary......................................................................................................................7 Section 6 - Operating Divisions GENERAL MANAGEMENT GeneralManagement Administration............................................................................................................1 BoardServices ..............................................................................................................................................5 PublicAffairs ....................................................................................................................................9 HUMAN RESOURCES Human Resources Administration...............................................................................................................13 Risk Management/Safety/Security.................................................. ..................................................17 FINANCE AND ADMINISTRATIVE SERVICES Administrative Services Administration .......................................................................................................21 FinancialManagement................................................................................................................................25 Contracts, Purchasing, and Materials Management...................................................................................29 InformationTechnology.......................................................................................................... 33 ENVIRONMENTAL SERVICES Environmental Services Administration.......................................................................................................37 ResourceProtection ....................................................................................................................................41 Laboratory, Monitoring & Compliance.........................................................................................................45 ENGINEERING EngineeringAdministration..........................................................................................................................49 Planning.......................................................................................................................................................53 ProjectManagement ...................................................................................................................................57 Design..........................................................................................................................................................61 Construction Management ..........................................................................................................................65 OPERATIONS & MAINTENANCE Operations & Maintenance Administration..................................................................................................69 Collection Facilities Operations & Maintenance..........................................................................................73 FleetServices..............................................................................................................................................77 PlantNo. 1 Operations ................................................................................................................................81 PlantNo. 2 Operations ................................................................................................................................85 PlantNo. 1 Maintenance.............................................................................................................................89 PlantNo. 2 Maintenance.............................................................................................................................93 Hyperlinks are active 2020-21 & 2021 -22 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 2020-21 .....................................................................................................................4 Capital Improvement Expenditure Graphs by Process and Type - FY 2020-21 ...........................................5 ProjectSummary - FY 2021-22.....................................................................................................................6 Capital Improvement Expenditure Graphs by Process and Type - FY 2021-22...........................................7 Summary of Capital Requirements................................................................................................................8 CIPProject Detail Sheets............................................................................................................................12 Summary by Project Status - Collection System Projects...........................................................................87 Summary by Project Status - Treatment & Disposal Projects.....................................................................88 Summary by Revenue Program Category - Collection System Projects....................................................91 Summary by Revenue Program Category - Treatment& Disposal Projects ..............................................92 Proposed Equipment Budget Summary- FY 2020-21 ................................................................................96 Proposed Equipment Budget Detail - FY 2020-21 ......................................................................................98 Proposed Equipment Budget Summary - FY 2021-22..............................................................................100 Proposed Equipment Budget Detail - FY 2021-22....................................................................................102 Section 9 - Debt Service DebtFinancing 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 Go to Table of Contents 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 OCSD 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 accounting summary of the District's Core Values follow this systems and the level at which budgetary guide. The General Manager's budget message 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 2020-21 & FY 2021-22 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 2020-21 & FY 2021-22 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 2020-21 and FY 2021-22. 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 2020-21 & FY 2021-22 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 over time. 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. • 2019-20 Performance Objectives -This section represents the objectives defined by the division for the previous fiscal year. i Go to Table of Contents 2020-21 & 2021 -22 Budget • 2019-20 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 • 2020-21 &2021-22 Performance Objectives - historical staffing by department, a historical A list of projected goals to be accomplished summary and detail schedules of authorized during the 2020-21 and 2021-22 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 2019-20 • Budget Glossary Budget to the FY 2020-21 & FY 2021-22 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 2018-19 actual expenses and the FY 2019-20 budgeted and projected expenses against the proposed budget for FY 2020-21 & FY 2021-22. The percent change from the FY 2019-20 Budget compared to the FY 2020- 21 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. ii Go to Table of Contents OCSD Board of Directors Orange County Sanitation District Board of Directors AGENCY/CITIES ACTIVE DIRECTOR Anaheim Lucille Kring Brea Glenn Parker Buena Park Fred Smith Cypress Mariellen Yarc Fountain Valley Steve Nagel Fullerton Jesus J. Silva Garden Grove Steve Jones Huntington Beach Erik Peterson Irvine Christina Shea La Habra Tim Shaw La Palma Peter Kim Los Alamitos Richard Murphy Newport Beach Brad Avery Orange Mark Murphy Placentia Chad Wanke Santa Ana Cecilia Iglesias Seal Beach Sandra Massa-Lavitt 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) Andrew Nguyen Irvine Ranch Water District (IRWD) John Withers Yorba Linda Water District (YLWD) Brooke Jones County Areas Member of the Board of Supervisors Doug Chaffee iii Go to Table of Contents 2020-21 & 2021 -22 Budget Board Committees STEERING COMMITTEE OPERATIONS COMMITTEE David Shawver, Board Chair Robert Collacott, Chair John Withers, Board Vice-Chair Mariellen Yarc, Vice-Chair Chad Wanke, Chair, Administration Committee Brad Avery Robert Collacot, Chair, Operations Committee Allan Bernstein Peter Kim, LaPA Committee Doug Chaffee Glen Parker, Member-At-Large Brooke Jones Tim Shaw, Member-At-Large Steve Jones Lucille Kring Sandra Massa-Lavitt ADMINISTRATION COMMITTEE Tim Shaw Chad Wanke, Chair Jesus J. Silva Richard Murphy, Vice-Chair Fred Smith James Ferryman David Shawver, Board Chair Cecilia Iglesias John Withers, Board Vice-Chair Peter Kim Mark Murphy Steve Nagel LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE Andrew Nguyen Peter Kim, Board Chair Glenn Parker Allan Bernstein, Board Vice-Chair Erik Peterson Lucille Kring, Member-At-Large Christina Shea Erik Peterson, Member-At-Large David Shawver, Board Chair Christina Shea, Member-At-Large John Withers, Board Vice-Chair David Shawver, Board Chair John Withers, Board Vice-Chair iv Go to Table of Contents District's Organizational Chart Board of Directors Gen eral Gen eral Manager Counsel Office Assistant General Assistant General Manager L Manager -A Human -1 r General Administrative Environmental Engineering Operations Manager Office Resou rces Services Services (117 FTEs) &Maintenance General Human Resources Administrative Environmental Engineering Operations& Management Administration Services Services Administration Maintenance Administration Administration Administration Risk Management/ Financial Planning Board Services Safety/Security Management Resource Collections Protection Project Facilities Public Affairs Contracts, Management Operations& Purchasing& Laboratory, Maintenance Materials Monitoring& Design Management Compliance Fleet Services Construction Information Management Plant No.1 Technology Operations Plant No.2 Operations Plant No.1 Maintenance Plant No.2 Maintenance V Go to Table of Contents 2020-21 & 2021 -22 Budget Administrative Officials Departments General Manager James D. Herberg Assistant General Manager and Director of Finance &Administrative Services Lorenzo Tyner Assistant General Manager and Director of Operations & Maintenance Robert Thompson Director of Engineering Kathy Millea Director of Environmental Services Lan C. Wiborg Director of Human Resources Celia Chandler General Counsel Bradley R. Hogin vi Go to Table of Contents Serving: Orange County Sanitation District 10844 Ellis Avenue, Fountain Valley,CA 92708 Anaheim 714.962.2411 1 www.ocsd.com Brea June 1, 2020 Buena Park Fountain Valley Honorable Chair and Board of Directors: Fullerton I am pleased to submit the Orange County Sanitation District's (OCSD) Proposed Budget for Garden Grove fiscal years 2020-2021 and 2021-2022.This document lays out the framework of OCSD's activities during the next two years and serves as a source of information for OCSD's Board of Huntington Beach Directors,our ratepayers,and our employees. This budget includes the operational,capital Irvine and debt service expenditures necessary to cost-effectively support our mission and execute the Strategic Plan adopted by our Board of Directors in November 2019. La Habra This budget is being submitted at a challenging time for our community,the state,and our La Palma nation amid the COVID-19 pandemic.There are unknowns and uncertainties regarding the Los Alamitos � duration,the immediate and long-term impacts,and what the new"normal"will look like. Newport Beach During the budget preparation and presentation,our staff has been aware of,and has considered this extraordinary situation. Fortunately, under the guidance and policies set by Orange the Board of Directors,the proposed budget reflects a financially sound and stable Placentia , organization capable of weathering this storm. Santa Ana 6 1 would like to highlight some of the areas of focus for the coming years: Seal Beach • Operational Readiness—OCSD has always been a forward-looking agency,whether it is for operational reliability,future infrastructure needs,emergency events such as Stanton spills and storms,or unknown situations such as pandemics.We have Business Tustin Continuity Plans in place,and we conduct regular tabletop exercises for various scenarios to allow us to respond quickly and effectively without compromising our Villa Park mission or levels of service.As we move forward,our efforts will continue to focus on County of Orange planning, preparation, and integration so that regardless of what future situations we face,OCSD will be ready. Costa Mesa Sanitary District • Expanded Recycling Efforts Midway City Sanitary District o Groundwater Replenishment System Final Expansion—In partnership with the Irvine Ranch Orange County Water District(OCWD),our agency recycles enough water to Water District supply the needs of 850,000 people through the Groundwater Replenishment Yorba Linda System (GWRS). Earlierthis year,construction began on the Final Expansion Water District phase of this internationally recognized project.Changes and additions to infrastructure will allow for the treated water from Plant No.2 that is currently �—_—�� underutilized,to be processed at the GWRS facility in Fountain Valley.With this _ final phase,the GWRS will provide a reliable water source for over one million people in central and northern Orange County. A. Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling vll Go to Table of Contents J 11 SANIr,�T ti N a cT a� a r Ea c� Food Waste Treatment Facility—A project created for cities in our service area to satisfy the requirements of California State Assembly Bill 1826 and Senate Bill 1383 which require that organic wastes be diverted away from landfills.This regulatory shift has created an opportunity in the wastewater sector to provide a cost effective and environmentally friendly service to help manage organics using OCSD's existing anaerobic digesters,which in turn will produce renewable energy to power our treatment plants. • Headquarters Complex—In our ongoing effort to streamline our operations and planning,we have acquired 7.5 acres across Ellis Avenue from Reclamation Plant No. 1 in Fountain Valley. The buildings on those properties will be demolished to make room for a consolidated headquarters building to house the staff that are currently located in various buildings and trailers spread out on the existing 100-acre wastewater treatment facility.Adding a headquarters complex will free up needed space for future wastewater treatment infrastructure and will centralize our administrative functions.Today,we are 95 percent complete in design and expect to enter construction in 2021 and be move-in ready by the end of 2023. • Capital Improvement Program—OCSD's Capital Improvement Program (CIP) has evolved over time. It began by focusing on creating the initial infrastructure of the collections and treatment system,shifted to expanding capacity,and now our focus is on aging infrastructure, incorporating climate resiliency,seismic risk,and maximizing resource recovery.During the evolution of this program,one thing has remained;OCSD facilities must operate reliably with sound financial management.While the COVID-19 pandemic has resulted in operational modifications,our CIP has not been significantly impacted.OCSD will continue to construct essential wastewater infrastructure, investing$500 million in wastewater infrastructure in the next year and a half, issuing construction contracts for 37 projects and helping keep the economic engine running in Orange County. • Infrastructure Reliability and Asset Management—OCSD's infrastructure must operate continuously day and night. Reliability must be built into all that we do and that includes managing the condition of our$11 billion in assets to ensure they are running effectively.Over the past two years,we made a concerted effort to establish an updated and more robust understanding of the condition and performance of all critical and major assets and our ability to meet established levels of service.As we embark on another year of this renewed asset management program,we have updated our Asset Management Plan to develop a tactical approach for addressing asset condition and performance issues.The plan lays out how we will operate and maintain those assets to deliver the required level of service at the lowest lifecycle cost with an acceptable level of risk. OCSD will be investing an additional$4 million in repairs and maintenance this next year. Our Mission:To protect public health and the environment by providing effective wastewater collection, treatment, and recycling Viii Go to Table of Contents �14 sAMir T� � � 9 4 l O 1 1 a cip T p�N • 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 all included in this budget,as are enhancements to our physical,electronic, and cyber security infrastructure. • Staffing Cost Containment—While continuing to implement programs to enhance our resiliency,reliability and resource recovery,this budget displays our commitment to efficiency as it includes a small reduction in staffing. OCSD has worked very hard to create an integrated planning environment which begins with the strategic and policy expectations of the Board of Directors and flows down to the work product of each employee. We have worked to ensure communication and transparency among our staff members so that they are aligned and working together in support of the plan. OCSD will continue to provide wastewater collection,treatment, recycling,facilities maintenance,ocean monitoring,and many other services while keeping rates among the lowest in California.This budget fully supports the goals and levels of service included in the Orange County Sanitation District's Strategic Plan and positions us well to proactively manage in the coming years. 4Mq&�19 dj--e-� James D. Herberg General Manager Orange County Sanitation District Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling ix Go to Table of Contents 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. • LEARNING/TEACHING -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. • RECOGNITION/REWARDS We seek to recognize, acknowledge and reward contributions to OCSD by our many talented employees. x Go to Table of Contents Executive Summary This FY 2020-21 and FY 2021-22 budget represents and FY 2021-22 is part of the a consolidation of two one-year proposed operating $5.8 billion for active and future projects identified and capital budgets. OCSD's FY 2020-21 operating within the recently completed Annual CIP Validation and capital improvement budget is proposed at Process. $400.2 million, a 0.1 percent decrease over the prior year budget of$400.8 million. This overall decrease Cost to Collect,Treat and Recycle One Million Gallons is primarily attributable to a decrease of $5.7 million in net Capital Improvement Program (CIP) Outlay, $3,000 and $5.6 million increase in operating costs. $2,534 $2,537 $2,500 $2;451 OCSD's FY 2021-22 operating and capital $2,275 $2,069 improvement budget is proposed at$661.5 million, a $27000 65.3 percent increase from the FY 2020-21 proposed budget. There is an additional $173.9 set aside in the $1,500 budget for early retirement of debt. The remainder of the increase is mostly comprised of a $93.2 million, or 63.1 percent net increase in cash outlays for $1.000 22 construction projects. The fluctuation in capital outlay n 1a 1ctua 19-ge 20 21 21-ge p � p y Actual Actual Budget Budget Budget requirements over the next two years is attributable to the timing of the construction schedule on the OCSD has a variety of revenue sources available to implementation of the overall combined ten-year, fund its operating and capital outlay requirements. As $2.7 billion CIP. shown in the table below, OCSD's major funding resources come from sewer service fees and property The table below summarizes the District's funding taxes: requirements: Funding Sources by Category (in millions) Funding Requirements by Category 2018-19 2019-20 2020-21 2021-22 (in millions) Category Actual Budget Proposed Proposed 2018-19 2019-20 2020-21 2021-22 Beginning Reserves $688.3 $716.8 $843.1 $931.2 Category Actual Budget Proposed Proposed Service Fees 311.8 313.1 320.4 329.1 Capital Improvement Program $163.1 $153.3 $147.6 $240.8 Property Taxes 98.3 96.4 99.9 102.0 Operating Expenses/Self Ins 168.6 170.7 176.3 176.5 Permit User Fees 9.9 9.9 13.0 13.1 Debt Service* 74.5 76.8 72.8 240.6 Capital Capacity Charges 21.0 18.0 20.1 20.7 Intradistrict Transfers 19.7 0.0 3.5 3.5 Interest 28.7 6.6 13.2 12.7 Total Outlays 425.9 400.8 400.2 661.5 Intradistrict Transfers 19.7 0.0 3.5 3.5 Ending Reserves 760.5 786.7 931.2 767.0 Debt Proceeds 0.0 0.0 0.0 0.0 Total Funding Uses $1,186.4 $1,187.5 $1,331.4 $1,428.5 Other Revenue 8.7 26.7 18.2 16.2 w1be fiscal year 2021-22 debt service amount includes a payment of$173.9 mflhm Total Funding Sources $1,186.4 $1,187.5 $1,331.4 $1,428.5 toward the Sanitation District's maturing and callable debt. Budget Overview The agency's two treatment plants, located in This FY 2020-21 and FY 2021-22 budget continues Fountain Valley and Huntington Beach, process a to reflect the agency's ongoing efforts to streamline combined 188 million gallons of wastewater each day operations. Staffing levels are being proposed at generated by approximately 2.6 million people in 639.0 full time equivalent(FTE)positions, a decrease central and northwest Orange County. of 1.0 FTE position, or 0.1 percent over the 640.0 FTE staffing level that was approved for FY 2019-20. The FY 2020-21 proposed budget to operate, maintain and manage our sewage collection, Additionally, service level increases in ocean treatment and disposal system is $173.9 million, an monitoring, discharge and treatment, water increase of 3.4 percent, or$5.7 million, from the prior reclamation and conservation, urban runoff year budget. diversions, biosolids management, CIP expansion, and aging infrastructure costs have resulted in a Contractual services are proposed to decrease $2.8 corresponding increase in cash flow requirements. million, or 12.7 percent, due to less reliance on Considering the CIP alone, the $147.6 million and outside consultants and the reclassification of $240.8 million proposed CIP outlay for FY 2020-21 some of the services into maintenance. Section 1 - Page 1 Go to Table of Contents 2020-21 & 2021 -22 Budget Overhead cost allocation out to the CIP has been Repairs and maintenance costs are being proposed increased by$0.4 million, or 2.2 percent based on an to decrease$4.2 million or 14.8 percent,primarily due updated District-wide full cost allocation plan. to an overall reduction in deferred corrective maintenance completed in previous years. Combined utilities costs for natural gas, electricity, and water are proposed to decrease $0.9 million, or Overhead cost allocation out to the CIP has been 9.6 percent, due to increased operational efficiencies. increased by$0.9 million, or 4.3 percent based on an Offsetting these positive impacts on operating costs, updated the District-wide full cost allocation plan. repairs and maintenance costs are proposed to The cost per million gallons of wastewater treated, an increase $4.9 million or 20.9 percent. This increase industry-wide performance measurement is expected is mostly attributable to increases in basic repairs and to increase in FY 2020-21 to $2,534, a $96, or 3.9 maintenance costs including the overhaul of percent increase over the prior year budget of$2,438, dewatering centrifuges at an estimated cost of $2.0 and increase in FY 2021-22 to $2,537, a $3, or 0.1 million and major rehabilitation of primary and percent increase from the FY 2020-21 proposed secondary clarifiers at both plants is planned for$2.5 budget. The 3.9 percent increase in FY 2020-21 is million. primarily due to the budget increase and the projected wastewater flows through the treatment system from Personnel costs are budgeted to increase remaining consistent at 188 MGD. Wastewater flows $3.6 million, or 3.7 percent, primarily due to the have an inverse relationship to the cost per million increase in budgeted salaries and wages in gallons; the lower the flows, the higher the cost. accordance with previously approved labor Wastewater flows are expected to remain flat at 188 agreements. MGD in FY 2021-22. The FY 2021-22 proposed operating budget is OCSD's CIP net cash flow budget for FY 2020-21 is $174.1 million, an increase of $0.2 million, or $147.6 million, an increase of $28.0 million from the 0.1 percent over the FY 2020-21 proposed budget. prior year estimated total. The CIP cash flow budget for FY 2021-22 is $240.8 million, an increase of Personnel costs are proposed to increase $93.2 million from the FY 2020-21 proposed CIP $5.2 million, or 5.1 percent increase due primarily to cash flow. This CIP two-year cash flow increases in salaries per approved labor agreements, budget finances collection system, joint treatment group insurances and retirement costs. Staffing is works and disposal system improvement projects. being proposed to remain unchanged from the 639.0 These CIP cash flows are attributable to the FTE positions proposed for FY 2020-21. additional infrastructure needs identified in the 2017 Facilities Master Plan and in the 2020 validation of the CIP. FY 2020-21 Uses of Funds Source of Funds Interest --- -- -- -- &Misc Capital Property Facilities \ Taxes 1 Operations �I Debt Fees Service Section 1 - Page 2 Go to Table of Contents 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 2018-19 2019-20 2020-21 2021-22 Actual Budget Proposed Proposed Salaries, Wages & Benefits $102,928,375 $98,434,240 $102,081,800 $107,254,300 Administrative Expenses 1,432,347 2,027,930 2,034,004 1,859,661 Printing & Publication 274,914 329,970 415,375 426,350 Training & Meetings 664,845 1,109,740 1,075,111 968,932 Operating Materials & Supplies 16,945,647 21,008,781 21,460,704 21,330,295 Contractual Services 20,516,256 22,033,974 19,235,353 19,438,502 Professional Services 4,601,991 5,586,170 5,709,648 5,806,912 Research & Monitoring 935,801 1,099,600 1,304,700 1,428,700 Repairs and Maintenance 18,807,050 23,469,642 28,372,645 24,178,807 Utilities 7,795,426 9,250,310 8,364,954 8,378,838 Other Materials, Supplies & Services 3,462,314 4,244,740 4,681,932 4,704,942 Cost Allocation - CIP (19,709,063) (20,378,610) (20,825,710) (21,711,080) Net Operating & Maintenance Expenses $158,655,903 $168,216,487 $173,910,516 $174,065,159 Facilities Planning supply the needs of 850,000 people. Recognizing the The 2017 Facilities Master Plan was adopted in need for a reliable, affordable and high-quality water December 2017. Like previous versions, this latest supply, the District's Board of Directors set a goal of master plan updated planning assumptions, provided recycling 100 percent of all reclaimable wastewater a comprehensive analysis of the condition and flows. OCSD is currently working with OCWD on the capacity of our wastewater infrastructure, assessed design and construction of the final expansion of the new technology opportunities, anticipated regulatory Groundwater Replenishment System over the next changes, and resource recovery options to create a two years. The final expansion is projected to come roadmap of facility evaluation improvements which online in 2023 and will supply enough water for supports OCSD's mission over the next 20 years. one million people. Sewer Service Fee Increases The proposed net CIP outlays for FY 2020-21 and FY In March of 2018, the Board approved rate increases 2021-22 are $147.6 million and $240.8 million, for each year over the next five years. These respectively, and are part of an overall 20-year CIP increases are necessary for compliance with OCSD's outlay of$5.8 billion for all planned active and future debt fiscal policy of balancing the funding of new projects, as well as outlays allotted for future capital improvements with current revenues and rehabilitation and replacement of OCSD's aging existing debt, and to minimize the increase in rates assets and systems. over an extended period of time. Wastewater Recycling The impact of this five-year sewer fee schedule has In partnership with the Orange County Water District increased the single family residence user fee rate, (OCWD), our agency recycles enough water to on average, 1.2 percent a year from $335 in Section 1 - Page 3 Go to Table of Contents 2020-21 & 2021 -22 Budget FY 2018-19 to $351 in FY 2022-23. These rate Business Principles increases by OCSD are still well below the o Budget Control and Fiscal Discipline average annual sewer rate of $529 being charged o Asset Management throughout the State according to the 2016-17 o Cybersecurity California Wastewater Charge Survey by the State o Property Management Water Resources Control Board. • Environmental Stewardship Staffing o Energy Independence Authorized staffing levels are being proposed at o Climate and Catastrophic Event Resiliency 639 FTE positions over the next two-fiscal years, one o Food Waste Treatment FTE position lower than the approved staffing level for o Water Reuse FY 2019-20. However, staffing is still 39 FTE o Environmental Water Quality, Stormwater positions below the agency's all time high of 678 Management and Urban Runoff positions approved in FY 1995-96. 0 Wastewater Management OCSD o Chemical Sustainability budgets staffing levels by FTE positions to o Chemical Management provide a realistic estimate of actual staffing levels o Constituents of Emerging Concern since not all employees are full-time employees. The Workplace Environment part-time positions are funded at 1,040 hours. Part- time employees receive a prorated share of o Resilient Staffing personnel benefits. The reductions from fiscal year o Safety and Physical Security 1995-96 are a result of this agency's effort in striving to provide wastewater treatment as efficiently and The Strategic Plan is not a radical departure from the effectively as possible while reducing operational and current direction, but rather the well-defined iterative maintenance costs to more closely match those update to the direction of OCSD. With the adoption agencies that are "best in class" for wastewater of the Strategic Plan, staff will be updating the Asset treatment facilities. Management Plan, Capital Improvement Plan, and Financial Plan that are the basis of a two-year budget Strategic Planning that will be adopted by the Board of Directors. The In November 2019, the Board of Directors adopted a new comprehensive strategic plan to steer OCSD's Budget goals and the General Manager's work plan efforts. The Strategic Plan developed by the Board of are the accountability steps that measure achievable Directors and staff defines the strategic initiatives to progress toward the strategic initiatives listed in the be pursued by OCSD and provides a basis for long- Strategic Plan. term financial, capital, and operational planning. In addition, it provides for long-term continuity of vision as Board and staff members change over the many years it takes to deliver public works infrastructure. Driven by our Mission, Vision and Core Values, this Strategic Plan continues OCSD's aggressive efforts to protect the public health of the more than 2.6 million people we serve while protecting the environment where we live. The Strategic Plan is broken down into four broad categories with fourteen topic areas that define our responsibilities and the services we provide. These areas are: Section 1 - Page 4 Go to Table of Contents Financial Overview & Budgetary Issues Financial Overview and Budgetary Issues Proposed Operating Budget This section of the budget is a financial overview and The Operating program accounts for the costs to an outline of issues affecting the development of the operate, maintain, and manage OCSD's two budget, as listed below: treatment plants, with a secondary treatment design capacity of 332 million gallons a day, and 388 miles • Proposed Consolidated Cash Flow Budget of collection systems. All the personnel costs for • Proposed Operating Budget OCSD are initially recorded as an Operating cost. • Proposed Net Capital Improvement Outlay Costs chargeable to the Capital Improvement • Debt Service Requirements Program (CIP) are allocated for the work done • Sewer Service Fees & Property Tax Revenues through a job cost system.These charges are shown • Budget Highlights as reductions in the line item Operating program • Individual Collection System budget. Costs remaining in the Operating program • Reserves are ultimately allocated to the two individual revenue • Staffing Levels areas that make up OCSD, the Consolidated Revenue Area and Revenue Area 14, based on • Business Plan flows. • OCSD Long-Term Planning Process • OCSD Fiscal Policies Operational cost,comprised of collections,treatment • GFOA Best Practices and Advisories plant, recycling operations and maintenance, and administration are projected to come in under budget Proposed Consolidated Cash Flow Budget for FY 2019-20 Budget by $6.8 million, or The total proposed cash flow budget for FY 2020-21 4.0 percent. The FY 2020-21 Budget is being is $400.2 million, a 1.4 percent decrease over the proposed with an increase of $5.7 million or prior year total cash flow budget of $405.8 million. 3.4 percent from the prior year budget, and the The total proposed cash flow budget for FY 2021-22 FY 2021-22 Budget is being proposed with an is $487.6 million, a 21.8 percent increase from the increase of $0.2 million, or 0.1 percent over the total proposed cash flow budget for FY 2020-21. FY 2020-21 Proposed Budget. There is also the potential to pay off$173.9 million in debt in FY 2021-22. The decrease in FY 2020-21 in Operations Budget Comparison comparison to the prior year is primarily due to an (in millions) decrease of $5.7 million in Capital Improvement $200.0 $168.2 $161.4 $173.9 $174.1 Program and Future Rehabilitation and Replacement Capital Outlay resulting from a high $150.0 level of design expenditures associated with projects that will be in construction starting in 2021 such as $100.0 Headwork Rehabilitation and Expansion (P1-105), $50.0 Primary Treatment Rehabilitation at Plant 2 (P2-98), Rehabilitation of Western Regional Sewers (3-64), $0.0 and the Headquarters Complex (P1-128). ■19-20 Budget 1119-20 Projected 1120-21 Proposed❑21-22 Proposed The following table shows the comparisons of the FY 2019-20 Budget, and the FY 2020-21 and Analysis on the year-to-year change is provided from FY 2021-22 Proposed Budgets by major budget three perspectives. First, the FY 2019-20 Budget is category: compared to the FY 2019-20 year-end projections. Budget Comparison Secondly, the FY 2019-20 year-end projections are (in millions) compared to the FY 2020-21 Proposed Budget, and $300 lastly,the FY 2020-21 Proposed Budget is compared 241 to the FY 2021-22 Proposed Budget. $200 $168 $174$174 53$147 $77 $73 $67 FY 2019-20 Operations— Budget vs. Projected iT$10o As depicted by the chart above, operating expenses $0 are projected to come in under the FY 2019-20 Operations Capital Debt Svc./LT Liab. Budget by $6.8 million, or 4.0 percent. The major Improvements categories that comprised most of the underage ■19-20 Budget 020-21 Proposed 021-22 Proposed include salaries and wages, operating materials and Section 2—Page 1 Go to Table of Contents 2020-21 & 2021 -22 Budget supplies, professional services, and other operating Full Time Equivalent(FTE)Staff costs. Salaries and wages costs are expected to come in GM 18 under budget by$2.6 million,or 2.7 percent primarily 18 due to unfilled positions and positions being filled at Human 26 entry level. Resources 26 Administrative 101 Operating materials and supplies are expected to Svcs. 101 come in under budget by$1.1 million, or 4.9 percent Environmental 93 primarily due to a reduction in odor chemical usage Svcs. 93 in the collections system as a result of optimization Engineering 117 efforts. 117 O&M 284 Professional services are expected to come in under zsa budget by$1.2 million, or 21.9 percent primarily due 0 100 200 300 to reduced usage of outside engineering and FY20-21 ■FY21-22 consultants, along with not undertaking a staffing Total 639 FTEs Total 639 FTEs study. Other operating costs are expected to come in under Repairs and maintenance costs are proposed to budget by$1.0 million, or 23.5 percent due primarily increase $4.1 million or 16.9 percent over the prior to the unneeded and unspent budgeted contingency year projection. During FY 2020-21 the Bushard and prior year re-appropriation funds. Diversion Structure Repair is planned for$1.1 million major rehabilitation of primary basins, secondary FY 2019-20 Projected Operatina Expense vs. clarifiers and overhaul of new centrifuges at both FY 20-21 Proposed Operating Budget plants is planned for$6.5 million. The FY 2020-21 Operating Budget is a$12.6 million, or 7.7 percent increase over the FY 2019-20 FY 2020-21 Proposed Operations Budget vs, projected operating requirements. Increases in the FY 2021-22 Proposed Operations Budget proposed operating requirements are primarily In FY 2021-22, the second year of this two-year attributable to increases in salaries, wages and operating budget, staff is proposing a 0.1 percent, or benefits and repairs and maintenance. $0.2 million increase over the FY 2020-21 proposed operating requirements. Increases in the proposed Personnel costs are being proposed at $6.3 million, operating requirements are primarily attributable to or 6.5 percent increase over the prior year projection increases in personnel costs, offset by a reduction in mainly due to cost of living adjustments included in repairs and maintenance. the current Memorandums of Understanding (MOU) for all employee bargaining units and increased Personnel costs are being proposed at a 5.1 percent, insurance premiums and retirement contributions. or $5.2 million increase in FY 2021-22 over the There is a proposed decrease of one full time FY 2020-21 Proposed Budget. This increase is equivalent(FTE)staff position bringing the proposed mostly attributable to the cost of living adjustments in total FTE count in FY 2020-21 and FY 2021-22 to salaries based on existing bargaining unit 639.0 FTEs. agreements, and an increase of group medical insurance premiums. Staffing position is proposed to remain at 639.0 FTEs. Operating materials and supplies are being proposed to decrease $4.2 million or 14.8 percent, primarily due to the completion of major maintenance work on the secondary clarifiers at both plants and diversion structures in the collections system. Section 2—Page 2 Go to Table of Contents Financial Overview & Budgetary Issues Proposed Net Capital Improvement Outlay the capital improvement costs will be focused on Proposed capital improvement outlays approximate asset management, rehabilitation, and replacement two-fifths of the overall proposed budget and provide of aging infrastructure. for the improvements, rehabilitation, replacement, expansion and upgrades of facilities at the two Projected FY20-21 Net CIP Outlay treatment plants, including the utility systems, by Project Driver administrative facilities, and the ocean disposal system, and the rehabilitation, replacement and Rehab. expansion of the 388 miles of the collection system and Replace and off-site pump stations. 61% The net CIP outlay has been prepared under assumptions included in the Facilities Master Plan adopted by the Board of Directors in December 2017 and in accordance with the Board approved 2019 Strategic Plan. Ic Plan is a two-year, four-step Regulatory Strategic The Strategic y p 4/o Initiatives management process that creates and maintains Additional 26% vision alignment between the Board of Directors,the Capacity staff, and the public. The Facilities Master Plan 9% defines the District's goals, responsibilities, and The validated CIP includes 70 active and future requirements over the next twenty years. capital projects,five programs, such as the Planning Studies Program (M-Studies) and Small The Facilities Master Plan provides a comprehensive Construction Program (M-FE), and budget for capital analysis of the condition and capacity of OCSD's equipment purchases with a total CIP budget wastewater infrastructure. It also evaluated the authority of$4.18 billion. potential impacts due to anticipated regulatory changes, and incorporated recommendations from The projected outlay for FY 2019-20 for Treatment other recent master planning efforts, such as the and Disposal Improvement projects is expected to Effluent Reuse Study, Biosolids Master Plan, the reach 59 percent of the annual net CIP outlay of Climate Resiliency Study, the Seismic Evaluations $153.3 million. The FY 2020-21 and FY 2021-22 Study and the Collections System(sewers and pump proposed net CIP outlays for Treatment and stations outside the Plants) Capacity Evaluation, to Disposal Improvement projects are $112.7 million create the CIP which supports OCSD's mission over and $212.5 million, respectively. the next 20 years. CIP Program Net CIP Outlays (in millions) The projected outlay for the CIP is expected to reach S212 5 78.0 percent of FY 2019-20 budget of S200 $153.3 million. The proposed net CIP outlays for FY 2020-21 and FY 2021-22 are $147.6 million and $240.8 million, respectively, and are part of an overall 20-year CIP outlay of $5.8 billion for all 1 1 S112 planned active and future projects,as well as outlays allotted for future rehabilitation and replacement of S100 OCSD's aging assets and systems. There are four key drivers that lead to CIP projects: $50 $37 0$28 8$34 9 28-4 (1) Rehabilitation and Replacement; (2) Additional Capacity;(3)Regulatory;and(4)Strategic Initiatives. $0 _____1111111111L I W r n Treatment&Disp_System Collection System As demonstrated by the chart below, the most prevalent CIP project driver is to rehabilitate and ■19-20 Budget E19-20 Projected 020-21 Proposed o21-22Proposed replace aging assets. OCSD is now facing a time when dry weather influent flows have stabilized, and discharged regulations are less dynamic. Most of Section 2—Page 3 Go to Table of Contents 2020-21 & 2021 -22 Budget Large treatment system and support facility projects Series 2010C in December 2010, both as "Build include the Headquarters Complex Plant No. 1 America Bonds" (BABs) fixed rate debt and the last (Project No. P1-128), Headworks Rehabilitation at of the "new" money debt issuances. The American Plant No. 1 (Project No. P1-105), and Primary Recovery and Reinvestment Act of 2009 created this Treatment Rehabilitation at Plant No. 2 (Project No. new financing product, BABs, for the municipal P2-98) with projected expenditures of $6.0 million, issuer. BABs are issued as higher interest taxable $8.9 million, and $8.1 million respectively in FY bonds; however, the U.S. Treasury provides a 35.0 2020-21. Note these projects are heading into percent subsidy on interest payments. The net cost, construction towards the latter half of FY 2020-21 after accounting for the 35.0 percent subsidy and portions of these expenditures include these. payment, frequently results in lower net costs to the issuer, specifically in the maturity years beyond ten 53 percent of the FY 2020-21 net CIP outlay will be years. Based on the market conditions at the time of spent in construction. The four most significant these issuances in comparing the back-loaded BABs construction projects are the Ocean Outfall System new money borrowing to a back-loaded tax-exempt Rehabilitation(Project No.J-117),Westminster Blvd. structure, Series 2010A resulted in present value Force Main Replacement (Project No. 3-62), Return savings to OCSD of $15.2 million, as the debt was Activated Sludge Piping Replacement at Plant No. 2 issued at an all-in true interest cost of 3.7 (Project No. P2-123), and Newhope-Placentia Trunk percent; and Series 2010C resulted in present value Replacement (Project No. 2-72) with projected FY savings to OCSD of $20.0 million, as the debt was 2020-21 expenditures of$26.1 million, $11.6 million, issued at an all-in true interest cost of 4.1 percent. $6.1 million, and $18.4 million, respectively. Further information on these Projects can be found in On March 1, 2013, the federal government Section 8. implemented certain automatic spending cuts known as "the sequester". As a result of the sequester, The Collection System (sewer pipes and pump federal subsidy payments on BABs have been stations) Capital Program projected outlay for FY reduced annually from a high of 8.7 percent for the 2019-20 is expected to reach 19 percent of the federal fiscal year ended September 30, 2013 to a annual net CIP outlay of $153.3 million. The FY low of 5.9 percent for the federal fiscal year ended 2020-21 and FY 2021-22 proposed CIP budget September 30, 2020. authorities for Collection System Improvement Projects are $34.9 million and $28.4 million, In November 2018, OCSD issued $102.2 million of respectively. These proposed improvements are Revenue Refunding Certificate Anticipation Notes, needed to keep the 388 miles of collection systems Series 2018A to refund Revenue Refunding pipelines and the pump stations free from failure. Certificate Anticipation Notes, Series 2016B at a net present value savings of $5.4 million. As a result of Three large projects in the Collection System include having an adequately funded reserves policy, the Westminster Blvd Force Main Replacement experienced management, and prudent planning, (Project No. 3-62), the Newhope-Placentia Trunk OCSD was again able to secure a"AAA"credit rating Replacement (Project No. 2-72), and the from Fitch Ratings and Moody's on this latest debt Rehabilitation of Western Regional Sewers (Project issuance. No. 3-64)with FY 2020-21 proposed cash outlays of $11.6 million $18.4 million, and $4.5 million, This two-year budget proposes no additional new respectively. The Capital Improvement Program is money debt issuances as the $2.7 billion in future described in more detail in Section 8 of this replacement, rehabilitation, and refurbishment document. projects anticipated over the next ten years will be adequately funded through current sewer service fee Debt Service Requirements charges and existing reserves.The FY 2020-21 debt OCSD's long-term debt fiscal policy restricts long- service requirements are proposed at $72.8 million, term borrowing to capital improvements that cannot a decrease of $9.0 million, or 11.0 percent from be financed from current revenue. Before any new FY 2019-20 projected. Total Debt Service debt is issued, the impact of debt service payments requirements for the second year of this two-year on total annual fixed costs will be analyzed. budget will fall to $66.7 million, a $6.1 million or 8.4 percent decrease. OCSD is evaluating paying off a OCSD issued the $80.0 million Wastewater $174 million of debt that matures or is callable in FY Revenue Obligation, Series 2010A in May 2010 and 2021-22 the $157.0 million Wastewater Revenue Obligation, Section 2-Page 4 Go to Table of Contents Financial Overview & Budgetary Issues OCSD's Debt Financing Program is described in Annual Single Family Residential Rates more detail in Section 9 of this budget. (July 2019) Sewer Service Fees San Francisco $1,076 Vallejo $656 The Consolidated Revenue Area has an adopted Contra Costa $598 Sanitary Sewer Service Fee to provide funding for LA City - weJ $597 operating the sewer systems in accordance with the San Diego $573 Clean Water Act and OCSD's Revenue Program. Dublin $447 Revenue Area No. 14 is funded through user fee Sacramento $444 charges to the IRWD. Sewer service fees are East Bay MUD $423 Union adopted in five year increments. Hayward 421 y � $412 OCSD $339 In the fall of 2007, Sanitation District staff conducted IRWD 6;-.� $313 strategic planning workshops with the Board of Fresno $309 Directors to lay out a capital program to deliver the Oro Loma 6iiiiiiiia $275 levels of service desired by the Board of Directors. LA County o $196 These levels of service and resulting capital projects $- $200 $400 $600 $800 $1,000$1,200 are included in OCSD's Five-Year Strategic Plan. This effort was reinforced through the adoption of a In FY 1997-98, OCSD's Rate Advisory Committee, new Master Plan in December 2017, a planning made up of elected city officials, community, effort to define OCSD's goals, responsibilities, and business and industry leaders, and Sanitation requirements over the next twenty years. The 2017 District staff analyzed OCSD's rate structure to Facilities Master Plan defined a CIP consisting of determine whether user fees were equitable among over 80 future infrastructure projects. Collectively, residences and industry. In May of 1998, the Board these projects along with current active projects total approved the proposed revisions to the Sewer over $5 billion of CIP spending over the next 20 Service User Fee rate structure that more equitably years. charged consumers based on actual usage while remaining revenue neutral. Significant changes in The 2017 Facilities Master Plan also included a the rate structure included: Wastewater Revenue Program Rate Study which determined the appropriate rates going forward to support the proposed 20-year CIP. 0 Non-residential user charge will be based upon typical quantity and strength of discharge per In March 2018, following a Proposition 218 notice 1,000 square feet. process,the Board approved sewer rate increases for . Fees for users who discharge high quantities or each year over the next five years averaging high-strength waste, including former Class III approximately 1.2 percent a year, which is less than permittees such as restaurants and the 1.9 percent rate of inflation for 2019. These Laundromats,will be based on the assumed flow increases are necessary to provide needed capital and strength per 1,000 square feet. improvements, to meet additional treatment and Discontinuation of the Class III permit process disinfection requirements, and to minimize future rate because of the implementation of the expanded increases. and more accurate rate structure. This resulted The impact of this five-year sewer fee schedule has in simplification of the billing and collection process for these two hundred users. increased the single-family residence user fee rate, The revised rate structure resulted in a greater the underlying rate for all sewer service user fees,an � number of decreases in charges (22,000) for average of 1.2 percent a year from $335 in FY 2018-19 to $351 in FY 2022-23. non-residential users than increases(13,000). Even with these increases, the OCSD rates are still Overall, the total fees collected remained essentially well below the average annual sewer rate of $529 the same as those generated by the old structure. being charged throughout the State according to the Property Taxes 2017 California Wastewater User Charge Survey OCSD's share of the one percent ad valorem conducted by the State Water Resources Control property tax is dedicated for the payment of COP Board. debt service. The apportionment of the ad valorem Section 2-Page 5 Go to Table of Contents 2020-21 & 2021 -22 Budget tax is pursuant to the Revenue Program adopted in operational activities since each Revenue Area is April 1979 to comply with regulations of the directly responsible for their own collection operating Environmental Protection Agency and the State costs. The Joint Works Operation activities are Water Resources Control Board and in accordance allocated to the Revenue Areas based on their with COP documents and Board policy. individual contributions to the annual sewage flow. Likewise, the Joint Works Capital Improvements are COP Funding Requirements vs. allocated to the Revenue Areas on a three-year Property Tax Funding Source average of sewage flows called the ,,joint works equity percentage", and each Revenue Area is $105,000,000 responsible for their own collection system capital $95,000,000 improvements. $85,000,000 $75,000,000 Details for each department can be found in"Section $65,000,000 6— Operations" of this document. Complete staffing $55,000,000 schedules are located in the Appendix. $45,000,000 or $35,000,000 General Manager's Office $25,000,000 An amount equaling 0.5 percent of the Operating $15,000,000 2005 2010 2015 2019 g materials and services budget is included within the General Manager's Re-appropriation line item Property Taxes COP Service for each of the next two fiscal years. Since the current year's budget lapses each year, re- Historically, OCSD's property tax revenues were at a appropriation of funds is needed to pay for goods higher level than necessary to support OCSD's debt or services ordered at the end of one budget year service obligations. However, capital improvement but not provided until the following year. The needs averaging $200.0 million a year over the last General Manager reviews and approves all ten years has required new COP debt issuances that departmental re-appropriation requests to ensure have increased future debt service payments that that prior year funding was available and has not more closely matches property tax revenues. been spent. • An amount equal to 0.85 percent of the Operating Property tax revenues have increased from materials and services budget is included within $85.7 million in FY 2016-17 to a projected the General Manager's contingency account for $97.9 million in FY 2019-20, primarily due to the each of the next two fiscal years. rebound from the economic decline and the collapse in the housing and commercial property markets Human Resources beginning in 2008. Property tax revenues had been A decrease of $2.8 million due to the insurance projected to increase 5.0 percent a year but are now functions and property and general liability being projected to increase 2.0 percent a year insurance premiums are moving to the through FY 2021-22 due to the global COVID-19 Administrative Services Department in pandemic. FY 2020-21. Any property tax revenue shortfalls in meeting debt A net decrease of 1.0 FTE over the next two service obligations may require adjustments to user years. fees, as making debt service payments are legally mandated. Administrative Services • An increase in salaries,wages, and benefits costs Budget Highlights of$2.7 million in FY 2020-21 is attributable to cost This section briefly outlines the proposed major of living adjustments included in the current changes in all departments over the next two years. Memorandums of Understanding for all employee All plant operating costs and collection system costs bargaining units and the inclusion of insurance are consolidated into the individual department and project controls employees. budgets for better accountability and control. . An increase of $203,000 in contractual service However, separate accounting is maintained costs, $392,000 in professional service costs, between Joint Works Operation activities (treatment and recycling operational costs) and collection $785,000 in utility costs, and $3.0 million in Section 2—Page 6 Go to Table of Contents Financial Overview & Budgetary Issues materials, supplies and service costs primarily major rehabilitation of primary and secondary due to insurance functions, project controls, and clarifiers at both plants is planned for$2.5 million. the consolidation of general Sanitation District A decrease in contractual services of $1 million costs being consolidated within the Administrative due to reduced biosolids hauling costs resulting Services Department. from greater solids thickening as a benefit of new • No net change in FTE over the next two years. centrifuge technology, as well as a reduction in processed solids due to decreased services Environmental Services provided to sister agencies. • An increase in salaries, wages and benefits of . A decrease in odor control chemicals of$500,000. $1.0 million in FY 2020-21 is primarily due to cost of living adjustments included in the current • A decrease in utilities costs of$1 million. Memorandums of Understanding for all employee bargaining units and group medical insurance • No net change in FTE . premiums. • An increase in research and monitoring costs of FY 2021-22 decreases over FY 2020-21 budget: $205,000. • An increase in personnel and benefits costs of • An increase of $340,000 in operating costs will $1.0 million. cover the following expenses: 1) special studies; • A decrease in repairs and maintenance costs of 2) regional monitoring activities; and 3) sampler $4.3 million mainly due to an overall reduction in replacement. deferred corrective maintenance completed in • A net increase of 1.0 FTE over the next two years. previous years. • No net change in FTE. Engineering Reserves • An increase in salaries, wages and benefits of OCSD previously conducted an in-depth review of $234,000 in FY 2020-21 is primarily due to cost of the agency's reserve policies. This review included a living adjustments included in the current survey of the reserve policies of 23 other public Memorandums of Understanding for all employee agencies and is periodically updated. It serves as bargaining units and group medical insurance a tool to assist in the evaluation of the underlying premiums. economic reasons supporting OCSD's reserve • FY 2020-21 proposed CIP outlay of policies. Below are seven distinct reserve $147.6 million, a decrease of $6.7 million, or 4 criterion which together comprise OCSD's percent, over last year's cash flow budget of reserve fund target. $153.3 million. Cash Flow Criterion has been established at a • FY 2021-22 proposed CIP outlays of level to fund operations, maintenance and $240.9 million is an increase of $93.3 million, or certificate of participations expenses for the first 63 percent, from FY 2020-21 proposed budgeted half of the fiscal year, prior to the receipt of the first CIP cash outlay. installment of the property tax allocation and the • A net decrease of 4.0 FTE over the next two sewer service user fees which are collected as a separate line item on the property tax bill. The years. level of this criterion will be established as the sum Operations & Maintenance of an amount equal to six months operations and maintenance expenses and the total of the annual FY 2020-21 increases over FY 2019-20 budget: debt or COP service payments due in August • An increase in personnel and benefits costs of each year. $345,000 primarily due to cost of living Operating Contingency Criterion has been adjustments included in the current established to provide for non-recurring operating Memorandums of Understanding for all employee expenditures that were not anticipated when the bargaining units and group medical insurance annual budget was considered and adopted. The premiums. level of this criterion will be established at an • An increase in repair and maintenance of amount equal to ten percent of the current fiscal $4.7 million mainly due to overhaul of dewatering year's annual operating budget. centrifuges at an estimated cost of$2 million and Section 2—Page 7 Go to Table of Contents 2020-21 & 2021 -22 Budget • Capital Improvement Criterion has been OCSD budgets staffing levels by FTE to provide a maintained to fund annual increments of the CIP. realistic estimate of actual staffing levels since not all The target level of this criterion has been employees are full-time employees. The part-time established at one half of the average annual cash positions are funded at 1,040 hours per year. Part- outlay of the CIP through the year 2030. Levels time employees receive a prorated share of higher and lower than the target can be expected personnel benefits. while the long-term financing and capital improvement programs are being finalized. The staffing reductions from 1995-96 are a result of • Catastrophic Loss, or Self-Insurance Criterion has this agency's effort in striving to provide wastewater been maintained for property damage including treatment as efficiently and effectively as possible fire, flood and earthquake, for general liability while lowering operational and maintenance costs to and for workers' compensation. This reserve more closely match those agencies that are "best in criterion is intended to work with purchased class" for wastewater treatment facilities. However, insurance policies, FEMA and State disaster as the result of new initiatives in the areas of water reimbursements. Based on the plant infrastructure reclamation and conservation, and the expansion of replacement value, the level of this criterion has the CIP, the existing staffing plan was no longer been set to fund OCSD's non- reimbursed costs, sufficient to meet OCSD's needs. estimated to be $100 million. • Capital Replacement/Refurbishment Criterion has 645 been established to provide funding to replace or refurbish the current collection, treatment and 640 recycling facilities at the end of their useful economic lives. The current replacement value of 635 these facilities is estimated to be$10.8 billion.The reserve criterion level had been established at$75 630 million. Authorized FT taffing • Debt Service Criterion has been established at ten 625 percent of the outstanding COP issues. Other debt service reserves are required to be under the 620 control of a Trustee by the provisions of the COP issues. These funds are not available for the 615 general needs of OCSD and must be maintained �N1- �Nb ��° NV NV� b NV NA'�1, �^� ��i off^ at specified levels. • Accumulated Funds exceeding the targets The Appendices within Section 10 provide a Staffing specified by OCSD policy will be maintained for History Summary (by Department and Division) and Capital Improvements and Rate Stabilization. Detail (by position title within each Department and These funds will be applied to future years' CIP Division). needs due to the timing of the actual CIP outlays, in order to maintain rates or to OCSD Planning Environment moderate annual fluctuations. OCSD has developed an integrated planning system that allows for intentional,thoughtful decision making Collectively, these individual criterion requirements to maintain current operations while adding average$520 million a year over the current ten-year resilience and meeting new challenges. This cash flow forecast to support the operation and integrated planning system includes Strategic maintenance of OCSD's $10.8 billion in assets. Planning, Asset Management, Budgeting (Capital Staffing Levels and Operating),a General Manager's work plan, and Authorized staffing levels are being proposed to focused engineering study efforts. While these plans reduce the total FTE position count by one over FY are important, equally important is an organizational 2019-20 at 639 FTE positions over the next two- structure and relationships between employees that fiscal years. However, staffing is still 39 FTE work together toward these common goals. positions below the agency's all time high of 678 positions approved in FY 1995-96. Strategic Planning is the first step. OCSD has developed a strategic planning model that creates a Section 2—Page 8 Go to Table of Contents Financial Overview & Budgetary Issues long-term level-of-service agreement between its longer horizon view optimizes the resources Board of Directors and staff. The Board of Directors necessary to deliver projects by minimizing the use this document to lay out a vision of what the number of projects and more fully scoping the agency will deliver over the next 10 to 20 years. This necessary work at the beginning of the project, is an alignment document to define long-term levels minimizing change orders and disruption. This more of service. The Strategic Plan also serves as a consistent capital and operational funding approach continuity bridge as members of the 25-member tends to level out funding requirements and user Board of Directors come onto and leave the rates. governing body. It is initially important as an education tool for what and why OCSD does what it Once the two-year fiscal budget is approved, staff does, but also allows for new Board members to develops the General Manager's Work Plan for each adjust the vision as it is revised every two years. The of the budget years. The General Manager's Work Strategic Plan is timed to be adopted by the Board of Plan is a list of goals that are specifically linked to the Directors in the November prior to the bi-annual Strategic Plan items. Each goal is specific and budget development. measurably moves the agency toward the vision in the Strategic Plan. OCSD has also created an updated Asset Management Plan. The Asset Management Plan This complete planning cycle is repeated every two details what we own,what condition it is in, and what years. In addition, OCSD is consistently studying it is capable of delivering. This plan is renewed every very important topics that help shape the project and year. OCSD has broken down its facilities by maintenance efforts guided by the planning cycle. drainage areas, pump stations, and treatment plant Some of the important engineering studies include process areas. Each of these discrete areas have a seismic risk evaluations, climate change resilience, plan. One of the key features of this planning method biosolids management, physical and cyber security, is to assume that each area has a life expectancy and constituents of emerging concern. By studying and will need regular refurbishment to maintain the risks and impacts of these, and other issues, resiliency and attain the lowest lifecycle cost. OCSD is able to understand how its facilities must be Corrosion, mechanical wear and tear, electrical and improved or altered in order to deal with new instrumentation obsolescence, and technological requirements or better understood risks. OCSD opportunity must be addressed. It is generally uses the information in each of the studies to assumed that a normal plant process area will have improve the scopes of work for existing projects or a 60 to 80-year life if it is refurbished every 20 years. maintenance activities. Taking the long view to Linear assets like sewers and manholes tend to have adapt the facilities to address long-term risk and a longer life and need attention less often. OCSD opportunity is the most effective way to reach an inspects its linear assets no less than every five intentional, strategically planned vision for OCSD. years to correct defects, rather than replace failed Having a coherently aligned planning process is corroded pipes. It is much more efficient and critical for moving OCSD forward, but it is only half of responsible for OCSD to rehabilitate and extend the the equation. Creating an environment where life of our assets rather than replace once failure people are aligned is the other half. OCSD has occurs. worked hard to utilize both formal and informal The CIP portion of the budget lays out major relationships in and across departments to align refurbishment and replacement projects for each work efforts. Significant work has been done to planning area looking out more than 20 years. define the roles and responsibilities of every Project start dates, scopes of work and cost department, division, and work group. This includes estimates shift based on risks and opportunities what each work group needs and is responsible to identified in the Strategic and Asset Management supply to the rest of the organization. The work Plans, but the overall plan and financial management groups were designed to be interdependent with a move forward every cycle. The operations budget culture of holding each other accountable for also lays out the smaller scale equipment level delivering required services. refurbishments or replacements necessary to keep OCSD has worked very hard to create an integrated the assets working between major projects. This planning environment which begins with the Section 2—Page 9 Go to Table of Contents 2020-21 & 2021 -22 Budget expectations of its Board of Directors and flows down The Strategic Plan is broken down into four broad to the work product of each employee. We have categories with fourteen topic areas that define our worked equally hard to assure our staff members are responsibilities and the services we provide. These communicating and providing transparent services areas are: to each other in support of the plan. • Business Principles CIP Master Planning o Budget Control and Fiscal Discipline The 2017 Facilities Master Plan was adopted in o Asset Management December 2017. Like previous versions, this latest o Cybersecurity master plan updated planning assumptions, o Property Management provided a comprehensive analysis of the condition Environmental Stewardship and capacity of our wastewater infrastructure, o Energy Independence assessed new technology opportunities, anticipated o Climate and Catastrophic Event Resiliency regulatory changes, and resource recovery options o Food Waste Treatment to create a roadmap of facility evaluation o Water Reuse improvements which supports OCSD's mission over o Environmental Water Quality, Stormwater the next 20 years. Management and Urban Runoff • Wastewater Management The 2017 Facilities Master Plan defined a Capital o Chemical Sustainability Improvement Program comprised of over 80 CIP o Biosolids Management projects. However, the budget allotted for each o Constituents of Emerging Concern project must be approved by OCSD Board of . Workplace Environment Directors during the annual budget review. To o Resilient Staffing prepare for this annual budget review, Sanitation o Safety and Physical Security District employees go through a budget validation process. Each CIP project is reviewed to ensure that the scope of the project is appropriate, and that the The Strategic Plan is not a departure from the current cost estimates are accurate. In addition, through the direction, but rather the well-defined iterative update Asset Management Program, the Planning Division to the direction of OCSD. With the adoption of the continually reviews and updates the ongoing and Strategic Plan, staff will be updating the Asset future CIP to appropriately manage the risks Management Plan, Capital Improvement Program, associated with asset or system failure. Future and Financial Plan that are the basis of a two-year projects may be accelerated, delayed, consolidated, budget that will be adopted by the Board of Directors. canceled or rescoped to help ensure that the CIP is The Budget goals and the General Manager's work delivered in the most efficient way possible. plan are the accountability steps that measure Strategic Plan achievable progress toward the strategic initiatives In November 2019, the Board of Directors adopted a listed in the Strategic Plan. new comprehensive strategic plan to steer OCSD's Biosolids Management efforts. The Strategic Plan developed by the Board Biosolids is a resource recovered through the of Directors and staff defines the strategic initiatives wastewater treatment process. OCSD treats to be pursued by OCSD and provides a basis for nutrient-rich, organic matter (solids) to produce long-term financial, capital, and operational biosolids. Biosolids can be recycled through planning. In addition, it provides for long-term composting or fertilizing farm fields (non-food crops continuity of vision as Board and staff members via land application). The District's goal is to ensure change over the many years it takes to deliver public that biosolids management strategies align with works infrastructure. beneficial use of biosolids, existing market conditions and continue a sustainable, reliable, and Driven by our Mission, Vision and Core Values, this economical biosolids management program that Strategic Plan continues OCSD's aggressive efforts provides environmentally sound practices and meets to meet the sanitation, health, and safety needs of the stringent federal, state, and local regulatory the more than 2.6 million people we serve while requirements. protecting the environment where we live. In FY 2018-19, OCSD produced an average of about Section 2—Page 10 Go to Table of Contents Financial Overview & Budgetary Issues 700 tons per day ("tpd") of biosolids at a cost of Urban Runoff $14.66 million, which averaged $57.58 per ton for Recognizing that County beaches were being hauling and recycling at offsite locations, as affected by pollution carried by urban runoff, the described in the table on the following page. Board of Directors adopted a number of resolutions to accept dry weather urban runoff into the sewer The FY 2020-21 budget for biosolids management is system. In June 2002, Assembly Bill 1892 amended $13.2 million, a decrease of 18.5 percent from FY OCSD's charter to formally allow the diversion and 2019-20 with the completion of the$197 million Plant management of dry weather urban runoff flows. No. 1 and the $90.5 million Plant No. 2 Sludge Resolution No. 01-07, adopted March 28, 2001, Dewatering and Odor Control facilities coming online declared that OCSD will initially waive fees and in 2019. These facilities have reduced the water charges associated with authorized discharges of content of the solids which has resulted in fewer dry weather urban runoff to the sewer system until trucks and lower hauling costs. OCSD's biosolids the total volume of all runoff discharges exceeds four production has begun trending down now that these million gallons per day (MGD) based on a monthly new solids management facilities are commissioned. average. For the first 12 years of the Urban Runoff Also noteworthy is that IRWD is constructing solids Program, the average monthly averages remained processing facilities and plans to stop sending their less than the four MGD threshold thus avoiding user solids to OCSD in FY 2020-21. fee costs being assessed to the diversion permittees. Appx. Avg In 2012, OCSD received a number of proposals Tons Cost seeking to establish additional diversions to address Contractor Location Product day perton bacteria and selenium loading to the upper Newport (Mar. (Mar. Bay. The discharge from the additional proposed 2020 2020) diversions combined with the existing diversion flows San would eventually exceed the four MGD fee threshold. Synagro Bernardino, Compost 219 $56.10 CA On June 12,2013,the Board adopted Resolution No. Tule Ranch Yuma,Az Land 223 $58.65 13-09 expanding the waiver of fees or charges on the Application treatment of dry weather urban runoff from 4 to 10 Liberty Kern, CA Compost 115 $57.50 MGD. According to the Board, the change was Compost necessary not only to protect the County's coastal resources, but also to provide an economic benefit Inland San compost 14 $74.02 Empire Bernardino, to the local economy by helping to keep our beaches Regional CA open. Composting The Dry Weather Urban Runoff Program is OCSD's contractors provide fail-safe, back-up administered by OCSD'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 more than runoff and authorizes discharge only during periods ten times OCSD's daily biosolids production to of dry weather. The permit also establishes specific ensure sustainable, consistent, and reliable discharge limits, pollutant monitoring, and flow operations. metering requirements. In addition, OCSD conducts quarterly sampling and analysis of the urban runoff OCSD staff are working to implement the discharges to ensure discharge limit compliance. recommendations of the 2015 Biosolids Master Plan. The plan evaluated the biosolids markets and There are currently 21 active urban runoff diversion technology options for digestion facility replacement structures, three owned and operated by the County at Plant No. 2 in Huntington Beach. This plan will of Orange, 11 owned and operated by the City of serve as the road map for sustainable and cost- Huntington Beach, three owned and operated by the effective Biosolids management options over a 20- City of Newport Beach,three owned and operated by year period and will diversify our biosolids portfolio the IRWD, and one owned and operated by PH by adding a Class "A" option under federal rules for Finance (present owner of the Pelican Hill Resort). biosolids management. On behalf of the Newport Bay Watershed Permittees, the City of Santa Ana is constructing an urban runoff diversion to reduce bacteria and Section 2—Page 11 Go to Table of Contents 2020-21 & 2021 -22 Budget selenium loading to the Newport Bay Watershed. an implementation plan to convey secondary effluent The Santa Ana Delhi Channel Diversion is estimated from OCSD's Plant No. 2 in Huntington Beach using to add 2.0 to 2.6 MGD to Plant 1 influent. new and existing infrastructure to support the GWRS Final Expansion. The GWRS Final Expansion will be Since 1999, OCSD has treated cumulatively over 9.8 funded solely by the OCWD. OCSD currently has billion gallons of dry-weather urban runoff that would two active projects supporting the GWRS Final otherwise have been discharged into the ocean Expansion. The costs of these projects will be without treatment. During FY 2019-20, the daily reimbursed by the OCWD. The Final Expansion of average urban runoff flow ranged between 0.28 and the GWRS is expected to be online in 2023. 1.56 MGD with a cumulative total diversion of 337 million gallons (MG). The diversion flows decreased Fiscal Policies by 27 percent due to fewer operating days that met Included within Section 3 — Pages 1 through 8 is a qualifying conditions for urban runoff diversion. At listing of OCSD's Board Adopted Fiscal Policies. the current operations and maintenance cost per million gallons (CMG) of $1,907 (assuming BOD at These fiscal policies were established purpose of: 20 mg/L and TSS at 50 mg/L), the estimated cost for . sustaining a financially viable Sanitation District; treating the FY 2019-20 combined urban runoff flows . having the flexibility to adapt to local and regional is $642,644. The addition of the Santa Ana Delhi economic changes; and Channel Diversion flows could boost the overall cost . maintaining and enhancing sound fiscal condition to $1,384,225 in FY 2020-21 based on $1,972 CMG of OCSD. and an additional 1 MGD, and $2,767,889 in FY 2021-22 based on$2,037 CMG, assuming the Santa Included within OCSD's fiscal policies are specific Ana Delhi Channel Diversion reaches its full polices for Budgeting, Revenues,Expenses, Capital discharge potential (2.6 MGD) and the Improvements, Vehicles, Short-term Debt, Long- commissioning of the Arches Diversion (0.2 MGD). term Debt, Reserves, Investment, and Accounting, Auditing and Financial Reporting. Groundwater Replenishment System OCSD has taken a multi-jurisdictional approach to GFOA Best Practices and Advisories 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, OCSD entered into an agreement and compliance planning practices recommended by with the Orange County Water Sanitation District the Government Finance Officers Association (OCWD) to design and construct Phase I of the (GFOA) of the United States and Canada. Included GWRS. The capital cost of this Phase was shared within this list of best financial practices for state and equally(50%shares)by each agency.The GWRS is local governments is OCSD's status as to whether a joint effort by the two agencies to provide reclaimed we 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, intrusion barrier. The GWRS became operational in OCSD is in compliance with 102, another 46 are not January of 2008 with a production target of 70,000 considered applicable to OCSD, and we are in the acre-feet per year of potablewater. process of complying with the remaining six. 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 OCSD's Fountain Valley Plant No. 1. In 2016, OCSD and the OCWD completed a $2 million joint study to explore the possibility of using flows from OCSD's Plant No. 2. The study identified Section 2—Page 12 Go to Table of Contents Business Plan OCSD's Strategic Plan is intended to be an prioritizes projects and goals,with recommendations overarching plan based on sound decision making for which goals should go forward for inclusion in that provides direction on the work that OCSD will OCSD budget, and which should be deferred or take on during the next two-year budget cycle and dropped from consideration. what will be deferred. This Business Plan is the underlying foundation for the development of Strategic Goals OCSD's Budget. Over the next two years, OCSD will begin and complete many activities central to the goals of the During the process of developing the Business Plan, organization. In November 2019, OCSD updated the OCSD's Executive Management Team reviewed the Strategic Plan and, as part of the strategic planning proposed work for the upcoming year, balanced it process, outlined four broad categories: with the staffing and funding resources needed and either approved the plan or made reductions. . Business Principles; Reductions in work or resource commitment for the coming year will be considered in light of the Level of • Environmental Stewardship; Service that the agency is committed to and . Wastewater Management; appropriate levels of risk. • Workplace Environment; Elements included in two-year budget includes: (1) These four categories contain fourteen topic areas the Business Planning Process; (2) Strategic Goals, with ongoing initiatives to achieve the goals of the including the timeframe, milestones, and resources plan and OCSD. required for the completion of each step; (3) performance results pertaining to the Current and Level of Service Projected Key Performance Indicators (Level of The Levels of Services were developed with Services); (4) business accountability performance measurable outcomes, or key performance objectives and measures, that are aligned with the indicators, that OCSD is committed to meeting. This updated Five-Year Strategic Plan (these are detailed Business Plan documents that the Levels of Service for each division within the departments in Section 6 provided by OCSD will require $2.7 billion in of this document); (5) Two-Year Staffing Plan; (6) identifiable capital improvements and millions in Financial Model Update; (7) Risk Assessment & increased maintenance and operations costs over Mitigation Analysis; and (8) 2015-17 Asset the next ten years. Management Plan Update. No modifications were made to OCSD's Level of Business Plan Process Service as a result of the November 2019 Strategic The framework for the Business Plan is developed Plan update.The levels of service continue under the as part of the process of updating the Five-Year identified following goals: Strategic Plan. The process for updating the Strategic Plan requires the assistance from all levels . Providing Exceptional Customer Service. of the organization,and includes updating the Mission Statement, Vision Statement and Core Values; and • Protecting Public Health and the Environment. addresses the major objectives and critical . Managing and Protecting the Public's Funds. challenges facing OCSD now, in the next five-years, and further into the future. This Strategic Plan also . Stakeholder Understanding and Support. lays down the foundation for the development of the Business Plan as it addresses critical operations and • Organizational Effectiveness. construction issues, financial and budgeting challenges, and gives a clear and concise direction These existing Levels of Service targets are from the Board of Directors to staff, ratepayers, continually under review. regulatory agencies, and the general public. The Business Plan development process started Staffing Plan with the categories and topics identified within the A comprehensive review was completed on OCSD's Strategic Plan. Staff from across the agencyfurther staffing levels for the next two fiscal years. This defined these goals in terms of level of service, undertaking began with a review of OCSD's vision, business risk exposure, capital and operational mission, goals and objectives. costs, staffing, and long-term financial impacts. The Business Plan identifies the required resources and Section 2—Page 13 Go to Table of Contents 2020-21 & 2021 -22 Budget 1. The Necessity of Updating the Regional Authorized FTE Staffing Sewer Service Fee and the Net Cost of 650 Service Methodology for Industrial Rates - 639 639 OCSD provides regional sewage collection, 640 635 treatment, and disposal services to approximately 550,000 customers located in 630 central and northwest Orange County and collects fees for these services through a 62o special assessment on the Orange County 610 property tax bill. In addition, OCSD also maintains, repairs, and replaces the local 600 sewers for approximately 17,000 of the above 2005-06 2010-11 2015-16 2020-21 550,000. High strength dischargers,or industrial This analysis included review and assessment of customers, pay sewer fees based upon a net each department and division within OCSD with cost of service. A rate study was required to discreet duties and responsibilities. determine the equitable rates for these three types of users. Based on the needs of the agency over time,the total FTE requirement has remained relatively stable over 2. Five-Year Proposition 218 Notice - OCSD's the last ten years,with proposed staffing of 639 FTEs last California Proposition 218 Notice notifying over the next two fiscal years. This is well below the rate payers of potential sewer rate increases high FTE count of 678 in FY 1995-96. Staffing levels over the past five-years had expired and a new are proposed at minimum levels that are necessary to support the operation and maintenance of all 5-year Proposition 218 Notice approved by the facilities in an efficient manner to meet all compliance Board and the justification of the new sewer service fee rates over the next five years requirements. Staff has focused on the reallocation of existing resources in order to balance the needs needed to be supported by an updated sewer within the business units of this agency to ensure rate study. that core business operations are met, levels of Capacity Charge Update - With the adoption of a service are maintained, and that strategic initiative new Master Plan in 2017, OCSD needed to update elements are accomplished. the methodology for Capacity Charges. The proposed two-year staffing plan contains a In their Financial Model Update Report for OCSD significant level of analysis on how existing issued in December of 2017, Carollo Engineers resources can be utilized in consideration of the recommended that OCSD: increasing demands placed on this agency and in support of the $2.7 billion capital improvement program over the next ten years without increasing Based on current operational and capital project staffing levels. A detailed breakdown on the assumptions, implement annual increases of 1.2 proposed reallocation of FTEs can be found within percent, respectively, over a five-year period ending in FY 2022-23. the Appendix section of this budget. Financial Model Update Increase to the unit costs to high strength OCSD's most recent regional rate study was discharges for FY 2020-21 and FY 2021-22, as completed in December 2017 by Carollo Engineers. follows: The purpose of the study was to update sewer Industrial Discharge Sewer Rates service rates and to equitably distribute costs among utility customers and to support OCSD's regional rate $/ 1,000 $/Ibs. $/lbs. structure over a five-year period from FY 2018-19 Gallons B.O.D. T.S.S. through FY 2022-23. Previously, OCSD had Unit Cost-FY 2020-21 $1.54535 $0.66469 $0.75686 completed regional rate studies in 2013,2008, 2006, Unit Cost-FY 2021-22 $1.60128 $0.66799 $0.77700 2002 and 1999. The following two drivers 20-21 % Increase 3.8% 0.5% 2.7% necessitated that a rate study be completed in 2017, and be incorporated into the Business Plan: 21-22% Increase 3.6% 0.5% 2.7% Section 2—Page 14 Go to Table of Contents Business Plan All recommendations from the December 2017 transparency placed on the Board and Sanitation Financial Model Update Report were approved by District management. the Board to ensure that the funding required for the Risk assessment and mitigation includes the additional capacity projects required for new users following steps: would be available at the time of construction. • Identify and assess strategic and organization- Local sewer service fees are based on the Financial wide risks facing OCSD; Model Update Report from April 2008 and remain at $108 per single family residence. • Identify mitigation measures that OCSD currently has in place; In December of 2017, the 2017 Master Plan was • Propose additional mitigation measures that adopted, and because the Capital Facilities Capacity OCSD considers appropriate to manage; and Charges (CFCC) fees are based upon the most recently completed capital strategic plan, staff was • Develop an action plan of responsibilities and directed to include capacity charges in the 2017 rate timeframes for follow-up. study. A prior rate study was completed in 2010. The Risk Register is a compilation of the various risks facing OCSD, as seen and described annually It was determined,as a result of the new Master Plan, by the executive management team and the that future build-out is now projected to be less than managers. Business Risk is defined as a threat that what was anticipated in the previous master plan. an event (action or inaction) will adversely affect OCSD's system currently has unused capacity that is OCSD's ability to achieve its business objectives available to serve future users. In addition, OCSD will and execute its strategies successfully. continue to maintain, improve, and expand the system with future capital improvements. Based upon Executive management and managers continue to this information, a hybrid approach (buy-in and future review risks identified in the Risk Register and cost)to capacity charges was recommended. implement various ways to address those that might impact OCSD. Each Risk Register Update contains Based on the CFCC portion of the rate study in 2017, solutions proposed by participants for the top risks, CFCC and Supplemental CFCC fees are as follows and each Risk Register Update also contains a for FY 2020-21 and FY 2021-22: section recording how OCSD dealt with the risks that CFCC Rates were spotted in the previous Risk Register Update. Residential Commercial/ Asset Management CFCC Industrial CFCC OCSD is committed to providing services for its rate Unit Cost- FY 2020-21 $4,973 $2,082 payers to reliably meet our regulatory mandates and Unit Cost-FY 2021-22 $5,346 N/A levels of service approved by the Board of Directors and will provide these services using sustainable 20-21 % Increase 8.09% 0.2% engineering principles that result in the lowest 21-22% Increase 7.50% TBD responsible lifecycle cost with an acceptable level of risk. OCSD installs,operates, maintains, refurbishes Supplemental CFCC Rates and disposes of assets with lifecycles measured from years to decades, so an approach which $/ 1,000 /Ibs. $/lbs. balances long, medium and short-term needs is Gallons B.O.D. S.S.. necessary. OCSD's Asset Management Program Unit Cost-FY 2019-20 $1.936 $0.41510 $0.22261 has evolved into a comprehensive decision-making Unit Cost-FY 2020-21 $1.948 $0.42755 $0.23151 framework that encompasses engineering planning, design and construction of quality facilities, % Increase 0.6% 3.0% 4.0% optimized operation, proper maintenance, and planned rehabilitation, replacement and refurbishment of assets that will meet OCSD's Risk Assessment Analysis changing needs. This coordinated decision-making Many leading organizations are formally applying process will allow OCSD to consistently meet risk management processes to identify and manage mandated levels of service to the rate payers at the risks across many aspects of their business. The lowest lifecycle cost. formalization of risk management processes is a logical step towards increased accountability and Section 2—Page 15 Go to Table of Contents 2020-21 & 2021 -22 Budget OCSD's Asset Management Plan focuses on the coating systems,atmosphere improvements or small long-term planning of maintenance and capital structure repairs before major damage is done. improvement projects to ensure the proper rate These actions can drastically reduce the cost of structure is in place to support sustainable future projects by preventing the need to demolish operations. These are important starting points and and replace entire structures. have yielded tangible benefits in reduced risk levels and an improved capital planning approach. The OCSD is committed to continuous improvement of implementation of the Maximo Computer the process by which it manages the assets and Maintenance Management System (CMMS) is an facilities that are required to reliably deliver its level example of an effort to improve OCSD's Asset of service commitments. The additional resources Register. CMMS Technicians and the Asset and individual accountability for specific areas has Engineers continue to work to update the database improved, and will continue to improve our capital information including installation date, asset cost, planning, project packaging, project execution and condition and criticality in the new system. delivery, plant operability and maintenance planning. OCSD has been striving to accurately identify The average age and value of the assets OCSD medium to long-term capital cash flow requirements. owns is increasing steadily overtime,the latent asset Specifically, the Engineering Department Planning replacement obligation is rising, and as a Division has developed a 20-year CIP by creating consequence, OCSD needs to plan for decreased specific project plans for the rehabilitation, capital projects for expansion and increased renewal replacement, improvements and expansion for each expenditures in the future relative to past treatment plant or collections area. expenditure levels. Additional focus will need to be given to ensure that appropriate operation and This medium to long-term planning is important for maintenance strategies are being applied that several reasons. By moving away from narrowly consider the different ages of assets being focused projects to solve individual problems, to maintained. more comprehensive projects refurbishing entire processes, OCSD benefits by having less Asset Valuation operational disruption and more efficient project The replacement valuation for all of OCSD's assets delivery, better cash flow estimation, and better has been updated in 2018 as part of the 2017 operations and maintenance decision-making Facilities Master Plan project. The table below framework. This is a huge undertaking based on the presents the current replacement and depreciated number of asset and facilities, but over time the values of OCSD's assets. The replacement value undefined future rehabilitation capital estimates represents the cost in 2018 dollars to completely within the 20-year window are expected to be rebuild all the assets to a new condition. The drastically reduced and replaced by more specific depreciated value is the book value of the assets estimated capital needs. based on their age, which is a prediction of their current condition. Complementing the medium to long-term planning are the short-term efforts to coordinate maintenance Valuation Plants Collections Total actions that can reduce risks, actively defer the Replacement $7.18 $3.56 $10.74 larger refurbishment projects, and reduce asset Value (in billions) consumption rates to minimize the need for Depreciated $2.88 $0.76 $3.64 replacement of structures and conveyance systems Value (in billions) when projects are executed. The Planning Division asset engineers conduct condition assessment, and continuously work with operations and maintenance staff to keep track of the condition of all critical assets, to identify opportunities for operational adjustments or maintenance activities that cost effectively extend the life of key assets which may allow for deferral of the larger overall project. This may be a targeted equipment replacement or pipeline repair that is more urgent than the need of the overall facility.These engineers may also identify opportunities to reduce asset consumption through Section 2—Page 16 Go to Table of Contents Business Plan Planned CIP Outlays The chart below shows the 20-year net CIP outlay which includes current and projected future Capital Improvement Program projects. 20 Year CIP Outlay $450,000,000 — $400,000,000 $350,000,000 $300,000,000 $250,000,000 $200,000,000 — $150,000,000 — $100,000,000 $50,000,000 — $0 ry M o N �v n M 0 o N N N N N N N N N M M M M M M M M M M O N N N N N N N M N N N N N N N N N N N M o ti N M M M M N N M M M M N M M N M M M LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL ■Proposed CIP Outlay for Board Authorized Projects Future CIP,Rehabilitation and Refurbishment Section 2—Page 17 Go to Table of Contents 2020-21 & 2021 -22 Budget Infrastructure Asset Management 0Completed 88% of scheduled pump station preventative maintenance work. OCSD manages and assesses the collection system Cleaned 90% of hot spot and scheduled and treatment plants' assets to improve resilience inverted siphon work. and reliability while lowering lifecycle costs. This is accomplished through adaptive operation, 0 Managed odor control chemical expenses to 75 coordination of maintenance and condition percent of budget. assessment, and planned capital investment. Staff • Continued an electrical safety initiative to reduce will balance maintenance, refurbishment, and potential arc flash by validating protective relay replacement strategies to maximize useful life, settings, replacing obsolete circuit breakers, and system availability and efficiency. installing arc flash rating labels. • In addition, OCSD has improved its emergency Below is a summary of the FY 2019-20 infrastructure preparedness by procuring and preplacing maintenance activities and FY 2020-21 planned bypass piping and fittings for three pump activities. stations. This will allow for more swift response at these locations in the event of a catastrophic Collection System: failure or other emergency. OCSD's collection system consists of 388 miles of sewers, 15 pump stations, and 3 metering stations. Total costs in FY 2019-20 for the collections The maintenance of all regional sewers is actively system maintenance is greater than $9 million. managed but only 230 miles of regional sewers are on a cleaning schedule. The largest sewers and The following activities and goals are planned for FY force mains are design to be self-cleaning using 2020-21: higher flows and natural scouring action. Typical gravity sewer maintenance activities consist of: Clean 49 miles of regional sewer lines on a closed circuit television (CCTV) inspection, physical cleaning schedule. inspection, and cleaning operations. The cleaning • CCTV video inspection of 750 regional system frequencies are based on data from pipe inspections, manholes. CCTV work, process conditions, historical records, 0 CCTV video inspection of 73 miles of regional and industry best practices. Pump station and sewer pipeline. metering station maintenance activities include operating the stations, maintaining electrical, Complete at least 85% of scheduled mechanical and civil components, and cleaning preventative maintenance work. activities. The collection system odors and corrosive 0 Manage odor control chemical expenditures to gases are actively managed for nuisance odor between 95-102 percent of budget. mitigation and asset preservation. 0 Continue to implement emergency preparedness bypass pumping plan for six pump Maintenance activities are based on established stations. levels of service to ensure compliance with our permit required Sewer System Management Plan, The total cost in FY 2020-21 for these proposed which is designed to reduce spills, and increase collections system activities is greater than $11.5 reliability and safety. The planned activities help million. extend the useful life of the assets and minimize Collection System Capital Improvement Projects nuisance odors. OCSD's collections projects go through a planning During FY 2019-20 the following maintenance and design process to ensure all elements of the activities are projected to be completed: project are thoroughly assessed. These projects typically renew or replace aging pipelines and pump • Cleaned 30 miles of regional sewer lines on a stations, address odor issues, upgrade facilities to cleaning schedule. meet current codes, and standards, and in some • CCTV video inspection of 350 regional system instances, increase flow capacity due to growth in manholes. localized portion of our service area. • CCTV video inspection of 50 miles of regional Currently in construction is the Newhope-Placentia sewer pipeline. Trunk Replacement (Project No. 2-72) taking place in the cities of Fullerton and Anaheim. Seven miles Section 2—Page 18 Go to Table of Contents Business Plan of sewer along State College Boulevard, from Yorba The Seal Beach Pump Station is the starting point of Linda Boulevard to Orangewood Avenue, will be the Westminster Blvd. Force Mains. The Seal Beach upsized to allow abandonment of the Yorba Linda Pump Station Replacement (Project No. 3-67) will Pump Station which has reached the end of its useful replace the existing pump station on the existing site life. The pump station diverts reclaimable and demolish the old pump station when the new one wastewater to the Santa Ana River Interceptor is complete. Not only are the electrical and safety instead of the Newhope-Placentia line due to codes significantly different from when the station inefficient capacity, preventing flows to be reclaimed was first construction in the early 1970s, but many of at the Orange County Water District's Groundwater the electrical, mechanical, and control system Replenishment System (GWRS). The completion of components are becoming obsolete, and long-term the project will allow OCSD to recycle an additional maintenance is no longer an option. The project will 8 million gallons of wastewater by routing flows to also include odor control improvements at the pump Plant No. 1 to be reclaimed for GWRS. The project station to minimize both upstream and downstream will also include modifications to existing diversion odors and corrosion. The pump station will connect structures and add flexibility to divert other to the newly constructed Westminster Blvd. Force reclaimable flow. This project also provides Mains. The project is currently in the preliminary adequate capacity for future development, design phase with construction anticipated to begin minimizing the risk of sewer spills in the future. in 2023. The budget for this project is $79 million. Construction of the first phase of the project was completed in fall 2017. The second phase of the In Newport Beach, the Bay Bridge Pump Station project commenced construction in summer 2018 Replacement (Project No. 5-67) will replace the and scheduled for completion in Summer 2021. The existing pump station to meet current building, project has a budget of$112 million. electrical, and safety codes, and to meet projected capacity needs. The existing force mains will also be The Rehabilitation of the Western Regional Sewers replaced and upsized, and will extend from the new (Project No. 3-64) covers approximately 15 miles of pump station location,across the Back-Bay channel, sewers in the northwestern service area in the cities to connect with the existing pipes near the Dover of Anaheim, Buena Park, Cypress, La Palma, Los Avenue and Pacific Coast Highway intersection.The Alamitos, Seal Beach and unincorporated areas of project is currently in the preliminary design phase the County of Orange referred to as Rossmoor. This with construction of both the force mains and pump large project is required to rehabilitate or replace station anticipated to begin in 2023. The budget for portions of the sewers and manholes that were this project is$74 million. installed in the late 1950s and early 1960s. The sewers have multiple deficiencies which have Reclamation Plant No. 1 and Treatment Plant No. 2 allowed the intrusion of ground water. In some Maintenance cases, hard calcium deposits have developed, The maintenance organization continues to making the pipe difficult to clean, and may,overtime, implement industry best practices for safety, impede the wastewater flow. Portions of the pipeline effectiveness and reliability. During FY 2019-20, and over 150 manholes will be rehabilitated or several major initiatives were completed to improve replaced. The project will be completed under three resilience, reliability and lower lifecycle costs. The construction contracts.This project is currently in the first initiative was the formation of a heavy equipment design phase with the first phase of construction maintenance team to conduct in-house maintenance anticipated for 2020. The project budget is $70 of Central Generation and gas compression assets. million. This is a decrease of from the previous The second initiative was creation of an on-call budget of $202 million as a result of changes in the electrical preventive maintenance services contract project elements. allowing electrical staff to focus on predictive maintenance work. The third initiative was formation The Westminster Blvd. Force Mains Replacement of a preventive/predictive maintenance optimization (Project No. 3-62) will replace two existing force team to ensure all new projects are fully ready to be mains that run three miles along Westminster Blvd. maintained when placed in service. It is critical to from Seal Beach Boulevard in the City of Seal Beach provide maintenance immediately when projects to Rancho Road in the City of Westminster. The with complex equipment worth tens of millions of project commenced construction in spring 2020. The dollars are commissioned for service, as well as to budget for this project is $44 million. maintain the equipment data in our computer-based maintenance management system over their lifetime. Section 2—Page 19 Go to Table of Contents 2020-21 & 2021 -22 Budget such as vibration analysis to measure imbalance in Throughout both plants, more than 12,200 rotating equipment, thermography to measure preventative maintenance activities were performed. excessive heat, oil analysis to predict failure of In addition,the following significant maintenance and lubricants, and ultrasonic leak detection to prevent repair activities are projected to be completed in FY deterioration and short-circuiting in electrical 2019-20: equipment. These predictive technologies will not • Installed a new close-coupled pump motor for only improve how maintenance is done but will also the Steve Anderson Lift Station (SALS). provide decision making information to support • Rehabilitated two of three Circular Primary OCSD's CIP. Clarifiers at Plant No. 1. In addition to normal maintenance activities, OCSD • Met NFPA 110 requirements for load testing is planning the following major activities for FY 2020- emergency standby and mobile generators. 21: • Continued an electrical safety initiative to reduce 0 Major maintenance service of 16 remaining potential arc flash by validating protective relay primary sedimentation basins for increased settings, replacing obsolete circuit breakers, and reliability at Plant No. 1. installing arc flash rating labels at both Plants. 0 Major overhaul of one gas compressor at each • Began condition assessment of low and medium Plant. voltage cables to ensure reliability of the . Overhaul of three thickening and dewatering electrical distribution feed at both Plants. Centrifuges at Plant No. 1. • Completed major service on one aeration blower 0 Clean four digesters at Plant No. 1 and three at at the Plant No. 1 Activated Sludge secondary Plant No. 2. treatment process. • Overhaul three Main Service Pump motors at the • Completed overhaul of 24 primary sedimentation Plant No. 2 Headworks. basin collector mechanisms at Plant No 1. • Completed overhaul of one gas compressor at Complete an assessment and repair of failed low Plant No. 1. voltage cables at the Plant No. 2 Headworks. • Cleaned three digesters and replaced their • Overhaul five secondary clarifiers at Plant No. 2. mixing valves at Plant No. 2. 0Replace secondary clarifier inlet gates at Plant • Began the rehabilitation of the steam turbine and No. 2. condenser in the Central Generation Facility at 0Overhaul three dewatering Centrifuges at Plant Plant No. 2. No. 2. • Refurbished an auxiliary boiler at Plant No. 2. Replacement of the truck loading augers, valves Completed major upgrades to Effluent Pump and sliding frame systems at Plant No. 2. • Station Annex Motor driver electronics at Plant The total cost for these proposed plant maintenance No. 2. activities is greater than $24 million. • Refurbished a main sewage pump and motor at Plant No. 2 Headworks. Reclamation Plant No. 1 CIP Projects: These projects are intended to rehabilitate or Total costs for the treatment plant maintenance is reconstruct major components of our treatment greater than $23 million. process to ensure compliance with regulatory permits, enhance water recycling and safety. Looking forward to FY 2020-21, there are more than 12,400 preventative/predictive maintenance One of the largest projects is the Headwork activities scheduled to be completed at Plant Nos.1 Rehabilitation at Plant No. 1 (Project No. P1-105). and 2. This includes typical time or cycle based The facility is over 30 years old, and a maintenance tasks such as adjustments and comprehensive refurbishment is required in order to mechanical alignments, cleaning and tightening of extend the life of the facility. The project will electrical equipment, calibration of sensors and rehabilitate systems including the metering and meters, changing of lubricants and filters, exercising diversion structure, the bar screen building, the bin equipment, rebuilds and regulatory testing. In loading building, the main sewage pump station, the addition, staff will be utilizing predictive technologies grit basins, the primary influent channels, the Section 2—Page 20 Go to Table of Contents Business Plan headworks odor control scrubbers, and electrical stream pumping and piping. Costs associated with power distribution and control systems. Thisproject this project will be reimbursed by OCWD. will also replace the emergency pumping capacity that has been provided by the original headworks As we make improvements throughout the plant, it is pumping system dating back to the 1950s. imperative we pay attention to our ocean outfall Construction is anticipated to begin in 2021.The total system. Many components of the system such as the budgeted cost for this project is $406 million. pipeline assets have already been addressed, so now we turn our attention to the pumping systems To ensure Plant No. 1 has allocated space for future with the Ocean Outfall System Rehabilitation treatment processes, the Headworks Complex (Project No. J-117). Work to the Ocean Outfall (Project No. P1-128) will build new support facilities Booster Station includes rehabilitation of the across from Plant No. 1 on the north side of Ellis mechanical, electrical, and civil systems which will Avenue. Currently, administrative and engineering extend the life of the facility and increase the functions are located primarily at Plant No. 1, and the efficiency of the system. In addition, a new Low Flow buildings that house the staff are aging and need Pump Station will be added due to our increased replacement. The new Headquarters will be a three- water recycling rates, which will reduce our outfall story building for administrative, engineering, flows below the minimum capacity of the existing resource protection and environmental compliance effluent pumps. This project will also relocate the staff. The project includes the demolition of the Risk existing Plant Water Pump Station to prevent water Management trailer and five buildings at the site of that is not reclaimable by the GWRS from flowing the new Headquarters. Construction is anticipated to into the reclaimable portion of the treatment plant. begin in 2021.The total budgeted cost for this project The project will also replace existing electrical is $167.5 million. switchgear at the Central Generation Building. Rehabilitation of the 84-inch and 120-inch interplant Treatment Plant No. 2 CIP Projects: effluent lines between Plant No. 1 and Plant No. 2 These projects are intended to rehabilitate or completed in 2018. The budget for this project is reconstruct major components of our treatment $166 million. Costs associated with the Plant Water process to ensure compliance with regulatory Pump Station will be reimbursed by the OCWD. permits, enhance water recycling and safety. As part of the long-term CIP planning efforts, several The Primary Treatment Rehabilitation Project studies are currently underway evaluating various (Project No. P2-98)will replace or rehabilitate the 14 areas of the plants and the collection system to primary clarifiers at Plant No. 2 with associated determine their condition, and identify deficiencies or influent pipes, construct new primary effluent pipes, improvements needed. These studies include the and rehabilitate and upgrade the odor control Ocean Outfall Condition Assessment and Scoping systems. These facilities date back to the late 1950s Study, ETAP Model (electrical simulation software and need seismic and condition-based upgrades. tool) Updates for Plant Nos. 1 and 2, Digester 6 Pipe The project will replace the four oldest primary Stress Analysis at Plant No. 1, Circular Primary clarifiers. The project has a second construction Clarifier Replacement Phasing Study at Plant No. 1, contract to provide interim repairs to the other ten The Facilities Master Plan Program Environmental clarifiers. The project as a whole will improve the Impact Report, and the Laboratory Rehabilitation resiliency of our infrastructure and thus improve our Feasibility Study. The results of these studies will ability to provide service. This is anticipated to be a help support, define and refine future CIP projects to very long duration project because the need to improve our facilities and systems. maintain treatment operations during the project. Construction to replace the four primary clarifiers is anticipated to begin in 2021. The total project budget is $237 million. The Headworks Modifications at Plant No. 2 (Project No. P2-122)will support the GWRS Final Expansion by separating non-reclaimable flows from those that can be transferred to OCWD for reclamation. The project will include the installation of new gates, replacement of three existing influent pumps at the existing Headworks, and modification of waste side Section 2—Page 21 Go to Table of Contents 2020-21 & 2021 -22 Budget FY 18-19 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. 1.03 MGD Up to 10 MGD Air emissions health risk to community and employees, per one 3 <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 0.0 < 2.1 Contain sanitary sewer spills within 5 hours 100% 100% Meet secondary treatment standards BOD 4.0 mg/L BOD 25 mg/L TSS 6.0 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 2019 Peak Production period. 0 100 Compliance with core industrial pretreatment requirements 99% 100% Stakeholder Understanding and Support Communicating OCSD's mission and strategies with those we serve and all other stakeholders. Meet GWRS specification requirements for Plant No. 1 secondary 3.3 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 4% <— 10% of budget Maintain AAA Bond Rating 100% 100% Section 2—Page 22 Go to Table of Contents Business Plan FY 18-19 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: • Reclamation Plant No. 1 2 0 • Treatment Plant No. 2 1 0 • Collection System 8 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 1.1 <4.4 Industry Average Meet mandatory OSHA training requirements 100% >95% 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 52 45 per year Section 2—Page 23 Go to Table of Contents 2020-21 & 2021 -22 Budget OCSD Long-Term Planning Type of Planning Description of Process Budget Impacts Process Update of the Maintaining a rolling two- In November 2019, the The ongoing process Strategic Plan year, four-step District's Board approved a adapts to changes and management process that 2-Year Strategic Plan. It allows the budget to be re- creates and maintains defines needs and feeds evaluated and refined. vision alignment between into Capital Planning. From the Board of Directors, the there, budget development staff, and the public we will be developed and serve. executed. Capital Master Develop and maintain a 20- In December 2017, the The 2020 CIP Validation, Planning and year capital improvement Board approved a new includes an overall CIP Asset Program (CIP) to meet the Facilities Master Plan that budget of over$5.8 billion Management regulatory, environmental, lays out a capital program for active and future. health, and safety needs of to deliver and maintain the a growing population. levels of service desired by the Board of Directors. This is validated and reinforced every year through Planning Studies and Asset Management. 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 biosolids along with the disposal contract. technologies. centrifuges online. Groundwater Continue partnership with Maximize the use of OCSD will continue Replenishment the Orange County Water treated effluent for water executing CIP projects to System Sanitation District (OCWD) recycling by sending support the Final Expansion (GWRS) in support of the GWRS. secondary effluent from of the GWRS. Plant No. 2 to the GWRS. Section 2—Page 24 Go to Table of Contents Orange County at a Glance Background Information and Description of Pollution Discharge Elimination System (NPDES) Services: ocean discharge permit issued by the USEPA and the Santa Ana Regional Water Quality Control Board. The Orange County Sanitation District (OCSD) is a This permit was last issued in July 2012 and has public agency that operates one of the largest been administratively extended during the renewal wastewater facilities in the United States of America. process. To maintain OCSD's NPDES operating Originally formed in 1954 pursuant to the joint permit, OCSD's plants must meet strict conditions powers provision under the County Sanitation set jointly by the regulators. OCSD is actively District Act of the California Health and Safety Code, engaged in discussion with the regulators during the OCSD then consisted of independent special renewal process. districts responsible for wastewater collection within their own geographical boundaries. These districts OCSD maintains and operates a large system of trunk were co-participants in a Joint Agreement to provide sewers and pump stations in addition to the two for the joint construction, ownership, and operation modern treatment plants. The plants use chemical, of the District's Joint Facilities for the treatment and physical and biological processes to produce a high- recycling of wastewater. quality effluent. Chemicals used are either environmentally neutral or biodegradable. On July 1, 1998, the nineAndividual existing districts requested to be consolidated into one district by The treated effluent from the Huntington Beach plant resolution of the Board of Supervisors of the County is pumped through a five-mile, 10-foot diameter of Orange and special legislation. ocean outfall pipe. The last mile of the outfall is a diffuser section that releases treated water through OCSD is governed by a Board of Directors made up more than 500 portholes approximately four-and-a- of mayors or members of city councils, directors of half miles offshore. independent special districts, and one member from the County Board of Supervisors. A variety of board In January 2008, the Orange County Water District committees, made up of members of the Board of (OCWD) and OCSD began operation of the Directors,consider topics for action by the Board and Groundwater Replenishment System (GWRS),a joint make recommendations to the Board. project by the two agencies to provide reclaimed water for percolation into the groundwater basin from OCSD is responsible for collecting, treating, and most of the secondary effluent pumped from the safely disposing of approximately 188 million gallons Fountain Valley plant, or approximately 92,300 acre- of wastewater each day for an area covering 479 feet per year. square miles in metropolitan (central and northwestern) Orange County. OCSD's service area In May 2015, OCWD completed the initial expansion includes approximately 2.6 million residents and of GWRS that provided an additional 33,000 acre- businesses, or approximately 81 percent of the feet per year of reclaimed water; resulting in the County's total population. purification of 100 percent of the treated wastewater produced at the Fountain Valley plant. Staff of 639 full-time equivalent employees supports OCSD's around-the-clock operation. Staff In November 2019, OCWD and OCSD began is organized into six departments, including the construction on the final expansion of GWRS and will General Manager's Office, Human Resources, be completed by 2023. Once completed, the final Administration, Environmental Services, expansion of GWRS will provide an additional Engineering, and Operations and Maintenance. 36,400 acre-feet per year by utilizing reclaimed water produced at OCSD's Huntington Beach plant. As working environmentalists, OCSD's staff is regulated by many agencies, including the United Community Profile of the County of Orange States Environmental Protection Agency (USEPA), The County of Orange is bordered on the north by California Regional Water Quality Control Board Los Angeles and San Bernardino counties, on the (CRWQCB), CalRecycle, the California Air east by Riverside County, on the southeast by San Resources Board, and the South Coast Air Quality Diego County, and on the west and southwest by the Management District(SCAQMD). Pacific Ocean. Approximately 42 miles of ocean shoreline provide many beaches, marinas and other OCSD operates and is regulated under a National recreational areas for use by residents and visitors. Section 2—Page 25 Go to Table of Contents 2020-21 & 2021 -22 Budget The climate in the County is mild, with an average survey questions about current economic and rainfall of 13 inches. The mean temperature ranges financial conditions experienced the largest declines from a minimum of 47 degrees to a maximum of 82 in consumer sentiment. On the other hand, the degrees. smallest declines in consumer sentiment were observed in economic and financial questions asking The County has become a tourist center in Southern about next year. As noted by Professor Marc California by offering a broad spectrum of recreational Weidenmier of the Argyros School of Business and opportunities that is enhanced by the mild climate. Economics, "Going forward, consumer sentiment in Along the shoreline are five state beaches and parks, Orange County is directly tied to the virus. If social five municipal beaches and five county beaches. distancing and stay at home orders are followed and There are two small-craft docking facilities in Newport work, then consumer sentiment may bounce back Harbor,one located in Sunset Beach and another in rather quickly. However, if the virus continues to Dana Point. spread rapidly across California and the United States,then consumer sentiment is likely to fall even Other major recreational and tourist facilities include farther and possibly approach depression levels." Disneyland, California Adventure, Knott's Berry Farm and Soak City, Mission San Juan Capistrano, Based on a survey of purchasing managers, the the Anaheim Convention Center, and the Art Colony California Composite Index, measuring overall at Laguna Beach with its annual art festival. Also manufacturing activity in the state, decreased from located within the County is Anaheim Stadium, home 59.7 in the first quarter to 45.6 in the second quarter, of the Los Angeles Angels of Anaheim of Major indicating a contraction of the manufacturing sector League Baseball,and the Honda Center, home of the in the second quarter. Hiring in typically strong labor Anaheim Ducks of the National Hockey League. markets including Orange County,the Bay Area, Los Angeles, and San Diego were hit heavily. "The Economic Outlook growth of the California manufacturing economy that The coronavirus (COVID-19) is having an acute started in the third quarter of 2009 will come to an negative impact on the domestic and global abrupt end in the second quarter of this year," said economy as large segments of the economy are Dr. Raymond Sfeir, director of the purchasing essentially shut down. The strength of the US managers' survey. economy prior to the onset of COVID-19, the US consumer and the `service sector' portion of the Progress and visibility on the timing of a vaccine for economy, had been relatively immune to the more COVID-19 will serve as a material catalyst for the cyclical elements economy over the past several ultimate recovery of the economy. Assuming years. At the current juncture, the previous strength additional quarantines are reintroduced later in the is a liability with the US consumer quarantined and year the impact to the economy will be less severe significant portions of the `service' economy shut as all will have learned from the current experience. down. Until forecasters get some visibility on when, and to what degree, the economy will function as Prior to the onset of COVID-19 on the domestic quarantines are lifted later in the year financial economy the data and trajectory of the economy markets across asset classes will remain volatile. were sound. The low unemployment rate and high savings rate should act as a catalyst to get the The Chapman-CMC Orange County Consumer economy back on track sooner compared to other Sentiment Index fell from a value of 96.3 to a value periods of severe financial stress in 2000 and 2008. of 77.7 during the first quarter of 2020. The Large-scale global monetary and fiscal stimulus consumer sentiment index declined by more than 19 programs will help mitigate the longer-term economic percent, the largest decrease since the inception of impact of the pandemic. At this point, a U-shaped the Orange County Consumer Sentiment Index in economic recovery heading into 2021 is possible. 2017. The spread of the coronavirus across the United States and Southern California led to the large fall in consumer sentiment. The consumer sentiment survey yielded important and interesting responses from the survey participants. First, Orange County residents appear to see COVID-19 as a largely temporary economic phenomenon. The Section 2—Page 26 Go to Table of Contents 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 ✓ Sanitation District. To ensure that the value added by every program and activity within the Sanitation District is proportional to its cost; and to ✓ eliminate those programs and activities that do not contribute to the Sanitation 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 Sanitation 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 Sanitation 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 Go to Table of Contents 2020-21 & 2021 -22 Budget In Fiscal Policy Statement Completed Progress Comments Annual budgets including reserves will provide for adequate ✓ design, construction, maintenance and replacement of Sanitation District capital facilities and equipment. The Sanitation District will maintain all physical assets at a level adequate to protect the Sanitation District's capital ✓ investment and to minimize future maintenance and replacement costs. The Sanitation 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 Sanitation District will avoid budgetary and accounting ✓ procedures that balance the current budget at the expense of future budgets. The Sanitation 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 Sanitation District will ✓ be first 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 Sanitation District will maintain a level of expenditures ✓ that provides for the health, safety and welfare of the residents of the community. The Sanitation 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 Go to Table of Contents Fiscal Policy In Fiscal Policy Statement Completed Progress Comments Capital Improvements Budget Policies The Sanitation 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 Sanitation District will develop an annual five-year plan A 20-year CIP Plan for capital improvements, including design, development, ✓ is maintained by the Sanitation District. implementation, and operating and maintenance costs. 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 which capital projects may have a significant impact on on-going operating and maintenance costs and ✓ estimate the impact as the project is developed. Staff will identify the estimated on-going future Operating and Maintenance costs, as well as staffing requirements upon ✓ completion for each capital project proposal before it is submitted to the Board of Directors for approval. The Sanitation 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 ✓ Sanitation 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 Go to Table of Contents 2020-21 & 2021 -22 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 to the asset 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. Completed for • Reliability Centered Maintenance techniques will be critical and high used to optimize the maintenance plans and to ,/ value assets. identify any design alterations that are economically justified. • Current levels of asset management service in terms of quantity and quality of service including condition, ✓ function/size/type, regulatory requirements, reliability, and 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 are performed on the Conditions and condition, performance, and functionality of the performance of Sanitation District's assets against prescribed service ✓ assets are reported regulatory requirements. annually through the levels and re 9 Y q Asset Management Plan. • Future level of service options available and their ✓ associated costs are constantly analyzed. Section 3 - Page 4 Go to Table of Contents 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. Fleet Management Policy Vehicles and equipment will be operated, maintained, and appropriate to the assigned task to ensure the lowest total cost of ownership. The following policies have been established: • A computerized maintenance management system ✓ (CMMS)will be employed for all elements of the fleet. • Vehicles will be operated to ensure the highest ✓ utilization rate possible. • Vehicles may be replaced when they are 7 years old or have accumulated 75,000 miles, or at the optimal replacement cycle per industry best practice. Vehicle ✓ utilization rates will assist in determining vehicle acquisition needs. Electric carts are to be utilized for in-plant use only. ✓ Short-Term Debt Policies The Sanitation 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. Section 3 - Page 5 Go to Table of Contents 2020-21 & 2021 -22 Budget In Fiscal Policy Statement Completed Progress Comments The Sanitation 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 Sanitation 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 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 reserve will be established to provide for non-recurring operating expenditures that were not anticipated when the annual budget was considered and ✓ adopted. The level of this criterion will be established at an amount equal to ten percent of the current fiscal year's annual operating budget. A capital improvement reserve will be maintained to fund annual increments of the capital improvement program. The target level for this criterion has been established at one half of the average annual cash outlay of the capital improvement ✓ program through the year 2030. Levels higher and lower than the target can be expected while the long-term financing and capital improvement programs are being finalized. Section 3 - Page 6 Go to Table of Contents Fiscal Policy In Fiscal Policy Statement Completed Progress Comments A renewal/replacement reserve will be maintained to provide funding to replace or refurbish the current collection, treatment and recycling facilities at the end of their useful economic ✓ lives. The current replacement value of these facilities is estimated to be $10.8 billion. The reserve criterion level had been established at$75 million. Catastrophic loss, or self-insurance, reserves will be maintained for property damage including fire, flood, and earthquake, for general liability, and for workers' compensation. This reserve criterion is intended to work with purchased insurance policies, FEMA and State disaster ✓ reimbursements. Based on the plant infrastructure replacement value, the level of this criterion has been set to fund the Sanitation District's non-reimbursed costs, estimated to be $100 million. Investment Policies The Sanitation 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 Sanitation 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 Sanitation District assets, their condition, historical cost, ✓ replacement value, and useful life. 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 Sanitation District will maintain a good credit rating in the The Sanitation financial community. District's AAA rating ✓ was reaffirmed with the$66.4 million 2017A Revenue Refunding debt issuance. Section 3 - Page 7 Go to Table of Contents 2020-21 & 2021 -22 Budget In Fiscal Policy Statement Completed Progress Comments 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 Go to Table of Contents 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 in Enterprise Funds Sanitation District 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 Go to Table of Contents 2020-21 & 2021 -22 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 Collateralization of Public Deposits ✓ Government Relationships with ✓ Securities Dealers Using Mutual Funds for Cash ✓ Management Purposes Section 3— Page 10 Go to Table of Contents 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 Go to Table of Contents 2020-21 & 2021 -22 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 ✓ Budggeting 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 Go to Table of Contents 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 Go to Table of Contents 2020-21 & 2021 -22 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. Issuer's role in Secondary Market ✓ Meet qualifications of arbitrage Securitization 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 ✓ Issuer's Role in Selection of ✓ Underwriter's 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 Go to Table of Contents 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 Go to Table of Contents 2020-21 & 2021 -22 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 Deferred Compensation Plan Health Care Cost Containment ✓ Evaluating Use of Early Retirement Incentives ✓ Deferred 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 Go to Table of Contents 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 Sanitation District Policy assets and 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 Go to Table of Contents 2020-21 & 2021 -22 Budget This page was intentionally left blank. Section 3— Page 18 Go to Table of Contents Overview of the Budget Process Financial Review Issuance of Budget of Performance Training and Instructions Administration of Districts Budget Finance/Policy in Budget Development Execution/Feedback Executive Board Compilation/Analysis Enactment of District's Requests R by Financial/Planning Consideration of Budget General Manager's by District's Board Review and Preparation and Committee of Executive Budget Budget Process: Preparation/Planning -takes place from January through March. Fourteen years ago, OCSD prepared its first 0 Integration - runs from March through May. complete budget document covering two years instead of one. The next year a smaller budget 0Passage-adoption of the budget usually occurs update document was prepared to summarize in June of each year. revisions to the second year of the previously adopted 0 Execution-starts from the first day of the budget two-year budget period. This two-year cycle year, July 1, through the entire budget year and approach to budget preparation is expected to beyond into November with the presentation of continue for the indefinite future. the annual audit report. Key dates in this 2020 budget cycle are: This change has not caused any modification to the Budget Kick-off Meeting - January 23 previously established stages of the annual budget Department Budget Submissions - February 20 process except with regard to the level of detail which Preliminary Budget Review - March 9-12 is provided. The timing of all stages of the budget General Manager Budget Review - March 23-27 process remains consistent from year to year. In the Presentation to Admin Committee - March 11 second year of a two-year cycle, however, the focus Presentation to Admin Committee -April 8 is on any changes that need to be made to the Presentation to Board Committees - May 6 & 13 upcoming year's budget relative to what was Presentation to Board Committees -June 3 & 10 previously submitted, reviewed,and approved for that Public Hearing & Board Adoption -June 24 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: I coordinators. Section 3— Page 19 Go to Table of Contents 2020-21 & 2021 -22 Budget After the initial divisional budgets are prepared, is exercised at the individual Department level. budget review sessions are scheduled for each Administrative policies provide guidelines on budget division with the General Manager. It is during these transfers and the authorization necessary to sessions that all proposed staffing levels, programs, implement transfers. Generally, there are two types and line item expenses are justified. Next senior of budget transfers: management representatives from each department analyze opportunities for consolidating programs and 1. Budget Adjustment eliminating unnecessary requests. Guidance is also sought and utilized from District's committees on This is a transfer which does not change the total various issues that affect budget development. appropriated amount and does not require Board action. Depending on the budget category affected The Process by the transfer, approval may be granted at the General Manager or Department Head level as The budget preparation process begins in January follows: with the distribution of the budget manual, budget preparation training, and issuance of personnel Department Heads have discretion to reapportion budget and justification forms, and equipment budget funds between certain line items within a division but forms to all of the Divisions. may not exceed total appropriated amounts for each department. They also may transfer staff across In March, the Administrative Services Department divisional lines within their department. The General develops divisional level budgets based on the Manager and Board of Directors must approve request forms received from the various divisions. additional capital outlay items. Funds appropriated These divisional budgets are then reviewed in mid- for salaries and benefits may not be expended for any March by the General Manager along with the other purpose unless approved by the Board. The Department and Divisional managers for each General Manager may transfer operating funds within program request and for new, additional, or reduced and between divisions and departments. The services, positions, and capital outlay. Every month General Manager may also transfer staff positions from March until June, an update is given to the between departments. Administration Committee. The Capital Improvement Program requests are 2. Budget Amendment: prepared from October through March and are This is an adjustment to the total appropriated reviewed by Engineering and Department and amount, which was not included in the original Divisional managers prior to being submitted to the budget. These supplemental appropriations require General Manager for review and evaluation as part of formal action by the Board of Directors. Types of the budget process. modifications can be categorized as follows: In determining recommended allocation levels, the Prior year reserves or fund balances may be General Manager takes into consideration the appropriated to fund items not previously projected amount of available resources, direction included in the adopted budget. provided by the Directors, the District's fiscal policies, and how to best provide the most cost-effective and Reserves/fund balances exceeding minimum efficient service levels to the public. After a final amounts required by fiscal policy may be review of the operating budgets by the General appropriated if it is determined to be in the best Manager, the proposed annual budgets are finalized interest of OCSD. Directors may also in late May and then distributed to the Directors for appropriate reserves in case of emergencies or consideration. unusual circumstances. The General Manager presents the proposed budget Transfers between Revenue Areas require formal to the various Directors' Committees for deliberations action by the Board of Directors. throughout the month of June. The proposed budget 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, Section 3— Page 20 Go to Table of Contents Budget Assumptions 2020-22 Proposed Budget Assumptions 0 Annexable property in the District's service area sphere is minimal; consequently, no FY 2020-21 income from annexation fees is anticipated. Economic Assumptions • Inflation for Orange County in FY 2020-21 is 0 Property tax revenues are preliminarily projected to be 1.9 percent based on the 2019 estimated to increase by approximately five projected percentage change in consumer price percent from FY 2019-20 to $98,354,000. index obtained from Chapman University. A two percent annual increase in Assessed A 1.9 percent inflation factor will also be used for Value is authorized by the state constitution and FY 2021-22. 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 $4 (1.2 percent) to $343 in 1.0 percent of the average cash and investment FY 2020-21, which is less than the projected balance projected for the fiscal year. CPI. No additional debt issuance is scheduled for • Note that each $1 increase in the SFR rate FY 2020-21. generates approximately$900,000 per year. • The capital facilities capacity charge (CFCC) fee Operating Assumptions captures only those infrastructure costs that 0 Operating expenses are expected to relate to additional capacity. The proposed approximate the adopted FY 2019-20 budget of CFCC fee to be approved by the Board in March $168 million. 2018 will increase by eight percent for FY 2020- 21. Other infrastructure costs such as improved 0 Average daily flows are projected at 188 mgd for treatment, rehabilitation, refurbishment, and FY 2020-21 and 188 mgd for FY 2021-22. The replacement, will be supported through user FY 2019-20 flow projection of 188 mgd reflects fees. an increase of 1 mgd from the actual for the first 5 months of the current year and is 2 mgd above • Given the Facilities Master Plan adopted in the final actual flow for FY 2018-19. December 2017, a rate study was completed in December 2017 to ensure that the CFCC fee Employee/Staffing Assumptions methodology remains equitable and to confirm Staffing level is expected to remain flat. No that an appropriate share of system costs would additional positions are anticipated. The total be recovered from new development. FY 2019-20 authorized staffing level is 640.00 FTEs, excluding Management Discretion • Revenues will be budgeted to reflect little growth positions. in Equivalent Dwelling Unit (EDU) connections that have remained flat over the past five years. Vacant positions as of 12/31/19 are budgeted at 50 percent of step 1 for the remainder of • Permit user rates for flow will increase by 3.8 FY 2019-20 and at 100 percent of step 2 for percent, Biochemical Oxygen Demand (BOD) FY 2020-21. will increase by 0.5 percent and Total Suspended Solids (TSS) will increase by New positions will be projected at 2.7 percent for FY 2020-21 based upon the Rate 100 percent of step 1 for FY 2020-21. Study completed in December 2017. • Annexation fees capture both the net current assets and the equivalent property tax allocations totaling $4,235 per acre. Section 3— Page 21 Go to Table of Contents 2020-21 & 2021 -22 Budget • A 3.0 percent vacancy factor on authorized An amount equal to 0.85 percent of the positions has been budgeted for FY 2020-21. Operating materials and services budget will be The actual vacancy factor is currently running at the General Manager's contingency budget. 4.7 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, 2022. Salary adjustments will be included in the budget for COLA based upon the current Capital Improvement Program Assumptions MOUs. • The FY 2020-21 and FY 2021-22 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 14.10 percent of the employee's base salary for FY 2020-21, up from 13.30 percent in The baseline CIP cash flow for FY 2020-21 is FY 2019-20. The rates for Plans G and H $209 million and for FY 2021-22 is $314 million. include the District's pickup of 3.5 percent of employees' required contributions. 0 Continual evaluation of the CIP by the Asset Management Team may result in deferral or Employees enrolled in OCERS Plan B are reduction of some projects and a resultant estimated at a rate of 11.97 percent of the increase in O&M repair costs for materials and employee's base salary for FY 2020-21, up from services, if the net cash flow impact is a 11.25 percent in FY 2019-20. decrease. All employees hired on or after January 1, 2013 9 The FY 2020-21 and 2021-22 CIP budget will are enrolled in OCERS Plan U and are only increase for critical projects which were not estimated at a rate of 10.88 percent for FY previously identified in the Strategic Plan 2020-21, up from 10.37 percent in FY 2019-20. Update. Interns are not enrolled in OCERS so their 0 For the first five months of FY 2019-20, retirement benefits are calculated at 6.2 percent $39.2 million of the $153.3 million CIP budget, (FICA rate). approximately 25.6 percent, was expended. • Other employee benefits and insurances will be budgeted to increase in FY 2020-21 and Debt Financing FY 2021-22 by moderate but yet to be 0 OCSD will issue new debt in the form of determined amounts. Certificates of Participation (COP) as needed to fund the CIP and to maintain reserves. Materials, Supplies & Services Assumptions 0 No additional debt issuance is scheduled for • The proposed operating budget will continue to FY 2020-21 and FY 2021-22. reflect an emphasis on safety, security, and maintenance of plant assets and infrastructure. 0 Debt will only be used for CIP and capital expenses, not for operating expenses. • An amount equal to half of one percent of the Operating materials and services budget will be 0 Capital financing plans no longer include future a contingency for prior year re-appropriations. borrowings over the next ten years as the Since the current year's budget lapses on approved user fee schedule is considered June 30, a contingency is needed in the sufficient. succeeding budget year for goods or services ordered at the end of one budget year but not 0Borrowing is proposed only for facilities which do delivered until the following year. not add capacity and that are funded by all users Section 3— Page 22 Go to Table of Contents Budget Assumptions for replacement, rehabilitation, and improved This criterion amount will assist OCSD with treatment. any short-term funding needs until Federal and State assistance becomes available. • Upon COP's becoming callable or maturing, a determination will be made as to the benefit of No. Accumulated capital funds will be set aside for paying off the obligation or refinancing the debt. certain specific, short-term capital improvements as the need and availability arise. Reserve Assumptions The existing reserve policy is summarized as No- A capital replacement/renewal criterion has follows: been established to provide thirty percent of the funding to replace or refurbish the current ► A cash flow criterion will be established to fund collection, treatment and disposal facilities at the operations, maintenance and certificates of end of their useful economic lives. 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 $3.56 billion for the collection facilities and item on the property tax bill. The level of this $7.18 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 $75 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 August each year. portion of the annual sewer user fee, in order to meet projected needs through the year 2030. ► An operating contingency criterion will be established to provide for non-recurring ► Provisions of the various certificates of expenditures that were not anticipated when the participation (COP) issues require debt service annual budget and sewer service fees were reserves to be under the control of the Trustee considered and adopted. The level of this for that issue. These reserve funds are not criterion will be established at an amount equal available for the general needs of OCSD and to ten percent of the annual operating budget. must be maintained at specified levels. The current level of required COP service reserves is ► A capital improvement criterion will be projected to be $170.8 million. maintained to fund annual increments of the capital improvement program. The long-term ► Accumulated funds exceeding the levels target is for one half of the capital improvement specified by District policy will be maintained for program to be funded from borrowing and for future capital improvements and rate one half to be funded from current revenues and stabilization. These funds will be applied reserves. With this program in mind, the target to future years' needs in order to level of this criterion has been established at maintain rates or to moderate annual one-half of the average annual capital fluctuations. There is no established target for improvement program over the next ten years. this criterion. ► A catastrophic loss, or self-insurance, criterion Miscellaneous will be maintained for property damage including fire, flood and earthquake, for general liability 0 The budget document will be in a bi-annual and for workers' compensation. This criterion is format with two, one-year budgets presented intended to work with purchased insurance for FY 2020-21 and FY 2021-22. policies, FEMA disaster reimbursements and State disaster reimbursements. The potential 0 The budget worksheets for operating costs will infrastructure loss from a major earthquake, of contain one column for FY 2020-21 and one which OCSD currently has limited outside column for 2021-22. The column will represent insurance coverage of $25 million, has been all collection, treatment, and disposal/reuse estimated to be as high as $1.3 billion. The costs. level of this criterion has been set at $100 million should such a catastrophic event occur. Section 3— Page 23 Go to Table of Contents 2020-21 & 2021 -22 Budget This page was intentionally left blank Section 3— Page 24 Go to Table of Contents Accounting System & Budgetary Control Accounting System and Budgetary Control Fund Accounting & Proprietary Funds Internal Controls The accounts of OCSD are organized within one OCSD is responsible for establishing and Enterprise Fund, a Proprietary Fund Type. The maintaining an internal control structure designed District's Enterprise Fund is comprised of two to ensure that the assets of the government Revenue Areas which are identified as Revenue Area are protected from loss, theft, or misuse and to 14 and the Consolidated Revenue Area (Revenue ensure that adequate accounting data are compiled Area 15). Each Revenue Area includes a share of to allow for the preparation of financial capital outlay activities, self-insurance activities, debt statements in conformity with generally service activities, and operating activities. These accepted accounting principles. The internal activities are allocated to each Revenue Area based control structure is designed to provide reasonable, on sewage flows, location, or level of participation in but not absolute, assurance that these objectives specific programs. are met. The concept of reasonable assurance recognizes that the cost of a control should not Enterprise Funds are used to account for operations exceed the benefits likely to be derived and that that are financed and operated in a manner similar to the valuation of costs and benefits requires a private business enterprise, where the costs estimates and judgments by management. (expenses, including depreciation)of providing goods or services to the general public on a continuing basis Budgetary Control are financed or recovered through user charges. Budgetary controls are maintained to ensure compliance with legal provisions Basis of Accounting embodied in the annual appropriated budget approved by the Board of Directors. The budgetary Basis of accounting refers to the point at which level of control, the level at which operating revenues and expenses are recognized in the expenses cannot legally exceed the appropriated accounts and reported in the financial statements. amount, is exercised at the department level. 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 OCSD. Although OCSD 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, OCSD 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 Go to Table of Contents 2020-21 & 2021 -22 Budget Orange County Sanitation District Fund Structure Diagram OCSD Enterprise Fund Consolidated Revenue Revenue Area Area 15 14 Each Revenue Area Self- De:AbtCapitalOperating Servis comprised of Operating, 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 Go to Table of Contents Revenue Sources Revenue Sources 1.8 percent over the prior year. This increase is primarily attributable to the 1.2 percent increase in OCSD has a variety of revenue sources user fees that is expected to generate an additional available for operating and capital expenses. The $3.6 million. Property tax revenue is expected to major revenue sources are as follows: generate an additional increase of $2.0 million, or another projected increase of 2.0 percent over the • User Fees prior year. • Property Taxes • Industrial Waste Permit User Fees Property Taxes • Interest Earnings The County is permitted by State law(Proposition 13) • Debt Proceeds to levy taxes at one percent of full market value (at time of purchase) and can increase the assessed These sources have generally accounted for value no more than two percent per year. OCSD 90 percent more than of the total revenue to receives a share of this basic levy proportionate to the OCSD. amount that was received in the 1976 to 1978 period less $3.5 million, the amount that represents the The following graph summarizes revenues from all State's permanent annual diversion from special sources for OCSD over the past two fiscal years, the districts to school districts that began in 1992-93. current year, and through the following two proposed budget years: Property Taxes (in millions) Five Year Trend Revenues(in millions) Five Year Trend $104.0 $102.0 .0 $520.0 102.0.0 $98.3 $98.0 $99.9 $$10 $98 $498.1 $488.3 $497.3 100 $500.0 $476.9 $94.2 $480.0 $96.0 $94.0 $460.0 $440.6 $92.0 $440.0 $90.0 $420.0 2017-18 2018-19 2019-20 2020-21 2021-22 $400.0 Actual Actual Projected Proposed Proposed 2017-18 2018-19 2019-20 2020-21 2021-22 Actual Actual Projected Proposed Proposed The District's annual share of the one percent ad valorem property tax levy is first dedicated for the Total revenues increased from $440.6 million in payment of COP debt service. The apportionment of FY 2017-18 to$498.1 million in FY 2018-19, or$57.5 the ad valorem tax is pursuant to the Revenue million. This increase was due mostly to: Program adopted in April 1979 to comply with (1) an increase of$21.0 million in intra-district equity regulations of the Environmental Protection Agency, sale/purchase between the Consolidated Revenue the State Water Resources Control Board, and in Areas and Revenue Area 14; (2) the $25.8 million accordance with COP documents and Board policy. increase in investment and interest income; (3)a$3.0 million increase in permitted user fees due to higher As shown in the graph above, property tax revenues rates and an increase in the strength of the discharge increased from $94.2 million in FY 2017-18 to a from the permittees. projected $98.0 million in FY 2019-20, primarily due to the robust economy and strong housing and In FY 2020-21, revenues are being proposed at commercial property markets beginning. Property tax $488.3 million, an increase of $19.9 million, or revenues are now being projected to increase 2.0 4.3 percent over the prior year budget. This increase percent per year through FY 2021-22. is primarily attributable to the increases of $11.6 million in CIP reimbursements from other agencies, Historically the District's property tax revenues $4.3 million in general user fees, and $1.9 million in exceeded the District's debt service obligations. This property taxes revenue. trend should continue with debt service obligations leveling off and no new planned COP debt issuances In FY 2021-22, revenues are being proposed at $497.3 million, an increase of $9.0 million, or Section 3 - Page 27 Go to Table of Contents 2020-21 & 2021 -22 Budget approximately 1.2 percent a year. These increases COP Obligations Property Tax Receipts are necessary to balance the funding of operating (inn millions) expenses and capital improvements with current $150.0 revenues and existing debt, and to minimize the $100.0 increase in rates over an extended period of time. $50.0 The impact of this five-year sewer fee schedule increased the single-family residence user fee rate, $0.0 the underlying rate for all sewer service user fees, an 2010 2015 2020 average of 1.2 percent a year from $335 in Property Taxes COP Service FY 2018-19 to $351 in FY 2022-23. These rate increases by OCSD 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 variable, in proportion to the user's demand on the $310.0 $301.8 $306.5 system. $305.0 $298 8 $300.0 $293.1 In addition, the Consolidated Revenue Area charges $295.0 $288.3 industrial and commercial user fees to customers $2 $285.0 .0 discharging high-strength or high-volume wastes into $280.0 the sewer systems. Revenue Area No. 14 needs are $275.0 funded by IRWD. Previously OCSD had been able 2017-18 2018-19 2019-20 2020-21 2021-22 to avoid or minimize user fee increases by Actual Actual Projected Proposed Proposed reducing operational costs through reorganizing and streamlining District operations. As a result of the Interest Earnings capital improvement program expansion and the Interest earnings are generated from the investment rehabilitation and refurbishment of existing facilities, of accumulated reserves consisting of a cash annual increases in user fees are required. flow/contingency, a capital improvement, a capital replacement/refurbishment, and a self-insurance In 2007, District staff conducted strategic planning workshops with the Board of Directors to layout a reserve, all projected to total $845.8 million at July 1, capital program to deliver the levels of service desired 2020. by the Board of Directors. These levels of service and The District's reserves are invested in accordance resulting capital projects are included in the District's with the District's investment policy and the State 5-year Strategic Plan that were most recently updated Government Code through an outside money in December 2019. The original effort was reinforced manager, and an independent custodian bank. through the adoption of a new Master Plan in December 2017, a planning effort to define the Interest and investment earnings fluctuate from year District's goals, responsibilities, and requirements to year based on the timing of CIP outlays and debt over the next 20 years, and includes projections issuances, which impact the available balance in through the assumed "build-out" of the District's reserves for investing, and in the rise and fall of fixed- service area to the year 2050. Incorporating the 2017 income investment market yields. Master Plan into the CIP validation for FY 2020-21, the current CIP includes projects outlays of $2.7 billion over the next ten years. In March of 2018, following a Proposition 218 notice process, the Board approved sewer rate increases for each year over the next five years averaging Section 3 - Page 28 Go to Table of Contents Revenue Sources for assuming the collection risk, receives the Interest Earnings(in millions) delinquent taxes and user fees, penalties and interest $35.0 $28 7 for the defaulted properties when paid. $30.0 $25.0 For the fiscal year ended June 30, 2019, OCSD $20.0 received $390,539,478 in tax and user fees from the $15.0 $12.5 $13.3 $12.8 County, or 98.96 percent of the total tax and user fee $10.0 $4 3 levy. $5.0 $0.0 2017-18 2018-19 2019-20 2020-21 2021-22 Actual Actual Projected Proposed Proposed 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 0.7 percent in FY 2017-18 and 4.2 percent in FY 2018-19. However, interest and investment earnings are projected to be approximately 2.0 percent in FY 2019-20 due to the effects on the markets and economy from the coronavirus pandemic. OCSD is proposing an interest earnings rate of 1.0 percent in both FY 2020-21 and FY 2021-22 to generate earnings of$13.3 million and $12.8 million, on annual average investment portfolio projections, with fiscal year end balances of $934.4 million and $783.6 million in FY 2020-21 and FY 2021-22, respectively. Debt Proceeds Over the next ten years, OCSD is projecting an additional $2.7 billion in future treatment plant and collection system capital refurbishments. In order to minimize annual sewer rate increases in the long- term, all of these refurbishments are being proposed to be funded from user fees with no issuances of new money debt issuances. Teeter Plan In June 1993, the County of Orange adopted the Teeter Plan pursuant to Sections 4701 through 4717 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 participating agencies. OCSD participates in the Teeter Plan program and receives its full share of property tax and user fees from the secured roll,whether or not these taxes and user fees have been collected. The Teeter Plan provides OCSD with stable and timely cash flow without the collection risk. The County, in exchange Section 3 - Page 29 Go to Table of Contents 2020-21 & 2021 -22 Budget This page was intentionally left blank. Section 3 - Page 30 Go to Table of Contents Where the Money Comes From — FY 2020-21 Self-Insurance Revenues $1,649,800 0.1% Capital Improvement Property Taxes Reserve $5 $99,935,520 7.5% 24,475°,476 39.4/o Intradistrict Transfers $3,500,000 0.3% Interest&Misc $29,626,188 2.2% Cash Flow/Contingency Reserve Fees $121,372,185 $353,541,782 9.1% 26.6% Debt Service Reserve Self-Insurance $97,278,000 Reserve 7.3% $100,000,000 7.5% FY 2020-21 Total Funding Sources -$1,331,378,951 Where the Money Goes — FY 2020-21 Self-Insurance Joint Capital District Capital Program $104,049,900 $43,512,100 Operations $2,410,000 7.8% 3.3% $173,910,516 0.2% ` Debt Service 13.1% L $72,838,369 5.5/o Intradistrict Cash Transfers Flow/Contingency $3,500,000 Reserve 0.3% $128,087,000 9.6% Debt Service Reserve $94,005,000 7.1% Capital Improvement Self-Insurance Reserve Reserve $609,066,066 $100,000,000 45.6% 7.5% FY 2020-21 Total Funding Uses -$1,331,378,951 Section 4— Page 1 Go to Table of Contents 2020-21 & 2021 -22 Budget Funding Sources by Category FY 2020-21 Consolidated Revenue Revenue Total Area Area 14 Sources Beginning Accum. Funds&Reserves $ 755,886,007 $ 87,239,654 $ 843,125,661 Services Fees 15,578,606 15,998,616 31,577,222 User Fees 301,839,390 - 301,839,390 Capital Facilities Capacity Charge 20,125,170 - 20,125,170 Capacity Rights - - - Debt Proceeds - - - Property Taxes 96,675,520 3,260,000 99,935,520 Intradistrict Transfers 3,500,000 - 3,500,000 Insurance In-Lieu Premiums 1,613,000 36,800 1,649,800 Interest and Other Revenue 27,914,388 1,711,800 29,626,188 Subtotal 467,246,074 21,007,216 488,253,290 Total Sources $ 1,223,132,081 $ 108,246,870 $ 1,331,378,951 Section 4— Page 2 Go to Table of Contents Funding Uses by Category Funding Uses by Category FY 2020-21 Consolidated Revenue Revenue Total Area Area 14 Uses Directors' Fees $ 169,062 $ 3,838 $ 172,900 Salaries&Benefits 95,611,390 6,297,510 101,908,900 Administrative Expenses 1,908,314 125,690 2,034,004 Printing &Publications 389,705 25,670 415,375 Training&Meetings 1,008,671 66,440 1,075,111 Operating Materials and Supplies 20,134,534 1,326,170 21,460,704 Contractual Expenses 18,046,693 1,188,660 19,235,353 Professional Expenses 5,356,818 352,830 5,709,648 Research &Monitoring 1,224,080 80,620 1,304,700 Repairs&Maintenance 26,619,345 1,753,300 28,372,645 Utilities 7,848,034 516,920 8,364,954 Self-Insurance Requirements 2,356,300 53,700 2,410,000 Other Materials, Supplies, &Services 4,392,612 289,320 4,681,932 Cost Allocation (19,545,628) (1,280,082) (20,825,710) Joint Works Capital Improvement Program 100,387,300 3,662,600 104,049,900 Collection System Capital Improvement Frog. 43,512,100 - 43,512,100 Debt Service 72,838,369 - 72,838,369 Long Term Debt Reduction - - - Intradistrict Transfers - 3,500,000 3,500,000 Joint Equity Sale to IRWD - - - Subtotal 382,257,699 17,963,186 400,220,885 Ending Accum. Funds& Reserves 840,874,382 90,283,684 931,158,066 Total Uses $ 1,223,132,081 $ 108,246,870 $ 1,331,378,951 Section 4— Page 3 Go to Table of Contents 2020-21 & 2021 -22 Budget This page was intentionally left blank. Section 4— Page 4 Go to Table of Contents Where the Money Comes From — FY 2021 -22 Capital Improvement Reserve $609,066,066 42.7% Self-Insurance Revenues Cash $2,480,000 Flow/Contingency 0.2% Reserve $128,087,000 9.0% Property Taxes $102,034,166 7.1% _ Debt Service Reserve $94,005,000 Intradistrict Transfers 6.6% $3,500,000 0.2% Self-Insurance Interest&Misc Reserve $26,262,825 $100,000,000 1.8% Fees 7.0% $363,071,761 25.4% FY 2021-22 Total Funding Sources -$1,428,506,818 Where the Money Goes — FY 2021 -22 Self-Insurance Joint Capital Program $198,127,800 $2,480,000 13.9% District Capital 0.2% I $42,718,200 Operations 3.0% $174,065,159 Debt Service 12.2% $66,736,869 4.7% Intradistrict Transfers $3,500,000 0.2% Long Term Liability Reduction $173,855,000 12.2% I Cash Flow/Contingency Reserve Capital Improvement $127,420,000 Reserve 8.9% $447,471,790 31.3% Debt Service Self-Insurance Reserve Reserve $90,962,000 $101,170,000 6.3% 7.1% FY 2021-22 Total Funding Uses -$1,428,506,818 Section 4— Page 5 Go to Table of Contents 2020-21 & 2021 -22 Budget Funding Sources by Category FY 2021-22 Consolidated Revenue Revenue Total Area Area 14 Sources Beginning Accum. Funds&Reserves $ 840,874,382 $ 90,283,684 $ 931,158,066 Services Fees 15,835,428 19,931,486 35,766,914 User Fees 306,495,847 - 306,495,847 Capital Facilities Capacity Charge 20,809,000 - 20,809,000 Capacity Rights - - - Debt Proceeds - - - Property Taxes 99,576,166 2,458,000 102,034,166 Intradistrict Transfers 3,500,000 - 3,500,000 Insurance In-Lieu Premiums 2,425,700 54,300 2,480,000 Interest and Other Revenue 24,694,525 1,568,300 26,262,825 Subtotal 473,336,666 24,012,086 497,348,752 Total Sources $ 1,314,211,048 $ 114,295,770 $ 1,428,506,818 Section 4— Page 6 Go to Table of Contents Funding Uses by Category Funding Uses by Category FY 2021-22 Consolidated Revenue Revenue Total Area Area 14 Uses Directors' Fees $ 169,113 $ 3,787 $ 172,900 Salaries& Benefits 100,071,730 7,009,670 107,081,400 Administrative Expenses 1,737,921 121,740 1,859,661 Printing &Publications 398,440 27,910 426,350 Training &Meetings 905,502 63,430 968,932 Operating Materials and Supplies 19,933,985 1,396,310 21,330,295 Contractual Expenses 18,166,032 1,272,470 19,438,502 Professional Expenses 5,426,782 380,130 5,806,912 Research &Monitoring 1,335,180 93,520 1,428,700 Repairs&Maintenance 22,596,037 1,582,770 24,178,807 Utilities 7,830,348 548,490 8,378,838 Self-Insurance Requirements 2,424,700 55,300 2,480,000 Other Materials, Supplies, &Services 4,396,952 307,990 4,704,942 Cost Allocation (20,297,372) (1,413,708) (21,711,080) Joint Works Capital Improvement Program 191,153,700 6,974,100 198,127,800 Collection System Capital Improvement Prog. 42,718,200 - 42,718,200 Debt Service 66,736,869 - 66,736,869 Long Term Debt Reduction - - 173,855,000 Intradistrict Transfers - 3,500,000 3,500,000 Joint Equity Sale to IRWD - - - Subtotal 465,704,119 21,923,909 661,483,028 Ending Accum. Funds& Reserves 848,506,929 92,371,861 767,023,790 Total Uses $ 1,314,211,048 $ 114,295,770 $ 1,428,506,818 Section 4— Page 7 Go to Table of Contents 2020-21 & 2021 -22 Budget ACTUAL APPROVED PROJECTED PROPOSED PROPOSED DESCRIPTION OR ACCOUNT TITLE 2018-19 2019-20 2019-20 2020-21 2021-22 BEGINNING ACCUM.FUNDS&RESERVES $ 688,285,514 $ 716,802,309 $ 760,497,103 $ 843,125,661 $ 931,158,066 OPERATING REVENUES General Sewer Service User Fees 293,106,000 298,144,000 298,870,000 301,839,390 306,495,847 Permitted User Fees 9,912,000 9,917,000 12,845,756 12,997,336 13,149,405 IRWD Assess ments 11,424,624 12,261,560 12,427,327 10,746,886 11,394,509 SAWPA Assessments 2,978,000 2,654,000 2,693,628 2,639,000 2,745,000 Interest 28,664,000 6,602,000 17,472,000 13,208,000 12,642,000 Miscellaneous Receipts 6,730,924 18,880,498 8,030,274 16,418,188 13,620,825 Operating Revenue Subtotal 352,815,548 348,459,058 352,338,985 357,848,800 360,047,586 NON-OPERATING REVENUES Property Tax Allocation 85,818,991 84,248,000 85,584,000 87,295,680 88,762,334 Redevelopment Agency Pass Thru 12,524,009 12,106,000 12,392,000 12,639,840 13,271,832 Subtotal-Taxes 98,343,000 96,354,000 $97,976,000 99,935,520 102,034,166 Capital Facilities Capacity Charge 21,037,000 18,000,000 19,313,912 20,125,170 20,809,000 Sale of Capacity Rights,SAWPA&SSBSD - - - - - Capital Assessment(IRWD) 4,247,376 5,397,000 4,620,483 5,194,000 8,478,000 Non-Operating Revenue Subtotal 123,627,376 119,751,000 121,910,395 125,254,690 131,321,166 INTRA DISTRICT REVENUES Annual Intradistrict Joint Equity Purchase/Sale 19,682,194 - - 3,500,000 3,500,000 FINANCING REVENUES Sale of Certificates of Participation - - - Financing Revenues Subtotal - - - - - SELF INSURANCE REVENUES Workers'Comp SFI 695,296 780,000 888,700 628,800 800,000 General Liability SFI 1,299,998 1,750,000 1,716,900 1,021,000 1,680,000 Subtotal-Self Insurance 1,995,294 2,530,000 2,605,600 1,649,800 2,480,000 Total Revenues 498,120,412 470,740,058 476,854,980 488,253,290 497,348,752 TOTAL AVAILABLE FUNDING $1,186,405,926 $1,187,542,367 $1,237,352,083 $1,331,378,951 $1,428,506,818 Section 4— Page 8 Go to Table of Contents Budget Resources ACTUAL APPROVED PROJECTED PROPOSED PROPOSED DESCRIPTION OR ACCOUNT TITLE 2018-19 2019-20 2019-20 2020-21 2021-22 OPERATING REQUIREMENTS Directors'Fees $ 162,802 $ 155,100 $ 172,900 $ 172,900 $ 172,900 Salaries&Benefits 102,765,573 98,279,140 95,648,580 101,908,900 107,081,400 Administrative Expense 1,432,347 2,027,930 1,928,782 2,034,004 1,859,661 Printing&Publications 274,914 329,970 318,635 415,375 426,350 Training&Meetings 664,845 1,109,740 765,541 1,075,111 968,932 Operating Materials&Supplies 18,693,800 21,008,781 19,972,539 21,460,704 21,330,295 Contractual Expense 20,516,256 22,033,974 21,159,486 19,235,353 19,438,502 Professional Expense 4,601,991 5,586,170 4,361,777 5,709,648 5,806,912 Research&Monitoring 935,801 1,099,600 1,149,600 1,304,700 1,428,700 Repairs&Maintenance 18,807,050 23,469,642 24,250,530 28,372,645 24,178,807 Utilities 7,795,426 9,250,310 8,484,098 8,364,954 8,378,838 Other Materials,Supplies,&Services 9,645,000 4,244,740 3,248,588 4,681,932 4,704,942 Cost Allocation (19,709,063) (20,378,610) (20,056,720) (20,825,710) (21,711,080) Subtotal-Operating 166,586,742 168,216,487 161,404,336 173,910,516 174,065,159 CAPITAL IMPROVEMENTS Joint Works Capital Improvements 117,410,628 115,947,704 91,099,400 104,049,900 198,127,800 Collection System Capital Improvements 41,692,762 37,379,839 28,573,700 43,512,100 42,718,200 Annual Intradistrict Joint Equity Purchase/Sale 23,715,860 - - 3,500,000 3,500,000 Subtotal-Capital Improvements 182,819,250 153,327,543 119,673,100 151,062,000 244,346,000 FINANCING REQUIREMENTS Certificate of Participation Service 74,481,299 76,775,000 81,847,941 72,838,369 66,736,869 Long Term Debt Reduction - - 29,029,145 - 173,855,000 Subtotal-Financing Req 74,481,299 76,775,000 110,877,086 72,838,369 240,591,869 SELF INSURANCE REQUIREMENTS Workers'Comp SFI 528,014 780,000 774,200 780,000 800,000 General Liability SFI 1,493,518 1,750,000 1,497,700 1,630,000 1,680,000 Subtotal-Self Insurance 2,021,532 2,530,000 2,271,900 2,410,000 2,480,000 TOTAL REQUIREMENTS 425,908,823 400,849,030 394,226,422 400,220,885 661,483,028 REVENUES OVER/(UNDER)REQUIREMENTS 72,211,589 (37,165,890) 82,628,558 88,032,405 (164,134,276) ENDING ACCUM.FUNDS&RESERVES $ 760,497,103 $ 786,693,337 $ 843,125,661 $ 931,158,066 $ 767,023,790 Section 4— Page 9 Go to Table of Contents 2020-21 & 2021 -22 Budget BUDGET RESOURCES BY REVENUE AREA-FY 2020-21 Consolidated DESCRIPTION OR ACCOUNT TITLE Revenue Area Rev Area 14 Total Proposed Proposed Proposed BEGINNING ACCUM. FUNDS&RESERVES $ 755,886,007 $ 87,239,654 $ 843,125,661 OPERATING REV ENUES General Sewer Service User Fees 301,839,390 - 301,839,390 Permitted User Fees 12,997,336 - 12,997,336 O&M Joint Operating Assessment Service Fees(IRWD) - 2,839,206 2,839,206 O&MCollection System Assessment Service Fees(IRWD) - 1,807,680 1,807,680 O&M Sludge Disposal Assessment Service Fees(IRWD) - 6,100,000 6,100,000 SAWPA Assessments 2,581,270 57,730 2,639,000 Interest 11,957,000 1,251,000 13,208,000 Miscellaneous Receipts 15,957,388 460,800 16,418,188 Operating Revenue Subtotal 345,332,384 12,516,416 357,848,800 NON-OPERATING REVENUES Property Tax Allocation 84,447,680 2,848,000 87,295,680 Redevelopment Agency Pass Thru 12,227,840 412,000 12,639,840 Subtotal-Taxes 96,675,520 3,260,000 99,935,520 Capital Facilities Capacity Charge 20,125,170 - 20,125,170 Sale of Capacity Rights,SAWPA&SSBSD - - - Capital Assessment(IRWD) - 5,194,000 5,194,000 Non-Operating Revenue Subtotal 116,800,690 8,454,000 125,254,690 INTRA DISTRICT REV ENUES Annual Intradistrict Joint Equity Purchase/Sale 3,500,000 - 3,500,000 FINANCING REVENUES Sale of Certificates of Participation - - Intradistrict Loans,Advances&Repayments - Financing Revenues Subtotal - - - SELF INSURANCE REV ENUES Workers'Comp SFI 614,800 14,000 628,800 General Liability SFI 998,200 22,800 1,021,000 Subtotal-Self Insurance 1,613,000 36,800 1,649,800 Total Revenues 467,246,074 21,007,216 488,253,290 TOTAL AVAILABLE FUNDING $ 1,223,132,081 $ 108,246,870 $ 1,331,378,951 Section 4— Page 10 Go to Table of Contents Budget Resources Consolidated DESCRIPTION OR ACCOUNT TITLE Revenue Area Rev Area 14 Total Proposed Proposed Proposed OPERATING REQUIREMENTS Directors'Fees $ 169,062 $ 3,838 $ 172,900 Salaries&Benefits 95,611,390 6,297,510 101,908,900 Administrative Expense 1,908,314 125,690 2,034,004 Printing&Publications 389,705 25,670 415,375 Training&Meetings 1,008,671 66,440 1,075,111 Operating Materials and Supplies 20,134,534 1,326,170 21,460,704 Contractual Expense 18,046,693 1,188,660 19,235,353 Professional Expense 5,356,818 352,830 5,709,648 Research&Monitoring 1,224,080 80,620 1,304,700 Repairs&Maintenance 26,619,345 1,753,300 28,372,645 Utilities 7,848,034 516,920 8,364,954 Other Materials,Supplies,&Services 4,392,612 289,320 4,681,932 Cost Allocation (19,545,628) (1,280,082) (20,825,710) Subtotal-Operating 163,163,630 10,746,886 173,910,516 CAPITAL IMPROVEMENTS Joint Works Capital Improvements 100,387,300 3,662,600 104,049,900 Collection System Capital Improvements 43,512,100 - 43,512,100 Annual Intradistrict Joint Equity Purchase/Sale - 3,500,000 3,500,000 Subtotal-Capital Improvements 143,899,400 7,162,600 151,062,000 FINANCING REQUIREMENTS Certificate of Participation Service 72,838,369 - 72,838,369 Long Term Debt Reduction - - Subtotal-Financing Requirements 72,838,369 - 72,838,369 SELF INSURANCE REQUIREMENTS Workers'Comp SFI 762,600 17,400 780,000 General Liability SFI 1,593,700 36,300 1,630,000 Subtotal-Self Insurance 2,356,300 53,700 2,410,000 OTHER CASH OUTLAYS Joint Equity Sale to IRWD - - Subtotal-Other Cash Outlays - - - TOTAL REQUIREMENTS 382,257,699 17,963,186 400,220,885 REVENUES EXCEEDING REQUIREMENTS 84,988,375 3,044,030 88,032,405 ENDING ACCUMULATED FUNDS&RESERVES $ 840,874,382 $ 90,283,684 $ 931,158,066 Section 4— Page 11 Go to Table of Contents 2020-21 & 2021 -22 Budget BUDGET RESOURCES BY REV ENUEAREA-FY 2021-22 Consolidated DESCRIPTION OR ACCOUNT TITLE Revenue Area Rev Area 14 Total Proposed Proposed Proposed BEGINNING ACCUM. FUNDS&RESERVES $ 840,874,382 $ 90,283,684 $ 931,158,066 OPERATING REVENUES General Sewer Service User Fees 306,495,847 - 306,495,847 Permitted User Fees 13,149,405 - 13,149,405 O&M Joint Operating Assessment Service Fees (IRWD) - 2,797,729 2,797,729 O&M Collection System Assessment Service Fees (IRWD) - 1,885,780 1,885,780 O&M Sludge Disposal Assessment Service Fees (IRWD) - 6,711,000 6,711,000 SAWPA Assessments 2,686,023 58,977 2,745,000 Interest 11,493,000 1,149,000 12,642,000 Miscellaneous Receipts 13,201,525 419,300 13,620,825 Operating Revenue Subtotal 347,025,800 13,021,786 360,047,586 NON-OPERATING REVENUES Property Tax Allocation 86,624,334 2,138,000 88,762,334 Redevelopment Agency Pass Thru 12,951,832 320,000 13,271,832 Subtotal-Taxes 99,576,166 2,458,000 102,034,166 Capital Facilities Capacity Charge 20,809,000 - 20,809,000 Sale of Capacity Rights,SAWPA&SSBSD - - - Capital Assessment(IRWD) - 8,478,000 8,478,000 Non-Operating Revenue Subtotal 120,385,166 10,936,000 131,321,166 INTRA DISTRICT REVENUES Annual Intradistrict Joint Equity Purchase/Sale 3,500,000 - 3,500,000 FINANCING REVENUES Sale of Certificates of Participation - - - Intradistrict Loans,Advances&Repayments - - - Financing Revenues Subtotal - - - SELF INSURANCE REV ENUES Workers'Comp SFI 782,500 17,500 800,000 General Liability SFI 1,643,200 36,800 1,680,000 Subtotal-Self Insurance 2,425,700 54,300 2,480,000 Total Revenues 473,336,666 24,012,086 497,348,752 TOTAL AVAILABLE FUNDING $ 1,314,211,048 $ 114,295,770 $ 1,428,506,818 Section 4— Page 12 Go to Table of Contents Budget Resources Consolidated DESCRIPTION OR ACCOUNT TITLE Revenue Area Rev Area 14 Total Proposed Proposed Proposed OPERATING REQUIREMENTS Directors'Fees $ 169,113 $ 3,787 $ 172,900 Salaries&Benefits 100,071,730 7,009,670 107,081,400 Administrative Expense 1,737,921 121,740 1,859,661 Printing&Publications 398,440 27,910 426,350 Training&Meetings 905,502 63,430 968,932 Operating Materials and Supplies 19,933,985 1,396,310 21,330,295 Contractual Expense 18,166,032 1,272,470 19,438,502 Professional Expense 5,426,782 380,130 5,806,912 Research&Monitoring 1,335,180 93,520 1,428,700 Repairs&Maintenance 22,596,037 1,582,770 24,178,807 Utilities 7,830,348 548,490 8,378,838 Other Materials,Supplies,&Services 4,396,952 307,990 4,704,942 Cost Allocation (20,297,372) (1,413,708) (21,711,080) Subtotal-Operating 162,670,650 11,394,509 174,065,159 CAPITAL IMPROVEMENTS Joint Works Capital Improvements 191,153,700 6,974,100 198,127,800 Collection System Capital Improvements 42,718,200 - 42,718,200 Annual Intradistrict Joint Equity Purchase/Sale - 3,500,000 3,500,000 Subtotal-Capital Improvements 233,871,900 10,474,100 244,346,000 FINANCING REQUIREMENTS Certificate of Participation Service 66,736,869 - 66,736,869 Long Term Debt Reduction 173,855,000 173,855,000 Subtotal-Financing Req 66,736,869 240,591,869 SELF INSURANCE REQUIREMENTS Workers'Comp SFI 782,200 17,800 800,000 General Liability SFI 1,642,500 37,500 1,680,000 Subtotal-Self Insurance 2,424,700 55,300 2,480,000 OTHER CASH OUTLAYS Joint Equity Sale to IRWD - - - Subtotal-Other Cash Outlays - - - TOTAL REQUIREMENTS 465,704,119 21,923,909 661,483,028 REVENUES EXCEEDING REQUIREMENTS 7,632,547 2,088,177 (164,134,276) ENDING ACCUMULATED FUNDS&RESERVES $ 848,506,929 $ 92,371,861 $ 767,023,790 Section 4— Page 13 Go to Table of Contents 2020-21 & 2021 -22 Budget Projected Reserves at June 30, 2020, 2021 and 2022 Projected Proposed Proposed 6/30/2020 6/30/2021 6/30/2022 Cash Flow Requirements Operating Expenses $ 80,702,000 $ 86,955,000 $ 87,033,000 COP Payments 24,530,185 23,741,000 22,980,000 Operating Contingencies 16,140,000 17,391,000 17,407,000 Capital Improvement Program 461,960,476 534,066,066 371,593,790 Catastrophe & Self Insurance 100,000,000 100,000,000 101,170,000 Sub-total 683,332,661 762,153,066 600,183,790 Capital Replacement& Refurbishment 62,515,000 75,000,000 75,878,000 COP Service Required Reserves 97,278,000 94,005,000 90,962,000 Total $ 843,125,661 $ 931,158,066 $ 767,023,790 Accumulated Funds and Reserves Policy established at one half of the average annual cash outlay of the capital improvement program through A cash flow criterion has been established at a level the year 2030. Levels higher and lower than the to fund operations, maintenance and certificate of target can be expected while the long-term financing participations expenses for the first half of the fiscal and capital improvement programs are being year, prior to the receipt of the first installment of the finalized. property tax allocation and the sewer service user fees which are collected as a separate line item on A catastrophic loss or self-insurance criterion has the property tax bill. The level of this criterion will be been maintained for property damage including fire, established as the sum of an amount equal to six flood and earthquake, for general liability and for months operations and maintenance expenses and workers' compensation. This reserve criterion is the total of the annual debt (COP) service payments intended to work with purchased insurance policies, due in August each year. FEMA and State disaster reimbursements. Based on the plant infrastructure replacement value, the level An operating contingency criterion has been of this criterion has been set to fund the Sanitation established to provide for non-recurring operating District's non- reimbursed costs, estimated to be expenditures that were not anticipated when the $100 million annual budget was considered and adopted. The level of this criterion will be established at an amount A capital replacement/renewal criterion policy has equal to ten percent of the current fiscal year's annual been established to provide funding to replace or operating budget. refurbish the current collection, treatment and recycling facilities at the end of their useful economic A capital improvement criterion has been maintained lives.The current replacement value of these facilities to fund annual increments of the capital improvement is estimated to be $10.8 billion. The reserve criterion program. The target level of this criterion has been level had been established at$75 million. Section 4— Page 14 Go to Table of Contents Projected Reserves Proposed Ending Reserves (in millions) $1,000.0 $931.2 $900.0 $843.1 $800.0 $767.0 $725.3 $700.0 $679.2 $679.0 $645.2 $600.0 $569.5 $516.0 $522.3 $500.0 $478.9 $400.0 $300.0 $200.0 $100.0 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 FY 28-29 FY 29-30 A debt service criterion policy has been established at ten percent of the outstanding certificate of participation (COP) issues. Other debt service reserves are required to be under the control of a Trustee by the provisions of the certificate of participation (COP) issues. These funds are not available for the general needs of the Sanitation District and must be maintained at specified levels. Accumulated Funds exceeding the targets specified by OCSD policy will be maintained for Capital Improvements and Rate Stabilization. These funds will be applied to future years' CIP needs due to the timing of the actual CIP outlays, in order to maintain rates or to moderate annual fluctuations. This budget approves projects that will incur costs through 2030 and beyond. The reserves that are currently held are needed to fund projects starting in the FY 2020-21 and 2021-22 budget years. Section 4— Page 15 Go to Table of Contents 2020-21 & 2021 -22 Budget Orange County Sanitation District Consolidated Cash Flow Projections Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary Ref Description 20-21 21-22 22-23 23-24 24-25 25-26 Revenues: 1 General User Fees 301,839,390 306,495,847 311,177,631 316,816,564 322,486,265 328,187,220 2 Permitted User Fees 12,997,336 13,149,405 13,301,000 13,490,000 13,679,000 13,869,000 3 IRWD Assessments 15,940,886 19,872,509 17,117,000 15,865,000 14,474,000 16,007,000 4 SAWPA Assessments 2,639,000 2,745,000 2,828,000 2,913,000 3,001,000 3,091,000 5 Property Taxes 99,935,520 102,034,166 105,095,000 107,722,000 110,415,000 113,727,000 6 New COP Issues - - - - - - 7 Interest Revenues 13,208,000 12,642,000 11,109,000 10,455,000 10,111,000 9,857,000 8 Capital Facilities Capacity Charges 20,125,170 20,809,000 18,673,000 19,441,000 19,517,000 19,597,000 9 Other Revenues 21,567,988 19,600,825 16,441,000 16,790,000 17,149,000 17,515,000 10 Revenues 488,253,290 497,348,752 495,741,631 503,492,564 510,832,265 521,850,220 Requirements: 11 Oper&Mlce Exp(3.0%yr) 173,910,516 174,065,159 179,287,000 184,666,000 190,206,000 195,912,000 12 Capital Improvement Program(CIP) 164,833,000 261,947,000 317,935,000 316,625,000 270,380,000 287,072,000 13 Less:CIP Savings&Deferrals (17,271,000) (21,101,000) (24,891,000) (21,852,000) (23,940,000) (15,423,000) 14 Allocation for Future Rehabilitation - - 1,357,000 6,316,000 10,613,000 24,341,000 15 COP Debt Service 72,838,369 66,736,869 61,310,000 61,316,000 61,306,000 61,314,000 16 Reduction of Long-Term Liabilites - 173,855,000 - - - - 17 Other Requirements 5,910,000 5,980,000 2,480,000 2,480,000 2,480,000 2,480,000 18 Requirements 400,220,885 661,483,028 537,478,000 549,551,000 511,045,000 555,696,000 19 Revenues-Requirements 88,032,405 (164,134,276) (41,736,369) (46,058,436) (212,735) (33,845,780) Accumulated Funds: 20 Beginning of Year 843,125,661 931,158,066 767,023,790 725,287,421 679,228,985 679,016,250 21 End of Year 931,158,066 767,023,790 725,287,421 679,228,985 679,016,250 645,170,470 22 Consolidated Reserve Policy 534,393,000 532,731,000 512,983,000 515,109,000 517,099,000 519,155,000 23 Over(Under)Reserve Policy* 396,765,066 234,292,790 212,304,421 164,119,985 161,917,250 126,015,470 Sewer Service User Fees: 24 Avg SFR Annual User Fee $343 $347 $351 $356 $361 $366 25 Percentage Change 1.18% 1.17% 1.15% 1.42% 1.40% 1.39% 26 Equivalent Dwelling Units 923,730 926,501 929,281 932,069 934,865 937,670 27 SFR Connection Fee $4,601 $4,973 $5,346 $5,719 $5,736 $5,753 28 Outstandina COPS $940,050,000 $909,620,000 $707,360,000 $677,555,000 $646,415,000 $613,760,000 Reserve Policy 29 50%Next Year Operating Expense 86,955,000 87,033,000 89,644,000 92,333,000 95,103,000 97,956,000 30 10%Next Year Operating Expense 17,391,000 17,407,000 17,929,000 18,467,000 19,021,000 19,591,000 31 100%Next Year AUG COP Svc. 23,741,000 22,980,000 18,289,000 17,625,000 16,862,000 16,201,000 32 50%average ten-year CIP Balance 137,301,000 137,301,000 137,301,000 137,301,000 137,301,000 137,301,000 33 Debt Svc @ 10%Outstanding COP 94,005,000 90,962,000 70,736,000 67,756,000 64,642,000 61,376,000 34 Self Funded Insurance @$100M 100,000,000 101,170,000 102,333,000 103,786,000 105,239,000 106,702,000 35 Repl&Refurb 75,000,000 75,878,000 76,751,000 77,841,000 78,931,000 80,028,000 36 *Reserve Reduction(in accordance with Board action allowing a$40M reduction to total res - - - 37 Total 534,393,000 532,731,000 512,983,000 515,109,000 517,099,000 519,155,000 COP Ratios 38 Sr Lien Coverge,Min 1.25 4.04 4.53 4.86 4.88 4.91 5.00 Section 4— Page 16 Go to Table of Contents Cash Flow Projection Orange County Sanitation District Consolidated Cash Flow Projections Preliminary Preliminary Preliminary Preliminary 10-Year Ref Description 26-27 27-28 28-29 29-30 Total Revenues: 1 General User Fees 336,919,000 342,682,000 348,477,000 354,303,000 3,269,383,917 2 Permitted User Fees 14,059,000 14,249,000 14,439,000 14,628,000 137,860,741 3 IRWD Assessments 17,959,000 17,291,000 16,994,000 14,394,000 165,914,395 4 SAWPA Assessments 3,184,000 3,280,000 3,378,000 3,479,000 30,538,000 5 Property Taxes 117,139,000 120,653,000 124,273,000 128,001,000 1,128,994,686 6 New COP Issues - - - - - 7 Interest Revenues 9,065,000 8,149,000 7,521,000 7,614,000 99,731,000 8 Capital Facilities Capacity Charges 19,673,000 19,749,000 19,830,000 19,906,000 197,320,170 9 Other Revenues 17,891,000 18,276,000 18,671,000 19,075,000 182,976,813 10 Revenues 535,889,000 544,329,000 553,583,000 561,400,000 5,212,719,722 Requirements: 11 Oper&We Exp(4.0%yr) 201,789,000 207,843,000 214,078,000 220,500,000 1,942,256,675 12 Capital Improvement Program(CIP) 394,219,000 310,190,000 254,783,000 123,024,000 2,701,008,000 13 Less:CIP Savings&Deferrals (82,295,000) (34,675,000) (48,140,000) (11,413,000) (301,001,000) 14 Allocation for Future Rehabilitation 34,786,000 47,291,000 102,666,000 118,639,000 346,009,000 15 COP Service 57,514,000 61,666,000 61,661,000 61,663,000 627,325,238 16 Reduction of Long-Term Liabilites - - - - 173,855,000 17 Other Requirements 2,480,000 2,480,000 2,480,000 2,480,000 31,730,000 18 Requirements 608,493,000 594,795,000 587,528,000 514,893,000 5,521,182,913 19 Revenues-Requirements (72,604,000) (50,466,000) (33,945,000) 46,507,000 (308,463,191) Accumulated Funds: 20 Beginning of Year 645,170,470 572,566,470 522,100,470 488,155,470 843,125,661 21 End of Year 572,566,470 522,100,470 488,155,470 534,662,470 534,662,470 22 Consolidated Reserve Policy 521,009,000 521,215,000 487,808,000 526,274,000 526,274,000 23 Over(Under) Reserve Policy" 51,557,470 885,470 347,470 8,388,470 8,388,470 Sewer Service User Fees: 24 Avg SFRAnnual User Fee $371 $376 $381 $386 25 Percentage Change 1.37% 1.35% 1.33% 1.31% 26 Equivalent Dwelling Units 940,483 943,304 946,134 948,972 27 SFR Connection Fee $5,770 $5,787 $5,804 $5,821 28 Outstanding COPS $579,775,000 $547,925,000 $510,330,000 $470,860,000 Reserve Policy 29 50% Next Year Operating 100,895,000 103,922,000 107,039,000 110,250,000 30 10% Next Year Operating 20,179,000 20,784,000 21,408,000 22,050,000 31 100%Next Year AUG COP Svc. 15,368,000 14,572,000 13,632,000 12,646,000 32 50%average ten-year CIPBal. 137,301,000 137,301,000 137,301,000 137,301,000 33 DSR@ 10%Outstanding COPS 57,978,000 54,793,000 51,033,000 47,086,000 34 SFI @$57mm 108,164,000 109,624,000 111,082,000 112,537,000 35 Repl&Refurb @ 2%/yr 81,124,000 82,219,000 83,313,000 84,404,000 36 `Reserve Reduction - (2,000,000) (37,000,000) - 37 Total 521,009,000 521,215,000 487,808,000 526,274,000 COP Ratios 38 Sr Lien Coverge,Min 1.25 5.47 5.14 5.18 5.21 Section 4— Page 17 Go to Table of Contents 2020-21 & 2021 -22 Budget This page was intentionally left blank. Section 4— Page 18 Go to Table of Contents Operations Budget Overview OPERATING REQUIREMENTS minutes at sufficient dosages to elevate the pH level. The high pH slug temporarily inactivates The net operating requirements budget finances the sulfate reducing bacteria and greatly reduces administrative, operations and maintenance, and hydrogen sulfide generation. program costs for collecting,treating, and recycling of wastewater. The departmental budgets are all The largest costs for collection system odor completely funded by the operating fund. The net control are for ferrous chloride, magnesium operating budget for FY 2020-21 is$173.9 million and hydroxide and calcium nitrate. These costs for FY 2021-22 is $174.1 million. cover continuous treatment for odor control within five trunklines. The contractor(s) Following are descriptions of the major factors that provide(s) leased equipment and on-going comprise the operating budget: labor for services such as maintenance, remote monitoring of the chemical feed rates, Regulatory Requirements: Many of the Sanitation optimization, and field sampling. District's activities are either required or regulated by environmental permits issued by federal, state, and Sodium hypochlorite, caustic soda, and local regulatory authorities. These authorities granular carbon are used in plant process regulate effluent quality, air emissions, greenhouse scrubbers to treat foul air, comply with gases, stormwater quality, biosolids and hazardous SCAQMD permits, and prevent odor waste management, as well as extensive monitoring complaints. of all media. New and developing regulations also drive future capital and operating expenses. Residuals Management: These costs are for hauling and beneficial reuse of wastewater solids Operating Chemicals: Chemicals are used for recovered during the treatment process. Solids disinfection, coagulation, and odor control programs. treated through the digesters, called biosolids or treated sewage sludge, can be recycled offsite via • Coagulants: Coagulant chemicals are used to composting (about 60 percent) or land application on enhance primary treatment solids removal, solids farm fields (about 40 percent). Most of the Sanitation dewatering, waste solids thickening, and to District's residuals management costs are for hauling control hydrogen sulfide in the digesters. about 23 truckloads (575 tons) of biosolids offsite every day. A smaller component of residuals • Ferric chloride is an iron salt which is used with management cost is non-recyclable grit and anionic polymer to increase the solids removal screenings waste and sewer debris that must be efficiencies in the primary treatment process disposed of at a landfill. and to control hydrogen sulfide levels in the digester gas as required by AQMD Rule 431.1. Repairs and Maintenance: Preventive maintenance • Cationic polymer is added to digested sludge and repair activities throughout the Sanitation prior to dewatering to improve the sludge and District's expanded and upgraded treatment facilities water separation process. Cationic polymer is and collection system continue to keep this budgetary also added to the waste activated sludge category at a significant amount. This category dissolved air flotation thickeners to thicken the includes contracted services, materials and supplies, solids before digestion. and outsourced service agreements. • Odor Control: Under septic or anaerobic Utilities: The cost for utilities is a significant conditions, sulfate-reducing bacteria can flourish component of the operating budget. The largest utility resulting in the accumulation of sulfides in the cost incurred by the Sanitation District is the electricity liquid phase. One of the sulfide forms present is that is purchased to supplement generated power to hydrogen sulfide (1-12S). When released to the operate the plant processes. The central generation vapor phase, this creates the potential for both facilities produce approximately 70 percent of the odor and corrosion problems in the collection electricity used for running the plants. In FY 2005-06, system. the central generation production was reduced in order to meet new air emission limits. This issue has • Sodium hydroxide is added in "shock doses"to been resolved by the installation of emission control the sewer trunklines for sulfide control. Sodium systems on the engines at both plants. hydroxide is added over a period of 30 to 45 Section 5— Page 1 Go to Table of Contents 2020-21 & 2021 -22 Budget Proposed Budget Comparisons by Department 2019-20 Budget Budget Revised 2019-20 2020-21 Percent 2021-22 Percent Department and Division Budget Projected Proposed Change Proposed Change General Manager's Office General Management Admin $ 3,172,680 $ 2,100,840 $ 1,910,830 -39.77% $ 1,940,940 1.58% Board Services 693,980 718,820 1,195,850 72.32% 1,236,800 3.42% Public Affairs 1,155,600 1,196,776 1,300,290 12.52% 1,291,790 -0.65% Department subtotal 5,022,260 4,016,436 4,406,970 -12.25% 4,469,530 1.42% Human Resources Department Human Resources 4,987,200 4,386,770 4,167,885 -16.43% 4,459,485 7.00% Risk Management 5,785,360 5,507,435 3,917,452 -32.29% 4,003,910 2.21% Department subtotal 10,772,560 9,894,205 8,085,337 -24.95% 8,463,395 4.68% Administrative Services Department Administrative Services Admin 180,710 556,295 255,180 41.21% 547,280 114.47% Consolidated Services - - 7,215,635 100.00% 7,192,901 -0.32% Financial Management 3,442,410 3,989,386 4,145,843 20.43% 4,291,078 3.50% Contracts,Purch,&Materials Mgmt 4,966,960 4,238,524 4,619,006 -7.01% 4,800,172 3.92% Information Technology 12,159,200 11,930,100 12,093,310 -0.54% 12,284,250 1.58% Department subtotal 20,749,280 20,714,305 28,328,974 36.53% 29,115,681 2.78% Environmental Services Department Environmental Services Admin 619,510 868,660 915,720 47.81% 991,620 8.29% Environmental Compliance 5,754,790 5,463,060 6,130,250 6.52% 6,617,570 7.95% Laboratory&Ocean Monitoring 11,393,290 11,996,340 12,264,727 7.65% 12,673,508 3.33% Department subtotal 17,767,590 18,328,060 19,310,697 8.68% 20,282,698 5.03% Engineering Department Engineering Admin 753,920 1,077,200 1,278,080 69.52% 1,367,530 7.00% Planning 5,414,675 3,820,812 4,120,560 -23.90% 4,263,525 3.47% Project Management 5,019,310 4,404,695 4,197,645 -16.37% 4,373,695 4.19% Design 7,583,810 7,164,681 7,416,060 -2.21% 7,637,260 2.98% Construction Management 5,670,320 6,234,143 6,637,750 17.06% 6,939,300 4.54% Department subtotal 24,442,035 22,701,531 23,650,095 -3.24% 24,581,310 3.94% Operations &Maintenance Dept. O&M Administration 804,870 325,200 709,620 -11.83% 744,320 4.89% Collection Facilities O&M 13,369,492 12,891,116 15,585,673 16.58% 16,153,634 3.64% Fleet Services 1,880,480 1,807,420 2,040,071 8.49% 2,007,782 -1.58% Plant No. 1 Operations 31,542,920 30,915,162 30,331,900 -3.84% 30,510,180 0.59% Plant No.2 Operations 18,989,328 18,082,401 18,690,716 -1.57% 19,057,086 1.96% Plant No. 1 Maintenance 25,352,831 22,007,130 23,335,730 -7.96% 22,366,440 -4.15% Plant No.2 Maintenance 17,901,451 19,778,090 20,260,443 13.18% 18,024,183 -11.04% Department subtotal 109,841,372 105,806,519 110,954,153 1.01% 108,863,625 -1.88% Less: Cost Allocation (20,378,610) (20,056,720) (20,825,710) 2.19% (21,711,080) 4.25% Net Operating Requirements $168,216,487 $161,404,336 $173,910,516 3.38% $174,065,159 0.09% Section 5- Page 2 Go to Table of Contents Operations Summary Proposed Budget Expense by Category 2019.20 Budget Budget Revised 2019-20 2020-21 Percent 2021.22 Percent Description Budget Projected Proposed Change Proposed Change Salaries, Wages & Benefits $ 98,434,240 $ 95,821,480 $102,081,800 3.71% $107,254,300 5.07% Administrative Expenses 2,027,930 1,928,782 2,034,004 0.30% 1,859,661 -8.57% Printing&Publication 329,970 318,635 415,375 25.88% 426,350 2.64% Training&Meetings 1,109,740 765,541 1,075,111 -3.12% 968,932 -9.88% Operating Materials&Supplies 21,008,781 19,972,539 21,460,704 2.15% 21,330,295 -0.61% Contractual Services 22,033,974 21,159,486 19,235,353 -12.70% 19,438,502 1.06% Professional Seances 5,586,170 4,361,777 5,709,648 2.21% 5,806,912 1.70% Research&Monitoring 1,099,600 1,149,600 1,304,700 18.65% 1,428,700 9.50% Repairs&Maintenance 23,469,642 24,250,530 28,372,645 20.89% 24,178,807 -14.78% Utilities 9,250,310 8,484,098 8,364,954 -9.57% 8,378,838 0.17% Other Materials, Supplies, and Svc. 4,244,740 3,248,588 4,681,932 10.30% 4,704,942 0.49% Cost Allocation (20,378,610) (20,056,720) (20,825,710) 2.19% (21,711,080) 4.25% Net Operating Requirements $168,216,487 $161,404,336 $173,910,516 3.38% $174,065,159 0.09% Cost to Collect/Treat 1 Million Gallons $ 2,451.42 $ 2,339.36 $ 2,534.40 3.38% $ 2,536.65 0.09% Flow, Million Gallons 68,620 68,995 68,620 0.00% 68,620 0.00% Flow Per Day, MGD 188.00 188.51 188.00 0.00% 188.00 0.00% Section 5— Page 3 Go to Table of Contents 2020-21 & 2021 -22 Budget Proposed Budget Allocation to Individual Revenue Areas Total Gallonage Flows, Million Gallons per Year(MG) Revenue 2019-20 Projected 2020-21 2021-22 Area Projected Decrease Projected Percent Budgeted Percent No. Flow (MG) (MG) Flow (MG) of Total Flow (MG) of Total Consolidated 67,456 (356) 67,100 97.78% 67,120 97.81% 14 1,539 (19) 1,520 2.22% 1,500 2.19% TOTALS 68,995 (375) 68,620 100.00% 68,620 100.00% Average Daily Gallonage Flows, Million Gallons per Day(MGD) Revenue 2019-20 Projected 2020-21 2021-22 Area Projected Decrease Budgeted Percent Budgeted Percent No. Flow (MGD) (MGD) Flow (MGD) of Total Flow (MGD) of Total Consolidated 184 - 184 97.87% 184 97.87% 14 4 - 4 2.13% 4 2.13% TOTALS 188 - 188 100.00% 188 100.00% FY 2020-21 Estimated Allocation of Total Costs to Revenue Areas Revenue Treatment Area Collection &Disposal Total Total No. Costs Costs Costs CosUMG Consolidated $ 32,706,720 $ 130,456,910 $ 163,163,630 $ 2,431.65 14-O&M 1,807,680 2,839,206 4,646,886 3,057.16 14-Sludge - 6,100,000 6,100,000 4,013.16 TOTALS $ 34,514,400 $ 139,396,116 $ 173,910,516 $ 2,534.40 FY 2021-22 Estimated Allocation of Total Costs to Revenue Areas Revenue Treatment Area Collection & Disposal Total Total No. Costs Costs Costs Cost/MG Consolidated $ 34,119,720 $ 128,550,930 $ 162,670,650 $ 2,423.58 14-O&M 1,885,780 2,797,729 $ 4,683,509 3,122.34 14-Sludge - 6,711,000 $ 6,711,000 4,474.00 TOTALS $ 36,005,500 $ 138,059,659 $ 174,065,159 $ 2,536.65 Section 5— Page 4 Go to Table of Contents Operations Summary Proposed Budget Net Operating Expense by Line Item Adjusted %Budget %Budget Budget 2019-20 2020-21 Change to 2021-22 Change to Description 2019-20 Projected Proposed 2019-20 Proposed 2020-21 Salaries.Wages. &Benefits Salaries &Wages Salaries&Wages $ 74,364,500 $ 72,898,900 $ 79,271,100 6.60% $ 83,272,100 5.05% Employee Benefits Retirement 11,478,840 11,180,200 11,685,000 1.80% 12,167,100 4.13% Group Insurances 11,006,200 10,051,700 9,705,500 -11.82% 10,221,000 5.31% Tuition&Certificate Reimb 98,100 135,700 138,400 41.08% 141,200 2.02% Edu.degrees,Cert. & Lic. 470,300 532,400 542,600 15.37% 542,600 0.00% Uniform Rental 140,800 107,600 107,600 -23.58% 107,600 0.00% Workers'Compensation 780,000 811,180 518,900 -33.47% 690,000 32.97% Unemployment Insurance 3,200 2,300 2,300 -28.13% 2,300 0.00% EMT Supplemental Benefits 92,300 101,500 110,400 19.61% 110,400 0.00% Salaries, Wages, & Benefits 98,434,240 95,821,480 102,081,800 3.71% 107,254,300 5.07% Materials. Supplies. &Services Administrative Expenses Memberships 639,660 611,711 598,217 -6.48% 616,145 3.00% Office Exp-Supplies 71,330 73,305 64,655 -9.36% 66,621 3.04% Postage 43,330 29,700 32,700 -24.53% 34,700 6.12% Books&Publications 62,340 65,008 44,352 -28.85% 36,905 -16.79% Forms 970 970 580 -40.21% 590 1.72% Small Computer Items 900,300 900,500 925,500 2.80% 950,500 2.70% Minor Furniture& Fixtures 310,000 247,588 368,000 18.71% 154,200 -58.10% Printing& Publication Repro-In-House 200,790 227,132 230,375 14.73% 240,850 4.55% Printing-Outside 66,480 29,383 47,950 -27.87% 48,250 0.63% Notices &Ads 62,650 62,070 137,000 118.68% 137,200 0.15% Photo Processing 50 50 50 0.00% 50 0.00% Meetings&Training Meetings 170,850 121,426 167,796 -1.79% 167,206 -0.35% Training 938,890 644,115 907,315 -3.36% 801,726 -11.64% Operating Materials&Supplies Chem. Coagulants 10,364,188 10,548,895 10,550,546 1.80% 10,550,546 0.00% Odor Control 7,415,288 6,192,594 6,907,776 -6.84% 7,250,223 4.96% Disinfection 233,000 217,500 218,000 -6.44% 218,000 0.00% Chemicals-Cogen Op. 331,070 330,000 418,000 26.26% 418,000 0.00% Miscellaneous Chemicals - - - n/a - n/a Odor&Corrosion Control - - 150,000 n/a 100,000 -33.33% Gas, Diesel, &Oil 563,460 505,110 554,633 -1.57% 540,838 -2.49% Tools 469,135 501,110 923,230 96.79% 494,955 -46.39% Safety Equipment/tools 624,500 670,560 731,637 17.16% 735,570 0.54% Solv,Paint,Janitor Supplies 100,000 114,520 111,053 11.05% 112,606 1.40% Lab Chemicals &Supplies 639,570 657,720 652,969 2.10% 665,077 1.85% Misc. Operating Supplies 176,880 158,130 166,360 -5.95% 167,980 0.97% Property Tax Fees 91,690 76,400 76,500 -16.57% 76,500 0.00% Contractual Services Solids Removal 13,403,700 13,207,700 12,380,000 -7.64% 12,380,000 0.00% Other Waste Disp. 840,900 866,840 899,500 6.97% 899,500 0.00% Groundskeeping 193,000 187,530 200,000 3.63% 200,000 0.00% Janitorial 444,360 478,110 495,000 11.40% 495,000 0.00% Outside Lab Services 260,000 272,000 286,750 10.29% 291,590 1.69% Oxygen Plant Oper 306,000 335,000 335,000 9.48% 335,000 0.00% County Service Fee 512,410 474,760 489,003 -4.57% 503,672 3.00% Temporary Services 810,000 296,966 481,360 -40.57% 425,000 -11.71% Security Services 1,608,000 1,600,240 1,600,000 -0.50% 1,600,000 0.00% Other 3,655,604 3,440,340 2,068,740 -43.41% 2,308,740 11.60% Section 5— Page 5 Go to Table of Contents 2020-21 & 2021 -22 Budget Proposed Budget Net Operating Expense by Line Item (Continued) %Budget %Budget Budget 2019-20 2020-21 Change to 2021-22 Change to Description 2019-20 Projected Proposed 2019-20 Proposed 2020-21 Professional Services Legal 1,565,820 1,630,899 1,620,290 3.48% 1,621,190 0.06% Audit&Accounting 241,110 161,075 225,400 -6.52% 227,800 1.06% Engineering 1,361,000 842,059 980,000 -27.99% 980,000 0.00% EmAro Scientific Consult 200,000 91,130 240,000 20.00% 640,000 166.67% Software Prgm Consult 376,000 312,000 305,000 -18.88% 310,000 1.64% Advocacy Efforts 179,400 176,900 187,685 4.62% 187,975 0.15% Industrial Hygiene Svcs 50,000 50,000 50,000 0.00% 50,000 0.00% Labor Negotiation Svc 80,000 60,160 30,000 -62.50% - n/a Other 1,532,840 1,037,554 2,071,273 35.13% 1,789,947 -13.58% Research& Monitorina EmAron. Monitoring 549,600 549,600 654,700 19.12% 728,700 11.30% Air Quality Monitoring 100,000 125,000 150,000 50.00% 150,000 0.00% Research 450,000 475,000 500,000 11.11% 550,000 10.00% Repairs & Maintenance Materials &Services 19,774,364 20,273,210 23,891,620 20.82% 19,568,007 -18.10% Service Maint. Agreements 3,695,278 3,977,320 4,481,025 21.26% 4,610,800 2.90% Utilities Telephone 501,100 505,860 505,971 0.97% 506,084 0.02% Diesel For Generators 17,000 20,290 42,500 150.00% 43,000 1.18% Natural Gas 722,140 709,938 710,801 -1.57% 710,812 0.00% Power 7,237,990 6,228,730 6,064,165 -16.22% 6,076,735 0.21% Water 772,080 1,019,280 1,041,517 34.90% 1,042,207 0.07% Other Operating Costs Outside Equip Rental 122,000 79,230 100,000 -18.03% 100,000 0.00% Insurance Premiums 37,800 30,000 30,000 -20.63% 30,000 0.00% Prop& Gen Liab Insurance 1,720,000 1,720,000 1,800,000 4.65% 1,800,000 0.00% Freight 87,050 100,050 100,000 14.88% 100,000 0.00% Misc. Operating Expense 249,460 242,088 304,457 22.05% 291,927 -4.12% Regulatory Operating Fees 769,000 909,500 976,600 27.00% 1,049,024 7.42% Contingency 756,200 - 776,998 2.75% 752,301 -3.18% Prior year reappropriation 377,600 - 457,057 21.04% 442,530 -3.18% Loss on obsolete inventory 11,550 55,890 10,000 -13.42% 10,000 0.00% Other Non-Oper Expense 114,080 111,830 126,820 11.17% 129,160 1.85% Materials, Supplies, &Services 90,160,857 85,639,576 92,654,426 2.77% 88,521,939 -4.46% Total Operating Requirements 188,595,097 181,461,056 194,736,226 3.26% 195,776,239 0.53% Less: Cost Allocation (20,378,610) (20,056,720) (20,825,710) 2.19% (21,711,080) 4.25% Net Operating Requirements $168,216,487 $161,404,336 $173,910,516 3.38% $174,065,159 0.09% Cost to Collect, Treat, & Dispose of 1 Million Gallons $ 2,451.42 $ 2,339.36 $ 2,534.40 $ 2,536.65 Flow, Million Gallons 68,620 68,995 68,620 68,620 Flow Per Day, MGD 188.00 188.51 188.00 188.00 Section 5— Page 6 Go to Table of Contents Notes to Operations Summary NOTES TO THE FISCAL YEAR 2020-21 and Workers' Compensation - This item is used to 2021-22 OPERATIONS BUDGET maintain the level of accumulated reserves for workers' compensation self-insurance. The Salaries, Wages & Benefits amount recommended is$518,900 for FY 2020-21 and $690,000 for FY 2021-22. The total estimated Salaries& Wages-The proposed budget is set at expenditures for the workers' compensation 639.0 Full Time Equivalent (FTE) positions for program are set forth in detail in the Self-Insurance FY 2020-21 and 2021-22. Provision has been section. made in the proposed salaries for FY 2020-21 and FY 2021-22 in order to comply with the terms of Unemployment Insurance - The Sanitation those current MOUs which extend through these District is on an actual claims paid basis,which has fiscal years. historically resulted in an overall lower cost because of a favorable claims history. This Retirement - The Sanitation District's employees appropriation is proposed at a level consistent with are members of the Orange County Employees the prior year's actual costs. Retirement System. Employees participate in one of three plans depending on hire date: Plan G/H Memberships - The Sanitation District has (older), Plan B, or Plan U (newer, with a lower memberships in agencies such as the National retirement benefit). The employer's required Association of Clean Water Agencies (NACWA), the contribution rate for Plan G/H has been increased National Water Research Institute (NWRI), the Water from 13.30 percent to 14.10 percent, Plan B has Environment Research Foundation (WERF), the been increased from 11.25 percent to California Association of Sanitation Agencies 11.97 percent, and Plan U has increased from (CASA), the Southern California Alliance of Publicly 10.37 percent to 10.88 percent in FY 2020-21. In Owned Treatment Works (SCAP), the Association of addition, for Plan G/H the Sanitation District pays California Water Agencies (ACWA), and the Center 3.5 percent on behalf of the employees. for Demographic Research (CDR). Group Insurance - This includes the Sanitation Administrative Expenses -These accounts include District's share of employees' medical and dental supplies, postage, technical journals and insurance plans, and life and disability insurance publications,forms, small office equipment, and small premiums. It also includes the other post- computer items. The small equipment and computer employment benefits that the Sanitation District is items cost less than $10,000 per item and exclude obligated to pay for retirees. The group insurance items that are capitalized. budget approximates$16,000 per employee. Printing and Publication - The budget provides for Tuition & Certification Reimbursements - To in-house and outside reproduction costs and reflects encourage the self-development and training of an expanded management information system and employees, the Sanitation District has a tuition and administrative requirements as well as a continuing certification reimbursement program. This demand by the public and regulatory agencies for appropriation is set at $138,000 for FY 2020-21 information. This group of accounts also includes and $141,000 for FY 2021-22. costs for photo processing, advertisements, and notices. Development Pay-To further promote employee efforts that increase job knowledge, skills, and Training & Meetings - This category includes abilities, the Sanitation District has established this ongoing technical and safety training and materials benefit for employees obtaining educational for staff, required training for computerized plant degrees and job-related certificates/ licenses. The monitoring, and control systems training to allow for a budget of$543,000 for FY 2020-21 and 2021-22 is more adaptive and flexible work force. Cost savings based on estimated employee participation. have been achieved in part through increased use of on-line training. The Sanitation District continues to Uniforms - This budget projection is for uniforms place an emphasis on safety, technical, leadership, provided to field and lab employees in accordance and management training. with employee MOUs. Section 5— Page 7 Go to Table of Contents 2020-21 & 2021 -22 Budget Operating Materials & Supplies well as approximately 300 pieces of major mobile equipment such as cars, trucks, cranes, and Chemical Coagulants - Chemical coagulants are generators.Also included in this group of accounts used to enhance the primary treatment process by is the cost of fuel for the compressed natural gas increasing the solids removal efficiencies and are station. The cost of the natural gas is partially used to control hydrogen sulfide levels in the recovered by selling the compressed natural gas digester gas. as vehicle fuel to outside users. The budgets for this group of items are expected to remain The budgeted amounts for FY 2020-21 and FY relatively the same for the next two fiscal years, 2021-22 for Anionic Polymer, Cationic Polymer, given no volatility in fuel prices. and Ferric Chloride are$446,000, $5.3 million, and $3.2 million respectively. These chemical Other Operating Materials & Supplies - This coagulants budgets represent no significant group of accounts is for miscellaneous items such change in usage or cost from the FY 2019-20 as scrubber acids, activated carbon, solvents, Adopted Budget. cleaners, hardware, janitorial supplies, tools, safety equipment, laboratory supplies, and Odor Control Chemicals-The Sanitation District property taxes that are required to operate and uses sodium hydroxide (caustic soda), and bleach maintain existing and expanding facilities. This as the primary odor control chemicals within the group of accounts is expected to remain relatively treatment plants' foul air scrubbers The bleach the same during fiscal years 2020-21 and 2021- budget of $392,000 for FY 2020-21 is a $30,000 22. increase over the previously approved budget, and is a strategic move to replace more expensive Contractual Services-The major component of this chemicals. In addition, muriatic acid is an odor category is biosolids removal and transportation control chemical used for cleaning the scrubbers. costs. Contracts have been executed with firms for agricultural reuse of residual solids and composting Ferrous chloride, magnesium hydroxide, calcium for biosolids disposal. The total costs budgeted for nitrate, and caustic soda are the primary odor solids removal is$12.4 million for FY 2020-21 and FY control chemicals used within the collection system 2021-22. The centrifuges are running at both plants and work by reducing the generation of hydrogen and producing a drier cake than the belt presses. The sulfide in the trunklines. The chemical dosage and drier cake produces a lower volume to be hauled costs reflect the established performance level and away and hauling costs are remaining steady. affects the use of chemicals at the treatment plants. This category also includes appropriations for other waste removal, janitorial, groundskeeping and The odor control budget is$6.9 million for FY 2020- security services, county service fees, temporary 21 and $7.2 million for FY 2021-22; an overall employment services to level out periodic increases decrease from the previously approved budget. in staff workload, long-term leaves, and position Disinfection Chemicals - Sodium Hypochlorite vacancies, outside laboratory services, manhole (bleach) is used at the treatment plants for the rehabilitation,and industrial line and outfall inspection disinfection of plant water and the control of and cleaning services. filamentous organisms in activated sludge in the Professional Services - This group of accounts secondary treatment process. The Sanitation includes General Counsel, special labor counsel, District's bleach budgets for the purpose of engineering, advocacy efforts, audit and accounting disinfection are $213,000 in fiscal years 2020-21 services, software program consulting, and other and 2021-22. technical consulting services. Sodium Bisulfite is used for dechlorination of Research and Monitoring - The costs in this outfall effluent at Plant No. 2, if required, to ensure category consist of contract services to carry out the that no residual chlorine is discharged into the extensive ocean monitoring program required by EPA ocean. The sodium bisulfite budgets are$5,000 in Region IX under the provisions of the Sanitation fiscal years 2020-21 and 2021-22. District's NPDES permit, air quality monitoring costs, Gasoline, Oil and Fuel - This group of accounts the Sanitation District's contribution to the Southern includes gasoline, oil, and diesel fuel required to California Coastal Water Research Project operate stationary treatment plant equipment as (SCCWRP) being conducted under a joint powers Section 5— Page 8 Go to Table of Contents Notes to Operations Summary agreement with other Southern California municipal estimated consumption and resulting costs for dischargers, operating costs for the Sanitation electrical energy purchased from Southern District's ocean monitoring vessel, and provides for California Edison for the plant processes and operational and ocean research and evaluation to support buildings is $5.2 million, excluding develop optimum operating parameters in the contingencies and electricity requirements of all treatment plants. Overall, this category of costs is outlying pump stations. This estimate includes expected to remain approximately the same for the normal operations of CenGen and assumes FY 2020-21 and FY 2020-21 budgets at $1.3 million $400,000 in savings due to battery utilization at and $1.4 million respectively. Plant No. 1. The total budgeted amount for purchased electricity is $6.1 million for the FY Repairs and Maintenance - The majority of the 2020-21 and 2021-22 budgets. materials and services budgets support the maintenance of the collection system and the Other Operating Costs treatment plants. This includes street overlays and manhole raising, manhole cover purchases, Insurance Premiums - Other than $30,000 surveying services, easement improvements, budgeted each year in the operating section to equipment maintenance, and out-sourced service insure the Sanitation District's ocean vessel, the contracts and maintenance agreements. The FY cost for general liability and property insurance 2020-21 and FY 2021-22 budgets include repairs and premiums is budgeted entirely within the Self- maintenance costs totaling $28.4 million and $24.2 Insurance section. million, respectively. Property & General Liability In-Lieu Insurance Materials and services for FY 2020-21 and FY 2021- Premium -This item is used to maintain the level 22 include: Bushard Diversion structure repair, of accumulated reserves for property and general Sunflower Trunkline liner repairs,centrifuge overhaul, liability self-insurance. The amount recommended primary and secondary clarifier rehabilitation and is$1.8 million for the FY 2020-21 and FY 2021-22 repairs, and other maintenance work including budgets. The total estimated expenditures for the digester cleaning, inlet gate replacement, fleet and insurance program are set forth in detail in the emergency generator maintenance. Self-Insurance section. Service agreements for FY 2020-21 and FY 2021-22 Other Operating & Non-Operating Expenses - include Information Technology maintenance, Expenses not chargeable elsewhere, such as support, and licenses for IBM software, Microsoft annual regulatory fees assessed by SCAQMD and Enterprise, Cisco Smart Net, Maximo, Oracle, and SWRCB, freight, obsolete inventory write-off, and disaster recovery hardware and software, and other miscellaneous items are recorded within Operations & Maintenance service contracts for these groups of accounts. crane certification, engine monitoring systems, door and gate maintenance, scale, fire extinguisher, and Cost Allocation - This represents direct labor and fire sprinkler certification, uninterruptible power benefit charge-outs and materials, supplies, and supply electrical maintenance, scaffolding, and tree services cost allocation to the capital projects where trimming. the related work is performed. Utilities - The cost for utilities is a significant Net Operating Requirements - This line item component of the operating budget. The overall cost represents the net salary, wages, benefits, materials, for utilities is anticipated to be $8.4 million for the FY supplies, and services related to operating costs for 2020-21 and FY 2021-22 budgets. collection, treatment, and disposal activities after charge-backs to CIP. Natural Gas - Natural gas is purchased to supplement the digester gas that is used to run the central generation facilities. The total natural gas budget is $711,000 for the FY 2020-2021 and FY 2021-22 budgets. Electricity - Electricity is the largest utility cost incurred by the Sanitation District. Purchased electricity is used to run the plant processes, support buildings, and pump stations. The Section 5— Page 9 Go to Table of Contents 2020-21 & 2021 -22 Budget This page was intentionally left blank. Section 5— Page 10 Go to Table of Contents General Management Administration 110 BOARD OF DIRECTORS GENERAL MANAGER ASSISTANT ADMINISTRATION GENERAL MANAGER MANAGER (2) SECRETARY TO THE GENERAL MANAGER Staffing Trends 2020-21 & 2021-22 Authorized FTE Positions Executive Managers 3.0 Manager 1.0 Supervisors / Professionals 1.0 5 5_4 4-5 5 Total 5.0 2017 2018 2019 2020 2021 2022 Section 6 - Page 1 Go to Table of Contents 2020-21 & 2021 -22 Budget Service Description The mission of the General Management Administration Division is to work with the Board of Directors to establish standards, policies and procedures, and the overall goals and Strategic Plan of the agency. The Division reports the Sanitation District's progress in meeting the established goals to support the Sanitation District's mission and provides general oversight of the agency's operations. The General Manager reports directly to the Board of Directors and provides general oversight to all operations, interagency relations, legislative activities, communications, and strategic planning. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Create a new 5-year Strategic Plan & ♦ A Two-Year Strategic Plan was created and Recommend for Board Adoption. approved by the Board of Directors in November 2019. ♦ Manage operating expenditures to within 96% to ♦ On schedule to close out the year's operating 100% of the approved budget budget at 96% of the approved budget. ♦ Ensure OCSD does not exceed 640 FTEs ♦ Current FTE count is 605. ♦ Contribute to employee development through the ♦ At mid-year, the BLAST program has reached 34% BLAST program by providing quality leadership of OCSD staff. The program is currently being development training, materials, classes and evaluated to determine if changes need to be made. presentations by reaching at least 70% of OCSD staff 2020-21 &2021-22 Performance Objectives ♦ Update 2-year Strategic Plan and recommend for Board Action. ♦ Manage operating expenditures to within 96% to 100% of the approved budget. ♦ Ensure OCSD does not exceed 639 FTEs. ♦ Create a new Work Plan for Fiscal Year 2020-21 and 2021-22. Performance Measures Summary 2018-19 2019-20 2020-21 2021-22 Justification Actual Projected Proposed Proposed ♦ Update 2-Year Strategic Achieved Achieved Achieve Achieve Board Approval Plan ♦ Operating Expenditures Achieved Achieved Achieve Achieve Board Approval ♦ Do not exceed approved Achieved Achieved Achieve Achieve Board Approval FTEs ♦ BLAST Program Reach Achieved Achieved N/A N/A In-house standard ♦ Create Work Plan N/A N/A Achieve Achieve Board Approval Section 6- Page 2 Go to Table of Contents General Management Administration Budget Overview The FY 2020-21 &2021-22 budgets for the General Management Administration Division reflect a decrease of 40 % and an increase of 2% over the prior year, respectively. The decrease is primarily due to a decrease in personnel costs and a decrease 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. The contingency has been allocated to department 200. 2019-20 Adjusted Budget - Total Operating Requirements $ 3,172,680 Salaries for Position Changes: Transfer of Positions from/(to) Other Divisions New or(decreased) FTE - Changes in Personnel Expenses: Other net salary adjustments (151,900) Change in OCERS retirement costs (20,820) Change in group insurance costs (31,300) Other benefit cost adjustments (5,300) Other Cost Adjustments: Increase in memberships 59,650 Decrease in meeting and training (8,350) Increase in legal services 200,000 Decrease in other professional services (50,000) Decrease in utilities (110,000) Decrease in misc. operating expenses (8,500) Decrease in General Manager's contingency/reappropriations (1,133,800) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (1,530) 2020-21 Proposed Budget - Total Operating Requirements $ 1,910,830 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 28,200 Change in OCERS retirement costs 4,000 Change in group insurance costs 3,300 Other benefit cost adjustments 1,100 Other Cost Adjustments: Increase in memberships 7,140 Decrease in meeting and training (13,630) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services - 2021-22 Proposed Budget - Total Operating Requirements $ 1,940,940 Section 6 - Page 3 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018.19 Revised 2019.20 2020-21 Budget 2021.22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 1,006,919 $ 1,195,820 $ 889,400 $ 986,500 (17.50%) $ 1,023,100 3.71% Supplies 316,928 348,980 356,020 398,730 14.26% 392,240 (1.63%) Professional&Contractual Services 349,786 375,000 748,390 525,000 40.00% 525,000 0.00% Research&Monitoring - - - - - - - Repairs&Maintenance - - - Utilities 104,536 110,000 106,900 - (100.00%) - - Other 9,483 1,142,880 130 600 (99.95%) 600 0.00% Total 1 $ 1,787,652 $ 3,172,680 $ 2,100,840 $ 1,910,830 (39.77%) $ 1,940,940 1 1.58% Expenditure Trends $2,334,960 $2,110,386 $1,787,652 $1,910,830 $1,940,940 2017 2018 2019 2020 2021 2022 Section 6 - Page 4 Go to Table of Contents Board Services 120 ASSISTANT GENERAL MANAGER ADMINISTRATION MANAGER CLERK OF THE BOARD ASSISTANT RECORDS DATA PROGRAM OFFICE CLERK OF THE MANAGEMENT MANAGEMENT ASSISTANT(2) ASSISTANT BOARD SPECIALIST TECHNICIAN I Staffing Trends 2020-21 & 2021-22 Authorized FTE Positions Supervisors / Professionals 3.00 7 Technical Staff 1.00 5-5-5 5/ Administrative / Clerical 3.00 Total 7.00 2017 2018 2019 2020 2021 2022 Section 6 - Page 5 Go to Table of Contents 2020-21 & 2021 -22 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 of the Board's office promotes public trust and ensures transparency by: accurately recording and preserving the legislative actions of OCSD; safeguarding the vital, historic and permanent records of OCSD as their official custodian; preparing and publishing agendas and notices in accordance with legal requirements; receiving and responding to requests for records, acts as filing officer for Statement of Economic Interest filings; receiving and processing summons, subpoenas and complaints filed against OCSD; and maintaining rosters of the Board of Directors, appointed committees and historical events. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Maintain District Transparency Certificate of Excellence ♦ Achieved 100% success rate ♦ Timely responses to Public Records Requests within ♦ Achieved 100% success rate allotted regulatory guidelines ♦ Maintain compliance: OCSD Conflict of Interest Code ♦ Achieved 100% success rate filings and Mandatory training (Ethics and Harassment) ♦ Publish and distribute agenda packets to the Board of ♦ Achieved 100% success rate Directors one week prior to meeting ♦ Advise key staff of items approved or denied after ♦ Achieved 100% success rate Board of Directors Meeting 2020-21 & 2021-22 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 95% of public records requests within 7 business days. ♦ 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 2018-19 2019-20 2020-21 2021-22 Justification Actual Projected Proposed Proposed ♦ Board Agenda Packages 100% 100% 100% 100% In-house standard ♦ Maintain and post accurate 100% 100% 100% 100% Legal compliance Records of Board Actions ♦ Respond to 95% of public 100% 100% 100% 100% In-house standard requests within 7 business days ♦ 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 Go to Table of Contents Board Services Budget Overview The FY 2020-21 &2021-22 budgets for the Board Services Division reflect an increase of 72% and an increase of 3% over the prior year, respectively. The increase is primarily due to an increase in personnel adjustments to salaries and benefits and other expenses. 2019-20 Adjusted Budget - Total Operating Requirements $ 693,980 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, vacancy, etc.) 373,500 Change in OCERS retirement costs 42,880 Change in group insurance costs 24,200 Other benefit cost adjustments 2,100 Other Cost Adjustments: Increase in temporary services 25,000 Decrease in legal services (200,000) Increase in other professional services 200,000 Increase in training & meeting 7,980 Increase in misc. operating expenses 30,600 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (4,390) 2020-21 Proposed Budget - Total Operating Requirements $ 1,195,850 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 32,400 Change in OCERS retirement costs 3,700 Change in group insurance costs 5,500 Other benefit cost adjustments 1,800 Other Cost Adjustments: No other significant cost changes Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (2,450) 2021-22 Proposed Budget - Total Operating Requirements $ 1,236,800 Section 6 - Page 7 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018.19 Revised 2019.20 2020.21 Budget 2021.22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 521,058 $ 424,020 $ 620,500 $ 866,700 104.40% $ 910,100 5.01% Supplies 71,225 69,760 58,010 73,330 5.12% 70,880 (3.34%) Professional&Contractual Services 225,989 200,000 31,890 225,000 12.50% 225,000 0.00% Research&Monitoring - - - - - - - Repairs&Maintenance Utilities - - - - - - - Other 1,514 200 8,420 30,820 15310.00% 30,820 0.00% Total $ 819,786 $ 693,980 $ 718,820 $ 1,195,850 72.32% $ 1,236,800 3.42% Expenditure Trends $1,236,800 $i,19s,850 $819,786 $693,980 $658,863 $63S,957 20a7 2018 2019 2020 2021 2022 Section 6- Page 8 Go to Table of Contents Public Affairs 140 ASSISTANT GENERAL MANAGER ADMINISTRATION MANAGER PRINCIPAL SENIOR PUBLIC PUBLICAFFAIRS AFFAIRS SPECIALIST SPECIALIST PUBLICAFFAIRS GRAPHICS SPECIALIST (2) DESIGNER ADMINISTRATIVE ASSISTANT Staffing Trends 2020-21 & 2021-22 Authorized FTE Positions Supervisors / Professionals 4.0 Administrative & Clerical 2.0 s 6 5 5 5 5� Total 6.0 2017 2018 2019 2020 2021 2022 Section 6 - Page 9 Go to Table of Contents 2020-21 & 2021 -22 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 comprehensive communications program that promotes clear and transparent communications with all identified audiences and to promote the understanding of OCSD's mission to protect public health and the environment. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Provide services and implement programs ♦ At mid-year, this goal had already been completed and that meet the communications needs of exceeded. To date, over 200 pieces of internal communication OCSD's internal audiences by producing a have been produced. minimum of 70 internal communication ♦ Produced and circulated daily articles on MyOCSD, weekly 3 pieces. Things to Know emails, monthly news in Digester, and bi- monthly stories in Pipeline Newsletter. ♦ Coordinated employee events including holiday luncheons, Harvest Festival, Honor Walk, and ice cream social. ♦ Provide services and implement programs ♦ At mid-year, this goal had already been met and exceeded. that meet communications needs of Over 85 pieces of external communication have been produced OCSD's external audiences by reaching a and distributed reaching over 40,000 people. minimum of 3,000 people. ♦ Hosted over 500 people at OCSD's 65th Anniversary Open House, over 1,200 people toured OCSD, staff participated in 12 speaking engagements, and hosted a booth at 6 community events. ♦ Support General Manager activities and ♦ Prepared/presented reports on division efforts to OCSD provide information to Board of Directors Legislative and Public Affairs Committee. through the General Manager's monthly ♦ Prepared the GM Monthly Report. report and the new Board member orientation. ♦ Proactive engagement in legislative ♦ Monitoring approximately one hundred bills, specifically six to advocacy efforts that could impact OCSD eight of high priority to OCSD and the industry. Have also and the industry. submitted four position letters. 2020-21 &2021-22 Performance Objectives ♦ Provide services and implement programs that meet the communications needs of OCSD's internal audiences by producing a minimum of 100 internal communication pieces. ♦ Provide services and implement programs that meet communications needs of OCSD's external audiences by reaching a minimum of 5,000 people. ♦ Support General Manager activities and provide information to Board of Directors through the General Manager's monthly report, monthly city/agency specific briefing reports. ♦ Proactive engagement in legislative advocacy efforts that could impact OCSD and the industry. Performance Measures Summary 2018-19 2019-20 2020-21 2021-22 Justification Actual Projected Proposed Proposed ♦ Internal Services and Programs Achieved Achieved Achieve Achieve Board Approved PAO Strategic Plan ♦ External Services and Programs Achieved Achieved Achieve Achieve Board Approved PAO Strategic Plan ♦ Board of Directors and GM Support Achieved Achieved Achieve Achieve Board Approved PAO Strategic Plan ♦ Legislative Advocacy Achieved Achieved Achieve Achieve Board Approved PAO Strategic Plan Section 6- Page 10 Go to Table of Contents Public Affairs Budget Overview The FY 2020-21 &2021-22 budgets for the Public Affairs Division reflect an increase of 13% and a decrease of 1%from the prior year, respectively. The increase is primarily due to increase in personnel costs and in operating supplies and other expenses. 2019-20 Adjusted Budget - Total Operating Requirements $ 1,155,600 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, vacancy, etc.) 84,000 Change in OCERS retirement costs 8,700 Change in group insurance costs 30,700 Other benefit cost adjustments (1,000) Other Cost Adjustments: Increase in notices &Ads 25,000 Increase in training 14,600 Increase in tools 20,000 Decrease in temporary services (45,000) Decrease in other professional services (10,000) Increase in misc. operating expense 23,500 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (5,810) 2020-21 Proposed Budget - Total Operating Requirements $ 1,300,290 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 29,900 Change in OCERS retirement costs 3,800 Change in group insurance costs 4,900 Other benefit cost adjustments 1,600 Other Cost Adjustments: Decrease in training (14,600) Decrease in tools (20,000) Decrease in misc. operating expense (14,400) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 300 2021-22 Proposed Budget - Total Operating Requirements $ 1,291,790 Section 6- Page 11 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018.19 Revised 2019.20 2020.21 Budget 2021.22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 734,346 $ 694,400 $ 759,800 $ 816,800 17.63% $ 857,000 4.92% Supplies 46,174 61,900 46,950 107,650 73.91% 73,350 (31.86%) Professional&Contractual Services 257,166 314,400 305,226 267,400 (14.95%) 267,400 0.00% Research&Monitoring - - - - - - - Repairs&Maintenance - - Utilities - - - - - - Other 77,923 84,900 84,800 108,440 27.73% 94,040 (13.28%) Total $ 1,115,609 $ 1,155,600 $ 1,196,776 $ 1,300,290 12.52% $ 1,291,790 (0.65%) Expenditure Trends $1,300,290 $1,291,790 $1,093,062 $1,115,609 $1,155,600 $1,001,396 2017 2018 2019 2020 2021 2022 Section 6 - Page 12 Go to Table of Contents Human Resources Administration 160 GENERAL MANAGER DIRECTOR OF HUMAN RESOURCES HUMAN RESOURCES& RISK MANAGER HUMAN RESOURCES ASSISTANT(2) HUMAN RESOURCES HUMAN RESOURCES SUPERVISOR SUPERVISOR PRINCIPAL HUMAN PRINCIPAL HUMAN RESOURCES RESOURCES ANALYST ANALYST SENIOR HUMAN SENIOR HUMAN RESOURCES RESOURCES ANALYST(2) ANALYST(2) HUMAN RESOURCES ANALYST(4) Staffing Trends 2020-21 & 2021-22 Authorized FTE Positions Executive Manager 1.0 Manager 1.0 Supervisors / Professionals 12.0 1s 1s 1s 1s 1s 1s Administrative/Clerical 2.0 Total 16.0 2017 2018 2019 2020 2021 2022 Section 6 - Page 13 Go to Table of Contents 2020-21 & 2021 -22 Budget Service Description The mission of Human Resources Operations is to attract, motivate and retain a successful workforce by providing competitive compensation and benefits programs, administering a fair and consistent staffing program, ensuring consistency in the application of policies and procedures, and conducting these and associated activities in accordance with state and federal regulations. These programs are administered by providing a high level of customer service, operating efficiently, and providing professional consultation on human resources matters. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Complete all labor negotiations with all units by 6/30/2019. ♦ Labor negotiations executed 9/23/2019. ♦ Continue with the development and implementation of ♦ Implemented, continuous. effective workforce planning/development and successions planning strategies. ♦ Implement a comprehensive employee relations and labor ♦ In process. Will be completed in April. relations training program by the end of fiscal year 2019-20. ♦ Meet the training level of service of 45 hours per employee. ♦ Estimate will meet performance measure. ♦ Manage the department's budget to within 96% to 100% of ♦ Estimated to stay within budget. the approved budget. 2020-21 &2021-22 Performance Objectives ♦ District wide Comp& Class Study completed by FY 21/22. ♦ Re-launching a revamped BLAST program in FY 20/21. ♦ Implement a comprehensive Management/Leadership training in FY 20/21. ♦ 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 2018-19 2019-20 2020-21 2021-22 Justification Actual Projected Proposed Proposed ♦ Approved labor contracts Implement Sustain Sustain Sustain HR Work Plan ♦ Workforce Planning/ Sustain Sustain Sustain Sustain OCSD Strategic Plan Workforce Development ♦ Training Level of Service Exceeded In Progress Sustain Sustain Level of Service ♦ Manage Budget 97% In Progress 96-100% 96-100% In-house standard Section 6- Page 14 Go to Table of Contents Human Resources Administration Budget Overview The FY 2020-21 &2021-22 budgets for the Human Resources Administration Division reflect a decrease of 16% and an increase of 7% over the prior year, respectively. The 2020-21 decrease is primarily due to decreases in personnel costs. The 2021-22 increase is primarily due to increase in professional &contractual services. 2019-20 Adjusted Budget - Total Operating Requirements $ 4,987,200 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, vacancy, etc.) (57,500) Change in retirement costs (847,130) Change in group insurance costs (37,200) Other benefit cost adjustments 38,000 Other Cost Adjustments: Increase in notices &Ads 50,000 Decrease in training (34,580) Increase in legal expenses 250,000 Decrease in other professional services (147,000) Decrease in labor negotiation services (50,000) Increase in other non-operating expense 10,220 Increase in other contractual services 7,125 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (1,250) 2020-21 Proposed Budget - Total Operating Requirements $ 4,167,885 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 120,200 Change in retirement costs 16,200 Change in group insurance costs 13,200 Other benefit cost adjustments 7,100 Other Cost Adjustments: Decrease in training (65,100) Increase in other professional services 230,000 Decrease in labor negotiation services (30,000) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services - 2021-22 Proposed Budget - Total Operating Requirements $ 4,459,485 Section 6- Page 15 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018.19 Revised 2019.20 2020.21 Budget 2021.22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 4,237,951 $ 3,664,930 $ 3,498,210 $ 2,761,100 (24.66%) $ 2,917,800 5.68% Supplies 86,848 257,230 138,800 267,920 4.16% 202,820 (24.30%) Professional&Contractual Services 863,445 974,000 657,240 1,034,125 6.17% 1,234,125 19.34% Research&Monitoring - - - - - - - Repairs&Maintenance 52 - Utilities - - - - - - - Other 69,068 91,040 92,520 104,740 15.05% 104,740 0.00% Total $ 5,257,364 $ 4,987,200 $ 4,386,770 $ 4,167,885 (16.43%) $ 4,459,485 7.00% Expenditure Trends $5,257,364 $4,987,200 $4, ,485 �$4,038�,470 4,167,885 459 L$3,410,308 2017 2018 2019 2020 2021 2022 Section 6 - Page 16 Go to Table of Contents Risk Management/Safety/Security 161 DIRECTOR OF HUMAN RESOURCES HUMAN RESOURCES AND RISK MANAGER SAFETY& HEALTH SUPERVISOR ADMINISTRATIVE SENIOR ASSISTANT CONSTRUCTION INSPECTOR SECURITY& SAFETY& HEALTH EMERGENCY SPECIALIST(2) PLANNING SPECIALIST SENIOR SAFETY& SAFETY& H EALTH HEALTH REPRESENTATIVE REPRESENTATIVE (2) (2) Staffing Trends 2020-21 & 2021-22 Authorized FTE Positions 11 11 11 11�10 10 Supervisors/ Professionals 8.0 Administrative & Clerical 2.0 Total 10.0 2017 2018 2019 2020 2021 2022 Section 6 - Page 17 Go to Table of Contents 2020-21 & 2021 -22 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. 2019-20 Performance Objectives 2019-20Performance Results ♦ Safety Compliance Training ♦ Completed. ♦ Develop JSA's for High Risk Activities ♦ Ongoing. ♦ Third Party Safety Audit ♦ Ongoing. ♦ Revised Risk Register ♦ Ongoing. ♦ Implement Security Recommendations ♦ Ongoing. 2020-21 &2021-22 Performance Objectives ♦ Ensure 100% of Safety Compliance Training is completed. ♦ Develop JSA's for high risk work activities. ♦ Contractor Safety 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. Performance Measures Summary 2018-19 2019-20 2020-21 2021-22 Justification Actual Projected Proposed Proposed ♦ Safety Compliance Training 100% 100% 100% 100% OCSD Strategic Plan ♦ Develop JSA's Ongoing Ongoing 100% Planned OSHA Requirement ♦ Contractor Safety Initiative Ongoing Ongoing Planned Planned Uniform Bid Evaluation ♦ Third Party VPP Feasibility Completed N/A N/A N/A GM Strategic Plan Audit ♦ Security Recommendations Ongoing Ongoing Planned Planned DHS Recommendations ♦ Implement Leading Safety Completed Completed Planned Planned Continuous Safety Indicator Improvement ♦ Revise Risk Register Completed Completed N/A N/A GM Strategic Plan Section 6- Page 18 Go to Table of Contents Risk Management/Safety/Security Budget Overview The FY 2020-21 &2021-22 budgets for the Risk Management/Safety/Security Division reflect a decrease of 32% and an increase of 2% from the prior year, respectively. These changes are primarily due to a reallocation of the property and general liability insurance in-lieu premiums to department 200. 2019-20 Adjusted Budget - Total Operating Requirements $ 5,785,360 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, vacancy, etc.) (54,600) Change in OCERS retirement costs (7,930) Change in group insurance costs (52,000) Other benefit cost adjustments (20,500) Other Cost Adjustments: Increase in training 6,640 Increase in safety equipment/tools 21,000 Decrease in other contractual services (10,000) Decrease in other professional services (34,000) Decrease in property&general liability insurance (1,720,000) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 3,482 2020-21 Proposed Budget - Total Operating Requirements $ 3,917,452 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 67,500 Change in OCERS retirement costs 6,700 Change in group insurance costs 7,500 Other benefit cost adjustments 2,400 Other Cost Adjustments: No other significant cost changes Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 2,358 2021-22 Proposed Budget - Total Operating Requirements $ 4,003,910 Section 6- Page 19 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018.19 Revised 2019.20 2020.21 Budget 2021-22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 1,276,140 $ 1,377,330 $ 1,088,770 $ 1,242,300 (9.80%) $ 1,326,400 6.77% Supplies 336,561 514,880 559,815 542,802 5.42% 545,160 0.43% Professional&Contractual Services 1,991,202 2,137,500 2,099,500 2,091,500 (2.15%) 2,091,500 0.00% Research&Monitoring - - - - - - - Repairs&Maintenance 3,768 3,050 4,550 4,550 49.18% 4,550 0.00% Utilities - - - - - - - Other 1,330,086 1,752,600 1,754,800 36,300 (97.93%) 36,300 0.00% Total $ 4,937,757 $ 5,785,360 $ 5,507,435 $ 3,917,452 (32.29%) $ 4,003,910 2.21% Expenditure Trends $5,452,890 $5,785,360 $4,276,844 $4,937,757 $3,917,452 $4,003,910 2017 2018 2019 2020 2021 2022 Section 6 - Page 20 Go to Table of Contents Administrative Services Administration 210 GENERAL MANAGER ASSISTANT GENERAL MANAGER ADMINISTRATIVE ASSISTANT Staffing Trends 2020-21 & 2021-22 Authorized FTE Positions Administrative / Clerical 1.0 3-3-3-3 \ 1 1 Total 1.0 2017 2018 2019 2020 2021 2022 Section 6 - Page 21 Go to Table of Contents 2020-21 & 2021 -22 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-to-day operations and strategic planning. The division is the departmental liaison with Executive Management, the Administration Committee, the Board of Directors, and other departments of OCSD. 2019-20 Performance Measures 2019-20 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 loth ♦ All Treasury investments will be in compliance with ♦ All Treasury investments in compliance 94.54% 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. 2020-21 &2021-22 Performance Objectives ♦ Submit annual sewer service fees (SSF)within property parcel database to the County by August 101n ♦ 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 2018-19 2019-20 2020-21 2021-22 Justification Actual Projected Proposed Proposed ♦ Submit SSF to the County Yes Yes Expected Expected In-house by August loth standard ♦ Investment Compliance 100% 94.54% 100% 100% In-house standard ♦ Uphold Solicitation 100% 100% 100% 100% In-house Schedules standard Section 6 - Page 22 Go to Table of Contents Administrative Services Administration Budget Overview The FY 2020-21 & 2021-22 budgets for the Administrative Services Administration &Consolidated Service Divisions reflect an increase of 4034% and an increase of 4% over the prior year, respectively. The increase is primarily due to general manager contingency& prior year reappropriation, property&general liability Insurance, and utility costs being reallocated to Administration/Consolidated Service divisions. 2019-20 Adjusted Budget - Total Operating Requirements $ 180,710 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, vacancy, etc.) 77,100 Change in OCERS retirement costs 13,750 Change in group insurance costs (16,700) Other benefit cost adjustments 1,644,700 Other Cost Adjustments: Increase in legal expense 6,190 Increase in utilities 1,260,677 Increase in property tax 76,500 Increase in contractual services 1,184,003 Increase in property&general liability insurance 1,800,000 Increase in general manager contingency& reappropriation 1,234,055 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 9,830 2020-21 Proposed Budget - Total Operating Requirements $ 7,470,815 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 246,300 Change in OCERS retirement costs 40,800 Change in group insurance costs 4,300 Other benefit cost adjustments 300 Other Cost Adjustments: Increase in county service fee 14,669 Decrease in general manager contingency&reappropriation (39,224) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 2,221 2021-22 Proposed Budget - Total Operating Requirements $ 7,740,181 Section 6- Page 23 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019-20 Operating Expenses 2018-19 Revised 2019-20 2020-21 Budget 2021-22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 488,271 $ 165,150 $ 534,200 $ 1,884,000 1040.78% $ 2,175,700 15.48% Supplies 3,829 500 1,265 76,850 15270.00% 76,850 0.00% Professional&Contractual Services 50,783 15,000 20,790 1,205,193 7934.62% 1,220,262 125% Research&Monitoring - - - - - - - Repairs&Maintenance - - - Utilities - - - 1,260,677 - 1,262,498 0.14% Other 29 60 40 3,044,095 5073391.67% 3,004,871 (129%) Total $ 542,912 $ 180,710 $ 556,295 $ 7,470,815 1 4034.15% $ 7,740,181 1 3.61% Expenditure Trends $7,470,81s $7,740,181 $503,698 $426,607 .$542,912 $180,710 2017 2018 2019 2020 2021 2022 Section 6 - Page 24 Go to Table of Contents Financial Management 220 ASSISTANT GENERAL MANAGER CONTROLLER PRINCIPAL SENIOR STAFF ACCOUNTANT ANALYST(2) ACCOUNTING ACCOUNTING ACCOUNTING SUPERVISOR- SUPERVISOR- SUPERVISOR- Financial Reporting Payroll and Budget and and Accounts Payable Revenue Planning PRINCIPAL PRINCIPAL PRINCIPAL SENIOR STAFF PROJECT ACCOUNTANT ACCOUNTANT ANALYST CONTROLS ANALYST ACCOUNTANT PAYROLL ACCOUNTING PRINCIPAL STAFF TECHNICIAN(2) ASSISTANT II(3) ANALYST(2) ACCOUNTING SENIOR ASSISTANT II(3) ACCOUNTANT ACCOUNTANT Staffing Trends 2020-21 &2021-22 Authorized FTE Positions 24 24 Manager 1.0 19 19 19 19/ Supervisors/ Professionals 15.0 Administrative & Clerical 8.0 Total 24.0 2017 2018 2019 2020 2021 2022 Section 6 - Page 25 Go to Table of Contents 2020-21 & 2021 -22 Budget Service Description The mission of the Financial Management Division is to maintain financial oversight and administration of all Sanitation 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 Sanitation 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. 2019-20 Performance Objectives 2019-20 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. ♦ The current backlog of rebate claims will be ♦ All sewer service fee rebate requests were processed resulting in all claims being processed with processed within 90 days 100% of the time. 90 days of receipt. ♦ 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 94.54%of the time. 2020-21 &2021-22 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. ♦ Rebate claims will be processed within 90 days of receipt 90% of the time. ♦ 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 2018-19 2019-20 2020-21 2021-22 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 100% 100% 90% 90% In-house standard Standard ♦ Payroll Error Free Standard 100% 100% 99.5% 99.5% In-house standard ♦ Debt Service Payment Standard 100% 100% 100% 100% In-house standard ♦ Investment Compliance 100% 94.54% 100% 100% In-house standard Section 6- Page 26 Go to Table of Contents Financial Management Budget Overview The FY 2020-21 &2021-22 budgets for the Financial Management Division reflects a 20% increase and an increase of 4% over the prior year, respectively. The minimal increase in 2020-21 is primarily due to the increase in personnel costs due to internal reorganization, and utility& repair costs from rental properties, offset by a decrease in county service fee. The 2021-22 decrease is primarily due to increases in personnel costs. 2019-20 Adjusted Budget - Total Operating Requirements $ 3,442,410 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, vacancy, etc.) 1,038,200 Change in OCERS retirement costs 133,450 Change in group insurance costs 39,300 Other benefit cost adjustments (13,700) Other Cost Adjustments: Increase in meeting/training 16,545 Decrease in county service fee (512,410) Decrease in other contractual service (345,000) Increase in other professional services 227,425 Increase in utilities 24,055 Increase in repairs & maintenance 97,078 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (1,510) 2020-21 Proposed Budget - Total Operating Requirements $ 4,145,843 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 128,400 Change in OCERS retirement costs 15,500 Change in group insurance costs 19,200 Other benefit cost adjustments 6,400 Other Cost Adjustments: Decrease in meeting/training (1,815) Decrease in other contractual service (10,000) Decrease in other professional services (17,875) Increase in repairs & maintenance 1,843 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 3,582 2021-22 Proposed Budget - Total Operating Requirements $ 4,291,078 Section 6- Page 27 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018.19 Revised 2019.20 2020.21 Budget 2021.22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 2,416,215 $ 2,283,750 $ 2,811,600 $ 3,481,000 52.42% $ 3,650,500 4.87% Supplies 23,528 40,610 40,065 56,595 39.36% 55,100 (2.64%) Professional&Contractual Services 535,184 1,117,670 1,136,841 486,185 (56.50%) 461,210 (5.14%) Research&Monitoring - - - - - - - Repairs&Maintenance - - 97,078 - 98,921 1.90% Utilities - - - 24,055 - 24,417 1.50% Other 437 380 880 930 144.74% 930 0.00% Total $ 2,975,364 $ 3,442,410 $ 3,989,386 $ 4,145,843 20.43% $ 4,291,078 3.50% Expenditure Trends $4,145,843 $4,291,078 $3,928,939 $3,234,439 -53,442,410 $2,975,364 2017 2018 2019 2020 2021 2022 Section 6 - Page 28 Go to Table of Contents Contracts, Purchasing, & Materials Management 230 ASSISTANT GENERAL MANAGER CONTRACTS& PURCHASING MANAGER SENIOR STAFF ANALYST CONTRACTS PURCHASING MATERIALS SUPERVISOR SUPERVISOR CONTROL SUPERVISOR PRINCIPAL LEAD CONTRACTS PRINCIPAL BUYER STOREKEEPER(2) ADMINISTRATOR(2) SENIOR SENIOR CONTRACTS SENIOR BUYER(2) STOREKEEPER(3) ADMINISTRATOR(3) CONTRACTS BUYER(2) STOREKEEPER(4) ADMINISTRATOR(3) CONTRACTS/ CONTRACTS/ PURCHASING PURCHASING ASSISTANT(2) ASSISTANT(2) Staffing Trends 2020-21 & 2021-22 Authorized FTE Positions Manager 1.00 32 32 32 32 31 31 Supervisors/ Professionals 17.00 Administrative & Clerical 13.00 Total 31.00 2017 2018 2019 2020 2021 2022 Section 6 - Page 29 Go to Table of Contents 2020-21 & 2021 -22 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 the Sanitation 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. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Re-implement the cycle count program and maintain ♦ Achieved. a 97% accuracy rate or better. ♦ Obtain the 2019 "Achievement of Excellence in ♦ AEP award received. Procurement" (AEP) award by meeting all National requirements. ♦ Successfully implement a new surplus ordinance. ♦ Achieved. ♦ Conduct District-wide procurement training. ♦ In progress. ♦ Successfully implement a new Purchasing ♦ Completed. Ordinance. 2020-21 &2021-22 Performance Objectives ♦ Re-implement the cycle count program and maintain a 97% accuracy rate or better. ♦ Obtain the annual "Achievement of Excellence in Procurement" (AEP) award by meeting all National requirements. ♦ Conduct District-wide procurement training. ♦ Review and track Certificates of Insurance for vendors and contractors. Performance Measures Summary 2018-19 2019-20 2020-21 2021-22 Justification Actual Projected Proposed Proposed ♦ Cycle Count Achieved Achieved Achieve Achieve APICS standard ♦ AEP Award Obtained Obtained Obtain Obtain NPI, NAPM, NIGP, & CAPPO standards ♦ Procurement Training In Progress In Progress In Progress In Progress Best Practices ♦ Insurance Tracking N/A Implement Achieve Achieve Contract Compliance Section 6- Page 30 Go to Table of Contents Contracts, Purchasing, & Materials Management Budget Overview The FY 2020-21 & 2021-22 budgets for the Contracts, Purchasing, & Materials Management Division reflect a decrease of 7% and an increase of 4% over the prior year, respectively. These changes are primarily due to decrease in personnel costs and temporary services. 2019-20 Adjusted Budget - Total Operating Requirements $ 4,966,960 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, vacancy, etc.) (178,900) Change in OCERS retirement costs (84,400) Change in group insurance costs (105,000) Other benefit cost adjustments (16,100) Other Cost Adjustments: Increase in minor furniture &fixtures 32,500 Increase in training 10,080 Increase in misc. operating supplies 11,000 Decrease in temporary services (65,000) Increase in software program consult 25,000 Decrease in loss on obsolete inventory (10,000) Increase in legal expenses 10,000 Increase in other operating supplies 24,500 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (1,634) 2020-21 Proposed Budget - Total Operating Requirements $ 4,619,006 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 162,000 Change in OCERS retirement costs 19,200 Change in group insurance costs 25,100 Other benefit cost adjustments 8,600 Other Cost Adjustments: Decrease in minor furniture/fixture (32,500) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (1,234) 2021-22 Proposed Budget - Total Operating Requirements $ 4,800,172 Section 6- Page 31 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018.19 Revised 2019.20 2020.21 Budget 2021.22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 4,460,836 $ 4,617,600 $ 3,914,100 $ 4,233,200 (8.32%) $ 4,448,100 5.08% Supplies 44,045 44,860 95,594 96,186 114.41% 62,452 (35.07%) Professional&Contractual Services 208,093 205,000 130,490 175,000 (14.63%) 175,000 0.00% Research&Monitoring - - - - - - Repairs&Maintenance (39,558) (26,140) - Utilities - - - - - - - Other 1 1,011,384 1 99,500 124,480 1 114,620 15.20% 114,620 0.00% Total $ 5,684,800 1 $ 4,966,960 $ 4,238,524 1 $ 4,619,006 (7.01%) $ 4,800,172 3.92% Expenditure Trends $5,684,800 iiiiiiiiiiiiiiij $4,966,960 $4,800,172 $4,470,980 $4,208,27 $4,619,006 2017 2018 2019 2020 2021 2022 Section 6- Page 32 Go to Table of Contents Information Technology 250 ASSISTANT GENERAL MANAGER INFORMATION TECHNOLOGY SYSTEMS& OPERATIONS MANAGER ADMINISTRATIVE ASSISTANT INFORMATION INFORMATION INFORMATION TECHNOLOGY TECHNOLOGY TECHNOLOGY SUPERVISOR SUPERVISOR SUPERVISOR SENIOR PRINCIPAL SENIOR PRINCIPAL SENIOR INFORMATION DATA INFORMATION INFORMATION INFORMATION INFORMATION TECHNOLOGY MANAGEMENT TECHNOLOGY TECHNOLOGY TECHNOLOGY TECHNOLOGY ANALYST TECH II(6) ANALYST(3) ANALYST(3) ANALYST(4) ANALYST(6) INFORMATION DATA INFORMATION INFORMATION INFORMATION INFORMATION TECHOLOGY MANAGEMENT TECHNOLOGY TECHNOLOGY TECHNOLOGY TECHNOLOGY ANALYST III(3) TECH 1(3) ANALYST III (3) TECH II(2) ANALYST III(2) ANALYST II(3) STAFF ANALYST Staffing Trends 2020-21 & 2021-22 Authorized FTE Positions Manager 1.0 Supervisors / Professionals 32.0 Technical Staff 11.0 45 45 46 46 45 45 Administrative/Clerical 1.0 Total 45.0 2017 2018 2019 2020 2021 2022 Section 6 - Page 33 Go to Table of Contents 2020-21 & 2021 -22 Budget Service Description The Information Technology Division provides support to the users of the Sanitation District's information technology related assets and services, as well as developing and implementing technology solutions that best meet the needs of the Sanitation 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. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Replace Obsolete Computers. ♦ Replaced 44% of obsolete inventory. ♦ Maintain Safety Scorecard above 90%. ♦ The Safety Scorecard is at 100%. ♦ Cyber Security Awareness/Protection - better the ♦ OCSD's phish-prone percentage has decreased industry average by 15%. and is 27% better than industry average. ♦ Manage Operating Budget between 96%-100% of ♦ Currently spent 95% of approved budget. approved budget. 2020-21 &2021-22 Performance Objectives ♦ Replace obsolete desktop, mobile, and server computers. ♦ Maintain a Safely Scorecard above 95%for overall score. ♦ Cyber Security Awareness/Protection —report on the overall effectiveness of the phishing campaign and better the industry average by 15% yearly. ♦ Replace 30% of obsolete network infrastructure for OCSD's office computing. ♦ Manage Operating Budget between 96% and 100% of approved budget. Performance Measures Summary 2018-19 2019-20 2020-21 2021-22 Justification Actual Projected Proposed Proposed ♦ Replace Obsolete Desktop, 11% 15% 25% of total 25% of total Rotate Desktops Every 5 Mobile, and Server computers computers Years, Mobiles 3 Years Computers ♦ Maintain a Safety Scorecard 100% 100% 95% 95% Sanitation District Goal above 95%for Overall Score ♦ Cyber Security N/A 27% 15% 15% GM Workplan Awareness/Protection ♦ Replace Obsolete Network N/A N/A 30% 30% Cyber security and system Infrastructure for OCSD's availability Office Computing ♦ Manage Operating Budget 85% 98% 96-100% 96-100% Sanitation District Goal Section 6- Page 34 Go to Table of Contents Information Technology Budget Overview The FY 2020-21 & 2021-22 budgets for the Information Technology Division reflect a decrease of 1% and an increase of 2% over the prior year, respectively. The decrease is primarily due to decrease in utility costs. 2019-20 Adjusted Budget - Total Operating Requirements $ 12,159,200 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, vacancy, etc.) 385,000 Change in OCERS retirement costs (3,560) Change in group insurance costs (110,400) Other benefit cost adjustments (57,800) Other Cost Adjustments: Increase in printing & publication 29,780 Decrease in temporary services (38,640) Decrease in other contractual services (20,000) Decrease in legal services (175,000) Increase in other professional services 300,000 Increase in service maintenance agreements 125,000 Decrease in telephone (500,000) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (270) 2020-21 Proposed Budget - Total Operating Requirements $ 12,093,310 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 281,300 Change in OCERS retirement costs 32,900 Change in group insurance costs 36,100 Other benefit cost adjustments 12,000 Other Cost Adjustments: Increase in printing & publication 10,000 Decrease in temporary services (31,360) Increase in small computers 25,000 Decrease in other professional services (300,000) Increase in service maintenance agreements 125,000 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services - 2021-22 Proposed Budget - Total Operating Requirements $ 12,284,250 Section 6- Page 35 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018.19 Revised 2019.20 2020.21 Budget 2021.22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 7,657,290 $ 7,006,960 $ 7,125,300 $ 7,220,200 3.04% $ 7,582,500 5.02% Supplies 858,021 1,254,750 1,238,950 1,304,410 3.96% 1,339,410 2.68% Professional&Contractual Services 383,554 625,000 360,010 691,360 10.62% 360,000 (47.93%) Research&Monitoring - - - - - Repairs&Maintenance 2,233,453 2,700,000 2,675,000 2,825,000 4.63% 2,950,000 4.42% Utilities 452,722 500,000 500,000 - (100.00%) - - Other 25,842 72,490 30,840 52,340 (27.80%) 52,340 0.00% Total $11,610,882 $12,159,200 $11,930,100 $12,093,310 (0.54%) $12,284,250 1.58% Expenditure Trends $12,159,200 $12,093,310 $12,284,250 $11,61 O,882 $10,030,624 $9,611,5 84 2017 2018 2019 2020 2021 2022 Section 6 - Page 36 Go to Table of Contents Environmental Services Administration 610 GENERAL MANAGER DIRECTOR OF ENVIRONMENTAL SERVICES EXECUTIVE ASSISTANT Staffing Trends 2020-21 & 2021-22 Authorized FTE Positions Executive Manager 1.00 Administrative / Clerical 1.00 2 2 2 2 2 2 Total 2.00 2017 2018 2019 2020 2021 2022 Section 6 - Page 37 Go to Table of Contents 2020-21 & 2021 -22 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. 2019-20 Performance Objectives 2019-20 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 were met. individual performance objectives. ♦ Ensure all environmental compliance reporting ♦ On track. requirements are met on or before required submission date 100% of the time. ♦ Audit environmental permits every 3 years. ♦ On track. 2020-21 &2021-22 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 with adopted audit schedule: 1-5 years. Performance Measures Summary 2018-19 2019-20 2020-21 2021-22 Justification Actual Projected Proposed Proposed ♦ Manage Budget 100% 96-100% 96-100% 96-100% In-house standard ♦ Department Performance > 90% > 90% >_90% >_ 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 Go to Table of Contents Environmental Services Administration Budget Overview The FY 2020-21 &2021-22 budgets for the Environmental Services Administration Division reflect an increase of 48% and 8% over the prior year, respectively. The increase is primarily due to salary and benefits adjustments and research and monitoring costs. 2019-20 Adjusted Budget - Total Operating Requirements $ 619,510 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, vacancy, etc.) 221,500 Change in OCERS retirement costs 26,160 Change in group insurance costs (1,300) Other benefit cost adjustments 2,800 Other Cost Adjustments: Increase in research &monitoring 50,000 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (2,950) 2020-21 Proposed Budget - Total Operating Requirements $ 915,720 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 21,100 Change in OCERS retirement costs 2,400 Change in group insurance costs 1,800 Other benefit cost adjustments 600 Other Cost Adjustments: Increase in research &monitoring 50,000 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services - 2021-22 Proposed Budget - Total Operating Requirements $ 991,620 Section 6- Page 39 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019-20 Operating Expenses 2018-19 Revised 2019.20 2020-21 Budget 2021-22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 404,536 $ 155,140 $ 384,500 $ 404,300 160.60% $ 430,200 6.41% Supplies 7,490 12,330 9,160 11,420 (7.38%) 11,420 0.00% Professional&Contractual Services 910 2,000 - - (100.00%) - - Research&Monitoring 401,321 450,000 475,000 500,000 11.11% 550,000 10.00% Repairs&Maintenance - - - - - - - Utilities - - Other 33 40 - - (100.00%) - - Total $ 814,290 $ 619,510 $ 868,660 $ 915,720 47.81% $ 991,620 8.29% Expenditure Trends $991,620 $877,581 $873,774 $915,720 $814,290 $619,510 2017 2018 2019 2020 2021 2022 Section 6 - Page 40 Go to Table of Contents Resource Protection 620 DIRECTOR OF ENVIRONMENTAL SERVICES ENGINEERING MANAGER ADMINISTRATIVE OFFICE ASSISTANT ASSISTANT SOURCE CONTROL ENGINEERING ENGINEERING SUPERVISOR SUPERVISOR SUPERVISOR PRINCIPAL LEAD SOURCE SENIOR SENIOR ENVIRONMENTAL CONTROL ENGINEER ENGINEER SPECIALIST INSPECTOR SOURCE SOURCE CONTROL CONTROL ENGINEER ENGINEER(4) INSPECTOR II(6) INSPECTOR 1(3) ENVIRONMENTAL ADMINISTRATIVE PRINCIPAL ASSOCIATE TECHNICIAN(3) ASSISTANT ENVIRONMENTAL ENGINEER(2) SPECIALIST(2) PROGRAM SENIOR ASSISTANT(2) ENVIRONMENTAL SPECIALIST PROGRAM ASSISTANT(2) Staffing Trends 2020-21 & 2021-22 Authorized FTE Positions Manager 1.0 Supervisors / Professionals 16.0 Technical Staff 13.0 47\37 37 37 37 37 Administrative / Clerical 7.0 Total 37.0 2017 2018 2017 2018 2021 2022 Section 6 - Page 41 Go to Table of Contents 2020-21 & 2021 -22 Budget Service Description The Resource Protection Division fulfills regulatory requirements with federal, state, and local pretreatment regulations, Ordinance terms and conditions, and supports water reclamation and reuse. This is done in the most cost effective, practical, and beneficial manner that meets regulatory requirements, protects the Sanitation District's assets, employees and ocean discharge. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Meet 100% of regulatory deadlines for required ♦ To date 100% compliance. pretreatment program reports. ♦ Implement Ordinance terms and conditions, ♦ To date 100% compliance. enforcing prohibitions (e.g. stormwater, slug discharges, etc.). ♦ 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 ♦ Staff completed all assigned inspections and of Class I industrial permit holders. monitoring of Class I industrial permit holders. ♦ Support of GWRS, special projects and routine ♦ Staff is supporting GWRS, special projects and monitoring requirements. routine monitoring requirements. 2020-21 & 2021-22 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. ♦ Implement Ordinance terms and conditions, enforcing prohibitions (e.g. stormwater, slug discharges, etc.). ♦ 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. ♦ Support of GWRS, special projects and routine monitoring requirements. Performance Measures Summary 2018-19 2019-20 2020-21 2021-22 Justification Actual Projected Proposed Proposed ♦ Manage Division Budget 101% 100% 100% 100% In-house Standard ♦ Meet 100%of Regulatory 100% 100% 100% 100% NPDES Permit Deadlines (Reports) Requirement ♦ Implement Ordinance 100% 100% N/A N/A Federal Pretreatment 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 ♦ Support GWRS, special projects, and routine 100% 100% 100% 100% Joint Agreement monitoring. Section 6 - Page 42 Go to Table of Contents Resource Protection Budget Overview The FY 2020-21 &2021-22 budget for the Resource Protection Division reflects an increase of 7% and an increase of 8% over the prior year, respectively, primarily due to an increase in environmental consulting services, operating materials and supplies, and legal services. 2019-20 Adjusted Budget - Total Operating Requirements $ 5,754,790 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, vacancy, etc.) 276,100 Change in OCERS retirement costs (1,970) Change in group insurance costs (80,400) Other benefit cost adjustments (122,100) Other Cost Adjustments: Increase in operating materials &supplies 175,000 Increase in temporary services 25,000 Increase in legal services 35,000 Increase in enviro scientific consulting services 60,000 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 8,830 2020-21 Proposed Budget - Total Operating Requirements $ 6,130,250 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 218,400 Change in OCERS retirement costs 26,300 Change in group insurance costs 29,100 Other benefit cost adjustments 9,900 Other Cost Adjustments: Decrease in operating materials &supplies (175,000) Decrease in temporary services (25,000) Increase in enviro scientific consulting services 400,000 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 3,620 2021-22 Proposed Budget - Total Operating Requirements $ 6,617,570 Section 6- Page 43 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018.19 Revised 2019.20 2020.21 Budget 2021.22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 5,707,762 $ 5,408,970 $ 5,159,900 $ 5,480,600 1.32% $ 5,764,300 5.18% Supplies 131,908 170,090 178,090 348,110 104.66% 176,730 (4923%) Professional&Contractual Services 187,163 166,660 113,010 286,600 71.97% 661,600 130.84% Research&Monitoring - - - - - - - Repairs&Maintenance 10,988 7,330 11,060 14,000 91.00% 14,000 0.00% Utilities - - - - - - - Other 385 1,740 1,000 940 (45.98%) 940 0.00% Total $ 6,038,206 $ 5,754,790 $ 5,463,060 $ 6,130,250 6.52% $ 6,617,570 7.95% Expenditure Trends $6,617,570 $6,038,206 $6,130,250 $5,754,790 $5,676,790 5-41904,370 2017 2018 2019 2020 2021 2022 Section 6- Page 44 Go to Table of Contents Laboratory, Monitoring & Compliance 630 DIRECTOR OF ENVIRONMENTAL SERVICES LABORATORY, MONITORING,AND COMPLIANCE MANAGER PRINCIPAL PRINCIPAL SENIOR F INISTRATIVE ENVIRONMENTAL SCIENTIST ENVIRONMENTALSSISTANT SPECIALIST SPECIALIST(.5) ENVIRONMENTAL ENVIRONMENTAL ENVIRONMENTAL ENVIRONMENTAL SUPERVISOR— SUPERVISOR— SUPERVISOR— SUPERVISOR— Analytical Chemistry Microbiology& Ocean Monitoring Environmental General Chemistry Compliance PRINCIPAL PRINCIPAL SENIOR PRINCIPAL ENVIRONMENTAL ENVIRONMENTAL SCIENTIST SCIENTIST ENVIRONMENTAL SPECIALIST(3) SPECIALIST(2) SPECIALIST(1.5) SENIOR SENIOR PRINCIPAL SENIOR SENIOR ENVIRONMENTAL ENVIRONMENTAL ENVIRONMENTAL ENVIRONMENTAL ENVIRONMENTAL SPECIALIST(6) SPECIALIST(3) SPECIALIST SPECIALIST(6) SPECIALIST(3) ENVIRONMENTAL ENVIRONMENTAL ENVIRONMENTAL BOAT SENIOR SPECIALIST 3 3 SPECIALIST CAPTAIN REGULATORY ( ) SPECIALIST( ) SPECIALIST(2) REGULATORY ENVIRONMENTAL SENIOR SCIENTIST TECHNICIAN(3) SPECIALIST(3) SCIENTIST Staffing Trends 2020-21 & 2021-22 Authorized FTE Positions Manager 1.0 Supervisors / Professionals 49.0 /s2 52 5z sa 5a Technical Staff 3.0 a2 Administrative/ Clerical 1.0 Total 54.0 2017 2018 2019 2020 2021 2022 Section 6- Page 45 Go to Table of Contents 2020-21 & 2021 -22 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 Sanitation District. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Continued efficiency improvement as measured by ♦ Met all internal benchmarks in all major areas of internal standards and industry benchmarking with laboratory established through regional regional laboratories. benchmarking. ♦ Successful performance on proficiency test ♦ Completed all proficiency tests on time and standards 100% correctly in no more than two passed 100% on the first attempt. attempts and achieve no less than 95% correct results on the first attempt. ♦ Manage division controllable costs to within 5% of ♦ Managed division controllable costs to 99.41% of projection. projected budget. ♦ Support of GWRS, special projects and routine ♦ All samples were collected, analyzed and monitoring requirements. reported on schedule, as defined by permit and interagency agreements. ♦ Meet all NPDES Permit compliance standards, ♦ Met all monitoring and reporting requirements as Strategic Initiatives and Strategic Process Studies to defined by permit and RWQCB. advance OCSD's Mission. 2020-21 &2021-22 Performance Objectives ♦ Continued efficiency improvements as measured by internal standards and benchmarking with other laboratories. ♦ Successful performance on proficiency test standards 100% correctly in no more than two attempts and achieve no less than 95% correct results on first attempt. ♦ Manage division controllable costs to within 2% of 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 2018-19 2019-20 2020-21 2021-22 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 99.85% 100% 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 Go to Table of Contents Laboratory, Monitoring & Compliance Budget Overview The FY 2020-21 & 2021-22 budgets for the Laboratory, Monitoring & Compliance Division reflect an increase of 8% and 3% over the prior year, respectively. The increase is primarily due to salary and benefits adjustments and an increase in research and monitoring costs, regulatory operating fees, repairs & maintenance costs, partially offset by a decrease in electricity costs. 2019-20 Adjusted Budget - Total Operating Requirements $ 11,393,290 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, vacancy, etc.) 829,000 Change in OCERS retirement costs 81,900 Change in group insurance costs (93,700) Other benefit cost adjustments (131,100) Other Cost Adjustments: Increase in temporary services 20,000 Increase in legal services 15,000 Decrease in audit&accounting services (20,000) Decrease in enviro scientific consult (20,000) Increase in other professional services 150,000 Increase in research &monitoring 155,100 Decrease in utilities costs (380,500) Increase in repairs & maintenances 49,107 Increase in regulatory operating fees 207,100 Increase in minor furniture &fixtures 14,000 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (4,470) 2020-21 Proposed Budget - Total Operating Requirements $ 12,264,727 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 293,400 Change in OCERS retirement costs 37,200 Change in group insurance costs 42,900 Other benefit cost adjustments 14,400 Other Cost Adjustments: Decrease in other professional services (148,082) Increase in research &monitoring 74,000 Increase in repairs & maintenances 10,163 Increase in regulatory operating fees 72,424 Increase in meeting &training 2,995 Increase in lab chemicals &supplies 10,649 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (1,268) 2021-22 Proposed Budget - Total Operating Requirements $ 12,673,508 Section 6- Page 47 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018.19 Revised 2019.20 2020.21 Budget 2021.22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 8,820,584 $ 8,006,300 $ 8,479,500 $ 8,692,400 8.57% $ 9,080,300 4.46% Supplies 715,095 719,210 713,020 727,605 1.17% 734,351 0.93% Professional&Contractual Services 317,838 485,000 377,500 635,035 30.94% 492,083 (22.51%) Research&Monitoring 534,480 649,600 674,600 804,700 23.88% 878,700 920% Repairs&Maintenance 292,578 307,640 325,000 356,747 15.96% 366,910 2.85% Utilities 364,201 380,500 455,610 - (100.00%) - - Other 819,104 845,040 971,110 1,048,240 24.05% 1,121,164 6.96% Total $11,863,880 $11,393,290 $11,996,340 $12,264,727 7.65% $12,673,508 3.33% Expenditure Trends $12,673,508 $12,2 64,72 7 $11,86 3,880 $11,393,290 $10,681,763 $9,965,352 2017 2018 2019 2020 2021 2022 Section 6- Page 48 Go to Table of Contents Engineering Administration 710 GENERAL MANAGER ASSISTANT GENERAL MANAGER EXECUTIVE ASSISTANT DIRECTOR OF ENGINEERING ADMINISTRATIVE ASSISTANT PRINCIPAL STAFF SENIOR STAFF ANALYST ANALYST Staffing Trends 2020-21 & 2021-22 Authorized FTE Positions Executive Manager 1.0 Supervisors/ Professionals 2.0 /s 5 Administrative / Clerical 2.0 2 2 2 2 Total 5.0 2017 2018 2019 2020 2021 2022 Section 6 - Page 49 Go to Table of Contents 2020-21 & 2021 -22 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. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Expend 90 to 100% of project annual CIP cash ♦ Expected to expend 76%. flow. ♦ Ensure the department's expenditures are ♦ Expected to be 90-100%. managed to 90- 100% of approved budget. ♦ Ensure that reporting divisions achieve 90% of ♦ Expected to be 95%. individual performance objectives. ♦ Prepare and maintain 20-year District-wide ♦ Yes. capital plan. 2020-21 &2021-22 Performance Objectives ♦ Expend 90-100% of project annual CIP cash flow. ♦ Ensure the department's expenditures are managed to within 90-100% 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 2018-19 2019-20 2020-21 2021-22 Justification Actual Projected Proposed Proposed ♦ Expend 90-100% of Project 89.8% 76% 90-100% 90-100% In-house standard Annual CIP Cash Flow ♦ Ensure Department's 96.5% 90-100% 96-100% 96-100% In-house standard Expenditures 90-100% ♦ Ensure Reporting Divisions 951 95% 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 Go to Table of Contents Engineering Administration Budget Overview The FY 2020-21 & 2021-22 budgets for the Engineering Administration Division reflect an increase of 70% and an increase of 7% over the prior year, respectively. This is primarily due to increases in salary and benefits adjustments. 2019-20 Adjusted Budget - Total Operating Requirements $ 753,920 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, vacancy, etc.) 415,400 Change in OCERS retirement costs 60,410 Change in group insurance costs 39,200 Other benefit cost adjustments 10,800 Other Cost Adjustments: No other significant cost changes Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (1,650) 2020-21 Proposed Budget - Total Operating Requirements $ 1,278,080 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 71,600 Change in OCERS retirement costs 10,800 Change in group insurance costs 5,400 Other benefit cost adjustments 1,600 Other Cost Adjustments: No other significant cost changes Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 50 2021-22 Proposed Budget - Total Operating Requirements $ 1,367,530 Section 6- Page 51 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018-19 Revised 2019-20 2020-21 Budget 2021-22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 720,423 $ 746,490 $ 1,072,200 $ 1,272,300 70.44% $ 1,361,700 7.03% Supplies 4,655 7,390 3,910 5,720 (22.60%) 5,770 0.87% Professional&Contractual Services - - 1,050 - - - Research&Monitoring - - Repairs&Maintenance - Utilities - - - - - - Other - 40 40 60 50.00% 60 0.00% Total $ 725,078 $ 753,920 $ 1,077,200 $ 1,278,080 69.52% $ 1,367,530 7.00% Expenditure Trends $1,367,530 $1,2 78,080 $753,920 $725,078 $479,406 $451,013 2017 2018 2019 2020 2021 2022 Section 6 - Page 52 Go to Table of Contents Planning 740 ASSISTANT GENERAL MANAGER DIRECTOR OF ENGINEERING ENGINEERING MANAGER ENGINEERING ENGINEERING SUPERVISOR SUPERVISOR SENIOR PRINCIPAL ENGINEER(2) STAFF ANALYST ENGINEER(6) ENGINEER ASSOCIATE ENGINEERING ENGINEER ASSOCIATE Staffing Trends 2020-21 & 2021-22 Authorized FTE Positions Manager 1.0 Supervisors/ Professionals 13.0 Administrative / Clerical 1.0 15 15 14 14 15 15 Total 15.0 2017 2018 2019 2020 2021 2022 Section 6 - Page 53 Go to Table of Contents 2020-21 & 2021 -22 Budget Service Description The mission of the Planning Division is to provide a comprehensive Capital Improvement Program for the Sanitation District considering projected capacity requirements, condition of current assets, projected regulatory and level of service changes, and business opportunities. The Planning Division takes a lead role in the Asset Management Program. The Division is also responsible for water resources management, California Environmental Quality Act (CEQA) preparation and review, annexations, connection permitting, easements, and interagency agreements. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Ensure the division's expenditures are managed to ♦ Expected to be less than 90%. within 90-100% of proposed budget. ♦ Facilitate the District-wide project Clearinghouse. ♦ Yes, meetings occur bi-weekly. ♦ Maintain a 20-year District-wide Capital ♦ Completed the 2017 Facilities Master Plan. Since Improvement Plan (CIP). then, through Asset Management, the 20-year CIP has been updated on an annual basis. ♦ Response to 100% of environmental ♦ Yes. correspondence within 45 days. ♦ Complete the Facilities Master Plan Environmental ♦ In progress, expected to be completed during Impact Report FY21-22. ♦ Complete the Biosolids Master Plan Environmental ♦ Report was completed May 2018. Impact Report. 2020-21 &2021-22 Performance Objectives ♦ Ensure the division's expenditures are managed to 90-100% 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. ♦ 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. ♦ Prepare and publish an Asset Management Plan annually. Performance Measures Summary 2018-19 2019-20 2020-21 2021-22 Justification Actual Projected Proposed Proposed ♦ Manage Budget 109% <90% 90-100% 90-100% In-house standard ♦ Facilitate Project Clearinghouse Yes Yes Yes Yes In-house standard ♦ Maintain a 20-Year CIP Yes Yes Yes Yes In-house standard ♦ CEQA Correspondence 100% 100% 100% 100% CEQA requirement ♦ Facilities Master Plan EIR In Progress In Progress In Progress Yes CEQA requirement ♦ Asset Management Plan Yes Yes Yes Yes CEQA requirement Section 6 - Page 54 Go to Table of Contents Planning Budget Overview The FY 2020-21 budget for the Planning Division reflect a decrease of 24%. This is primarily due to decrease in personnel costs, repairs & maintenance, and electricity costs for rental properties that being re-allocated to Administrative Services Administration/Consolidated Services department. The FY 2021-22 budget reflects an increase of 3% due to increase in personnel costs. 2019-20 Adjusted Budget - Total Operating Requirements $ 5,414,675 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, vacancy, etc.) (467,100) Change in OCERS retirement costs (61,550) Change in group insurance costs (69,100) Other benefit cost adjustments (15,500) Other Cost Adjustments: Decrease in membership (77,460) Decrease in printing publication (15,900) Decrease in property tax fees (82,500) Decrease in janitorial services (58,000) Decrease in groundskeeping services (11,000) Decrease in legal services (100,000) Decrease in other professional services (112,000) Decrease in repairs & maintenance services and materials (104,900) Decrease in utilities costs (133,500) Increase in engineering 25,000 Decrease in misc. operating supplies (7,950) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (2,655) 2020-21 Proposed Budget - Total Operating Requirements $ 4,120,560 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 113,100 Change in OCERS retirement costs 13,000 Change in group insurance costs 11,600 Other benefit cost adjustments 3,800 Other Cost Adjustments: Increase in membership 4,180 Decrease in meetings &training (2,965) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 250 2021-22 Proposed Budget - Total Operating Requirements $ 4,263,525 Section 6- Page 55 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018.19 Revised 2019.20 2020.21 Budget 2021.22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 2,502,642 $ 3,176,850 $ 2,448,100 $ 2,563,600 (19.30%) $ 2,705,100 5.52% Supplies 207,914 330,350 239,052 155,495 (52.93%) 156,960 0.94% Professional&Contractual Services 428,439 1,664,615 924,800 1,400,615 (15.86%) 1,400,615 0.00% Research&Monitoring - - - - - - Repairs&Maintenance 331,621 105,000 95,320 100 (99.90%) 100 0.00% Utilities 115,570 133,500 112,780 - (100.00%) - Other 1,293 4,360 760 750 (82.80%) 750 0.000o Total $ 3,587,479 1 $ 5,414,675 1 $ 3,820,812 1 $ 4,120,560 (23.90%) $ 4,263,525 3.47% Expenditure Trends $5,414,675 $4,120,560 $4,263,525 $3,384,796 $3,587,479 $2,969,918 2017 2018 2019 2020 2021 2022 Section 6 - Page 56 Go to Table of Contents Project Management 750 ASSISTANT GENERAL MANAGER DIRECTOR OF ENGINEERING ENGINEERING MANAGER ADMINISTRATIVE ASSISTANT ENGINEERING ENGINEERING SUPERVISOR SUPERVISOR SENIOR CIP PROJECT ENGINEER MANAGER ENGINEER(3) SENIOR ENGINEER(10) ASSOCIATE ENGINEER ENGINEERING ASSOCIATE Staffing Trends 2020-21 &2021-22 Authorized FTE Positions Manager 1.00 Supervisors/ Professionals 18.00 21 21 Administrative / Clerical 2.00 17 17 16 1s� Total 21.00 2017 2018 2019 2020 2021 2022 Section 6 - Page 57 Go to Table of Contents 2020-21 & 2021 -22 Budget Service Description The mission of the Project Management Office (PMO) Division is to manage the design and construction of new collection, treatment, and disposal facilities plus the rehabilitation of older facilities to ensure the safe, cost effective transport and treatment of influent/effluent. This division is responsible for the delivery of projects from the preliminary design stages through closeout of construction. The division provides standards, processes, and methodologies to improve project quality, cost, and timeliness. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Ensure that the division's expenditures are managed ♦ Projected to be 55-65%. to 90-100% of the proposed budget. ♦ Expend 85-105% of budgeted CIP expenditures. ♦ Projected at 76%. ♦ Manage non-construction costs for active projects to ♦ Projected to be 33.7%. < 37.5% of construction costs. ♦ Maintain a Combined Advertising Variance of< 30 ♦ Projected to be 23 days late. days late. ♦ Maintain a Combined Completion Variance of< 120 ♦ Projected to be 28 days early. days late. 2020-21 &2021-22 Performance Objectives ♦ Ensure the division's expenditures are managed to 90-100% 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 2018-19 2019-20 2020-21 2021-22 Justification Actual Projected Proposed Proposed ♦ Manage Division Budget 53.13% 90-100% 90-100% 90-100% In-house standard ♦ Expend 85-105% of Projected 89.8% 76% 85-105% 85-105% In-house standard net CIP outlay ♦ Manage Non-construction 34.7% 33.7% < 37.5% < 37.5% In-house standard Costs for Active Projects to <37.5% of Construction Costs ♦ Combined Advertising 15 days 23 days < 30 late < 30 late In-house standard Variance of< 30 days late ♦ Combined Completion -4 days 78 days < 120 late < 120 late In-house standard Variance of< 120 days late Section 6 - Page 58 Go to Table of Contents Project Management Budget Overview The FY 2020-21 &2021-22 budgets for the Project Management Office Division reflect a decrease of 16% and an increase of 4% over the prior year, respectively. The decrease is primarily due to salary and benefits adjustments and engineering services. FY 2021-22 increase is due to decrease in personnel costs. 2019-20 Adjusted Budget - Total Operating Requirements $ 5,019,310 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, vacancy, etc.) (368,800) Change in OCERS retirement costs (95,280) Change in group insurance costs (54,500) Other benefit cost adjustments (400) Other Cost Adjustments: Decrease in training & meetings expense (10,360) Decrease in engineering (293,000) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 675 2020-21 Proposed Budget - Total Operating Requirements $ 4,197,645 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 135,800 Change in OCERS retirement costs 16,100 Change in group insurance costs 17,700 Other benefit cost adjustments 5,900 Other Cost Adjustments: No other significant cost changes Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 550 2021-22 Proposed Budget - Total Operating Requirements $ 4,373,695 Section 6- Page 59 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018.19 Revised 2019.20 2020.21 Budget 2021.22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 3,259,170 $ 4,648,280 $ 4,186,100 $ 4,129,300 (11.16%) $ 4,304,800 4.25% Supplies 11,952 27,660 18,275 17,945 (35.12%) 18,495 3.06% Professional&Contractual Services 1,293 343,000 200,000 50,000 (85.42%) 50,000 0.00% Research&Monitoring - - - - - - - Repairs&Maintenance 150 - - Utilities - - - - - - - Other 233 370 320 400 8.11% 400 0.00% Total 1 $ 3,272,798 $ 5,019,310 $ 4,404,695 $ 4,197,645 (16.37%) $ 4,373,695 4.19% Expenditure Trends $5,019,310 $4,197,645 $4,373,695 $3,272,798 $2,754,464 $2,394,896 2017 2018 2019 2020 2021 2022 Section 6- Page 60 Go to Table of Contents Design 760 ASSISTANT GENERAL MANAGER DIRECTOR OF ENGINEERING ENGINEERING MANAGER ENGINEER ADMINISTRATIVE ASSISTANT ENGINEERING ENGINEERING ENGINEERING ENGINEERING SUPERVISOR— SUPERVISOR— SUPERVISOR— SUPERVISOR— Design/Mech Civil Design/Mech Civil E,I&C Design PCI Collections Plants SENIOR SENIOR SENIOR PRINCIPAL IT ENGINEER ENGINEER(4) ENGINEER(5) ANALYST(3) ENGINEER(2) ENGINEER(2) ENGINEER(2) SENIOR IT ANALYST(3) ASSOCIATE ASSOCIATE ITANALYSTIII ENGINEER ENGINEER IT ANALYST II SENIOR ENGINEER(2) ENGINEER Staffing Trends 2020-21 &2021-22 Authorized FTE Positions Manager 1.0 53 53 54 54 Supervisors/ Professionals 34.0 Administrative / Clerical 1.0 36 36 Total 36.0 2017 2018 2019 2020 2021 2022 Section 6 - Page 61 Go to Table of Contents 2020-21 & 2021 -22 Budget Service Description The mission of the Design Division is ensure that all projects are designed to be reliable, maintainable, and operable at optimum lifecycle costs in accordance with Engineering Standards and codes,with minimal impact to operations, maintenance, local agencies, and the public and properly commissioned in accordance with the contract documents. This division provides construction support to ensure projects conform with the contract documents.The division also provides control 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. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Ensure the division's expenditures are managed to 90-100% ♦ Expected to be 90-100%. of proposed budget. ♦ Reduce program change order performance towards goal of ♦ 5.3%as of December 31 data. <5.5%. ♦ Assure all mission critical real-time SCADA systems are ♦ Expected to be 100%. online and available>99.9%. ♦ SCADA system programming complete and bench tested ♦ Expected to be 100%. prior to functional acceptance testing. ♦ New electrical equipment is properly modeled and ♦ Expected to be 100%. equipment is property configured and tested prior to energization. ♦ Division Injury Rate<2.9 to support OCSD goal of<5.7. ♦ Projected to be 0.0. ♦ Routinely update standards and design guidelines. ♦ > 12 annually. 2018-19&2019-20 Performance Objectives ♦ Ensure division's expenditures are managed to 90-100%of proposed budget. ♦ Manage construction change orders to a 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 completed and bench tested prior to functional acceptance testing. ♦ New electrical equipment is properly modeled in the power systems software and equipment is properly 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 2018-19 2019-20 2020-21 2021-22 Justification Actual Projected Proposed Proposed ♦ Manage Division Budget 65% 90-100% 90-100% 90-100% In-house standard ♦ Change Order Rate 5.3% 5.3% <5.5% <5.5% In-house standard ♦ SCADA Systems Availability 100% 100% 99.9% 99.9% In-house standard (less planned downtime) ♦ SCADA System Programming 100% 100% >98% >98% In-house standard Complete ♦ New Electrical Equipment 100% 100% >98% >98% In-house standard Configured and Tested. ♦ Injury Incident Rate<2.9 3.1 0.0 <2.9 <2.9 In-house standard ♦ Update Standards 30 12 12 annually 12 annually In-house standard Section 6- Page 62 Go to Table of Contents Design Budget Overview The FY 2020-21 &2021-22 budgets for the Design Division reflect a decrease of 2% and an increase of 3% over the prior year, respectively. The decreases is primarily due to salary and benefits adjustments and partially offset by increase in operating supplies and software program consulting service. The FY 2021/22 budget reflects an increase of 3% over the prior year, primarily due an increase in personnel costs. 2019-20 Adjusted Budget - Total Operating Requirements $ 7,583,810 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, vacancy, etc.) 18,500 Change in OCERS retirement costs (23,760) Change in group insurance costs (285,200) Other benefit cost adjustments (73,300) Other Cost Adjustments: Increase in minor furniture&fixture 60,000 Increase in meeting &training 44,480 Decrease in legal expenses (10,000) Increase in software program consult 100,000 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 1,530 2020-21 Proposed Budget - Total Operating Requirements $ 7,416,060 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 216,800 Change in OCERS retirement costs 26,600 Change in group insurance costs 29,700 Other benefit cost adjustments 9,900 Other Cost Adjustments: Decrease in minor furniture&fixture (60,000) Decrease in meeting &training (3,300) Increase in software program consult 5,000 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (3,500) 2021-22 Proposed Budget - Total Operating Requirements $ 7,637,260 Section 6- Page 63 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018.19 Revised 2019.20 2020.21 Budget 2021.22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 9,285,485 $ 7,509,460 $ 7,024,700 $ 7,145,700 (4.84%) $ 7,428,700 3.96% Supplies 27,602 60,270 103,460 162,960 170.38% 96,160 (40.99%) Professional&Contractual Services 41,622 10,000 30,733 100,000 900.00% 105,000 5.00% Research&Monitoring - - - - - - - Repairs&Maintenance 1,497 500 2,000 3,500 600.00% 3,500 0.00% Utilities - - - - - - - Other 917 3,580 3,788 3,900 8.94% 3,900 0.00% Total $ 9,357,123 $ 7,583,810 $ 7,164,681 $ 7,416,060 (2.21%) $ 7,637,260 2.98% Expenditure Trends $8,474,088 $9,357,123 $7,623,697 $7,583,810 $7,416,060 $7,637,260 2017 2018 2019 2020 2021 2022 Section 6 - Page 64 Go to Table of Contents Construction Management 770 ASSISTANT GENERAL MANAGER DIRECTOR OF ENGINEERING ENGINEERING MANAGER ENGINEERING ENGINEERING CONSTRUCTION CONSTRUCTION CONSTRUCTION SUPERVISOR— SUPERVISOR— INSPECTION INSPECTION INSPECTION Plant 1 Construction Plant 2 Construction SUPERVISOR— SUPERVISOR— SUPERVISOR— Management Management Plant 1 Construction QA Plant 2 Construction QA E,I&C QA SENIOR SENIOR SENIOR SENIOR SENIOR ENGINEER ENGINEER CONSTRUCTION CONSTRUCTION CONSTRUCTION INSPECTOR(2) INSPECTOR(2) INSPECTOR(3) ENGINEER ENGINEER(4) CONSTRUCTION CONSTRUCTION CONSTRUCTION INSPECTOR(4) INSPECTOR(2) INSPECTOR(3) ASSOCIATE SENIOR ENGINEER(2) PLANNER/ SCHEDULER SENIOR COST PLANNER/ ESTIMATOR SCHEDULER ENGINEERING ENGINEERING ASSISTANT II(2) ASSISTANT II(2) ADMINISTRATIVE ADMINISTRATIVE ASSISTANT ASSISTANT Staffing Trends 2020-21 & 2021-22 Authorized FTE Positions Manager 1.0 Supervisors/ Professionals 17.0 40 40 Administrative/ Clerical 22.0 29 2s 30 30� Total 40.0 2017 2018 2019 2020 2021 2022 Section 6- Page 65 Go to Table of Contents 2020-21 & 2021 -22 Budget Service Description The mission of the Construction Management Division is to ensure timely and quality construction and commissioning execution. This division's role is to provide construction management and inspection services for OCSD projects to ensure they are safely constructed and inspected in accordance with contract requirements and regulatory and legal codes while minimizing impacts to operations, maintenance, local agencies and the public. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Ensure division's expenditures are managed to ♦ Expected to be <90% 90-100% of proposed budget ♦ Manage construction change orders to goal of ♦ 5.3% as of December 31 data 5.5% ♦ No spills ♦ No sewer spills on CIP collections projects ♦ Division injury rate < 2.9 to support OCSD goal of ♦ Projected to be 0.0 < 5.7 ♦ Update Construction Management guide manual ♦ In progress. Framework has been developed ♦ Implement Project Management Information ♦ New system is in implementation Systems to replace existing system 2020-21 &2021-22 Performance Objectives ♦ Ensure division's expenditures are managed to within 90-100% of proposed budget. ♦ Manage construction change order to CIP Change Order Management Plan goal of 5.5%. ♦ No sewer spills on CIP collections projects. ♦ Division Injury Incident Rate < 2.9 to support OCSD goal of< 5.7. ♦ Update Construction Management guide manual based on current practices and the latest industry standards. ♦ Implement the Project Management Information Systems (PMIS)to replace existing system. Performance Measures Summary 2018-19 2019-20 2020-21 2021-22 Justification Actual Projected Proposed Proposed ♦ Manage Division Budget 104% < 90% 90-100% 90-100% In-house standard ♦ Change Order Rate 5.3% 5.3% < 5.5% < 5.5% In-house standard ♦ No Sewer Spills 0.0 0.0 0.0 0.0 In-house standard ♦ Injury Incident Rate < 2.9 0.0 0.0 < 2.9 < 2•9 In-house standard ♦ Update Construction N/A In Progress In Progress In Progress In-house standard Management Manual ♦ Implement PMIS In Progress In Progress Yes Yes In-house standard Section 6- Page 66 Go to Table of Contents Construction Management Budget Overview The FY 2020-21 budget for the Construction Management Division reflects an increase of 17%. This is primarily due to increases in salary and benefits adjustments. The FY 2021-22 budget reflects an increase of 5% over the prior year, primarily due an increase in salary and benefits adjustments. 2019-20 Adjusted Budget - Total Operating Requirements $ 5,670,320 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, vacancy, etc.) 1,111,100 Change in OCERS retirement costs 35,770 Change in group insurance costs 66,200 Other benefit cost adjustments (8,900) Other Cost Adjustments: Decrease in meeting &training (43,160) Decrease in software program consult (196,000) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 2,420 2020-21 Proposed Budget - Total Operating Requirements $ 6,637,750 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 243,200 Change in OCERS retirement costs 26,400 Change in group insurance costs 32,100 Other benefit cost adjustments 10,700 Other Cost Adjustments: Decrease in minor furniture&fixture (13,000) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 2,150 2021-22 Proposed Budget - Total Operating Requirements $ 6,939,300 Section 6- Page 67 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018-19 Revised 2019-20 2020-21 Budget 2021.22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 5,548,286 $ 5,323,230 $ 6,017,400 $ 6,527,400 22.62% $ 6,839,800 4.79% Supplies 69,346 122,920 58,813 69,230 (43.68%) 58,380 (15.67%) Professional&Contractual Services 145,699 221,000 157,000 40,000 (81.90%) 40,000 0.00% Research&Monitoring - - - - Repairs&Maintenance 3,771 2,500 310 300 (88.00%) 300 0.00% Utilities - - - - - - Other 577 670 620 820 22.39% 820 0,00% Total $ 5,767,679 $ 5,670,320 $ 6,234,143 $ 6,637,750 17.06% $ 6,939,300 Expenditure Trends $6,637,750 $6,939,300 $5,767,679 $5,6701,320 $5,038,673 $4,476,768 2017 2018 2019 2020 2021 2022 Section 6 - Page 68 Go to Table of Contents Operations and Maintenance Administration 810 GENERAL MANAGER D I RECTOR OF OPERATIONS & MAINTENANCE SENIOR STAFF STAFF ANALYST ANALYST Staffing Trends 2020-21 & 2021-22 Authorized FTE Positions Executive Manager 1.00 Supervisors / Professionals 2.00 3 3 3 3 3 3 Total 3.00 2017 2018 2019 2020 2021 2022 Section 6 - Page 69 Go to Table of Contents 2020-21 & 2021 -22 Budget Service Description The mission of the Operations and Maintenance(O&M)Administration Division is to 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 Sanitation 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. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Achieve 100% compliance with water, solids, air, ♦ Achieved 100% compliance with water, solids, air, and energy permits and regulatory requirements. and energy permits and regulatory requirements. ♦ Achieve 100% compliance level of 90 to 100% of the ♦ Achieved 100% compliance level of 90 to 100% of Levels of Service targets. the Level of Service targets. ♦ Manage operating expenditures to within 96 to ♦ Managed operating expenditures 97% of approved 100% of approved budget for the Department. budget for the Department. 2020-2021 &2021-22 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. ♦ Manage operating expenditures to within 96 to 100% of approved budget for the Department. Performance Measures Summary 2018-19 2019-20 2020-21 2021-22 Justification Actual Projected Proposed Proposed ♦ Compliance with Permits & 100% 100% 100% 100% In-house standard Regulatory Requirements ♦ Levels of Service 100% 90% 100% 100% In-house standard Compliance ♦ Manage Budget 96.7% 97% 96-100% 96-100% In-house standard Section 6 - Page 70 Go to Table of Contents Operations and Maintenance Administration Budget Overview The FY 2020-21 budget for the Operations and Maintenance Administration Division reflect a decrease of as%. This is primarily due to a decrease in temporary services. The FY 2021-22 budget reflects an increase of 5% over the prior year, is primarily due to adjustments in salaries and benefits osts. no significant changes affecting the budget. 2019-20 Adjusted Budget - Total Operating Requirements $ 804,870 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, vacancy, etc.) 179,100 Change in OCERS retirement costs 22,530 Change in group insurance costs (6,600) Other benefit cost adjustments (39,100) Other Cost Adjustments: Decrease in temporary services (250,000) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (1,180) 2020-21 Proposed Budget - Total Operating Requirements $ 709,620 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 28,600 Change in OCERS retirement costs 2,800 Change in group insurance costs 2,500 Other benefit cost adjustments 800 Other Cost Adjustments: No other significant cost changes Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services - 2021-22 Proposed Budget - Total Operating Requirements $ 744,320 Section 6- Page 71 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018.19 Revised 2019-20 2020-21 Budget 2021-22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 450,793 $ 450,570 $ 322,700 $ 606,500 34.61% $ 641,200 5.72% Supplies 1,496 2,810 1,000 1,980 (29.54%) 1,980 0.00% Professional&Contractual Services 24,222 350,530 500 100,600 (71.30%) 100,600 0.00% Research&Monitoring - - - - - - Repairs&Maintenance Utilities - - - - - - Other 165 960 1,000 540 (43.75%) 540 0.00 0 Total $ 476,676 $ 804,870 1 $ 325,200 $ 709,620 1 (11.83%)l $ 744,320 4.89% Expenditure Trends $804,870 $709,620 $744,320 $488,755 $500,844 $476,676 2017 2018 2019 2020 2021 2022 Section 6 - Page 72 Go to Table of Contents Collections Facilities Operations and Maintenance 820 DIRECTOR OF OPERATIONS& MAINTENANCE MAINTENANCE MANAGER ADMINISTRATIVE OFFICE ASSISTANT ASSISTANT MAINTENANCE MAINTENANCE SUPERVISOR SUPERVISOR (COLLECTIONS O&M) (COLLECTIONS O&M) SENIOR LEAD LEAD ENGINEER MECHANIC(2) MECHANIC(3) PRINCIPAL SENIOR SENIOR ENVIRONMENTAL MECHANIC(3) MECHANIC(4) SPECIALIST SENIOR ENVIRONMENTAL MECHANIC(3) MECHANIC(5) SPECIALIST ENVIRONMENTAL TECHNICIAN 2020-21 & 2021-22 Authorized FTE Positions Staffing Trends Manager 1.0 Supervisors / Professionals 5.0 Operations & Maintenance 20.0 Technical Staff 1.0 26 2s 2s 2s 2s 2s Administrative / Clerical 2.0 Total 26.0 2017 2018 2019 2020 2021 2022 Section 6 - Page 73 Go to Table of Contents 2020-21 & 2021 -22 Budget Service Description Maintenance and cleaning of gravity sewer lines, pump stations, and odor and corrosion control of the regional collection system. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Achieve 100% compliance with water, solids, air, ♦ Achieved 100% compliance with water, solids, air, and energy permits and regulatory requirements. and energy permits and regulatory requirements. ♦ Achieve 100% compliance level of 90 to 100% of ♦ Achieved 100% compliance level of 90 to 100% of the Levels of Service targets. the Levels of Service targets. ♦ Manage operating expenditures to within 96 to ♦ Managed operating expenditures to 83% of 100% of approved budget. approved budget. ♦ Achieve greater than 90% compliance with the ♦ Achieved 83.3% compliance with the safety Safety Scorecard. scorecard. 2020-21 &2021-22 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. ♦ Manage operating expenditures to within 96-100% of approved budget. ♦ Achieve greater than 95% compliance with the Safety Scorecard. Performance Measures Summary 2018-19 2019-20 2020-21 2021-22 Justification Actual Projected Proposed Proposed ♦ Compliance with Permits < 100% 100% 100% 100% In house standard & Regulatory Requirements ♦ Levels of Service 80% 100% 100% 100% In house standard Compliance ♦ Manage Budget 91% 83% 96-100% 96-100% In house standard ♦ Compliance with the 93.7% 83.3% 95% 95% In house standard Safety Scorecard Section 6- Page 74 Go to Table of Contents Collections Facilities Operations and Maintenance Budget Overview The FY 2020-21 budget for the Collections Facilities Operations and Maintenance Division reflect an increase of 17%. This is primarily due to increases in salary and benefits, and repairs and maintenance costs. The FY 2021- 22 budget reflects an increase of 4% over the prior year. This is primarily due to the increase in personnel costs and repairs and maintenance charges. 2019-20 Adjusted Budget - Total Operating Requirements $ 13,369,492 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, vacancy, etc.) 956,800 Change in OCERS retirement costs 145,840 Change in group insurance costs (5,400) Other benefit cost adjustments 1,900 Other Cost Adjustments: Increase in meeting & training 17,600 Decrease in odor control costs (694,012) Increase in odor&corrosion control 150,000 Increase in tools 142,670 Increase in outside lab services 20,000 Decrease in other contractual services (1,737,864) Decrease in engineering (78,000) Increase in repairs and maintenance 3,280,320 Increase in utility costs 12,782 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 3,545 2020-21 Proposed Budget - Total Operating Requirements $ 15,585,673 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 142,200 Change in OCERS retirement costs 18,700 Change in group insurance costs 22,900 Other benefit cost adjustments 7,800 Other Cost Adjustments: Decrease in meeting & training (3,700) Increase in odor control costs 342,447 Decrease in odor&corrosion control (50,000) Decrease in tools (141,225) Increase in repairs and maintenance 218,656 Increase in utility costs 11,201 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (1,018) 2021-22 Proposed Budget - Total Operating Requirements $ 16,153,634 Section 6 - Page 75 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018-19 Revised 2019-20 2020-21 Budget 2021-22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 3,526,110 $ 2,931,660 $ 3,849,500 $ 4,030,800 37.49% $ 4,222,400 4.75% Supplies 5,932,358 7,144,188 5,752,133 6,783,407 (5.05%) 6,929,055 2.15% Professional&Contractual Services 753,639 1,881,384 1,780,433 63,500 (96.62%) 63,000 (0.79%) Research&Monitoring - - - - - - - Repairs&Maintenance 1,260,178 775,000 870,000 4,055,320 42327% 4,273,976 5.39% Utilities 634,029 576,740 578,530 589,522 2•22% 600,723 1.90% Other 46,598 60,520 60,520 63,124 4.30% 64,480 2.15% Total $12,152,912 $13,369,492 $12,891,116 $15,585,673 16.58% $16,153,634 3.64% Expenditure Trends $13,104,256 $15,585,673 $16,153,634 / $12,585,474 $13,369,492 $12,152,912 2017 2018 2019 2020 2021 2022 Section 6- Page 76 Go to Table of Contents Fleet Services 822 DIRECTOR OF OPERATIONS& MAINTENANCE MAINTENANCE MANAGER MAINTENANCE SUPERVISOR (FLEET SERVICES) LEAD AUTOMOTIVE/ EQUIPMENT MECHANIC HEAVY EQUIP. CRANE TECHNICIAN(4) OPERATOR(2) Staffing Trends 2020-21 & 2021-22 Authorized FTE Positions Supervisors/ Professionals 1.0 Operations & Maintenance 7.0 $ $ $ $ $ $ Total 8.0 2017 2018 2019 2020 2021 2022 Section 6 - Page 77 Go to Table of Contents 2020-21 & 2021 -22 Budget Service Description Maintenance of OCSD's fleet of vehicles and mobile equipment. Logistics and crane support for O&M. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Achieve 100% compliance with water, solids, air, ♦ Achieved 100% compliance with state emissions and energy permits and regulatory requirements. regulations on all mobile equipment and vehicles. ♦ Achieve greater than 90% compliance with Safety ♦ Achieved 100% compliance with the Safety Scorecard. Scorecard. ♦ Manage operating expenditures to within 96 to 100% ♦ Managed operating expenditures at 100%of of the approved budget. approved budget. ♦ Fleet Services in-house survey published with ♦ Fleet survey not administered. results achieving 90% or above satisfaction ratings. ♦ Decrease average age of fleet over a 5-year period ♦ Achieved FY goal as part of multi-year approach. until all fleet vehicles meet the industry standard. 2020-21 &2021-22 Performance Objectives ♦ Achieve 100% compliance with water, solids, air, and energy permits and regulatory requirements. ♦ Achieve greater than 95% compliance with the safety scorecard. ♦ Decrease average age of fleet over a 5-year period until all fleet vehicles meet the industry standard. ♦ Achieve at least 90% PM compliance for vehicles and equipment. ♦ Achieve at least 95%vehicle availability. Performance Measures Summary 2018-19 2019-20 2020-21 2021-22 Justification Actual Projected Proposed Proposed ♦ Regulatory 100% 100% 100% 100% DOT& State Regulations Compliance ♦ Compliance with 100% 100% > 95% > 95% In-house standard Safety Scorecard ♦ Manage Operating 96.6% 100% N/A N/A In-house standard Expenditures ♦ Fleet Survey N/A N/A N/A N/A In-house standard ♦ Decrease Fleet 20% 20% 20% 20% Industry Best Practice Average Age ♦ PM Compliance N/A N/A > 90% > 90% In-house standard ♦ Manage Budget N/A N/A > 95% > 95% In-house standard Section 6- Page 78 Go to Table of Contents Fleet Services Budget Overview The FY 2020-21 budget for the Fleet Services Division reflects an increase of 8%. This is primarily due to increases in salaries and benefits adjustments and repairs and maintenance expense. The FY 2021-22 budget reflects a decrease of 2% over the prior year, primarily due to decrease in tools. 2019-20 Adjusted Budget - Total Operating Requirements $ 1,880,480 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, vacancy, etc.) 138,200 Change in OCERS retirement costs 5,570 Change in group insurance costs (300) Other benefit cost adjustments (200) Other Cost Adjustments: Decrease in meeting &training (6,710) Decrease in compressed natural gas (59,284) Decrease in other professional services (43,112) Increase in repairs and maintenance 82,097 Increase in utility costs 22,500 Increase in tools 28,000 Decrease in memberships (3,320) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (3,850) 2020-21 Proposed Budget - Total Operating Requirements $ 2,040,071 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 38,700 Change in OCERS retirement costs 4,800 Change in group insurance costs 6,200 Other benefit cost adjustments 2,100 Other Cost Adjustments: Increase in meeting &training 2,300 Decrease in tools (92,800) Increase in repairs and maintenance 1,000 Increase in utility costs 500 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 4,911 2021-22 Proposed Budget - Total Operating Requirements $ 2,007,782 Section 6- Page 79 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018-19 Revised 2019-20 2020.21 Budget 2021.22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 1,150,409 $ 939,930 $ 1,035,900 $ 1,083,200 15.24% $ 1,135,000 4.78% Supplies 359,527 435,190 312,520 390,513 (10.27%) 304,779 (21.95%) Professional&Contractual Services 60,731 50,000 6,760 6,888 (8622%) 7,019 1.90% Research&Monitoring - - - - - - - Repairs&Maintenance 392,202 404,000 401,540 486,097 20.32% 487,097 0.21% Utilities - - - 22,500 - 23,000 222% Other 31,770 51,360 50,700 50,873 (0.95%) 50,887 0.03% Total $ 1,994,639 $ 1,880,480 $ 1,807,420 $ 2,040,071 8.49% $ 2,007,782 (1.58%) Expenditure Trends $2,13 S,609 $1,904,840 $1,994,639 o $2,040,071 $2,007,782 $1,880,4S 2017 2018 2019 2020 2021 2022 Section 6- Page 80 Go to Table of Contents Plant No. 1 Operations 870 DIRECTOR OF OPERATIONS& MAINTENANCE OPERATIONS MANAGER CHIEF PLANT O&M PROCESS SUPPORT OPERATOR SENIOR PRINCIPAL STAFF ENGINEER ANALYST ADMINISTRATIVE ENGINEER ASSISTANT ASSOCIATE ENGINEER(2) FRONT SIDE BACK SIDE DAY SHIFT/ FRONT SIDE BACK SIDE NIGHTSHIFT NIGHTSHIFT PROCESS DAY SHIFT DAY SHIFT 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(3) OPERATOR(4) OPERATOR(4) OPERATOR(2) OPERATOR(4) POWER PLANT POWER PLANT LEAD POWER POWERPLANT POWERPLANT OPERATOR II OPERATOR II PLANT OPER OPERATOR II OPERATOR II PLANT CONTROL CONTROL OPERATOR CENTER CENTER OPERATOR OPERATOR Staffing Trends 2020-21 &2021-22 Authorized FTE Positions Manager 1.00 Supervisors/ Professionals 13.00 Operations & Maintenance 39.00 62 62 62 62-----54 54 Administrative/ Clerical 1.00 Total 54.00 2017 2018 2019 2020 2021 2022 Section 6- Page 81 Go to Table of Contents 2020-21 & 2021 -22 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. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Achieve 100% permit compliance with water, ♦ Achieved 100% compliance with water, solids, air, solids, air, energy permits and regulatory and energy permits and regulatory requirements. requirements. ♦ Achieve 100% compliance level of 90 to 100% ♦ Achieved overall 83.3% compliance level of the Level of the Levels of Service targets. of Service targets. ♦ Manage operating expenditures to within 96 to ♦ Managed operating expenditures to 98.3% of 100% of approved budget. approved budget. ♦ Achieve greater than 90% compliance with the ♦ Achieved 100% compliance with the Safety Safety Scorecard. Scorecard. 2020-21 &2021-22 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. ♦ Manage operating expenditures to within 96 to 100% of approved budget. ♦ Achieve greater than 90% compliance with Safety Scorecard. 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 83.3% 83.3% > 90% > 90% In-house standard Compliance ♦ Manage Budget 104.4% 98.3% 96-100% 96-100% In-house standard ♦ Compliance with Safety 100% 100% > 90% > 90% In-house standard Scorecard Section 6- Page 82 Go to Table of Contents Plant No. 1 Operations Budget Overview The FY 2020-21 budget for the Plant No. 1 Operations Division reflect a decrease of 4%. This is primarily due to decreases in solids removal costs and chemical coagulants, which is somewhat offset with increases in repairs & maintenance costs. The FY 2021-22 budget reflects an increase of 1% over the prior year. This is primarily due to an increase in personnel costs, which is somewhat offset by a decreases in repairs & maintenance costs. 2019-20 Adjusted Budget - Total Operating Requirements $ 31,542,920 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, vacancy, etc.) 308,500 Change in OCERS retirement costs (18,190) Change in group insurance costs (256,000) Other benefit cost adjustments (158,200) Other Cost Adjustments: Decrease in minor furniture &fixture (160,000) Decrease in meeting &training (9,800) Decrease in chemicals coagulants (242,660) Increase in odor control 52,300 Decrease in disinfection (18,500) Increase in chemicals -cogen 118,660 Decrease in solids removal (1,020,000) Decrease in other contractual services (10,000) Increase in engineering 30,000 Increase in repairs & maintenance 268,550 Decrease in utility costs (83,370) Decrease in other operating supplies (6,000) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (6,310) 2020-21 Proposed Budget - Total Operating Requirements $ 30,331,900 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 289,400 Change in OCERS retirement costs 33,100 Change in group insurance costs 42,800 Other benefit cost adjustments 14,400 Other Cost Adjustments: Decrease in engineering (30,000) Decrease in repairs & maintenance (175,000) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 3,580 2021-22 Proposed Budget - Total Operating Requirements $ 30,510,180 Section 6- Page 83 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018.19 Revised 2019.20 2020.21 Budget 2021.22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $10,374,218 $ 8,706,890 $ 8,437,200 $ 8,583,000 (1.42%) $ 8,962,700 4.42% Supplies 5,702,398 8,494,010 8,143,284 8,215,700 (328%) 8,219,280 0.04% Professional&Contractual Services 7,155,016 8,853,000 8,660,510 7,865,000 (11.16%) 7,835,000 (0.38%) Research&Monitoring - - - - - - Repairs&Maintenance 89,341 96,450 114,520 365,000 278.43% 190,000 (47.95%) Utilities 4,622,636 5,383,370 5,557,148 5,300,000 (1.55%) 5,300,000 0.00% Other 2,201 9,200 2,500 3,200 (65.22%) 3,200 0.00% Total $27,945,810 $31,542,920 $30,915,162 $30,331,900 (3.84%) $30,510,180 0.59% Expenditure Trends $31,542,920 $30,331,900 $30,510,180 24,938,262 $25,419,293 $27,945,810 2017 2018 2019 2020 2021 2022 Section 6- Page 84 Go to Table of Contents Plant No. 2 Operations 840 DIRECTOR OF OPERATIONS& MAINTENANCE OPERATIONS MANAGER CHIEF PLANT OPERATOR ADMINISTRATIVE ASSISTANT FRONT SIDE BACK SIDE DAY SHIFT/ FRONT SIDE BACK SIDE NIGHTSHIFT NIGHTSHIFT PROCESS DAY SHIFT DAY SHIFT OPERATIONS OPERATIONS OPERATIONS OPERATIONS OPERATIONS SUPERVISOR SUPERVISOR SUPERVISOR(3) SUPERVISOR SUPERVISOR SENIOR PLANT SENIOR PLANT LEAD PLANT SENIOR PLANT SENIOR PLANT OPERATOR(1) OPERATOR(1) OPERATOR(4) OPERATOR(3) OPERATOR(5) PLANT PLANT SENIOR PLANT PLANT PLANT OPERATOR(5) OPERATOR(5) OPERATOR(3) OPERATOR(6) OPERATOR(5) POWER PLANT POWER PLANT LEAD POWER PLANT POWER PLANT OPERATOR II OPERATOR II POWERPLANT OPERATOR II OPERATOR II OPERATOR Staffing Trends 2020-21 & 2021-22 Authorized FTE Positions Supervisors/ Professionals 8.0 Operations & Maintenance 43.0 —52 52 Administrative / Clerical 1.0 50 5a 50 50 Total 52.0 2017 2018 2019 2020 2021 2022 Section 6 - Page 85 Go to Table of Contents 2020-21 & 2021 -22 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. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Achieve 100% compliance with water, solids, air, ♦ Achieved 100% compliance with water, solids, air, and energy permits and regulatory requirements. and energy permits and regulatory requirements. ♦ Achieve 100% compliance level of 90 to 100% of ♦ Achieved overall 83.3% compliance level of the the Levels of Service targets. Levels of Service targets. ♦ Manage operating expenditures to within 96 to ♦ Managed operating expenditures to 94.9% of 100% of approved budget. approved budget ♦ Achieve greater than 90% compliance with the ♦ Achieved 100% compliance with the Safety 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. ♦ Manage operating expenditures to within 96 to 100% of approved budget. ♦ Achieve greater than 90% compliance with the Safety Scorecard. Performance Measures Summary 2018-19 2019-20 2020-21 2021-22 Justification Actual Projected Proposed Proposed ♦ Compliance with Permits & 100% 100% 100% 100% In-house standard Regulatory Requirements ♦ Levels of Service 83.3% 83.3% > 90% > 90% In-house standard Compliance ♦ Manage Budget 105.7% 94.9% 96-100% 96-100% In-house standard ♦ Compliance with Safety 100% 100% > 90% > 90% In-house standard Scorecard Section 6 - Page 86 Go to Table of Contents Plant No. 2 Operations Budget Overview The FY 2020-21 budget for the Plant No. 2 Operations Division reflect a decrease of 2%. This is primarily due to decreases in utilities costs, which is somewhat off-set with increases in salary and benefits adjustments and materials &supplies. The FY 2021-22 budget reflects an increase of 2% over the prior year. This is primarily due to an increase in salary and benefits adjustments. 2019-20 Adjusted Budget - Total Operating Requirements $ 18,989,328 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, vacancy, etc.) 438,400 Change in OCERS retirement costs 40,050 Change in group insurance costs (78,400) Other benefit cost adjustments (100,100) Other Cost Adjustments: Increase in minor furniture&fixture 10,000 Increase in chemicals coagulants 429,018 Increase in odor control 134,200 Decrease in chemicals - cogen Op. (31,730) Decrease in grit&screenings disposal (24,000) Increase in oxygen plant operating 29,000 Decrease in repairs & maintenance (132,670) Decrease in utility costs (1,001,000) Decrease in tools (7,000) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (4,380) 2020-21 Proposed Budget - Total Operating Requirements $ 18,690,716 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 277,600 Change in OCERS retirement costs 31,600 Change in group insurance costs 41,100 Other benefit cost adjustments 13,900 Other Cost Adjustments: No other significant cost changes Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 2,170 2021-22 Proposed Budget - Total Operating Requirements $ 19,057,086 Section 6- Page 87 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018.19 Revised 2019.20 2020.21 Budget 2021.22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 8,039,724 $ 7,667,750 $ 7,403,000 $ 7,967,700 3.91% $ 8,331,900 4.57% Supplies 3,273,386 3,338,668 3,841,271 3,871,776 15.97% 3,873,946 0.06% Professional&Contractual Services 8,550,322 5,560,000 5,525,670 5,565,000 0.09% 5,565,000 0.00% Research&Monitoring - - - - - - - Repairs&Maintenance 174,159 267,670 157,600 135,000 (49.56%) 135,000 0.00% Utilities 1,487,357 2,149,200 1,152,330 1,148,200 (46.58%) 1,148,200 0.00% Other 1,757 6,040 2,530 3,040 (49.67%) 3,040 0.00% Total $21,526,705 $18,989,328 $18,082,401 $18,690,716 (1.57%) $19,057,086 1.96% ' Expenditure Trends 21,487,543 $19,168,727 $21,526,705 $18,989,328 $18,690,716 $19,057,086 2017 2018 2019 2020 2021 2022 Section 6 - Page 88 Plant No. 1 Maintenance 870 DIRECTOR OF OPERATIONS& MAINTENANCE MAINTENANCE MANAGER jIn NTENANCE MAINTENANCE NTENA CE SUPERINTENDENT (Div880) ADMINISTRATIVE ASSISTANT MAINTENANCE MAINTENANCE MAINTENANCE MAINTENANCE MAINTENANCE MAINTENANCE MAINTENANCE ANCE SUPERVISOR- - SUPERVISOR- SUPERVISOR- SUPERVISOR- SUPERVISOR- SUPERVISOR- SUPERVISOR- SOR- Mechanical Instrumentation Electrical Rebuild Civil Facilities Heavy Mechanical PMOptin'ization Planning&(Div 880) Scheduling LEAD INST. LEAD ELECTRICAL SENIOR LEAD FACILITIES SENIOR MAINTENANCE MAINTENANCENIC TECH. TECH (2) MECHANIC(3) WORKER MECHANIC(2) SPECIALIST(3) SPECIALIST(11)R LEAD ELECFACILITIES RELIABILITY ELECTRICAL WORKER/ MAINTENANCE IC(6) TECH TECH.II(6) FABRICATOR(3) BUILDER(2) TECH.(5) MECHANIC INST.TECH.II(g) ELECTRICAL FACILITIES TECH.1(2) MACHINIST WORKER/ ENGINEER PAINTER INST.TECH. ASSOCIATE ENGINEER ELECTRICAL TECH.II(2) Staffing Trends 2020-21 & 2021-22 Authorized FTE Positions Manager 1.0 Supervisors / Professionals 25.0 ss a5 ss s5 Operations & Maintenance 58.0 \ / Administrative / Clerical 1.0 61 s1 Total 85.0 2017 2018 2019 2020 2021 2022 Section 6 - Page 89 Go to Table of Contents 2020-21 & 2021 -22 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. The Division's professional, highly skilled staff use best practices and technology to provide Plant Operations, and Sanitation 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. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Achieve 100% compliance with water, solids, air, ♦ Achieved 100% compliance with water, solids, air, and energy permits and regulatory requirements. and energy permits and regulatory requirements. ♦ Achieve 100% compliance level of 90 to 100% of ♦ Achieved 100% compliance of the Levels of the Levels of Service targets. Service targets. ♦ Manage operating expenditures to within 96 to ♦ Managed operating expenditures at 86% of 100% of approved budget. approved budget. ♦ Maintain a Work Order backlog of less than 6 ♦ Maintained Work Order Backlog of less than 6 weeks. weeks. ♦ Achieve greater than 90% compliance with the ♦ Achieved 100% compliance with the Safety Safety Scorecard Scorecard. ♦ Achieve PM compliance of greater than 75% ♦ Achieved 75.8% PM compliance. 2020-21 &2021-22 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. ♦ Manage operating expenditures to within 96 to 100% of approved budget. ♦ Maintain work order backlog of less than 6 weeks. ♦ Achieve greater than 90% compliance with the safety scorecard. ♦ Achieve PM compliance of greater than 75%. 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 100% 100% 100% 100% In-house standard Compliance ♦ Operating expenditures 84% 86% 96-100% 96-100% In-house standard ♦ Maintain Work Order < 6 weeks < 6 weeks < 6 weeks < 6 weeks In-house standard Backlog ♦ Safety Scorecard 98.1% 100% > 90% > 90% In-house standard Compliance ♦ PM Compliance 81.3% 75.8% > 75% > 75% In-house standard Section 6- Page 90 Go to Table of Contents Plant No. 1 Maintenance Budget Overview The FY 2020-21 budget for the Plant No. 1 Maintenance Division reflect a decrease of 8%. This is primarily due to decreases in salary and benefits adjustments,janitorial services and engineering services. The FY 2021-22 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. 2019-20 Adjusted Budget - Total Operating Requirements $ 25,352,831 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, vacancy, etc.) (1,459,800) Change in OCERS retirement costs (173,660) Change in group insurance costs (153,500) Other benefit cost adjustments (123,700) Other Cost Adjustments: Increase in minor furniture&fixture 80,000 Decrease in meeting &training (18,090) Increase in tools 18,955 Decrease in groundskeeping (92,000) Decrease in janitorial (271,360) Increase in other contractual service 98,875 Increase in repairs & maintenance 247,529 Decrease in engineering (180,000) Decrease in other professional services (50,000) Increase in oil &grease 10,000 Increase in other waste disposal 52,000 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (2,350) 2020-21 Proposed Budget - Total Operating Requirements $ 23,335,730 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 480,500 Change in OCERS retirement costs 54,700 Change in group insurance costs 67,800 Other benefit cost adjustments 22,700 Other Cost Adjustments: Decrease in minor furniture &fixture (80,000) Decrease in meeting &training (3,000) Decrease in repairs & maintenance (1,500,000) Increase in engineering 30,000 Decrease in other professional services (45,000) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 3,010 2021-22 Proposed Budget - Total Operating Requirements $ 22,366,440 Section 6- Page 91 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018-19 Revised 2019-20 2020-21 Budget 2021-22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 8,488,563 $14,612,360 $11,120,900 $12,701,700 (13.08%) $13,327,400 4.93% Supplies 569,559 605,145 591,710 696,370 15.07% 614,980 (11.69%) Professional&Contractual Services 605,810 1,587,485 1,264,350 1,145,000 (27.87%) 1,130,000 (1.31%) Research&Monitoring - - - - - - Repairs&Maintenance 5,794,367 8,530,831 8,971,850 8,778,360 2•90% 7,278,360 (17.09%) Utilities 5,494 8,000 8,170 8,000 0.00% 8,000 0.00% Other 14,444 9,010 50,150 6,300 (30.08%) 7,700 22.22% Total $15,478,237 $25,352,831 $22,007,130 $23,335,730 (7.96%) $22,366,440 (4.15%) Expenditure Trends $25,352,831 $23,335,730 $22,366,440 $15,478,237 16,414,63 7 $15,5 5 5,788 2017 2018 2019 2020 2021 2022 Section 6 - Page 92 Go to Table of Contents Plant No. 2 Maintenance 880 DIRECTOR OF OPERATIONS& MAINTENANCE MAINTENANCE MANAGER MAINTENANCE MAINTENANCE SUPERINTENDENT SUPERINTENDENT (Div 870) ADMINISTRATIVE ASSISTANT MAINTENANCE MAINTENANCE MAINTENANCE MAINTENANCE MAINTENANCE MAINTENANCE SUPERVISOR- SUPERVISOR- SUPERVISOR- SUPERVISOR- SUPERVISOR- SUPERVISOR- Heavy Mechanical Facilities Mechanical Mechanical Instrumentation Electrical LEAD LEAD FACILITIES LEAD LEAD LEAD INST. LEAD MECHANIC WORKER MECHANIC MECHANIC TECH.(2) ELECTRICAL TECH.(2) SENIOR FACILITIES SENIOR EMECHANIC(6)ENIOR ELECTRICAL MECHANIC(4) MECHANIC(6) WORKER/ INST.TECH.II(6) TECH.II(7) PAINTER FACILITIES ELECTRICAL WORKER/ MECHANIC L INST.TECH.1(2) TECH.1(2) BUILDER MAINTENANCE WORKER Staffing Trends 2020-21 & 2021-22 Authorized FTE Positions Supervisors / Professionals 7.0 Operations & Maintenance 45.0 45 45---50 50 —53 53 Administrative/ Clerical 1.0 Total 53.0 2017 2018 2019 2020 2021 2022 Section 6 - Page 93 Go to Table of Contents 2020-21 & 2021 -22 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, and asset 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, and Plant Operations with electrical power, control systems, environmental controls, and mechanical and facilities support to ensure and restore reliability. 2019-20 Performance Objectives 2019-20 Performance Results ♦ Achieve 100% compliance with water, solids, air, ♦ Achieved 100% compliance with water, solids, air, and energy permits and regulatory requirements. and energy permits and regulatory requirements. ♦ Achieve 100% compliance level of 90 to 100% of ♦ Achieved 100% compliance of the Levels of the Levels of Service targets. Service targets. ♦ Manage operating expenditures to within 96 to ♦ Managed operating expenditures to 107% of 100% of approved budget. approved budget. ♦ Maintain a Work Order backlog of less than 6 ♦ Maintained a Work Order backlog of less than 6 weeks. weeks. ♦ Achieve greater than 90% compliance with the ♦ Achieved 100% compliance with the Safety Safety Scorecard. Scorecard. ♦ Achieve PM compliance of greater than 75%. ♦ Achieved PM compliance of 80.2%. 2020-21 &2021-22 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. ♦ Manage operating expenditures to within 96 to 100% of approved budget. ♦ Maintain a Work Order backlog of less than 6 weeks. ♦ Achieve greater than 90% compliance with the safety scorecard. ♦ Achieve PM compliance of greater than 75%. 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 100% 100% 100% 100% In-house standard Compliance ♦ Operating expenditures 98% 107% 96-100% 96-100% In-house standard ♦ Maintain Work Order < 6 weeks < 6 weeks < 6 weeks < 6 weeks In-house standard Backlog ♦ Safety Scorecard 100% 100% 100% 100% In-house standard Compliance ♦ PM Compliance 89.7% 80.2% > 75% > 75% In-house standard Section 6 - Page 94 Go to Table of Contents Plant No. 2 Maintenance Budget Overview The FY 2020-21 budget for the Plant No. 2 Maintenance Division reflect an increase of 13%. This is primarily due to increases in salary and benefits adjustments and repairs and maintenance costs. The FY 2021-22 budget reflects a decrease of 11% 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. 2019-20 Adjusted Budget - Total Operating Requirements $ 17,901,451 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, vacancy, etc.) 794,800 Change in OCERS retirement costs 55,200 Change in group insurance costs (59,900) Other benefit cost adjustments (109,000) Other Cost Adjustments: Increase in minor furniture&fixture 18,500 Decrease in meeting &training (17,580) Increase in tools 90,600 Decrease in groundskeeping (90,000) Decrease in janitorial (115,000) Increase in other contractual service 430,000 Increase in repairs & maintenance 981,922 Increase in engineering 140,000 Increase in other professional services 114,100 Increase in oil &grease 23,070 Increase in other waste disposal 25,000 Increase in safety equipment/tools 77,360 Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services (80) 2020-21 Proposed Budget - Total Operating Requirements $ 20,260,443 Changes in Personnel Expenses: Net salary adjustments (MOU-related, leave payoffs, vacancy, etc.) 334,400 Change in OCERS retirement costs 34,800 Change in group insurance costs 42,800 Other benefit cost adjustments 14,100 Other Cost Adjustments: Decrease in minor furniture &fixture (15,000) Decrease in meeting &training (3,000) Increase in other contractual service 250,000 Decrease in repairs & maintenance (2,875,500) Decrease in oil &grease (20,000) Aggregate change in Other Categories: Aggregate change in other materials, supplies, and services 1,140 2021-22 Proposed Budget - Total Operating Requirements $ 18,024,183 Section 6- Page 95 Go to Table of Contents 2020-21 & 2021 -22 Budget 2019.20 Operating Expenses 2018-19 Revised 2019.20 2020.21 Budget 2021.22 Budget By Category Actual Budget Projected Proposed %Change Proposed %Change Personnel $ 6,850,227 $ 6,720,400 $ 7,638,000 $ 7,401,500 10.13% $ 7,827,600 5.76% Supplies 452,774 412,720 484,330 602,490 45.98% 564,690 (6.27%) Professional&Contractual Services 313,592 481,900 988,570 986,000 104.61% 1,236,000 25.35% Research&Monitoring - - - - - - - Repairs&Maintenance 8,189,833 10,269,671 10,647,920 11,251,593 9•56% 8,376,093 (25.56%) Utilities 8,881 9,000 12,630 12,000 33.33% 12,000 0.00% Other 16,485 7,760 6,640 6,860 (11.60%) 7,800 13.70% Total $15,831,792 1 $17,901,451 1 $19,778,090 1 $20,260,443 13.18% $18,024,183 (11.04%) Expenditure Trends $20,260,443 $17,901,451 $18,024,183 $15,831,792 $13,593,770 $11,712,304 2017 2018 2019 2020 2021 2022 Section 6- Page 96 Go to Table of Contents Self-Insurance Program Overview SELF-FUNDED INSURANCE PLANS In order to maintain the reserve balance of $2 million for the Workers' Compensation OCSD is partially self-insured for general liability and program, appropriations for in-lieu premiums workers' compensation. The General Liability and charged to operating divisions are recommended Property program and the Workers' at$518,800 and$690,000 for FY 2020-21 and FY Compensation program have been in existence since 2021-22, 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 $100,000,000 in FY 2020-21 and in FY 2021-22. 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. OCSD is partially self-insured for earthquake, but does carry$25 million in coverage on 15 key structures with a $5 million deductible. OCSD also has a $50 million sublimit for builder's risk under the property insurance program to ensure upcoming construction projects are adequately covered. • In order to maintain a reserve balance of $55 million for FY 2020-21 and FY 2021-22 for the Property and General Liability program, appropriations for in-lieu premiums charged to the Revenue Areas are recommended at $1,021,000 and $1,680,000 for FY 2020-21 and FY 2021-22, 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 Go to Table of Contents 2020-21 & 2021 -22 Budget Total of the Self-Insurance Program 2018-19 2019-20 2019-20 2020-21 2021-22 DESCRIPTION OR ACCOUNT TITLE Actuals Budget Projected Proposed Proposed Beginning Reserves $ 57,452,788 $ 57,000,000 $ 57,426,550 $ 57,760,200 $100,000,000 Revenues In-Lieu Premiums 1,885,900 2,500,000 2,500,000 1,539,800 2,370,000 Miscellaneous Other Revenue 3,794 10,000 - - - Reserve Contribution - - - 43,000,000 - Service Department Allocation 105,600 20,000 105,600 110,000 110,000 Total Revenues 1,995,294 2,530,000 2,605,600 44,649,800 2,480,000 Expenses Benefits/Claims 395,789 790,000 491,900 460,000 470,000 Contractual Services - - - - - Legal Services 70,479 120,000 102,400 130,000 130,000 Professional Services 61,746 70,000 44,700 70,000 70,000 Subtotal 528,014 980,000 639,000 660,000 670,000 Policy Premium Expense 1,493,518 1,550,000 1,632,900 1,750,000 1,810,000 Total Expenses 2,021,532 2,530,000 2,271,900 2,410,000 2,480,000 Excess Revenue(Expenses) (26,238) - 333,700 42,239,800 - Ending Reserves $ 57,426,550 $ 57,000,000 $ 57,760,250 $100,000,000 $100,000,000 Section 7 - Page 2 Go to Table of Contents Self-Insurance Program General Liability and Property Self-Insurance Program 2018-19 2019-20 2019-20 2020-21 2021-22 DESCRIPTION OR ACCOUNT TITLE Actuals Budget Projected Proposed Proposed Beginning Reserves $ 55,367,246 $ 55,000,000 $ 55,389,842 $ 55,609,000 $ 98,000,000 Revenues In-Lieu Premiums 1,299,300 1,720,000 1,720,000 1,021,000 1,680,000 Miscellaneous Other Revenue 3,794 10,000 - - - Reserve Contribution - - - 43,000,000 - Service Department Allocation (3,096) 20,000 (3,100) - - Total Revenues 1,299,998 1,750,000 1,716,900 44,021,000 1,680,000 Expenses Benefits/Claims 54 360,000 80,200 40,000 40,000 Contractual Services - - - - - Legal Services - 40,000 - 40,000 40,000 Professional Services 451 10,000 - 20,000 20,000 Subtotal 505 410,000 80,200 100,000 100,000 Policy Premium Expense 1,276,897 1,340,000 1,417,500 1,530,000 1,580,000 Total Expenses 1,277,402 1,750,000 1,497,700 1,630,000 1,680,000 Excess Revenue(Expenses) 22,596 - 219,200 42,391,000 - Ending Reserves $ 55,389,842 $ 55,000,000 $ 55,609,042 $ 98,000,000 $ 98,000,000 Section 7 - Page 3 Go to Table of Contents 2020-21 & 2021 -22 Budget Workers' Compensation Self-Insurance Program 2018-19 2019-20 2019-20 2020-21 2021-22 DESCRIPTION OR ACCOUNT TITLE Actuals Budget Projected Proposed Proposed Beginning Reserves $ 2,085,542 $ 2,000,000 $ 2,036,708 $ 2,151,200 $ 2,000,000 Revenues In-Lieu Premiums 586,600 780,000 780,000 518,800 690,000 Miscellaneous Other Revenue - - - - - Transfer In - - - - - Service Department Allocation 108,696 - 108,700 110,000 110,000 Total Revenues 695,296 780,000 888,700 628,800 800,000 Expenses Benefits/Claims 395,735 430,000 411,700 420,000 430,000 Contractual Services - - - - - Legal Services 70,479 80,000 102,400 90,000 90,000 Professional Services 61,295 60,000 44,700 50,000 50,000 Subtotal 527,509 570,000 558,800 560,000 570,000 Policy Premium Expense 216,621 210,000 215,400 220,000 230,000 Total Expenses 744,130 780,000 774,200 780,000 800,000 Excess Revenue(Expenses) (48,834) - 114,500 (151,200) - Ending Reserves $ 2,036,708 $ 2,000,000 $ 2,151,208 $ 2,000,000 $ 2,000,000 Section 7 - Page 4 Go to Table of Contents Capital Improvement Program Overview CIP Budget Request Summary • Project No. P2-137: Digesters Rehabilitation at Each year, the Board of Directors, through their Plant No. 2 committee process, reviews and approves the Capital • Project No. P1-126: Primary Sedimentation Improvement Program (CIP) prepared by staff for both Basins No. 3-5 Replacement at Plant No. 1 sewage collection system projects (collections)and the joint works treatment and disposal system projects. District staff has also validated all active and future CIP projects to ensure the project scopes of work, schedule CIP projects take several years to complete the and cost estimates are up to date. Through the budget planning, design, and construction cycle.The proposed validation process, each project's schedule, staff budget for each project covers the life of the project. resources, total project cost, cash flow and risks are This budget is reevaluated each year for the purpose of assessed to confirm the budgetary requirements. The managing annual cash flows. Thus, many of the validated CIP includes 70 active and future capital projects in the CIP Budget for FY 2020-21 and 2021-22 projects, five programs, such as the Planning Studies are continuing projects that were approved in prior Program (M-Studies) and Small Construction Program years. (M-FE), and budget for capital equipment purchases In December 2017,the 20 17 Facilities Master Plan was with a total CIP budget authority of $4.18 billion. The adopted by the Board of Directors. The Master Plan total CIP budget authority has increased by$153 million identified a phased 20-year program of capital as compared to FY 2019-20 approved budget of$4.03 improvement projects that will allow OCSD to billion. The changes are summarized below: maintain reliability and accommodate future growth, as FY2019-20 Approved Total CIP $4.03 B well as meet future regulatory requirements, level of Budget Authority service goals, and strategic initiatives. Project Net Changes: With this phased 20-year program as a starting point, Midyear Approvals $1.3 M the Asset Management Program within the Planning New $392 M Division continues assessing the condition of the Budget Increases $265 M District's existing assets and systems to ensure these assets and systems can provide the necessary level of Budget Decreases ($247 M) service.The Planning Division continues reviewing and Cancellation/Closures ($257 M) updating the ongoing and future CIP to appropriately Capital Equipment Purch. 0.7 M manage the risks associated with asset or system failure. Projects can be delayed, consolidated or Total: $153 M rescoped to help ensure that the CIP is delivered in the FY2020-21 Proposed Total CIP $4.1 B most efficient way possible. The Asset Management Budget Authority Program will continue these efforts and will continue to define the future CIP project requirements not currently included on the CIP list but are anticipated within the Following is a table of the FY 2020-21 proposed CIP long-term financial plan to ensure effective and efficient budget: operations. Description FY 2020-21 CIP This year, eight new projects are proposed for addition Budget to the 2020-21 budget. These are: Capital Improvement Program (CIP) $164.8 M Less: Savings and Deferrals ($17.3)M • Project No. 7-68: MacArthur Pump Station Force Main Improvements Net CIP Outlay $147.6 M • Project No. J-135: Central Generation Engine The proposed FY 2020-21 net CIP outlays can be Overhauls at Plant No. 1 and 2 categorized by the location of the projects in terms of • Project No. 11-33: Edinger Pump Station wastewater treatment process, or by the reasons why Replacement the projects are needed, i.e. project drivers. charts • Project No. J-120: Process Control Systems showing the distribution of the funds by CIP driver and Upgrades location are shown on the following page. • Project No. P1-137: Support Buildings Seismic Improvements at Plant No. 1 The proposed net CIP outlays can also be categorized by project phase or status. The following chart shows • Project No. P2-135: Sodium Bisulfite Station the net CIP outlays of projects in the Planning, Design Rehabilitation at Plant No. 2 and Construction phases for FY 2020-21. Section 8 - Page 1 Go to Table of Contents 2020-21 & 2021 -22 Budget and Construction phases for FY 2020-21. Projects that are in the Planning phase make up about 3 percent of the FY 2020-21 net CIP outlay. Projects Projected FY20-21 Net CIP Outlay in the Planning phase are planning or research by Project Status studies that are primarily managed under the Design Planning Studies Program, or M-Studies. 44% 44 percent of the FY 2020-21 net CIP outlay will be for projects that are in the Design phase. The three largest projects in the Design phase are Headquarters Complex Plant No. 1 (Project No. P1-128), Headworks Rehabilitation at Plant No. 1 (Project No. P1-105), and Primary Treatment Rehabilitation at Plant No. 2 (Project No. P2-98) with Planning projected expenditures of $5.9 million and $8.9 3% Construction million, $8.1 M respectively in FY 2020-21. Note 53/o these Projects are heading into construction towards the latter half of FY 2020-21 and portions of these expenditures include this. Projected FY20-21 Net CIP Outlay 53 percent of the FY 2020-21 net CIP outlay will be by Area spent in construction. The four most significant Liquid other: construction projects are the Ocean Outfall System Treatment: 11% Solids Rehabilitation (Project No. J-117), Westminster 38% 111iii 6% Blvd. Force Main Replacement (Project No. 3-62), Return Activated Sludge Piping Replacement Support at Plant No. 2 (Project No. P2-123), and Newhope- acilities Placentia Trunk Replacement (Project No. 2-72) 11% with projected FY 2020-21 expenditures of $26.1 million, $11.6 million, $6.1 million, and $18.4 million, respectively. Further information on these Projects can be found in Section 8. Utility Systems Collection 6% Facilities 28% Projected FY20-21 Net CIP Outlay by Project Driver Rehab.and Replac 61% 41! Strategic Regulatory Initiatives 4% Additional 26% Capacity 9% Section 8 - Page 2 Go to Table of Contents Overview Treatment Process Diagram OceanOutfal) Systems Blend and Pump to Ocean Outfall Collections Headworks Primary Secondary Pipe Treatment Treatment ram-°0 n ° °°°°° °°°° Aeration; Settling oBasin o2SIn Basin O°° ° °° °° °°°°°° Reclamation Incoming 12 Wastewater Seawater Barrier from Homes and Landscape Irrigation Businesses O.0 Water Districts Reclamation Plant Utility Land Systems Dewatering ► Application . Composting i r Solids Handling & Digestion Budget Legend Ocean Outfall Solids Handling Systems & Digestion Collections �ti Others ��1i� Strategic & Facilities ri Master Planning T Equipment Primary Treatment Support Facilities Headworks ® Process Related ® Utility Systems Special Projects a e„ o0 0�.Information Secondary Treatment Water Management Management Systems , Projects Section 8 - Page 3 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Summary FY 2020-21 Rehabilitation Strategic Additional Total Item and Initiatives Capacity Regulatory Budget Replacement Collections Facilities $ 30,890,189 $ 5,011,674 $ 10,978,333 $ 173,024 $ 47,053,220 Solids Handling&Digestion 7,765,701 1,505,089 448,210 - 9,719,000 Support Facilities 10,520,379 4,953,821 844,008 1,419,686 17,737,894 Utility Systems 9,002,424 993,766 - - 9,996,190 Liquid Treatment: Ocean Outfall Systems 6,578,011 19,632,187 26,210,198 Headworks 9,418,986 5,413,951 14,832,937 Secondary Treatment 11,641,977 - 11,641,977 Primary Treatment 8,793,814 645,639 9,439,453 Liquid Treatment Subtotal 36,432,788 25,691,777 - - 62,124,565 Other: Strategic&Master Planning 2,327,507 1,454,693 581,877 1,454,693 5,818,770 Equipment 1,265,450 1,265,450 1,265,450 1,265,450 5,061,800 Information Management Systems 2,896,601 1,837,100 - 59,707 4,793,408 Process Related Special Projects - - 1,326,635 1,326,635 Research 931,220 - 931,220 Water Management Projects 243,477 243,477 Others - 26,901 - - 26,901 Other Subtotal 6,489,558 5,758,841 1,847,327 4,106,485 18,202,211 Grand Total $ 101,101,039 $ 43,914,968 $ 14,117,878 $ 5,699,195 $ 164,833,080 Less: CIP Savings&Deferrals ($17,271,000) Proposed Net CIP Outlay $ 147,562,080 Section 8- Page 4 Go to Table of Contents Summary of Capital Requirements - FY 2020-21 Other: $18.2M 11.0% Liquid Treatment: Solids Handling&Digestion $62.1 M $9.71VI 37.7% 5.9% Support Facilities $17.7M 10.7% Utility Systems $10.0M 6.1 % Collections Facilities $47.1 M 28.6% FY 2020-21 Capital Improvement Program Outlay by Process-$164.8 Million Net CIP Outlay-$147.6 Million Strategic Initiatives $43.9M 26.6% Additional Capacity $14.1 M 8.6% Regulatory $5.7M 3.5% I Rehabilitation and Replaceme $101.1M 61.3% FY 2020-21 Capital Improvement Program Outlay by Driver-$164.8 Million Net CIP Outlay-$147.6 Million Section 8- Page 5 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Summary FY 2021-22 Rehabilitation Strategic Additional Total Item and Initiatives Capacity Regulatory Budget Replacement Authority Collections Facilities $ 33,299,633 $ 2,940,467 $ 9,447,627 $ 77,669 $ 45,765,396 Solids Handling&Digestion 12,909,404 7,198,575 - - 20,107,979 Support Facilities 29,914,745 27,782,184 1,010,484 1,010,484 59,717,897 Utility Systems 8,535,811 3,387,706 - - 11,923,517 Liquid Treatment: Headworks 49,765,501 8,633,144 58,398,645 Primary Treatment 27,072,882 647,621 27,720,503 Ocean Outfall Systems 5,972,717 17,711,492 23,684,209 Secondary Treatment 2,892,546 - 2,892,546 Liquid Treatment Subtotal 85,703,646 26,992,257 - 112,695,903 Other: Information Management Systems 5,501,538 1,072,255 - 59,709 6,633,502 Equipment 647,750 647,750 647,750 647,750 2,591,000 Strategic&Master Planning 595,410 372,132 148,853 372,132 1,488,527 Research - 729,331 - - 729,331 Water Management Projects 265,666 265,666 Others 26,903 - 26,903 Process Related Special Projects - - - 13 13 Other Subtotal 6,744,698 3,114,037 796,603 1,079,604 11,734,942 Grand Total $ 177,107,937 $ 71,415,226 $ 11,254,714 $ 2,167,757 $ 261,945,634 Less: CIP Savings&Deferrals ($21,101,000) Proposed Net CIP Outlay $ 240,844,634 Section 8- Page 6 Go to Table of Contents Summary of Capital Requirements - FY 2021 -22 Support Facilities Utility Systems $59.71VI $11.9M 22.8% 4.5% Collections Facilities $45.8M 17.5% Solids Handling&Digestion $20.1 M 7.7% Other: $11.7M 4.5 Liquid Treatment: $112.7M 43.0% FY 2021-22 Capital Improvement Program Outlay by Process-$261.9 Million Net CIP Outlay-$240.8 Million Strategic Initiatives Additional Capacity $71.41VI $11.31VI 27.3% 4.3% Regulatory $2.2M 0.8% I Rehabilation and Replacement $177.0M 67.6% FY 2021-22 Capital Improvement Program Outlay by Driver-$261.9 Million Net CIP Outlay-$240.8 Million Section 8 - Page 7 Go to Table of Contents 2020-21 & 2021 -22 Budget Summary of Capital Requirement - Collection System Improvement Projects Project Total Est.Cost Proposed Proposed Project Phase Project to Date 2020.21 2021.22 Future Project Number 7/1/20 Budget 6/30/20 Outlay Outlay Outlay Status Collections Facilities Santa Ana Trunk Sewer Rehab 1-23 Planning $ 54,620,000$ $ 1,051,179$ 53,568,821 New Greenville-Sullivan Trunk Impr. 1-24 Planning 48,600,000 371,204 48,228,796 New Edinger Pump Station Repl. 11-33 Planning 10,153,000 102,369 275,917 9,774,714 Revised Slater Pump Station Rehab 11-34 Planning 26,622,000 600,988 26,021,012 Revised SARI Rock Stabilizers Removal 2-41-8 Const./Impl. 4,860,000 4,809,921 45,869 4,210 Revised Taft Branch Capacity Impr. 2-49 Design 14,000,000 167,488 314,739 724,782 12,792,991 Revised Newhope-Placentia Trunk Grade Separation Repl. 2-65 Const./Impl. 4,300,000 4,196,520 92,123 11,357 Continuing Newhope-Placentia Trunk Repl. 2-72 Const./Impl. 112,000,000 78,171,924 18,441,383 10,278,948 5,107,745 Continuing Yorba Linda Dosing Station Installation 2-73 Planning 14,080,000 14,080,000 Revised Beach Relief Trunk/Knott Interceptor/Miller Holder Trunk 3-60 Planning 35,132,000 35,132,000 Revised Rehab Westminster Blvd Force Main Repl. 3-62 Const./Impl. 44,000,000 10,662,813 11,561,567 11,582,220 10,193,400 Revised Rehab of Western Regional Sewers 3-64 Design 70,000,000 17,698,759 5,711,536 12,848,669 33,741,036 Revised Interstate 405 Widening Project Impacts on OCSD 3-66 Design 250,000 137,799 35,032 62,102 15,067 Revised Sewers Seal Beach Pump Station Repl. 3-67 Design 78,900,000 503,977 3,427,428 2,093,648 72,874,947 Continuing Los Alamitos Sub-Trunk Extension 3-68 Planning 84,124,000 84,124,000 Revised Crystal Cove Pump Station Rehab 5-66 Planning 13,200,000 13,200,000 Revised Bay Bridge Pump Station Repl. 5-67 Design 74,000,000 2,991,087 5,684,572 1,145,952 64,178,389 Continuing Newport Beach Pump Stations Pressurization Impr. 5-68 Design 4,300,000 116,903 378,513 343,555 3,461,029 Revised District 6 Trunk Sewer Relief 6-17 Const./Impl. 7,250,000 7,219,964 30,036 Revised MacArthur Pump Station Rehab 7-63 Planning 9,800,000 9,800,000 Revised Main Street Pump Station Rehab 7-64 Planning 39,450,000 39,450,000 Revised Gisler-Red Hill Interceptor&Baker Force Mains Rehab 7-65 Design 21,000,000 95,832 823,405 1,763,122 18,317,641 Revised Sunflower&Red Hill Interceptor Repairs 7-66 Design 4,700,000 227,600 359,017 2,553,194 1,560,189 Revised MacArthur Force Main Impr. 7-68 Planning 2,468,000 45,631 54,349 2,368,020 Revised North Trunk Impr. 7-69 Planning 9,200,000 9,200,000 New Collections Facilities Total Budget 787,009,000 127,000,588 47,053,220 45,765,396 567,189,797 Section 8- Page 8 Go to Table of Contents Summary of Capital Requirements Summary of Capital Requirement -Treatment System Improvement Projects Project Total Est.Cost Proposed Proposed Project Phase Project to Date 2020-21 2021-22 Future Project Number 7/1/20 Budget 6/30/20 Outlay Outlay Outlay Status Equipment Equipment Purchases Equipment Const./Impl. 9,062,800 1,410,000 5,061,800 2,591,000 Continuing Equipment Total 9,062,800 1,410,000 5,061,800 2,591,000 Headworks Headworks Rehab at P1 P1-105 Design 406,000,000 26,468,394 9,418,986 49,765,501 320,347,119 Continuing Headworks Modification at P2 for GWRS Final P2-122 Const./Impl. 32,000,000 8,972,891 5,413,951 8,633,144 8,980,014 Revised Expansion Headworks Total 438,000,000 35,441,285 14,832,937 58,398,645 329,327,133 Primary Treatment Primary Sedimentation Basins No.3-5 Repl.at P1 P1-126 Planning 117,700,000 521,079 61,054 185,465 116,932,402 Revised Primary Sedimentation Basins No.6-31 Reliability Impr, P1-133 Planning 10,100,000 604,011 1,291,277 1,295,242 6,909,470 Revised at P1 B/C-Side Primary Sedimentation Basins Rehab at P2 P2-133 Planning 279,842,000 279,842,000 Revised Primary Treatment Rehabiliation at P2 P2-98 Design 237,000,000 26,329,990 8,087,122 26,239,796 176,343,092 Revised Primary Treatment Total 644,642,000 27,455,080 9,439,453 27,720,503 580,026,964 Secondary Treatment Return Activated Sludge Piping Repl.at Activated P1-129 Const./Impl. 10,300,000 4,516,052 5,566,916 217,032 Continuing Sludge P1 Return Activated Sludge Piping Repl.at P2 P2-123 Const./Impl. 10,800,000 1,866,933 6,075,061 2,174,218 683,788 Revised Activated Sludge Aeration Basin Rehab at P2 P2-136 Planning 65,600,000 501,296 65,098,704 New Secondary Treatment Total 86,700,000 6,382,985 11,641,977 2,892,546 65,782,492 Solids Handling&Digestion Sludge Dewatering&Odor Control at P1 P1-101 Const./Impl. 197,000,000 196,103,581 896,419 Revised Digester Ferric Chloride Piping Repl.at P1 P1-135 Planning 1,360,000 115,689 170,893 1,021,560 51,858 Continuing Interim Food Waste Receiving Facility P2-124 Design 6,300,000 1,198,406 1,058,172 3,946,321 97,101 Continuing TPAD Digester Facility at P2 P2-128 Planning 455,000,000 493,485 1,787,669 13,009,017 439,709,829 Revised Digester P,Q,R,&S Repl. P2-129 Planning 165,900,000 165,900,000 Future Digesters Rehab at P2 P2-137 Planning 40,632,000 589,432 1,547,988 38,494,580 New Sludge Dewatering&Odor Control at P2 P2-92 Const./Impl. 90,477,000 84,677,492 5,216,415 583,093 Continuing Solids Handling&Digestion Total 956,669,000 282,588,653 9,719,000 20,107,979 644,253,368 Ocean Outfall Systems Ocean Outfall System Rehab J-117 Const./Impl. 166,000,000 59,745,674 26,108,350 23,477,550 56,668,426 Continuing Sodium Bisulfite Station Rehab at P2 P2-135 Planning 3,834,000 101,848 206,659 3,525,493 New Ocean Outfall Systems Total 169,834,000 59,745,674 26,210,198 23,684,209 60,193,919 Utility Systems Digester Gas Facilities Repl. J-124 Design 173,000,000 8,446,913 4,282,106 3,736,720 156,534,261 Revised Natural Gas Pipelines Repl.at P1&P2 J-127 Design 1,610,000 465,774 1,038,492 105,734 Revised Section 8- Page 9 Go to Table of Contents 2020-21 & 2021 -22 Budget Summary of Capital Requirement - Treatment System Improvement Projects Project Total Est.Cost Proposed Proposed Project Phase Project to Date 2020.21 2021.22 Future Project Number 7/1/20 Budget 6/30/20 Outlay Outlay Outlay Status Utility Systems Central Generation Engine Overhauls at P1&2 J-135 Planning 26,000,000 291,727 1,521,979 24,186,294 New Power Building Structural Seismic Impr.at P1&2 J-136 Planning 7,080,000 239,060 6,840,940 New Electrical Power Distribution System Impr. J-98 Design 26,500,000 380,862 1,823,293 2,075,970 22,219,875 Revised Central Generation Rehab at P1 P1-127 Planning 68,452,000 68,452,000 Revised Uninterruptible Power Supply Impr.at P1 P1-132 Design 7,000,000 274,014 928,600 584,761 5,212,625 Continuing 12.47 kVSwitchgear Repl.at Central Generation at P1 P1-136 Planning 14,800,000 14,800,000 New Network&Server Relocation at P1 P1-138 Planning 3,027,000 228,012 2,798,988 New Consolidated Demolition&Utility Impr.at P2 132-110 Const./Impl. 30,000,000 29,069,004 914,715 16,281 Revised Central Generation Rehab at P2 132-119 Planning 108,000,000 108,000,000 Revised Warehouse,Electrical Substation&12kV Service Center P2-126 Design 65,000,000 31,317 717,257 3,415,000 60,836,426 Revised Repl.at P2 Utility Systems Total 530,469,000 38,667,885 9,996,190 11,923,517 469,881,408 Process Related Special Projects Safety Impr.Program J-126 Const./Impl. 16,000,000 14,673,352 1,326,635 13 Revised Process Related Special Projects Total 16,000,000 14,673,352 1,326,635 13 Information Management Systems Process Control Systems Upgrades J-120 Planning 33,000,000 10,000 4,987,341 28,002,659 Revised Project Mgmt.Information System J-128 Design 2,280,000 1,407,886 306,250 565,864 Revised Information Technology Capital Program M-MC-IT Const./Impl. 10,000,000 1,695,335 3,061,700 1,012,782 4,230,183 Continuing EAM Software&Process Implementation SP-100 Const./Impl. 7,500,000 6,634,767 865,233 Continuing Geographic Information System SP-15 Const./Impl. 4,700,000 3,437,774 59,707 59,709 1,142,810 Revised Process Control Systems Upgrades Study SP-196 Planning 3,400,000 2,036,443 1,355,751 7,806 Revised Information Management Systems Total 60,880,000 15,212,205 4,793,408 6,633,502 34,240,885 Strategic&Master Planning Planning Studies Program M-STUDIES Planning 28,652,000 16,835,714 5,818,770 1,488,527 4,508,989 Continuing Strategic&Master Planning Total 28,652,000 16,835,714 5,818,770 1,488,527 4,508,989 Water Management Projects GWRS Final Expansion Coordination J-36-2 Const./Impl. 1,132,000 435,267 243,477 265,666 187,590 Continuing Water Management Projects Total 1,132,000 435,267 243,477 265,666 187,590 Research Research Program M-RESEARCH Planning 8,500,000 2,153,331 931,220 729,331 4,686,118 Continuing Research Total 8,500,000 2,153,331 931,220 729,331 4,686,118 Support Facilities Laboratory Rehab at P1 J-133 Planning 44,200,000 44,200,000 Revised Small Construction Projects Program M-FE Const./Impl. 65,000,000 14,111,262 8,440,078 10,104,836 32,343,824 Revised Section 8-Page 10 Go to Table of Contents Summary of Capital Requirements Summary of Capital Requirement -Treatment System Improvement Projects Project Total Est.Cost Proposed Proposed Project Phase Project to Date 2020-21 2021-22 Future Project Number 7/1/20 Budget 6/30/20 Outlay Outlay Outlay Status Support Facilities Operations&Maintenance Capital Program M-SM-CAP Const./Impl. 15,622,000 4,328,883 1,442,561 1,089,947 8,760,609 Continuing Title 24 Access Compliance&Building Rehab Project P1-115 Const./Impl. 18,400,000 17,824,322 575,678 Continuing Headquarters Complex P1-128 Design 167,500,000 29,406,431 6,339,527 42,138,713 89,615,329 Continuing South Perimeter Security&Utility Impr.at P1 P1-134 Design 10,000,000 1,235,005 680,311 4,607,510 3,477,174 Revised Support Buildings Seismic Impr.at P1 P1-137 Planning 23,730,000 259,739 519,477 22,950,784 New Collections Yard Relocation P2-127 Planning 1,840,000 106,701 1,733,299 Future Operations&Maintenance Complex at P2 P2-138 Planning 95,000,000 1,150,713 93,849,287 New Support Facilities Total 441,292,000 66,905,903 17,737,894 59,717,897 296,930,306 Others Capital Improvement Program Mgmt.Services SP-195 Planning 700,000 279,473 26,901 26,903 366,723 Revised Others Total 700,000 279,473 26,901 26,903 366,723 Total Treatment and Disposal Projects 3,383,470,000 566,776,808 112,718,060 213,589,238 2,490,385,894 Total Collections Facilities 787,009,000 127,000,588 47,053,220 45,765,396 567,189,797 Capital Equipment Purchases 9,062,800 1,410,000 5,061,800 2,591,000 Total Capital Improvement Program Budget $4,179,541,800 $695,187,395 $164,833,080 $261,945,634 $3,057,575,691 Less:CIP Savings&Deferrals ($17,271,000) ($21,101,000) Proposed Net CIP Outlay $147,562,080 $240,844,634 Section 8- Page 11 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Santa Ana Trunk Sewer Rehabilitation - 1-23 Project Category Collections Facilities Project Status: New Description This project will rehabilitate a portion of the Santa Ana Trunk sewer. This will include rehabilitation of pipelines (lining)and manholes.The project includes rehabilitation of 14,525 feet along Alton Avenue and easements crossing MacArthur Boulevard, Harbor Boulevard, Scenic Avenue, Hyland Avenue, Sunflower Avenue and Interstate 405 in the Cities of Santa Ana and Costa Mesa. Collections Facilities Justification This trunk line is unlined reinforced concrete piping. Physical and video assessments of this sewer indicate there is corrosion in the concrete and rehabilitation must be performed to prevent potential structural failure. The project budget is$54,620,000. The project's estimated construction contract cost is$31,920,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 1,051,179 1,257,464 1,744,080 2,245,994 6,837,090 13,135,807 Construction 31,923,979 31,923,979 Commissioning Close-out Contingency 9,560,214 9,560,214 Total 1,051,179 1,257,464 1,744,080 2,245,994 48,321,283 54,620,000 Reimbursable Costs: N/A Section 8-Page 12 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Greenville-Sullivan Trunk Improvements - 1-24 Project Category Collections Facilities Project Status: New Description This project will upsize the Greenville Trunk sewer to increase capacity.This will include installation of pipelines, replacement of manholes and rehabilitation of manholes. The project includes improvements of up to 16,000 feet of sewer along Sullivan Street, Edinger Ave, and Greenville Street in the City of Santa Ana. Collections Facilities Justification The need for this project was identified in the Collections Capacity Evaluation Study, Project No. PS15-06. These improvements will accommodate changing flow patterns due to planned development strategies. economic influences, and potential wet weather surcharges. The project budget is$48,600,000. The project's estimated construction contract cost is$28,410,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 371,204 775,804 964,663 1,274,817 8,302,424 11,688,912 Construction 28,407,587 28,407,587 Commissioning Close-out Contingency 8,503,501 8,503,501 Total 371,204 775,804 964,663 1,274,817 45,213,512 48,600,000 Reimbursable Costs: N/A Section 8-Page 13 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Edinger Pump Station Replacement - 11-33 Project Category Collections Facilities Project Status: Revised Description This project will replace the existing Edinger Pump Station to meet current building, electrical, and safety codes and to provide safer access to the pump station. The new pump station will be located at a new location near the existing pump station. The existing pump station will be demolished when the new one is complete. 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 electrical system does not comply with current codes. In addition,the existing pump station is located below grade, and to access the pump station for maintenance requires blocking off a pedestrian walkway, a bike lane and a traffic lane. The project budget has been decreased from$14,100,000 to$10,153,000. The reduced budget is a result of an updated cost estimate, start date and duration changes. The project's estimated construction contract cost is$5,250,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 102,369 275,917 392,052 392,053 452,111 1,715,234 3,329,736 Construction 5,254,963 5,254,963 Commissioning Close-out Contingency 1,568,301 1,568,301 Total 102,369 275,917 392,052 392,053 452,111 8,538,498 10,153,000 Reimbursable Costs: N/A Section 8-Page 14 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Slater Pump Station Rehabilitation - 11-34 Project Category Collections Facilities Project Status: Revised 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$25,300,000 to$26,622,000. The increased budget is the result of scope, start date and duration changes. The project's estimated construction contract cost is$14,468,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 600,988 951,228 998,988 1,046,699 4,244,777 7,842,680 Construction 14,462,168 14,462,168 Commissioning Close-out Contingency 4,317,152 4,317,152 Total 600,988 951,228 998,988 1,046,699 23,024,097 26,622,000 Reimbursable Costs: N/A Section 8-Page 15 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number SARI Rock Stabilizers Removal - 2-41-8 Project Category Collections Facilities Project Status: Revised Description This project involves the removal and disposal of approximately 22,000 tons of rip rap rocks from 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 mitigation and restoration work associated with temporary access roads. This project is approaching close-out. Collections Facilities Justification The Sanitation District had installed large rocks, called rip rap, on an emergency basis to protect its Santa Ana Regional Interceptor in the Santa Ana River downstream of Prado Dam until a better-protected new pipe could be constructed. The US Army Corps of Engineers permit that allowed the rock to be installed obligated the Sanitation District to remove the rock when the new pipe was completed. The project budget has been decreased from$6,860,000 to$4,860,000. The reduced budget is a result of an updated estimate to complete the work. The project's estimated construction contract cost is$2,810,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 205,126 205,126 Prelim Design 323,096 323,096 Design 442,518 442,518 Construction 3,581,162 3,581,162 Commissioning Close-out 18,019 17,797 35,816 Contingency 240,000 28,072 4,210 272,282 Total 4,809,921 45,869 4,210 4,860,000 Reimbursable Costs: 38,060 Section 8-Page 16 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Taft Branch Capacity Improvements - 2-49 Project Category Collections Facilities Project Status: Revised Description This project will upsize the Taft Branch sewer from Santiago Blvd and Meats Ave to Taft Ave and Glassell St. This will include replacement of nearly 10,000 feet of pipe and associated manholes along Meats Ave,Tustin Street, and Taft Avenue in the City of Orange. Collections Facilities Justification The need for this project was identified in the Collections Capacity Evaluation Study, Project No. PS15-08. 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$8,130,000 to$14,000,000. The increased budget is needed based on an updated estimate to complete the work. The project's estimated construction contract cost is$9,000,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 156,040 156,040 Prelim Design 8,751 314,739 225,793 549,283 Design 2,697 498,989 738,077 13,085 1,252,848 Construction 4,589,568 4,920,865 563,960 10,074,393 Commissioning Close-out 35,879 35,879 Contingency 120,000 1,811,557 1,931,557 Total 167,488 314,739 724,782 738,077 4,722,653 4,920,865 2,411,396 14,000,000 Reimbursable Costs: N/A Section 8-Page 17 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Newhope-Placentia Trunk Grade Separation Replacement - 2-65 Project Category Collections Facilities Project Status: Continuing Description This project was needed to replace a section of the Sanitation District's Newhope-Placentia Trunk in State College Boulevard between Orangethorpe and Commonwealth to accommodate a railroad grade separation project being done by the City of Fullerton. The work has been completed, but a repair of a construction defect still needs to be completed. Collections Facilities Justification The existing sewer needed 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 also accommodated a capacity increase. The project budget is$4,300,000.The project's estimated construction contract cost is$3,570,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 103,062 103,062 Prelim Design 64,933 64,933 Design 313,041 313,041 Construction 3,697,774 3,697,774 Commissioning Close-out 17,711 17,711 Contingency 92,123 11,357 103,480 Total 4,196,520 92,123 11,357 4,300,000 Reimbursable Costs: N/A Section 8-Page 18 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Newhope-Placentia Trunk Replacement - 2-72 Project Category Collections Facilities Project Status: Continuing Description This project will increase the size of approx. 35,000 feet of the Newhope-Placentia Trunk 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 Justification 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 project budget is$112,000,000. The project's estimated construction contract cost is$80,810,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 132,601 132,601 Prelim Design 5,390,814 5,390,814 Design 4,712,611 4,712,611 Construction 67,865,140 18,441,383 5,316,264 91,622,787 Commissioning Close-out 70,758 359,282 18,331 448,371 Contingency 4,603,402 5,089,414 1 9,692,816 Total 78,171,924 18,441,383 10,278,948 5,107,745 112,000,000 Reimbursable Costs: 2,180,000 Section 8-Page 19 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Yorba Linda Dosing Station Installation - 2-73 Project Category Collections Facilities Project Status: Revised Description This project will abandon the Yorba Linda Pump Station and downstream force main. Gravity sewers located in Yorba Linda Boulevard will also be reconfigured to improve access to the facilities for maintenance. Flows which are currently being pumped by the Yorba Linda Pump Station east will be conveyed by gravity through the newly upsized Newhope-Placentia Trunk located in State College Boulevard to the west. After abandonement,the site will be re-purposed with the installation of an odor control dosing station. This station will dose odor reducing chemicals into the Newhope-Placentia sewer that follows State College Boulevard and Newhope Avenue to Reclamation Plant No. 1. Collections Facilities Justification The Yorba 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. Costly rehabilitation would be necessary for the pump station to remain in service. The odor control dosing station will provide a permanent location to strategically assist with odor control reduction. Currently,weekly to monthly caustic chemical dumps are sent into the system through sewer manholes. The project budget has been increased from$10,800,000 to$14,080,000. The increased budget is the result of scope, start date and duration changes. The project's estimated construction contract cost is$7,650,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 324,040 654,643 3,168,188 4,146,871 Construction 7,646,996 7,646,996 Commissioning Close-out Contingency 2,286,133 2,286,133 Total 324,040 654,643 13,101,317 14,080,000 Reimbursable Costs: N/A Section 8-Page 20 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Beach Relief Trunk/Knott Interceptor/Miller Holder Trunk Rehabilitation - 3-60 Project Category Collections Facilities Project Status: Revised Description This project will rehabilitate a portion of the Beach Relief Trunk, Knott Interceptor and Miller Holder Trunk sewers located in the City of Buena Park. The project includes repairs over 37,000 feet of sewer pipe and manholes along Artesia Boulevard, Tulare Steet, Kingman Avenue, Franklin Street, Rostrata Avenue, Knott Avenue, Caballero Boulevard, Dodds Avenue and easements in the City of Buena Park. Collections Facilities Justification Physical and video assessments of this sewer indicate there is corrosion in the concrete and rehabilitation must be performed to prevent a risk of structural failure. The project budget has been increased from$20,910,000 to$35,132,000. The increased budget is the result of being combined with a nearby sewer rehabilitaiton project. The project's estimated construction contract cost is$20,540,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 609,677 1,145,038 1,237,532 5,457,885 8,450,132 Construction 20,536,360 20,536,360 Commissioning Close-out Contingency 6,145,508 6,145,508 Total 609,677 1,145,038 1,237,532 32,139,753 35,132,000 Reimbursable Costs: N/A Section 8-Page 21 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Westminster Blvd Force Main Replacement - 3-62 Project Category Collections Facilities Project Status: Revised 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 existing siphons near Rancho Rd will be slip lined to extend the force main to terminate at an existing discharge structure. Collections Facilities Justification The pump station currently operates with just one of two force mains, a 42-inch 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 project budget has been decreased from$54,000,000 to$44,000,000. The reduced budget is a result of an updated estimate to complete the work. The project's estimated construction contract cost is$27,740,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 199,656 199,656 Prelim Design 4,103,528 4,103,528 Design 3,035,366 3,035,366 Construction 3,324,263 11,561,567 11,582,220 4,820,178 31,288,228 Commissioning Close-out 190,848 190,848 Contingency 4,692,600 489,774 5,182,374 Total 10,662,813 11,561,567 11,582,220 9,703,626 489,774 44,000,000 Reimbursable Costs: N/A Section 8-Page 22 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Rehabilitation of Western Regional Sewers - 3-64 Project Category Collections Facilities Project Status: Revised Description This project will replace or rehabilitate a portion of the sewers and manholes located in Sanitation District's northwestern service area. The work will be completed under three construction contracts. The Orange Western Sub-Trunk Rehabilitation covers approximately 13,000 feet of pipe, the Los Alamitos Trunk Sewer Rehabilitation covers approximately 34,000 feet, and the Cypress Trunk Sewer Rehabilitation covers approximately 32,000 feet. These sewers are located primarily within public rights of way in the Cities of Seal Beach, Los Alamitos, Cypress,Anaheim, Buena Park, and La Palma. Collections Facilities Justification Most of the sewers were constructed in late 1950's and early 1960's for an estimated life of 40 to 50 years. Inspections have identified significant defects and the joints that allow significant infiltration of groundwater into the sewers. The project budget has been decreased from$202,069,000 to$70,000,000. The reduced budget is a result of changes in the project elements identified from recent engineering efforts.The project's estimated construction contract cost is$30,510,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 489,084 489,084 Prelim Design 12,815,742 38,251 12,853,993 Design 4,308,181 1,531,889 1,798,577 642,659 8,281,306 Construction 44,010 3,641,396 9,601,865 9,301,236 10,997,595 3,714,130 37,300,232 Commissioning Close-out 41,742 59,267 64,962 7,701 69,961 243,633 Contingency 500,000 1,388,960 1,395,861 56,857 7,490,074 10,831,752 Total 17,698,759 5,711,536 12,848,669 11,404,718 11,062,153 11,274,165 70,000,000 Reimbursable Costs: N/A Section 8-Page 23 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Interstate 405 Widening Project Impacts on OCSD Sewers - 3-66 Project Category Collections Facilities Project Status: Revised Description This project will provide reimbursement for staff support for the realignment/conflicts of District facilities as part of Orange County Transportation's proposed widening of the 1-405 Freeway between State Route 73 and the 1-605 Freeway. Collections Facilities Justification Widening of the 1-405 Freeway will require relocation of Sanitation District facilities. Agreements between the Sanitation District and the Orange County Transportation Authority provide for reimbursements up to$427,151. The project budget has been decreased from$528,000 to$250,000. The reduced budget is a result of a reduction in the extent of Sanitation District facilities impacted by the freeway widening project.This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 99,738 99,738 Construction 30,117 8,630 3,467 42,214 Commissioning Close-out 763 2,173 9,596 358 12,890 Contingency 7,181 24,229 49,039 14,709 95,158 Total 137,799 35,032 62,102 15,067 250,000 Reimbursable Costs: 112,201 Section 8-Page 24 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Seal Beach Pump Station Replacement - 3-67 Project Category Collections Facilities Project Status: Continuing Description This project will replace the existing Seal Beach Pump Station on 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 project budget is$78,900,000. The project's estimated construction contract cost is$43,930,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 218,175 218,175 Prelim Design 284,133 3,010,614 3,294,747 Design 1,669 416,814 2,093,648 1,765,440 381,961 4,659,532 Construction 181,413 7,783,320 21,924,142 22,557,307 52,446,182 Commissioning 879,139 879,139 Close-out 230,865 230,865 Contingency 597,173 16,574,187 17,171,360 Total 503,977 3,427,428 2,093,648 1,946,853 8,762,454 21,924,142 40,241,498 78,900,000 Reimbursable Costs: N/A Section 8-Page 25 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Los Alamitos Sub-Trunk Extension - 3-68 Project Category Collections Facilities Project Status: Revised 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 project budget has been increased from$66,000,000 to$84,124,000. The increased budget is the result of an estimated longer project duration. The project's estimated construction contract cost is$52,000,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 16,568,627 16,568,627 Construction 51,995,772 51,995,772 Commissioning Close-out Contingency 15,559,601 15,559,601 Total 84,124,000 84,124,000 Reimbursable Costs: N/A Section 8-Page 26 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Crystal Cove Pump Station Rehabilitation - 5-66 Project Category Collections Facilities Project Status: Revised 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 vicinity of the pump station, located in Pacific Coast Highway, will also be assessed and rehabilitated as needed. Collections Facilities Justification The Crystal Cove 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 decreased from$17,900,000 to$13,200,000. The reduced budget is a result of scope, start date and duration changes.The project's estimated construction contract cost is$7,160,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 27,072 307,639 515,709 3,030,462 3,880,882 Construction 7,156,498 7,156,498 Commissioning Close-out Contingency 2,162,620 2,162,620 Total 27,072 307,639 515,709 12,349,580 13,200,000 Reimbursable Costs: N/A Section 8-Page 27 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Bay Bridge Pump Station Replacement - 5-67 Project Category Collections Facilities Project Status: Revised Description This project will replace the existing Bay Bridge Pump Station to meet current building, electrical, and safety codes and the Sanitation District's design standards. The associated force mains will also be replaced. 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. In addition,the existing pumping station does not comply with the current electrical and safety codes. The force mains have reached the end of their expected life and are at risk of failure if not addressed. The project budget has been increase from$64,000,000 to$74,000,000. The project's estimated construction contract cost is $38,120,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 271,914 271,914 Prelim Design 2,572,773 2,684,572 423,691 5,681,036 Design 144,626 3,000,000 722,261 2,230,775 1,045,444 7,143,106 Construction 1,774 4,788,843 19,378,574 21,954,278 46,123,469 Commissioning 5,840 190,616 307,689 504,145 Close-out 172,379 172,379 Contingency 58,630 286,114 13,759,207 14,103,951 Total 2,991,087 5,684,572 1,145,952 2,289,405 6,126,241 19,569,190 36,193,553 74,000,000 Reimbursable Costs: N/A Section 8-Page 28 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Newport Beach Pump Stations Pressurization Improvements - 5-68 Project Category Collections Facilities Project Status: Revised Description This project will address pressurization of the air in wet wells of the Crystal Cover,A-Street, 15th Street, Lido, Bitter Point, and Rocky Point Pump Stations. It will also add facilities to accommodate chemical addition at the 15th Street Pump Station to reduce generation of hydrogen sulfide in downstream forcemains. Collections Facilities Justification The existing wet wells are not vented to prevent the pressurization of the air space when wet well levels rise. The resulting pressure can release foul air from upstream manholes and can blow out water seals in p-traps draining to the wet well. The loss of the water seal can result in hazardous gasses accumulating in the pump station building. The project budget has been increased from $4,066,000 to $4,300,000. The increased budget is needed based on an updated estimate to complete the work . The project's estimated construction contract cost is$1,830,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 115,577 115,577 Prelim Design 1,326 318,926 320,252 Design 59,587 343,555 173,084 576,226 Construction 1,759,971 982,764 2,742,735 Commissioning Close-out 37,396 37,396 Contingency 64,500 195,360 247,954 507,814 Total 116,903 378,513 343,555 1,997,555 1,215,520 247,954 4,300,000 Reimbursable Costs: N/A Section 8- Page 29 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number District 6 Trunk Sewer Relief - 6-17 Project Category Collections Facilities Project Status: Revised Description This project increases the capacity, rehabilitates and performs access improvements for OCSD 6 Trunk sewer.The existing 3,700 feet of 12-inch through 18-inch pipeline runs near Pomona Ave to Newport Boulevard near 15th St, 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. This project is approaching close-out. Collections Facilities Justification The need for this project was identified in the January 2006 Draft Strategic Plan Update. This project is needed to reduce the potential for surcharging and sewer spills due to a 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 project budget has been decreased from$7,965,000 to$7,250,000. The reduced budget is a result of an updated estimate to complete the work. The project's estimated construction contract cost is$4,200,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 70,429 70,429 Prelim Design 442,648 442,648 Design 936,967 936,967 Construction 5,676,188 5,676,188 Commissioning 1,435 1,435 Close-out 21,195 21,195 Contingency 71,102 30,036 101,138 Total 7,219,964 30,036 7,250,000 Reimbursable Costs: N/A Section 8-Page 30 Go to Table of Contents CIP Project Detail Sheets Project Name&Number MacArthur Pump Station Rehabilitation - 7-63 Project Category Collections Facilities Project Status: Revised Description The MacArthur Pump Station is located west of MacArthur Boulevard and north of Jamboree Road in the City of Newport Beach.This project includes rehabilitation of the existing civil structures such as the wet well and underground electrical and pump room. Replacement of mechanical equipment(pumps,valves, piping, etc.)and electrical and instrumentation equipment is also included. Collections Facilities Justification The pump station was built in 1960 and the internal equipment and supporting components were replaced in 1989. The wet well is an original structure and is not coated or lined to prevent corrosion of the concrete from the hazardous sewer gases. Corrosion is also present on the existing mechanical equipment. The electrical equipment is outdated and obtaining replacement electrical parts is becoming increasingly difficult. At the completion of this project the pump station will follow the latest applicable electrical and safety codes. The project budget has been increased from$9,151,000 to$9,800,000. The increased budget is the result of start date and duration changes. The project's estimated construction contract cost is$5,330,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 20,146 228,927 383,760 2,255,090 2,887,923 Construction 5,325,439 5,325,439 Commissioning Close-out Contingency 18,646 211,889 215,279 1,140,824 1,586,638 Total 38,792 440,816 599,039 8,721,353 9,800,000 Reimbursable Costs: N/A Section 8-Page 31 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Main Street Pump Station Rehabilitation - 7-64 Project Category Collections Facilities Project Status: Revised Description The Main Street Pump Station is located on Main Street north of the John Wayne Airport, in the City of Irvine. This project includes the rehabilitation of the existing civil structures such as the flow diversion box, east and west wet well and the above ground electrical room and below grade pump room. Replacement of the mechanical equipment(pumps, valves, piping, etc.)and electrical and instrumentation equipment is also included. Collections Facilities Justification The original pump station (west side)was constructed in 1985 and the east side of the pump station was added in 2001. Although the pump station is performing well the piping throughout and the pumps on the west side are nearing the end of their useful life. The supporting on-site civil structures such as the flow diversion structure is suffering from corrosion due to high levels of corrosive gases. Corrosion also persists in the wet wells. The pump station structure needs seismic retrofitting to remain reliable. The project budget has been decreased from$40,660,000 to$39,450,000. The reduced budget is a result of scope, start date and duration changes. The project's estimated construction contract cost is$21,430,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 11,619,878 11,619,878 Construction 21,427,456 21,427,456 Commissioning Close-out Contingency 6,402,666 6,402,666 Total 39,450,000 39,450,000 Reimbursable Costs: N/A Section 8-Page 32 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Gisler-Red Hill Interceptor and Baker Force Mains Rehabilitation - 7-65 Project Category Collections Facilities Project Status: Revised Description This project will rehabilitate the Gisler Redhill Interceptor from a manhole near the Main Street Pump Station to the College Avenue Pump Station and also the two 42-inch Baker forcemains from the Main Street Pump Station. The project is expected to line and/or repair 30 manholes, approximately 15,000 feet of gravity sewer, and approximately 6,000 feet of forcemain along with replacing supporting valving and piping adjacent and inside the Main Street Pump Station. Collections Facilities Justification Condition assessments completed in 2015 and in 2017 on the Gisler Redhill Interceptor indicate corrosion in the majority of the manholes from the cover to the base as well as multiple cracks in the VCP piping. The Baker forcemains have corosion and liner failures due to the corrosive gas migration from the wet wells.There is also valve vault settlment on the forcemains. The project budget has been increased from$14,800,000 to$21,000,000. The increased budget is the result of combining the force main rehabilitation work of the Main Street Pump Replacement and Force Main Rehabilitation, Project No. 7-67, into this project. The project's estimated construction contract cost is$13,000,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 95,077 47,742 142,819 Prelim Design 645,646 53,386 699,032 Design 755 130,017 1,381,660 109,506 1,621,938 Construction 328,076 13,346,723 781,487 14,456,286 Commissioning Close-out 57,268 22,089 79,357 Contingency 1,470,000 2,530,568 4,000,568 Total 95,832 823,405 1,763,122 14,983,497 3,334,144 21,000,000 Reimbursable Costs: N/A Section 8-Page 33 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Sunflower and Red Hill Interceptor Repairs - 7-66 Project Category Collections Facilities Project Status: Revised Description The project will repair PVC liner failures within a 6,000 foot section of the Sunflower and Red Hill Interceptors. This will require live entry,temporary diversions, and bypass pumping.Also, hydraulic adjustments will be made to artificially keep the low flows above the area of exposed concrete at the lower section of the pipe. Collections Facilities Justification An assessment of the plastic lining was performed on the upper reaches of the Sunflower and Red Hill Interceptors. The liner has failed in many locations allowing corrosion of the concrete substrate which could lead to structural failure. There is also additional concrete corrosion below the 270 degree plastic lining due to the flow depth being lower than the liner. The project budget has been decreased from$5,500,000 to$4,700,000. The reduced budget is a result of an updated estimate to complete the work. The project's estimated construction contract cost is$2,500,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 20,451 20,451 Prelim Design 64,743 64,743 Design 142,406 323,410 53,971 519,787 Construction 35,607 2,466,106 846,766 3,348,479 Commissioning Close-out 2,246 22,825 25,071 Contingency 30,871 399,617 290,981 1 721,469 Total 227,600 359,017 2,553,194 1,269,208 290,981 4,700,000 Reimbursable Costs: N/A Section 8-Page 34 Go to Table of Contents CIP Project Detail Sheets Project Name&Number MacArthur Force Main Improvements - 7-68 Project Category Collections Facilities Project Status: Revised Description The MacArthur Pump Station is located west of MacArthur Boulevard and north of Jamboree Road in the City of Newport Beach.This project includes construction of approximately 2,100 feet of new forcemain and rehabilitation of the existing forcemain. Collections Facilities Justification The existing forcemain was constructed in 1960 and is nearing the end of its useful life. The pump station is served by a single forcemain which makes condition assessment and maintenance difficult. The construction of a parallel forcemain will increase reliability and lessen the impact on the surrounding community during routine maintenance and assessment efforts. The project budget has been increased from$2,385,000 to$2,468,000. The increased budget is the result of an estimated longer project duration. The project's estimated construction contract cost is$1,440,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 45,631 54,349 74,089 92,630 115,968 210,951 593,618 Construction 149,009 1,293,665 1,442,674 Commissioning Close-out Contingency 431,708 431,708 Total 45,631 54,349 74,089 92,630 264,977 1,936,324 2,468,000 Reimbursable Costs: N/A Section 8-Page 35 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number North Trunk Improvements - 7-69 Project Category Collections Facilities Project Status: New Description This project will upsize a portion of the North Trunk System to increase capacity. The project includes improvements of up to 6,400 feet of sewer and manholes along Yorba Street and 17th Street in the City of Tustin and Unincorporated Orange County. Collections Facilities Justification The need for this project was identified in the Collections Capacity Evaluation Study, Project No. PS15-08. These improvements will accommodate changing flow patterns due to planned development strategies, economic influences, and potential wet weather surcharges. The project budget is$9,200,000. The project's estimated construction contract cost is$5,370,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 201,716 244,846 365,468 1,398,305 2,210,335 Construction 5,371,817 5,371,817 Commissioning Close-out Contingency 1,617,848 1,617,848 Total 201,716 244,846 365,468 8,387,970 9,200,000 Reimbursable Costs: N/A Section 8-Page 36 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Ocean Outfall System Rehabilitation - J-117 Project Category Ocean Outfall Systems Project Status: Continuing Description This project will rehabilitate the Ocean Outfall Booster Station at Plant No. 2, 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 outfall. The Plant Water Pump Station will replace the �� existing plant water pump station. The project includes the rehabilitation of the 84-inch and 120-inch interplant effluent lines between Plant No. 1 and Plant No. 2 completed in 2018. 1: Ocean Outfall Systems 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,which was completed in 2018. Diversions of some Plant No. 2 effluent to the Orange County Water District's Groundwater Replenishment System (GWRS)will result in outfall 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 budget is$166,000,000. The project's estimated construction contract cost is$105,110,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 287,945 287,945 Prelim Design 4,159,490 4,159,490 Design 9,174,473 9,174,473 Construction 45,355,870 26,108,350 23,201,508 20,254,902 15,053,745 3,638,430 133,612,805 Commissioning 476,869 276,042 1,802,328 2,235,271 231,963 10,644 5,033,117 Close-out 291,029 2,941,669 975,781 4,208,479 Contingency 1,351,608 6,702,242 1,469,842 9,523,692 Total 59,745,674 26,108,350 23,477,550 22,057,230 18,640,624 13,514,304 2,456,268 166,000,000 Reimbursable Costs: 14,000,000 Section 8-Page 37 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Process Control Systems Upgrades - J-120 Project Category Information Management Systems Project Status: Revised Description This project will upgrade the existing Supervisory Control and Data Acquisition (SCADA)Systems for the treatment plants and pump stations based on the vendor system selected as part of the Process Control Systems Upgrades Study, Project No. SP-196. This project will replace existing CD obsolete human-machine-interface systems, databases and software programs including trending, diagnostic data, monitoring, control, alarming and reporting. This project will also develop F11111111 programming standards, templates, methodologies, tools, and databases and will develop standards for networking and control panels. Information Management Systems Justification The existing human-machine-interface system and associated SCADA subsystems are obsolete.The existing software has a limited customer-installed base and technical expertise for support and source code modifications has become scarce. The reliability and maintainability of the systems are critical to maintaining regulatory compliance for both the collections system and the treatment plants. The project budget has been decreased from$46,000,000 to$33,000,000. The reduced budget is a result of changes in the project elements identified from recent engineering efforts. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 10,000 10,000 Construction 4,987,341 6,238,182 6,238,179 6,337,990 2,084,283 25,885,975 Commissioning Close-out 44,866 44,866 Contingency 7,059,159 7,059,159 Total 10,000 4,987,341 6,238,182 6,238,179 6,337,990 9,188,308 33,000,000 Reimbursable Costs: N/A Section 8-Page 38 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Digester Gas Facilities Replacement - J-124 Project Category Utility Systems Project Status: Revised Description This project will replace the low and high pressure digester gas facilities at Plant No. 1 and No. 2 to meet current and future needs such as projected gas production and Air Quality Management District and National Fire Protection Association regulations.The Plant No. 1 work includes replacement of all compressors and flares and rehabilitation of the existing gas compressor building. The Plant No. 2 work includes construction of a new gas compressor building, and replacement of the flares and gas compressors. 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 project budget has been increased from$156,500,000 to$173,000,000. The increased budget is needed based on an updated estimate to complete the work. The project's estimated construction contract cost is$116,840,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 281,020 281,020 Prelim Design 5,935,195 5,935,195 Design 2,218,560 4,282,106 2,400,210 156,784 9,057,660 Construction 390,796 23,318,381 34,415,409 35,134,370 46,250,194 139,509,150 Commissioning 787,117 956,868 2,070,103 3,814,088 Close-out 12,139 734,333 746,472 Contingency 945,714 181,287 12,529,415 13,656,416 Total 8,446,913 4,282,106 3,736,720 23,656,452 35,202,526 36,091,238 61,584,045 173,000,000 Reimbursable Costs: N/A Section 8-Page 39 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Safety Improvements Program - J-126 Project Category Process Related Special Projects Project Status: Revised 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 is being 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 budget has been decreased from$19,000,000 to$16,000,000. The reduced budget is a result of an updated estimate to complete the work. The project's estimated construction contract cost is$7,860,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 294,080 294,080 Prelim Design 614,853 24,684 639,537 Design 3,246,528 53,703 3,300,231 Construction 10,434,536 430,293 10,864,829 Commissioning Close-out Contingency 83,356 817,955 13 901,324 Total 14,673,352 1,326,635 13 16,000,000 Reimbursable Costs: N/A Section 8-Page 40 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Natural Gas Pipelines Replacement at Plant Nos. 1 and 2 - J-127 Project Category Utility Systems Project Status: Revised Description This project will rehabilitate the natural gas pipelines at Plants Nos. 1 and 2.This includes the replacement of aging metallic pipelines, risers and rehabilitation of valve vaults and piping penetations. 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 valve vaults having flooding concerns as well as corrosion issues.This project will ensure safe, reliable operation of the natural gas systems. The project budget has been increased from$1,310,000 to$1,610,000. The increased budget is needed based on an updated estimate to complete the work. The project's estimated construction contract cost is$630,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 86,463 86,463 Prelim Design Design 376,375 21,214 397,589 Construction 858,590 858,590 Commissioning Close-out 34,497 34,497 Contingency 2,936 124,191 105,734 232,861 Total 465,774 1,038,492 105,734 1,610,000 Reimbursable Costs: N/A Section 8-Page 41 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Project Management Information System - J-128 Project Category Information Management Systems Project Status: Revised Description This project is implementing a new Project Management Information System to replace obsolete software previously used to serve business processes related to management of the capital improvement program. ID P111111 Information Management Systems Justification The software application previously used to manage construction contracts is no longer functional. 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 project budget has been decreased from$4,000,000 to$2,280,000. The reduced budget is a result of an updated estimate to complete the work. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 129,322 129,322 Prelim Design 450 450 Design 1,277,777 306,250 14,700 1,598,727 Construction 337 337 Commissioning Close-out Contingency 551,164 551,164 Total 1,407,886 306,250 565,864 2,280,000 Reimbursable Costs: N/A Section 8-Page 42 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Laboratory Rehabilitation at Plant No. 1 - J-133 Project Category Support Facilities Project Status: Revised Description This project will rehabilitate the existing Laboratory building at Plant No. 1 to meet current building, electrical and safety codes and to incorporate recommendations from the Seismic Evaluation Study. Amenities, utilities, and equipment will be upgraded and working spaces will be re-purposed • and optimized to meet the existing needs of the Laboratory. This project also includes temporary Laboratory service relocations since it will need to be shut down during rehabilitation. PSI Support Facilities Justification The Laboratory was built in 1989 and has not been rehabilitated. The laboratory does not meet various building codes. The existing utilities, equipment and amenities are at the end of their useful lives and are in need of frequent replacements or temporary fixes. Testing needs for various permit compliance items have increased since 1989 and the laboratory is in need of significant modifications so it can be modernized to efficiently meet these requirements. The Seismic Evaluation of Structures at Plant Nos. 1 and 2 study that was completed in 2020 identified seismic risks associated with this building. These risks need to be addressed to ensure the reliability and safety of this building. The project budget has been increased from$15,000,000 to$44,200,000. The increased budget is the result of a revised cost estimate that included further detail and an increased overall Project duration. The project's estimated construction contract cost is$28,217,046. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 671,904 741,030 900,712 5,088,646 7,402,292 Construction 28,217,046 28,217,046 Commissioning Close-out Contingency 8,580,662 8,580,662 Total 671,904 741,030 900,712 41,886,354 44,200,000 Reimbursable Costs: N/A Section 8-Page 43 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Central Generation Engine Overhauls at Plant No. 1 and 2 - J-135 Project Category Utility Systems Project Status: New Description This project will overhaul six of the Central Generation Facility Gas Engines at Plant No. 1 and 2. This work will also include the replacement of other miscellaneous engine related components such as the electrical generator bearings and heat exchangers. Utility Systems Justification Complete overhauls of Central Generation Facility Gas Engines are needed when they reach a run-time of 120,000 hours. Currently, two of the eight engines are being overhauled. This work is required to ensure reliable operation of the Central Generation Facility at both treatment plants. The project budget is$26,000,000. The project's estimated construction contract cost is$20,000,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 216,576 216,576 Construction 75,151 1,521,979 6,627,566 9,492,879 3,562,447 449,090 21,729,112 Commissioning Close-out Contingency 4,054,312 4,054,312 Total 291,727 1,521,979 6,627,566 9,492,879 3,562,447 4,503,402 26,000,000 Reimbursable Costs: N/A Section 8-Page 44 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Power Building Structural Seismic Improvements at Plant No. 1 and 2 - J-136 Project Category Utility Systems Project Status: New Description The buildings at Plant No. 1 and 2 that house electrical systems will undergo structural and geotechnical (soil)improvements to reduce the risk of failure during a significant seismic event. At Plant No. 1,this includes the 12 kV Service Center, Central Power Generation, and Power Buildings 2 and 4. At Plant No. 2,this includes the Boiler Building, Headworks Power, Headworks Standby Power, Central Power Generation, and Power Buildings B, C, D. Utility Systems Justification The Seismic Evaluation of Structures at Plant Nos. 1 and 2 study that was completed in 2020 identified seismic risks associated with these buildings.These risks need to be addressed to ensure the reliability and safety of this building. The project budget is$7,080,000. The project's estimated construction contract cost is$3,490,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 239,060 296,220 304,013 308,877 1,395,009 2,543,179 Construction 3,486,906 3,486,906 Commissioning Close-out Contingency 1,049,915 1,049,915 Total 239,060 296,220 304,013 308,877 5,931,830 7,080,000 Reimbursable Costs: N/A Section 8-Page 45 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number GWRS Final Expansion Coordination - J-36-2 Project Category Water Management Projects Project Status: Continuing Description This project is 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 does not address modification of Sanitation District Facilities included in other projects such as the Headworks Modifications at Plant No.2 for GWRS Final Expansion, Project No. P2-122, and the Ocean Outfall Rehabilitation Project No. J-11713. 0! Water Management 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. The project budget is$1,132,000.This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design 79,091 79,091 Design 242,720 242,720 Construction 113,456 243,477 264,388 170,265 791,586 Commissioning Close-out 17,325 17,325 Contingency 1,278 1,278 Total 435,267 243,477 265,666 187,590 1,132,000 Reimbursable Costs: N/A Section 8-Page 46 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Electrical Power Distribution System Improvements - J-98 Project Category Utility Systems Project Status: Revised Description This project provides various electrical distribution system improvements at Plant No. 1 and No. 2 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 electrical equipment at the end of its useful life, modifying the electrical system configurations to improve reliability and support maintenance, replacing electrical cables and equipment that are not properly sized, and adding surge protection to protect equipment. This project will also implement a load shedding scheme at Plant No. 1 along with modifications for arc flash mitigation. Utility Systems Justification 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 No. 1 and No. 2 have aged and reliability and safety philosophy has improved, the existing electrical systems require improvements and replacement to maintain electrical system reliability and improved safety. The project budget has been decreased from$30,000,000 to$26,500,000. The reduced budget is a result of an updated estimate to complete the work. The project's estimated construction contract cost is$12,380,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 229,161 229,161 Prelim Design 139,022 891,568 636,195 29,548 1,696,333 Design 7,999 882,975 1,391,025 209,529 2,491,528 Construction 1,848,965 4,472,725 5,691,997 4,656,163 16,669,850 Commissioning 301,365 417,034 410,735 1,129,134 Close-out 82,277 82,277 Contingency 4,680 48,750 48,750 251,495 3,848,042 4,201,717 Total 380,862 1,823,293 2,075,970 2,339,537 4,774,090 6,109,031 8,997,217 26,500,000 Reimbursable Costs: N/A Section 8-Page 47 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number 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 • Ordinance No. OCSD-52, or by using Sanitation District staff. This budget request is intended to cover active small construction projects and those that will be identified and created through Fiscal Year 2024/2025. These small projects are individually managed within the Small Construction PSI Projects Program budget. 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, $33,000,000 is allocated for small construction projects active as of April 1, 2020. The remainder is for not-yet-identified projects. The project budget has been increased from $53,250,000 to$65,000,000.The increased budget is needed to accommodate a larger volume of small projects that are being generated by the Sanitation District's Asset Management Program. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 270,861 270,861 Prelim Design 29,297 29,297 Design 3,421,263 1,426,045 156,903 5,004,211 Construction 8,766,718 2,921,371 6,416,111 5,135,912 1,681,283 281,117 25,202,512 Commissioning 7,748 2,421 10,169 Close-out 16,570 44,233 24,657 49,738 6,232 141,430 Contingency 1,598,805 4,046,008 3,507,165 3,951,202 3,908,647 3,197,039 14,132,654 34,341,520 Total 14,111,262 8,440,078 10,104,836 9,136,852 5,596,162 3,478,156 14,132,654 65,000,000 Reimbursable Costs: N/A Section 8-Page 48 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Information Technology Capital Program - M-MC-IT Project Category Information Management Systems Project Status: Continuing Description 01 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. 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. The project budget is$10,000,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 150,000 150,000 Prelim Design 4,392 4,392 Design 715,103 715,103 Construction 660,547 2,664,360 615,440 169,150 579,170 210,957 4,899,624 Commissioning Close-out Contingency 165,293 397,340 397,342 1 397,340 397,340 403,698 1 2,072,528 4,230,881 Total 1,695,335 3,061,700 1,012,782 566,490 976,510 614,655 2,072,528 10,000,000 Reimbursable Costs: N/A Section 8-Page 49 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Research Program - M-RESEARCH Project Category Research Project Status: Continuing Description This budget provides funds for research projects. Specific projects will be identified and developed to be funded from this budget. This budget request is intended to cover currently-active research projects and those that will be identified and created through Fiscal Year 2024/2025. 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, $6,400,000 is allocated for Research Projects active as of April 1, 2020. The remainder is for not-yet-identified projects. The project budget is$8,500,000.The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 1,694,017 115,035 1,809,052 Prelim Design 138,979 184,253 144,590 467,822 Design 256 256 Construction 3,176 3,176 Commissioning Close-out 1,088 1,088 Contingency 315,815 631,932 584,741 569,255 569,255 578,364 2,969,244 6,218,606 Total 2,153,331 931,220 729,331 569,255 569,255 578,364 2,969,244 8,500,000 Reimbursable Costs: N/A Section 8-Page 50 Go to Table of Contents CIP Project Detail Sheets Project Name&Number 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. • PSI 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 project budget is$15,622,000. The project's estimated construction contract cost is$4,010,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 678,145 678,145 Prelim Design 63 28,755 28,818 Design 318,636 114,675 101,321 134,603 149,986 179,565 1,323,175 2,321,961 Construction 3,034,034 423,281 219,310 85,428 68,684 87,905 718,839 4,637,481 Commissioning 1,057 235 11,503 12,795 Close-out 59 2,397 288 2,744 Contingency 296,948 875,615 757,754 750,673 729,702 738,420 3,790,944 1 7,940,056 Total 4,328,883 1,442,561 1,089,947 973,101 948,660 1,005,890 5,832,958 15,622,000 Reimbursable Costs: N/A Section 8-Page 51 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Planning Studies Program - M-STUDIES Project Category Strategic&Master Planning Project Status: Continuing Description 11 This budget provides funds for planning studies. This budget request is intended to cover currently- `' active planning studies and those that will be identified and created through Fiscal Year 2024/2025. These planning studies are individually managed within the Planning Studies Program budget. P0 Strategic & Master Planning Justification Planning studies provide comprehensive capital program planning for OCSD 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, $5,800,000 is allocated for planning studies active as of April 1, 2020. The remainder is for not-yet-identified projects. The project budget is$28,652,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 13,367,920 408,005 13,775,925 Prelim Design 2,139,559 3,556,344 428,829 6,124,732 Design 34,937 4,082 39,019 Construction 5,071 237 5,308 Commissioning Close-out 5,273 18,314 34,793 514 58,894 Contingency 1,282,954 1 1,831,788 1,024,905 568,426 544,808 553,525 2,841,716 1 8,648,122 Total 16,835,714 5,818,770 1,488,527 568,940 544,808 553,525 2,841,716 28,652,000 Reimbursable Costs: N/A Section 8-Page 52 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Sludge Dewatering and Odor Control at Plant No. 1 - P1-101 Project Category Solids Handling &Digestion Project Status: Revised Description This project has constructed 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.This project is in close-out. Solids Handling & Digestion Justification This project was 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 had reached the end of useful life and are in need of replacement.This project has increased 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 decreased from$199,500,000 to$197,000,000. The reduced budget is a result of an updated estimate to complete the work. The project's estimated construction contract cost is$143,930,000. The facilities constructed by this project are now in service and will have no further impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 330,031 330,031 Prelim Design 6,904,058 6,904,058 Design 11,414,244 11,414,244 Construction 171,057,997 171,057,997 Commissioning 5,231,494 5,231,494 Close-out 668,153 241,297 909,450 Contingency 497,604 655,122 1,152,726 Total 196,103,581 896,419 197,000,000 Reimbursable Costs: N/A Section 8-Page 53 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Headworks Rehabilitation at Plant No. 1 - P1-105 Project Category Headworks Project Status: Continuing Description This project will rehabilitate and upgrade Plant No. 1 Headworks. Major 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. New structures to be constructed as part of this project include Grit Pump Station, Grit Handling Building, Headworks Odor Control Facility, Electrical Buildings, and other support systems. N I Headworks Justification The purpose of the work is to rehabilitate the Plant No. 1 headworks that were built in the 1950s and 1960s and began operation in 1989. This is a mid-life renewal project that will extend the life of the Headworks for at least 20 years while providing reliable treatment and pumping for up to 320 million gallons per day of wastewater. The project budget is$406,000,000. The project's estimated construction contract cost is$293,270,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 152,473 152,473 Prelim Design 6,334,946 6,334,946 Design 19,873,680 3,817,846 1 23,691,527 Construction 107,258 5,134,598 49,260,668 63,678,784 63,678,787 47,488,397 106,163,435 335,511,927 Commissioning 504,833 942,897 942,899 1,096,893 2,805,323 6,292,845 Close-out 36 1,085,244 1,085,280 Contingency 466,542 32,464,459 32,931,001 Total 26,468,394 9,418,986 49,765,501 64,621,681 64,621,686 48,585,290 142,518,462 406,000,000 Reimbursable Costs: N/A Section 8-Page 54 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Title 24 Access Compliance and Building Rehabilitation Project - P1-115 Project Category Support Facilities Project Status: Continuing Description This project was created to upgrade existing office facilities and grounds at Plant No. 1 to comply with accessibility and other code requirements. Following the decision to build a new Headquarters Complex, the scope of this project was limited to the Warehouse, Maintenance Facilities, and Fleet • Services. The project also demolished Building H and provided area improvements adjacent to these buildings. The project involved two construction contracts, Title 24 Access Compliance and Building Rehabilitation Project, Contract No. P1-115A, and Rehabilitation of Fleet Services Building, PSI Building 8 and Paving Area, Contract No. P1-115B. This project is approaching close-out. Support Facilities Justification The Sanitation District was obligated under the terms of an agreement with the City of Fountain Valley to upgrade these facilities to comply with accessibility and code requirements . The project budget is$18,400,000. The project's estimated construction contract cost is$9,970,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 86,853 86,853 Prelim Design 1,600,880 1,600,880 Design 2,697,317 2,697,317 Construction 13,163,743 741 13,164,484 Commissioning Close-out 134,209 134,209 Contingency 141,320 574,937 716,257 Total 17,824,322 575,678 18,400,000 Reimbursable Costs: N/A Section 8-Page 55 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Primary Sedimentation Basins No. 3-5 Replacement at Plant No. 1 - P1-126 Project Category Primary Treatment Project Status: Revised Description O 0 This project will replace Primary Sedimentation Basins(PSB)3-5 and all associated facilities 000000 including distribution boxes,junction boxes, primary influent and effluent lines, structural, 0000000 O mechanical, and electrical systems. PSB 3-5 will be raised to allow gravity flow to secondary 000000000 treatment.This project will demolish PSB 1 and 2. The existing 12-kV load interrupter switches, �^^� double ended motor control centers, and standby engine generator will be replaced with new load 000000000 ` interruptible switches,480-volt switchgear, and motor control centers. Replace Eastside Basins 00000000 Distribution Box and rehabilitate the 10, 16, and 24-inch force mains between Waste Sidestream `-^-^� Pump Station 1 and Eastside Basins Distribution Box. 00 O O O 0 Primary Treatment Justification This primary sedimentation complex has been assessed and studied and it was concluded that it is reaching the end of its useful life. Replacement of the basins and rehabilitation of nearby utilties was determined to be the best course of action. The project budget has been increased from$106,000,000 to$117,700,000. The increased budget is the result of an estimated longer Project duration. The project's estimated construction contract cost is$69,770,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 520,582 61,054 105,971 687,607 Prelim Design 497 78,163 182,048 24 260,732 Design 64,137 2,863,615 4,174,072 1,787,570 8,889,394 Construction 80,065,149 80,065,149 Commissioning 4,983,074 4,983,074 Close-out 901,943 901,943 Contingency 1,331 64,679 152,398 244,703 21,448,990 21,912,101 Total 521,079 61,054 185,465 310,864 3,016,037 4,418,775 109,186,726 117,700,000 Reimbursable Costs: N/A Section 8-Page 56 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Central Generation Rehabilitation at Plant No. 1 - P1-127 Project Category Utility Systems Project Status: Revised Description This project will rehabilitate the Central Generation 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 controls improvements. Utility Systems Justification Central Generation equipment had been rebuilt through the planned 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 Central Generation facility equipment, particularly the equipment that are too large to be rebuilt through regular maintenance. The project budget has been decreased from$87,000,000 to$68,452,000. The reduced budget is a result of an updated cost estimate, start date and duration changes. The project's estimated construction contract cost is$41,100,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 15,022,126 15,022,126 Construction 41,099,657 41,099,657 Commissioning Close-out Contingency 12,330,217 12,330,217 Total 68,452,000 68,452,000 Reimbursable Costs: N/A Section 8-Page 57 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Headquarters Complex - P1-128 Project Category Support Facilities Project Status: Continuing Description This project will construct the new Headquarters Building on the north side of Ellis Avenue to house administrative, engineering, resource protection and environmental compliance staff. Surface parking and a pedestrian bridge over Ellis Avenue to Plant No. 1 will also be constructed. The • project includes the demolition of the Risk Trailer,two buildings on the Ellis property and three buildings on the Bandilier property. 6A I PSI Support Facilities Justification The administrative and engineering functions are located primarily at Reclamation Plant No. 1 in Fountain Valley. The Administration, Human Resource and Risk Management buildings are aging,were not permitted when constructed, and need replacement.Also, approximately 130 staff are in aging office trailers throughout Plant No. 1. The most cost-effective solution is replacement of the aging buildings and trailers with a new building that serves all administrative and engineering functions. The project budget is$167,500,000. The project's estimated construction contract cost is$103,200,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 115,017 115,017 Prelim Design 6,153,063 129,339 6,282,402 Design 23,075,933 2,735,617 212,008 26,023,558 Construction 52,545 3,051,870 39,676,669 57,316,243 18,501,723 118,599,050 Commissioning 99,999 92,127 1,051,028 1,120,968 2,364,122 Close-out 24,081 9,364 3,396,362 3,429,807 Contingency 9,873 298,621 2,148,545 5,932,551 2,296,454 10,686,044 Total 29,406,431 6,339,527 42,138,713 58,367,271 28,951,604 2,296,454 167,500,000 Reimbursable Costs: N/A Section 8-Page 58 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1 - P1-129 Project Category Secondary Treatment Project Status: Continuing Description This project involves replacement of an existing deteriorated 30-inch steel discharge header piping, 000 000 000 valves,flexible couplings, and pipe hangers in the Return Activated Sludge(RAS) Pump Room at Activated Sludge Plant No. 1 and approximately 220 linear feet of buried discharge piping. 000 000 000 000 000 000 Secondary Treatment Justification The discharge header was constructed with Activated Sludge Plant No. 1 in 1974.The pipe has had numerous leaks due to corrosion and requires complete replacement. The project budget is$10,300,000. The project's estimated construction contract cost is$6,860,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 30,417 30,417 Prelim Design 395,290 395,290 Design 542,535 542,535 Construction 3,547,810 4,673,777 8,221,587 Commissioning 22,580 22,580 Close-out 60,250 1,264 61,514 Contingency 810,309 215,768 1,026,077 Total 4,516,052 5,566,916 217,032 10,300,000 Reimbursable Costs: N/A Section 8-Page 59 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Uninterruptible Power Supply Improvements at Plant No. 1 - P1-132 Project Category Utility Systems Project Status: Continuing Description This project will provide a new regional Uninterruptible Power Supply(UPS)at Power Building 8 to provide critical power to facilities in the northwest region of Plant No. 1. New electrical distribution and branch circuit panelboards will replace existing old and obsolete equipment. The project will provide temporary power to maintain services to critical loads during construction. Miscellaneous 480-volt cables and circuit breakers will also be replaced. Utility Systems Justification The process areas in the northwest area of Plant No. 1 currently have numerous individual UPS units. These smaller units are spread throughout the plant,which reduces reliability and increases maintenance requirements. The need and justification for this regional UPS was identified in Uninterruptible Power System Study, Project No. SP-150. The project budget is$7,000,000.The project's estimated construction contract cost is$3,390,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 98,021 98,021 Prelim Design 174,700 337,354 512,054 Design 1,293 591,246 264,670 857,209 Construction 241,623 3,142,197 1,272,141 4,655,961 Commissioning 189,325 59,812 249,137 Close-out 42,811 18,277 61,088 Contingency 78,468 358,780 129,282 566,530 Total 274,014 928,600 584,761 3,331,522 1,733,544 147,559 7,000,000 Reimbursable Costs: N/A Section 8-Page 60 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Primary Sedimentation Basins No. 6-31 Reliability Improvements at Plant No. 1 - P1-133 Project Category Primary Treatment Project Status: Revised Description O 0 This project will increase the reliability of the rectangular primary clarifiers at Plant No. 1 by 000000 replacing three primary sludge pumps, replacing the failing launders in the Primary Influent Splitter 0000000 O Box, and installing a sump pump to remove water accumulation in a below-grade foul air pipe. 000000000 vV-�i 000000000 00000000 00 000 Primary Treatment Justification Primary Sedimentation Basins No. 3-5 Replacement at Plant No. 1, Project No. P1-126,will replace the large circular primary clarifiers at Plant No. 1. During construction,the rectangular clarifiers will be required to operate at full capacity for approximately three years. The project budget has been decreased from$12,000,000 to$10,100,000. The reduced budget is a result of changes in the project elements identified from recent engineering efforts. The project's estimated construction contract cost is$2,700,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 291,775 291,775 Prelim Design 242,099 345,728 587,827 Design 70,137 945,549 435,884 1,451,570 Construction 737,391 2,434,070 1,893,172 5,064,633 Commissioning 74,244 94,492 168,736 Close-out 44,928 64,123 109,051 Contingency 121,967 696,509 1,607,932 2,426,408 Total 604,011 1,291,277 1,295,242 2,508,314 2,032,592 760,632 1,607,932 10,100,000 Reimbursable Costs: N/A Section 8-Page 61 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number South Perimeter Security and Utility Improvements at Plant No.1 - P1-134 Project Category Support Facilities Project Status: Revised Description This security project will replace the perimeter chain link fence at Plant No. 1 along Ward Street with an 8-foot tall block wall. Interior security lighting, cameras, and intrusion detection systems will be installed along the south and west boundary of Plant No. 1 along with a permanent guard house • at the Garfield Avenue Gate. Tree removal and landscaping along Ward Street is also part of the project. The utility improvements will disconnect a City of Fountain Valley potable water service from Garfield Avenue and provide two new connections to existing potable water lines within Plant No. 1. Support Facilities Justification The work under this project will provide improved security and monitoring capability for Sanitation District's security staff and the new wall on Ward Street will provide enhanced protection against intruders. The water line work is required in order to remove the direct connection from Plant No. 1 to the City of Fountain Valley water main, alleviating any cross-connection concerns. The project budget has been decreased from$10,500,000 to$10,000,000. The reduced budget is a result of changes in the project elements identified from recent engineering efforts. The project's estimated construction contract cost is$5,110,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design 555,611 555,611 Design 679,394 575,536 1,254,930 Construction 104,775 4,607,510 1,807,974 6,520,259 Commissioning Close-out 71,262 71,262 Contingency 546,200 1 1,051,738 1,597,938 Total 1,235,005 680,311 4,607,510 2,425,436 1,051,738 10,000,000 Reimbursable Costs: N/A Section 8-Page 62 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Digester Ferric Chloride Piping Replacement at Plant No. 1 - P1-135 Project Category Solids Handling &Digestion Project Status: Continuing Description This project will replace the digester ferric chloride piping, valves and appurtenances from the ferric chloride facility to each of the digesters. I:t Solids Handling & Digestion Justification The existing ferric chloride feed piping to the digesters has been requiring repairs in numerous locations due to age and partial blockage. Ferric chloride feed to the digesters is required to control hydrogen sulfide concentrations in digester gas in order to comply with South Coast Air Quality permit conditions. The project budget is$1,360,000.The project's estimated construction contract cost is$600,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 23,976 23,976 Prelim Design 58,792 135 58,927 Design 32,921 104,179 137,100 Construction 48,979 744,965 793,944 Commissioning 1,642 1,642 Close-out 14,953 20,603 35,556 Contingency 17,600 260,000 1 15,140 1 16,115 308,855 Total 115,689 170,893 1,021,560 35,743 16,115 1,360,000 Reimbursable Costs: N/A Section 8-Page 63 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number 12.47 kVSwitchgear Replacement at Central Generation at Plant No. 1 - P1-136 Project Category Utility Systems Project Status: New Description The project will be replacing existing 12.47kV electrical switchgear at the Plant No. 1 Central Generation facility. The project will also assess existing Central Generation 12.47kV feeders and replace ones that fail electric tests. The 125 volt direct current battery system will be replaced to address new control power demands. Utility Systems Justification Plant No. 1 Central Generation equipment was installed in 1994 and is critical equipment for plant operation and feeds multiple Power Buildings. This equipment requires replacement to prevent the risk of system power supply failure. The project budget is$14,800,000. The project's estimated construction contract cost is$8,660,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 3,564,904 3,564,904 Construction 8,663,816 8,663,816 Commissioning Close-out Contingency 2,571,280 2,571,280 Total 1 14,800,000 14,800,000 Reimbursable Costs: N/A Section 8-Page 64 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Support Buildings Seismic Improvements at Plant No. 1 - P1-137 Project Category Support Facilities Project Status: New Description Staff occupied buildings at Plant No. 1 will receive structural and geotechnical (soil)improvements to reduce the risk of failure during a significant seismic event.These buildings include the Control Center, Maintenance Buildings,Warehouse, and Fleet Services. • PSI Support Facilities Justification The Seismic Evaluation of Structures at Plant Nos. 1 and 2 study that was completed in 2020 identified seismic risks associated with these buildings.These risks need to be addressed to ensure the reliability and safety of this building. The project budget is$23,730,000. The project's estimated construction contract cost is$12,760,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 259,739 519,477 804,963 819,988 833,108 3,906,200 7,143,475 Construction 12,759,883 12,759,883 Commissioning Close-out Contingency 3,826,642 3,826,642 Total 259,739 519,477 804,963 819,988 833,108 20,492,725 23,730,000 Reimbursable Costs: N/A Section 8-Page 65 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Network and Server Relocation at Plant No. 1 - P1-138 Project Category Utility Systems Project Status: New Description This project will relocate the existing data network and telecommunications room that is located in the Administration Building at Plant No. 1 to Power Building 3. Utility Systems Justification Once the new headquarters complex is complete,the current Administration Building will need to be demolished and the data network,telecommunications, and server room which is housed in there,will need to be relocated. The project budget is$3,027,000.The project's estimated construction contract cost is$1,490,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 228,012 264,476 327,056 268,494 1,088,038 Construction 243,917 1,247,863 1,491,780 Commissioning Close-out Contingency 447,182 447,182 Total 228,012 264,476 570,973 1,963,539 3,027,000 Reimbursable Costs: N/A Section 8-Page 66 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Consolidated Demolition and Utility Improvements at Plant 2 - P2-110 Project Category Utility Systems Project Status: Revised Description This project was created to clear space for future facilities at Plant No. 2 by demolishing obsolete and abandoned facilities. Facilities to be demolished included 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 tunnels were demolished or rehabilitated with pipe supports, drainage improvements, structural repair, and lighting improvements. Demolition areas have also received extensive grading, drainage and paving improvements.This project is approaching close-out. Utility Systems Justification Upcoming projects will be builid new facilities that require large areas of clear space. The project budget has been decreased from$31,000,000 to$30,000,000. The reduced budget is a result of an updated estimate to complete the work. The project's estimated construction contract cost is$18,270,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 221,226 221,226 Prelim Design 1,535,233 1,535,233 Design 2,013,629 2,013,629 Construction 24,423,562 139,786 24,563,348 Commissioning 776,160 19,768 795,928 Close-out 99,195 168,904 268,099 Contingency 586,257 16,281 602,538 Total 29,069,004 914,715 16,281 30,000,000 Reimbursable Costs: N/A Section 8-Page 67 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Central Generation Rehabilitation at Plant No.2 - P2-119 Project Category Utility Systems Project Status: Revised Description This project will rehabilitate the Plant No. 2 Central Generation facility equipment including the lube 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 control improvements. Utility Systems Justification Central Generation equipment had been rebuilt through planned maintenance program, or by CIP projects working in the area. There has not been a project just focusing on the rehabilitation of the overall Central Generation facility equipment, particularly the equipment that are too large to be rebuilt through regular maintenance. The project budget has been decreased from$114,000,000 to$108,000,000. The reduced budget is a result of an updated cost estimate, start date and duration changes. The project's estimated construction contract cost is$64,850,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 23,701,566 23,701,566 Construction 64,846,049 64,846,049 Commissioning Close-out Contingency 19,452,385 19,452,385 Total 108,000,000 108,000,000 Reimbursable Costs: N/A Section 8-Page 68 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Headworks Modification at Plant No.2 for GWRS Final Expansion - P2-122 Project Category Headworks Project Status: Revised Description This project will modify the Headworks facility, related piping, and sidestream flow routing to separate reclaimable and non-reclaimable flows to accommodate the Orange County Water District's Groundwater Replenishment System Final Expansion.Work elements include installing a new 72-inch diameter flow diversion, installing new 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. N I 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 project budget has been decreased from$54,000,000 to$32,000,000. The reduced budget is a result of an updated estimate to complete the work. The project's estimated construction contract cost is$14,490,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 234,102 234,102 Prelim Design 2,326,715 2,326,715 Design 4,514,410 4,514,410 Construction 1,897,664 5,105,155 8,071,863 5,133,100 20,207,782 Commissioning 308,796 561,281 272,655 1,142,732 Close-out 348,355 203,989 552,344 Contingency 1,932,236 1,089,679 3,021,915 Total 8,972,891 5,413,951 8,633,144 7,686,346 1,293,668 32,000,000 Reimbursable Costs: 23,000,000 Section 8-Page 69 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Return Activated Sludge Piping Replacement at Plant No.2 - P2-123 Project Category Secondary Treatment Project Status: Revised Description This project includes replacement of 1,800 feet of corroded return activated sludge piping at the 00 O 000 000 Activated Sludge Plant at Plant No. 2. This project will also repair full penetration cracks and surface spalling on the top deck of the aeration basins and replace all lightpoles with easily maintainable ones. 0001000 000 000 000 000 Secondary Treatment Justification The Activated Sludge Plant was constructed in 1979, and the return activated sludge piping has had multiple major leaks due to corrosion. The concrete deck of the aeration basins,which is used to contain high purity oxgen, has significant cracking and spalling which exposes the reinforcement steel to corrosion and could possibly cause leakage of oxygen. Leaking oxygen imposes a safety concern because of the potential for it to accumulate in confined areas potentially creating an oxygen-enriched environment.The existing light poles are badly corroded, and replacing lights is very difficult to perform safely. The project budget has been decreased from$20,000,000 to$10,800,000. The reduced budget is a result of an updated estimate to complete the work. The project's estimated construction contract cost is$6,040,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 83,703 83,703 Prelim Design 1,326 1,326 Design 831,176 831,176 Construction 950,728 6,018,564 1,406,572 8,375,864 Commissioning 56,497 16,131 72,628 Close-out 122,071 122,071 Contingency 629,444 683,788 1,313,232 Total 1,866,933 6,075,061 2,174,218 683,788 10,800,000 Reimbursable Costs: N/A Section 8-Page 70 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Interim Food Waste Receiving Facility - P2-124 Project Category Solids Handling &Digestion Project Status: Continuing Description This project will construct a station to receive, store, and feed pre-processed food waste slurry to three digesters at Plant No. 2 to generate additional digester gas. I:t Solids Handling & Digestion 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 divert organic waste from landfills. Waste haulers will separate organics at the source,then 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. This facility will be replaced with a permanent receiving station following completion of a proposed program to replace existing digesters at Plant No. 2. The project budget is$6,300,000.The project's estimated construction contract cost is$2,690,000. The increased operational costs associated with these facilities will be offset by tipping fees collected from food waste haulers and by the value of additional digester gas generated. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 111,14E 111,14E Prelim Design 366,066 366,066 Design 721,192 107,316 828,508 Construction 902,073 2,540,384 3,442,457 Commissioning 117,759 117,759 Close-out 57,401 54,193 111,594 Contingency 48,783 1,230,777 42,908 1,322,468 Total 1,198,406 1,058,172 3,946,321 97,101 6,300,000 Reimbursable Costs: N/A Section 8-Page 71 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Warehouse, Electrical Substation and 12kV Service Center Replacement at Plant No.2 - P2-126 Project Category Utility Systems Project Status: Revised Description This project will add a second 66-kV electrical feed to Plant No. 2, replace Southern California Edison's substation, replace the Electrical Service Center, and build a replacement Warehouse. The project will also relocate a major power distribution ductbank to clear space for a future Operations and Maintenance Complex. Utility Systems Justification Plant No. 2 currently has only one 66-kV power feed from Southern California Edison (SCE). A second power feed from a different section of SCE's power distribution system will reduce the risk that a major shutdown of one node of their network would impact the ability to maintain permit requirements. The second power feed requires the existing SCE substation to be replaced. The Electrical Service Center is nearing the end of its useful life and reconfiguration of the area of the plant associated with the new SCE substation and Warehouse provides a good opportunity to replace it in a better location and relocate a key duct bank to accommodate future construction of an Operations and Maintenance Complex. The area where the Warehouse is currently located is needed for the new Temperature Phased Anaerobic Digestion facilities(TPAD). The project budget has been increased from$9,800,000 to$65,000,000. The increased budget is the result of combining the work of two other projects into this one. Those other projects include Substation Replacement at Plant No. 2, Project No. P2-134, and a future 12 kV Service Center Replacement project. The project's estimated construction contract cost is$41,300,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 26,491 63,685 7,133 97,309 Prelim Design 4,826 653,572 2,094,666 2,753,064 Design 1,313,201 1,283,946 2,597,147 Construction 606,426 9,312,351 18,877,698 17,861,636 46,658,111 Commissioning 73,322 100,114 129,994 303,430 Close-out 109,557 109,557 Contingency 300,000 121181,382 12,481,382 Total 31,317 717,257 3,415,000 2,190,372 9,385,673 18,977,812 30,282,569 65,000,000 Reimbursable Costs: N/A Section 8-Page 72 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Collections Yard Relocation - P2-127 Project Category Support Facilities Project Status: Future Description This project will replace the existing Collections Facilities yard and fencing in a new location, yet to be determined. PSI Support Facilities Justification The area where this facility is currently located is needed for the new Temperature Phased Anaerobic Digestion facilities. The project budget is$1,840,000.The project's estimated construction contract cost is$900,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 106,701 143,178 167,836 167,839 82,799 668,353 Construction 226,301 671,937 898,238 Commissioning Close-out Contingency 273,409 273,409 Total 106,701 143,178 394,137 839,776 356,208 1,840,000 Reimbursable Costs: N/A Section 8-Page 73 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number TPAD Digester Facility at Plant No.2 - P2-128 Project Category Solids Handling &Digestion Project Status: Revised Description This project will enhance the existing anerobic digesters at Plant No. 2 with a temperature-phased anaerobic digester(TPAD)configuration. This project will build six new thermophilic digesters; Class A batch tanks; sludge heating and cooling facilities; associated sludge pumping;digester mixing; gas conveyance and cooling facilities; odor control; power distribution; and controls. The project will also construct a perimeter protection wall along the southwestern plant boundary. Replacement and demolition of existing digesters will be included in a separate project. I:t Solids Handling & Digestion 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 increased from$405,100,000 to$455,000,000. The increased budget is needed based on changes in the project elements identified from recent engineering efforts. The project's estimated construction contract cost is $317,480,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 493,485 122,615 616,100 Prelim Design 1,665,054 10,505,758 301,417 12,472,229 Design 2,503,259 9,320,405 9,326,857 8,949,531 845,340 30,945,392 Construction 300,987 354,455,214 354,756,201 Commissioning 6,568,601 6,568,601 Close-out 426,361 426,361 Contingency 49,215,116 49,215,116 Total 493,485 1,787,669 13,009,017 9,621,822 9,326,857 9,250,518 411,510,632 455,000,000 Reimbursable Costs: N/A Section 8-Page 74 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Digester P, Q, R, and S Replacement - P2-129 Project Category Solids Handling &Digestion Project Status: Future Description This project will replace, or extensively rehabilitate Digesters P, Q, R, and S to address both condition issues, seismic deficiencies, and soil liquefaction risks, and relocated the ferric chloride dosing facility to the new digesters location. Solids Handling & Digestion 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 is$165,900,000. The project's estimated construction contract cost is$99,640,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 36,418,448 36,418,448 Construction 99,638,778 99,638,778 Commissioning Close-out Contingency 29,842,774 29,842,774 Total 165,900,000 165,900,000 Reimbursable Costs: N/A Section 8-Page 75 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number B/C-Side Primary Sedimentation Basins Rehabilitation at Plant 2 - P2-133 Project Category Primary Treatment Project Status: Revised Description O 0 This project will rehabilitate B&C sides of primary basins at Plant No. 2. The work will rehabilitate Ov-�.. O O 10 primary basins with new flat covers; rehabilitate sludge/scum pump stations; replace all 00000000 mechanical and electrical systems; rehabilitate structural and yard piping; replace North Scrubber 000000000 Complex; relocate electrical and controls to Distribution Center F; and miscellaneous upgrades. �^^� 000000000 00000000 00 000 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 budget has been increased from$249,560,000 to$279,842,000. The increased budget is a result of an increased Project duration. The project's estimated construction contract cost is$168,140,000. The impacts to operational budgets have not yet been determined. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 61,455,272 61,455,272 Construction 168,137,999 168,137,999 Commissioning Close-out Contingency 50,248,729 50,248,729 Total 279,842,000 279,842,000 Reimbursable Costs: N/A Section 8-Page 76 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Sodium Bisulfite Station Rehabilitation at Plant No.2 - P2-135 Project Category Ocean Outfall Systems Project Status: New Description Since 2012,The Sanitaiton District no longer discharges primary effluent to the ocean. In 2015, the Sanitaiton District received approval to stop disinfection for the long outfall. Even though the use of the short outfall is for emergencies or planned maintenance, all flow must be disinfected when it is used. Sodium Bisulfite is the chemical that is used to disinfect through the short outfall. This �� project will downsize the existing sodium bisulfite facility to address new design conditions and rehabilitate structural, mechanical, electrical, and instrumentation to extend the useful life. 1: Ocean Outfall Systems Justification The existing station requires modernization and rehabilitation in order to maintain operations. The project budget is$3,830,000. The project's estimated construction contract cost is$1,890,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 101,848 206,659 234,960 271,285 311,942 251,317 1,378,011 Construction 715,668 1,173,695 1,889,363 Commissioning Close-out Contingency 566,626 566,626 Total 101,848 206,659 234,960 271,285 1,027,610 1,991,638 3,834,000 Reimbursable Costs: N/A Section 8-Page 77 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Activated Sludge Aeration Basin Rehabilitation at Plant No.2 - P2-136 Project Category Secondary Treatment Project Status: New Description This project includes structural rehabilitation of the aeration basin's reactor deck, coating the 000 000 000 interior of reactor tanks to mitigate exposed concrete aggregate, replacement of all mechanical equipment, components, and piping, including all gates, valves and appurtenances. This Project will also upgrade lighting and nearby storm drains. 000 O O O 000 000 000 000 Secondary Treatment Justification The aeration basins were installed in 1983 and a major mechanical and structural rehabilitation was conducted in 2006. This system is in need of major rehabilitation of structural and mechanical components in order to maintain reliable serviceability and extend useful life. The project budget is$65,600,000. The project's estimated construction contract cost is$39,390,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 501,296 1,043,832 1,280,797 1,695,061 9,875,173 14,396,159 Construction 39,387,066 39,387,066 Commissioning Close-out Contingency 11,816,775 11,816,775 Total 501,296 1,043,832 1,280,797 1,695,061 61,079,014 65,600,000 Reimbursable Costs: N/A Section 8-Page 78 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Digesters Rehabilitation at Plant No.2 - P2-137 Project Category Solids Handling &Digestion Project Status: New Description The project will rehabilitate all existing Plant No. 2 digesters to extend their useful lives by 10-15 years. Work includes repairing the digester domes,walls and bridges, rehabilitating the hot water piping system, improving miscellaneous safety related items and replacing electrical motor control centers that are obsolete. Solids Handling & Digestion Justification These digesters require rehabilitation to keep them in operable condition until the new thermophilic phase digesters are constructed and in operation. The project budget is$40,630,000. The project's estimated construction contract cost is$21,850,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 589,432 1,547,988 1,867,525 2,014,505 2,497,130 3,714,321 12,230,901 Construction 409,281 7,056,566 7,169,472 7,211,811 21,847,130 Commissioning Close-out Contingency 6,553,969 6,553,969 Total 589,432 1,547,988 2,276,806 9,071,071 9,666,602 17,480,101 40,632,000 Reimbursable Costs: N/A Section 8-Page 79 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Operations and Maintenance Complex at Plant No. 2 - P2-138 Project Category Support Facilities Project Status: New Description This Project will replace the Operations and Maintenance Buildings at Plant No. 2. The new location will be along the westerly border,just south of Banning Avenue. The main entrance will be relocated to Banning Avenue.The existing buildings and main entrance will be demolished. • PSI Support Facilities Justification The Seismic Evaluation of Structures at Plant Nos. 1 and 2 study that was completed in 2020 identified seismic risks associated with these buildings.These risks need to be addressed to ensure the reliability and safety of this building. Also, the Operations Building does not meet various building code requirements and cannot readily accommodate the upgrades. Relocation of the main entrance to Banning Avenue will add circulation, safety and security improvements. The project budget is$95,000,000. The project's estimated construction contract cost is$56,997,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev Prelim Design Design 1,150,713 1,749,646 2,113,630 2,147,449 13,671,175 20,832,613 Construction 56,996,764 56,996,764 Commissioning Close-out Contingency 17,170,623 17,170,623 Total 1,150,713 1,749,646 2,113,630 2,147,449 87,838,562 95,000,000 Reimbursable Costs: N/A Section 8-Page 80 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Sludge Dewatering and Odor Control at Plant No. 2 - P2-92 Project Category Solids Handling &Digestion Project Status: Continuing Description This project constructed new dewatering facilities to reduce biosolids handling and disposal costs, replaced the aging sludge dewatering facilities, and provided associated odor control facilities. The project also demolished the existing Belt Press Dewatering Building, and two unused sludge cake storage silos. This budget also included construction of Truck Loading Bay Odor Control, Contract No. P2-92A,which was built under a separate construction contract. This project is approaching close-out. 131 Solids Handling & Digestion Justification This project replaced the belt press dewatering facilities that have reached the end of their service life. Based on the Long Range Biosolids Master Plan, a newer dewatering technology, centrifuges,was utilized to reduce the amount of water in the biosolids hauled offsite to reduce biosolids management disposal costs. The project budget is$90,477,000. The project's estimated construction contract cost is$55,630,000.The facilities constructed by this project are now in service and will have no further impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 637,454 637,454 Prelim Design 2,793,707 2,793,707 Design 7,164,915 7,164,915 Construction 72,452,258 727,394 73,179,652 Commissioning 1,501,743 34,994 1,536,737 Close-out 127,415 388,401 515,816 Contingency 4,065,626 583,093 4,648,719 Total 84,677,492 5,216,415 583,093 90,477,000 Reimbursable Costs: N/A Section 8-Page 81 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Primary Treatment Rehabiliation at Plant No.2 - P2-98 Project Category Primary Treatment Project Status: Revised Description O 0 000000 This project will replace the four A-Side Primary Clarifiers with associated influent piping, influent �� distribution structures, effluent piping, sludge pumping units, and flat covers for odor containment. 00000000 The project will also construct a new air scrubbing complex. The project includes a second 000000000 construction contract to provide interim repairs to the other ten clarifiers in the B-Side and C-Side �^^� and associated pipelines to improve reliability until they can be more extensively rehabilitated on in 000000000 ` the future B/C-Side Primary Sedimentation Basins Rehabilitation at Plant No. 2, Project No. P2-133. 00000000 00 0 Primary Treatment Justification The A-Side Clarifiers are at the end of their useful life and cannot effectively be rehabilitated. The project budget has been decreased from$245,000,000 to$237,000,000. The reduced budget is a result of an updated estimate to complete the work. The project's estimated construction contract cost is$148,100,000. This project will increase operational budgets by$50,000 annually. Additional one hour a day for inspecting the clarifiers. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 828,160 828,160 Prelim Design 8,892,709 8,892,709 Design 10,928,392 3,403,156 226,130 14,557,678 Construction 5,680,729 4,683,966 24,065,917 30,284,533 52,922,174 28,048,273 29,789,490 175,475,082 Commissioning 21,209 62,245 64,322 71,112 63,203 282,091 Close-out 125,468 790,550 916,018 Contingency 1,801,072 139,445 34,107,745 36,048,262 Total 26,329,990 8,087,122 26,239,796 30,486,223 52,986,496 28,119,385 64,750,988 237,000,000 Reimbursable Costs: N/A Section 8-Page 82 Go to Table of Contents CIP Project Detail Sheets Project Name&Number 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 program. The system will replace the current Computerized Maintenance Management System. The system will manage asset data and asset activities throughout the asset lifecycle. F11111111 Information Management Systems Justification The IBM Maximo System will provide the means to manage assets 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 project budget is$7,500,000. The project's estimated construction contract cost is$210,000. This project will not have an impact on operational budgets. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 1,306,829 1,306,829 Prelim Design 412,837 412,837 Design 3,139,389 3,139,389 Construction 1,427,910 1,427,910 Commissioning 311,956 311,956 Close-out 35,846 35,846 Contingency 865,233 865,233 Total 6,634,767 865,233 7,500,000 Reimbursable Costs: N/A Section 8-Page 83 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Geographic Information System - SP-15 Project Category Information Management Systems Project Status: Revised Description Geographic Information Systems(GIS)can be utilized at the Sanitation 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 CD Shed Modeling. Other regional programs that would utilize the GIS are Bacteria Investigations,Air Quality, Special Purpose Discharge Permits, Connection Permits, and Source Control Permits. A I I I I I I I goal of the project is to enable Internet access to the Sanitation 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 Sanitation District's projects. Information Management Systems Justification There is a need and an opportunity for cost savings, spatial data control, and a reporting tool that can graphically display the District's data on maps via the Internet to reporting agencies, the public, and across the organization. The project budget has been increased from$4,568,000 to$4,700,000. The increased budget is a result of increases to software vendor contracts. Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 801,985 801,985 Prelim Design 126,890 126,890 Design 183,934 16,282 16,283 16,281 7,228 240,008 Construction 2,275,489 43,425 43,426 43,425 19,280 2,425,045 Commissioning 25,000 25,000 Close-out 24,476 24,476 Contingency 951,272 105,324 1,056,596 Total 3,437,774 59,707 59,709 1,010,978 131,832 4,700,000 Reimbursable Costs: N/A Section 8-Page 84 Go to Table of Contents CIP Project Detail Sheets Project Name&Number Capital Improvement Program Management Services - SP-195 Project Category Others Project Status: Revised Description This project funds program management services for the Capital Improvement Program not related to any one specific project, but on the management of the projects as a whole. Activities include 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. Work may also include review of project controls including project budgeting, cash flow analysis and project scheduling. Others Justification The activities facilitate continuous improvements to program management practices to maintain effectiveness in managing the Capital Improvement Program as business practices and the project makeup of the CIP evolves. The project budget is$700,000. This project wll not have an impact on operational budgets Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 5,826 5,826 Prelim Design 2,938 2,938 Design 204,538 26,901 26,903 26,902 285,244 Construction 66,171 66,171 Commissioning Close-out Contingency 339,821 339,821 Total 279,473 26,901 26,903 366,723 700,000 Reimbursable Costs: N/A Section 8-Page 85 Go to Table of Contents 2020-21 & 2021 -22 Budget Project Name&Number Process Control Systems Upgrades Study - SP-196 Project Category Information Management Systems Project Status: Revised 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. The study will include a formal,two-phase procurement selection process comprised of a qualification-phase to CD shortlist prospective system vendors and a proposal-phase to perform a best-value selection of a vendor to enter into a long-term agreement for supplying a new SCADA system. The SCADA system includes Human Machine Interface(HMI)hardware and software, P111111 piil Programmable Logic Controllers(PLCs), Historian, and security and administrative requirements for the Industrial Control System (ICS)network.These improvements will provide greater reliability and system continuity by replacing the existing obsolete systems with current technology that Information enhances trending, diagnostic data, monitoring, control, automation and management information. This study will evaluate the latest technology offerings; define system reliability, redundancy, and Management performance; evaluate enterprise wide process data integration needs; define requirements for Systems current and future SCADA and ICS security requirements; and define requirements for upgrading y 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. The project budget has been decreased from$3,554,000 to$3,400,000. The reduced budget is a result of an updated estimate to complete the work. This project wll not have an impact on operational budgets Budget Projections Budget Phase Cost To- 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Date Budget Proj Dev 2,002,212 1,033,834 2,278 3,038,324 Prelim Design 2,352 2,352 Design 31,879 20,136 81 52,096 Construction Commissioning Close-out Contingency 301,781 5,447 307,228 Total 2,036,443 1,355,751 7,806 3,400,000 Reimbursable Costs: N/A Section 8-Page 86 Go to Table of Contents Summary by Project Status Collection System Improvement Projects - Budget by Project Status Project Total New Continuing Revised Future Number Title Budget Project Project Project Project Collections Facilities 1-23 Santa Ana Trunk Sewer Rehab $ 54,620,000$ 54,620,000 1-24 Greenville-Sullivan Trunk Impr. 48,600,000 48,600,000 11-33 Edinger Pump Station Repl. 10,153,000 10,153,000 11-34 Slater Pump Station Rehab 26,622,000 26,622,000 241-8 SARI Rock Stabilizers Removal 4,860,000 4,860,000 2-49 Taft Branch Capacity Impr. 14,000,000 14,000,000 2-65 Newhope-Placentia Trunk Grade Separation Repl. 4,300,000 4,300,000 2-72 Newhope-Placentia Trunk Repl. 112,000,000 112,000,000 2-73 Yorba Linda Dosing Station Installation 14,080,000 14,080,000 3-60 Beach Relief Trunk/Knott Interceptor/Miller Holder Trunk Rehab 35,132,000 35,132,000 3-62 Westminster Blvd Force Main Repl. 44,000,000 44,000,000 3-64 Rehab of Western Regional Sewers 70,000,000 70,000,000 3-66 Interstate 405 Widening Project Impacts on OCSD Sewers 250,000 250,000 3-67 Seal Beach Pump Station Repl. 78,900,000 78,900,000 3-68 Los Alamitos Sub-Trunk Extension 84,124,000 84,124,000 5-66 Crystal Cove Pump Station Rehab 13,200,000 13,200,000 5-67 Bay Bridge Pump Station Repl. 74,000,000 74,000,000 5-68 Newport Beach Pump Stations Pressurization Impr. 4,300,000 4,300,000 6-17 District 6 Trunk Sewer Relief 7,250,000 7,250,000 7-63 MacArthur Pump Station Rehab 9,800,000 9,800,000 7-64 Main Street Pump Station Rehab 39,450,000 39,450,000 7-65 Gisler-Red Hill Interceptor&Baker Force Mains Rehab 21,000,000 21,000,000 7-66 Sunflower&Red Hill Interceptor Repairs 4,700,000 4,700,000 7-68 MacArthur Force Main Impr. 2,468,000 2,468,000 7-69 North Trunk Impr. 9,200,000 9,200,000 Collections Facilities Total Budget 787,009,000 112,420,000 269,200,000 405,389,000 Section 8-Page 87 Go to Table of Contents 2020-21 & 2021 -22 Budget Treatment & Disposal Projects - Budget by Project Status Project Total New Continuing Revised Future Number Title Budget Project Project Project Project Headworks P1-105 Headworks Rehab at P1 406,000,000 406,000,000 P2-122 Headworks Modification at P2 for GWRS Final Expansion 32,000,000 32,000,000 Headworks Total Budget 438,000,000 406,000,000 32,000,000 Primary Treatment P1-126 Primary Sedimentation Basins No.3-5 Repl.at P1 117,700,000 117,700,000 P1-133 Primary Sedimentation Basins No.6-31 Reliability Impr.at P1 10,100,000 10,100,000 P2-133 B/C-Side Primary Sedimentation Basins Rehab at P2 279,842,000 279,842,000 P2-98 Primary Treatment Rehabiliation at P2 237,000,000 237,000,000 Primary Treatment Total Budget 644,642,000 644,642,000 Secondary Treatment P2-136 Activated Sludge Aeration Basin Rehab at P2 65,600,000 65,600,000 P1-129 Return Activated Sludge Piping Repl.at Activated Sludge P1 10,300,000 10,300,000 P2-123 Return Activated Sludge Piping Repl.at P2 10,800,000 10,800,000 Secondary Treatment Total Budget 86,700,000 65,600,000 10,300,000 10,800,000 Solids Handling&Digestion P2-124 Interim Food Waste Receiving Facility 6,300,000 6,300,000 P2-128 TPAD Digester Facility at P2 455,000,000 455,000,000 P2-129 Digester P,Q,R,&S Repl. 165,900,000 165,900,000 P1-135 Digester Ferric Chloride Piping Repl.at P1 1,360,000 1,360,000 P1-101 Sludge Dewatering&Odor Control at P1 197,000,000 197,000,000 P2-137 Digesters Rehab at P2 40,632,000 40,632,000 P2-92 Sludge Dewatering&Odor Control at P2 90,477,000 90,477,000 Solids Handling&Digestion Total Budget 956,669,000 40,632,000 98,137,000 652,000,000 165,900,000 Ocean Outfall Systems P2-135 Sodium Bisulfite Station Rehab at P2 3,834,000 3,834,000 J-117 Ocean Outfall System Rehab 166,000,000 166,000,000 Ocean Outfall Systems Total Budget 169,834,000 3,834,000 166,000,000 Utility Systems J-124 Digester Gas Facilities Repl. 173,000,000 173,000,000 J-127 Natural Gas Pipelines Repl.at P1&P2 1,610,000 1,610,000 J-135 Central Generation Engine Overhauls at P1&2 26,000,000 26,000,000 J-136 Power Building Structural Seismic Impr.at P1&2 7,080,000 7,080,000 Section 8-Page 88 Go to Table of Contents Summary by Project Status Treatment & Disposal Projects - Budget by Project Status Project Total New Continuing Revised Future Number Title Budget Project Project Project Project Utility Systems J-98 Electrical Power Distribution System Impr. 26,500,000 26,500,000 P1-136 12.47 kVSwitchgear Repl.at Central Generation at P1 14,800,000 14,800,000 P1-132 Uninterruptible Power Supply Impr.at P1 7,000,000 7,000,000 P1-127 Central Generation Rehab at P1 68,452,000 68,452,000 P1-138 Network&Server Relocation at P1 3,027,000 3,027,000 P2-110 Consolidated Demolition&Utility Impr.at P2 30,000,000 30,000,000 P2-119 Central Generation Rehab at P2 108,000,000 108,000,000 P2-126 Warehouse,Electrical Substation&12kV Service Center Repl.at P2 65,000,000 65,000,000 Utility Systems Total Budget 530,469,000 50,907,000 7,000,000 472,562,000 Process Related Special Projects J-126 Safety Impr.Program 16,000,000 16,000,000 Process Related Special Projects Total Budget 16,000,000 16,000,000 Information Management Systems J-120 Process Control Systems Upgrades 33,000,000 33,000,000 J-128 Project Mgmt.Information System 2,280,000 2,280,000 M-MC-IT Information Technology Capital Program 10,000,000 10,000,000 SP-100 EAM Software&Process Implementation 7,500,000 7,500,000 SP-15 Geographic Information System 4,700,000 4,700,000 SP-196 Process Control Systems Upgrades Study 3,400,000 3,400,000 Information Management Systems Total Budget 60,880,000 17,500,000 43,380,000 Strategic&Master Planning M-STUDIES Planning Studies Program 28,652,000 28,652,000 Strategic&Master Planning Total Budget 28,652,000 28,652,000 Water Management Projects J-36-2 GWRS Final Expansion Coordination 1,132,000 1,132,000 Water Management Projects Total Budget 1,132,000 1,132,000 Research M-RESEARCH Research Program 8,500,000 8,500,000 Research Total Budget 8,500,000 8,500,000 Support Facilities M-SM-CAP Operations&Maintenance Capital Program 15,622,000 15,622,000 M-FE Small Construction Projects Program 65,000,000 65,000,000 P1-115 Title 24 Access Compliance&Building Rehab Project 18,400,000 18,400,000 Section 8-Page 89 Go to Table of Contents 2020-21 & 2021 -22 Budget Treatment & Disposal Projects - Budget by Project Status Project Total New Continuing Revised Future Number Title Budget Project Project Project Project Support Facilities J-133 Laboratory Rehab at P1 44,200,000 44,200,000 P2-127 Collections Yard Relocation 1,840,000 1,840,000 P1-128 Headquarters Complex 167,500,000 167,500,000 P1-137 Support Buildings Seismic Impr.at P1 23,730,000 23,730,000 P1-134 South Perimeter Security&Utility Impr.at P1 10,000,000 10,000,000 P2-138 Operations&Maintenance Complex at P2 95,000,000 95,000,000 Support Facilities Total Budget 441,292,000 118,730,000 201,522,000 119,200,000 1,840,000 Others SP-195 Capital Improvement Program Mgmt.Services 700,000 700,000 Others Total Budget 700,000 700,000 Total Treatment and Disposal Projects 3,383,469,997 279,703,000 944,742,997 1,991,284,000 167,740,000 Total Collections Facilities 787,008,999 112,420,000 269,200,000 405,388,999 Capital Equipment Purchases 9,062,800 9,062,800 Total Capital Improvement Program Budget $4,179,541,796 $392,123,000 $1,223,005,797 $2,396,672,999 $167,740,000 Section 8-Page 90 Summary of Revenue Program Category Collection System Improvement Projects Project Name Total Percentage Allocation Total Project Cost Budget Project Rehab/ Strategic Additional Regulatory Rehab./ Strategic Additional Regulatory Budget Repl Initiative Capacity Replacement Initiative Capacity Collections Facilities Santa Ana Trunk Sewer Rehab $ 54,620,000 100% $ 54,620,000 - Greenville-Sullivan Trunk Impr. 48,600,000 100% - 48,600,000 Edinger Pump Station Repl. 10,153,000 100% 10,153,000 - Slater Pump Station Rehab 26,622,000 100% 26,622,000 SARI Rock Stabilizers Removal 4,860,000 100% - - 4,860,000 Taft Branch Capacity Impr. 14,000,000 100% 14,000,000 Newhope-Placentia Trunk Grade Separation Repl. 4,300,000 100% 4,300,000 Newhope-Placentia Trunk Repl. 112,000,000 25% 25% 50% 28,000,000 28,000,000 56,000,000 Yorba Linda Dosing Station Installation 14,080,000 100% - 14,080,000 - Beach Relief Trunk/Knott Interceptor/Miller Holder Trun 35,132,000 100% 35,132,000 - Rehab Westminster Blvd Force Main Repl. 44,000,000 100% 44,000,000 - Rehab of Western Regional Sewers 70,000,000 75% 25% 52,500,000 17,500,000 Interstate 405 Widening Project Impacts on OCSD 250,000 100% 250,000 Sewers Seal Beach Pump Station Repl. 78,900,000 100% 78,900,000 Los Alamitos Sub-Trunk Extension 84,124,000 75% 25% 63,093,000 21,031,000 Crystal Cove Pump Station Rehab 13,200,000 100% 13,200,000 - Bay Bridge Pump Station Repl. 74,000,000 100% 74,000,000 Newport Beach Pump Stations Pressurization Impr. 4,300,000 100% 4,300,000 District 6 Trunk Sewer Relief 7,250,000 50% 50% 3,625,000 - 3,625,000 MacArthur Pump Station Rehab 9,800,000 100% 9,800,000 - Main Street Pump Station Rehab 39,450,000 100% 39,450,000 Gisler-Red Hill Interceptor&Baker Force Mains Rehab 21,000,000 100% 21,000,000 Sunflower&Red Hill Interceptor Repairs 4,700,000 100% 4,700,000 - MacArthur Force Main Impr. 2,468,000 50% 50% 1,234,000 1,234,000 - North Trunk Impr. 9,200,000 100% - - 9,200,000 Collections Facilities Projects Total 787,009,000 560,029,000 47,614,000 1 169,956,000 9,4t0,000 Section 8- Page 91 Go to Table of Contents 2020-21 & 2021 -22 Budget Treatment & Disposal Improvement Projects Project Name Total Percentage Allocation Total Project Cost Budget Project Rehab/ Strategic Additional Regulatory Rehab./ Strategic Additional Regulatory Budget Rep Initiative Capacity Replacement Initiative Capacity Headworks Rehab at P1 406,000,000 100% 406,000,000 Headworks Modification at P2 for GWRS Final 32,000,000 100% - 32,000,000 Expansion Headworks Projects Total 438,000,000 406,000,000 32,000,000 Process Control Systems Upgrades 33,000,000 100% 33,000,000 - Project Mgmt.Information System 2,280,000 100% - 2,280,000 Information Technology Capital Program 10,000,000 50% 50% 5,000,000 5,000,000 EAM Software&Process Implementation 7,500,000 100% 7,500,000 - Geographic Information System 4,700,000 100% - 4,700,000 Process Control Systems Upgrades Study 3,400,000 100% 3,400.000 - Information Management Systems Projects Total 60,880,000 48,900,000 7,280,000 1 4,700,000 Ocean Outfall System Rehab 166,000,000 25% 75% 41,500,000 124,500,000 - Sodium Bisulfte Station Rehab at P2 3,834,000 50% 50% 1,917,000 1,917,000 Ocean Outfall Systems Projects Total 169,834,000 43,417,000 126,417,000 Capital Improvement Program Mgmt.Services 700,000 100% - 700,000 Others Projects Total 700,000 700,000 Primary Sedimentation Basins No.3-5 Repl.at P1 117,700,000 100% 117,700,000 - Primary Sedimentation Basins No.6-31 Reliability Impr. 10,100,000 50% 50% 5,050,000 5,050,000 at P1 B/C-Side Primary Sedimentation Basins Rehab at P2 279,842,000 100% 279,842,000 - Primary Treatment Rehabiliation at P2 237,000,000 100% 237,000,000 - Primary Treatment Projects Total 644,642,000 639,592,000 1 5,050,000 Safety Impr.Program 16,000,000 100% - - 16,000,000 Process Related Special Projects Projects Total 16,000,000 16,000,000 Research Program 8,500,000 100% 8,500,000 Research Projects Total 8,500,000 8,500,000 Activated Sludge Aeration Basin Rehab at P2 65,600,000 100% 65,600,000 - Return Activated Sludge Piping Repl.at Activated 10,300,000 100% 10,300,000 Sludge P1 Return Activated Sludge Piping Repl.at P2 10,800,000 100% 10,800,000 Secondary Treatment Projects Total 86,700,000 86,700,000 Section 8- Page 92 Summary of Revenue Program Category Treatment & Disposal Improvement Projects Project Name Total Percentage Allocation Total Project Cost Budget Project Rehab/ Strategic Additional Regulatory Rehab./ Strategic Additional Regulatory Budget Rep Initiative Capacity Replacement Initiative Capacity Interim Food Waste Receiving Facility 6,300,000 100% - 6,300,000 TPAD Digester Facility at P2 455,000,000 75% 25% 341,250,000 113,750,000 Digester P,Q,R,&S Repl. 165,900,000 75% 25% 124,425,000 41,475,000 Digester Ferric Chloride Piping Repl.at P1 1,360,000 100% 1,360,000 - Digesters Rehab at P2 40,632,000 100% 40,632,000 Sludge Dewatering&Odor Control at P2 90,477,000 100% 90,477,000 - Sludge Dewatering&Odor Control at P1 197,000,000 50% 50% 98,500,000 - 98,500,000 Solids Handling&Digestion Projects Total 956,669,000 696,644,000 161,525,000 98,500,000 Planning Studies Program 28,652,000 40% 25% 10% 25% 11,460,800 7,163,000 2,865,200 7,163,000 Strategic&Master Planning Projects Total 28,652,000 11,460,800 7,163,000 2,865,200 7,163,000 Operations&Maintenance Capital Program 15,622,000 100% 15,622,000 - Small Construction Projects Program 65,000,000 70% 10% 10% 10% 45,500,000 6,500,000 6,500,000 6,500,000 Title 24 Access Compliance&Building Rehab Project 18,400,000 100% - - - 18,400,000 Laboratory Rehab at P1 44,200,000 75% 25% 33,150,000 11,050,000 Operations&Maintenance Complex at P2 95,000,000 50% 50% 47,500,000 47,500,000 Collections Yard Relocation 1,840,000 100% 1,840,000 - Headquarters Complex 167,500,000 50% 50% 83,750,000 83,750,000 Support Buildings Seismic Impr.at P1 23,730,000 100% - 23,730,000 South Perimeter Security&Utility Impr.at P1 10,000,000 100% - 10,000,000 Support Facilities Projects Total 441,292,000 227,362,000 182,530,000 6,500,000 24,900,000 12.47 kVSwitchgear Repl.at Central Generation at P1 14,800,000 100% 14,800,000 - - - Uninterruptible Power Supply Impr.at P1 7,000,000 100% 7,000,000 Central Generation Rehab at P1 68,452,000 100% 68,452,000 - Network&Server Relocation at P1 3,027,000 70% 30% 2,118,900 908,100 Consolidated Demolition&Utility Impr.at P2 30,000,000 100% 30,000,000 - Central Generation Rehab at P2 108,000,000 100% 108,000,000 - Warehouse,Electrical Substation&12kV Service 65,000,000 25% 75% 16,250,000 48,750,000 Center Repl.at P2 Digester Gas Facilities Repl. 173,000,000 100% 173,000,000 - Natural Gas Pipelines Repl.at P1&P2 1,610,000 100% 1,610,000 Central Generation Engine Overhauls at P1&2 26,000,000 100% 26,000,000 Section 8- Page 93 Go to Table of Contents 2020-21 & 2021 -22 Budget Treatment & Disposal Improvement Projects Project Name Total Percentage Allocation Total Project Cost Budget Project Rehab/ Strategic Additional Regulatory Rehab./ Strategic Additional Regulatory Budget Rep Initiative Capacity Replacement Initiative Capacity Power Building Structural Seismic Impr.at P1&2 7,080,000 100% - 7,080,000 Electrical Power Distribution System Impr. 26,500,000 75% 25% 19,875,000 6,625,000 Utility Systems Projects Total 530,469,000 467,105,900 63,363,100 GWRS Final Expansion Coordination 1,132,000 100% - 1,132,000 Water Management Projects Projects Total 1,132,000 1,132,000 Total Treatment and Disposal Projects 3,383,470,000 2,627,181,698 595,660,099 107,865,200 52,763,000 Total Collections Facilities 787,009,000 560,028,999 47,614,000 169,956,000 9,410,000 Capital Equipment Purchases 9,062,800 2,265,700 2,265,700 2,265,700 2,265,700 Total Capital Improvement Program $4,179,541,800 $3,189,476,397 $645,539,799 $280,086,900 $64,438,700 Section 8-Page 94 Go to Table of Contents Summary of Revenue Program Category This page was intentionally left blank Section 8— Page 95 Go to Table of Contents 2020-21 & 2021 -22 Budget Proposed Capital Equipment Budget 2020-21 Trucks& Other Mobile Machine Eq Comm Vehicles Eq &Tools Equipment Department 09410000 09410001 09410002 09410003 Public Affairs $ - $ - $ - $ - Risk Management/Safety/Security - - - - Information Technology - - - - Laboratory, Monitoring and Compliance - - 60,500 - Design - - - - Collection Facilities O&M - - 162,100 - Fleet Services 2,305,000 787,300 75,700 - Plant No. 1 Operations - - 109,300 - Plant No. 1 Maintenance - - 141,100 - Total Proposed Capital Equipment $ 2,305,000 $ 787,300 $ 548,700 $ - Section 8- Page 96 Go to Table of Contents Proposed Capital Equipment Budget Summary Proposed Capital Equipment Budget 2020-21 Instr/Test Safety& Office Fix& Computer 2020-21 Equipment Traffic Eq Eq Equipment Proposed Department 09410004 09410005 09410006 09410007 Budget Public Affairs $ - $ - $ - $ 70,000 $ 70,000 Risk Management/Safety/Security - - - 27,000 27,000 Information Technology - - - 15,000 15,000 Laboratory, Monitoring and Compliance 919,000 - - - 979,500 Design 21,600 - - - 21,600 Collection Facilities O&M 15,400 - - - 177,500 Fleet Services - - - - 3,168,000 Plant No. 1 Operations 239,000 - - 34,300 382,600 Plant No. 1 Maintenance 79,500 - - - 220,600 Total Proposed Capital Equipment $1,274,500 $ - $ - $ 146,300 $5,061,800 Section 8—Page 97 Go to Table of Contents 2020-21 & 2021 -22 Budget Proposed Capital Equipment Budget Detail Proposed Capital Equip. Division Equipment Type Budget 140 - Public Affairs Digital Messaging System $ 70,000 Total 70,000 161 - Risk Management/Safety/Security myCority 27,000 Total 27,000 250 - Information Technology DJI Phantom 4 RTK 15,000 Total 15,000 630 - Laboratory, Monitoring, and Compliance Freeze Dryer 60,500 Triple Quadrupole Gas Chromatography Mass Sectrometry(GC-MS)Systems 350,000 GC-SDC 77,000 Hot Block Digestem System 33,000 Humdified Incubators (2) 34,800 Acoustic Doppler Current Profiler(ADCP) 49,200 Phytoplankton Autosampler 163,400 Ocean Acidification and Hypoxia Sensors (6) 211,600 Total 979,500 760- Design PLC Test Units 21,600 Total 21,600 820-Collection Facilities O&M Sewer Inspection Camera 14,100 Manhole CCTV Inspection Equipment 148,000 Methane Analyzer 2020 15,400 Total 177,500 822 - Fleet Services Heavy Duty Specialty Truck-Sewer Pull Rig 250,000 Combination Sewer Cleaning Truck 875,000 Heavy Duty Trucks (3) 385,000 Light Duty Trucks (6) 300,000 Medium Duty Trucks(4) 355,000 Sedans and SUVS (4) 140,000 Portable Electrical Generator- 175kW (2) 350,000 Electric Carts O&M (23) 437,300 6-Post Portable Heavy Truck Lift 75,700 Total 3,168,000 Section 8 - Page 98 Go to Table of Contents Proposed Capital Equipment Budget Detail Proposed Capital Equipment Budget Detail 870 - Plant No. 1 Maintenance Weldsale Platens with Steel Stands (4) 40,200 Industrial Walk Behind Floor Scrubber 14,200 Ruger Industries Inc., 1 Ton Shop Crane 54,900 Calibration Work Station 71,700 Motion Amplification MX High Speed Camera for IRIS-M System 23,400 Referenced High Temperature Calibration Blocks 33,500 Reference Low Tempearture Calibration Block 33,500 Rotalign Touch Laser Shaft Alignment System 30,500 SDT270DU Static/Dynamic/UAS ATEX 19,600 Beamex Multi-Calibrator 26,800 TruVu 360 Pro Software on DVD&USB Media 34,300 Total 382,600 880 - Plant No. 2 Maintenance Industrial Walk Behind Floor Scrubber 14,200 Ruger Industries Inc., 1 Ton Shop Crane 54,900 Skid Mounted Pump System (2) 72,000 Fluke Networks Fiber Optics OTDR Tester 16,300 GE Oil &Gas Dresser Flow Meter and Instrument Model 5 Prover 63,200 Total 220,600 Total Proposed 2020-21 Capital Equipment Budget $ 5,061,800 Section 8—Page 99 Go to Table of Contents 2020-21 & 2021 -22 Budget Proposed Capital Equipment Budget 2021-22 Trucks & Other Mobile Machine Eq Comm Vehicles Eq &Tools Equipment Department 09410000 09410001 09410002 09410003 Public Affairs $ - $ - $ - $ - Laboratory, Monitoring and Compliance - - - - Design - - - - Collection Facilities O&M - - - - Fleet Services 1,055,000 407,400 - - Plant No. 1 Maintenance - - 191,300 - Total Proposed Capital Equipment $ 1,055,000 $ 407,400 $ 191,300 $ - Section 8- Page 100 Go to Table of Contents Proposed Capital Equipment Budget Summary Proposed Capital Equipment Budget 2021-22 Instr/Test Safety& Office Fix& Computer 2019-20 Equipment Traffic Eq Eq Equipment Proposed Department 09410004 09410005 09410006 09410007 Budget Public Affairs $ - $ - $ - $ - $ - Laboratory, Monitoring and Compliance 842,200 - - - 842,200 Design 21,600 - - - 21,600 Collection Facilities O&M 25,000 - - 48,500 73,500 Fleet Services - - - - 1,462,400 Plant No. 1 Maintenance - - - - 191,300 Total Proposed Capital Equipment $ 888,800 $ - $ - $ 48,500 $2,591,000 Section 8— Page 101 Go to Table of Contents 2020-21 & 2021 -22 Budget Proposed Capital Equipment Budget Detail Proposed Capital Equip. Division Equipment Type Budget 630 - Laboratory, Monitoring, and Compliance Fourier Transform Infrared Sectroscopy(FTIR) $ 110,000 Triple Quadrupole GC/MS(Gas Chromatography Mass Sectrometry) 308,000 Acoustic Doppler Current Profiler(ADCP) 49,200 Phytoplankton Autosampler 163,400 Ocean Acidification and Hypoxia Sensors(6) 211,600 Total 842,200 760-Design PLC Test Units 21,600 Total 21,600 820-Collection Facilities O&M FLIR GF77a-Optical Gas Imaging Camera 48,500 Providence Photonics QL320 25,000 Total 73,500 822 - Fleet Services Heavy Duty Speciality Truck-Sewer Pull Rig 260,000 Light Duty Trucks (12) 450,000 Medium Duty Trucks(2) 135,000 Sedans&Van (Pass)(6) 210,000 Electric Carts O&M (21) 407,400 Total 1,462,400 870-Plant No. 1 Maintenance Aaladin Model 2260E Parts Washer 47,300 Pipe and Angle Bender 20,800 Quincy QGS 75 Rotary Air Compressor 123,200 Total 191,300 Total Proposed 2021-22 Capital Equipment Budget $ 2,591,000 Section 8 - Page 102 Go to Table of Contents Debt Financing Program CERTIFICATES OF PARTICIPATION District to maintain reliability and accommodate DEBT FINANCING PROGRAM future growth, as well as meet future regulatory requirements, level of service goals, and strategic A Ten-Year Financial Plan is maintained to establish initiatives. financing parameters regarding the issuance of debt, the levying of user charges and the funding level for Each project in the master plan was initiated to required reserves in accordance with the Sanitation address the impact of one or more of the main District's reserve policy. The Financial Plan is drivers (existing facilities condition, changes in revised annually to reflect the most current cost and regulations, facilities capacity, redundancy criteria, revenue figures resulting from capital program Sanitation District initiatives, and health and safety). revisions and operating changes. Most of the CIP needs for the next 20 years are due to the 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 Sanitation Figure 1 Summary of Certificates of Participation/Revenue Obligations and Notes Series 2010A Series 2010C Series 2011A Series 2012A Series Issue Name Taxable BABs Taxable BABs Refund Rev Oblig Refund Rev Oblig Issue Date 05-18-10 11-29-10 10-03-11 03-22-12 Original Par $80,000,000 $157,000,000 $147,595,000 $100,645,000 Outstanding Par $80,000,000 $157,000,000 $75,370,000 $100,645,000 Payment Date February 1 February 1 February&August 1 February 1 Use of Proceeds Current/Future CIP Current/Future CIP 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 02-01-2040 02-01-2044 02-01-2026 02-01-2031 Series 2012B Series 2014A Series 2015A Series 2016A Series Issue Name Refund Rev Oblig Refund Rev Oblig Refund Rev Oblig Refund Rev Oblig Issue Date 08-16-12 08-07-14 02-12-15 03-30-16 Original Par $66,395,000 $85,090,000 $127,510,000 $145,880,000 Outstanding Par $25,560,000 $63,930,000 $127,510,000 $141,465,000 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 02-01-2026 02-01-2027 02-01-2037 02-01-2039 Series 2017A Series 2018A Series Issue Name Refund Rev Oblig Refunding CANS Issue Date 02-01-17 11-29-18 Original Par $66,370,000 $102,200,000 Outstanding Par $66,370,000 $102,200,000 Payment Date February 1 August 15 Use of Proceeds Advance Refund Current Refund Lien or Tier Open Senior Open Senior Interest Rate Mode Fixed Fixed Final Maturity Date 02-01-2030 08-15-2021 Section 9—Page 1 Go to Table of Contents 2020-21 & 2021 -22 Budget In conjunction with preparation for the 2020-21 Dedicated Funding Source Budget, Sanitation District staff has developed and In 1992 and 2004 the Board of Directors formalized reviewed with the Board of Directors a capital the dedication of certain funding sources. To assure program to deliver the levels of service included in the continuation of favorable credit ratings, revenues the Sanitation District's 5-year Strategic Plan. were dedicated to debt service in the following order: Sanitation District staff has also validated the active 1. Ad valorem property taxes CIP projects currently being executed to ensure that 2. Sanitary sewer service charges the active project scopes of work and cost estimates 3. Other revenues were accurate. The validated CIP includes 75 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 Sanitation District embarked upon its Debt and the State Water Resources Control Board and Financing and Management Program, and in accordance with COP documents and Board specifically its Variable and Fixed Rate Debt policy. Program (the "Program"), in 1990 with the issuance of $100 million in Certificates of Participation Establishment of Debt Policy ("COP"), Capital Improvement Program, 1990 Series In 2001, the Sanitation District developed a written "A." The Program was established to: debt policy for the following underlying reasons: • Finance assets with long useful lives with long- • committing to long-term financial planning; term debt; • promoting credit quality to rating agencies; • Achieve the lowest possible interest costs and . rationalizing the decision making process; highest investment returns, commensurate with • enhancing the quality of decisions; and the appropriate risk; • promoting consistency and continuity. • Recoup reserve moneys that had previously been spent. This Board adopted policy serves as the agency's COPS are repayment obligations based on a lease guide in the management of existing debt and in the or installment sale agreement. The COP structure issuance of future debt. was selected over other structures because COPs Debt Coverage Ratios are not viewed as debt by the State of California, as The only legal debt limits pertaining to the Sanitation the purchaser does not actually receive a bond, but District are those that are provided within the rather a share in an installment sale arrangement existing COP indenture agreements requiring where the Sanitation District serves as the minimum coverage ratios of 1.25. The minimum purchaser. Accordingly, the Sanitation District is not coverage ratio is the ratio of net annual revenues subject to the usual State restrictions surrounding available for debt service requirements to total the issuance of debt. COPs can be issued with fixed annual debt service requirements for all senior lien or variable interest rates. COP debt. The coverage ratio for senior lien COP As of July 1, 2020, the total outstanding COP debt is proposed at 4.07 and 4.54 for FY 2020-21 indebtedness is$940.1 million. and FY 2021-22, respectively. Section 9— Page 2 Go to Table of Contents Debt Financing Program Build America Bonds Financings Future Financings The Sanitation District issued the $80.0 million As a result of having a prudent reserve policy, Wastewater Revenue Obligation, Series 2010A in experienced management, and prudent planning, May 2010 and the $157.0 million Wastewater the Sanitation District has been able to secure "AAA" Revenue Obligations, Series 2010C in November credit ratings from Fitch Ratings and Moody's. The 2010 as "Build America Bonds" (BABs) fixed rate Sanitation District's long-range financing plan is debt. designed to maintain these high ratings. Over the next 10 years, the Sanitation District is projecting an The American Recovery and Reinvestment Act of additional $2.7 billion in future treatment plant and 2009 created a new financing product, BABs, for the collection system capital replacement, municipal issuer. BABs are issued as higher interest refurbishment, and rehabilitation improvements. In taxable bonds; however, the U.S. Treasury provides accordance with the Sanitation District's long-term a 35 percent subsidy on interest payments. The net debt fiscal policy, the Sanitation District will confine cost, after accounting for the 35 percent subsidy long-term borrowing to capital improvements that payment, frequently results in lower net costs to the cannot be financed from current revenue. Before issuer, specifically in the maturity years beyond ten any new debt is issued, the impact of debt service years. payments on total annual fixed costs will be On March 1, 2013, the federal government analyzed. implemented certain automatic spending cuts known The Sanitation District's cash flow forecast does not as the sequester. As a result of the sequester, require any new money debt issuances over the federal subsidy payments on BABs have been next ten years as all capital improvements planned reduced annually from a high of 8.7 percent for the over this time period primarily consist of federal fiscal year ended September 30, 2013 to a replacement, refurbishment, and rehabilitation of low of 5.9 percent for the federal fiscal year ended existing projects which are to be funded through September 30, 2020. existing reserves and current sewer charges. Aggregate Debt Service Structures $300mil $250mil $200mil $150mil $100mil - $50mi1 $Omit O .-1 N M ;t U) l0 I11 a0 Ql O r-I N M i!1 lD I� DO Ql O —I N M N N N N N N N N N N M M M M M M M M M M qT -ZT � O O O O O O O O O O O O O O O O O O O O O O O O O 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 ■Existing Fixed Rate Section 9— Page 3 Go to Table of Contents 2020-21 & 2021 -22 Budget Figure 2 Schedule of Future Certificates of Participation Issues and CIP Cash Flows (in millions) 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 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 $147.6 $240.8 $294.4 $301.1 $257.1 $296.0 $346.7 $322.8 $309.3 $230.2 Section 9—Page 4 Go to Table of Contents Debt Financing Program This page was intentionally left blank. Section 9— Page 5 Go to Table of Contents 2020-21 & 2021 -22 Budget Total Certificates of Participation/Revenue Obligations and Notes Debt Service Requirements Principal and Interest Combined Fiscal 2010A 2010C 2011A 2012A 2012B 2014A Year Build America Build America Refunding Refunding Refunding Refunding Of Bonds Bonds (Partial2000 (Remain (2000-A (Partial Payments Acq./Const. Acq./Const. &2003) 2003) &2000-B) 2007B) 2020-21 2,897,639 6,523,780 3,348,350 3,735,900 18,535,650 11,046,500 2021-22 2,897,639 6,523,780 17,143,350 75,390,900 1,776,150 11,049,000 2022-23 2,897,639 6,523,780 17,093,600 869,700 1,821,150 11,046,750 2023-24 2,897,639 6,523,780 17,136,200 869,700 1,781,950 11,044,000 2024-25 2,897,639 6,523,780 17,088,450 869,700 1,818,050 11,049,750 2025-26 2,897,639 6,523,780 17,141,250 869,700 1,771,600 11,052,500 2026-27 2,897,639 6,523,780 - 869,700 - 11,051,250 2027-28 2,897,639 6,523,780 - 869,700 - - 2028-29 2,897,639 6,523,780 - 869,700 - - 2029-30 2,897,639 6,523,780 - 869,700 - - 2030-31 2,897,639 12,258,780 - 29,859,700 - - 2031-32 2,897,639 23,382,068 - - - - 2032-33 2,897,639 23,476,472 - - - - 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 - - - - 2041-42 - 13,457,728 - - - - 2042-43 - 10,305,640 - - - - 2043-44 - 2,583,168 - - - - Totals $ 129,920,132 $ 269,579,770 $ 88,951,200 $ 115,944,100 $ 27,504,550 $ 77,339,750 Section 9- Page 6 Go to Table of Contents Debt Financing Program Total Certificates of Participation /Revenue Obligations and Notes Debt Service Requirements Principal and Interest Combined Fiscal 2015A 2016A 2017A 2018A Total Year Refunding Refunding Refunding Refunding Payment Of (Partial (Partial (Remain Notes Per Payments 200713) 2009A) 2007A) (201613) Fiscal Year 2020-21 6,375,500 11,391,550 3,873,500 5,110,000 72,838,369 2021-22 6,375,500 11,389,800 3,290,750 104,755,000 240,591,869 2022-23 6,375,500 11,391,550 3,290,750 - 61,310,419 2023-24 6,375,500 11,396,050 3,290,750 - 61,315,569 2024-25 6,375,500 11,392,550 3,290,750 - 61,306,169 2025-26 6,375,500 11,390,800 3,290,750 - 61,313,519 2026-27 6,375,500 11,390,050 18,405,750 - 57,513,669 2027-28 21,615,500 11,394,550 18,365,000 - 61,666,169 2028-29 21,658,500 11,388,300 18,323,500 - 61,661,419 2029-30 20,776,250 11,391,050 19,204,500 - 61,662,919 2030-31 10,228,000 11,411,550 - - 66,655,669 2031-32 3,702,250 11,413,050 - - 41,395,007 2032-33 3,702,250 11,415,550 - - 41,491,911 2033-34 20,882,250 11,408,050 - - 58,744,979 2034-35 20,883,250 11,415,050 - - 58,891,588 2035-36 20,881,250 11,409,800 - - 59,044,994 2036-37 20,879,250 11,411,800 - - 59,200,599 2037-38 - 11,411,000 - - 38,478,543 2038-39 - 11,414,000 - - 38,646,871 203940 - - - - 27,418,848 2040-41 - - - - 22,698,216 204142 - - - - 13,457,728 204243 - - - - 10,305,640 2043-44 - - - - 2,583,168 Totals $ 209,837,250 $ 216,626,100 $ 94,626,000 $ 109,865,000 $ 1,340,193,852 Section 9-Page 7 Go to Table of Contents 2020-21 & 2021 -22 Budget Certificates of Participation/ Revenue Obligations and Notes Debt Service Requirements Annual Interest Payments Fiscal 2010A 2010C 2011A 2012A 2012B 2014A Year Build America Build America Refunding Refunding Refunding Refunding Of Bonds Bonds (Partial2000 (Remain (2000-A (Partial Payments Acq./Const. Acq./Const. &2003) 2003) &2000-B) 2007B) 2020-21 $ 2,897,639 $ 6,523,780 $ 3,348,350 $ 3,735,900 $ 1,145,650 $ 3,196,500 2021-22 2,897,639 6,523,780 3,348,350 3,735,900 276,150 2,804,000 2022-23 2,897,639 6,523,780 2,658,600 869,700 216,150 2,391,750 2023-24 2,897,639 6,523,780 2,081,200 869,700 151,950 1,959,000 2024-25 2,897,639 6,523,780 1,328,450 869,700 103,050 1,504,750 2025-26 2,897,639 6,523,780 816,250 869,700 51,600 1,027,500 2026-27 2,897,639 6,523,780 - 869,700 - 526,250 2027-28 2,897,639 6,523,780 - 869,700 - - 2028-29 2,897,639 6,523,780 - 869,700 - - 2029-30 2,897,639 6,523,780 - 869,700 - - 2030-31 2,897,639 6,523,780 - 869,700 - - 2031-32 2,897,639 6,287,068 - - - - 2032-33 2,897,639 5,581,472 - - - - 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 - - - - 2042-43 - 510,640 - - - - 2043-44 - 103,168 - - - - Totals $ 49,920,132 $ 112,579,770 $ 13,581,200 $ 15,299,100 $ 1,944,550 $ 13,409,750 Section 9— Page 8 Go to Table of Contents Debt Financing Program Certificates of Participation/ Revenue Obligations and Notes Debt Service Requirements Annual Interest Payments Fiscal 2015A 2016A 2017A 2018A Total Year Refunding Refunding Refunding Refunding Interest Of (Partial (Partial (Remain Notes Per Payments 200713) 2009A) 2007A) (201613) Fiscal Year 2020-21 $ 6,375,500 $ 6,756,550 $ 3,318,500 $ 5,110,000 $ 42,408,369 2021-22 6,375,500 6,524,800 3,290,750 2,555,000 38,331,869 2022-23 6,375,500 6,281,550 3,290,750 - 31,505,419 2023-24 6,375,500 6,026,050 3,290,750 - 30,175,569 2024-25 6,375,500 5,757,550 3,290,750 - 28,651,169 2025-26 6,375,500 5,475,800 3,290,750 - 27,328,519 2026-27 6,375,500 5,180,050 3,290,750 - 25,663,669 2027-28 6,375,500 4,869,550 2,535,000 - 24,071,169 2028-29 5,613,500 4,543,300 1,743,500 - 22,191,419 2029-30 4,811,250 4,201,050 914,500 - 20,217,919 2030-31 4,013,000 3,841,550 - - 18,145,669 2031-32 3,702,250 3,463,050 - - 16,350,007 2032-33 3,702,250 3,065,550 - - 15,246,911 2033-34 3,702,250 2,648,050 - - 14,084,979 2034-35 2,843,250 2,210,050 - - 12,061,588 2035-36 1,941,250 1,749,800 - - 9,939,994 2036-37 994,250 1,266,800 - - 7,715,599 2037-38 - 861,000 - - 5,483,543 2038-39 - 439,000 - - 4,191,871 2039-40 - - - - 2,843,848 2040-41 - - - - 1,893,216 204142 - - - - 1,027,728 2042-43 - - - - 510,640 2043-44 - - - - 103,168 Totals $ 82,327,250 $ 75,161,100 $ 28,256,000 $ 7,665,000 $ 400,143,852 Section 9—Page 9 Go to Table of Contents 2020-21 & 2021 -22 Budget Certificates of Participation/ Revenue Obligations and Notes Debt Service Requirements Annual Principal Payments Fiscal 2010A 2010C 2011A 2012A 2012B 2014A Year Build America Build America Refunding Refunding Refunding Refunding Of Bonds Bonds (Partial2000 (Remain (2000-A (Partial Payments Acq./Const. Acq./Const. &2003) 2003) &2000-B) 2007B) 2020-21 $ - $ - $ - $ - $ 17,390,000 $ 7,850,000 2021-22 - - 13,795,000 71,655,000 1,500,000 8,245,000 2022-23 - - 14,435,000 - 1,605,000 8,655,000 2023-24 - - 15,055,000 - 1,630,000 9,085,000 2024-25 - - 15,760,000 - 1,715,000 9,545,000 2025-26 - - 16,325,000 - 1,720,000 10,025,000 2026-27 - - - - - 10,525,000 2027-28 - - - - - - 2028-29 - - - - - - 2029-30 - - - - - - 2030-31 - 5,735,000 - 28,990,000 - - 2031-32 - 17,095,000 - - - - 2032-33 - 17,895,000 - - - - 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 - - - - 2042-43 - 9,795,000 - - - - 2043-44 - 2,480,000 - - - - Totals $ 80,000,000 $ 157,000,000 $ 75,370,000 $ 100,645,000 $ 25,560,000 $ 63,930,000 Section 9-Page 10 Go to Table of Contents Debt Financing Program Certificates of Participation/ Revenue Obligations and Notes Debt Service Requirements Annual Principal Payments Fiscal 2015A 2016A 2017A 2018A Total Year Refunding Refunding Refunding Refunding Principal Of (Partial (Partial (Remain Notes Per Payments 200713) 2009A) 2007A) (201613) Fiscal Year 2020-21 $ - $ 4,635,000 $ 555,000 $ - $ 30,430,000 2021-22 - 4,865,000 - 102,200,000 202,260,000 2022-23 - 5,110,000 - - 29,805,000 2023-24 - 5,370,000 - - 31,140,000 2024-25 - 5,635,000 - - 32,655,000 2025-26 - 5,915,000 - - 33,985,000 2026-27 - 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 - - 25,045,000 2032-33 - 8,350,000 - - 26,245,000 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 203940 - - - - 24,575,000 2040-41 - - - - 20,805,000 2041-42 - - - - 12,430,000 2042-43 - - - - 9,795,000 2043-44 - - - - 2,480,000 Totals $ 127,510,000 $ 141,465,000 $ 66,370,000 $ 102,200,000 $ 940,050,000 Section 9- Page 11 Go to Table of Contents 2020-21 & 2021 -22 Budget This page was intentionally left blank. Section 9— Page 12 Go to Table of Contents Staffing Allocation Staffing by Department Total 639 FTE General Manager's Office Operations & 18 FTE Maintenance Human Resources 284 FTE 26 FTE Administrative Sevices 101 FTE _ Environmental Engineering Services 117 FTE 93 FTE Staffing by Category Supervisory 10.5% Technical Services 4.5% Professional / Administrative 8.1/o 36.5% Division Management 2.2% Engineering 3.6% Executive Management 1.1% Part Time 0.2% Operations& Maintenance 33.3% Section 10- Page 1 Go to Table of Contents 2020-21 & 2021 -22 Budget Historical Staffing By Department 300 250 200 W u- 150 100 50 0 2017-18 2018-19 2019-20 2020-21 2021-22 Fiscal Year ■General Manager's Office Human Resources Administrative Services Environmental Services Engineering m Operations & Maintenance Total Historical Staffing 650 640.00 639.00 639.00 640 635.00 636.00 w 630 620 610 2017-18 2018-19 2019-20 2020-21 2021-22 Fiscal Year Section 10— Page 2 Go to Table of Contents Staffing Allocation Authorized Authorized Authorized Proposed Proposed Department and Division Name FTEs FTEs FTEs FTEs FTEs 2017-18 2018-19 2019-20 2020-21 2021-22 General Manager's Office General Management Administration 5.00 4.00 4.00 5.00 5.00 Board Services 5.00 5.00 5.00 7.00 7.00 Public Affairs 5.00 5.00 6.00 6.00 6.00 Department Subtotal* 15.00 14.00 15.00 18.00 18.00 Human Resources Department Human Resources Administration 16.00 16.00 16.00 16.00 16.00 Risk Management/Safety/Security 11.00 11.00 11.00 10.00 10.00 Department Subtotal 27.00 27.00 27.00 26.00 26.00 Administrative Services Department Administrative Services Administration 3.00 3.00 3.00 1.00 1.00 Financial Management 19.00 19.00 19.00 24.00 24.00 Contracts, Purchasing and Materials Management 32.00 32.00 32.00 31.00 31.00 Information Technology 45.00 46.00 47.00 45.00 45.00 Department Subtotal 99.00 100.00 101.00 101.00 101.00 Envrionmental Services Department Environmental Services Administration 2.00 2.00 2.00 2.00 2.00 Resource Protection 37.00 37.00 37.00 37.00 37.00 Laboratory, Monitoring and Compliance 52.00 52.00 53.00 54.00 54.00 Department Subtotal 91.00 91.00 92.00 93.00 93.00 Engineering Department Engineering Administration 2.00 2.00 3.00 5.00 5.00 Planning 15.00 14.00 18.00 15.00 15.00 Project Management 17.00 16.00 17.00 21.00 21.00 Design 53.00 54.00 52.00 36.00 36.00 Construction Management 29.00 30.00 31.00 40.00 40.00 Environmental Compliance - - - - - Department Subtotal 116.00 116.00 121.00 117.00 117.00 Operations and Maintenance Department Operations and Maintenance Administration 3.00 3.00 2.00 3.00 3.00 Collection Facilities Operations and Maintenance 26.00 26.00 26.00 29.00 29.00 Fleet Services 8.00 8.00 8.00 8.00 8.00 Plant No. 1 Operations 61.00 62.00 62.00 54.00 54.00 Plant No.2 Operations 51.00 50.00 50.00 52.00 52.00 Plant No. 1 Maintenance 62.00 61.00 86.00 85.00 85.00 Maintenance Reliability and Planning 28.00 28.00 - - - Plant No.2 Maintenance 48.00 50.00 50.00 53.00 53.00 Environmental Laboratory and Ocean Monitoring - - - - - Department Subtotal 287.00 288.00 284.00 284.00 284.00 Grand Total -All Departments* 635.00 636.00 640.00 639.00 639.00 Section 10- Page 3 Go to Table of Contents 2020-21 & 2021 -22 Budget Authorized Authorized Authorized Proposed Proposed FTEs FTEs FTEs FTEs FTEs Division & Position 2017-18 2018-19 2019-20 2020-21 2021-22 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 2.00 2.00 Public Affairs Manager - - - - - Principal Staff Analyst 1.00 1.00 1.00 - Records Management Specialist 1.00 - - - - Administration Manager - - - 1.00 1.00 Secretary to the General Manager 1.00 1.00 1.00 1.00 1.00 Total General Management Administration" 5.00 4.00 4.00 5.00 5.00 120 Board Services Clerk of the Board 1.00 1.00 1.00 1.00 1.00 Records Management Specialist - - - 1.00 1.00 Deputy Clerk of the Board 1.00 1.00 1.00 - - Assistant Clerk of the Board - - - 1.00 1.00 Data Management Technician I - - - 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 1.00 Total Board Services 5.00 5.00 5.00 7.00 7.00 140 Public Affairs Administrative Manager - - 1.00 - - Public Affairs Supervisor 1.00 1.00 - - - Principal Public Affairs Specialist - - 1.00 1.00 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 2.00 2.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Graphics Designer - 1.00 1.00 1.00 1.00 Graphics Coordinator 1.00 - - - - Total Public Affairs 5.00 5.00 6.00 6.00 6.00 Total General Manager's Office 15.00 14.00 15.00 18.00 18.00 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 1.00 1.00 Human Resources Manager - - - - - Human Resources Supervisor - 2.00 2.00 2.00 2.00 Principal Human Resources Analyst 2.00 2.00 2.00 2.00 2.00 Senior Human Resources Analyst 5.00 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 2.00 2.00 2.00 2.00 Program Assistant 2.00 - - - - 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 - - Safety& Health Specialist 1.00 1.00 2.00 2.00 2.00 Security& Emergency Planning Specialist 1.00 1.00 1.00 1.00 1.00 Occupational Health Nurse 1.00 1.00 1.00 - - Senior Safety& Health Representative 2.00 2.00 1.00 2.00 2.00 Senior Construction Inspector - - 1.00 1.00 Safety& Health Representative 3.00 3.00 3.00 2.00 2.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Total Risk Management/Safety/Security 11.00 11.00 11.00 10.00 10.00 Total Human Resources Department 27.00 27.00 27.00 26.00 26.00 Section 10- Page 4 Go to Table of Contents Historical Staffing Detail Authorized Authorized Authorized Proposed Proposed FTEs FTEs FTEs FTEs FTEs Division &Position 2017-18 2018-19 2019-20 2020-21 2021-22 Administrative Services Department 210 Administrative Services Administration Director of Finance&Administrative Services/Trez 1.00 1.00 1.00 - - Assistant General Manager - - Principal Financial Analyst 1.00 - - - - Principal Staff Analyst - 1.00 1.00 - - Administrative Assistant 1.00 1.00 Executive Assistant 1.00 1.00 1.00 - - Total Administrative Services Administration 3.00 3.00 3.00 1.00 1.00 220 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 2.00 2.00 2.00 2.00 2.00 Principal Project Controls Analyst 1.00 1.00 Principal Staff Analyst 4.00 4.00 Senior Accountant 2.00 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 - - - - Payroll Technician 2.00 2.00 2.00 2.00 2.00 Accounting Assistant II 5.00 6.00 6.00 6.00 6.00 Total Financial Management 19.00 19.00 19.00 24.00 24.00 230 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 1.00 Contracts Administrator 3.00 3.00 3.00 3.00 3.00 Senior Buyer 1.00 3.00 2.00 2.00 2.00 Buyer 3.00 2.00 2.00 2.00 2.00 Contracts/Purchasing Assistant 5.00 5.00 5.00 4.00 4.00 Senior Staff Analyst 1.00 1.00 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 4.00 4.00 Total Contracts, Purchasing and Materials Mana 32.00 32.00 32.00 31.00 31.00 250 Information Technology Information Technology Systems and Operations M 1.00 1.00 1.00 1.00 1.00 Information Technology Supervisor 3.00 3.00 3.00 3.00 3.00 Principal Information Technology Analyst 6.00 7.00 7.00 7.00 7.00 Senior Information Technology Analyst 10.00 10.00 10.00 10.00 10.00 Information Technology Analyst III 6.00 6.00 7.00 8.00 8.00 Records Management Specialist - 1.00 1.00 - - Data Management Technician II 7.00 7.00 7.00 6.00 6.00 Information Technology Analyst II 3.00 3.00 3.00 3.00 3.00 Data Management Technician 1 4.00 4.00 4.00 3.00 3.00 Staff Analyst 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 2.00 2.00 Information Technology Technician 1 1.00 1.00 1.00 - - Program Assistant 1.00 - - - - Total Information Technology 45.00 46.00 47.00 45.00 45.00 Total Administrative Services Department 99.00 100.00 101.00 101.00 101.00 Section 10- Page 5 Go to Table of Contents 2020-21 & 2021 -22 Budget Authorized Authorized Authorized Proposed Proposed FTEs FTEs FTEs FTEs FTEs Division &Position 2017-18 2018-19 2019-20 2020-21 2021-22 Envrionmental Services Department 610 Environmental Services Administration Director of Environmental Services 1.00 1.00 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 1.00 Total Environmental Services Administration 2.00 2.00 2.00 2.00 2.00 620 Resource Protection Engineering Manager 1.00 1.00 1.00 1.00 1.00 Environmental Compl &Reg Affairs Manager - - - - - Engineering Supervisor 2.00 2.00 2.00 2.00 2.00 Environmental Supervisor - - - - - Senior Engineer 1.00 2.00 2.00 2.00 2.00 Senior Regulatory Specialist - - - - - Engineer 5.00 4.00 4.00 5.00 5.00 Source Control Supervisor 1.00 1.00 1.00 1.00 1.00 Regulatory Specialist - - - - - Associate Engineer 3.00 3.00 3.00 2.00 2.00 Principal Environmental Specialist 3.00 3.00 3.00 3.00 3.00 Lead Source Control Inspector 1.00 1.00 1.00 1.00 1.00 Senior Environmental Specialist 1.00 1.00 1.00 1.00 1.00 Source Control Inspector II 7.00 7.00 7.00 6.00 6.00 Source Control Inspector 1 2.00 2.00 2.00 3.00 3.00 Administrative Assistant 2.00 2.00 2.00 2.00 2.00 Environmental Technician 3.00 3.00 3.00 3.00 3.00 Program Assistant 4.00 4.00 4.00 4.00 4.00 Office Assistant 1.00 1 1.00 1.00 1.00 1.00 Total Resource Protection 37.00 37.00 37.00 37.00 37.00 630 Laboratory, Monitoring and Compliance Environmental Lab&Ocean Monitoring Manager 1.00 1.00 1.00 1.00 1.00 Environmental Supervisor 4.00 4.00 4.00 4.00 4.00 Laboratory Supervisor - - - - - Senior Regulatory Specialist 1.00 1.00 2.00 2.00 2.00 Senior Scientist 3.00 3.00 3.00 3.00 3.00 Regulatory Specialist 2.00 3.00 3.00 3.00 3.00 Scientist 1.00 1.00 1.00 2.00 2.00 Associate Engineer 1.00 1.00 1.00 - - Principal Environmental Specialist 8.50 8.00 8.00 9.00 9.00 Principal Laboratory Analyst - - - - - Senior Environmental Specialist 18.50 18.00 18.00 18.00 18.00 Boat Captain 1.00 1.00 1.00 1.00 1.00 Senior Laboratory Analyst - - - - - Environmental Specialist 7.00 7.00 7.00 7.00 7.00 Laboratory Analyst - - - - - Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Environmental Technician 3.00 3.00 3.00 3.00 3.00 Laboratory Assistant - - - - - Total Laboratory, Monitoring and Compliance 52.00 52.00 53.00 54.00 54.00 Total Environmental Services Department 91.00 91.00 92.00 93.00 93.00 Section 10- Page 6 Go to Table of Contents Historical Staffing Detail Authorized Authorized Authorized Proposed Proposed FTEs FTEs FTEs FTEs FTEs Division &Position 2017-18 2018-19 2019-20 2020-21 2021-22 Engineering Department 710 Engineering Administration Administrative Assistant - - - 1.00 1.00 Assistant General Manager - 1.00 1.00 - - Director of Engineering 1.00 - 1.00 1.00 1.00 Principal Staff Analyst 1.00 1.00 Senior Staff Analyst 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 1.00 Total Engineering Administration 2.00 2.00 3.00 5.00 5.00 740 Planning Engineering Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 2.00 2.00 2.00 2.00 2.00 Senior Engineer 3.00 3.00 3.00 2.00 2.00 Engineer 3.00 3.00 6.00 7.00 7.00 Principal Financial Analyst 1.00 - - - - Principal Staff Analyst 1.00 2.00 2.00 1.00 1.00 Associate Engineer 2.00 1.00 2.00 1.00 1.00 Engineering Associate 1.00 1.00 1.00 1.00 1.00 Senior Staff Analyst - - - - - Administrative Assistant 1.00 1.00 1.00 - - Total Planning 15.00 14.00 18.00 15.00 15.00 750 Project Management Engineering Manager 1.00 1.00 1.00 1.00 1.00 CIP Project Manager - - - 1.00 1.00 Engineering Supervisor - 1.00 1.00 2.00 2.00 Capital Improvement Program Project Manager 9.00 9.00 9.00 - 9.00 Senior Engineer 1.00 1.00 2.00 11.00 2.00 Principal Project Controls Analyst 1.00 1.00 1.00 - - Engineer - - - 3.00 3.00 Engineering Associate 1.00 1.00 Principal Staff Analyst 2.00 2.00 2.00 - - Cost Estimator - - - - - Planner/Scheduler - - - - - Assoicate Engineer - - - 1.00 1.00 Engineering Assistant II 1.00 - - - - Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Office Assistant 1.00 - - - - Total Project Management Office 17.00 16.00 17.00 21.00 21.00 760 Design Engineering Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 5.00 4.00 4.00 4.00 4.00 Senior Engineer 7.00 7.00 7.00 12.00 12.00 Construction Inspection Supervisor 2.00 2.00 2.00 - - Engineer 13.00 13.00 13.00 8.00 8.00 Senior Cost Estimator - 1.00 1.00 - - Senior Planner/Scheduler - 1.00 1.00 - - Associate Engineer 3.00 4.00 4.00 2.00 2.00 Cost Estimator 1.00 - - - - Planner/Scheduler 1.00 - - - - Senior Construction Inspector 5.00 5.00 5.00 - - Assistant Engineer 1.00 - - - - Engineering Associate 1.00 1.00 1.00 - - Senior Staff Analyst 2.00 2.00 1.00 - - Construction Inspector 5.00 6.00 6.00 - - Engineering Assistant II 3.00 4.00 4.00 - - Section 10- Page 7 Go to Table of Contents 2020-21 & 2021 -22 Budget Authorized Authorized Authorized Proposed Proposed FTEs FTEs FTEs FTEs FTEs 2017-18 2018-19 2019-20 2020-21 2021-22 Information Tech Analyst II - - - 1.00 1.00 Information Tech Analyst III - - - 1.00 1.00 Administrative Assistant 2.00 2.00 2.00 1.00 1.00 Principal Info Tech Analyst 3.00 3.00 Senior Info Tech Analyst 3.00 3.00 Engineering Assistant 1 1.00 1.00 - - - Total Civil and Mechanical Engineering 53.00 54.00 52.00 36.00 36.00 770 Construction Management Engineering Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 2.00 2.00 2.00 2.00 2.00 Senior Construction Insp Supv 1.00 1.00 1.00 - - Senior Engineer 6.00 6.00 7.00 2.00 2.00 Principal Info Tech Analyst 4.00 4.00 4.00 - - Engineer 4.00 4.00 4.00 5.00 5.00 Senior Info Tech Analyst 3.00 3.00 3.00 - - Information Tech Analyst III 1.00 1.00 1.00 - - Senior Construction Inspector 2.00 3.00 3.00 7.00 7.00 Information Tech Analyst 11 1.00 1.00 1.00 - - Construction Insp Supervisor 3.00 3.00 Construction Inspector 4.00 3.00 3.00 9.00 9.00 Engineering Assistant 11 4.00 4.00 Senior Cost Estimator 1.00 1.00 Senior Planner/Scheduler 1.00 1.00 Planner/Scheduler 1.00 1.00 Associate Engineer 2.00 2.00 Administrative Assistant - 1.00 1.00 2.00 2.00 Total Electrical and Control Systems Engineering 29.00 30.00 31.00 40.00 40.00 Total Engineering Department 116.00 116.00 121.00 117.00 117.00 Operations and Maintenance Department 810 Operations and Maintenance Administration Director of Operations& Maintenance 1.00 1.00 - 1.00 1.00 Senior Staff Analyst 1.00 1.00 1.00 1.00 1.00 Staff Analyst 1.00 1.00 1.00 1.00 1.00 Total Operations and Maintenance Administratio 3.00 3.00 2.00 3.00 3.00 820 Collection Facilities Operations and Maintenance Engineering Manager 1.00 1.00 1.00 - - Maintenance Manager 1.00 1.00 Maintenance Supervisor 2.00 2.00 2.00 1.00 1.00 Lead Mechanic 5.00 5.00 5.00 5.00 5.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Senior Mechanic 8.00 8.00 8.00 7.00 7.00 Mechanic 8.00 8.00 8.00 8.00 8.00 Sr Environmental Specialist 1.00 1.00 Senior Engineer 1.00 1.00 Pr Environmental Specialist 1.00 1.00 Maintenance Supervisor 1.00 1.00 Environmental Technician 1.00 1.00 Office Assistant 1.00 1.00 1.00 1.00 1.00 Total Collection Facilities Operations and Mainte 26.00 26.00 26.00 29.00 29.00 822 Fleet Services Maintenance Supervisor 1.00 1.00 1.00 1.00 1.00 Lead Mechanic 1.00 1.00 1.00 1.00 1.00 Automotive/Heavy Equipment Technician 3.00 3.00 3.00 4.00 4.00 Mobile Crane Operator 2.00 2.00 2.00 2.00 2.00 Automotive/Heavy Equipment Assistant 1.00 1.00 1.00 - I - Total Fleet Services 8.00 8.00 8.00 8.00 8.00 Section 10- Page 8 Go to Table of Contents Historical Staffing Detail Authorized Authorized Authorized Proposed Proposed FTEs FTEs FTEs FTEs FTEs Division & Position 2017-18 2018-19 2019-20 2020-21 2021-22 830 Plant No. 1 Operations Operations Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 1.00 1.00 1.00 - - Chief Plant Operator 1.00 1.00 1.00 1.00 1.00 Senior Engineer 1.00 1.00 1.00 - - Principal Information Technology Analyst - - - - - Engineer 2.00 1.00 1.00 1.00 1.00 Operations Supervisor 6.00 7.00 7.00 7.00 7.00 Principal Staff Analyst - 1.00 1.00 1.00 1.00 Control Center Operator - - - 2.00 2.00 Senior Engineer - - - 1.00 1.00 Scientist 1.00 1.00 1.00 - - Associate Engineer 2.00 2.00 2.00 2.00 2.00 Principal Environmental Specialist 1.00 1.00 1.00 - - Information Technology Analyst III - - - - - Assistant Engineer 1.00 1.00 1.00 - - Senior Environmental Specialist 1.00 1.00 1.00 - - Information Technology Analyst II - - - - - Lead Plant Operator 4.00 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 II 4.00 4.00 4.00 4.00 4.00 Senior Plant Operator 15.00 14.00 14.00 15.00 15.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Plant Operator 15.00 16.00 16.00 13.00 13.00 Environmental Technician 1.00 1.00 1.00 - - Control Center Technician 2.00 2.00 2.00 - - Total Plant No. 1 Operations 61.00 62.00 62.00 54.00 54.00 840 Plant No.2 Operations Chief Plant Operator 1.00 1.00 1.00 1.00 1.00 Operations Supervisor 7.00 7.00 7.00 7.00 7.00 Lead Plant Operator 4.00 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 II 4.00 4.00 4.00 4.00 4.00 Senior Plant Operator 14.00 14.00 14.00 13.00 13.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Plant Operator 19.00 18.00 18.00 21.00 21.00 Program Assistant - - - - - Total Plant No. 2 Operations 51.00 50.00 50.00 52.00 52.00 Section 10- Page 9 Go to Table of Contents 2020-21 & 2021 -22 Budget Authorized Authorized Authorized Proposed Proposed FTEs FTEs FTEs FTEs FTEs Division &Position 2017-18 2018-19 2019-20 2020-21 2021-22 870 Plant No. 1 Maintenance Engineering Manager - - 1.00 - - Maintenance Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor - - 1.00 - - Maintenance Superintendent 1.00 1.00 1.00 1.00 1.00 Senior Engineer - - 1.00 - - Engineer - - 1.00 1.00 1.00 Maintenance Supervisor 6.00 6.00 7.00 8.00 8.00 Associate Engineer - - 1.00 1.00 1.00 Maintenance Specialist - - 11.00 14.00 14.00 Lead Electrical Technician 3.00 3.00 3.00 3.00 3.00 Lead Heavy Equip Mechanic 1.00 1.00 1.00 - - Lead Instrumentation Technician 1.00 1.00 1.00 Maintenance Planner/Scheduler - - - - - Reliability Maintenance Technician - - 5.00 5.00 5.00 Electrical Technician II 8.00 8.00 8.00 8.00 8.00 Instrumentation Technician II 6.00 6.00 7.00 9.00 9.00 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 18.00 17.00 18.00 18.00 18.00 Senior Heavy Equip Mechanic 2.00 - - 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 2.00 2.00 2.00 Instrumentation Technician 1 3.00 3.00 2.00 1.00 1.00 Facilities Worker/Builder 2.00 2.00 2.00 2.00 2.00 Facilities Worker/Painter 1.00 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 - - - Total Plant No. 1 Maintenance 62.00 61.00 86.00 85.00 85.00 875 Maintenance Reliability and Planning 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 Maintenance Technician 5.00 5.00 - - Total Maintenance Reliability and Planning 28.00 28.00 - - - Section 10- Page 10 Go to Table of Contents Historical Staffing Detail Authorized Authorized Authorized Proposed Proposed FTEs FTEs FTEs FTEs FTEs Division & Position 2017-18 2018-19 2019-20 2020-21 2021-22 880 Plant No.2 Maintenance Maintenance Superintendent 1.00 1.00 1.00 1.00 1.00 Maintenance Supervisor 5.00 5.00 5.00 6.00 6.00 Lead Electrical Technician 2.00 2.00 2.00 2.00 2.00 Lead Instrumentation Technician 2.00 2.00 2.00 2.00 2.00 Electrical Technician II 7.00 7.00 7.00 7.00 7.00 Instrumentation Technician II 8.00 8.00 7.00 6.00 5.00 Lead Mechanic 2.00 2.00 2.00 3.00 3.00 Administrative Assistant - 1.00 1.00 1.00 1.00 Senior Mechanic 14.00 15.00 14.00 16.00 15.00 Lead Facilities Worker 1.00 1.00 1.00 1.00 1.00 Electrical Technician 1 1.00 1.00 2.00 2.00 3.00 Instrumentation Technician I - - 1.00 2.00 3.00 Facilities Worker/Builder 1.00 1.00 1.00 1.00 1.00 Facilities Worker/Painter 1.00 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 2.00 1.00 1.00 Total Plant No. 2 Maintenance 48.00 50.00 50.00 53.00 53.00 Total Operations and Maintenance Department 287.00 288.00 284.00 284.00 284.00 Grand Total,All Departments* 635.00 636.00 640.00 639.00 639.00 Section 10 - Page 11 Go to Table of Contents 2020-21 & 2021 -22 Budget This page was intentionally left blank Section 10- Page 12 Go to Table of Contents Appropriations Limit a successful override vote. 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 of Each agency also conducts a review of proceeds of taxes that state and local governmental its Appropriations Limit during its annual agencies can receive and appropriate (authorize to financial audit. 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 2020-21 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 for 2020-21. The increase in the limit is based Instead of using the lesser of California per upon population changes ranging from negative capita income, or U.S. CPI, each agency 0.77 percent to positive 0.20 percent for major may choose either the growth in the cities within the Sanitation District as provided by California per capita income, or the growth the State Department of Finance and a per capita in assessed valuation due to new non- personal income change of 3.73 percent as residential construction within OCSD. For provided by the State Department of Finance. population, instead of using only the population growth of an agency, each Annual Appropriation Limits: agency may choose to use the population 2018-19 $110,229,598 growth within its county. These are both annual elections. 2019-20 $114,427,648 2020-21 $118,695,799 The revised annual adjustment factors will As a result of the July 1998 consolidation of the be applied to the 1986-87 limit for most Sanitation District, a single limit is presented in agencies and each year in between in contrast to individual limits shown in years prior to order to calculate the 1990-91 limit. The 1998. Population changes for representative cities actual limits for the intervening years, have continued to be used in order to ensure however, are not affected. consistency and to eliminate significant population Expenditures for"qualified capital outlay", growth in parts of the County outside of the which are capital assets with a value of Sanitation District's service area. This method more than $100,000 and an expected life results in a lower limit than using the County-wide of 10 years or more, are excluded from the change. limit. An agency which exceeds the limit in any 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 Section 10-Page 13 Go to Table of Contents 2020-21 & 2021 -22 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 OCSD'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 OCSD's recommendations. Board of Directors authorizing officials to obligate and expend resources. Budget Calendar. The schedule of key dates which OCSD follows in Appropriation: preparing and adopting the budget. An authorization made by OCSD'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 granted for a one-year period. OCSD's system, directly or indirectly, or an existing structure or category of use is expanded or increased. AQMD: This charge is to pay for OCSD 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 Go to Table of Contents 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: 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:Where accounts are kept on the accrual basis of A type of debt financing in which certificates are accounting, expenses are recognized when goods issued which represent an investor's participation in are received or services rendered. Where accounts the stream of lease payments paid by the issuer. are kept on a cash basis, expenditures are COPs are secured by the lease payments. Voter 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 OCSD. 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. OCSD'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 OCSD but are Estimates of future revenues and expenditures to undetermined at a given date, such as pending law help predict the future financial condition of the suits, unsettled disputed claims, unfilled purchase community. orders, and uncompleted contracts. Contractual Services: FLSA: Personal services provided to OCSD 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 OCSD's debt instruments. Section 10— Page 15 Go to Table of Contents 2020-21 & 2021 -22 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 OCSD, the GWRS reclaims up to 100 obligations, reserves, and equities. 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 Purchases from other governments of those Uniform( iform 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 GFOA's Best Practices and Advisories: California water code. IRWD provides potable water, A listing of the Accounting, Auditing, and Financial sewer service and reclaimed (or recycled)water to its Reporting, Treasury and Investment Management, customers in Irvine and portions of Costa Mesa, Lake Budgeting and Fiscal Policy, Debt Management, Forest, Newport Beach, Orange, Tustin and unincorporated areas of Orange County. Retirement and Benefits Administration, and Economic Development and Capital Planning Section 10— Page 16 Go to Table of Contents Budget Glossary Levy: identified, that are immaterial in amount and do not (Verb) To impose taxes, special assessments, or justify reporting as separate line items. service charges for the support of governmental activities. (Noun) The total amount of taxes, special Other Charges: assessments, or service charges imposed by a Expenditures that do not fit in other categories, are government levying property taxes. immaterial in amount, and do not justify reporting as separate line items. Long-Term Debtor Long-Term Liabilities: Debt borrowed from a source outside OCSD with a Performance Measure: maturity of more than one year after the date of Represents the objectives of each department along issuance. with a target date for achieving the objective. Maintenance Employees: Performance Results: An employee group of OCSD. A summary of major accomplishments and objectives that were met during the fiscal year. Manager Employees: The group of employees who assume management Permits: responsibilities for operating divisions. Revenues earned by the issuance of permits levied in accordance with the benefits conferred by the permit. MGD: Million Gallons per Day is a measurement of water or Personnel: wastewater flow. Salaries and benefits paid to OCSD's employees. Included are items such as special duty pay, NPDES (National Pollution Discharge insurance, and retirement. Elimination System): Permit system established by the U.S. Environmental Personnel Benefits: Protection Agency to regulate discharge of treated Those benefits paid by OCSD as conditions of sewage, storm water, and urban runoff. employment. Examples include insurance and retirement benefits. Object: An expenditure classification which refers to the type Professional Employees: of item purchased or the service obtained. Examples An employee group consisting of technical experts, include personnel, supplies, or contract services. analysts, and planners. OCWD: Program: The Orange County Water District (OCWD) is a Organizational units directed to attain specific California special district that manages the purposes or objectives. groundwater basin beneath central and northern Orange County, California. Reserve: A term used to indicate that a portion of fund equity is OES: restricted for a specific purpose. State Office of Emergency Services. This agency provides state grant monies for disaster relief. Resources: Total dollars available for appropriations including Operating Engineers: estimated revenues and beginning fund equity. An employee group of OCSD. Revenue Bonds: Operating Budget: Bonds issued pledging future revenues such as The operating budget is the primary means by which sewer charges to cover debt payments. A majority most of the financing of acquisition, spending, and voter approval is required prior to bond issuance. service delivery activities of a government are controlled. Other Revenues: Revenues from sources, other than those specifically Section 10— Page 17 Go to Table of Contents 2020-21 & 2021 -22 Budget Revenue Estimate: establish the framework necessary to maintain the A formal estimate of how much revenue will be District's high level of service standards. earned from a specific revenue source for some future period, typically a fiscal year. Strategic Plan: A planning effort to define OCSD's goals, Revenue: responsibilities, and requirements over a specified Income received by OCSD to support wastewater future period. Key factors used in the planning effort treatment services. This income may be in the form include estimates for population growth, new of property taxes, fees, user charges, grants, and construction, the volume of wastewater delivered to interest. the plants, and viable water conservation and reclamation programs. Risk Register: The Risk Register is a compilation of the various Supervisory Employees: risks facing OCSD, as seen by the management An employee group whose members have team. responsibility for directing the work of line employees. Service Charges: Supplemental Appropriation: Charges for specific services rendered. An appropriation approved by the Directors after the initial budget is adopted. Service Description: A description of the services or functions provided by Supplies: each department or division. An expenditure classification for articles and commodities purchased for consumption or resale. SCADA (Supervisory Control And Data Examples include office and operating supplies, fuel, Acquisition): power, water, gas inventory, or small tools and A system for remote monitoring and control that equipment. operates with coded signals over communication channels. SWRCB: The California State Water Resources Control Board SCAQMD: (SWRCB) is one of six branches of the California The South Coast Air Quality Management District, Environmental Protection Agency. also using the acronym SCAQMD, formed in 1976, is the air pollution agency responsible for regulating Taxes: stationary sources of air pollution in the South Coast Compulsory charges levied by a government for the Air Basin, in Southern California. purpose of financing services performed for the common benefit. Secondary Treatment: A treatment process for wastewater (or sewage) to Technical Services: achieve a certain degree of effluent quality by using a Support services to OCSD's wastewater sewage treatment plant with physical phase management program through environmental separation to remove settleable solids and a sampling, analysis and research, source control of biological process to remove dissolved and industrial users, administration of compliance suspended organic compounds. programs to meet federal, state and local environmental standards; provides leadership and Significant Changes: influence in the development and implementation of This section provides an overview of the changes environmental policies, laws, and regulations. 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 OCSD's long-term commitment to excellence and that Section 10— Page 18 Go to Table of Contents Miscellaneous Statistics General Information Year of Formation ................................................1948 Miles of Sewers.................................................. 388 miles Form of Government............County Sanitation District On-Plant Pump Station............................................2 Authority..................................... Section 4700 et. seq. Off-Plant Pump Stations................................................15 ...................................California Health &Safety Code Operating Authority...............RWQCB/NPDES Permit No. Service Area............................................479 sq. miles ............................................................CA0110604 Service Population...............Approximately 2.6 million ..........................Statewide WDR Order No. 2006-0003 2019-20 Assessed Value........................$468.7 billion Authorized Staff(Full-Time Equivalent)..................639.00 Treatment Information Daily Influent Flow to Total Primary 2018-19 Influent BOD: Capacity Comparison (in MGD) Plant No. 1.........................296 milligrams per liter Plant No. 2.........................288 milligrams per liter 376 400 2018-19 Influent Suspended Solids: Plant No. 1......................... 353 milligrams per liter 300 208 168 168 Plant No. 2.........................411 milligrams per liter 200 12 2018-19 Effluent BOD.........................6 milligrams per liter 100 0 2018-19 Effluent Suspended Solids.. 10 milligrams per liter Plant 1 Plant 2 Total 2018-19 Biosolids Produced &Reused ..254,616 wet tons ■2019-20 Estimated Influent OCapacity-Primary Treatment Primary Treatment Capacity(includes standby): 2019-20 Estimated Average Daily Influent: Plant No. 1 .......................................208 MGD Plant No. 1............................................. 120 MGD Plant No. 2.......................................168 MGD Plant No. 2...............................................68 MGD TOTAL..............................376 MGD TOTAL.................................... 188 MGD Secondary Treatment Capacity: 2019-20 Estimated Electricity Generated: Plant No. 1 .......................................182 MGD Plant No. 1...................................39,778,706 kwh Plant No. 2..................................... 150 MGD Plant No. 2.................................. 59,154,981 kwh TOTAL..............................332 MGD TOTAL..........................98,933,687 kwh Legend: MGD—million gallons per day kwh—kilowatts per hour Financial Information 2018-19 2019-20 2020-21 2021-22 Actual Projected Proposed Proposed Fees and Charges: One-Time 3-Bedroom Residence Connection $4,228.00 $4,601.00 $4,973.00 $5,346.00 Average Annual Single-Family Residence Fee $335 $339 $343 $347 Local SRF Fee $108 $108 $108 $108 District's Avg.Share of Ad Valorem Property Tax 1.59% 1.60% 1.60% 1.60% Cost to Collect,Treat,&Dispose of One Million Gallons $ 2,274.73 $ 2,339.36 $2,534.40 $2,536.65 Summary of COP Issues: May 2010A New Money $ 80,000,000 August 2014A Refunding 63,930,000 November 2010C New Money 157,000,000 February 2015A Refunding 127,510,000 October 2011A Refunding 75,370,000 March 2016A Refunding 141,465,000 March 2012A Refunding 100,645,000 February 2017A Refunding 66,370,000 August 2012B Refunding 25,560,000 November 2018A Refunding 102,200,000 Total Outstanding COP Balance 7/1/20 $ 940,050,000 Section 10— Page 19