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HomeMy WebLinkAboutAdministration Committee Item 8 - Proposed Budget FY 2020-21_2021-22Orange County Sanitation District, California FISCAL YEARS 2020-2021and 2021-2022 PROPOSEDBUDGET Orange County Sanitation District, California FY 2020-21 & FY 2021-22 Proposed Budget For Fiscal Years July 1, 2020 through June 30, 2021 and July 1, 2021 through June 30, 2022 MISSION STATEMENT “To protect public health and the environment by providing effective wastewater collection, treatment, and recycling.” 2020-21 & 2021-22 Budget GFOA Budget Presentation Award 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. 2020-21 & 2021-22 Budget Table of Contents Reader's Guide to the Budget ...................................................................................................................................... i Board of Directors ...................................................................................................................................................... iii Board Committees...................................................................................................................................................... iv Orange County Sanitation District Organization Chart ............................................................................................... v Administrative Officials ............................................................................................................................................... vi General Manager's Budget Message ........................................................................................................................ vii Core Values ................................................................................................................................................................. x Section 1 – Executive Summary Executive Summary ....................................................................................................................................... 1 Section 2 - Introduction Financial Overview & Budgetary Issues ........................................................................................................ 1 Business Plan .............................................................................................................................................. 13 OCSD Long-Term Planning ......................................................................................................................... 24 Background Information and Description of Services ................................................................................. 25 Orange County at a Glance ......................................................................................................................... 25 Section 3 - Policies, Systems and Processes Fiscal Policy ................................................................................................................................................... 1 GFOA Best Practices and Advisories ............................................................................................................ 9 Overview of the Budget Process ................................................................................................................. 19 Budget Assumptions .................................................................................................................................... 21 Accounting System and Budgetary Control ................................................................................................. 25 OCSD Fund Structure Diagram ................................................................................................................... 26 Revenue Sources ........................................................................................................................................ 27 Section 4 – District Summary FY 2020-21: Where the Money Comes From .............................................................................................................. 1 Where the Money Goes .......................................................................................................................... 1 Funding Sources by Category ................................................................................................................ 2 Funding Uses by Category ..................................................................................................................... 3 FY 2021-22: Where the Money Comes From .............................................................................................................. 5 Where the Money Goes .......................................................................................................................... 5 Funding Sources by Category ................................................................................................................ 6 Funding Uses by Category ..................................................................................................................... 7 Budget Resources ......................................................................................................................................... 8 Budget Resources by Revenue Area – FY 2020-21 ................................................................................... 10 Budget Resources by Revenue Area – FY 2021-22 ................................................................................... 12 Projected Reserves ..................................................................................................................................... 14 Consolidated Cash Flow Projections ........................................................................................................... 16 Table of Contents Section 5 – Operations Overview Operations Budget Overview ......................................................................................................................... 1 Operations Summary/Comparisons by Department ...................................................................................... 2 Expense by 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 General Management Administration ............................................................................................................ 1 Board Services .............................................................................................................................................. 5 Public Affairs ……………………………………………………… ..................................................................... 9 HUMAN RESOURCES Human Resources Administration ............................................................................................................... 13 Risk Management/Safety/Security………………………………………….. .................................................. 17 FINANCE AND ADMINISTRATIVE SERVICES Administrative Services Administration ....................................................................................................... 21 Financial Management ................................................................................................................................ 25 Contracts, Purchasing, and Materials Management ................................................................................... 29 InformationTechnology……………………………………………………………………………………………. 33 ENVIRONMENTAL SERVICES Environmental Services Administration ....................................................................................................... 37 Resource Protection .................................................................................................................................... 41 Laboratory, Monitoring & Compliance ......................................................................................................... 45 ENGINEERING Engineering Administration .......................................................................................................................... 49 Planning ....................................................................................................................................................... 53 Project Management ................................................................................................................................... 57 Design .......................................................................................................................................................... 61 Construction Management .......................................................................................................................... 65 OPERATIONS & MAINTENANCE Operations & Maintenance Administration .................................................................................................. 69 Collection Facilities Operations & Maintenance .......................................................................................... 73 Fleet Services .............................................................................................................................................. 77 Plant No. 1 Operations ................................................................................................................................ 81 Plant No. 2 Operations ................................................................................................................................ 85 Plant No. 1 Maintenance ............................................................................................................................. 89 Plant No. 2 Maintenance ............................................................................................................................. 93 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 Project Summary - FY 2020-21 ..................................................................................................................... 4 Capital Improvement Expenditure Graphs by Process and Type - FY 2020-21 ........................................... 5 Project Summary - FY 2021-22 ..................................................................................................................... 6 Capital Improvement Expenditure Graphs by Process and Type - FY 2021-22 ........................................... 7 Summary of Capital Requirements ................................................................................................................ 8 CIP Project 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 Debt Financing Program ................................................................................................................................ 1 Debt Service Requirements - Principal & Interest ......................................................................................... 6 Debt Service Requirements - Interest Payments .......................................................................................... 8 Debt Service Requirements - Principal Payments ...................................................................................... 10 Section 10 - Appendix Staffing by Department - Graph ..................................................................................................................... 1 Staffing by Category - Graph ......................................................................................................................... 1 Historical Staffing by Department - Graph ..................................................................................................... 2 Total Historical Staffing - Graph .................................................................................................................... 2 Historical Staffing Summary .......................................................................................................................... 3 Historical Staffing Detail ................................................................................................................................ 4 Appropriations Limit ..................................................................................................................................... 13 Budget Glossary .......................................................................................................................................... 14 Miscellaneous Statistics .............................................................................................................................. 19 Service Area Population Information ........................................................................................................... 20 Index ............................................................................................................................................................ 21 Reader’s Guide to the Budget i Reader’s Guide to the Budget This guide is intended to help the reader understand what information is available in the budget and how it is organized. This budget document is broken down into ten sections including a Budget Glossary and Index. The Administrative Services Department invites your suggestions on ways to make the budget document more understandable. The General Manager’s Budget Message and a summary of the District’s Core Values follow this guide. The General Manager’s budget message introduces the budget to the reader. Following is an explanation of the major sections of this budget: Section 1 – Executive Summary The Executive Summary highlights critical issues and financial information regarding the District’s FY 2020-21 & FY 2021-22 Budget. Section 2 – Introduction •Financial Overview and Budget Issues - Thissection highlights the issues impacting the FY 2020-21 & FY 2021-22 Budget. Section 3 – Policies and Practices •Fiscal Policies describe the District’s financialgoals along with policies addressing theoperating budget; revenues and expenses;service fees; capital improvement program; long- and short-term debt; reserves;investments; and accounting, auditing and financial reporting. •GFOA Recommended Practices lists all of theAccounting, Auditing, and Financial Reporting;Cash Management; Governmental Budgetingand Fiscal Policy; Debt Management; andRetirement and Benefits Administrationpractices that are recommended by the Government Finance Officers Association ofthe United States and Canada. Included within this list of best financial practices for states andlocal governments is the District’s status as towhether we are in compliance, in progresstowards compliance, or whether the practice isapplicable to this agency. •The Budget Process provides an overview of the budget development process and budget calendar. •Budget Assumptions are decided on as a foundation for developing the budget, and they guide OCSD in determining the level of wastewater treatment services that will be provided to the community. •Accounting Systems and Budgetary Control provides an overview of the District’s accounting systems and the level at which budgetary control is maintained. Section 4 - District Summary This summary section is a comprehensive overview of the FY 2020-21 & FY 2021-22 Budget with a focus on all consolidated District funds. Included are tables and graphs for both revenues and expenses. Section 5 – Operations Overview This section is a comprehensive overview of the District’s operating costs and related revenues for FY 2020-21 and FY 2021-22. The District’s operations include collection, treatment, and disposal activities. Tables are included for revenues and expenses to assist the reader in interpreting the data. Section 6 – Operating Divisions This section includes operating programs for the District’s basic organizational units which provide collection and essential wastewater treatment services to the community. Divisional budgets are presented in the following format: •Organization Chart - An organization chart byposition is provided for each division. •Authorized FTE Positions- The total numberof full-time equivalent positions assigned toeach division is included in this table. •Staffing Trends - A multi-year staffing trendchart is provided to show the changes thathave occurred in each division over time. •Service Description - A description of theservices or functions provided by each division. •2019-20 Performance Objectives - Thissection represents the objectives defined by thedivision for the previous fiscal year. 2020-21 & 2021-22 Budget ii •2019-20 Performance Results - A summary ofmajor accomplishments and objectives thatwere actually met during the previous fiscalyear. •2020-21 & 2021-22 Performance Objectives -A list of projected goals to be accomplishedduring the 2020-21 and 2021-22 fiscal years. •Performance Measures - A listing of themeasures that will be used to evaluate thesuccess of the budgeted fiscal years. •Budget Overview - This section provides anoverview of changes from the FY 2019-20Budget to the FY 2020-21 & FY 2021-22Budget. Additionally, the significant impacts ofbudgetary changes are outlined along withdollar amounts. •Expenses by Category - A chart comparingthe FY 2018-19 actual expenses and theFY 2019-20 budgeted and projected expensesagainst the proposed budget for FY 2020-21 & FY 2021-22. The percent change from theFY 2019-20 Budget compared to the FY 2020- 21 Budget is also included. •Expenditure Trends - This graph provides a multi-year historical trend of divisionalexpenses. 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. Section 10 – Appendix •Staffing - Includes charts of staffing bydepartment and category, charts of thehistorical staffing by department, a historicalsummary and detail schedules of authorizedpositions and full-time equivalent employees bydepartment and by division. •Appropriations Limit - The calculation of theDistrict’s California Constitutional appropriationlimit. •Budget Glossary •Miscellaneous Statistics •Service Area Population Information •Index OCSD Board of Directors iii 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 2020-21 & 2021-22 Budget iv Board Committees STEERING COMMITTEE David Shawver, Board Chair John Withers, Board Vice-Chair Chad Wanke, Chair, Administration Committee Robert Collacot, Chair, Operations Committee Peter Kim, LaPA Committee Glen Parker, Member-At-Large Tim Shaw, Member-At-Large ADMINISTRATION COMMITTEE Chad Wanke, Chair Richard Murphy, Vice-Chair James Ferryman Cecilia Iglesias Peter Kim Mark Murphy Steve Nagel Andrew Nguyen Glenn Parker Erik Peterson Christina Shea David Shawver, Board Chair John Withers, Board Vice-Chair OPERATIONS COMMITTEE Robert Collacott, Chair Mariellen Yarc, Vice-Chair Brad Avery Allan Bernstein Doug Chaffee Brooke Jones Steve Jones Lucille Kring Sandra Massa-Lavitt Tim Shaw Jesus J. Silva Fred Smith David Shawver, Board Chair John Withers, Board Vice-Chair LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE Peter Kim, Board Chair Allan Bernstein, Board Vice-Chair Lucille Kring, Member-At-Large Erik Peterson, Member-At-Large Christina Shea, Member-At-Large David Shawver, Board Chair John Withers, Board Vice-Chair District’s Organizational Chart v General Manager Board of Directors General Counsel Office AssistantGeneral Manager AssistantGeneral Manager General Manager Office(18 FTEs) Human Resources(26 FTEs) Administrative Services(101 FTEs) Environmental Services(93 FTEs) Engineering (117 FTEs) Operations & Maintenance(284 FTE’s) GeneralManagementAdministration Board Services Public Affairs Human ResourcesAdministration Risk Management/Safety/Security AdministrativeServices FinancialManagement Contracts, Purchasing &MaterialsManagement InformationTechnology EnvironmentalServicesAdministration ResourceProtection Laboratory,Monitoring &Compliance EngineeringAdministration Planning ProjectManagement Design Construction Management Operations &MaintenanceAdministration CollectionsFacilitiesOperations &Maintenance Fleet Services Plant No. 1Operations Plant No. 2Operations Plant No. 1Maintenance Plant No. 2Maintenance 2020-21 & 2021-22 Budget vi 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 vii viii ix Mission, Vision and Core Values x 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 forwastewater, 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 RESPECTWe 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 SOLVINGWe strive to reach OCSD goals through cooperative efforts and collaboration with each other and ourconstituencies. We work to solve problems in a creative, cost-effective and safe manner, and weacknowledge team and individual efforts. •LEADERSHIP and COMMITMENTWe lead by example, acknowledging the value of our resources and using them wisely and safely to achieveour 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 AbilitiesWe continuously develop ourselves, enhancing our talents, skills, and abilities, knowing that only throughpersonal growth and development will we continue to progress as an agency and as individuals. •RECOGNITION/REWARDSWe seek to recognize, acknowledge and reward contributions to OCSD by our many talented employees. Executive Summary Section 1 - Page 1 This FY 2020-21 and FY 2021-22 budget represents a consolidation of two one-year proposed operating and capital budgets. OCSD’s FY 2020-21 operating and capital improvement budget is proposed at $400.2 million, a 0.1 percent decrease over the prior year budget of $400.8 million. This overall decrease is primarily attributable to a decrease of $5.7 million in net Capital Improvement Program (CIP) Outlay, and $5.6 million increase in operating costs. OCSD’s FY 2021-22 operating and capital improvement budget is proposed at $661.5 million, a 65.3 percent increase from the FY 2020-21 proposed budget. There is an additional $173.9 set aside in the 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 construction projects. The fluctuation in capital outlay requirements over the next two years is attributable to the timing of the construction schedule on the implementation of the overall combined ten-year, $2.7 billion CIP. The table below summarizes the District’s funding requirements: This FY 2020-21 and FY 2021-22 budget continues to reflect the agency’s ongoing efforts to streamline operations. Staffing levels are being proposed at 639.0 full time equivalent (FTE) positions, a decrease of 1.0 FTE position, or 0.1 percent over the 640.0 FTE staffing level that was approved for FY 2019-20. Additionally, service level increases in ocean monitoring, discharge and treatment, water reclamation and conservation, urban runoff diversions, biosolids management, CIP expansion, and aging infrastructure costs have resulted in a corresponding increase in cash flow requirements. Considering the CIP alone, the $147.6 million and $240.8 million proposed CIP outlay for FY 2020-21 and FY 2021-22 is part of the $5.8 billion for active and future projects identified within the recently completed Annual CIP Validation Process. OCSD has a variety of revenue sources available to fund its operating and capital outlay requirements. As shown in the table below, OCSD’s major funding resources come from sewer service fees and property taxes: Budget Overview The agency’s two treatment plants, located in Fountain Valley and Huntington Beach, process a combined 188 million gallons of wastewater each day generated by approximately 2.6 million people in central and northwest Orange County. The FY 2020-21 proposed budget to operate, maintain and manage our sewage collection, treatment and disposal system is $173.9 million, an increase of 3.4 percent, or $5.7 million, from the prior year budget. Contractual services are proposed to decrease $2.8 million, or 12.7 percent, due to less reliance on outside consultants and the reclassification of some of the services into maintenance. Funding Requirements by Category (in millions) Category 2018-19 Actual 2019-20 Budget 2020-21 Proposed 2021-22 Proposed Capital Improvement Program $163.1 $153.3 $147.6 $240.8 Operating Expenses / Self Ins 168.6 170.7 176.3 176.5 Debt Service*74.5 76.8 72.8 240.6 Intradistrict Transfers 19.7 0.0 3.5 3.5 Total Outlays 425.9 400.8 400.2 661.5 Ending Reserves 760.5 786.7 931.2 767.0 Total Funding Uses $1,186.4 $1,187.5 $1,331.4 $1,428.5 *The fiscal year 2021-22 debt service amount includes a payment of $173.9 million toward the Sanitation District's maturing and callable debt. Funding Sources by Category (in millions) Category 2018-19 Actual 2019-20 Budget 2020-21 Proposed 2021-22 Proposed Beginning Reserves $688.3 $716.8 $843.1 $931.2 Service Fees 311.8 313.1 320.4 329.1 Property Taxes 98.3 96.4 99.9 102.0 Permit User Fees 9.9 9.9 13.0 13.1 Capital Capacity Charges 21.0 18.0 20.1 20.7 Interest 28.7 6.6 13.2 12.7 Intradistrict Transfers 19.7 0.0 3.5 3.5 Debt Proceeds 0.0 0.0 0.0 0.0 Other Revenue 8.7 26.7 18.2 16.2 Total Funding Sources $1,186.4 $1,187.5 $1,331.4 $1,428.5 2020-21 & 2021-22 Budget Section 1 - Page 2 Overhead cost allocation out to the CIP has been increased by $0.4 million, or 2.2 percent based on an updated District-wide full cost allocation plan. Combined utilities costs for natural gas, electricity, and water are proposed to decrease $0.9 million, or 9.6 percent, due to increased operational efficiencies. Offsetting these positive impacts on operating costs, repairs and maintenance costs are proposed to increase $4.9 million or 20.9 percent. This increase is mostly attributable to increases in basic repairs and maintenance costs including the overhaul of dewatering centrifuges at an estimated cost of $2.0 million and major rehabilitation of primary and secondary clarifiers at both plants is planned for $2.5 million. Personnel costs are budgeted to increase $3.6 million, or 3.7 percent, primarily due to the increase in budgeted salaries and wages in accordance with previously approved labor agreements. The FY 2021-22 proposed operating budget is $174.1 million, an increase of $0.2 million, or 0.1 percent over the FY 2020-21 proposed budget. Personnel costs are proposed to increase $5.2 million, or 5.1 percent increase due primarily to increases in salaries per approved labor agreements, group insurances and retirement costs. Staffing is being proposed to remain unchanged from the 639.0 FTE positions proposed for FY 2020-21. Repairs and maintenance costs are being proposed to decrease $4.2 million or 14.8 percent, primarily due to an overall reduction in deferred corrective maintenance completed in previous years. Overhead cost allocation out to the CIP has been increased by $0.9 million, or 4.3 percent based on an updated the District-wide full cost allocation plan. The cost per million gallons of wastewater treated, an industry-wide performance measurement is expected to increase in FY 2020-21 to $2,534, a $96, or 3.9 percent increase over the prior year budget of $2,438, and increase in FY 2021-22 to $2,537, a $3, or 0.1 percent increase from the FY 2020-21 proposed budget. The 3.9 percent increase in FY 2020-21 is primarily due to the budget increase and the projected wastewater flows through the treatment system from remaining consistent at 188 MGD. Wastewater flows have an inverse relationship to the cost per million gallons; the lower the flows, the higher the cost. Wastewater flows are expected to remain flat at 188 MGD in FY 2021-22. OCSD’s CIP net cash flow budget for FY 2020-21 is $147.6 million, an increase of $28.0 million from the prior year estimated total. The CIP cash flow budget for FY 2021-22 is $240.8 million, an increase of $93.2 million from the FY 2020-21 proposed CIP cash flow. This CIP two-year cash flow budget finances collection system, joint treatment works and disposal system improvement projects. These CIP cash flows are attributable to the additional infrastructure needs identified in the 2017 Facilities Master Plan and in the 2020 validation of the CIP. FY 2020-21 Debt Service Operations Capital Facilities Uses of Funds Fees Interest& MiscPropertyTaxes Source of Funds Executive Summary Section 1 - Page 3 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 Facilities Planning The 2017 Facilities Master Plan was adopted in December 2017. Like previous versions, this latest master plan updated planning assumptions, provided a comprehensive analysis of the condition and capacity of our wastewater infrastructure, assessed new technology opportunities, anticipated regulatory changes, and resource recovery options to create a roadmap of facility evaluation improvements which supports OCSD’s mission over the next 20 years. 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 planned active and future projects, as well as outlays allotted for future rehabilitation and replacement of OCSD’s aging assets and systems. Wastewater Recycling In partnership with the Orange County Water District (OCWD), our agency recycles enough water to supply the needs of 850,000 people. Recognizing the need for a reliable, affordable and high-quality water supply, the District’s Board of Directors set a goal of recycling 100 percent of all reclaimable wastewater flows. OCSD is currently working with OCWD on the design and construction of the final expansion of the Groundwater Replenishment System over the next two years. The final expansion is projected to come online in 2023 and will supply enough water for one million people. Sewer Service Fee Increases In March of 2018, the Board approved rate increases for each year over the next five years. These increases are necessary for compliance with OCSD’s debt fiscal policy of balancing the funding of new capital improvements with current revenues and existing debt, and to minimize the increase in rates over an extended period of time. The impact of this five-year sewer fee schedule has increased the single family residence user fee rate, on average, 1.2 percent a year from $335 in 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 2020-21 & 2021-22 Budget Section 1 - Page 4 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 throughout the State according to the 2016-17 California Wastewater Charge Survey by the State Water Resources Control Board. Staffing Authorized staffing levels are being proposed at 639 FTE positions over the next two-fiscal years, one FTE position lower than the approved staffing level for FY 2019-20. However, staffing is still 39 FTE positions below the agency’s all time high of 678 positions approved in FY 1995-96. OCSD budgets staffing levels by FTE positions to provide a realistic estimate of actual staffing levels since not all employees are full-time employees. The part-time positions are funded at 1,040 hours. Part- time employees receive a prorated share of personnel benefits. The reductions from fiscal year 1995-96 are a result of this agency’s effort in striving to provide wastewater treatment as efficiently and effectively as possible while reducing operational and maintenance costs to more closely match those agencies that are “best in class” for wastewater treatment facilities. Strategic Planning In November 2019, the Board of Directors adopted a new comprehensive strategic plan to steer OCSD’s efforts. The Strategic Plan developed by the Board of Directors and staff defines the strategic initiatives to be pursued by OCSD and provides a basis for long-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: •Business Principles o Budget Control and Fiscal Discipline o Asset Management o Cybersecurity o Property Management •Environmental Stewardship o Energy Independence o Climate and Catastrophic Event Resiliency o Food Waste Treatment o Water Reuse o Environmental Water Quality, Stormwater Management and Urban Runoff •Wastewater Management o Chemical Sustainability o Biosolids Management o Constituents of Emerging Concern •Workplace Environment o Resilient StaffingoSafety and Physical Security The Strategic Plan is not a radical departure from the current direction, but rather the well-defined iterative update to the direction of OCSD. With the adoption of the Strategic Plan, staff will be updating the Asset Management Plan, Capital Improvement Plan, and Financial Plan that are the basis of a two-year budget that will be adopted by the Board of Directors. The Budget goals and the General Manager’s work plan are the accountability steps that measure achievable progress toward the strategic initiatives listed in the Strategic Plan. Financial Overview & Budgetary Issues Section 2 – Page 1 Financial Overview and Budgetary Issues This section of the budget is a financial overview and an outline of issues affecting the development of the budget, as listed below: •Proposed Consolidated Cash Flow Budget •Proposed Operating Budget •Proposed Net Capital Improvement Outlay •Debt Service Requirements •Sewer Service Fees & Property Tax Revenues •Budget Highlights •Individual Collection System •Reserves •Staffing Levels •Business Plan •OCSD Long-Term Planning Process •OCSD Fiscal Policies •GFOA Best Practices and Advisories Proposed Consolidated Cash Flow Budget The total proposed cash flow budget for FY 2020-21 is $400.2 million, a 1.4 percent decrease over the prior year total cash flow budget of $405.8 million. The total proposed cash flow budget for FY 2021-22 is $487.6 million, a 21.8 percent increase from the total proposed cash flow budget for FY 2020-21. There is also the potential to pay off $173.9 million in debt in FY 2021-22. The decrease in FY 2020-21 in comparison to the prior year is primarily due to an decrease of $5.7 million in Capital Improvement Program and Future Rehabilitation and Replacement Capital Outlay resulting from a high level of design expenditures associated with projects that will be in construction starting in 2021 such as Headwork Rehabilitation and Expansion (P1-105), Primary Treatment Rehabilitation at Plant 2 (P2-98), Rehabilitation of Western Regional Sewers (3-64), and the Headquarters Complex (P1-128). The following table shows the comparisons of the FY 2019-20 Budget, and the FY 2020-21 and FY 2021-22 Proposed Budgets by major budget category: Proposed Operating Budget The Operating program accounts for the costs to operate, maintain, and manage OCSD’s two treatment plants, with a secondary treatment design capacity of 332 million gallons a day, and 388 miles of collection systems. All the personnel costs for OCSD are initially recorded as an Operating cost. Costs chargeable to the Capital Improvement Program (CIP) are allocated for the work done through a job cost system. These charges are shown as reductions in the line item Operating program budget. Costs remaining in the Operating program are ultimately allocated to the two individual revenue areas that make up OCSD, the Consolidated Revenue Area and Revenue Area 14, based on flows. Operational cost, comprised of collections, treatment plant, recycling operations and maintenance, and administration are projected to come in under budget for FY 2019-20 Budget by $6.8 million, or 4.0 percent. The FY 2020-21 Budget is being proposed with an increase of $5.7 million or 3.4 percent from the prior year budget, and the FY 2021-22 Budget is being proposed with an increase of $0.2 million, or 0.1 percent over the FY 2020-21 Proposed Budget. Analysis on the year-to-year change is provided from three perspectives. First, the FY 2019-20 Budget is compared to the FY 2019-20 year-end projections. Secondly, the FY 2019-20 year-end projections are compared to the FY 2020-21 Proposed Budget, and lastly, the FY 2020-21 Proposed Budget is compared to the FY 2021-22 Proposed Budget. FY 2019-20 Operations – Budget vs. Projected As depicted by the chart above, operating expenses are projected to come in under the FY 2019-20 Budget by $6.8 million, or 4.0 percent. The major categories that comprised most of the underage include salaries and wages, operating materials and $168.2 $161.4 $173.9 $174.1 $0.0 $50.0 $100.0 $150.0 $200.0 Operations Budget Comparison(in millions) 19-20 Budget 19-20 Projected 20-21 Proposed 21-22 Proposed $168 $153 $77 $174 $147 $73 $174 $241 $67 $0 $100 $200 $300 Operations CapitalImprovements Debt Svc./LT Liab. Budget Comparison(in millions) 19-20 Budget 20-21 Proposed 21-22 Proposed 2020-21 & 2021-22 Budget Section 2 – Page 2 supplies, professional services, and other operating costs. Salaries and wages costs are expected to come in under budget by $2.6 million, or 2.7 percent primarily due to unfilled positions and positions being filled at entry level. Operating materials and supplies are expected to come in under budget by $1.1 million, or 4.9 percent primarily due to a reduction in odor chemical usage in the collections system as a result of optimization efforts. Professional services are expected to come in under budget by $1.2 million, or 21.9 percent primarily due to reduced usage of outside engineering and consultants, along with not undertaking a staffing study. Other operating costs are expected to come in under budget by $1.0 million, or 23.5 percent due primarily to the unneeded and unspent budgeted contingency and prior year re-appropriation funds. FY 2019-20 Projected Operating Expense vs. FY 20-21 Proposed Operating Budget The FY 2020-21 Operating Budget is a $12.6 million, or 7.7 percent increase over the FY 2019-20 projected operating requirements. Increases in the proposed operating requirements are primarily attributable to increases in salaries, wages and benefits and repairs and maintenance. Personnel costs are being proposed at $6.3 million, or 6.5 percent increase over the prior year projection mainly due to cost of living adjustments included in the current Memorandums of Understanding (MOU) for all employee bargaining units and increased insurance premiums and retirement contributions. There is a proposed decrease of one full time equivalent (FTE) staff position bringing the proposed total FTE count in FY 2020-21 and FY 2021-22 to 639.0 FTEs. Repairs and maintenance costs are proposed to increase $4.1 million or 16.9 percent over the prior year projection. During FY 2020-21 the Bushard Diversion Structure Repair is planned for $1.1 million major rehabilitation of primary basins, secondary clarifiers and overhaul of new centrifuges at both plants is planned for $6.5 million. FY 2020-21 Proposed Operations Budget vs. FY 2021-22 Proposed Operations Budget In FY 2021-22, the second year of this two-year operating budget, staff is proposing a 0.1 percent, or $0.2 million increase over the FY 2020-21 proposed operating requirements. Increases in the proposed operating requirements are primarily attributable to increases in personnel costs, offset by a reduction in repairs and maintenance. Personnel costs are being proposed at a 5.1 percent, or $5.2 million increase in FY 2021-22 over the FY 2020-21 Proposed Budget. This increase is mostly attributable to the cost of living adjustments in salaries based on existing bargaining unit 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. 284 117 93 101 26 18 284 117 93 101 26 18 0 100 200 300 O&M Engineering EnvironmentalSvcs. AdministrativeSvcs. HumanResources GM Full Time Equivalent (FTE) Staff FY 20-21Total 639 FTEs FY 21-22Total 639 FTEs Financial Overview & Budgetary Issues Section 2 – Page 3 Proposed Net Capital Improvement Outlay Proposed capital improvement outlays approximate two-fifths of the overall proposed budget and provide for the improvements, rehabilitation, replacement, expansion and upgrades of facilities at the two treatment plants, including the utility systems, administrative facilities, and the ocean disposal system, and the rehabilitation, replacement and expansion of the 388 miles of the collection system and off-site pump stations. 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. The Strategic Plan is a two-year, four-step management process that creates and maintains vision alignment between the Board of Directors, the staff, and the public. The Facilities Master Plan defines the District’s goals, responsibilities, and requirements over the next twenty years. The Facilities Master Plan provides a comprehensive analysis of the condition and capacity of OCSD’s wastewater infrastructure. It also evaluated the potential impacts due to anticipated regulatory changes, and incorporated recommendations from other recent master planning efforts, such as the Effluent Reuse Study, Biosolids Master Plan, the Climate Resiliency Study, the Seismic Evaluations Study and the Collections System (sewers and pump stations outside the Plants) Capacity Evaluation, to create the CIP which supports OCSD’s mission over the next 20 years. The projected outlay for the CIP is expected to reach 78.0 percent of FY 2019-20 budget of $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 planned active and future projects, as well as outlays allotted for future rehabilitation and replacement of OCSD’s aging assets and systems. There are four key drivers that lead to CIP projects: (1) Rehabilitation and Replacement; (2) Additional Capacity; (3) Regulatory; and (4) Strategic Initiatives. As demonstrated by the chart below, the most prevalent CIP project driver is to rehabilitate and replace aging assets. OCSD is now facing a time when dry weather influent flows have stabilized, and discharged regulations are less dynamic. Most of the capital improvement costs will be focused on asset management, rehabilitation, and replacement of aging infrastructure. The validated CIP includes 70 active and future capital projects, five programs, such as the Planning Studies Program (M-Studies) and Small Construction Program (M-FE), and budget for capital equipment purchases with a total CIP budget authority of $4.18 billion. The projected outlay for FY 2019-20 for Treatment and Disposal Improvement projects is expected to reach 59 percent of the annual net CIP outlay of $153.3 million. The FY 2020-21 and FY 2021-22 proposed net CIP outlays for Treatment and Disposal Improvement projects are $112.7 million and $212.5 million, respectively. Rehab. and Replace61% Strategic Initiatives26%Additional Capacity9% Regulatory4% Projected FY20-21 Net CIP Outlayby Project Driver 2020-21 & 2021-22 Budget Section 2 – Page 4 Large treatment system and support facility projects include the 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 projected expenditures of $6.0 million, $8.9 million, and $8.1 million respectively in FY 2020-21. Note these projects are heading into construction towards the latter half of FY 2020-21 and portions of these expenditures include these. 53 percent of the FY 2020-21 net CIP outlay will be spent in construction. The four most significant construction projects are the Ocean Outfall System Rehabilitation (Project No. J-117), Westminster Blvd. Force Main Replacement (Project No. 3-62), Return Activated Sludge Piping Replacement at Plant No. 2 (Project No. P2-123), and Newhope-Placentia Trunk Replacement (Project No. 2-72) 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. The Collection System (sewer pipes and pump stations) Capital Program projected outlay for FY 2019-20 is expected to reach 19 percent of the annual net CIP outlay of $153.3 million. The FY 2020-21 and FY 2021-22 proposed CIP budget authorities for Collection System Improvement Projects are $34.9 million and $28.4 million, respectively. These proposed improvements are needed to keep the 388 miles of collection systems pipelines and the pump stations free from failure. Three large projects in the Collection System include the Westminster Blvd Force Main Replacement (Project No. 3-62), the Newhope-Placentia Trunk Replacement (Project No. 2-72), and the Rehabilitation of Western Regional Sewers (Project No. 3-64) with FY 2020-21 proposed cash outlays of $11.6 million $18.4 million, and $4.5 million, respectively. The Capital Improvement Program is described in more detail in Section 8 of this document. Debt Service Requirements OCSD’s long-term debt fiscal policy restricts long-term borrowing to capital improvements that cannot be financed from current revenue. Before any new debt is issued, the impact of debt service payments on total annual fixed costs will be analyzed. OCSD issued the $80.0 million Wastewater Revenue Obligation, Series 2010A in May 2010 and the $157.0 million Wastewater Revenue Obligation, Series 2010C in December 2010, both as “Build America Bonds” (BABs) fixed rate debt and the last of the “new” money debt issuances. The American Recovery and Reinvestment Act of 2009 created this new financing product, BABs, for the municipal issuer. BABs are issued as higher interest taxable bonds; however, the U.S. Treasury provides a 35.0 percent subsidy on interest payments. The net cost, after accounting for the 35.0 percent subsidy payment, frequently results in lower net costs to the issuer, specifically in the maturity years beyond ten years. Based on the market conditions at the time of these issuances in comparing the back-loaded BABs new money borrowing to a back-loaded tax-exempt structure, Series 2010A resulted in present value savings to OCSD of $15.2 million, as the debt was issued at an all-in true interest cost of 3.7 percent; and Series 2010C resulted in present value savings to OCSD of $20.0 million, as the debt was issued at an all-in true interest cost of 4.1 percent. On March 1, 2013, the federal government implemented certain automatic spending cuts known as “the sequester”. As a result of the sequester, federal subsidy payments on BABs have been reduced annually from a high of 8.7 percent for the federal fiscal year ended September 30, 2013 to a low of 5.9 percent for the federal fiscal year ended September 30, 2020. In November 2018, OCSD issued $102.2 million of Revenue Refunding Certificate Anticipation Notes, Series 2018A to refund Revenue Refunding Certificate Anticipation Notes, Series 2016B at a net present value savings of $5.4 million. As a result of having an adequately funded reserves policy, experienced management, and prudent planning, OCSD was again able to secure a “AAA” credit rating from Fitch Ratings and Moody’s on this latest debt issuance. This two-year budget proposes no additional new money debt issuances as the $2.7 billion in future replacement, rehabilitation, and refurbishment projects anticipated over the next ten years will be adequately funded through current sewer service fee charges and existing reserves. The FY 2020-21 debt service requirements are proposed at $72.8 million, a decrease of $9.0 million, or 11.0 percent from FY 2019-20 projected. Total Debt Service requirements for the second year of this two-year budget will fall to $66.7 million, a $6.1 million or 8.4 percent decrease. OCSD is evaluating paying off a $174 million of debt that matures or is callable in FY 2021-22 Financial Overview & Budgetary Issues Section 2 – Page 5 OCSD’s Debt Financing Program is described in more detail in Section 9 of this budget. Sewer Service Fees The Consolidated Revenue Area has an adopted Sanitary Sewer Service Fee to provide funding for operating the sewer systems in accordance with the Clean Water Act and OCSD’s Revenue Program. Revenue Area No. 14 is funded through user fee charges to the IRWD. Sewer service fees are adopted in five year increments. In the fall of 2007, Sanitation District staff conducted strategic planning workshops with the Board of Directors to lay out a capital program to deliver the levels of service desired by the Board of Directors. These levels of service and resulting capital projects are included in OCSD’s Five-Year Strategic Plan. This effort was reinforced through the adoption of a new Master Plan in December 2017, a planning effort to define OCSD’s goals, responsibilities, and requirements over the next twenty years. The 2017 Facilities Master Plan defined a CIP consisting of over 80 future infrastructure projects. Collectively, these projects along with current active projects total over $5 billion of CIP spending over the next 20 years. The 2017 Facilities Master Plan also included a Wastewater Revenue Program Rate Study which determined the appropriate rates going forward to support the proposed 20-year CIP. In March 2018, following a Proposition 218 notice process, the Board approved sewer rate increases for each year over the next five years averaging approximately 1.2 percent a year, which is less than the 1.9 percent rate of inflation for 2019. These increases are necessary to provide needed capital improvements, to meet additional treatment and disinfection requirements, and to minimize future rate increases. The impact of this five-year sewer fee schedule has increased the single-family residence user fee rate, the underlying rate for all sewer service user fees, an average of 1.2 percent a year from $335 in FY 2018- 19 to $351 in FY 2022-23. Even with these increases, the OCSD rates are still well below the average annual sewer rate of $529 being charged throughout the State according to the 2017 California Wastewater User Charge Survey conducted by the State Water Resources Control Board. In FY 1997-98, OCSD’s Rate Advisory Committee, made up of elected city officials, community, business and industry leaders, and Sanitation District staff analyzed OCSD’s rate structure to determine whether user fees were equitable among residences and industry. In May of 1998, the Board approved the proposed revisions to the Sewer Service User Fee rate structure that more equitably charged consumers based on actual usage while remaining revenue neutral. Significant changes in the rate structure included: •Non-residential user charge will be based upontypical quantity and strength of discharge per 1,000 square feet. •Fees for users who discharge high quantities orhigh-strength waste, including former Class III permittees such as restaurants andlaundromats, will be based on the assumed flowand strength per 1,000 square feet. •Discontinuation of the Class III permit processbecause of the implementation of the expandedand more accurate rate structure. This resultedin simplification of the billing and collectionprocess for these two hundred users. •The revised rate structure resulted in a greaternumber of decreases in charges (22,000) fornon-residential users than increases (13,000). Overall, the total fees collected remained essentially the same as those generated by the old structure. Property Taxes OCSD’s share of the one percent ad valorem property tax is dedicated for the payment of COP debt service. The apportionment of the ad valorem $196 $275 $309 $313 $339 $412 $421 $423 $444 $447 $573 $597 $598 $656 $1,076 $- $200 $400 $600 $800 $1,000 $1,200 LA County Oro LomaFresno IRWDOCSDHayward UnionEast Bay MUDSacramento DublinSan Diego LA CityContra CostaVallejo San Francisco Annual Single Family Residential Rates(July 2019) 2020-21 & 2021-22 Budget Section 2 – Page 6 tax is pursuant to the Revenue Program adopted in April 1979 to comply with regulations of the Environmental Protection Agency and the State Water Resources Control Board and in accordance with COP documents and Board policy. Historically, OCSD’s property tax revenues were at a higher level than necessary to support OCSD’s debt service obligations. However, capital improvement needs averaging $200.0 million a year over the last ten years has required new COP debt issuances that have increased future debt service payments that more closely matches property tax revenues. Property tax revenues have increased from $85.7 million in FY 2016-17 to a projected $97.9 million in FY 2019-20, primarily due to the rebound from the economic decline and the collapse in the housing and commercial property markets beginning in 2008. Property tax revenues had been projected to increase 5.0 percent a year but are now being projected to increase 2.0 percent a year through FY 2021-22 due to the global COVID-19 pandemic. Any property tax revenue shortfalls in meeting debt service obligations may require adjustments to user fees, as making debt service payments are legally mandated. Budget Highlights This section briefly outlines the proposed major changes in all departments over the next two years. All plant operating costs and collection system costs are consolidated into the individual department budgets for better accountability and control. However, separate accounting is maintained between Joint Works Operation activities (treatment and recycling operational costs) and collection operational activities since each Revenue Area is directly responsible for their own collection operating costs. The Joint Works Operation activities are allocated to the Revenue Areas based on their individual contributions to the annual sewage flow. Likewise, the Joint Works Capital Improvements are allocated to the Revenue Areas on a three-year average of sewage flows called the "joint works equity percentage", and each Revenue Area is responsible for their own collection system capital improvements. Details for each department can be found in “Section 6 – Operations” of this document. Complete staffing schedules are located in the Appendix. General Manager’s Office •An amount equaling 0.5 percent of the Operatingmaterials and services budget is included within the General Manager’s Re-appropriation line itemfor each of the next two fiscal years. Since thecurrent year’s budget lapses each year, re- appropriation of funds is needed to pay for goodsor services ordered at the end of one budget yearbut not provided until the following year. TheGeneral Manager reviews and approves alldepartmental re-appropriation requests to ensurethat prior year funding was available and has notbeen spent. •An amount equal to 0.85 percent of the Operatingmaterials and services budget is included withinthe General Manager’s contingency account foreach of the next two fiscal years. Human Resources •A decrease of $2.8 million due to the insurancefunctions and property and general liability insurance premiums are moving to theAdministrative Services Department inFY 2020-21. •A net decrease of 1.0 FTE over the next twoyears. Administrative Services •An increase in salaries, wages, and benefits costsof $2.7 million in FY 2020-21 is attributable to costof living adjustments included in the currentMemorandums of Understanding for all employee bargaining units and the inclusion of insuranceand project controls employees. •An increase of $203,000 in contractual servicecosts, $392,000 in professional service costs,$785,000 in utility costs, and $3.0 million in $15,000,000 $25,000,000 $35,000,000 $45,000,000 $55,000,000 $65,000,000 $75,000,000 $85,000,000 $95,000,000 $105,000,000 2005 2010 2015 2019 COP Funding Requirements vs. Property Tax Funding Source Property Taxes COP Service Financial Overview & Budgetary Issues Section 2 – Page 7 materials, supplies and service costs primarily due to insurance functions, project controls, and the consolidation of general Sanitation District costs being consolidated within the Administrative Services Department. •No net change in FTE over the next two years. Environmental Services •An increase in salaries, wages and benefits of$1.0 million in FY 2020-21 is primarily due to costof living adjustments included in the currentMemorandums of Understanding for all employeebargaining units and group medical insurancepremiums. •An increase in research and monitoring costs of$205,000. •An increase of $340,000 in operating costs willcover the following expenses: 1) special studies;2) regional monitoring activities; and 3) samplerreplacement. •A net increase of 1.0 FTE over the next two years. Engineering •An increase in salaries, wages and benefits of$234,000 in FY 2020-21 is primarily due to cost ofliving adjustments included in the currentMemorandums of Understanding for all employee bargaining units and group medical insurancepremiums. •FY 2020-21 proposed CIP outlay of $147.6 million, a decrease of $6.7 million, or 4percent, over last year’s cash flow budget of$153.3 million. •FY 2021-22 proposed CIP outlays of$240.9 million is an increase of $93.3 million, or63 percent, from FY 2020-21 proposed budgetedCIP cash outlay. •A net decrease of 4.0 FTE over the next twoyears. Operations & Maintenance FY 2020-21 increases over FY 2019-20 budget: •An increase in personnel and benefits costs of$345,000 primarily due to cost of livingadjustments included in the currentMemorandums of Understanding for all employeebargaining units and group medical insurancepremiums. •An increase in repair and maintenance of$4.7 million mainly due to overhaul of dewateringcentrifuges at an estimated cost of $2 million and major rehabilitation of primary and secondary clarifiers at both plants is planned for $2.5 million. •A decrease in contractual services of $1 milliondue to reduced biosolids hauling costs resultingfrom greater solids thickening as a benefit of new centrifuge technology, as well as a reduction inprocessed solids due to decreased servicesprovided to sister agencies. •A decrease in odor control chemicals of $500,000. •A decrease in utilities costs of $1 million. •No net change in FTE . FY 2021-22 decreases over FY 2020-21 budget: •An increase in personnel and benefits costs of$1.0 million. •A decrease in repairs and maintenance costs of$4.3 million mainly due to an overall reduction indeferred corrective maintenance completed inprevious years. •No net change in FTE. Reserves OCSD previously conducted an in-depth review of the agency’s reserve policies. This review included a survey of the reserve policies of 23 other public agencies and is periodically updated. It serves as a tool to assist in the evaluation of the underlying economic reasons supporting OCSD’s reserve policies. Below are seven distinct reserve criterion which together comprise OCSD’s reserve fund target. •Cash Flow Criterion has been established at alevel to fund operations, maintenance andcertificate of participations expenses for the firsthalf of the fiscal year, prior to the receipt of the firstinstallment of the property tax allocation and thesewer service user fees which are collected as aseparate line item on the property tax bill. Thelevel of this criterion will be established as the sumof an amount equal to six months operations andmaintenance expenses and the total of the annualdebt or COP service payments due in Augusteach year. •Operating Contingency Criterion has beenestablished to provide for non-recurring operatingexpenditures that were not anticipated when theannual budget was considered and adopted. Thelevel of this criterion will be established at an amount equal to ten percent of the current fiscalyear’s annual operating budget. 2020-21 & 2021-22 Budget Section 2 – Page 8 •Capital Improvement Criterion has beenmaintained to fund annual increments of the CIP.The target level of this criterion has beenestablished at one half of the average annual cashoutlay of the CIP through the year 2030. Levels higher and lower than the target can be expectedwhile the long-term financing and capital improvement programs are being finalized. •Catastrophic Loss, or Self-Insurance Criterion hasbeen maintained for property damage includingfire, flood and earthquake, for general liabilityand for workers' compensation. This reservecriterion is intended to work with purchasedinsurance policies, FEMA and State disasterreimbursements. Based on the plant infrastructure replacement value, the level of this criterion hasbeen set to fund OCSD's non- reimbursed costs,estimated to be $100 million. •Capital Replacement/Refurbishment Criterion hasbeen established to provide funding to replace orrefurbish the current collection, treatment andrecycling facilities at the end of their usefuleconomic lives. The current replacement value of these facilities is estimated to be $10.8 billion. Thereserve criterion level had been established at $75 million. •Debt Service Criterion has been established at tenpercent of the outstanding COP issues. Otherdebt service reserves are required to be under thecontrol of a Trustee by the provisions of the COPissues. These funds are not available for thegeneral needs of OCSD and must be maintainedat 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. Collectively, these individual criterion requirements average $520 million a year over the current ten-year cash flow forecast to support the operation and maintenance of OCSD’s $10.8 billion in assets. Staffing Levels Authorized staffing levels are being proposed to reduce the total FTE position count by one over FY 2019-20 at 639 FTE positions over the next two-fiscal years. However, staffing is still 39 FTE positions below the agency’s all time high of 678 positions approved in FY 1995-96. OCSD budgets staffing levels by FTE to provide a realistic estimate of actual staffing levels since not all employees are full-time employees. The part-time positions are funded at 1,040 hours per year. Part- time employees receive a prorated share of personnel benefits. The staffing reductions from 1995-96 are a result of this agency’s effort in striving to provide wastewater treatment as efficiently and effectively as possible while lowering operational and maintenance costs to more closely match those agencies that are “best in class” for wastewater treatment facilities. However, as the result of new initiatives in the areas of water reclamation and conservation, and the expansion of the CIP, the existing staffing plan was no longer sufficient to meet OCSD’s needs. The Appendices within Section 10 provide a Staffing History Summary (by Department and Division) and Detail (by position title within each Department and Division). OCSD Planning Environment OCSD has developed an integrated planning system that allows for intentional, thoughtful decision making to maintain current operations while adding resilience and meeting new challenges. This integrated planning system includes Strategic Planning, Asset Management, Budgeting (Capital and Operating), a General Manager’s work plan, and focused engineering study efforts. While these plans are important, equally important is an organizational structure and relationships between employees that work together toward these common goals. Strategic Planning is the first step. OCSD has developed a strategic planning model that creates a 615 620 625 630 635 640 645 Authorized FTE Staffing Financial Overview & Budgetary Issues Section 2 – Page 9 long-term level-of-service agreement between its Board of Directors and staff. The Board of Directors use this document to lay out a vision of what the agency will deliver over the next 10 to 20 years. This is an alignment document to define long-term levels of service. The Strategic Plan also serves as a continuity bridge as members of the 25-member Board of Directors come onto and leave the governing body. It is initially important as an education tool for what and why OCSD does what it does, but also allows for new Board members to adjust the vision as it is revised every two years. The Strategic Plan is timed to be adopted by the Board of Directors in the November prior to the bi-annual budget development. OCSD has also created an updated Asset Management Plan. The Asset Management Plan details what we own, what condition it is in, and what it is capable of delivering. This plan is renewed every year. OCSD has broken down its facilities by drainage areas, pump stations, and treatment plant process areas. Each of these discrete areas have a plan. One of the key features of this planning method is to assume that each area has a life expectancy and will need regular refurbishment to maintain resiliency and attain the lowest lifecycle cost. Corrosion, mechanical wear and tear, electrical and instrumentation obsolescence, and technological opportunity must be addressed. It is generally assumed that a normal plant process area will have a 60 to 80-year life if it is refurbished every 20 years. Linear assets like sewers and manholes tend to have a longer life and need attention less often. OCSD inspects its linear assets no less than every five years to correct defects, rather than replace failed corroded pipes. It is much more efficient and responsible for OCSD to rehabilitate and extend the life of our assets rather than replace once failure occurs. The CIP portion of the budget lays out major refurbishment and replacement projects for each planning area looking out more than 20 years. Project start dates, scopes of work and cost estimates shift based on risks and opportunities identified in the Strategic and Asset Management Plans, but the overall plan and financial management move forward every cycle. The operations budget also lays out the smaller scale equipment level refurbishments or replacements necessary to keep the assets working between major projects. This longer horizon view optimizes the resources necessary to deliver projects by minimizing the number of projects and more fully scoping the necessary work at the beginning of the project, minimizing change orders and disruption. This more consistent capital and operational funding approach tends to level out funding requirements and user rates. Once the two-year fiscal budget is approved, staff develops the General Manager’s Work Plan for each of the budget years. The General Manager’s Work Plan is a list of goals that are specifically linked to the Strategic Plan items. Each goal is specific and measurably moves the agency toward the vision in the Strategic Plan. This complete planning cycle is repeated every two years. In addition, OCSD is consistently studying very important topics that help shape the project and maintenance efforts guided by the planning cycle. Some of the important engineering studies include seismic risk evaluations, climate change resilience, biosolids management, physical and cyber security, and constituents of emerging concern. By studying the risks and impacts of these, and other issues, OCSD is able to understand how its facilities must be improved or altered in order to deal with new requirements or better understood risks. OCSD uses the information in each of the studies to improve the scopes of work for existing projects or maintenance activities. Taking the long view to adapt the facilities to address long-term risk and opportunity is the most effective way to reach an intentional, strategically planned vision for OCSD. Having a coherently aligned planning process is critical for moving OCSD forward, but it is only half of the equation. Creating an environment where people are aligned is the other half. OCSD has worked hard to utilize both formal and informal relationships in and across departments to align work efforts. Significant work has been done to define the roles and responsibilities of every department, division, and work group. This includes what each work group needs and is responsible to supply to the rest of the organization. The work groups were designed to be interdependent with a culture of holding each other accountable for delivering required services. OCSD has worked very hard to create an integrated planning environment which begins with the 2020-21 & 2021-22 Budget Section 2 – Page 10 expectations of its Board of Directors and flows down to the work product of each employee. We have worked equally hard to assure our staff members are communicating and providing transparent services to each other in support of the plan. CIP Master Planning The 2017 Facilities Master Plan was adopted in December 2017. Like previous versions, this latest master plan updated planning assumptions, provided a comprehensive analysis of the condition and capacity of our wastewater infrastructure, assessed new technology opportunities, anticipated regulatory changes, and resource recovery options to create a roadmap of facility evaluation improvements which supports OCSD’s mission over the next 20 years. The 2017 Facilities Master Plan defined a Capital Improvement Program comprised of over 80 CIP projects. However, the budget allotted for each project must be approved by OCSD Board of Directors during the annual budget review. To prepare for this annual budget review, Sanitation 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 cost estimates are accurate. In addition, through the Asset Management Program, the Planning Division continually reviews and updates the ongoing and future CIP to appropriately manage the risks associated with asset or system failure. Future projects may be accelerated, delayed, consolidated, canceled or rescoped to help ensure that the CIP is delivered in the most efficient way possible. Strategic Plan In November 2019, the Board of Directors adopted a new comprehensive strategic plan to steer OCSD’s efforts. The Strategic Plan developed by the Board of Directors and staff defines the strategic initiatives to be pursued by OCSD and provides a basis for long-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 meet the sanitation, health, and safety needs 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: •Business Principles o Budget Control and Fiscal Discipline o Asset Management o Cybersecurity o Property Management •Environmental Stewardship o Energy Independence o Climate and Catastrophic Event Resiliency o Food Waste Treatment o Water Reuse o Environmental Water Quality, Stormwater Management and Urban Runoff •Wastewater Management o Chemical Sustainability o Biosolids Management o Constituents of Emerging Concern •Workplace Environment o Resilient StaffingoSafety and Physical Security The Strategic Plan is not a departure from the current direction, but rather the well-defined iterative update to the direction of OCSD. With the adoption of the Strategic Plan, staff will be updating the Asset Management Plan, Capital Improvement Program, and Financial Plan that are the basis of a two-year budget that will be adopted by the Board of Directors. The Budget goals and the General Manager’s work plan are the accountability steps that measure achievable progress toward the strategic initiatives listed in the Strategic Plan. Biosolids Management Biosolids is a resource recovered through the wastewater treatment process. OCSD treats nutrient-rich, organic matter (solids) to produce biosolids. Biosolids can be recycled through composting or fertilizing farm fields (non-food crops via land application). The District’s goal is to ensure that biosolids management strategies align with beneficial use of biosolids, existing market conditions and continue a sustainable, reliable, and economical biosolids management program that provides environmentally sound practices and meets the stringent federal, state, and local regulatory requirements. In FY 2018-19, OCSD produced an average of about Financial Overview & Budgetary Issues Section 2 – Page 11 700 tons per day (“tpd”) of biosolids at a cost of $14.66 million, which averaged $57.58 per ton for hauling and recycling at offsite locations, as described in the table on the following page. The FY 2020-21 budget for biosolids management is $13.2 million, a decrease of 18.5 percent from FY 2019-20 with the completion of the $197 million Plant No. 1 and the $90.5 million Plant No. 2 Sludge Dewatering and Odor Control facilities coming online in 2019. These facilities have reduced the water content of the solids which has resulted in fewer trucks and lower hauling costs. OCSD’s biosolids production has begun trending down now that these new solids management facilities are commissioned. Also noteworthy is that IRWD is constructing solids processing facilities and plans to stop sending their solids to OCSD in FY 2020-21. Contractor Location Product Appx. Tons per day (Mar. 2020) Avg. Cost per ton (Mar. 2020) Synagro San Bernardino, CA Compost 219 $56.10 Tule Ranch Yuma, AZ Land Application 223 $58.65 Liberty Compost Kern, CA Compost 115 $57.50 Inland Empire Regional Composting San Bernardino, CA Compost 14 $74.02 OCSD’s contractors provide fail-safe, back-up biosolids management capacity in California and Arizona that include composting, land application, and landfill. Together, these options have the additional available capacity to manage more than ten times OCSD’s daily biosolids production to ensure sustainable, consistent, and reliable operations. OCSD staff are working to implement the recommendations of the 2015 Biosolids Master Plan. The plan evaluated the biosolids markets and technology options for digestion facility replacement at Plant No. 2 in Huntington Beach. This plan will serve as the road map for sustainable and cost-effective Biosolids management options over a 20-year period and will diversify our biosolids portfolio by adding a Class “A” option under federal rules for biosolids management. Urban Runoff Recognizing that County beaches were being affected by pollution carried by urban runoff, the Board of Directors adopted a number of resolutions to accept dry weather urban runoff into the sewer system. In June 2002, Assembly Bill 1892 amended OCSD’s charter to formally allow the diversion and management of dry weather urban runoff flows. Resolution No. 01-07, adopted March 28, 2001, declared that OCSD will initially waive fees and charges associated with authorized discharges of dry weather urban runoff to the sewer system until the total volume of all runoff discharges exceeds four million gallons per day (MGD) based on a monthly average. For the first 12 years of the Urban Runoff Program, the average monthly averages remained less than the four MGD threshold thus avoiding user fee costs being assessed to the diversion permittees. In 2012, OCSD received a number of proposals seeking to establish additional diversions to address bacteria and selenium loading to the upper Newport Bay. The discharge from the additional proposed diversions combined with the existing diversion flows would eventually exceed the four MGD fee threshold. On June 12, 2013, the Board adopted Resolution No. 13-09 expanding the waiver of fees or charges on the treatment of dry weather urban runoff from 4 to 10 MGD. According to the Board, the change was necessary not only to protect the County’s coastal resources, but also to provide an economic benefit to the local economy by helping to keep our beaches open. The Dry Weather Urban Runoff Program is administered by OCSD’s Resource Protection Division, which issues a discharge permit for each of the diversion structures. The permit functions as a control mechanism that specifically prohibits storm runoff and authorizes discharge only during periods of dry weather. The permit also establishes specific discharge limits, pollutant monitoring, and flow metering requirements. In addition, OCSD conducts quarterly sampling and analysis of the urban runoff discharges to ensure discharge limit compliance. There are currently 21 active urban runoff diversion structures, three owned and operated by the County of Orange, 11 owned and operated by the City of Huntington Beach, three owned and operated by the City of Newport Beach, three owned and operated by the IRWD, and one owned and operated by PH Finance (present owner of the Pelican Hill Resort). On behalf of the Newport Bay Watershed Permittees, the City of Santa Ana is constructing an urban runoff diversion to reduce bacteria and 2020-21 & 2021-22 Budget Section 2 – Page 12 selenium loading to the Newport Bay Watershed. The Santa Ana Delhi Channel Diversion is estimated to add 2.0 to 2.6 MGD to Plant 1 influent. Since 1999, OCSD has treated cumulatively over 9.8 billion gallons of dry-weather urban runoff that would otherwise have been discharged into the ocean without treatment. During FY 2019-20, the daily average urban runoff flow ranged between 0.28 and 1.56 MGD with a cumulative total diversion of 337 million gallons (MG). The diversion flows decreased by 27 percent due to fewer operating days that met qualifying conditions for urban runoff diversion. At the current operations and maintenance cost per million gallons (CMG) of $1,907 (assuming BOD at 20 mg/L and TSS at 50 mg/L), the estimated cost for treating the FY 2019-20 combined urban runoff flows is $642,644. The addition of the Santa Ana Delhi Channel Diversion flows could boost the overall cost to $1,384,225 in FY 2020-21 based on $1,972 CMG and an additional 1 MGD, and $2,767,889 in FY 2021-22 based on $2,037 CMG, assuming the Santa Ana Delhi Channel Diversion reaches its full discharge potential (2.6 MGD) and the commissioning of the Arches Diversion (0.2 MGD). Groundwater Replenishment System OCSD has taken a multi-jurisdictional approach to planning for capital facilities because many of the methods for reducing or managing flows involve other jurisdictions. One such project is the Groundwater Replenishment System (the “GWRS”). In March 2001, OCSD entered into an agreement with the Orange County Water Sanitation District (OCWD) to design and construct Phase I of the GWRS. The capital cost of this Phase was shared equally (50% shares) by each agency. The GWRS is a joint effort by the two agencies to provide reclaimed water for replenishment of the Orange County Groundwater Basin and to augment the seawater intrusion barrier. The GWRS became operational in January of 2008 with a production target of 70,000 acre-feet per year of potable water. 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 an implementation plan to convey secondary effluent from OCSD’s Plant No. 2 in Huntington Beach using new and existing infrastructure to support the GWRS Final Expansion. The GWRS Final Expansion will be funded solely by the OCWD. OCSD currently has two active projects supporting the GWRS Final Expansion. The costs of these projects will be reimbursed by the OCWD. The Final Expansion of the GWRS is expected to be online in 2023. Fiscal Policies Included within Section 3 – Pages 1 through 8 is a listing of OCSD’s Board Adopted Fiscal Policies. These fiscal policies were established purpose of: •sustaining a financially viable Sanitation District; •having the flexibility to adapt to local and regionaleconomic changes; and •maintaining and enhancing sound fiscal condition of OCSD. Included within OCSD’s fiscal policies are specific polices for Budgeting, Revenues, Expenses, Capital Improvements, Vehicles, Short-term Debt, Long- term Debt, Reserves, Investment, and Accounting, Auditing and Financial Reporting. GFOA Best Practices and Advisories Included in the budget within Section 3 – Pages 9 through 17 is a listing of accounting, auditing, financial reporting, cash management, budgetary and fiscal policy, debt management, retirement and benefit administration, and economic development and compliance planning practices recommended by the Government Finance Officers Association (GFOA) of the United States and Canada. Included within this list of best financial practices for state and local governments is OCSD’s status as to whether we are in compliance or in progress towards compliance, or whether the practice is applicable to this agency. Out of the 154 practices identified, OCSD is in compliance with 102, another 46 are not considered applicable to OCSD, and we are in the process of complying with the remaining six. Business Plan Section 2 – Page 13 OCSD’s Strategic Plan is intended to be an overarching plan based on sound decision making that provides direction on the work that OCSD will take on during the next two-year budget cycle and what will be deferred. This Business Plan is the underlying foundation for the development of OCSD’s Budget. During the process of developing the Business Plan, OCSD’s Executive Management Team reviewed the proposed work for the upcoming year, balanced it with the staffing and funding resources needed and either approved the plan or made reductions. Reductions in work or resource commitment for the coming year will be considered in light of the Level of Service that the agency is committed to and appropriate levels of risk. Elements included in two-year budget includes: (1) the Business Planning Process; (2) Strategic Goals, including the timeframe, milestones, and resources required for the completion of each step; (3) performance results pertaining to the Current and Projected Key Performance Indicators (Level of Services); (4) business accountability performance objectives and measures, that are aligned with the updated Five-Year Strategic Plan (these are detailed for each division within the departments in Section 6 of this document); (5) Two-Year Staffing Plan; (6) Financial Model Update; (7) Risk Assessment & Mitigation Analysis; and (8) 2015-17 Asset Management Plan Update. Business Plan Process The framework for the Business Plan is developed as part of the process of updating the Five-Year Strategic Plan. The process for updating the Strategic Plan requires the assistance from all levels of the organization, and includes updating the Mission Statement, Vision Statement and Core Values; and addresses the major objectives and critical challenges facing OCSD now, in the next five-years, and further into the future. This Strategic Plan also lays down the foundation for the development of the Business Plan as it addresses critical operations and construction issues, financial and budgeting challenges, and gives a clear and concise direction from the Board of Directors to staff, ratepayers, regulatory agencies, and the general public. The Business Plan development process started with the categories and topics identified within the Strategic Plan. Staff from across the agency further defined these goals in terms of level of service, business risk exposure, capital and operational costs, staffing, and long-term financial impacts. The Business Plan identifies the required resources and prioritizes projects and goals, with recommendations for which goals should go forward for inclusion in OCSD budget, and which should be deferred or dropped from consideration. Strategic Goals Over the next two years, OCSD will begin and complete many activities central to the goals of the organization. In November 2019, OCSD updated the Strategic Plan and, as part of the strategic planning process, outlined four broad categories: •Business Principles; •Environmental Stewardship; •Wastewater Management; •Workplace Environment; These four categories contain fourteen topic areas with ongoing initiatives to achieve the goals of the plan and OCSD. Level of Service The Levels of Services were developed with measurable outcomes, or key performance indicators, that OCSD is committed to meeting. This Business Plan documents that the Levels of Service provided by OCSD will require $2.7 billion in identifiable capital improvements and millions in increased maintenance and operations costs over the next ten years. No modifications were made to OCSD’s Level of Service as a result of the November 2019 Strategic Plan update. The levels of service continue under the identified following goals: •Providing Exceptional Customer Service. •Protecting Public Health and the Environment. •Managing and Protecting the Public’s Funds. •Stakeholder Understanding and Support. •Organizational Effectiveness. These existing Levels of Service targets are continually under review. Staffing Plan A comprehensive review was completed on OCSD’s staffing levels for the next two fiscal years. This undertaking began with a review of OCSD’s vision, mission, goals and objectives. 2020-21 & 2021-22 Budget Section 2 – Page 14 This analysis included review and assessment of each department and division within OCSD with discreet duties and responsibilities. Based on the needs of the agency over time, the total FTE requirement has remained relatively stable over the last ten years, with proposed staffing of 639 FTEs over the next two fiscal years. This is well below the high FTE count of 678 in FY 1995-96. Staffing levels are proposed at minimum levels that are necessary to support the operation and maintenance of all facilities in an efficient manner to meet all compliance requirements. Staff has focused on the reallocation of existing resources in order to balance the needs within the business units of this agency to ensure that core business operations are met, levels of service are maintained, and that strategic initiative elements are accomplished. The proposed two-year staffing plan contains a significant level of analysis on how existing resources can be utilized in consideration of the increasing demands placed on this agency and in support of the $2.7 billion capital improvement program over the next ten years without increasing staffing levels. A detailed breakdown on the proposed reallocation of FTEs can be found within the Appendix section of this budget. Financial Model Update OCSD’s most recent regional rate study was completed in December 2017 by Carollo Engineers. The purpose of the study was to update sewer service rates and to equitably distribute costs among utility customers and to support OCSD’s regional rate structure over a five-year period from FY 2018-19 through FY 2022-23. Previously, OCSD had completed regional rate studies in 2013, 2008, 2006, 2002 and 1999. The following two drivers necessitated that a rate study be completed in 2017, and be incorporated into the Business Plan: 1.The Necessity of Updating the RegionalSewer Service Fee and the Net Cost ofService Methodology for Industrial Rates -OCSD provides regional sewage collection,treatment, and disposal services toapproximately 550,000 customers located incentral and northwest Orange County andcollects fees for these services through aspecial assessment on the Orange Countyproperty tax bill. In addition, OCSD alsomaintains, repairs, and replaces the local sewers for approximately 17,000 of the above550,000. High strength dischargers, or industrialcustomers, pay sewer fees based upon a netcost of service. A rate study was required todetermine the equitable rates for these threetypes of users. 2.Five-Year Proposition 218 Notice - OCSD’slast California Proposition 218 Notice notifyingrate payers of potential sewer rate increasesover the past five-years had expired and a new5-year Proposition 218 Notice approved by theBoard and the justification of the new sewerservice fee rates over the next five yearsneeded to be supported by an updated sewer rate study. Capacity Charge Update - With the adoption of a new Master Plan in 2017, OCSD needed to update the methodology for Capacity Charges. In their Financial Model Update Report for OCSD issued in December of 2017, Carollo Engineers recommended that OCSD: •Based on current operational and capital projectassumptions, implement annual increases of 1.2percent, respectively, over a five-year periodending in FY 2022-23. •Increase to the unit costs to high strengthdischarges for FY 2020-21 and FY 2021-22, asfollows: Industrial Discharge Sewer Rates $/ 1,000 $/ lbs. $/ lbs. Gallons B.O.D. T.S.S. Unit Cost - FY 2020-21 $1.54535 $0.66469 $0.75686 Unit Cost - FY 2021-22 $1.60128 $0.66799 $0.77700 20-21 % Increase 3.8% 0.5% 2.7% 21-22 % Increase 3.6% 0.5% 2.7% 635 639 624 639 600 610 620 630 640 650 2005-06 2010-11 2015-16 2020-21 Authorized FTE Staffing Business Plan Section 2 – Page 15 All recommendations from the December 2017 Financial Model Update Report were approved by the Board to ensure that the funding required for the additional capacity projects required for new users would be available at the time of construction. Local sewer service fees are based on the Financial Model Update Report from April 2008 and remain at $108 per single family residence. In December of 2017, the 2017 Master Plan was adopted, and because the Capital Facilities Capacity Charges (CFCC) fees are based upon the most recently completed capital strategic plan, staff was directed to include capacity charges in the 2017 rate study. A prior rate study was completed in 2010. It was determined, as a result of the new Master Plan, that future build-out is now projected to be less than what was anticipated in the previous master plan. OCSD’s system currently has unused capacity that is available to serve future users. In addition, OCSD will continue to maintain, improve, and expand the system with future capital improvements. Based upon this information, a hybrid approach (buy-in and future cost) to capacity charges was recommended. Based on the CFCC portion of the rate study in 2017, CFCC and Supplemental CFCC fees are as follows for FY 2020-21 and FY 2021-22: CFCC Rates Residential Commercial/ CFCC Industrial CFCC Unit Cost - FY 2020-21 $4,973 $2,082 Unit Cost - FY 2021-22 $5,346 N/A 20-21 % Increase 8.09% 0.2% 21-22 % Increase 7.50% TBD Supplemental CFCC Rates $/ 1,000 / lbs. $/ lbs. Gallons B.O.D. S.S. Unit Cost - FY 2019-20 $1.936 $0.41510 $0.22261 Unit Cost - FY 2020-21 $1.948 $0.42755 $0.23151 % Increase 0.6% 3.0% 4.0% Risk Assessment Analysis Many leading organizations are formally applying risk management processes to identify and manage risks across many aspects of their business. The formalization of risk management processes is a logical step towards increased accountability and transparency placed on the Board and Sanitation District management. Risk assessment and mitigation includes the following steps: •Identify and assess strategic and organization- wide risks facing OCSD; •Identify mitigation measures that OCSD currentlyhas in place; •Propose additional mitigation measures thatOCSD considers appropriate to manage; and •Develop an action plan of responsibilities and timeframes for follow-up. The Risk Register is a compilation of the various risks facing OCSD, as seen and described annually by the executive management team and the managers. Business Risk is defined as a threat that an event (action or inaction) will adversely affect OCSD’s ability to achieve its business objectives and execute its strategies successfully. Executive management and managers continue to review risks identified in the Risk Register and implement various ways to address those that might impact OCSD. Each Risk Register Update contains solutions proposed by participants for the top risks, and each Risk Register Update also contains a section recording how OCSD dealt with the risks that were spotted in the previous Risk Register Update. Asset Management OCSD is committed to providing services for its rate payers to reliably meet our regulatory mandates and levels of service approved by the Board of Directors and will provide these services using sustainable engineering principles that result in the lowest responsible lifecycle cost with an acceptable level of risk. OCSD installs, operates, maintains, refurbishes and disposes of assets with lifecycles measured from years to decades, so an approach which balances long, medium and short-term needs is necessary. OCSD’s Asset Management Program has evolved into a comprehensive decision-making framework that encompasses engineering planning, design and construction of quality facilities, optimized operation, proper maintenance, and planned rehabilitation, replacement and refurbishment of assets that will meet OCSD’s changing needs. This coordinated decision-making process will allow OCSD to consistently meet mandated levels of service to the rate payers at the lowest lifecycle cost. 2020-21 & 2021-22 Budget Section 2 – Page 16 OCSD’s Asset Management Plan focuses on the long-term planning of maintenance and capital improvement projects to ensure the proper rate structure is in place to support sustainable operations. These are important starting points and have yielded tangible benefits in reduced risk levels and an improved capital planning approach. The implementation of the Maximo Computer Maintenance Management System (CMMS) is an example of an effort to improve OCSD’s Asset Register. CMMS Technicians and the Asset Engineers continue to work to update the database information including installation date, asset cost, condition and criticality in the new system. OCSD has been striving to accurately identify medium to long-term capital cash flow requirements. Specifically, the Engineering Department Planning Division has developed a 20-year CIP by creating specific project plans for the rehabilitation, replacement, improvements and expansion for each treatment plant or collections area. This medium to long-term planning is important for several reasons. By moving away from narrowly focused projects to solve individual problems, to more comprehensive projects refurbishing entire processes, OCSD benefits by having less operational disruption and more efficient project delivery, better cash flow estimation, and better operations and maintenance decision-making framework. This is a huge undertaking based on the number of asset and facilities, but over time the undefined future rehabilitation capital estimates within the 20-year window are expected to be drastically reduced and replaced by more specific estimated capital needs. Complementing the medium to long-term planning are the short-term efforts to coordinate maintenance actions that can reduce risks, actively defer the larger refurbishment projects, and reduce asset consumption rates to minimize the need for replacement of structures and conveyance systems when projects are executed. The Planning Division asset engineers 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 coating systems, atmosphere improvements or small structure repairs before major damage is done. These actions can drastically reduce the cost of future projects by preventing the need to demolish and replace entire structures. OCSD is committed to continuous improvement of the process by which it manages the assets and facilities that are required to reliably deliver its level of service commitments. The additional resources and individual accountability for specific areas has improved, and will continue to improve our capital planning, project packaging, project execution and delivery, plant operability and maintenance planning. The average age and value of the assets OCSD owns is increasing steadily over time, the latent asset replacement obligation is rising, and as a consequence, OCSD needs to plan for decreased capital projects for expansion and increased renewal expenditures in the future relative to past expenditure levels. Additional focus will need to be given to ensure that appropriate operation and maintenance strategies are being applied that consider the different ages of assets being maintained. Asset Valuation The replacement valuation for all of OCSD’s assets has been updated in 2018 as part of the 2017 Facilities Master Plan project. The table below presents the current replacement and depreciated values of OCSD’s assets. The replacement value represents the cost in 2018 dollars to completely rebuild all the assets to a new condition. The depreciated value is the book value of the assets based on their age, which is a prediction of their current condition. Valuation Plants Collections Total Replacement Value (in billions) $7.18 $3.56 $10.74 Depreciated Value (in billions) $2.88 $0.76 $3.64 Business Plan Section 2 – Page 17 Planned CIP Outlays The chart below shows the 20-year net CIP outlay which includes current and projected future Capital Improvement Program projects. 2020-21 & 2021-22 Budget Section 2 – Page 18 Infrastructure Asset Management OCSD manages and assesses the collection system and treatment plants’ assets to improve resilience and reliability while lowering lifecycle costs. This is accomplished through adaptive operation, coordination of maintenance and condition assessment, and planned capital investment. Staff will balance maintenance, refurbishment, and replacement strategies to maximize useful life, system availability and efficiency. Below is a summary of the FY 2019-20 infrastructure maintenance activities and FY 2020-21 planned activities. Collection System: OCSD’s collection system consists of 388 miles of sewers, 15 pump stations, and 3 metering stations. The maintenance of all regional sewers is actively managed but only 230 miles of regional sewers are on a cleaning schedule. The largest sewers and force mains are design to be self-cleaning using higher flows and natural scouring action. Typical gravity sewer maintenance activities consist of: closed circuit television (CCTV) inspection, physical inspection, and cleaning operations. The cleaning frequencies are based on data from pipe inspections, CCTV work, process conditions, historical records, and industry best practices. Pump station and metering station maintenance activities include operating the stations, maintaining electrical, mechanical and civil components, and cleaning activities. The collection system odors and corrosive gases are actively managed for nuisance odor mitigation and asset preservation. Maintenance activities are based on established levels of service to ensure compliance with our permit required Sewer System Management Plan, which is designed to reduce spills, and increase reliability and safety. The planned activities help extend the useful life of the assets and minimize nuisance odors. During FY 2019-20 the following maintenance activities are projected to be completed: •Cleaned 30 miles of regional sewer lines on acleaning schedule. •CCTV video inspection of 350 regional systemmanholes. •CCTV video inspection of 50 miles of regionalsewer pipeline. •Completed 88% of scheduled pump stationpreventative maintenance work. •Cleaned 90% of hot spot and scheduled inverted siphon work. •Managed odor control chemical expenses to 75percent of budget. •Continued an electrical safety initiative to reduce potential arc flash by validating protective relaysettings, replacing obsolete circuit breakers, andinstalling arc flash rating labels. •In addition, OCSD has improved its emergencypreparedness by procuring and preplacingbypass piping and fittings for three pumpstations. This will allow for more swift responseat these locations in the event of a catastrophicfailure or other emergency. Total costs in FY 2019-20 for the collections system maintenance is greater than $9 million. The following activities and goals are planned for FY 2020-21: •Clean 49 miles of regional sewer lines on acleaning schedule. •CCTV video inspection of 750 regional systemmanholes. •CCTV video inspection of 73 miles of regionalsewer pipeline. •Complete at least 85% of scheduledpreventative maintenance work. •Manage odor control chemical expenditures tobetween 95-102 percent of budget. •Continue to implement emergencypreparedness bypass pumping plan for six pumpstations. The total cost in FY 2020-21 for these proposed collections system activities is greater than $11.5 million. Collection System Capital Improvement Projects OCSD’s collections projects go through a planning and design process to ensure all elements of the project are thoroughly assessed. These projects typically renew or replace aging pipelines and pump stations, address odor issues, upgrade facilities to meet current codes, and standards, and in some instances, increase flow capacity due to growth in localized portion of our service area. Currently in construction is the Newhope-Placentia Trunk Replacement (Project No. 2-72) taking place in the cities of Fullerton and Anaheim. Seven miles Business Plan Section 2 – Page 19 of sewer along State College Boulevard, from Yorba Linda Boulevard to Orangewood Avenue, will be upsized to allow abandonment of the Yorba Linda Pump Station which has reached the end of its useful life. The pump station diverts reclaimable wastewater to the Santa Ana River Interceptor instead of the Newhope-Placentia line due to inefficient capacity, preventing flows to be reclaimed at the Orange County Water District’s Groundwater Replenishment System (GWRS). The completion of the project will allow OCSD to recycle an additional 8 million gallons of wastewater by routing flows to Plant No. 1 to be reclaimed for GWRS. The project will also include modifications to existing diversion structures and add flexibility to divert other reclaimable flow. This project also provides adequate capacity for future development, minimizing the risk of sewer spills in the future. Construction of the first phase of the project was completed in fall 2017. The second phase of the project commenced construction in summer 2018 and scheduled for completion in Summer 2021. The project has a budget of $112 million. The Rehabilitation of the Western Regional Sewers (Project No. 3-64) covers approximately 15 miles of sewers in the northwestern service area in the cities of Anaheim, Buena Park, Cypress, La Palma, Los Alamitos, Seal Beach and unincorporated areas of the County of Orange referred to as Rossmoor. This large project is required to rehabilitate or replace portions of the sewers and manholes that were installed in the late 1950s and early 1960s. The sewers have multiple deficiencies which have allowed the intrusion of ground water. In some cases, hard calcium deposits have developed, making the pipe difficult to clean, and may, over time, impede the wastewater flow. Portions of the pipeline and over 150 manholes will be rehabilitated or replaced. The project will be completed under three construction contracts. This project is currently in the design phase with the first phase of construction anticipated for 2020. The project budget is $70 million. This is a decrease of from the previous budget of $202 million as a result of changes in the project elements. The Westminster Blvd. Force Mains Replacement (Project No. 3-62) will replace two existing force mains that run three miles along Westminster Blvd. from Seal Beach Boulevard in the City of Seal Beach to Rancho Road in the City of Westminster. The project commenced construction in spring 2020. The budget for this project is $44 million. The Seal Beach Pump Station is the starting point of the Westminster Blvd. Force Mains. The Seal Beach Pump Station Replacement (Project No. 3-67) will replace the existing pump station on the existing site and demolish the old pump station when the new one is complete. Not only are the electrical and safety codes significantly different from when the station was first construction in the early 1970s, but many of the electrical, mechanical, and control system components are becoming obsolete, and long-term maintenance is no longer an option. The project will also include odor control improvements at the pump station to minimize both upstream and downstream odors and corrosion. The pump station will connect to the newly constructed Westminster Blvd. Force Mains. The project is currently in the preliminary design phase with construction anticipated to begin in 2023. The budget for this project is $79 million. In Newport Beach, the Bay Bridge Pump Station Replacement (Project No. 5-67) will replace the existing pump station to meet current building, electrical, and safety codes, and to meet projected capacity needs. The existing force mains will also be replaced and upsized, and will extend from the new pump station location, across the Back-Bay channel, to connect with the existing pipes near the Dover Avenue and Pacific Coast Highway intersection. The project is currently in the preliminary design phase with construction of both the force mains and pump station anticipated to begin in 2023. The budget for this project is $74 million. Reclamation Plant No. 1 and Treatment Plant No. 2 Maintenance The maintenance organization continues to implement industry best practices for safety, effectiveness and reliability. During FY 2019-20, several major initiatives were completed to improve resilience, reliability and lower lifecycle costs. The first initiative was the formation of a heavy equipment maintenance team to conduct in-house maintenance of Central Generation and gas compression assets. The second initiative was creation of an on-call electrical preventive maintenance services contract allowing electrical staff to focus on predictive maintenance work. The third initiative was formation of a preventive/predictive maintenance optimization team to ensure all new projects are fully ready to be maintained when placed in service. It is critical to provide maintenance immediately when projects with complex equipment worth tens of millions of dollars are commissioned for service, as well as to maintain the equipment data in our computer-based maintenance management system over their lifetime. 2020-21 & 2021-22 Budget Section 2 – Page 20 Throughout both plants, more than 12,200 preventative maintenance activities were performed. In addition, the following significant maintenance and repair activities are projected to be completed in FY 2019-20: •Installed a new close-coupled pump motor for the Steve Anderson Lift Station (SALS). •Rehabilitated two of three Circular PrimaryClarifiers at Plant No. 1. •Met NFPA 110 requirements for load testingemergency standby and mobile generators. •Continued an electrical safety initiative to reducepotential arc flash by validating protective relaysettings, replacing obsolete circuit breakers, andinstalling arc flash rating labels at both Plants. •Began condition assessment of low and mediumvoltage cables to ensure reliability of theelectrical distribution feed at both Plants. •Completed major service on one aeration blowerat the Plant No. 1 Activated Sludge secondarytreatment process. •Completed overhaul of 24 primary sedimentationbasin collector mechanisms at Plant No 1. •Completed overhaul of one gas compressor atPlant No. 1. •Cleaned three digesters and replaced theirmixing valves at Plant No. 2. •Began the rehabilitation of the steam turbine andcondenser in the Central Generation Facility atPlant No. 2. •Refurbished an auxiliary boiler at Plant No. 2. •Completed major upgrades to Effluent PumpStation Annex Motor driver electronics at PlantNo. 2. •Refurbished a main sewage pump and motor atPlant No. 2 Headworks. Total costs for the treatment plant maintenance is greater than $23 million. Looking forward to FY 2020-21, there are more than 12,400 preventative/predictive maintenance activities scheduled to be completed at Plant Nos.1 and 2. This includes typical time or cycle based maintenance tasks such as adjustments and mechanical alignments, cleaning and tightening of electrical equipment, calibration of sensors and meters, changing of lubricants and filters, exercising equipment, rebuilds and regulatory testing. In addition, staff will be utilizing predictive technologies such as vibration analysis to measure imbalance in rotating equipment, thermography to measure excessive heat, oil analysis to predict failure of lubricants, and ultrasonic leak detection to prevent deterioration and short-circuiting in electrical equipment. These predictive technologies will not only improve how maintenance is done but will also provide decision making information to support OCSD’s CIP. In addition to normal maintenance activities, OCSD is planning the following major activities for FY 2020-21: •Major maintenance service of 16 remaining primary sedimentation basins for increasedreliability at Plant No. 1. •Major overhaul of one gas compressor at each Plant. •Overhaul of three thickening and dewateringCentrifuges at Plant No. 1. •Clean four digesters at Plant No. 1 and three at Plant No. 2. •Overhaul three Main Service Pump motors at thePlant No. 2 Headworks. •Complete an assessment and repair of failed low voltage cables at the Plant No. 2 Headworks. •Overhaul five secondary clarifiers at Plant No. 2. •Replace secondary clarifier inlet gates at PlantNo. 2. •Overhaul three dewatering Centrifuges at Plant No. 2. •Replacement of the truck loading augers, valvesand sliding frame systems at Plant No. 2. The total cost for these proposed plant maintenance activities is greater than $24 million. Reclamation Plant No. 1 CIP Projects: These projects are intended to rehabilitate or reconstruct major components of our treatment process to ensure compliance with regulatory permits, enhance water recycling and safety. One of the largest projects is the Headwork Rehabilitation at Plant No. 1 (Project No. P1-105). The facility is over 30 years old, and a comprehensive refurbishment is required in order to extend the life of the facility. The project will rehabilitate systems including the metering and diversion structure, the bar screen building, the bin loading building, the main sewage pump station, the grit basins, the primary influent channels, the Business Plan Section 2 – Page 21 headworks odor control scrubbers, and electrical power distribution and control systems. This project will also replace the emergency pumping capacity that has been provided by the original headworks pumping system dating back to the 1950s. Construction is anticipated to begin in 2021. The total budgeted cost for this project is $406 million. To ensure Plant No. 1 has allocated space for future treatment processes, the Headworks Complex (Project No. P1-128) will build new support facilities across from Plant No. 1 on the north side of Ellis Avenue. Currently, administrative and engineering functions are located primarily at Plant No. 1, and the buildings that house the staff are aging and need replacement. The new Headquarters will be a three-story building for administrative, engineering, resource protection and environmental compliance staff. The project includes the demolition of the Risk Management trailer and five buildings at the site of the new Headquarters. Construction is anticipated to begin in 2021. The total budgeted cost for this project is $167.5 million. Treatment Plant No. 2 CIP Projects: These projects are intended to rehabilitate or reconstruct major components of our treatment process to ensure compliance with regulatory permits, enhance water recycling and safety. The Primary Treatment Rehabilitation Project (Project No. P2-98) will replace or rehabilitate the 14 primary clarifiers at Plant No. 2 with associated influent pipes, construct new primary effluent pipes, and rehabilitate and upgrade the odor control systems. These facilities date back to the late 1950s and need seismic and condition-based upgrades. The project will replace the four oldest primary clarifiers. The project has a second construction contract to provide interim repairs to the other ten clarifiers. The project as a whole will improve the resiliency of our infrastructure and thus improve our ability to provide service. This is anticipated to be a very long duration project because the need to maintain treatment operations during the project. 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 stream pumping and piping. Costs associated with this project will be reimbursed by OCWD. As we make improvements throughout the plant, it is imperative we pay attention to our ocean outfall system. Many components of the system such as the pipeline assets have already been addressed, so now we turn our attention to the pumping systems with the Ocean Outfall System Rehabilitation (Project No. J-117). Work to the Ocean Outfall Booster Station includes rehabilitation of the mechanical, electrical, and civil systems which will extend the life of the facility and increase the efficiency of the system. In addition, a new Low Flow Pump Station will be added due to our increased water recycling rates, which will reduce our outfall flows below the minimum capacity of the existing effluent pumps. This project will also relocate the existing Plant Water Pump Station to prevent water that is not reclaimable by the GWRS from flowing into the reclaimable portion of the treatment plant. The project will also replace existing electrical switchgear at the Central Generation Building. Rehabilitation of the 84-inch and 120-inch interplant effluent lines between Plant No. 1 and Plant No. 2 completed in 2018. The budget for this project is $166 million. Costs associated with the Plant Water Pump Station will be reimbursed by the OCWD. As part of the long-term CIP planning efforts, several studies are currently underway evaluating various areas of the plants and the collection system to determine their condition, and identify deficiencies or improvements needed. These studies include the Ocean Outfall Condition Assessment and Scoping Study, ETAP Model (electrical simulation software tool) Updates for Plant Nos. 1 and 2, Digester 6 Pipe Stress Analysis at Plant No. 1, Circular Primary Clarifier Replacement Phasing Study at Plant No. 1, The Facilities Master Plan Program Environmental Impact Report, and the Laboratory Rehabilitation Feasibility Study. The results of these studies will help support, define and refine future CIP projects to improve our facilities and systems. 2020-21 & 2021-22 Budget Section 2 – Page 22 FY 18-19 Results Level of 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 million people (for each treatment plant). 3 <10 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 TSS 6.0 mg/L BOD 25 mg/L TSS 30 mg/L Frequency of unplanned use of emergency one-mile (78-inch diameter) outfall (per year during dry weather). 0 0 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 effluent 3.3 NTU 5 NTU Provide specification effluent available to the Groundwater Replenishment System to maximize production of purified water. 100% 100% 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% Business Plan Section 2 – Page 23 FY 18-19 Results Level of 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 •Treatment Plant No. 2 •Collection System*Under normal operating conditions 2 1 8 0 0 12 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 work activity, or job transferred as a result of a work-related injury or illness 2.9 <2.5 Training hours per employee 52 45 per year 2020-21 & 2021-22 Budget Section 2 – Page 24 OCSD Long-Term Planning Type of Planning Process Description of Process Budget Impacts Update of the Strategic Plan Maintaining a rolling two-year, four-step management process that creates and maintains vision alignment between the Board of Directors, the staff, and the public we serve. In November 2019, the District’s Board approved a 2-Year Strategic Plan. It defines needs and feeds into Capital Planning. From there, budget development will be developed and executed. The ongoing process adapts to changes and allows the budget to be re-evaluated and refined. Capital Master Planning and Asset Management Develop and maintain a 20-year capital improvement Program (CIP) to meet the regulatory, environmental, health, and safety needs of a growing population. In December 2017, the Board approved a new Facilities Master Plan that lays out a capital program to deliver and maintain the levels of service desired by the Board of Directors. This is validated and reinforced every year through Planning Studies and Asset Management. The 2020 CIP Validation, includes an overall CIP budget of over $5.8 billion for active and future. Biosolids Management Aggressively pursue biosolid disposal alternatives following the expiration of the 2016-17 disposal contract. The study of biosolids options will include offsite an onsite facility, and new and established technologies. Biosolids production will decrease by one-third when IRWD discontinues sending biosolids along with the centrifuges online. Groundwater Replenishment System (GWRS) Continue partnership with the Orange County Water Sanitation District (OCWD) in support of the GWRS. Maximize the use of treated effluent for water recycling by sending secondary effluent from Plant No. 2 to the GWRS. OCSD will continue executing CIP projects to support the Final Expansion of the GWRS. Orange County at a Glance Section 2 – Page 25 Background Information and Description of Services: The Orange County Sanitation District (OCSD) is a public agency that operates one of the largest wastewater facilities in the United States of America. Originally formed in 1954 pursuant to the joint powers provision under the County Sanitation District Act of the California Health and Safety Code, OCSD then consisted of independent special districts responsible for wastewater collection within their own geographical boundaries. These districts were co-participants in a Joint Agreement to provide for the joint construction, ownership, and operation of the District’s Joint Facilities for the treatment and recycling of wastewater. On July 1, 1998, the nine-individual existing districts requested to be consolidated into one district by resolution of the Board of Supervisors of the County of Orange and special legislation. OCSD is governed by a Board of Directors made up of mayors or members of city councils, directors of independent special districts, and one member from the County Board of Supervisors. A variety of board committees, made up of members of the Board of Directors, consider topics for action by the Board and make recommendations to the Board. OCSD is responsible for collecting, treating, and safely disposing of approximately 188 million gallons of wastewater each day for an area covering 479 square miles in metropolitan (central and northwestern) Orange County. OCSD’s service area includes approximately 2.6 million residents and businesses, or approximately 81 percent of the County’s total population. Staff of 639 full-time equivalent employees supports OCSD’s around-the-clock operation. Staff is organized into six departments, including the General Manager’s Office, Human Resources, Administration, Environmental Services, Engineering, and Operations and Maintenance. As working environmentalists, OCSD’s staff is regulated by many agencies, including the United States Environmental Protection Agency (USEPA), California Regional Water Quality Control Board (CRWQCB), CalRecycle, the California Air Resources Board, and the South Coast Air Quality Management District (SCAQMD). OCSD operates and is regulated under a National Pollution Discharge Elimination System (NPDES) ocean discharge permit issued by the USEPA and the Santa Ana Regional Water Quality Control Board. This permit was last issued in July 2012 and has been administratively extended during the renewal process. To maintain OCSD’s NPDES operating permit, OCSD’s plants must meet strict conditions set jointly by the regulators. OCSD is actively engaged in discussion with the regulators during the renewal process. OCSD maintains and operates a large system of trunk sewers and pump stations in addition to the two modern treatment plants. The plants use chemical, physical and biological processes to produce a high- quality effluent. Chemicals used are either environmentally neutral or biodegradable. The treated effluent from the Huntington Beach plant is pumped through a five-mile, 10-foot diameter ocean outfall pipe. The last mile of the outfall is a diffuser section that releases treated water through more than 500 portholes approximately four-and-a-half miles offshore. In January 2008, the Orange County Water District (OCWD) and OCSD began operation of the Groundwater Replenishment System (GWRS), a joint project by the two agencies to provide reclaimed water for percolation into the groundwater basin from most of the secondary effluent pumped from the Fountain Valley plant, or approximately 92,300 acre-feet per year. In May 2015, OCWD completed the initial expansion of GWRS that provided an additional 33,000 acre-feet per year of reclaimed water; resulting in the purification of 100 percent of the treated wastewater produced at the Fountain Valley plant. In November 2019, OCWD and OCSD began construction on the final expansion of GWRS and will be completed by 2023. Once completed, the final expansion of GWRS will provide an additional 36,400 acre-feet per year by utilizing reclaimed water produced at OCSD’s Huntington Beach plant. Community Profile of the County of Orange The County of Orange is bordered on the north by Los Angeles and San Bernardino counties, on the east by Riverside County, on the southeast by San Diego County, and on the west and southwest by the Pacific Ocean. Approximately 42 miles of ocean shoreline provide many beaches, marinas and other recreational areas for use by residents and visitors. 2020-21 & 2021-22 Budget Section 2 – Page 26 The climate in the County is mild, with an average rainfall of 13 inches. The mean temperature ranges from a minimum of 47 degrees to a maximum of 82 degrees. The County has become a tourist center in Southern California by offering a broad spectrum of recreational opportunities that is enhanced by the mild climate. Along the shoreline are five state beaches and parks, five municipal beaches and five county beaches. There are two small-craft docking facilities in Newport Harbor, one located in Sunset Beach and another in Dana Point. Other major recreational and tourist facilities include Disneyland, California Adventure, Knott’s Berry Farm and Soak City, Mission San Juan Capistrano, the Anaheim Convention Center, and the Art Colony at Laguna Beach with its annual art festival. Also located within the County is Anaheim Stadium, home of the Los Angeles Angels of Anaheim of Major League Baseball, and the Honda Center, home of the Anaheim Ducks of the National Hockey League. Economic Outlook The coronavirus (COVID-19) is having an acute negative impact on the domestic and global economy as large segments of the economy are essentially shut down. The strength of the US economy prior to the onset of COVID-19, the US consumer and the ‘service sector’ portion of the economy, had been relatively immune to the more cyclical elements economy over the past several years. At the current juncture, the previous strength is a liability with the US consumer quarantined and significant portions of the ‘service’ economy shut down. Until forecasters get some visibility on when, and to what degree, the economy will function as quarantines are lifted later in the year financial markets across asset classes will remain volatile. The Chapman-CMC Orange County Consumer Sentiment Index fell from a value of 96.3 to a value of 77.7 during the first quarter of 2020. The consumer sentiment index declined by more than 19 percent, the largest decrease since the inception of the Orange County Consumer Sentiment Index in 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 survey questions about current economic and financial conditions experienced the largest declines in consumer sentiment. On the other hand, the smallest declines in consumer sentiment were observed in economic and financial questions asking about next year. As noted by Professor Marc Weidenmier of the Argyros School of Business and Economics, “Going forward, consumer sentiment in Orange County is directly tied to the virus. If social distancing and stay at home orders are followed and work, then consumer sentiment may bounce back rather quickly. However, if the virus continues to spread rapidly across California and the United States, then consumer sentiment is likely to fall even farther and possibly approach depression levels.” Based on a survey of purchasing managers, the California Composite Index, measuring overall manufacturing activity in the state, decreased from 59.7 in the first quarter to 45.6 in the second quarter, indicating a contraction of the manufacturing sector in the second quarter. Hiring in typically strong labor markets including Orange County, the Bay Area, Los Angeles, and San Diego were hit heavily. “The growth of the California manufacturing economy that started in the third quarter of 2009 will come to an abrupt end in the second quarter of this year,” said Dr. Raymond Sfeir, director of the purchasing managers’ survey. Progress and visibility on the timing of a vaccine for COVID-19 will serve as a material catalyst for the ultimate recovery of the economy. Assuming additional quarantines are reintroduced later in the year the impact to the economy will be less severe as all will have learned from the current experience. Prior to the onset of COVID-19 on the domestic economy the data and trajectory of the economy were sound. The low unemployment rate and high savings rate should act as a catalyst to get the economy back on track sooner compared to other periods of severe financial stress in 2000 and 2008. Large-scale global monetary and fiscal stimulus programs will help mitigate the longer-term economic impact of the pandemic. At this point, a U-shaped economic recovery heading into 2021 is possible. Fiscal Policy Section 3 - Page 1 Fiscal Policy Statement Completed In 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. ✓ 2020-21 & 2021-22 Budget Section 3 - Page 2 Fiscal Policy Statement Completed In 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 capitalinvestment 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. ✓ Fiscal Policy Section 3 - Page 3 Fiscal Policy Statement Completed In 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 for capital improvements, including design, development, implementation, and operating and maintenance costs. ✓A 20-year CIP Plan is maintained by the Sanitation District. 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 operatingand 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. ✓ 2020-21 & 2021-22 Budget Section 3 - Page 4 Fiscal Policy Statement Completed In 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: Completed for critical and high value assets. •The condition, performance, utilization, and cost ofassets will be recorded to the asset level.✓ •A detailed, planned maintenance program is in placeto ensure that the assets, facilities and systemsperform to their design criteria and meet their design lives. ✓ •A system is in place to blend planned and unplannedactivity to optimize the cost against the assetperformance requirements. ✓ •Reliability Centered Maintenance techniques will beused to optimize the maintenance plans and toidentify any design alterations that are economicallyjustified. ✓ •Current levels of asset management service in termsof quantity and quality of service including condition,function/size/type, regulatory requirements, reliability, and repair response times have been determined anddocumented. ✓ •The full economic cost is charged on all assetmanagement activities.✓ •Asset Management maintains appropriate pricing andfunding strategies that match the needs of thebusiness to ensure sustainability. ✓ •Asset Management considers the real growth of the District’s service area and the way in which demandsfor service will change in the future, includingpopulation, unit demand, demographics, changingcustomer expectations, and changing regulatoryrequirements. ✓ •Monitoring and reporting are performed on thecondition, performance, and functionality of theSanitation District’s assets against prescribed servicelevels and regulatory requirements. ✓ Conditions and performance of assets are reported annually through the Asset Management Plan. •Future level of service options available and theirassociated costs are constantly analyzed.✓ Fiscal Policy Section 3 - Page 5 Fiscal Policy Statement Completed In Progress Comments •An assessment of the relative risks, costs andbenefits is derived for all investments in capital works,maintenance, and operations. ✓ •Individual asset management decisions are madeonly when the cost of all programs has been analyzedand the funding needs of the whole organization is known together with the knowledge of its impact onrates. ✓ •Necessary renewal programs to sustain the existinglevels of service and condition of assets, as identifiedthrough the best appropriate process, is approved ahead of new capital works and services. ✓ •New capital assets for new works and services areapproved only with the commitment of the recurrent (operations and maintenance) funding necessary tosustain 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 highestutilization rate possible. ✓ •Vehicles may be replaced when they are 7 years oldor have accumulated 75,000 miles, or at the optimalreplacement cycle per industry best practice. Vehicleutilization rates will assist in determining vehicleacquisition 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. ✓ 2020-21 & 2021-22 Budget Section 3 - Page 6 Fiscal Policy Statement Completed In 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’sTreasurer, 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. ✓ Fiscal Policy Section 3 - Page 7 Fiscal Policy Statement Completed In 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 reportingsystems 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 financial community. ✓ The Sanitation District’s AAA rating was reaffirmed with the $66.4 million 2017A Revenue Refunding debt issuance. 2020-21 & 2021-22 Budget Section 3 - Page 8 Fiscal Policy Statement Completed In 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. ✓ GFOA Best Practices and Advisories GFOA Recommended Practice Compliance Met Not Applicable In Progress Comments Section 3 – Page 9 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 in Enterprise Funds ✓Working Capital of the 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 Municipal Solid Waste Management Activities ✓OCSD does not provide solid waste services. Present Securities Lending Transactions in Financial Statements ✓OCSD does not have Securities Lending Activities Technology Disaster Recovery Planning ✓Managed by Information Technology Division Present Budget to Actual Comparisons Within the Basic Financial Statements ✓Not required for audited financial statement reports of 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 ✓ 2020-21 & 2021-22 Budget GFOA Recommended Practice Compliance Met Not Applicable In Progress Comments Section 3 – Page 10 Appropriate Level of Unrestricted Fund Balance in the General Fund ✓OCSD only has Proprietary 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 Discussionand 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 Approach to Account for Infrastructure Assets ✓OCSD depreciates all capital assets; OCSD has no 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 Financial Documents ✓Managed by Information Technology Division Treasury and Investment Management Recommended Practices Collateralization of Public Deposits ✓ Government Relationships with Securities Dealers ✓ Using Mutual Funds for Cash Management Purposes ✓ GFOA Best Practices and Advisories GFOA Recommended Practice Compliance Met Not Applicable In Progress Comments Section 3 – Page 11 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 by State and Local Governments for Non-Pension Fund Investment Portfolios ✓Investment Policy does not allow Derivative Investments Use of Derivatives and Structured Investment by State and Local Governments for Cash Operating and Reverse Portfolios ✓Investment Policy does not allow Derivative Investments Security Lending Programs for Non-Pension Fund Portfolios ✓ Diversification of Investments in a Portfolio ✓ Managing Market Risk in Investment Portfolios ✓Managed by Chandler Asset 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 ✓ 2020-21 & 2021-22 Budget GFOA Recommended Practice Compliance Met Not Applicable In Progress Comments Section 3 – Page 12 Use of Lockbox Services ✓OCSD does not have sufficient cash related transactions to use Lockbox services. The majority of revenues are collected on the property tax roll. Commercial Paper ✓ Use of Cash Flow Forecasts in Operations ✓ Bank Account Fraud Prevention ✓ Use of Local Government Investment Pools ✓ Revenue Control and Management Policy ✓ Payment Consolidation Services ✓ Using Electronic Signatures ✓ Using Remote Deposit Capture ✓ Budgeting and Fiscal Policy Recommended Practices Economic Development Incentives ✓ Use of Performance Measurement for Decision Making ✓ Providing a Concise Summary of the Budget ✓ Establishing of Government Charges and Fees ✓ Recommended Budget Practices of the National Advisory Council on State and Local Budgeting (NACSLB) ✓ Financial Forecasting in the Budget Preparation Process ✓ Relationships Between Budgetary and Financial Statement Information ✓ Use of Financial Status in the Budgeting Process ✓ Adoption of Financial Policies ✓ Appropriate Level of Unreserved Fund Balance in the General Fund ✓OCSD only has Proprietary Fund Types - established a formal policy on the level of unrestricted net assets GFOA Best Practices and Advisories GFOA Recommended Practice Compliance Met Not Applicable In Progress Comments Section 3 – Page 13 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 ✓ 2020-21 & 2021-22 Budget GFOA Recommended Practice Compliance Met Not Applicable In Progress Comments Section 3 – Page 14 Analyzing and Issuing Refunding Bonds ✓At the outset of evaluating the 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 Products and Development of Derivatives Policy ✓No Derivative Products Maintain an Investor Relations Program ✓ Payment of the Expense Component of Underwriters’ Discount ✓Establish at the beginning of the 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 Securitization of Tax-Exempt Obligations ✓Meet qualifications of arbitrage Evaluate the Use of Pension Obligation Bonds ✓OCSD does not manage 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 and Local Governments ✓OCSD does not plan to issue 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 ✓ GFOA Best Practices and Advisories GFOA Recommended Practice Compliance Met Not Applicable In Progress Comments Section 3 – Page 15 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 Subsidy Bonds ✓Develop procedures for managing post-sale considerations and responsibilities while the bonds remain outstanding. Retirement and Benefits Administration Recommended Practices Public Employee Retirement System Investments ✓Managed by OCERS Preparing an Effective Summary Plan Description ✓Managed by OCERS Retirement and Financial Planning Services ✓Managed by OCERS Directed Brokerage Programs ✓OCERS manages all “soft dollar” transactions A Policy for Retirement Plan Design Option ✓ Asset Allocation – Guidance for Defined Benefit Plans ✓Managed by OCERS Asset Allocation - Guidance for Defined Contribution Plans ✓OCERS is a defined benefit plan. Alternative Investment Policy for Public Employee Retirement Systems (PERS) ✓Managed by OCERS Pension Investment Policy ✓Managed by OCERS Selection of Investment Advisors for Pension Fund Assets ✓ Managed by OCERS 2020-21 & 2021-22 Budget GFOA Recommended Practice Compliance Met Not Applicable In Progress Comments Section 3 – Page 16 Brokerage Window Options for Defined Contribution Retirement Plans ✓Managed by OCERS Framework for Understanding Pension Fund Risk ✓Managed by OCERS Investment Policies Governing Assets in a Deferred Compensation Plan ✓Managed by the plan sponsors Health Care Cost Containment ✓ Evaluating Use of Early Retirement Incentives ✓ Deferred Retirement Option Plans (DROPs) ✓ A Policy to Participate in Securities Litigation Class Actions ✓Managed by OCERS Ensuring the Sustainability of Other Postemployment Benefits ✓ Pay-As-You-Go funding Design Elements of Defined Benefit Retirement Plans ✓Managed by OCERS 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 OPEB trust ✓Pay-As-You-Go funding 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 Retirement System ✓Managed by OCERS Sustainable Funding Practices of Defined Benefit Pension Plans ✓ GFOA Best Practices and Advisories GFOA Recommended Practice Compliance Met Not Applicable In Progress Comments Section 3 – Page 17 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, Maintenance, and Replacement Policy ✓ Establish a system for assessing Sanitation District 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 Planning ✓Establish resiliency into the 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 Development Incentive Policy ✓No Incentive Policy established Monitoring Economic Development Performance ✓ Balancing the Costs and Benefits of Economic Development Projects ✓ Incorporating Environmentally Responsible Practices in the Capital Improvement Program ✓ 2020-21 & 2021-22 Budget Section 3 – Page 18 This page was intentionally left blank. Overview of the Budget Process Section 3 – Page 19 Budget Process: Fourteen years ago, OCSD prepared its first complete budget document covering two years instead of one. The next year a smaller budget update document was prepared to summarize revisions to the second year of the previously adopted two-year budget period. This two-year cycle approach to budget preparation is expected to continue for the indefinite future. This change has not caused any modification to the previously established stages of the annual budget process except with regard to the level of detail which is provided. The timing of all stages of the budget process remains consistent from year to year. In the second year of a two-year cycle, however, the focus is on any changes that need to be made to the upcoming year’s budget relative to what was previously submitted, reviewed, and approved for that budget during the prior year. The District’s annual budget preparation process begins in January of each year and concludes in June upon its adoption. However, the entire budget process extends beyond one year and overlaps with the preceding budget and the subsequent budget. As shown in the chart above, the budget process consists of four major parts. These parts occur at various stages throughout the year as follows: •Preparation/Planning - takes place from Januarythrough March. •Integration - runs from March through May. •Passage - adoption of the budget usually occursin June of each year. •Execution - starts from the first day of the budget year, July 1, through the entire budget year and beyond into November with the presentation of the annual audit report. Key dates in this 2020 budget cycle are: Budget Kick-off Meeting - January 23 Department Budget Submissions - February 20 Preliminary Budget Review - March 9-12 General Manager Budget Review - March 23-27Presentation to Admin Committee - March 11 Presentation to Admin Committee - April 8 Presentation to Board Committees - May 6 & 13 Presentation to Board Committees - June 3 & 10 Public Hearing & Board Adoption - June 24 Team Approach As identified by one of the fiscal policies, the budget preparation process originates at the division level, the organizational level of accountability and control. Budget coordinators are established to represent each operating division. A comprehensive budget manual is prepared and used as the training manual during a training session with the budget coordinators. 2020-21 & 2021-22 Budget Section 3 – Page 20 After the initial divisional budgets are prepared, budget review sessions are scheduled for each division with the General Manager. It is during these sessions that all proposed staffing levels, programs, and line item expenses are justified. Next senior management representatives from each department analyze opportunities for consolidating programs and eliminating unnecessary requests. Guidance is also sought and utilized from District’s committees on various issues that affect budget development. The Process The budget preparation process begins in January with the distribution of the budget manual, budget preparation training, and issuance of personnel budget and justification forms, and equipment budget forms to all of the Divisions. In March, the Administrative Services Department develops divisional level budgets based on the request forms received from the various divisions. These divisional budgets are then reviewed in mid-March by the General Manager along with the Department and Divisional managers for each program request and for new, additional, or reduced services, positions, and capital outlay. Every month from March until June, an update is given to the Administration Committee. The Capital Improvement Program requests are prepared from October through March and are reviewed by Engineering and Department and Divisional managers prior to being submitted to the General Manager for review and evaluation as part of the budget process. In determining recommended allocation levels, the General Manager takes into consideration the projected amount of available resources, direction provided by the Directors, the District’s fiscal policies, and how to best provide the most cost-effective and efficient service levels to the public. After a final review of the operating budgets by the General Manager, the proposed annual budgets are finalized in late May and then distributed to the Directors for consideration. The General Manager presents the proposed budget to the various Directors’ Committees for deliberations throughout the month of June. The proposed budget is scheduled for adoption, along with any revisions by the Board, at the Board of Directors meeting in June. Level of Control and Amendments to the Budget Budgetary control, the level at which expenses cannot legally exceed the appropriated amount, is exercised at the individual Department level. Administrative policies provide guidelines on budget transfers and the authorization necessary to implement transfers. Generally, there are two types of budget transfers: 1.Budget Adjustment This is a transfer which does not change the total appropriated amount and does not require Board action. Depending on the budget category affected by the transfer, approval may be granted at the General Manager or Department Head level as follows: Department Heads have discretion to reapportion funds between certain line items within a division but may not exceed total appropriated amounts for each department. They also may transfer staff across divisional lines within their department. The General Manager and Board of Directors must approve additional capital outlay items. Funds appropriated for salaries and benefits may not be expended for any other purpose unless approved by the Board. The General Manager may transfer operating funds within and between divisions and departments. The General Manager may also transfer staff positions between departments. 2.Budget Amendment: This is an adjustment to the total appropriated amount, which was not included in the original budget. These supplemental appropriations require formal action by the Board of Directors. Types of modifications can be categorized as follows: Prior year reserves or fund balances may be appropriated to fund items not previously included in the adopted budget. Reserves/fund balances exceeding minimum amounts required by fiscal policy may be appropriated if it is determined to be in the best interest of OCSD. Directors may also appropriate reserves in case of emergencies or unusual circumstances. Transfers between Revenue Areas require formal action by the Board of Directors. Unexpended appropriations automatically lapse at the end of the fiscal year and are included in the ending fund balances. Budget Assumptions Section 3 – Page 21 2020-22 Proposed Budget Assumptions Economic Assumptions •Inflation for Orange County in FY 2020-21 isprojected to be 1.9 percent based on the 2019projected percentage change in consumer priceindex obtained from Chapman University. A 1.9 percent inflation factor will also be used forFY 2021-22. Revenue Assumptions •Based upon the proposed Sewer Service Fee Rate Schedule to be approved by the Board inMarch 2018, the single-family residence (SFR)rate will increase by $4 (1.2 percent) to $343 inFY 2020-21, which is less than the projectedCPI. •Note that each $1 increase in the SFR rategenerates approximately $900,000 per year. •The capital facilities capacity charge (CFCC) feecaptures only those infrastructure costs thatrelate to additional capacity. The proposedCFCC fee to be approved by the Board in March2018 will increase by eight percent for FY 2020-21. Other infrastructure costs such as improvedtreatment, rehabilitation, refurbishment, andreplacement, will be supported through user fees. •Given the Facilities Master Plan adopted inDecember 2017, a rate study was completed inDecember 2017 to ensure that the CFCC feemethodology remains equitable and to confirm that an appropriate share of system costs wouldbe recovered from new development. •Revenues will be budgeted to reflect little growth in Equivalent Dwelling Unit (EDU) connectionsthat have remained flat over the past five years. •Permit user rates for flow will increase by 3.8 percent, Biochemical Oxygen Demand (BOD)will increase by 0.5 percent and TotalSuspended Solids (TSS) will increase by2.7 percent for FY 2020-21 based upon the RateStudy completed in December 2017. •Annexation fees capture both the net currentassets and the equivalent property taxallocations totaling $4,235 per acre. •Annexable property in the District’s service areasphere is minimal; consequently, no FY 2020-21income from annexation fees is anticipated. •Property tax revenues are preliminarilyestimated to increase by approximately fivepercent from FY 2019-20 to $98,354,000. A two percent annual increase in AssessedValue is authorized by the state constitution and is included in the increases noted above. Theadditional increase in assessed value is fromauthorized increases to market value whenproperty is sold at a higher value. •Earnings on the investment of the District’soperating cash and reserves will be budgeted at1.0 percent of the average cash and investmentbalance projected for the fiscal year. •No additional debt issuance is scheduled for FY 2020-21. Operating Assumptions •Operating expenses are expected toapproximate the adopted FY 2019-20 budget of $168 million. •Average daily flows are projected at 188 mgd forFY 2020-21 and 188 mgd for FY 2021-22. TheFY 2019-20 flow projection of 188 mgd reflectsan increase of 1 mgd from the actual for the first5 months of the current year and is 2 mgd abovethe final actual flow for FY 2018-19. Employee/Staffing Assumptions •Staffing level is expected to remain flat. Noadditional positions are anticipated. The totalFY 2019-20 authorized staffing level is 640.00FTEs, excluding Management Discretionpositions. •Vacant positions as of 12/31/19 are budgeted at50 percent of step 1 for the remainder ofFY 2019-20 and at 100 percent of step 2 forFY 2020-21. •New positions will be projected at100 percent of step 1 for FY 2020-21. 2020-21 & 2021-22 Budget Section 3 – Page 22 •A 3.0 percent vacancy factor on authorized positions has been budgeted for FY 2020-21.The actual vacancy factor is currently running at4.7 percent, but is on a downward trend due tothe streamlined recruitment processes now inplace. This vacancy factor accounts for timespent for recruitment and turnover. •The Memorandums of Understanding (MOUs)for the OCEA, the Local 501, and the Supervisorand Professional (SPMT) groups expire on June30, 2022. Salary adjustments will be included inthe budget for COLA based upon the currentMOUs. •Retirement costs for employees enrolled inOCERS Plans G and H are estimated at a rateof 14.10 percent of the employee’s base salary for FY 2020-21, up from 13.30 percent inFY 2019-20. The rates for Plans G and H include the District’s pickup of 3.5 percent ofemployees’ required contributions. Employees enrolled in OCERS Plan B areestimated at a rate of 11.97 percent of theemployee’s base salary for FY 2020-21, up from11.25 percent in FY 2019-20. All employees hired on or after January 1, 2013 are enrolled in OCERS Plan U and areestimated at a rate of 10.88 percent for FY 2020-21, up from 10.37 percent in FY 2019-20. Interns are not enrolled in OCERS so theirretirement benefits are calculated at 6.2 percent(FICA rate). •Other employee benefits and insurances will bebudgeted to increase in FY 2020-21 andFY 2021-22 by moderate but yet to bedetermined amounts. Materials, Supplies & Services Assumptions •The proposed operating budget will continue toreflect an emphasis on safety, security, andmaintenance of plant assets and infrastructure. •An amount equal to half of one percent of theOperating materials and services budget will bea contingency for prior year re-appropriations. Since the current year’s budget lapses onJune 30, a contingency is needed in the succeeding budget year for goods or servicesordered at the end of one budget year but notdelivered until the following year. •An amount equal to 0.85 percent of theOperating materials and services budget will bethe General Manager’s contingency budget. These funds will be allocated to appropriate lineitems during the year after requests and justifications for unanticipated needs areapproved by the General Manager. •Resource needs for strategic initiatives will be included in the budget. Capital Improvement Program Assumptions •The FY 2020-21 and FY 2021-22 cash flowbudget, based on the most current ValidatedCapital Improvement Program (CIP), is thetarget. •The baseline CIP cash flow for FY 2020-21 is$209 million and for FY 2021-22 is $314 million. •Continual evaluation of the CIP by the AssetManagement Team may result in deferral orreduction of some projects and a resultantincrease in O&M repair costs for materials andservices, if the net cash flow impact is adecrease. •The FY 2020-21 and 2021-22 CIP budget willonly increase for critical projects which were notpreviously identified in the Strategic PlanUpdate. •For the first five months of FY 2019-20,$39.2 million of the $153.3 million CIP budget,approximately 25.6 percent, was expended. Debt Financing •OCSD will issue new debt in the form ofCertificates of Participation (COP) as needed tofund the CIP and to maintain reserves. •No additional debt issuance is scheduled forFY 2020-21 and FY 2021-22. •Debt will only be used for CIP and capitalexpenses, not for operating expenses. •Capital financing plans no longer include futureborrowings over the next ten years as theapproved user fee schedule is consideredsufficient. •Borrowing is proposed only for facilities which donot add capacity and that are funded by all users Budget Assumptions Section 3 – Page 23 for replacement, rehabilitation, and improved treatment. •Upon COP’s becoming callable or maturing, adetermination will be made as to the benefit ofpaying off the obligation or refinancing the debt. Reserve Assumptions The existing reserve policy is summarized as follows: ►A cash flow criterion will be established to fund operations, maintenance and certificates ofparticipation expenses for the first half of thefiscal year, prior to receipt of the first installmentof the property tax allocation and sewer serviceuser fees which are collected as a separate lineitem on the property tax bill. The level of thiscriterion will be established as the sum of anamount equal to six months operations andmaintenance expenses and the total of the annual debt (COP) service payments due inAugust each year. ►An operating contingency criterion will beestablished to provide for non-recurringexpenditures that were not anticipated when theannual budget and sewer service fees wereconsidered and adopted. The level of thiscriterion will be established at an amount equalto ten percent of the annual operating budget. ►A capital improvement criterion will bemaintained to fund annual increments of thecapital improvement program. The long-termtarget is for one half of the capital improvementprogram to be funded from borrowing and forone half to be funded from current revenues andreserves. With this program in mind, the target level of this criterion has been established atone-half of the average annual capitalimprovement program over the next ten years. ►A catastrophic loss, or self-insurance, criterionwill be maintained for property damage includingfire, flood and earthquake, for general liabilityand for workers' compensation. This criterion is intended to work with purchased insurancepolicies, FEMA disaster reimbursements andState disaster reimbursements. The potentialinfrastructure loss from a major earthquake, ofwhich OCSD currently has limited outsideinsurance coverage of $25 million, has beenestimated to be as high as $1.3 billion. Thelevel of this criterion has been set at $100million should such a catastrophic event occur. This criterion amount will assist OCSD with any short-term funding needs until Federal and State assistance becomes available. ►Accumulated capital funds will be set aside for certain specific, short-term capital improvementsas the need and availability arise. ►A capital replacement/renewal criterion has been established to provide thirty percent of the funding to replace or refurbish the current collection, treatment and disposal facilities at the end of their useful economic lives. Based on the Facilities Evaluation Report completed in December 2017, the current replacement value of these facilities is estimated to be $3.56 billion for the collection facilities and$7.18 billion for the treatment and disposal facilities. The initial criterion level has been established at $75 million, which will be augmented by interest earnings and a small portion of the annual sewer user fee, in order to meet projected needs through the year 2030. ►Provisions of the various certificates ofparticipation (COP) issues require debt servicereserves to be under the control of the Trusteefor that issue. These reserve funds are notavailable for the general needs of OCSD and must be maintained at specified levels. Thecurrent level of required COP service reserves is projected to be $170.8 million. ►Accumulated funds exceeding the levels specified by District policy will be maintained for future capital improvements and rate stabilization. These funds will be applied to future years' needs in order to maintain rates or to moderate annual fluctuations. There is no established target for this criterion. Miscellaneous •The budget document will be in a bi-annualformat with two, one-year budgets presented for FY 2020-21 and FY 2021-22. •The budget worksheets for operating costs willcontain one column for FY 2020-21 and one column for 2021-22. The column will representall collection, treatment, and disposal/reusecosts. 2020-21 & 2021-22 Budget Section 3 – Page 24 This page was intentionally left blank Accounting System & Budgetary Control Section 3 – Page 25 Accounting System and Budgetary Control Fund Accounting & Proprietary Funds The accounts of OCSD are organized within one Enterprise Fund, a Proprietary Fund Type. The District’s Enterprise Fund is comprised of two Revenue Areas which are identified as Revenue Area 14 and the Consolidated Revenue Area (Revenue Area 15). Each Revenue Area includes a share of capital outlay activities, self-insurance activities, debt service activities, and operating activities. These activities are allocated to each Revenue Area based on sewage flows, location, or level of participation in specific programs. Enterprise Funds are used to account for operations that are financed and operated in a manner similar to a private business enterprise, where the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis are financed or recovered through user charges. Basis of Accounting Basis of accounting refers to the point at which revenues and expenses are recognized in the accounts and reported in the financial statements. Enterprise funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. In an enterprise fund, revenues are recognized when earned and expenses are recognized when incurred, regardless of the timing of related cash flows. Budgetary Basis of Accounting The operating budget for the Enterprise Fund is adopted on a basis consistent with generally accepted accounting principles. Except as noted in the following paragraph, the basis of accounting and the budgetary basis of accounting are the same. Budgeted amounts are as originally adopted and as further amended by Board action of 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. Internal Controls OCSD is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and that the valuation of costs and benefits requires estimates and judgments by management. Budgetary Control Budgetary controls are maintained to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Board of Directors. The budgetary level of control, the level at which operating expenses cannot legally exceed the appropriated amount, is exercised at the department level. 2020-21 & 2021-22 Budget Section 3 - Page 26 Orange County Sanitation District Fund Structure Diagram Revenue Sources Section 3 - Page 27 Revenue Sources OCSD has a variety of revenue sources available for operating and capital expenses. The major revenue sources are as follows: •User Fees •Property Taxes •Industrial Waste Permit User Fees •Interest Earnings •Debt Proceeds These sources have generally accounted for 90 percent more than of the total revenue to OCSD. The following graph summarizes revenues from all sources for OCSD over the past two fiscal years, the current year, and through the following two proposed budget years: Total revenues increased from $440.6 million in FY 2017-18 to $498.1 million in FY 2018-19, or $57.5 million. This increase was due mostly to: (1) an increase of $21.0 million in intra-district equitysale/purchase between the Consolidated RevenueAreas and Revenue Area 14; (2) the $25.8 millionincrease in investment and interest income; (3) a $3.0million increase in permitted user fees due to higher rates and an increase in the strength of the dischargefrom the permittees. In FY 2020-21, revenues are being proposed at $488.3 million, an increase of $19.9 million, or 4.3 percent over the prior year budget. This increase is primarily attributable to the increases of $11.6 million in CIP reimbursements from other agencies, $4.3 million in general user fees, and $1.9 million in property taxes revenue. In FY 2021-22, revenues are being proposed at $497.3 million, an increase of $9.0 million, or 1.8 percent over the prior year. This increase is primarily attributable to the 1.2 percent increase in user fees that is expected to generate an additional $3.6 million. Property tax revenue is expected to generate an additional increase of $2.0 million, or another projected increase of 2.0 percent over the prior year. Property Taxes The County is permitted by State law (Proposition 13) to levy taxes at one percent of full market value (at time of purchase) and can increase the assessed value no more than two percent per year. OCSD receives a share of this basic levy proportionate to the amount that was received in the 1976 to 1978 period less $3.5 million, the amount that represents the State's permanent annual diversion from special districts to school districts that began in 1992-93. The District's annual share of the one percent ad valorem property tax levy is first dedicated for the payment of COP debt service. The apportionment of the ad valorem tax is pursuant to the Revenue Program adopted in April 1979 to comply with regulations of the Environmental Protection Agency, the State Water Resources Control Board, and in accordance with COP documents and Board policy. As shown in the graph above, property tax revenues increased from $94.2 million in FY 2017-18 to a projected $98.0 million in FY 2019-20, primarily due to the robust economy and strong housing and commercial property markets beginning. Property tax revenues are now being projected to increase 2.0 percent per year through FY 2021-22. Historically the District’s property tax revenues exceeded the District’s debt service obligations. This trend should continue with debt service obligations leveling off and no new planned COP debt issuances $440.6 $498.1 $476.9 $488.3 $497.3 $400.0 $420.0 $440.0 $460.0 $480.0 $500.0 $520.0 2017-18Actual 2018-19Actual 2019-20Projected 2020-21Proposed 2021-22Proposed Revenues (in millions)Five Year Trend $94.2 $98.3 $98.0 $99.9 $102.0 $90.0$92.0$94.0$96.0$98.0$100.0$102.0$104.0 2017-18Actual 2018-19Actual 2019-20Projected 2020-21Proposed 2021-22Proposed Property Taxes (in millions)Five Year Trend 2020-21 & 2021-22 Budget Section 3 - Page 28 User Fees User fees are ongoing fees for service paid by customers connected to the sewer system. A property owner, or user, does not pay user fees until connected to the sewer system and receiving services. Once connected, a user is responsible for their share of the system's costs, both fixed and variable, in proportion to the user’s demand on the system. In addition, the Consolidated Revenue Area charges industrial and commercial user fees to customers discharging high-strength or high-volume wastes into the sewer systems. Revenue Area No. 14 needs are funded by IRWD. Previously OCSD had been able to avoid or minimize user fee increases by reducing operational costs through reorganizing and streamlining District operations. As a result of the capital improvement program expansion and the rehabilitation and refurbishment of existing facilities, annual increases in user fees are required. In 2007, District staff conducted strategic planning workshops with the Board of Directors to layout a capital program to deliver the levels of service desired by the Board of Directors. These levels of service and resulting capital projects are included in the District’s 5-year Strategic Plan that were most recently updated in December 2019. The original effort was reinforced through the adoption of a new Master Plan in December 2017, a planning effort to define the District’s goals, responsibilities, and requirements over the next 20 years, and includes projections through the assumed “build-out” of the District’s service area to the year 2050. Incorporating the 2017 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 approximately 1.2 percent a year. These increases are necessary to balance the funding of operating expenses and capital improvements with current revenues and existing debt, and to minimize the increase in rates over an extended period of time. The impact of this five-year sewer fee schedule increased the single-family residence user fee rate, the underlying rate for all sewer service user fees, an average of 1.2 percent a year from $335 in 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 throughout the State according to the 2017 California Wastewater Charge Survey conducted by the State Water Resources Control Board. Interest Earnings Interest earnings are generated from the investment of accumulated reserves consisting of a cash flow/contingency, a capital improvement, a capital replacement/refurbishment, and a self-insurance reserve, all projected to total $845.8 million at July 1, 2020. The District’s reserves are invested in accordance with the District’s investment policy and the State Government Code through an outside money manager, and an independent custodian bank. Interest and investment earnings fluctuate from year to year based on the timing of CIP outlays and debt issuances, which impact the available balance in reserves for investing, and in the rise and fall of fixed-income investment market yields. $0.0 $50.0 $100.0 $150.0 2010 2015 2020 COP Obligations vs. Property Tax Receipts(in millions) Property Taxes COP Service $288.3 $293.1 $298.8 $301.8 $306.5 $275.0$280.0$285.0$290.0$295.0$300.0$305.0$310.0 2017-18Actual 2018-19Actual 2019-20Projected 2020-21Proposed 2021-22Proposed Net User Fees (in millions) Revenue Sources Section 3 - Page 29 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 for assuming the collection risk, receives the delinquent taxes and user fees, penalties and interest for the defaulted properties when paid. For the fiscal year ended June 30, 2019, OCSD received $390,539,478 in tax and user fees from the County, or 98.96 percent of the total tax and user fee levy. $4.3 $28.7 $12.5 $13.3 $12.8 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 2017-18Actual 2018-19Actual 2019-20Projected 2020-21Proposed 2021-22Proposed Interest Earnings (in millions) 2020-21 & 2021-22 Budget Section 3 - Page 30 This page was intentionally left blank. __________________________________________________ Where the Money Comes From – FY 2020-21 Section 4 – Page 1 FY 2020-21 Total Funding Sources - $1,331,378,951 Where the Money Goes – FY 2020-21 FY 2020-21 Total Funding Uses - $1,331,378,951 Capital Improvement Reserve$524,475,476 39.4% Cash Flow/Contingency Reserve$121,372,185 9.1% Debt Service Reserve$97,278,000 7.3%Self-Insurance Reserve$100,000,000 7.5% Fees$353,541,782 26.6% Interest & Misc$29,626,188 2.2% Intradistrict Transfers$3,500,000 0.3% Property Taxes$99,935,520 7.5% Self-Insurance Revenues$1,649,800 0.1% Operations$173,910,516 13.1% Self-Insurance Program$2,410,000 0.2% Joint Capital$104,049,900 7.8% District Capital$43,512,100 3.3%Debt Service$72,838,369 5.5% Cash Flow/Contingency Reserve$128,087,000 9.6% Debt Service Reserve$94,005,000 7.1% Self-Insurance Reserve$100,000,000 7.5% Capital Improvement Reserve$609,066,066 45.6% Intradistrict Transfers$3,500,000 0.3% 2020-21 & 2021-22 Budget Section 4 – Page 2 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 Funding Uses by Category Section 4 – Page 3 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 Prog. 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 2020-21 & 2021-22 Budget Section 4 – Page 4 This page was intentionally left blank. __________________________________________________ Where the Money Comes From – FY 2021-22 Section 4 – Page 5 FY 2021-22 Total Funding Sources - $1,428,506,818 Where the Money Goes – FY 2021-22 FY 2021-22 Total Funding Uses - $1,428,506,818 Capital Improvement Reserve$609,066,066 42.7% Cash Flow/Contingency Reserve$128,087,000 9.0% Debt Service Reserve$94,005,000 6.6% Self-Insurance Reserve$100,000,000 7.0%Fees$363,071,761 25.4% Interest & Misc$26,262,825 1.8% Intradistrict Transfers$3,500,000 0.2% Property Taxes$102,034,166 7.1% Self-Insurance Revenues$2,480,000 0.2% Operations$174,065,159 12.2% Self-Insurance Program$2,480,000 0.2% Joint Capital$198,127,800 13.9%District Capital$42,718,200 3.0% Debt Service$66,736,869 4.7% Long Term Liability Reduction$173,855,000 12.2% Cash Flow/Contingency Reserve$127,420,000 8.9% Debt Service Reserve$90,962,000 6.3% Self-Insurance Reserve$101,170,000 7.1% Capital Improvement Reserve$447,471,790 31.3% Intradistrict Transfers$3,500,000 0.2% 2020-21 & 2021-22 Budget Section 4 – Page 6 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 Funding Uses by Category Section 4 – Page 7 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 2020-21 & 2021-22 Budget Section 4 – Page 8 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 Assessments 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 $97,976,000 99,935,520 102,034,166 Capital Facilities Capacity Charge 21,037,000 18,000,000 19,313,912 20,125,170 20,809,000 Sale of Capacity Rights, SAWPA & SSBSD - - - - - Capital Assessment (IRWD)4,247,376 5,397,000 4,620,483 5,194,000 8,478,000 Non-Operating Revenue Subtotal 123,627,376 119,751,000 121,910,395 125,254,690 131,321,166 INTRADISTRICT REVENUES Annual Intradistrict Joint Equity Purchase/Sale 19,682,194 - - 3,500,000 3,500,000 FINANCING REVENUES Sale of Certificates of Participation - - - - - Financing Revenues Subtotal - - - - - SELF INSURANCE REVENUES Workers' Comp SFI 695,296 780,000 888,700 628,800 800,000 General Liability SFI 1,299,998 1,750,000 1,716,900 1,021,000 1,680,000 Subtotal-Self Insurance 1,995,294 2,530,000 2,605,600 1,649,800 2,480,000 Total Revenues 498,120,412 470,740,058 476,854,980 488,253,290 497,348,752 TOTAL AVAILABLE FUNDING 1,186,405,926$ 1,187,542,367$ 1,237,352,083$ 1,331,378,951$ 1,428,506,818$ Budget Resources Section 4 – Page 9 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$ 2020-21 & 2021-22 Budget Section 4 – Page 10 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 REVENUES 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 & M Collection 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 INTRADISTRICT 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 REVENUES 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$ Budget Resources Section 4 – Page 11 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$ 2020-21 & 2021-22 Budget Section 4 – Page 12 BUDGET RESOURCES BY REVENUE AREA - 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 INTRADISTRICT 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 REVENUES 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$ Budget Resources Section 4 – Page 13 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$ 2020-21 & 2021-22 Budget Section 4 – Page 14 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 A cash flow criterion has been established at a level to fund operations, maintenance and certificate of participations 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 criterion has been 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 criterion has been maintained to fund annual increments of the capital improvement program. The target level of 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. A catastrophic loss or self-insurance criterion has been 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 A capital replacement/renewal criterion policy has been established 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. Projected Reserves Section 4 – Page 15 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. 2020-21 & 2021-22 Budget Section 4 – Page 16 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 & Mtce 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 Outstanding 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 Cash Flow Projection Section 4 – Page 17 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 & Mtce 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 SFR Annual 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 CIP Bal.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 2020-21 & 2021-22 Budget Section 4 – Page 18 This page was intentionally left blank. Operations Budget Overview Section 5 – Page 1 OPERATING REQUIREMENTS The net operating requirements budget finances the administrative, operations and maintenance, and program costs for collecting, treating, and recycling of wastewater. The departmental budgets are all completely funded by the operating fund. The net operating budget for FY 2020-21 is $173.9 million and for FY 2021-22 is $174.1 million. Following are descriptions of the major factors that comprise the operating budget: Regulatory Requirements: Many of the Sanitation District’s activities are either required or regulated by environmental permits issued by federal, state, and local regulatory authorities. These authorities regulate effluent quality, air emissions, greenhouse gases, stormwater quality, biosolids and hazardous waste management, as well as extensive monitoring of all media. New and developing regulations also drive future capital and operating expenses. Operating Chemicals: Chemicals are used for disinfection, coagulation, and odor control programs. • Coagulants: Coagulant chemicals are used to enhance primary treatment solids removal, solids dewatering, waste solids thickening, and to control hydrogen sulfide in the digesters. • Ferric chloride is an iron salt which is used with anionic polymer to increase the solids removal efficiencies in the primary treatment process and to control hydrogen sulfide levels in the digester gas as required by AQMD Rule 431.1. • Cationic polymer is added to digested sludge prior to dewatering to improve the sludge and water separation process. Cationic polymer is also added to the waste activated sludge dissolved air flotation thickeners to thicken the solids before digestion. • Odor Control: Under septic or anaerobic conditions, sulfate-reducing bacteria can flourish resulting in the accumulation of sulfides in the liquid phase. One of the sulfide forms present is hydrogen sulfide (H2S). When released to the vapor phase, this creates the potential for both odor and corrosion problems in the collection system. • Sodium hydroxide is added in “shock doses” to the sewer trunklines for sulfide control. Sodium hydroxide is added over a period of 30 to 45 minutes at sufficient dosages to elevate the pH level. The high pH slug temporarily inactivates sulfate reducing bacteria and greatly reduces hydrogen sulfide generation. • The largest costs for collection system odor control are for ferrous chloride, magnesium hydroxide and calcium nitrate. These costs cover continuous treatment for odor control within five trunklines. The contractor(s) provide(s) leased equipment and on-going labor for services such as maintenance, remote monitoring of the chemical feed rates, optimization, and field sampling. • Sodium hypochlorite, caustic soda, and granular carbon are used in plant process scrubbers to treat foul air, comply with SCAQMD permits, and prevent odor complaints. Residuals Management: These costs are for hauling and beneficial reuse of wastewater solids recovered during the treatment process. Solids treated through the digesters, called biosolids or treated sewage sludge, can be recycled offsite via composting (about 60 percent) or land application on farm fields (about 40 percent). Most of the Sanitation District’s residuals management costs are for hauling about 23 truckloads (575 tons) of biosolids offsite every day. A smaller component of residuals management cost is non-recyclable grit and screenings waste and sewer debris that must be disposed of at a landfill. Repairs and Maintenance: Preventive maintenance and repair activities throughout the Sanitation District’s expanded and upgraded treatment facilities and collection system continue to keep this budgetary category at a significant amount. This category includes contracted services, materials and supplies, and outsourced service agreements. Utilities: The cost for utilities is a significant component of the operating budget. The largest utility cost incurred by the Sanitation District is the electricity that is purchased to supplement generated power to operate the plant processes. The central generation facilities produce approximately 70 percent of the electricity used for running the plants. In FY 2005-06, the central generation production was reduced in order to meet new air emission limits. This issue has been resolved by the installation of emission control systems on the engines at both plants. 2020-21 & 2021-22 Budget Section 5 – Page 2 Proposed Budget Comparisons by Department 2019-20 Budget BudgetRevised2019-20 2020-21 Percent 2021-22 PercentDepartment 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% Operations Summary Section 5 – Page 3 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 Services 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% 2020-21 & 2021-22 Budget Section 5 – Page 4 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 2021-22AreaProjectedDecreaseBudgetedPercent 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 Cost/MG 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$ Operations Summary Section 5 – Page 5 Proposed Budget Net Operating Expense by Line Item Adjusted % Budget % BudgetBudget2019-20 2020-21 Change to 2021-22 Change toDescription2019-20 Projected Proposed 2019-20 Proposed 2020-21 Salaries, Wages, & BenefitsSalaries & 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, & ServicesAdministrative 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 & PublicationRepro-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 & SuppliesChem. 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% 2020-21 & 2021-22 Budget Section 5 – Page 6 Proposed Budget Net Operating Expense by Line Item (Continued) % Budget % BudgetBudget2019-20 2020-21 Change to 2021-22 Change toDescription2019-20 Projected Proposed 2019-20 Proposed 2020-21 Professional ServicesLegal 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%Enviro 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/aADR Services - - - n/a - n/aOther1,532,840 1,037,554 2,071,273 35.13%1,789,947 -13.58% Research & MonitoringEnviron. 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 & MaintenanceMaterials & 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% UtilitiesTelephone 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 CostsOutside 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%Uncollectible Accounts - - - n/a - n/a 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%Other Interest Expense - - - n/a - n/aLoss 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 90,503 90,503 90,503 Flow Per Day, MGD 188.00 188.51 188.00 188.00 Notes to Operations Summary Section 5 – Page 7 NOTES TO THE FISCAL YEAR 2020-21 and 2021-22 OPERATIONS BUDGET Salaries, Wages & Benefits Salaries & Wages - The proposed budget is set at 639.0 Full Time Equivalent (FTE) positions for FY 2020-21 and 2021-22. Provision has been made in the proposed salaries for FY 2020-21 and FY 2021-22 in order to comply with the terms of those current MOUs which extend through these fiscal years. Retirement - The Sanitation District's employees are members of the Orange County Employees Retirement System. Employees participate in one of three plans depending on hire date: Plan G/H (older), Plan B, or Plan U (newer, with a lower retirement benefit). The employer’s required contribution rate for Plan G/H has been increased from 13.30 percent to 14.10 percent, Plan B has been increased from 11.25 percent to 11.97 percent, and Plan U has increased from 10.37 percent to 10.88 percent in FY 2020-21. In addition, for Plan G/H the Sanitation District pays 3.5 percent on behalf of the employees. Group Insurance - This includes the Sanitation District’s share of employees’ medical and dental insurance plans, and life and disability insurance premiums. It also includes the other post- employment benefits that the Sanitation District is obligated to pay for retirees. The group insurance budget approximates $16,000 per employee. Tuition & Certification Reimbursements - To encourage the self-development and training of employees, the Sanitation District has a tuition and certification reimbursement program. This appropriation is set at $138,000 for FY 2020-21 and $141,000 for FY 2021-22. Development Pay - To further promote employee efforts that increase job knowledge, skills, and abilities, the Sanitation District has established this benefit for employees obtaining educational degrees and job-related certificates/ licenses. The budget of $543,000 for FY 2020-21 and 2021-22 is based on estimated employee participation. Uniforms - This budget projection is for uniforms provided to field and lab employees in accordance with employee MOUs. Workers' Compensation - This item is used to maintain the level of accumulated reserves for workers’ compensation self-insurance. The amount recommended is $518,900 for FY 2020-21 and $690,000 for FY 2021-22. The total estimated expenditures for the workers' compensation program are set forth in detail in the Self-Insurance section. Unemployment Insurance - The Sanitation District is on an actual claims paid basis, which has historically resulted in an overall lower cost because of a favorable claims history. This appropriation is proposed at a level consistent with the prior year’s actual costs. Memberships - The Sanitation District has memberships in agencies such as the National Association of Clean Water Agencies (NACWA), the National Water Research Institute (NWRI), the Water Environment Research Foundation (WERF), the California Association of Sanitation Agencies (CASA), the Southern California Alliance of Publicly Owned Treatment Works (SCAP), the Association of California Water Agencies (ACWA), and the Center for Demographic Research (CDR). Administrative Expenses - These accounts include supplies, postage, technical journals and publications, forms, small office equipment, and small computer items. The small equipment and computer items cost less than $10,000 per item and exclude items that are capitalized. Printing and Publication - The budget provides for in-house and outside reproduction costs and reflects an expanded management information system and administrative requirements as well as a continuing demand by the public and regulatory agencies for information. This group of accounts also includes costs for photo processing, advertisements, and notices. Training & Meetings - This category includes ongoing technical and safety training and materials for staff, required training for computerized plant monitoring, and control systems training to allow for a more adaptive and flexible work force. Cost savings have been achieved in part through increased use of on-line training. The Sanitation District continues to place an emphasis on safety, technical, leadership, and management training. 2020-21 & 2021-22 Budget Section 5 – Page 8 Operating Materials & Supplies Chemical Coagulants - Chemical coagulants are used to enhance the primary treatment process by increasing the solids removal efficiencies and are used to control hydrogen sulfide levels in the digester gas. The budgeted amounts for FY 2020-21 and FY 2021-22 for Anionic Polymer, Cationic Polymer, and Ferric Chloride are $446,000, $5.3 million, and $3.2 million respectively. These chemical coagulants budgets represent no significant change in usage or cost from the FY 2019-20 Adopted Budget. Odor Control Chemicals - The Sanitation District uses sodium hydroxide (caustic soda), and bleach as the primary odor control chemicals within the treatment plants’ foul air scrubbers The bleach budget of $392,000 for FY 2020-21 is a $30,000 increase over the previously approved budget, and is a strategic move to replace more expensive chemicals. In addition, muriatic acid is an odor control chemical used for cleaning the scrubbers. Ferrous chloride, magnesium hydroxide, calcium nitrate, and caustic soda are the primary odor control chemicals used within the collection system and work by reducing the generation of hydrogen sulfide in the trunklines. The chemical dosage and costs reflect the established performance level and affects the use of chemicals at the treatment plants. The odor control budget is $6.9 million for FY 2020-21 and $7.2 million for FY 2021-22; an overall decrease from the previously approved budget. Disinfection Chemicals - Sodium Hypochlorite (bleach) is used at the treatment plants for the disinfection of plant water and the control of filamentous organisms in activated sludge in the secondary treatment process. The Sanitation District’s bleach budgets for the purpose of disinfection are $213,000 in fiscal years 2020-21 and 2021-22. Sodium Bisulfite is used for dechlorination of outfall effluent at Plant No. 2, if required, to ensure that no residual chlorine is discharged into the ocean. The sodium bisulfite budgets are $5,000 in fiscal years 2020-21 and 2021-22. Gasoline, Oil and Fuel - This group of accounts includes gasoline, oil, and diesel fuel required to operate stationary treatment plant equipment as well as approximately 300 pieces of major mobile equipment such as cars, trucks, cranes, and generators. Also included in this group of accounts is the cost of fuel for the compressed natural gas station. The cost of the natural gas is partially recovered by selling the compressed natural gas as vehicle fuel to outside users. The budgets for this group of items are expected to remain relatively the same for the next two fiscal years, given no volatility in fuel prices. Other Operating Materials & Supplies - This group of accounts is for miscellaneous items such as scrubber acids, activated carbon, solvents, cleaners, hardware, janitorial supplies, tools, safety equipment, laboratory supplies, and property taxes that are required to operate and maintain existing and expanding facilities. This group of accounts is expected to remain relatively the same during fiscal years 2020-21 and 2021-22. Contractual Services - The major component of this category is biosolids removal and transportation costs. Contracts have been executed with firms for agricultural reuse of residual solids and composting for biosolids disposal. The total costs budgeted for solids removal is $12.4 million for FY 2020-21 and FY 2021-22. The centrifuges are running at both plants and producing a drier cake than the belt presses. The drier cake produces a lower volume to be hauled away and hauling costs are remaining steady. This category also includes appropriations for other waste removal, janitorial, groundskeeping and security services, county service fees, temporary employment services to level out periodic increases in staff workload, long-term leaves, and position vacancies, outside laboratory services, manhole rehabilitation, and industrial line and outfall inspection and cleaning services. Professional Services - This group of accounts includes General Counsel, special labor counsel, engineering, advocacy efforts, audit and accounting services, software program consulting, and other technical consulting services. Research and Monitoring - The costs in this category consist of contract services to carry out the extensive ocean monitoring program required by EPA Region IX under the provisions of the Sanitation District’s NPDES permit, air quality monitoring costs, the Sanitation District’s contribution to the Southern California Coastal Water Research Project (SCCWRP) being conducted under a joint powers Notes to Operations Summary Section 5 – Page 9 agreement with other Southern California municipal dischargers, operating costs for the Sanitation District’s ocean monitoring vessel, and provides for operational and ocean research and evaluation to develop optimum operating parameters in the treatment plants. Overall, this category of costs is expected to remain approximately the same for the FY 2020-21 and FY 2020-21 budgets at $1.3 million and $1.4 million respectively. Repairs and Maintenance - The majority of the materials and services budgets support the maintenance of the collection system and the treatment plants. This includes street overlays and manhole raising, manhole cover purchases, surveying services, easement improvements, equipment maintenance, and out-sourced service contracts and maintenance agreements. The FY 2020-21 and FY 2021-22 budgets include repairs and maintenance costs totaling $28.4 million and $24.2 million, respectively. Materials and services for FY 2020-21 and FY 2021-22 include: Bushard Diversion structure repair, Sunflower Trunkline liner repairs, centrifuge overhaul, primary and secondary clarifier rehabilitation and repairs, and other maintenance work including digester cleaning, inlet gate replacement, fleet and emergency generator maintenance. Service agreements for FY 2020-21 and FY 2021-22 include Information Technology maintenance, support, and licenses for IBM software, Microsoft Enterprise, Cisco Smart Net, Maximo, Oracle, and disaster recovery hardware and software, and Operations & Maintenance service contracts for crane certification, engine monitoring systems, door and gate maintenance, scale, fire extinguisher, and fire sprinkler certification, uninterruptible power supply electrical maintenance, scaffolding, and tree trimming. Utilities - The cost for utilities is a significant component of the operating budget. The overall cost for utilities is anticipated to be $8.4 million for the FY 2020-21 and FY 2021-22 budgets. 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 estimated consumption and resulting costs for electrical energy purchased from Southern California Edison for the plant processes and support buildings is $5.2 million, excluding contingencies and electricity requirements of all outlying pump stations. This estimate includes normal operations of CenGen and assumes $400,000 in savings due to battery utilization at Plant No. 1. The total budgeted amount for purchased electricity is $6.1 million for the FY 2020-21 and 2021-22 budgets. Other Operating Costs Insurance Premiums - Other than $30,000 budgeted each year in the operating section to insure the Sanitation District’s ocean vessel, the cost for general liability and property insurance premiums is budgeted entirely within the Self-Insurance section. Property & General Liability In-Lieu Insurance Premium - This item is used to maintain the level of accumulated reserves for property and general liability self-insurance. The amount recommended is $1.8 million for the FY 2020-21 and FY 2021-22 budgets. The total estimated expenditures for the insurance program are set forth in detail in the Self-Insurance section. Other Operating & Non-Operating Expenses - Expenses not chargeable elsewhere, such as annual regulatory fees assessed by SCAQMD and SWRCB, freight, obsolete inventory write-off, and other miscellaneous items are recorded within these groups of accounts. Cost Allocation - This represents direct labor and benefit charge-outs and materials, supplies, and services cost allocation to the capital projects where the related work is performed. Net Operating Requirements - This line item represents the net salary, wages, benefits, materials, supplies, and services related to operating costs for collection, treatment, and disposal activities after charge-backs to CIP. 2020-21 & 2021-22 Budget Section 5 – Page 10 This page was intentionally left blank. General Management Administration 110 BOARD OFDIRECTORS GENERAL MANAGER SECRETARY TO THE GENERAL MANAGER ASSISTANTGENERALMANAGER (2) ADMINISTRATION MANAGER 2020-21 & 2021-22 Authorized FTE Positions Executive Managers 3.0 Manager 1.0 Supervisors / Professionals 1.0 ____________________________ Total 5.0 5 5 4 4 5 5 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 1 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 ♦A Two-Year Strategic Plan was created andapproved by the Board of Directors in November2019. ♦On schedule to close out the year’s operatingbudget at 96% of the approved budget. ♦Current FTE count is 605. ♦Create a new 5-year Strategic Plan & Recommend for Board Adoption. ♦Manage operating expenditures to within 96% to 100% of the approved budget ♦Ensure OCSD does not exceed 640 FTEs ♦Contribute to employee development through theBLAST program by providing quality leadershipdevelopment training, materials, classes andpresentations by reaching at least 70% of OCSDstaff ♦At mid-year, the BLAST program has reached 34%of OCSD staff. The program is currently being evaluated to determine if changes need to be made. 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 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦Update 2-Year Strategic Plan Achieved Achieved Achieve Achieve Board Approval ♦Operating Expenditures Achieved Achieved Achieve Achieve Board Approval ♦Do not exceed approved FTEs Achieved Achieved Achieve Achieve Board Approval ♦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 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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 1,787,652$ 3,172,680$ 2,100,840$ 1,910,830$ (39.77%)1,940,940$ 1.58% $2,334,960 $2,110,386 $1,787,652 $3,172,680 $1,910,830 $1,940,940 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 4 Board Services 120 ADMINISTRATIONMANAGER CLERK OF THE BOARD ASSISTANT CLERK OF THE BOARD PROGRAM ASSISTANT(2)OFFICE ASSISTANT RECORDS MANAGEMENT SPECIALIST ASSISTANT GENERAL MANAGER DATA MANAGEMENT TECHNICIAN I 2020-21 & 2021-22 Authorized FTE Positions Supervisors / Professionals 3.00 Technical Staff 1.00 Administrative / Clerical 3.00 ____________________________ Total 7.00 5 5 5 5 7 7 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 5 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 withinallotted regulatory guidelines ♦Achieved 100% success rate ♦Maintain compliance: OCSD Conflict of Interest Codefilings and Mandatory training (Ethics and Harassment)♦Achieved 100% success rate ♦Publish and distribute agenda packets to the Board ofDirectors one week prior to meeting ♦Achieved 100% success rate ♦Advise key staff of items approved or denied afterBoard of Directors Meeting ♦Achieved 100% success rate 2020-21 & 2021-22 Performance Objectives ♦Mail Board agenda packages six calendar days prior to Board meeting, 100% of the time, unless otherwiseauthorized by the General Manager. ♦Maintain accurate records of official actions taken by the Board of Directors and post those actions on websiteby 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 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦Board Agenda Packages 100% 100% 100% 100% In-house standard ♦Maintain and post accurateRecords of Board Actions 100% 100% 100% 100% Legal compliance ♦Respond to 95% of publicrequests within 7 business days 100% 100% 100% 100% In-house standard ♦Maintain Legal Compliance 100% 100% 100% 100% Legal compliance ♦Maintain District TransparencyCertificate of Excellence 100% 100% 100% 100% In-house standard Section 6 - Page 6 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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% $658,863 $635,957 $819,786 $693,980 $1,195,850 $1,236,800 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 8 Public Affairs 140 ASSISTANT GENERALMANAGER ADMINISTRATION MANAGER PRINCIPAL PUBLIC AFFAIRS SPECIALIST PUBLIC AFFAIRS SPECIALIST (2) SENIOR PUBLIC AFFAIRS SPECIALIST GRAPHICS DESIGNER ADMINISTRATIVE ASSISTANT 2020-21 & 2021-22 Authorized FTE Positions Supervisors / Professionals 4.0 Administrative & Clerical 2.0 ____________________________ Total 6.0 5 5 5 5 6 6 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 9 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 programsthat meet the communications needs of OCSD’s internal audiences by producing a minimum of 70 internal communication pieces. ♦At mid-year, this goal had already been completed andexceeded. To date, over 200 pieces of internal communication have been produced. ♦Produced and circulated daily articles on MyOCSD, weekly 3Things 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 programsthat meet communications needs ofOCSD’s external audiences by reaching aminimum of 3,000 people. ♦At mid-year, this goal had already been met and exceeded.Over 85 pieces of external communication have been produced and distributed reaching over 40,000 people. ♦Hosted over 500 people at OCSD’s 65th Anniversary OpenHouse, over 1,200 people toured OCSD, staff participated in 12 speaking engagements, and hosted a booth at 6 community events. ♦Support General Manager activities andprovide information to Board of Directorsthrough the General Manager’s monthlyreport and the new Board memberorientation. ♦Prepared/presented reports on division efforts to OCSDLegislative and Public Affairs Committee. ♦Prepared the GM Monthly Report. ♦Proactive engagement in legislativeadvocacy efforts that could impact OCSDand the industry. ♦Monitoring approximately one hundred bills, specifically six toeight of high priority to OCSD and the industry. Have alsosubmitted 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 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦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 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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%) $1,093,062 $1,001,396 $1,115,609 $1,155,600 $1,300,290 $1,291,790 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 12 Human Resources Administration 160 DIRECTOR OFHUMAN RESOURCES HUMAN RESOURCES & RISK MANAGER GENERAL MANAGER HUMAN RESOURCES SUPERVISOR PRINCIPAL HUMAN RESOURCESANALYST SENIOR HUMAN RESOURCES ANALYST (2) HUMAN RESOURCES ANALYST (4) HUMAN RESOURCES ASSISTANT (2) HUMAN RESOURCES SUPERVISOR PRINCIPAL HUMAN RESOURCESANALYST SENIOR HUMAN RESOURCES ANALYST (2) 2020-21 & 2021-22 Authorized FTE Positions Executive Manager 1.0 Manager 1.0 Supervisors / Professionals 12.0 Administrative/Clerical 2.0 ____________________________ Total 16.0 16 16 16 16 16 16 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 13 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 ofeffective workforce planning/development and successionsplanning strategies. ♦Implemented, continuous. ♦Implement a comprehensive employee relations and laborrelations training program by the end of fiscal year 2019-20.♦In process. Will be completed in April. ♦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 the approved budget. ♦Estimated to stay within 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 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦Approved labor contracts Implement Sustain Sustain Sustain HR Work Plan ♦Workforce Planning/Workforce Development Sustain Sustain Sustain Sustain OCSD Strategic Plan ♦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 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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% $3,410,308 $4,038,470 $5,257,364 $4,987,200 $4,167,885 $4,459,485 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 16 Risk Management/Safety/Security 161 HUMAN RESOURCES AND RISK MANAGER SAFETY & HEALTHSUPERVISOR SECURITY & EMERGENCY PLANNING SPECIALIST SAFETY & HEALTHREPRESENTATIVE (2) ADMINISTRATIVE ASSISTANT SAFETY & HEALTHSPECIALIST (2) SENIOR SAFETY & HEALTHREPRESENTATIVE (2) DIRECTOR OF HUMAN RESOURCES SENIOR CONSTRUCTION INSPECTOR 2020-21 & 2021-22 Authorized FTE Positions Supervisors / Professionals 8.0 Administrative & Clerical 2.0 ____________________________ Total 10.0 11 11 11 11 10 10 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 17 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 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦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 Audit Completed N/A N/A N/A GM Strategic Plan ♦Security Recommendations Ongoing Ongoing Planned Planned DHS Recommendations ♦Implement Leading Safety Indicator Completed Completed Planned Planned Continuous Safety Improvement ♦Revise Risk Register Completed Completed N/A N/A GM Strategic Plan Section 6 - Page 18 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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% $4,276,844 $5,452,890 $4,937,757 $5,785,360 $3,917,452 $4,003,910 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 20 Administrative Services Administration 210 ASSISTANT GENERAL MANAGER GENERALMANAGER ADMINISTRATIVE ASSISTANT 2020-21 & 2021-22 Authorized FTE Positions Administrative / Clerical 1.0 ____________________________ Total 1.0 3 3 3 3 1 1 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 21 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 property parcel database to the County by August 10th. ♦Submittal completed in time for placement on secured property tax bills. ♦All Treasury investments will be in compliance with the State Government Code 100% of the time. ♦All Treasury investments in compliance 94.54% of the time. ♦Coordinate and uphold solicitation schedules in support of planned projects and emergency procurements. ♦Solicitation schedules upheld at 100% completion. 2020-21 & 2021-22 Performance Objectives ♦Submit annual sewer service fees (SSF) within property parcel database to the County by August 10th. ♦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 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦Submit SSF to the Countyby August 10th Yes Yes Expected Expected In-house standard ♦Investment Compliance 100% 94.54% 100% 100% In-house standard ♦Uphold SolicitationSchedules 100% 100% 100% 100% In-house standard Section 6 - Page 22 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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 1.25% 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 (1.29%) Total 542,912$ 180,710$ 556,295$ 7,470,815$ 4034.15%7,740,181$ 3.61% $503,698 $426,607 $542,912 $180,710 $7,470,815 $7,740,181 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 24 Financial Management 220 ASSISTANT GENERAL MANAGER CONTROLLER ACCOUNTINGSUPERVISOR -Payroll and Revenue ACCOUNTINGSUPERVISOR -Budget and Planning ACCOUNTING SUPERVISOR -Financial Reporting and Accounts Payable SENIOR ACCOUNTANT PRINCIPAL ACCOUNTANT ACCOUNTANT SENIOR STAFF ANALYSTPRINCIPAL ACCOUNTANT ACCOUNTING ASSISTANT II (3) SENIOR ACCOUNTANT PRINCIPAL PROJECT CONTROLS ANALYST PAYROLL TECHNICIAN (2)PRINCIPAL STAFF ANALYST (2) ACCOUNTING ASSISTANT II (3) ACCOUNTANT PRINCIPAL STAFF ANALYST (2) 2020-21 & 2021-22 Authorized FTE Positions Manager 1.0 Supervisors / Professionals 15.0 Administrative & Clerical 8.0 ____________________________ Total 24.0 19 19 19 19 24 24 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 25 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 daysof the following month for 83% of the year.♦Goal was achieved. ♦No more than 30 invoices for payment outstandinglonger than 30 days during the completion of any oneaccounts payable cycle 90% of the time. ♦No more than 30 invoices for payment outstandinglonger than 30 days during the completion of anyone accounts payable cycle 100% of the time. ♦The current backlog of rebate claims will beprocessed resulting in all claims being processed with90 days of receipt. ♦All sewer service fee rebate requests wereprocessed within 90 days 100% of the time. ♦Payroll processing will be completed on time 100% ofthe time and error free >99.5% of the time.♦Payroll was processed with an error-free rate of100% on a bi-weekly and interim basis. ♦All debt service payments will be paid electronically,on the actual due dates, and error free 100% of thetime. ♦All debt service payments were paid electronically,on the actual due dates, and error free 100% of thetime. ♦All treasury investments will be in compliance with the California State Government Code 100% of the time. ♦All treasury investments were in compliance with the California State Government Code 94.54% of thetime. 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 anyone 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 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦Financial Reports IssuanceStandard 83% 83% 83% 83% In-house standard ♦Accounts Payable Standard 100% 100% 90% 90% In-house standard ♦Sewer Service Refund 90 Day Standard 100% 100% 90% 90% In-house 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 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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% $3,234,439 $3,928,939 $2,975,364 $3,442,410 $4,145,843 $4,291,078 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 28 Contracts, Purchasing, & Materials Management 230 ASSISTANT GENERAL MANAGER CONTRACTS & PURCHASING MANAGER PURCHASINGSUPERVISOR CONTRACTSSUPERVISOR CONTRACTS / PURCHASING ASSISTANT (2) CONTRACTS ADMINISTRATOR (3) SENIOR CONTRACTSADMINISTRATOR (3) PRINCIPAL CONTRACTSADMINISTRATOR (2) PRINCIPAL BUYER BUYER (2)STOREKEEPER (4) SENIOR STOREKEEPER (3) LEAD STOREKEEPER (2) MATERIALS CONTROL SUPERVISOR SENIOR BUYER (2) SENIOR STAFF ANALYST CONTRACTS / PURCHASING ASSISTANT (2) 2020-21 & 2021-22 Authorized FTE Positions Manager 1.00 Supervisors / Professionals 17.00 Administrative & Clerical 13.00 ____________________________ Total 31.00 32 32 32 32 31 31 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 29 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 maintaina 97% accuracy rate or better.♦Achieved. ♦Obtain the 2019 “Achievement of Excellence inProcurement” (AEP) award by meeting all National requirements. ♦AEP award received. ♦Successfully implement a new surplus ordinance.♦Achieved. ♦Conduct District-wide procurement training.♦In progress. ♦Successfully implement a new PurchasingOrdinance.♦Completed. 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 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦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 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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 1,011,384 99,500 124,480 114,620 15.20%114,620 0.00% Total 5,684,800$ 4,966,960$ 4,238,524$ 4,619,006$ (7.01%)4,800,172$ 3.92% $4,470,980 $4,208,271 $5,684,800 $4,966,960 $4,619,006 $4,800,172 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 32 Information Technology 250 ASSISTANT GENERAL MANAGER INFORMATION TECHNOLOGYSYSTEMS & OPERATIONS MANAGER STAFFANALYST SENIOR INFORMATION TECHNOLOGYANALYST (3) PRINCIPAL INFORMATION TECHNOLOGYANALYST (3) INFORMATION TECHNOLOGYANALYST III (3) INFORMATION TECHNOLOGYSUPERVISOR INFORMATION TECHNOLOGYTECH II (2) INFORMATION TECHNOLOGY SUPERVISOR INFORMATION TECHOLOGYANALYST III (3) DATA MANAGEMENT TECH II (6) DATA MANAGEMENT TECH I (3) SENIORINFORMATIONTECHNOLOGYANALYST (6) INFORMATION TECHNOLOGYANALYST II (3) PRINCIPALINFORMATION TECHNOLOGYANALYST (4) INFORMATION TECHNOLOGYANALYST III (2) INFORMATION TECHNOLOGYSUPERVISOR SENIOR INFORMATION TECHNOLOGYANALYST ADMINISTRATIVE ASSISTANT 2020-21 & 2021-22 Authorized FTE Positions Manager 1.0 Supervisors / Professionals 32.0 Technical Staff 11.0 Administrative/Clerical 1.0 ____________________________ Total 45.0 45 45 46 46 45 45 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 33 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 theindustry average by 15%.♦OCSD’s phish-prone percentage has decreasedand is 27% better than industry average. ♦Manage Operating Budget between 96%-100% ofapproved budget.♦Currently spent 95% of 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 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦Replace Obsolete Desktop, Mobile, and Server Computers 11% 15% 25% of total computers 25% of total computers Rotate Desktops Every 5 Years, Mobiles 3 Years ♦Maintain a Safety Scorecard above 95% for Overall Score 100% 100% 95% 95% Sanitation District Goal ♦Cyber Security Awareness/Protection N/A 27% 15% 15% GM Workplan ♦Replace Obsolete Network Infrastructure for OCSD’s Office Computing N/A N/A 30% 30% Cyber security and system availability ♦Manage Operating Budget 85% 98% 96-100% 96-100% Sanitation District Goal Section 6 - Page 34 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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% $10,030,624 $9,611,584 $11,610,882 $12,159,200 $12,093,310 $12,284,250 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 36 Environmental Services Administration 610 GENERALMANAGER DIRECTOR OF ENVIRONMENTAL SERVICES EXECUTIVEASSISTANT 2020-21 & 2021-22 Authorized FTE Positions Executive Manager 1.00 Administrative / Clerical 1.00 ____________________________ Total 2.00 2 2 2 2 2 2 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 37 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% to100% of the approved budget.♦On Track to meet goal of 96-100% ♦Ensure that reporting divisions achieve 90% of individual performance objectives. ♦All objectives were met. ♦Ensure all environmental compliance reportingrequirements are met on or before requiredsubmission date 100% of the time. ♦On track. ♦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 date100% of the time. ♦Conduct audits of all major environmental permits with adopted audit schedule: 1-5 years. Performance Measures Summary 2018-19 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦Manage Budget 100% 96-100% 96-100% 96-100% In-house standard ♦Department PerformanceObjectives > 90% > 90% ≥ 90% ≥ 90% In-house standard & permit req. ♦Compliance ReportingRequirements 100% 95% 100% 100% Required by permit ♦Audit Environmental PermitsEvery 3 Years 100% 100% 100% 100% In-house standard & permit req. Section 6 - Page 38 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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% $877,581 $873,774 $814,290 $619,510 $915,720 $991,620 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 40 Resource Protection 620 DIRECTOR OF ENVIRONMENTAL SERVICES ENGINEERING MANAGER OFFICEASSISTANTADMINISTRATIVEASSISTANT ENGINEERINGSUPERVISORENGINEERINGSUPERVISOR ENGINEER (4) SENIOR ENGINEER PRINCIPAL ENVIRONMENTALSPECIALIST (2) SENIOR ENVIRONMENTALSPECIALIST PROGRAMASSISTANT (2) ENGINEER ASSOCIATEENGINEER (2) SOURCE CONTROLSUPERVISOR LEAD SOURCE CONTROL INSPECTOR ENVIRONMENTALTECHNICIAN (3) PRINCIPAL ENVIRONMENTALSPECIALIST SOURCE CONTROLINSPECTOR II (6) ADMINISTRATIVEASSISTANT SOURCE CONTROLINSPECTOR I (3) SENIOR ENGINEER PROGRAMASSISTANT (2) 2020-21 & 2021-22 Authorized FTE Positions Manager 1.0 Supervisors / Professionals 16.0 Technical Staff 13.0 Administrative / Clerical 7.0 ____________________________ Total 37.0 47 37 37 37 37 37 2017 2018 2017 2018 2021 2022 Staffing Trends Section 6 - Page 41 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 requiredpretreatment program reports.♦To date 100% compliance. ♦Implement Ordinance terms and conditions,enforcing prohibitions (e.g. stormwater, slugdischarges, etc.). ♦To date 100% compliance. ♦Issue and renew 100% of the industrial wastewaterpermits prior to the expiration date.♦Staff issued and renewed 100% of the industrialwastewater permits prior to the expiration dates. ♦Complete all assigned inspections and monitoringof Class I industrial permit holders.♦Staff completed all assigned inspections andmonitoring of Class I industrial permit holders. ♦Support of GWRS, special projects and routine monitoring requirements. ♦Staff is supporting GWRS, special projects and 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 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦Manage Division Budget 101% 100% 100% 100% In-house Standard ♦Meet 100% of RegulatoryDeadlines (Reports)100% 100% 100% 100% NPDES Permit Requirement ♦Implement Ordinance 100% 100% N/A N/A Federal Pretreatment Requirement ♦Industrial PermitIssuance/Renewal 100% 100% 100% 100% Federal Rule and Permit Requirement ♦Inspections/Monitoring 100% 100% 100% 100% Federal Rule and Permit Requirement ♦Support GWRS, specialprojects, and routinemonitoring.100% 100% 100% 100% Joint Agreement Section 6 - Page 42 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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 (49.23%) 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% $5,676,790 $4,904,370 $6,038,206 $5,754,790 $6,130,250 $6,617,570 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 44 Laboratory, Monitoring & Compliance 630 DIRECTOR OF ENVIRONMENTAL SERVICES LABORATORY, MONITORING, AND COMPLIANCEMANAGER ENVIRONMENTAL SUPERVISOR – Analytical Chemistry ENVIRONMENTAL SUPERVISOR – Microbiology & General Chemistry ENVIRONMENTALSUPERVISOR – Ocean Monitoring SENIOR ENVIRONMENTAL SPECIALIST (6) ENVIRONMENTALSPECIALIST (3) PRINCIPAL ENVIRONMENTAL SPECIALIST (3) SENIOR ENVIRONMENTALSPECIALIST (6) BOATCAPTAIN PRINCIPALENVIRONMENTALSPECIALIST SENIORSCIENTIST PRINCIPAL ENVIRONMENTAL SPECIALIST (.5) SENIORSCIENTIST SCIENTIST ENVIRONMENTALSPECIALIST PRINCIPALENVIRONMENTALSPECIALIST (2) PRINCIPALENVIRONMENTALSPECIALIST SENIOR ENVIRONMENTALSPECIALIST (3) ENVIRONMENTALSPECIALIST (3) ENVIRONMENTALTECHNICIAN (3) ENVIRONMENTALSUPERVISOR – Environmental Compliance REGULATORY SPECIALIST (3) PRINCIPALENVIRONMENTALSPECIALIST (1.5) SENIOR REGULATORY SPECIALIST (2) SENIOR ENVIRONMENTALSPECIALIST (3) ADMINISTRATIVEASSISTANT SENIOR SCIENTIST SCIENTIST 2020-21 & 2021-22 Authorized FTE Positions Manager 1.0 Supervisors / Professionals 49.0 Technical Staff 3.0 Administrative / Clerical 1.0 ____________________________ Total 54.0 42 52 52 52 54 54 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 45 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 byinternal standards and industry benchmarking with regional laboratories. ♦Met all internal benchmarks in all major areas oflaboratory established through regional benchmarking. ♦Successful performance on proficiency teststandards 100% correctly in no more than two attempts and achieve no less than 95% correct results on the first attempt. ♦Completed all proficiency tests on time andpassed 100% on the first attempt. ♦Manage division controllable costs to within 5% ofprojection. ♦Managed division controllable costs to 99.41% ofprojected budget. ♦Support of GWRS, special projects and routinemonitoring requirements. ♦All samples were collected, analyzed andreported on schedule, as defined by permit andinteragency agreements. ♦Meet all NPDES Permit compliance standards,Strategic Initiatives and Strategic Process Studies to advance OCSD’s Mission. ♦Met all monitoring and reporting requirements asdefined by permit and RWQCB. 2020-21 & 2021-22 Performance Objectives ♦Continued efficiency improvements as measured by internal standards and benchmarking with otherlaboratories. ♦Successful performance on proficiency test standards 100% correctly in no more than two attempts andachieve 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 toadvance OCSD’s Mission. Performance Measures Summary 2018-19 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦Laboratory Productivity 100% 100% 100% 100% Internal and external benchmark comparison. ♦Laboratory Standards 100% 100% 100% 100% Blind check standards. ♦Budget 99.85% 100% ≤100% ≤100% In-house standard ♦Support GWRS 100% 100% 100% 100% Percent of requested work completed ♦Permit Compliance 100% 100% 100% 100% Compliance measure Section 6 - Page 46 Laboratory, Monitoring & Compliance Budget Overview The FY 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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 9.20% 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% $10,681,763 $9,965,352 $11,863,880 $11,393,290 $12,264,727 $12,673,508 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 48 Engineering Administration 710 GENERALMANAGER ASSISTANT GENERAL MANAGER SENIOR STAFF ANALYST DIRECTOR OF ENGINEERING PRINCIPAL STAFF ANALYST ADMINISTRATIVEASSISTANT EXECUTIVEASSISTANT 2020-21 & 2021-22 Authorized FTE Positions Executive Manager 1.0 Supervisors / Professionals 2.0 Administrative / Clerical 2.0 ____________________________ Total 5.0 2 2 2 2 5 5 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 49 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 cashflow.♦Expected to expend 76%. ♦Ensure the department’s expenditures are managed to 90- 100% of approved budget. ♦Expected to be 90-100%. ♦Ensure that reporting divisions achieve 90% ofindividual performance objectives.♦Expected to be 95%. ♦Prepare and maintain 20-year District-widecapital plan.♦Yes. 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 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦Expend 90-100% of ProjectAnnual CIP Cash Flow 89.8% 76% 90-100% 90-100% In-house standard ♦Ensure Department’sExpenditures 90-100%96.5% 90-100% 96-100% 96-100% In-house standard ♦Ensure Reporting DivisionsAchieve 90% Performance Measures 951 95% 90% min 90% min In-house standard ♦Prepare & Maintain 20-yearDistrict-wide Capital Plan Yes Yes Yes Yes In-house standard Section 6 - Page 50 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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% $479,406 $451,013 $725,078 $753,920 $1,278,080 $1,367,530 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 52 Planning 740 DIRECTOR OF ENGINEERING ENGINEERINGMANAGER ENGINEER PRINCIPAL STAFF ANALYST ENGINEERING ASSOCIATE ENGINEERINGSUPERVISORENGINEERINGSUPERVISOR ENGINEER (6) ASSOCIATEENGINEER SENIORENGINEER (2) ASSISTANT GENERAL MANAGER 2020-21 & 2021-22 Authorized FTE Positions Manager 1.0 Supervisors / Professionals 13.0 Administrative / Clerical 1.0 _____________________________ Total 15.0 15 15 14 14 15 15 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 53 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 within 90-100% of proposed budget. ♦Expected to be less than 90%. ♦Facilitate the District-wide project Clearinghouse.♦Yes, meetings occur bi-weekly. ♦Maintain a 20-year District-wide CapitalImprovement Plan (CIP).♦Completed the 2017 Facilities Master Plan. Sincethen, through Asset Management, the 20-year CIPhas been updated on an annual basis. ♦Response to 100% of environmentalcorrespondence within 45 days.♦Yes. ♦Complete the Facilities Master Plan EnvironmentalImpact Report ♦In progress, expected to be completed duringFY21-22. ♦Complete the Biosolids Master Plan EnvironmentalImpact Report.♦Report was completed May 2018. 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, replacementand 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 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦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 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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 0.00% Total 3,587,479$ 5,414,675$ 3,820,812$ 4,120,560$ (23.90%)4,263,525$ 3.47% $3,384,796 $2,969,918 $3,587,479 $5,414,675 $4,120,560 $4,263,525 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 56 Project Management 750 DIRECTOR OF ENGINEERING ENGINEERINGMANAGER SENIOR ENGINEER (10) CIP PROJECT MANAGER ADMINISTRATIVE ASSISTANT ENGINEERINGSUPERVISORENGINEERINGSUPERVISOR ENGINEER (3) ASSOCIATEENGINEER SENIORENGINEER ASSISTANT GENERAL MANAGER ENGINEERING ASSOCIATE 2020-21 & 2021-22 Authorized FTE Positions Manager 1.00 Supervisors / Professionals 18.00 Administrative / Clerical 2.00 _____________________________ Total 21.00 17 17 16 16 21 21 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 57 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 managedto 90-100% of the proposed budget. ♦Projected to be 55-65%. ♦Expend 85-105% of budgeted CIP expenditures.♦Projected at 76%. ♦Manage non-construction costs for active projects to< 37.5% of construction costs.♦Projected to be 33.7%. ♦Maintain a Combined Advertising Variance of < 30days late.♦Projected to be 23 days late. ♦Maintain a Combined Completion Variance of < 120days late.♦Projected to be 28 days early. 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 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦Manage Division Budget 53.13% 90-100% 90-100% 90-100% In-house standard ♦Expend 85-105% of Projectednet CIP outlay 89.8% 76% 85-105% 85-105% In-house standard ♦Manage Non-constructionCosts for Active Projects to<37.5% of Construction Costs 34.7% 33.7% < 37.5% < 37.5% In-house standard ♦Combined AdvertisingVariance of < 30 days late 15 days 23 days < 30 late < 30 late In-house standard ♦Combined CompletionVariance of < 120 days late -4 days 78 days < 120 late < 120 late In-house standard Section 6 - Page 58 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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 3,272,798$ 5,019,310$ 4,404,695$ 4,197,645$ (16.37%)4,373,695$ 4.19% $2,754,464 $2,394,896 $3,272,798 $5,019,310 $4,197,645 $4,373,695 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 60 Design 760 DIRECTOR OF ENGINEERING ENGINEERINGMANAGER ENGINEERINGSUPERVISOR – PCI ENGINEERINGSUPERVISOR – Design/Mech Civil Plants ASSOCIATEENGINEER PRINCIPAL IT ANALYST (3) SENIOR IT ANALYST (3) IT ANALYST III IT ANALYST II ADMINISTRATIVE ASSISTANT SENIORENGINEER (4) ENGINEER (2) ENGINEERINGSUPERVISOR – Design/Mech Civil Collections SENIORENGINEER ENGINEER (2) SENIOR ENGINEER (5) ENGINEERINGSUPERVISOR – E, I & C Design ENGINEER (2) ENGINEER ASSOCIATE ENGINEER SENIORENGINEER (2) ENGINEER ASSISTANT GENERAL MANAGER 2020-21 & 2021-22 Authorized FTE Positions Manager 1.0 Supervisors / Professionals 34.0 Administrative / Clerical 1.0 ____________________________ Total 36.0 53 53 54 54 36 36 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 61 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%of proposed budget. ♦Expected to be 90-100%. ♦Reduce program change order performance towards goal of< 5.5%. ♦5.3% as of December 31 data. ♦Assure all mission critical real-time SCADA systems areonline and available > 99.9%. ♦Expected to be 100%. ♦SCADA system programming complete and bench testedprior to functional acceptance testing. ♦Expected to be 100%. ♦New electrical equipment is properly modeled andequipment is property configured and tested prior to energization. ♦Expected to be 100%. ♦ ♦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 unplanneddowntime). ♦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 andtested 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 thelatest industry standards. Performance Measures Summary 2018-19 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦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(less planned downtime)100% 100% 99.9% 99.9% In-house standard ♦SCADA System ProgrammingComplete 100% 100% > 98% > 98% In-house standard ♦New Electrical EquipmentConfigured and Tested. 100% 100% > 98% > 98% In-house standard ♦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 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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% $8,474,088 $7,623,697 $9,357,123 $7,583,810 $7,416,060 $7,637,260 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 64 Construction Management 770 DIRECTOR OF ENGINEERING ENGINEERINGMANAGER ENGINEERINGSUPERVISOR – Plant 1 Construction Management ENGINEERINGSUPERVISOR – Plant 2 Construction Management CONSTRUCTION INSPECTIONSUPERVISOR – E, I & C QA CONSTRUCTION INSPECTIONSUPERVISOR – Plant 2 Construction QA SENIOR PLANNER / SCHEDULER ENGINEER (4) SENIORENGINEER CONSTRUCTIONINSPECTOR (3) SENIOR CONSTRUCTIONINSPECTOR (3) SENIORENGINEER ENGINEER ASSOCIATE ENGINEER (2) SENIOR COST ESTIMATOR PLANNER / SCHEDULER SENIOR CONSTRUCTIONINSPECTOR (2) ENGINEERINGASSISTANT II (2) ADMINISTRATIVEASSISTANT CONSTRUCTION INSPECTIONSUPERVISOR – Plant 1 Construction QA SENIOR CONSTRUCTIONINSPECTOR (2) CONSTRUCTIONINSPECTOR (4)CONSTRUCTIONINSPECTOR (2) ENGINEERING ASSISTANT II (2) ADMINISTRATIVEASSISTANT ASSISTANT GENERAL MANAGER 2020-21 & 2021-22 Authorized FTE Positions Manager 1.0 Supervisors / Professionals 17.0 Administrative / Clerical 22.0 ____________________________ Total 40.0 29 29 30 30 40 40 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 65 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 to90-100% of proposed budget ♦Manage construction change orders to goal of5.5% ♦No sewer spills on CIP collections projects ♦Division injury rate < 2.9 to support OCSD goal of< 5.7 ♦Update Construction Management guide manual ♦Implement Project Management InformationSystems to replace existing system ♦Expected to be <90% ♦5.3% as of December 31 data ♦No spills ♦Projected to be 0.0 ♦In progress. Framework has been developed ♦New system is in implementation 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 industrystandards. ♦Implement the Project Management Information Systems (PMIS) to replace existing system. Performance Measures Summary 2018-19 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦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 Management Manual N/A In Progress In Progress In Progress In-house standard ♦Implement PMIS In Progress In Progress Yes Yes In-house standard Section 6 - Page 66 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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$ 4.54% $5,038,673 $4,476,768 $5,767,679 $5,670,320 $6,637,750 $6,939,300 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 68 Operations and Maintenance Administration 810 GENERAL MANAGER DIRECTOR OFOPERATIONS & MAINTENANCE SENIOR STAFF ANALYST STAFF ANALYST 2020-21 & 2021-22 Authorized FTE Positions Executive Manager 1.00 Supervisors / Professionals 2.00 ____________________________ Total 3.00 3 3 3 3 3 3 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 69 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,and energy permits and regulatory requirements. ♦Achieved 100% compliance with water, solids, air,and energy permits and regulatory requirements. ♦Achieve 100% compliance level of 90 to 100% of theLevels of Service targets.♦Achieved 100% compliance level of 90 to 100% ofthe Level of Service targets. ♦Manage operating expenditures to within 96 to100% of approved budget for the Department.♦Managed operating expenditures 97% of approvedbudget 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 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦Compliance with Permits &Regulatory Requirements 100% 100% 100% 100% In-house standard ♦Levels of ServiceCompliance 100% 90% 100% 100% In-house standard ♦Manage Budget 96.7% 97% 96-100% 96-100% In-house standard Section 6 - Page 70 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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% Total 476,676$ 804,870$ 325,200$ 709,620$ (11.83%)744,320$ 4.89% $488,755 $500,844 $476,676 $804,870 $709,620 $744,320 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 72 Collections Facilities Operations and Maintenance 820 MAINTENANCE MANAGER MAINTENANCESUPERVISOR(COLLECTIONS O&M) MECHANIC(3) MAINTENANCE SUPERVISOR (COLLECTIONS O&M) SENIORMECHANIC (3) LEADMECHANIC (2) SENIORMECHANIC (4) MECHANIC (5) LEADMECHANIC (3) ADMINISTRATIVE ASSISTANT DIRECTOR OFOPERATIONS & MAINTENANCE SENIOR ENGINEER PRINCIPAL ENVIRONMENTAL SPECIALIST SENIOR ENVIRONMENTAL SPECIALIST ENVIRONMENTAL TECHNICIAN OFFICE ASSISTANT 2020-21 & 2021-22 Authorized FTE Positions Manager 1.0 Supervisors / Professionals 5.0 Operations & Maintenance 20.0 Technical Staff 1.0 Administrative / Clerical 2.0 ____________________________ Total 26.0 26 26 26 26 26 26 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 73 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,and energy permits and regulatory requirements.♦Achieved 100% compliance with water, solids, air,and energy permits and regulatory requirements. ♦Achieve 100% compliance level of 90 to 100% ofthe Levels of Service targets.♦Achieved 100% compliance level of 90 to 100% ofthe Levels of Service targets. ♦Manage operating expenditures to within 96 to100% of approved budget.♦Managed operating expenditures to 83% ofapproved budget. ♦Achieve greater than 90% compliance with the Safety Scorecard. ♦Achieved 83.3% compliance with the safety 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 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦Compliance with Permits& RegulatoryRequirements < 100% 100% 100% 100% In house standard ♦Levels of Service Compliance 80% 100% 100% 100% In house standard ♦Manage Budget 91% 83% 96-100% 96-100% In house standard ♦Compliance with theSafety Scorecard 93.7% 83.3% 95% 95% In house standard Section 6 - Page 74 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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 4,055,320 423.27%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% $13,104,256 $12,585,474 $12,152,912 $13,369,492 $15,585,673 $16,153,634 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 76 Fleet Services 822 MAINTENANCEMANAGER MAINTENANCESUPERVISOR (FLEET SERVICES) LEADMECHANIC EQUIPMENT CRANEOPERATOR (2) AUTOMOTIVE/HEAVY EQUIP. TECHNICIAN (4) DIRECTOR OFOPERATIONS &MAINTENANCE 2020-21 & 2021-22 Authorized FTE Positions Supervisors / Professionals 1.0 Operations & Maintenance 7.0 ____________________________ Total 8.0 8 8 8 8 8 8 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 77 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, and energy permits and regulatory requirements. ♦Achieve greater than 90% compliance with Safety Scorecard. ♦Manage operating expenditures to within 96 to 100% of the approved budget. ♦Fleet Services in-house survey published with results achieving 90% or above satisfaction ratings. ♦Decrease average age of fleet over a 5-year period until all fleet vehicles meet the industry standard. ♦Achieved 100% compliance with state emissions regulations on all mobile equipment and vehicles. ♦Achieved 100% compliance with the Safety Scorecard. ♦Managed operating expenditures at 100% of approved budget. ♦Fleet survey not administered. ♦Achieved FY goal as part of multi-year approach. 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 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦RegulatoryCompliance 100% 100% 100% 100% DOT & State Regulations ♦Compliance withSafety Scorecard 100% 100% > 95%> 95%In-house standard ♦Manage OperatingExpenditures 96.6% 100% N/A N/A In-house standard ♦Fleet Survey N/A N/A N/A N/A In-house standard ♦Decrease FleetAverage Age 20% 20% 20%20%Industry Best Practice ♦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 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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 (86.22%)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 2.22% 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%) $2,135,609 $1,904,840 $1,994,639 $1,880,480 $2,040,071 $2,007,782 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 80 Plant No. 1 Operations 830 DIRECTOR OFOPERATIONS & MAINTENANCE CHIEF PLANTOPERATOR ADMINISTRATIVEASSISTANT DAY SHIFT/PROCESS FRONT SIDEDAY SHIFT BACK SIDENIGHT SHIFT BACK SIDEDAY SHIFT FRONT SIDENIGHT SHIFT OPERATIONSSUPERVISOR SENIOR PLANTOPERATOR (3) PLANTOPERATOR (4) CONTROL CENTER OPERATOR OPERATIONSSUPERVISOR SENIOR PLANTOPERATOR (3) PLANTOPERATOR (2) OPERATIONSSUPERVISOR (3) LEAD PLANTOPERATOR (4) SENIOR PLANTOPERATOR (4) LEAD POWER PLANT OPER OPERATIONSSUPERVISOR SENIOR PLANTOPERATOR (2) PLANTOPERATOR (4) OPERATIONSSUPERVISOR SENIOR PLANTOPERATOR (2) PLANTOPERATOR (3) OPERATIONSMANAGER ENGINEER SENIORENGINEER ASSOCIATEENGINEER (2) CONTROL CENTER OPERATOR O&M PROCESS SUPPORT POWER PLANTOPERATOR IIPOWER PLANTOPERATOR II POWER PLANTOPERATOR II POWER PLANTOPERATOR II PLANTOPERATOR PRINCIPAL STAFF ANALYST 2020-21 & 2021-22 Authorized FTE Positions Manager 1.00 Supervisors / Professionals 13.00 Operations & Maintenance 39.00 Administrative / Clerical 1.00 __ __________________________ Total 54.00 62 62 62 62 54 54 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 81 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,solids, air, energy permits and regulatoryrequirements. ♦Achieved 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.♦Achieved overall 83.3% compliance level of the Level of Service targets. ♦Manage operating expenditures to within 96 to100% of approved budget.♦Managed operating expenditures to 98.3% ofapproved budget. ♦Achieve greater than 90% compliance with theSafety Scorecard.♦Achieved 100% compliance with the SafetyScorecard. 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 Actual 2017-18 Projected 2018-19 Proposed 2019-20 Proposed Justification ♦Compliance with Permits &Regulatory Requirements 100% 100% 100% 100% In-house standard ♦Levels of ServiceCompliance 83.3% 83.3% > 90% > 90% In-house standard ♦Manage Budget 104.4% 98.3% 96-100% 96-100% In-house standard ♦Compliance with SafetyScorecard 100% 100% > 90% > 90% In-house standard Section 6 - Page 82 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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 (3.28%)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% $24,938,262 $25,419,293 $27,945,810 $31,542,920 $30,331,900 $30,510,180 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 84 Plant No. 2 Operations 840 OPERATIONS MANAGER CHIEF PLANTOPERATOR ADMINISTRATIVEASSISTANT DAY SHIFT/PROCESS FRONT SIDEDAY SHIFTBACK SIDENIGHT SHIFT BACK SIDEDAY SHIFT FRONT SIDENIGHT SHIFT OPERATIONSSUPERVISOR SENIOR PLANT OPERATOR (5) PLANTOPERATOR (5) OPERATIONSSUPERVISOR SENIOR PLANTOPERATOR (3) PLANTOPERATOR (6) OPERATIONSSUPERVISOR (3) LEAD PLANTOPERATOR (4) SENIOR PLANTOPERATOR (3) OPERATIONSSUPERVISOR SENIOR PLANTOPERATOR (1) PLANTOPERATOR (5) OPERATIONSSUPERVISOR SENIOR PLANTOPERATOR (1) PLANTOPERATOR (5) POWER PLANT OPERATOR IIPOWER PLANT OPERATOR IIPOWER PLANT OPERATOR II POWER PLANT OPERATOR II DIRECTOR OFOPERATIONS &MAINTENANCE LEAD POWER PLANT OPERATOR 2020-21 & 2021-22 Authorized FTE Positions Supervisors / Professionals 8.0 Operations & Maintenance 43.0 Administrative / Clerical 1.0 ____________________________ Total 52.0 50 50 50 50 52 52 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 85 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,and energy permits and regulatory requirements.♦Achieved 100% compliance with water, solids, air,and energy permits and regulatory requirements. ♦Achieve 100% compliance level of 90 to 100% ofthe Levels of Service targets.♦Achieved overall 83.3% compliance level of theLevels of Service targets. ♦Manage operating expenditures to within 96 to100% of approved budget.♦Managed operating expenditures to 94.9% ofapproved budget ♦Achieve greater than 90% compliance with theSafety Scorecard.♦Achieved 100% compliance with the SafetyScorecard. 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 Actual 2019-20 Projected 2020-21 Proposed 2021-22 Proposed Justification ♦Compliance with Permits &Regulatory Requirements 100% 100% 100% 100% In-house standard ♦Levels of ServiceCompliance 83.3% 83.3% > 90% > 90% In-house standard ♦Manage Budget 105.7% 94.9% 96-100% 96-100% In-house standard ♦Compliance with SafetyScorecard 100% 100% > 90% > 90% In-house standard Section 6 - Page 86 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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% $21,487,543 $19,168,727 $21,526,705 $18,989,328 $18,690,716 $19,057,086 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 88 Plant No. 1 Maintenance 870 DIRECTOR OFOPERATIONS & MAINTENANCE MAINTENANCEMANAGER MAINTENANCE SUPERINTENDENT MAINTENANCESUPERVISOR - Civil Facilities MAINTENANCE SUPERVISOR -Electrical MAINTENANCE SUPERVISOR -Mechanical MAINTENANCE SUPERVISOR -Rebuild MAINTENANCE SUPERVISOR -Mechanical MAINTENANCE SUPERVISOR - Instrumentation LEADMECHANIC LEAD ELECTRICAL TECH. LEAD INST. TECH. WELDER/FABRICATOR (3) SENIOR MECHANIC (3) LEAD ELECTRICAL TECH. (2) ELECTRICAL TECH. II (6) LEAD FACILITIES WORKER FACILITIES WORKER/BUILDER (2) FACILITIES WORKER/PAINTER LEADMECHANIC SENIORMECHANIC (6)SENIORMECHANIC (7) ELECTRICAL TECH. I (2)MACHINISTINST. TECH. II (9) INST. TECH. I ELECTRICAL TECH. II (2) ADMINISTRATIVE ASSISTANT MECHANIC MAINTENANCE SUPERINTENDENT (Div 880) MAINTENANCE SUPERVISOR -Heavy Mechanical (Div 880) MAINTENANCE SUPERVISOR -Planning & Scheduling MAINTENANCE SUPERVISOR -PM Optimization SENIOR MECHANIC (2) ENGINEER RELIABILITY MAINTENANCE TECH. (5) MAINTENANCE SPECIALIST (3)MAINTENANCE SPECIALIST (11) ASSOCIATE ENGINEER 2020-21 & 2021-22 Authorized FTE Positions Manager 1.0 Supervisors / Professionals 25.0 Operations & Maintenance 58.0 Administrative / Clerical 1.0 ____________________________ Total 85.0 85 85 61 61 85 85 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 89 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,and energy permits and regulatory requirements. ♦Achieved 100% compliance with water, solids, air,and energy permits and regulatory requirements. ♦Achieve 100% compliance level of 90 to 100% ofthe Levels of Service targets. ♦Achieved 100% compliance of the Levels ofService targets. ♦Manage operating expenditures to within 96 to100% of approved budget. ♦Managed operating expenditures at 86% ofapproved budget. ♦Maintain a Work Order backlog of less than 6weeks. ♦Maintained Work Order Backlog of less than 6weeks. ♦Achieve greater than 90% compliance with theSafety Scorecard ♦Achieved 100% compliance with the SafetyScorecard. ♦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 Actual 2017-18 Projected 2018-19 Proposed 2019-20 Proposed Justification ♦Compliance with Permits &Regulatory Requirements 100% 100% 100% 100% In-house standard ♦Levels of ServiceCompliance 100% 100% 100% 100% In-house standard ♦Operating expenditures 84% 86% 96-100% 96-100% In-house standard ♦Maintain Work OrderBacklog < 6 weeks < 6 weeks < 6 weeks < 6 weeks In-house standard ♦Safety ScorecardCompliance 98.1% 100% > 90% > 90% In-house standard ♦PM Compliance 81.3% 75.8% > 75% > 75% In-house standard Section 6 - Page 90 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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%) $16,414,637 $15,555,788 $15,478,237 $25,352,831 $23,335,730 $22,366,440 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 92 Plant No. 2 Maintenance 880 MAINTENANCEMANAGER MAINTENANCE SUPERINTENDENT (Div 870) MAINTENANCE SUPERVISOR -Instrumentation MAINTENANCE SUPERVISOR -Mechanical MAINTENANCE SUPERVISOR -Electrical MAINTENANCE SUPERVISOR -Facilities MAINTENANCE SUPERVISOR -Mechanical FACILITIES WORKER/BUILDER SENIOR MECHANIC (6) LEAD MECHANIC ELECTRICAL TECH. II (7) LEAD ELECTRICAL TECH. (2) LEAD INST. TECH. (2) INST. TECH. II (6) LEADMECHANIC SENIORMECHANIC (6) MAINTENANCE WORKER MECHANIC ELECTRICAL TECH. I (2) LEAD FACILITIES WORKER INST. TECH. I (2) DIRECTOR OFOPERATIONS &MAINTENANCE FACILITIES WORKER/PAINTER ADMINISTRATIVE ASSISTANT MAINTENANCE SUPERINTENDENT MAINTENANCE SUPERVISOR -Heavy Mechanical LEADMECHANIC SENIORMECHANIC (4) 2020-21 & 2021-22 Authorized FTE Positions Supervisors / Professionals 7.0 Operations & Maintenance 45.0 Administrative / Clerical 1.0 ____________________________ Total 53.0 45 45 50 50 53 53 2017 2018 2019 2020 2021 2022 Staffing Trends Section 6 - Page 93 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,and energy permits and regulatory requirements. ♦Achieve 100% compliance level of 90 to 100% ofthe Levels of Service targets. ♦Manage operating expenditures to within 96 to100% of approved budget. ♦Maintain a Work Order backlog of less than 6weeks. ♦Achieve greater than 90% compliance with theSafety Scorecard. ♦Achieve PM compliance of greater than 75%. ♦Achieved 100% compliance with water, solids, air,and energy permits and regulatory requirements. ♦Achieved 100% compliance of the Levels ofService targets. ♦Managed operating expenditures to 107% ofapproved budget. ♦Maintained a Work Order backlog of less than 6weeks. ♦Achieved 100% compliance with the SafetyScorecard. ♦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 Actual 2017-18 Projected 2018-19 Proposed 2019-20 Proposed Justification ♦Compliance with Permits &Regulatory Requirements 100% 100% 100% 100% In-house standard ♦Levels of ServiceCompliance 100% 100% 100% 100% In-house standard ♦Operating expenditures 98% 107% 96-100%96-100%In-house standard ♦Maintain Work OrderBacklog < 6 weeks < 6 weeks < 6 weeks < 6 weeks In-house standard ♦Safety Scorecard Compliance 100% 100% 100% 100% In-house standard ♦PM Compliance 89.7% 80.2% > 75%> 75%In-house standard Section 6 - Page 94 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 2020-21 & 2021-22 Budget Operating Expenses By Category 2018-19 Actual 2019-20 Revised Budget 2019-20 Projected 2020-21 Proposed Budget % Change 2021-22 Proposed Budget % 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$ 17,901,451$ 19,778,090$ 20,260,443$ 13.18%18,024,183$ (11.04%) $11,712,304 $13,593,770 $15,831,792 $17,901,451 $20,260,443 $18,024,183 2017 2018 2019 2020 2021 2022 Expenditure Trends Section 6 - Page 96 Self-Insurance Program Overview Section 7 - Page 1 SELF-FUNDED INSURANCE PLANS OCSD is partially self-insured for general liability and workers’ compensation. The General Liability and Property program and the Workers’ Compensation program have been in existence since 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 generalliability insurance coverage is $40 million per occurrence with an annual aggregate limit andwith a self-insured retention of $500,000. •The District’s current property insurancecoverage is $1 billion for perils of fire and $300 million for perils of flood, subject to a self-insured retention of $250,000. OCSD ispartially self-insured for earthquake, but doescarry $25 million in coverage on 15 key structureswith a $5 million deductible. OCSD also has a$50 million sublimit for builder’s risk under theproperty insurance program to ensure upcomingconstruction projects are adequately covered. •In order to maintain a reserve balance of$55 million for FY 2020-21 and FY 2021-22 forthe Property and General Liability program, appropriations for in-lieu premiums charged tothe Revenue Areas are recommended at$1,021,000 and $1,680,000 for FY 2020-21 andFY 2021-22, respectively. Workers’ Compensation •The District’s current excess workers’compensation coverage has unlimited statutorycoverage per occurrence and $4 millionemployer’s liability with a self-insured retention of$1 million per person per occurrence. •In order to maintain the reserve balance of $2 million for the Workers’ Compensationprogram, appropriations for in-lieu premiumscharged to operating divisions are recommendedat $518,800 and $690,000 for FY 2020-21 and FY2021-22, respectively. 2020-21 & 2021-22 Budget Section 7 - Page 2 Total of the Self-Insurance Program 2018-19 2019-20 2019-20 2020-21 2021-22 DESCRIPTION OR ACCOUNT TITLE Actuals Budget Projected Proposed Proposed Beginning Reserves 57,452,788$ 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$ Self-Insurance Program Section 7 - Page 3 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$ 2020-21 & 2021-22 Budget Section 7 - Page 4 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$ Capital Improvement Program Overview Section 8 - Page 1 CIP Budget Request Summary Each year, the Board of Directors, through their committee process, reviews and approves the Capital Improvement Program (CIP) prepared by staff for both sewage collection system projects (collections) and the joint works treatment and disposal system projects. CIP projects take several years to complete the planning, design, and construction cycle. The proposed budget for each project covers the life of the project. This budget is reevaluated each year for the purpose of managing annual cash flows. Thus, many of the projects in the CIP Budget for FY 2020-21 and 2021-22 are continuing projects that were approved in prior years. In December 2017, the 20 17 Facilities Master Plan was adopted by the Board of Directors. The Master Plan identified a phased 20-year program of capital improvement projects that will allow OCSD to maintain reliability and accommodate future growth, as well as meet future regulatory requirements, level of service goals, and strategic initiatives. With this phased 20-year program as a starting point, the Asset Management Program within the Planning Division continues assessing the condition of the District’s existing assets and systems to ensure these assets and systems can provide the necessary level of service. The Planning Division continues reviewing and updating the ongoing and future CIP to appropriately manage the risks associated with asset or system failure. Projects can be delayed, consolidated or rescoped to help ensure that the CIP is delivered in the most efficient way possible. The Asset Management Program will continue these efforts and will continue to define the future CIP project requirements not currently included on the CIP list but are anticipated within the long-term financial plan to ensure effective and efficient operations. This year, eight new projects are proposed for addition to the 2020-21 budget. These are: •Project No. 7-68: MacArthur Pump StationForce Main Improvements •Project No. J-135: Central Generation EngineOverhauls at Plant No. 1 and 2 •Project No. 11-33: Edinger Pump StationReplacement •Project No. J-120: Process Control SystemsUpgrades •Project No. P1-137: Support Buildings SeismicImprovements at Plant No. 1 •Project No. P2-135: Sodium Bisulfite StationRehabilitation at Plant No. 2 •Project No. P2-137: Digesters Rehabilitation atPlant No. 2 •Project No. P1-126: Primary SedimentationBasins No. 3-5 Replacement at Plant No. 1 District staff has also validated all active and future CIP projects to ensure the project scopes of work, schedule and cost estimates are up to date. Through the budget validation process, each project’s schedule, staff resources, total project cost, cash flow and risks are assessed to confirm the budgetary requirements. The validated CIP includes 70 active and future capital projects, five programs, such as the Planning Studies Program (M-Studies) and Small Construction Program (M-FE), and budget for capital equipment purchases with a total CIP budget authority of $4.18 billion. The total CIP budget authority has increased by $153 million as compared to FY 2019-20 approved budget of $4.03 billion. The changes are summarized below: FY2019-20 Approved Total CIP Budget Authority $4.03 B Project Net Changes: Midyear Approvals $1.3 M New $392 M Budget Increases $265 M Budget Decreases ($247 M) Cancellation/Closures ($257 M) Capital Equipment Purch. ($0.7 M) Total: $153 M FY2020-21 Proposed Total CIP Budget Authority $4.1 B Following is a table of the FY 2020-21 proposed CIP budget: Description FY 2020-21CIP Budget Capital Improvement Program (CIP) $164.8 M Less: Savings and Deferrals ($17.3) M Net CIP Outlay $147.6 M The proposed FY 2020-21 net CIP outlays can be categorized by the location of the projects in terms of wastewater treatment process, or by the reasons why the projects are needed, i.e. project drivers. charts showing the distribution of the funds by CIP driver and location are shown on the following page. The proposed net CIP outlays can also be categorized by project phase or status. The following chart shows the net CIP outlays of projects in the Planning, Design and Construction phases for FY 2020-21. 2020-21 & 2021-22 Budget Section 8 - Page 2 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 in the Planning phase are planning or research studies that are primarily managed under the Planning Studies Program, or M-Studies. 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 projected expenditures of $5.9 million and $8.9 million, $8.1M respectively in FY 2020-21. Note these Projects are heading into construction towards the latter half of FY 2020-21 and portions of these expenditures include this. 53 percent of the FY 2020-21 net CIP outlay will be spent in construction. The four most significant construction projects are the Ocean Outfall System Rehabilitation (Project No. J-117), Westminster Blvd. Force Main Replacement (Project No. 3-62), Return Activated Sludge Piping Replacementat Plant No. 2 (Project No. P2-123), and Newhope-Placentia Trunk Replacement (Project No. 2-72)with projected FY 2020-21 expenditures of $26.1 million, $11.6 million, $6.1 million, and$18.4 million, respectively. Further information onthese Projects can be found in Section 8. Planning3% Design44% Construction53% Projected FY20-21 Net CIP Outlayby Project Status Collection Facilities28% Liquid Treatment:38% Other:11%Solids6% Support Facilities11% Utility Systems6% Projected FY20-21 Net CIP Outlayby Area Rehab. and Replace61% Strategic Initiatives26%Additional Capacity9% Regulatory4% Projected FY20-21 Net CIP Outlayby Project Driver Overview Section 8 - Page 3 Item Rehabilitation and Replacement Strategic Initiatives Additional Capacity Regulatory Total Budget 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 Project Summary FY 2020-21 Section 8 - Page 4 2020-21 & 2021-22 Budget Section 8 - Page 5 Summary of Capital Requirements - FY 2020-21 Item Rehabilitation and Replacement Strategic Initiatives Additional Capacity Regulatory Total Budget 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 Project Summary FY 2021-22 Section 8 - Page 6 2020-21 & 2021-22 Budget Section 8 - Page 7 Summary of Capital Requirements - FY 2021-22 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 Rehab 3-60 Planning 35,132,000 35,132,000 Revised 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 Sewers 3-66 Design 250,000 137,799 35,032 62,102 15,067 Revised 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 2020-21 & 2021-22 Budget Summary of Capital Requirement - Collection System Improvement Projects Project Number Project Phase 7/1/20 Total Project Budget Est. Cost to Date 6/30/20 Proposed 2020-21 Outlay Proposed 2021-22 Outlay Future Outlay Project 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 Expansion P2-122 Const./Impl.32,000,000 8,972,891 5,413,951 8,633,144 8,980,014 Revised 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. at P1 P1-133 Planning 10,100,000 604,011 1,291,277 1,295,242 6,909,470 Revised 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 Sludge P1 P1-129 Const./Impl.10,300,000 4,516,052 5,566,916 217,032 Continuing 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 Summary of Capital Requirements Summary of Capital Requirement - Treatment System Improvement Projects Project Number Project Phase 7/1/20 Total Project Budget Est. Cost to Date 6/30/20 Proposed 2020-21 Outlay Proposed 2021-22 Outlay Future Outlay Project 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 P2-110 Const./Impl.30,000,000 29,069,004 914,715 16,281 Revised Central Generation Rehab at P2 P2-119 Planning 108,000,000 108,000,000 Revised Warehouse, Electrical Substation & 12kV Service Center Repl. at P2 P2-126 Design 65,000,000 31,317 717,257 3,415,000 60,836,426 Revised 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 2020-21 & 2021-22 Budget Summary of Capital Requirement - Treatment System Improvement Projects Project Number Project Phase 7/1/20 Total Project Budget Est. Cost to Date 6/30/20 Proposed 2020-21 Outlay Proposed 2021-22 Outlay Future Outlay Project 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 Summary of Capital Requirements Summary of Capital Requirement - Treatment System Improvement Projects Project Number Project Phase 7/1/20 Total Project Budget Est. Cost to Date 6/30/20 Proposed 2020-21 Outlay Proposed 2021-22 Outlay Future Outlay Project Status 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category NewCollections Facilities Santa Ana Trunk Sewer Rehabilitation - 1-23 Project Status: Budget Projections Section 8 - Page 12 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category NewCollections Facilities Greenville-Sullivan Trunk Improvements - 1-24 Project Status: Budget Projections Section 8 - Page 13 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedCollections Facilities Edinger Pump Station Replacement - 11-33 Project Status: Budget Projections Section 8 - Page 14 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedCollections Facilities Slater Pump Station Rehabilitation - 11-34 Project Status: Budget Projections Section 8 - Page 15 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedCollections Facilities SARI Rock Stabilizers Removal - 2-41-8 Project Status: Budget Projections Section 8 - Page 16 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedCollections Facilities Taft Branch Capacity Improvements - 2-49 Project Status: Budget Projections Section 8 - Page 17 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category ContinuingCollections Facilities Newhope - Placentia Trunk Grade Separation Replacement - 2-65 Project Status: Budget Projections Section 8 - Page 18 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 9,692,816 Total 78,171,924 18,441,383 10,278,948 5,107,745 112,000,000 Reimbursable Costs: 2,180,000 Project Name & Number Project Category ContinuingCollections Facilities Newhope-Placentia Trunk Replacement - 2-72 Project Status: Budget Projections Section 8 - Page 19 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedCollections Facilities Yorba Linda Dosing Station Installation - 2-73 Project Status: Budget Projections Section 8 - Page 20 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedCollections Facilities Beach Relief Trunk/Knott Interceptor/Miller Holder Trunk Rehabilitation - 3-60 Project Status: Budget Projections Section 8 - Page 21 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedCollections Facilities Westminster Blvd Force Main Replacement - 3-62 Project Status: Budget Projections Section 8 - Page 22 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedCollections Facilities Rehabilitation of Western Regional Sewers - 3-64 Project Status: Budget Projections Section 8 - Page 23 CIP Project Detail Sheets Widening of the I-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. 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 I-405 Freeway between State Route 73 and the I-605 Freeway. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedCollections Facilities Interstate 405 Widening Project Impacts on OCSD Sewers - 3-66 Project Status: Budget Projections Section 8 - Page 24 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category ContinuingCollections Facilities Seal Beach Pump Station Replacement - 3-67 Project Status: Budget Projections Section 8 - Page 25 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedCollections Facilities Los Alamitos Sub-Trunk Extension - 3-68 Project Status: Budget Projections Section 8 - Page 26 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedCollections Facilities Crystal Cove Pump Station Rehabilitation - 5-66 Project Status: Budget Projections Section 8 - Page 27 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedCollections Facilities Bay Bridge Pump Station Replacement - 5-67 Project Status: Budget Projections Section 8 - Page 28 2020-21 & 2021-22 Budget 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. 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 Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedCollections Facilities Newport Beach Pump Stations Pressurization Improvements - 5-68 Project Status: Budget Projections Section 8 - Page 29 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedCollections Facilities District 6 Trunk Sewer Relief - 6-17 Project Status: Budget Projections Section 8 - Page 30 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedCollections Facilities MacArthur Pump Station Rehabilitation - 7-63 Project Status: Budget Projections Section 8 - Page 31 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedCollections Facilities Main Street Pump Station Rehabilitation - 7-64 Project Status: Budget Projections Section 8 - Page 32 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedCollections Facilities Gisler-Red Hill Interceptor and Baker Force Mains Rehabilitation - 7-65 Project Status: Budget Projections Section 8 - Page 33 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 30,871 399,617 290,981 721,469 Total 227,600 359,017 2,553,194 1,269,208 290,981 4,700,000 Reimbursable Costs: N/A Project Name & Number Project Category RevisedCollections Facilities Sunflower and Red Hill Interceptor Repairs - 7-66 Project Status: Budget Projections Section 8 - Page 34 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedCollections Facilities MacArthur Force Main Improvements - 7-68 Project Status: Budget Projections Section 8 - Page 35 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category NewCollections Facilities North Trunk Improvements - 7-69 Project Status: Budget Projections Section 8 - Page 36 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category ContinuingOcean Outfall Systems Ocean Outfall System Rehabilitation - J-117 Project Status: Budget Projections Section 8 - Page 37 CIP Project Detail Sheets 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. 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 obsolete human-machine-interface systems, databases and software programs including trending, diagnostic data, monitoring, control, alarming and reporting. This project will also develop programming standards, templates, methodologies, tools, and databases and will develop standards for networking and control panels. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedInformation Management Systems Process Control Systems Upgrades - J-120 Project Status: Budget Projections Section 8 - Page 38 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedUtility Systems Digester Gas Facilities Replacement - J-124 Project Status: Budget Projections Section 8 - Page 39 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedProcess Related Special Projects Safety Improvements Program - J-126 Project Status: Budget Projections Section 8 - Page 40 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedUtility Systems Natural Gas Pipelines Replacement at Plant Nos. 1 and 2 - J-127 Project Status: Budget Projections Section 8 - Page 41 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedInformation Management Systems Project Management Information System - J-128 Project Status: Budget Projections Section 8 - Page 42 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedSupport Facilities Laboratory Rehabilitation at Plant No. 1 - J-133 Project Status: Budget Projections Section 8 - Page 43 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category NewUtility Systems Central Generation Engine Overhauls at Plant No. 1 and 2 - J-135 Project Status: Budget Projections Section 8 - Page 44 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category NewUtility Systems Power Building Structural Seismic Improvements at Plant No. 1 and 2 - J-136 Project Status: Budget Projections Section 8 - Page 45 CIP Project Detail Sheets 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. 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-117B. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category ContinuingWater Management Projects GWRS Final Expansion Coordination - J-36-2 Project Status: Budget Projections Section 8 - Page 46 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedUtility Systems Electrical Power Distribution System Improvements - J-98 Project Status: Budget Projections Section 8 - Page 47 CIP Project Detail Sheets 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. 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 Projects Program budget. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedSupport Facilities Small Construction Projects Program - M-FE Project Status: Budget Projections Section 8 - Page 48 2020-21 & 2021-22 Budget 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. Description This project will provide for the replacement, rehabilitation and/or upgrade of various Information technology assets that meet the criteria and justification for capital expenditure. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 165,293 397,340 397,342 397,340 397,340 403,698 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 Project Name & Number Project Category ContinuingInformation Management Systems Information Technology Capital Program - M-MC-IT Project Status: Budget Projections Section 8 - Page 49 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category ContinuingResearch Research Program - M-RESEARCH Project Status: Budget Projections Section 8 - Page 50 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 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 Project Name & Number Project Category ContinuingSupport Facilities Operations & Maintenance Capital Program - M-SM-CAP Project Status: Budget Projections Section 8 - Page 51 CIP Project Detail Sheets Description 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. 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 Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 1,831,788 1,024,905 568,426 544,808 553,525 2,841,716 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 Project Name & Number Project Category ContinuingStrategic & Master Planning Planning Studies Program - M-STUDIES Project Status: Budget Projections Section 8 - Page 52 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedSolids Handling & Digestion Sludge Dewatering and Odor Control at Plant No. 1 - P1-101 Project Status: Budget Projections Section 8 - Page 53 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category ContinuingHeadworks Headworks Rehabilitation at Plant No. 1 - P1-105 Project Status: Budget Projections Section 8 - Page 54 2020-21 & 2021-22 Budget 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. 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, Building 8 and Paving Area, Contract No. P1-115B. This project is approaching close-out. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category ContinuingSupport Facilities Title 24 Access Compliance and Building Rehabilitation Project - P1-115 Project Status: Budget Projections Section 8 - Page 55 CIP Project Detail Sheets 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. Description This project will replace Primary Sedimentation Basins (PSB) 3-5 and all associated facilities including distribution boxes, junction boxes, primary influent and effluent lines, structural, mechanical, and electrical systems. PSB 3-5 will be raised to allow gravity flow to secondary 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 interruptible switches, 480-volt switchgear, and motor control centers. Replace Eastside Basins Distribution Box and rehabilitate the 10, 16, and 24-inch force mains between Waste Sidestream Pump Station 1 and Eastside Basins Distribution Box. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedPrimary Treatment Primary Sedimentation Basins No. 3-5 Replacement at Plant No. 1 - P1-126 Project Status: Budget Projections Section 8 - Page 56 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedUtility Systems Central Generation Rehabilitation at Plant No. 1 - P1-127 Project Status: Budget Projections Section 8 - Page 57 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category ContinuingSupport Facilities Headquarters Complex - P1-128 Project Status: Budget Projections Section 8 - Page 58 2020-21 & 2021-22 Budget 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. Description This project involves replacement of an existing deteriorated 30-inch steel discharge header piping, 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category ContinuingSecondary Treatment Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1 - P1-129 Project Status: Budget Projections Section 8 - Page 59 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category ContinuingUtility Systems Uninterruptible Power Supply Improvements at Plant No. 1 - P1-132 Project Status: Budget Projections Section 8 - Page 60 2020-21 & 2021-22 Budget 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. Description This project will increase the reliability of the rectangular primary clarifiers at Plant No. 1 by replacing three primary sludge pumps, replacing the failing launders in the Primary Influent Splitter Box, and installing a sump pump to remove water accumulation in a below-grade foul air pipe. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedPrimary Treatment Primary Sedimentation Basins No. 6-31 Reliability Improvements at Plant No. 1 - P1-133 Project Status: Budget Projections Section 8 - Page 61 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 1,051,738 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 Project Name & Number Project Category RevisedSupport Facilities South Perimeter Security and Utility Improvements at Plant No.1 - P1-134 Project Status: Budget Projections Section 8 - Page 62 2020-21 & 2021-22 Budget 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. Description This project will replace the digester ferric chloride piping, valves and appurtenances from the ferric chloride facility to each of the digesters. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 15,140 16,115 308,855 Total 115,689 170,893 1,021,560 35,743 16,115 1,360,000 Reimbursable Costs: N/A Project Name & Number Project Category ContinuingSolids Handling & Digestion Digester Ferric Chloride Piping Replacement at Plant No. 1 - P1-135 Project Status: Budget Projections Section 8 - Page 63 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 14,800,000 14,800,000 Reimbursable Costs: N/A Project Name & Number Project Category NewUtility Systems 12.47 kVSwitchgear Replacement at Central Generation at Plant No. 1 - P1-136 Project Status: Budget Projections Section 8 - Page 64 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category NewSupport Facilities Support Buildings Seismic Improvements at Plant No. 1 - P1-137 Project Status: Budget Projections Section 8 - Page 65 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category NewUtility Systems Network and Server Relocation at Plant No. 1 - P1-138 Project Status: Budget Projections Section 8 - Page 66 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedUtility Systems Consolidated Demolition and Utility Improvements at Plant 2 - P2-110 Project Status: Budget Projections Section 8 - Page 67 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedUtility Systems Central Generation Rehabilitation at Plant No. 2 - P2-119 Project Status: Budget Projections Section 8 - Page 68 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedHeadworks Headworks Modification at Plant No. 2 for GWRS Final Expansion - P2-122 Project Status: Budget Projections Section 8 - Page 69 CIP Project Detail Sheets 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. Description This project includes replacement of 1,800 feet of corroded return activated sludge piping at the 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedSecondary Treatment Return Activated Sludge Piping Replacement at Plant No. 2 - P2-123 Project Status: Budget Projections Section 8 - Page 70 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project Budget Proj Dev 111,148 111,148 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 Project Name & Number Project Category ContinuingSolids Handling & Digestion Interim Food Waste Receiving Facility - P2-124 Project Status: Budget Projections Section 8 - Page 71 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 12,181,382 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 Project Name & Number Project Category RevisedUtility Systems Warehouse, Electrical Substation and 12kV Service Center Replacement at Plant No. 2 - P2-126 Project Status: Budget Projections Section 8 - Page 72 2020-21 & 2021-22 Budget 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. Description This project will replace the existing Collections Facilities yard and fencing in a new location, yet to be determined. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category FutureSupport Facilities Collections Yard Relocation - P2-127 Project Status: Budget Projections Section 8 - Page 73 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedSolids Handling & Digestion TPAD Digester Facility at Plant No. 2 - P2-128 Project Status: Budget Projections Section 8 - Page 74 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category FutureSolids Handling & Digestion Digester P, Q, R, and S Replacement - P2-129 Project Status: Budget Projections Section 8 - Page 75 CIP Project Detail Sheets 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. Description This project will rehabilitate B & C sides of primary basins at Plant No. 2. The work will rehabilitate 10 primary basins with new flat covers; rehabilitate sludge/scum pump stations; replace all mechanical and electrical systems; rehabilitate structural and yard piping; replace North Scrubber Complex; relocate electrical and controls to Distribution Center F; and miscellaneous upgrades. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedPrimary Treatment B/C-Side Primary Sedimentation Basins Rehabilitation at Plant 2 - P2-133 Project Status: Budget Projections Section 8 - Page 76 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category NewOcean Outfall Systems Sodium Bisulfite Station Rehabilitation at Plant No. 2 - P2-135 Project Status: Budget Projections Section 8 - Page 77 CIP Project Detail Sheets 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. Description This project includes structural rehabilitation of the aeration basin's reactor deck, coating the 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category NewSecondary Treatment Activated Sludge Aeration Basin Rehabilitation at Plant No. 2 - P2-136 Project Status: Budget Projections Section 8 - Page 78 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category NewSolids Handling & Digestion Digesters Rehabilitation at Plant No. 2 - P2-137 Project Status: Budget Projections Section 8 - Page 79 CIP Project Detail Sheets 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category NewSupport Facilities Operations and Maintenance Complex at Plant No. 2 - P2-138 Project Status: Budget Projections Section 8 - Page 80 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category ContinuingSolids Handling & Digestion Sludge Dewatering and Odor Control at Plant No. 2 - P2-92 Project Status: Budget Projections Section 8 - Page 81 CIP Project Detail Sheets 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. Description 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. The project will also construct a new air scrubbing complex. The project includes a second 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 the future B/C-Side Primary Sedimentation Basins Rehabilitation at Plant No. 2, Project No. P2-133. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedPrimary Treatment Primary Treatment Rehabiliation at Plant No. 2 - P2-98 Project Status: Budget Projections Section 8 - Page 82 2020-21 & 2021-22 Budget 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. 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category ContinuingInformation Management Systems EAM Software and Process Implementation - SP-100 Project Status: Budget Projections Section 8 - Page 83 CIP Project Detail Sheets 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. 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 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 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedInformation Management Systems Geographic Information System - SP-15 Project Status: Budget Projections Section 8 - Page 84 2020-21 & 2021-22 Budget 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 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. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedOthers Capital Improvement Program Management Services - SP-195 Project Status: Budget Projections Section 8 - Page 85 CIP Project Detail Sheets 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 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 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, 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 enhances trending, diagnostic data, monitoring, control, automation and management information. This study will evaluate the latest technology offerings; define system reliability, redundancy, and performance; evaluate enterprise wide process data integration needs; define requirements for current and future SCADA and ICS security requirements; and define requirements for upgrading HMI and PLC hardware and software standards. Justification Budget Phase Cost To- Date 2020-2021 2021-22 2022-23 2023-24 2024-25 Thereafter Total Project 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 Project Name & Number Project Category RevisedInformation Management Systems Process Control Systems Upgrades Study - SP-196 Project Status: Budget Projections Section 8 - Page 86 2020-21 & 2021-22 Budget 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 2-41-8 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 Summary by Project Status Collection System Improvement Projects - Budget by Project Status Project Number Total Budget New Project Continuing Project Revised Project Future ProjectTitle 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 2020-21 & 2021-22 Budget Treatment & Disposal Projects - Budget by Project Status Project Number Total Budget New Project Continuing Project Revised Project Future ProjectTitle 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 Summary by Project Status Treatment & Disposal Projects - Budget by Project Status Project Number Total Budget New Project Continuing Project Revised Project Future ProjectTitle 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 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 Section 8 - Page 90 2020-21 & 2021-22 Budget Treatment & Disposal Projects - Budget by Project Status Project Number Total Budget New Project Continuing Project Revised Project Future ProjectTitle Project Name Total Percentage Allocation Total Project Cost Budget Project Budget Rehab/ Repl Strategic Initiative Additional Capacity Regulatory Rehab./ Replacement Strategic Initiative Additional Capacity Regulatory 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 Trunk Rehab 35,132,000 100%35,132,000 --- 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 Sewers 250,000 100%---250,000 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 47,614,000 169,956,000 9,410,000 Section 8 - Page 91 Summary of Revenue Program Category Collection System Improvement Projects Project Name Total Percentage Allocation Total Project Cost Budget Project Budget Rehab/ Rep Strategic Initiative Additional Capacity Regulatory Rehab./ Replacement Strategic Initiative Additional Capacity Regulatory Headworks Rehab at P1 406,000,000 100%406,000,000 --- Headworks Modification at P2 for GWRS Final Expansion 32,000,000 100%-32,000,000 -- 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 -4,700,000 Ocean Outfall System Rehab 166,000,000 25%75%41,500,000 124,500,000 -- Sodium Bisulfite 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. at P1 10,100,000 50%50%5,050,000 5,050,000 -- 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 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 Sludge P1 10,300,000 100%10,300,000 --- 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 2020-21 & 2021-22 Budget Treatment & Disposal Improvement Projects Project Name Total Percentage Allocation Total Project Cost Budget Project Budget Rehab/ Rep Strategic Initiative Additional Capacity Regulatory Rehab./ Replacement Strategic Initiative Additional Capacity Regulatory 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 Center Repl. at P2 65,000,000 25%75%16,250,000 48,750,000 -- 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 Summary of Revenue Program Category Treatment & Disposal Improvement Projects Project Name Total Percentage Allocation Total Project Cost Budget Project Budget Rehab/ Rep Strategic Initiative Additional Capacity Regulatory Rehab./ Replacement Strategic Initiative Additional Capacity Regulatory 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 $64,438,700 Section 8 - Page 94 2020-21 & 2021-22 Budget Treatment & Disposal Improvement Projects Summary of Revenue Program Category Section 8 – Page 95 This page was intentionally left blank 2020-21 & 2021-22 Budget Section 8 - Page 96 Proposed Capital Equipment Budget 2020-21 Department Trucks & Vehicles 09410000 Other Mobile Eq 09410001 Machine Eq & Tools 09410002 Comm Equipment 09410003 Public Affairs -$ -$ -$ -$ 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$ -$ Proposed Capital Equipment Budget Summary Section 8 – Page 97 Proposed Capital Equipment Budget 2020-21 Department Instr / Test Equipment 09410004 Safety & Traffic Eq 09410005 Office Fix & Eq 09410006 Computer Equipment 09410007 2020-21 Proposed 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$ 2020-21 & 2021-22 Budget Section 8 - Page 98 Proposed Capital Equipment Budget Detail Division Equipment Type Proposed Capital Equip. Budget Digital Messaging System 70,000$ Total 70,000 myCority 27,000 Total 27,000 DJI Phantom 4 RTK 15,000 Total 15,000 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 PLC Test Units 21,600 Total 21,600 Sewer Inspection Camera 14,100 Manhole CCTV Inspection Equipment 148,000 Methane Analyzer 2020 15,400 Total 177,500 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 3,168,000 140 - Public Affairs 822 - Fleet Services 630 - Laboratory, Monitoring, and Compliance 250 - Information Technology 760 - Design 820 - Collection Facilities O&M 161 - Risk Management/Safety/Security Proposed Capital Equipment Budget Detail Section 8 – Page 99 Proposed Capital Equipment Budget Detail 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 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$ 880 - Plant No. 2 Maintenance 870 - Plant No. 1 Maintenance 2020-21 & 2021-22 Budget Section 8 - Page 100 Proposed Capital Equipment Budget 2021-22 Department Trucks & Vehicles 09410000 Other Mobile Eq 09410001 Machine Eq & Tools 09410002 Comm Equipment 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$ -$ Proposed Capital Equipment Budget Summary Section 8 – Page 101 Proposed Capital Equipment Budget 2021-22 Department Instr / Test Equipment 09410004 Safety & Traffic Eq 09410005 Office Fix & Eq 09410006 Computer Equipment 09410007 2019-20 Proposed 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$ 2020-21 & 2021-22 Budget Section 8 - Page 102 Proposed Capital Equipment Budget Detail Division Equipment Type Proposed Capital Equip. Budget 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 PLC Test Units 21,600 Total 21,600 FLIR GF77a - Optical Gas Imaging Camera 48,500 Providence Photonics QL320 25,000 Total 73,500 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 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$ 870 - Plant No. 1 Maintenance 630 - Laboratory, Monitoring, and Compliance 760 - Design 822 - Fleet Services 820 - Collection Facilities O&M Debt Financing Program Section 9 – Page 1 CERTIFICATES OF PARTICIPATION DEBT FINANCING PROGRAM A Ten-Year Financial Plan is maintained to establish financing parameters regarding the issuance of debt, the levying of user charges and the funding level for required reserves in accordance with the Sanitation District’s reserve policy. The Financial Plan is revised annually to reflect the most current cost and revenue figures resulting from capital program revisions and operating changes. In December 2017, the 2017 Facilities Master Plan was adopted by the Board of Directors. The Master Plan identified a phased 20-year program of capital improvement projects that will allow the Sanitation District to maintain reliability and accommodate future growth, as well as meet future regulatory requirements, level of service goals, and strategic initiatives. Each project in the master plan was initiated to address the impact of one or more of the main drivers (existing facilities condition, changes in regulations, facilities capacity, redundancy criteria, Sanitation District initiatives, and health and safety). Most of the CIP needs for the next 20 years are due to the condition of existing aging facilities requiring rehabilitation and replacement. 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 FixedFinal Maturity Date 02-01-2030 08-15-2021 2020-21 & 2021-22 Budget Section 9 – Page 2 In conjunction with preparation for the 2020-21 Budget, Sanitation District staff has developed and reviewed with the Board of Directors a capital program to deliver the levels of service included in the Sanitation District’s 5-year Strategic Plan. Sanitation District staff has also validated the active CIP projects currently being executed to ensure that the active project scopes of work and cost estimates were accurate. The validated CIP includes 75 active and future capital projects, five programs, and capital equipment purchases, with a 10-year expenditure of $2.7 billion. The Sanitation District embarked upon its Debt Financing and Management Program, and specifically its Variable and Fixed Rate Debt Program (the "Program"), in 1990 with the issuance of $100 million in Certificates of Participation ("COP"), Capital Improvement Program, 1990 Series "A." The Program was established to: Finance assets with long useful lives with long-term debt; Achieve the lowest possible interest costs andhighest investment returns, commensurate withthe appropriate risk; Recoup reserve moneys that had previouslybeen spent. COPs are repayment obligations based on a lease or installment sale agreement. The COP structure was selected over other structures because COPs are not viewed as debt by the State of California, as the purchaser does not actually receive a "bond," but rather a share in an installment sale arrangement where the Sanitation District serves as the purchaser. Accordingly, the Sanitation District is not subject to the usual State restrictions surrounding the issuance of debt. COPs can be issued with fixed or variable interest rates. As of July 1, 2020, the total outstanding COP indebtedness is $940.1 million. Dedicated Funding Source In 1992 and 2004 the Board of Directors formalized the dedication of certain funding sources. To assure the continuation of favorable credit ratings, revenues were dedicated to debt service in the following order: 1.Ad valorem property taxes 2.Sanitary sewer service charges3.Other revenues This apportionment of the ad valorem tax was consistent with and pursuant to the Revenue Program adopted in April 1979 to comply with regulations of the Environmental Protection Agency and the State Water Resources Control Board and in accordance with COP documents and Board policy. Establishment of Debt Policy In 2001, the Sanitation District developed a written debt policy for the following underlying reasons: committing to long-term financial planning; promoting credit quality to rating agencies; rationalizing the decision making process; enhancing the quality of decisions; and promoting consistency and continuity. This Board adopted policy serves as the agency’s guide in the management of existing debt and in the issuance of future debt. Debt Coverage Ratios The only legal debt limits pertaining to the Sanitation District are those that are provided within the existing COP indenture agreements requiring minimum coverage ratios of 1.25. The minimum coverage ratio is the ratio of net annual revenues available for debt service requirements to total annual debt service requirements for all senior lien COP debt. The coverage ratio for senior lien COP debt is proposed at 4.07 and 4.54 for FY 2020-21 and FY 2021-22, respectively. Debt Financing Program Section 9 – Page 3 Build America Bonds Financings The Sanitation District issued the $80.0 million Wastewater Revenue Obligation, Series 2010A in May 2010 and the $157.0 million Wastewater Revenue Obligations, Series 2010C in November 2010 as “Build America Bonds” (BABs) fixed rate debt. The American Recovery and Reinvestment Act of 2009 created a new financing product, BABs, for the municipal issuer. BABs are issued as higher interest taxable bonds; however, the U.S. Treasury provides a 35 percent subsidy on interest payments. The net cost, after accounting for the 35 percent subsidy payment, frequently results in lower net costs to the issuer, specifically in the maturity years beyond ten years. On March 1, 2013, the federal government implemented certain automatic spending cuts known as the sequester. As a result of the sequester, federal subsidy payments on BABs have been reduced annually from a high of 8.7 percent for the federal fiscal year ended September 30, 2013 to a low of 5.9 percent for the federal fiscal year ended September 30, 2020. Future Financings As a result of having a prudent reserve policy, experienced management, and prudent planning, the Sanitation District has been able to secure “AAA” credit ratings from Fitch Ratings and Moody’s. The Sanitation District’s long-range financing plan is designed to maintain these high ratings. Over the next 10 years, the Sanitation District is projecting an additional $2.7 billion in future treatment plant and collection system capital replacement, refurbishment, and rehabilitation improvements. In accordance with the Sanitation District’s long-term debt fiscal policy, the Sanitation District will confine long-term borrowing to capital improvements that cannot be financed from current revenue. Before any new debt is issued, the impact of debt service payments on total annual fixed costs will be analyzed. The Sanitation District’s cash flow forecast does not require any new money debt issuances over the next ten years as all capital improvements planned over this time period primarily consist of replacement, refurbishment, and rehabilitation of existing projects which are to be funded through existing reserves and current sewer charges. $0mil $50mil $100mil $150mil $200mil $250mil $300mil 20 2 0 20 2 1 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 20 3 0 20 3 1 20 3 2 20 3 3 20 3 4 20 3 5 20 3 6 20 3 7 20 3 8 20 3 9 20 4 0 20 4 1 20 4 2 20 4 3 20 4 4 Aggregate Debt Service Structures  Existing Fixed Rate 2020-21 & 2021-22 Budget Section 9 – Page 4 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 $230.2 Debt Financing Program Section 9 – Page 5 This page was intentionally left blank. 2020-21 & 2021-22 Budget Section 9 – Page 6 Total Certificates of Participation / Revenue Obligations and Notes Debt Service Requirements Principal and Interest Combined Fiscal 2010A 2010C 2011A 2012A 2012B 2014A Year Build America Build America Refunding Refunding Refunding Refunding Of Bonds Bonds (Partial 2000 (Remain (2000-A (Partial Payments Acq./Const. Acq./Const. & 2003) 2003) & 2000-B) 2007B) 2020-21 2,897,639 6,523,780 3,348,350 3,735,900 18,535,650 11,046,500 2021-22 2,897,639 6,523,780 17,143,350 75,390,900 1,776,150 11,049,000 2022-23 2,897,639 6,523,780 17,093,600 869,700 1,821,150 11,046,750 2023-24 2,897,639 6,523,780 17,136,200 869,700 1,781,950 11,044,000 2024-25 2,897,639 6,523,780 17,088,450 869,700 1,818,050 11,049,750 2025-26 2,897,639 6,523,780 17,141,250 869,700 1,771,600 11,052,500 2026-27 2,897,639 6,523,780 - 869,700 - 11,051,250 2027-28 2,897,639 6,523,780 - 869,700 - - 2028-29 2,897,639 6,523,780 - 869,700 - - 2029-30 2,897,639 6,523,780 - 869,700 - - 2030-31 2,897,639 12,258,780 - 29,859,700 - - 2031-32 2,897,639 23,382,068 - - - - 2032-33 2,897,639 23,476,472 - - - - 2033-34 12,487,639 13,967,040 - - - - 2034-35 12,696,056 13,897,232 - - - - 2035-36 12,919,416 13,834,528 - - - - 2036-37 13,151,453 13,758,096 - - - - 2037-38 13,399,607 13,667,936 - - - - 2038-39 13,658,823 13,574,048 - - - - 2039-40 13,937,832 13,481,016 - - - - 2040-41 - 22,698,216 - - - - 2041-42 - 13,457,728 - - - - 2042-43 - 10,305,640 - - - - 2043-44 - 2,583,168 - - - - Totals 129,920,132$ 269,579,770$ 88,951,200$ 115,944,100$ 27,504,550$ 77,339,750$ Debt Financing Program Section 9 – Page 7 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 2007B) 2009A)2007A) (2016B) 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 2039-40 - - - - 27,418,848 2040-41 - - - - 22,698,216 2041-42 - - - - 13,457,728 2042-43 - - - - 10,305,640 2043-44 - - - - 2,583,168 Totals 209,837,250$ 216,626,100$ 94,626,000$ 109,865,000$ 1,340,193,852$ 2020-21 & 2021-22 Budget Section 9 – Page 8 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 (Partial 2000 (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$ Debt Financing Program Section 9 – Page 9 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 2007B) 2009A) 2007A) (2016B) 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 2041-42 - - - - 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$ 2020-21 & 2021-22 Budget Section 9 – Page 10 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 (Partial 2000 (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$ Debt Financing Program Section 9 – Page 11 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 2007B) 2009A) 2007A) (2016B) 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 2039-40 - - -- 24,575,000 2040-41 - - -- 20,805,000 2041-42 - - -- 12,430,000 2042-43 - - -- 9,795,000 2043-44 - - -- 2,480,000 Totals 127,510,000$ 141,465,000$ 66,370,000$ 102,200,000$ 940,050,000$ 2020-21 & 2021-22 Budget Section 9 – Page 12 This page was intentionally left blank. Staffing Allocation Section 10 - Page 1 General Manager's Office18FTEHuman Resources26FTE Administrative Sevices101FTE Environmental Services93FTEEngineering117FTE Operations & Maintenance284FTE Staffing by DepartmentTotal 639 FTE Administrative8.1% Division Management2.2% Engineering3.6% Executive Management1.1% Operations & Maintenance33.3% Part Time0.2% Professional36.5% Supervisory10.5% Technical Services4.5% Staffing by Category 2020-21 & 2021-22 Budget Section 10 – Page 2 0 50 100 150 200 250 300 2017-18 2018-19 2019-20 2020-21 2021-22 FT E Fiscal Year Historical Staffing By Department General Manager's Office Human Resources Administrative Services Environmental Services Engineering Operations & Maintenance 635.00 636.00 640.00 639.00 639.00 610 620 630 640 650 2017-18 2018-19 2019-20 2020-21 2021-22 FT E Fiscal Year Total Historical Staffing Staffing Allocation Section 10 - Page 3 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 2020-21 & 2021-22 Budget Section 10 – Page 4 Authorized Authorized Authorized Proposed Proposed FTEs FTEs FTEs FTEs FTEsDivision & Position 2017-18 2018-19 2019-20 2020-21 2021-22 General Manager's Office110General 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 AffairsAdministrative 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/SecuritySafety & 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 Historical Staffing Detail Section 10 - Page 5 Authorized Authorized Authorized Proposed Proposed FTEs FTEs FTEs FTEs FTEs Division & Position 2017-18 2018-19 2019-20 2020-21 2021-22Administrative Services Department210Administrative Services Administration Director of Finance & Administrative Services / Trea 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 ManagementController 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 Manag 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 I 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 I 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 2020-21 & 2021-22 Budget Section 10 – Page 6 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 I 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 1.00 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 Historical Staffing Detail Section 10 - Page 7 Authorized Authorized Authorized Proposed Proposed FTEs FTEs FTEs FTEs FTEsDivision & 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 DesignEngineering 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 - - 2020-21 & 2021-22 Budget Section 10 – Page 8 Authorized Authorized Authorized Proposed Proposed FTEs FTEs FTEs FTEs FTEs 2017-18 2018-19 2019-20 2020-21 2021-22Information 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 I 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 II 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 II 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 Department810Operations 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 Administration 3.00 3.00 2.00 3.00 3.00 820 Collection Facilities Operations and MaintenanceEngineering 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 Mainten 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 - - Total Fleet Services 8.00 8.00 8.00 8.00 8.00 Historical Staffing Detail Section 10 - Page 9 Authorized Authorized Authorized Proposed Proposed FTEs FTEs FTEs FTEs FTEs Division & Position 2017-18 2018-19 2019-20 2020-21 2021-22830Plant 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 2020-21 & 2021-22 Budget Section 10 – Page 10 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 I 1.00 1.00 2.00 2.00 2.00 Instrumentation Technician I 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 - - - Historical Staffing Detail Section 10 - Page 11 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 I 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 2020-21 & 2021-22 Budget Section 10 - Page 12 This page was intentionally left blank Appropriations Limit Section 10 -Page 13 Appropriations Limit Article XIIIB of the California State Constitution, more commonly referred to as the Gann Initiative or Gann Limit, was adopted by California voters in 1980. The Gann Limit placed limits on the amount of proceeds of taxes that state and local governmental agencies can receive and appropriate (authorize to spend) each year. The limit is different for each agency and the limit changes each year. The annual limit is based on the amount of tax proceeds that were authorized to be spent in fiscal year 1978-79 in each agency, modified for changes in inflation and population in each subsequent year. Proposition 111 was passed by the State’s voters in June 1990. This legislation made changes to the manner in which the Appropriations Limit is to be calculated: The annual adjustment factors for inflation and population have been changed. Instead of using the lesser of California per capita income, or U.S. CPI, each agency may choose either the growth in the California per capita income, or the growth in assessed valuation due to new non-residential construction within OCSD. For population, instead of using only the population growth of an agency, each agency may choose to use the population growth within its county. These are both annual elections. The revised annual adjustment factors will be applied to the 1986-87 limit for most agencies and each year in between in order to calculate the 1990-91 limit. The actual limits for the intervening years, however, are not affected. Expenditures for “qualified capital outlay”, which are capital assets with a value of more than $100,000 and an expected life of 10 years or more, are excluded from the 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 a successful override vote. In certain situations, proceeds of taxes may be spent on emergencies without having to reduce the limit in future years. Each agency also conducts a review of its Appropriations Limit during its annual financial audit. The law requires a governing body to annually adopt, by resolution, an appropriations limit for the following year, along with a recorded vote regarding which of the annual adjustment factors have been selected. The Orange County Sanitation District’s appropriations limit and annual adjustment factors are adopted at the same meeting as the budget. The adjustment factors used for 2020-21 are the weighted average change in city population and the change in state per capita personal income. The following table shows the annual appropriations limit for each of the last two years and for 2020-21. The increase in the limit is based upon population changes ranging from negative 0.77 percent to positive 0.20 percent for major cities within the Sanitation District as provided by the State Department of Finance and a per capita personal income change of 3.73 percent as provided by the State Department of Finance. Annual Appropriation Limits: 2018-19 $110,229,598 2019-20 $114,427,648 2020-21 $118,695,799 As a result of the July 1998 consolidation of the Sanitation District, a single limit is presented in contrast to individual limits shown in years prior to 1998. Population changes for representative cities have continued to be used in order to ensure consistency and to eliminate significant population growth in parts of the County outside of the Sanitation District’s service area. This method results in a lower limit than using the County-wide change. 2020-21 & 2021-22 Budget Section 10 – Page 14 Budget Glossary Accounting System: The set of records and procedures which are used to record, classify, and report information on the financial status and operations of an entity. Accrual Basis Accounting: Under this accounting method, transactions are recognized when they occur, regardless of the timing of related cash receipts and disbursements. Administrative and Clerical: An employee group that provides administrative and clerical support. Ad Valorem Taxes: OCSD's allocated share of the property taxes assessed by the County representing a 2% annual increase in assessed values of property taxes. Annual Budget: A budget applicable to a single fiscal year. Appropriation Ordinance: The official legal document approved by OCSD’s Board of Directors authorizing officials to obligate and expend resources. Appropriation: An authorization made by OCSD’s Board of Directors which permits officials to incur obligations against and to make expenditures of governmental resources. Operating appropriations are typically granted for a one-year period. AQMD: Air Quality Management District. See also SCAQMD. Assessed Valuation: The estimated value of real and personal property used by the Orange County Assessor as the basis for levying property taxes. Balanced Budget: A budget in which the sum of estimated net revenues and appropriated fund balances is equal to appropriations. Biennial Budget: A budget applicable to two individual fiscal years. Biosolids: Treated sewage sludge that meets the USEPA pollutant and pathogen requirements for land application as an agricultural soil conditioner or surface disposal. BLAST: A District program that stands for Building Leaders, Abilities and Skills for Tomorrow. The BLAST program is an employee designed leadership development program that aims to provide training and opportunities for staff at levels of the organization to develop themselves as leaders Budget Document: The official financial spending and resource plan submitted by the General Manager, adopted by the Board of Directors, and made available to the public and other interested parties. Budget Message: A written explanation by the General Manager of the proposed budget. The budget message explains principal budget and policy issues and presents an overview of the General Manager’s budget recommendations. Budget Calendar: The schedule of key dates which OCSD follows in preparing and adopting the budget. Capital Facilities Capacity Charge: A one-time, nondiscriminatory charge imposed at the time a building or structure is newly connected to OCSD’s system, directly or indirectly, or an existing structure or category of use is expanded or increased. This charge is to pay for OCSD facilities in existence at the time the charge is imposed, or to pay for new facilities to be constructed in the future, that are of benefit to the property being charged. This charge does not apply to temporary facilities. Capital Improvement Program: A plan over a period of five years setting forth each capital project, the amount to be expended in each year, and the method of financing capital expenditures. Capital Outlay: Cash outlays which result in the acquisition of or additions to capital assets. Examples include land, buildings, machinery, equipment, and other improvements. Budget Glossary ___________________________________________________________________________ Section 10 – Page 15 Capital Assets: Assets of significant value which have a useful life of several years. Examples are land, buildings, other improvements, machinery, and equipment. Cash Basis Accounting: A basis of accounting under which transactions are recognized only when cash is received or disbursed. CCTV: Closed-circuit television (CCTV), also known as video surveillance, is technology often used by the OCSD to inspect and document the condition of underground sewer lines. CEQA: California Environmental Quality Act, is a statute that requires state and local agencies to identify the significant environmental impacts of their actions and to avoid or mitigate those impacts, if feasible. Certificates of Participation (COPs): A type of debt financing in which certificates are issued which represent an investor’s participation in the stream of lease payments paid by the issuer. COPs are secured by the lease payments. Voter approval is not required prior to issuance. Comprehensive Annual Financial Report (CAFR): The official financial report of a government. It includes an audit opinion as well as basic financial statements and supporting schedules necessary to demonstrate compliance with legal and contractual requirements of OCSD. Contingency: A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Contingent Liabilities: Items which may become liabilities of OCSD but are undetermined at a given date, such as pending law suits, unsettled disputed claims, unfilled purchase orders, and uncompleted contracts. Contractual Services: Personal services provided to OCSD from the private sector or other public agencies. CRWQCB: California Regional Water Quality Control Board. Debt Service: Payment of interest and repayment of principal to holders of the OCSD’s debt instruments. Decision Package: A standardized format whereby departments may request budgetary consideration for new programs, positions, capital equipment, and position reclassification. Deficit: The excess of an entity’s liabilities over its assets. Engineers: A professional engineers/employee group. Enterprise Fund: In governmental accounting, a fund that provides goods or services to the public for a fee that makes the entity self-supporting. Executive Manager: The group of employees which head each department. Expenditures / Expenses: Where accounts are kept on the accrual basis of accounting, expenses are recognized when goods are received or services rendered. Where accounts are kept on a cash basis, expenditures are recognized only when the cash payments are made. FEMA: Federal Emergency Management Agency. This agency provides federal grant monies for disaster relief. Fiscal Year: A 12-month period to which the annual operating budget applies and at the end of which a government determines its financial position and results of its operations. OCSD’s fiscal year runs from July 1 - June 30. Five-Year Financial Forecast: Estimates of future revenues and expenditures to help predict the future financial condition of the community. FLSA: The Fair Labor Standards Act sets minimum wage, overtime pay, equal pay, and Child Labor Standards to private and public sector employees. Enforcement of the FLSA is assigned to the Department of Labor (DOL), Wage and Hour Division. 2020-21 & 2021-22 Budget Section 10 – Page 16 Fats, Oils, & Grease (FOG) Control Program: Educational and regulatory efforts designed to achieve reductions in the quantity of fats, oils and grease that is found in the wastewater that is discharged into the District’s sewerage system. Full-Time Equivalents (FTE): The amount of time a regular, full-time employee normally works in a year. For example, a full-time employee (1 FTE) is budgeted to work 2,080 hours per year, while a .5 FTE is budgeted to work 1,040 hours per year. Fund: An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities. Fund Accounting: System used by nonprofit organizations, particularly governments. Since there is no profit motive, accountability is measured instead of profitability. The main purpose is stewardship of financial resources received and expended in compliance with legal requirements. Fund Equity: The excess of an entity’s assets over liabilities. General Obligation Bonds: Bonds for which the full faith and credit of the insuring government are pledged for payment. Ad valorem property taxes are pledged to pay the bonds. A two-thirds voter approval is required prior to bond issuance. Generally Accepted Accounting Principles (GAAP): Uniform standards for financial accounting and reporting. They govern the form and content of the basic financial statements of an entity. Government Finance Officers Association (GFOA): A nonprofit, professional association, serving over 18,000 government finance professionals through the United States and Canada. GFOA’s Best Practices and Advisories: A listing of the Accounting, Auditing, and Financial Reporting, Treasury and Investment Management, Budgeting and Fiscal Policy, Debt Management, Retirement and Benefits Administration, and Economic Development and Capital Planning practices identified as contributing to improved government management by the Government Finance Officers Association of the United States and Canada. GFOA’s Distinguished Budget Presentation Award Program: The only national awards program in governmental budgeting. It represents a significant accomplishment in meeting the highest principles of governmental budgeting and satisfying nationally recognized guidelines for effective budget presentation. Groundwater Replenishment System (GWRS): A joint project by the Orange County Water District (OCWD) and OCSD, the GWRS reclaims up to 100 million gallons a day of the District’s secondary effluent. GWRS is the world's largest water purification system for indirect potable reuse. The system takes highly treated wastewater that would have previously been discharged into the Pacific Ocean and purifies it using a three-step advanced treatment process consisting of microfiltration, reverse osmosis and ultraviolet light with hydrogen peroxide. The process produces high-quality water that meets or exceeds all state and federal drinking water standards. Improvements: Buildings, structures, or attachments to land such as sidewalks, trees, drives, tunnels, drains and sewers. Interest: Revenue derived from the investment of idle cash and/or reserves. Intergovernmental Services: Purchases from other governments of those specialized services typically performed by local governments. Intergovernmental Revenue: Revenue received from other governmental agencies and municipalities. IRWD: Irvine Ranch Water District is a California Special District formed in 1961 and incorporated under the California water code. IRWD provides potable water, sewer service and reclaimed (or recycled) water to its customers in Irvine and portions of Costa Mesa, Lake Forest, Newport Beach, Orange, Tustin and unincorporated areas of Orange County. Budget Glossary ___________________________________________________________________________ Section 10 – Page 17 Levy: (Verb) To impose taxes, special assessments, or service charges for the support of governmental activities. (Noun) The total amount of taxes, special assessments, or service charges imposed by a government levying property taxes. Long-Term Debt or Long-Term Liabilities: Debt borrowed from a source outside OCSD with a maturity of more than one year after the date of issuance. Maintenance Employees: An employee group of OCSD. Manager Employees: The group of employees who assume management responsibilities for operating divisions. MGD: Million Gallons per Day is a measurement of water or wastewater flow. NPDES (National Pollution Discharge Elimination System): Permit system established by the U.S. Environmental Protection Agency to regulate discharge of treated sewage, storm water, and urban runoff. Object: An expenditure classification which refers to the type of item purchased or the service obtained. Examples include personnel, supplies, or contract services. OCWD: The Orange County Water District (OCWD) is a California special district that manages the groundwater basin beneath central and northern Orange County, California. OES: State Office of Emergency Services. This agency provides state grant monies for disaster relief. Operating Engineers: An employee group of OCSD. Operating Budget: The operating budget is the primary means by which most of the financing of acquisition, spending, and service delivery activities of a government are controlled. Other Revenues: Revenues from sources, other than those specifically identified, that are immaterial in amount and do not justify reporting as separate line items. Other Charges: Expenditures that do not fit in other categories, are immaterial in amount, and do not justify reporting as separate line items. Performance Measure: Represents the objectives of each department along with a target date for achieving the objective. Performance Results: A summary of major accomplishments and objectives that were met during the fiscal year. Permits: Revenues earned by the issuance of permits levied in accordance with the benefits conferred by the permit. Personnel: Salaries and benefits paid to OCSD’s employees. Included are items such as special duty pay, insurance, and retirement. Personnel Benefits: Those benefits paid by OCSD as conditions of employment. Examples include insurance and retirement benefits. Professional Employees: An employee group consisting of technical experts, analysts, and planners. Program: Organizational units directed to attain specific purposes or objectives. Reserve: A term used to indicate that a portion of fund equity is restricted for a specific purpose. Resources: Total dollars available for appropriations including estimated revenues and beginning fund equity. Revenue Bonds: Bonds issued pledging future revenues such as sewer charges to cover debt payments. A majority voter approval is required prior to bond issuance. 2020-21 & 2021-22 Budget Section 10 – Page 18 Revenue Estimate: A formal estimate of how much revenue will be earned from a specific revenue source for some future period, typically a fiscal year. Revenue: Income received by OCSD to support wastewater treatment services. This income may be in the form of property taxes, fees, user charges, grants, and interest. Risk Register: The Risk Register is a compilation of the various risks facing OCSD, as seen by the management team. Service Charges: Charges for specific services rendered. Service Description: A description of the services or functions provided by each department or division. SCADA (Supervisory Control And Data Acquisition): A system for remote monitoring and control that operates with coded signals over communication channels. SCAQMD: The South Coast Air Quality Management District, also using the acronym SCAQMD, formed in 1976, is the air pollution agency responsible for regulating stationary sources of air pollution in the South Coast Air Basin, in Southern California. Secondary Treatment: A treatment process for wastewater (or sewage) to achieve a certain degree of effluent quality by using a sewage treatment plant with physical phase separation to remove settleable solids and a biological process to remove dissolved and suspended organic compounds. Significant Changes: This section provides an overview of the changes adopted in the budget. Additionally, the significant impacts of budgetary changes are outlined (Budget Impact) along with dollar amounts (Increase/ Decrease). Strategic Goals: District-wide goals that demonstrate OCSD’s long-term commitment to excellence and that establish the framework necessary to maintain the District’s high level of service standards. Strategic Plan: A planning effort to define OCSD’s goals, responsibilities, and requirements over a specified future period. Key factors used in the planning effort include estimates for population growth, new construction, the volume of wastewater delivered to the plants, and viable water conservation and reclamation programs. Supervisory Employees: An employee group whose members have responsibility for directing the work of line employees. Supplemental Appropriation: An appropriation approved by the Directors after the initial budget is adopted. Supplies: An expenditure classification for articles and commodities purchased for consumption or resale. Examples include office and operating supplies, fuel, power, water, gas inventory, or small tools and equipment. SWRCB: The California State Water Resources Control Board (SWRCB) is one of six branches of the California Environmental Protection Agency. Taxes: Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. Technical Services: Support services to OCSD’s wastewater management program through environmental sampling, analysis and research, source control of industrial users, administration of compliance programs to meet federal, state and local environmental standards; provides leadership and influence in the development and implementation of environmental policies, laws, and regulations. Miscellaneous Statistics Section 10 – Page 19 General Information Year of Formation ................................................ 1948 Form of Government ............ County Sanitation District Authority ..................................... Section 4700 et. seq. ................................... California Health & Safety Code Service Area............................................ 479 sq. miles Service Population ............... Approximately 2.6 million 2019-20 Assessed Value ........................ $468.7 billion Miles of Sewers .................................................. 388 miles On-Plant Pump Station……………………………………..2 Off-Plant Pump Stations ................................................ 15 Operating Authority ............... RWQCB/NPDES Permit No. ……………………………………………………CA0110604 ……………………..Statewide WDR Order No. 2006-0003 Authorized Staff (Full-Time Equivalent) .................. 639.00 Treatment Information 2018-19 Influent BOD: Plant No. 1 ......................... 296 milligrams per liter Plant No. 2 ......................... 288 milligrams per liter 2018-19 Influent Suspended Solids: Plant No. 1 ......................... 353 milligrams per liter Plant No. 2 ......................... 411 milligrams per liter 2018-19 Effluent BOD ......................... 6 milligrams per liter 2018-19 Effluent Suspended Solids .. 10 milligrams per liter 2018-19 Biosolids Produced & Reused .. 254,616 wet tons Primary Treatment Capacity (includes standby): Plant No. 1 ....................................... 208 MGD Plant No. 2 ....................................... 168 MGD TOTAL .............................. 376 MGD Secondary Treatment Capacity: Plant No. 1 ....................................... 182 MGD Plant No. 2 ..................................... 150 MGD TOTAL .............................. 332 MGD Legend: MGD – million gallons per day kwh – kilowatts per hour 2019-20 Estimated Average Daily Influent: Plant No. 1 ............................................. 120 MGD Plant No. 2 ............................................... 68 MGD TOTAL .................................... 188 MGD 2019-20 Estimated Electricity Generated: Plant No. 1 ................................... 39,778,706 kwh Plant No. 2 .................................. 59,154,981 kwh TOTAL .......................... 98,933,687 kwh Financial Information 0 100 200 300 400 Plant 1 Plant 2 Total 120 68 188208168 376 2019-20 Estimated Influent Capacity - Primary Treatment Daily Influent Flow to Total Primary Capacity Comparison (in MGD) 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 November 2010C New Money 157,000,000 February 2015A Refunding October 2011A Refunding 75,370,000 March 2016A Refunding March 2012A Refunding 100,645,000 February 2017A Refunding August 2012B Refunding 25,560,000 November 2018A Refunding Total Outstanding COP Balance 7/1/20 940,050,000$ 63,930,000 127,510,000 141,465,000 66,370,000 102,200,000 2020-21 & 2021-22 Budget Section 10 – Page 20 ORANGE COUNTY SANITATION DISTRICT Estimated Population Served by the Orange County Sanitation District Anaheim 357,325 Brea 45,629 Buena Park 81,998 Costa Mesa 114,778 Cypress 49,272 Fountain Valley 55,878 Fullerton 141,863 Garden Grove 174,801 Huntington Beach 201,281 Irvine 281,707 La Habra 63,371 La Palma 15,492 Los Alamitos 11,567 Newport Beach 85,780 Orange 140,065 Placentia 51,494 Santa Ana 335,052 Seal Beach 24,992 Stanton 39,077 Tustin 80,382 Villa Park 5,766 Westminster 92,421 Yorba Linda 68,650 Subtotal Cities (1)2,518,641 Estimated Population Served in Unincorporated Areas (2)71,505 2,590,146 Data Source: (1) Demographic Research Unit, State of California Department of Finance (2) Center for Demographic Research, California State University, Fullerton. Population as of January 1, 2020 Index Section 10 – Page 21 Index Accounting System and Budgetary Control ................................................................................... Section 3, Page 25 Administrative Officials .............................................................................................................................................. vi Administrative Services Administration .................................................................................. Section 6, Pages 21-24 Appropriations Limit ..................................................................................................................... Section 10, Page 13 Background Information and Description of Services ................................................................... Section 2, Page 25 Board Committees ..................................................................................................................................................... iv Board of Directors ...................................................................................................................................................... iii Board Services ........................................................................................................................... Section 6, Pages 5-8 Budget Assumptions ............................................................................................................... Section 3, Pages 21-23 Budget Glossary ................................................................................................................... Section 10, Pages 14-18 Budget Resources ...................................................................................................................... Section 4, Page 8-13 Business Plan ......................................................................................................................... Section 2, Pages 13-21 Capital Equipment Budget Detail .................................................................................... Section 8, Pages 98-99, 102 Capital Equipment Budget Summary ...................................................................... Section 8, Pages 96-97, 100-101 Capital Improvement Expenditure Graphs ................................................................................ Section 8, Pages 5, 7 Capital Improvement Program - Budget Summary ................................................................... Section 8, Pages 4, 6 Capital Improvement Program - Overview ................................................................................... Section 8, Page 1-2 Capital Improvement Program - Project Detail Sheets ........................................................... Section 8, Pages 12-86 Capital Improvement Program - Project Summary by CIP Driver .......................................... Section 8, Pages 91-94 Capital Improvement Program - Summary by Project Status ................................................ Section 8, Pages 87-90 Capital Improvement Program - Summary of Capital Requirements ....................................... Section 8, Pages 8-11 Collection Facilities Operations & Maintenance ..................................................................... Section 6, Pages 73-77 Consolidated Cash Flow Projections ...................................................................................... Section 4, Pages 16-17 Construction Management ..................................................................................................... Section 6, Pages 65-68 Contracts, Purchasing and Materials Management ............................................................... Section 6, Pages 29-32 Debt Financing Program ............................................................................................................. Section 9, Pages 1-4 Debt Service Requirements Schedule, Interest ........................................................................... Section 9, Page 8-9 Debt Service Requirements Schedule, Principal ...................................................................... Section 9, Page 10-11 Debt Service Requirements Schedule, Principal & Interest ......................................................... Section 9, Page 6-7 Design ..................................................................................................................................... Section 6, Pages 61-64 Engineering Administration ..................................................................................................... Section 6, Pages 49-52 Environmental Services Administration .................................................................................. Section 6, Pages 37-40 Executive Summary ...................................................................................................................... Section 1, Page 1-4 Financial Management .......................................................................................................... Section 6, Pages 25-28 Financial Overview & Budgetary Issues ................................................................................... Section 2, Pages 1-12 Fiscal Policy ................................................................................................................................ Section 3, Pages 1-8 Fleet Services ........................................................................................................................ Section 6, Pages 77-80 Fund Structure Diagram ................................................................................................................ Section 3, Page 26 Funding Sources by Category ................................................................................................... Section 4, Pages 2, 6 Funding Uses by Category ........................................................................................................ Section 4, Pages 3, 7 GFOA Best Practices and Advisories ....................................................................................... Section 3, Pages 9-17 General Liability and Property Self-Insurance Program .................................................................. Section 7, Page 3 General Management Administration ......................................................................................... Section 6, Pages 1-4 Index Section 10 – Page 22 Index (continued) General Manager's Budget Message ................................................................................................................... vii-ix Historical Staffing Chart ................................................................................................................. Section 10, Page 2 Historical Staffing Detail (by Department by Position) .............................................................. Section 10, Page 4-11 Historical Staffing Summary (by Department) ............................................................................... Section 10, Page 3 Human Resources Administration .......................................................................................... Section 6, Pages 13-16 Information Technology .......................................................................................................... Section 6, Pages 33-36 Laboratory, Monitoring and Compliance................................................................................. Section 6, Pages 45-48 Levels of Service Target Levels ............................................................................................. Section 2, Pages 24-25 Long-Term Planning Table ............................................................................................................ Section 2, Page 26 Maintenance – Plant No. 1 ....................................................................................................... Section 6, Page 89-92 Maintenance – Plant No. 2 ....................................................................................................... Section 6, Page 93-96 Miscellaneous Statistics .............................................................................................................. Section 10, Page 19 Mission, Vision and Core Values ................................................................................................................................ x Notes to Operations Summary ................................................................................................... Section 5, Pages 7-9 Operations - Plant No. 1 ......................................................................................................... Section 6, Pages 81-84 Operations - Plant No. 2 ......................................................................................................... Section 6, Pages 85-88 Operations Summary - Allocation to Individual Revenue Areas ..................................................... Section 5, Page 4 Operations Summary - Comparisons by Department ..................................................................... Section 5, Page 2 Operations Summary - Expense by Category ................................................................................. Section 5, Page 3 Operations Summary - Expense by Line Item ............................................................................ Section 5, Pages 5-6 Operations Summary - Budget Overview ........................................................................................ Section 5, Page 1 Operations & Maintenance Administration ............................................................................. Section 6, Pages 69-72 Orange County at a Glance ...................................................................................................... Section 2, Page 27-28 Orange County Sanitation District’s Organizational Chart ......................................................................................... v Overview of the Budget Process ............................................................................................ Section 3, Pages 19-20 Planning .................................................................................................................................. Section 6, Pages 53-56 Population Information, Service Area .......................................................................................... Section 10, Page 20 Project Management .............................................................................................................. Section 6, Pages 57-60 Projected Reserves .................................................................................................................. Section 4, Page 14-15 Public Affairs ............................................................................................................................. Section 6, Pages 9-12 Reader's Guide to the Budget .................................................................................................................................. i-ii Resource Protection ............................................................................................................... Section 6, Pages 41-44 Revenue Sources ................................................................................................................... Section 3, Pages 27-29 Risk Management/Safety/Security ......................................................................................... Section 6, Pages 17-20 Self-Insurance Program - Overview ................................................................................................ Section 7, Page 1 Staffing by Category Chart ............................................................................................................ Section 10, Page 1 Staffing by Department Chart ........................................................................................................ Section 10, Page 1 Summary of Outstanding Certificates of Participation ..................................................................... Section 9, Page 1 Total of Self-Insurance Program ...................................................................................................... Section 7, Page 2 Treatment Process Diagram ............................................................................................................ Section 8, Page 3 Where the Money Comes From ................................................................................................ Section 4, Pages 1, 5 Where the Money Goes ............................................................................................................. Section 4, Pages 1, 5 Workers’ Compensation Self-Insurance Program ........................................................................... Section 7, Page 4 Orange County Sanitation District 10844 Ellis Avenue Fountain Valley Calilfornia, 92708-7018 714.962.2411 www.ocsd.com 06/2020