HomeMy WebLinkAbout06-09-2021 Administration Committee Meeting Complete Agenda Packet
ORANGE COUNTY SANITATION DISTRICT
SPECIAL NOTICE REGARDING CORONAVIRUS (COVID-19)
AND ATTENDANCE AT PUBLIC MEETINGS
On March 4, 2020, Governor Newsom proclaimed a State of Emergency in California as
a result of the threat of COVID-19. On March 12, 2020 and March 18, 2020, Governor
Newsom issued Executive Order N-25-20 and Executive Order N-29-20, which
temporarily suspend portions of the Brown Act which addresses the conduct of public
meetings.
The General Manager and the Chairman of the Board of Directors have determined that
due to the size of the Orange County Sanitation District’s Board of Directors (25), and the
health and safety of the members, the Board of Directors will be participating in meetings
of the Board telephonically and via Internet accessibility.
PUBLIC PARTICIPATION
Your participation is always welcome. The Administration Committee meeting will be
available to the public online at:
https://ocsd.legistar.com/Calendar.aspx
You may submit your comments and questions in writing for the Administration
Committee’s consideration in advance of the meeting by using the eComment feature
available via the webpage above or sending them to OCSanClerk@ocsd.com with the
subject line “PUBLIC COMMENT ITEM # (insert the item number relevant to your
comment)” or “PUBLIC COMMENT NON-AGENDA ITEM”. Submit your written
comments by 5:00 p.m. on Tuesday, June 8, 2021.
You may also submit comments and questions for the Administration Committee’s
consideration during the meeting by using the eComment feature that will be available
via the webpage above for the duration of the meeting.
All public comments will be provided to the Administration Committee and may be read
into the record or compiled as part of the record.
Thank you.
June 3, 2021
NOTICE OF MEETING
ADMINISTRATION COMMITTEE
ORANGE COUNTY SANITATION DISTRICT
Wednesday, June 9, 2021 – 5:00 P.M.
ACCESSIBILITY FOR THE GENERAL PUBLIC
Due to the spread of COVID-19, the Orange County Sanitation District will
be holding all upcoming Board and Committee meetings by
teleconferencing and Internet accessibility. This meeting will be available
to the public online at:
https://ocsd.legistar.com/Calendar.aspx
A regular meeting of the Administration Committee of the Orange County
Sanitation District will be held in the manner indicated herein on
Wednesday, June 9, 2021 at 5:00 p.m.
ADMINISTRATION COMMITTEE
MEETING DATE
BOARD MEETING DATE
06/09/21 06/23/21
07/14/21 07/28/21
AUGUST DARK 08/25/21
09/08/21 09/22/21
10/13/21 10/27/21
11/10/21 11/17/21 *
12/08/21 12/15/21 *
JANUARY DARK 01/26/22
02/09/22 02/23/22
03/09/22 03/23/22
04/13/22 04/27/22
05/11/22 05/25/22
* Meeting will be held on the third Wednesday of the month
ROLL CALL
ADMINISTRATION COMMITTEE
Finance, Information Technology, Environmental Services
and Human Resources
Meeting Date: June 9, 2021 Time: 5:00 p.m.
Adjourn:
COMMITTEE MEMBERS (13)
Chad Wanke, Chair
Glenn Parker, Vice-Chair
Brad Avery
Art Brown
Kim Carr
Mark Chirco
Rose Espinoza
Marshall Goodman
Patrick Harper
Anthony Kuo
Andrew Nguyen
David Shawver (Board Chair)
John Withers (Board Vice-Chair)
OTHERS
Brad Hogin, General Counsel
STAFF
Jim Herberg, General Manager
Rob Thompson, Assistant General Manager
Lorenzo Tyner, Assistant General Manager
Celia Chandler, Director of Human Resources
Kathy Millea, Director of Engineering
Lan Wiborg, Director of Environmental Services
Kelly Lore, Clerk of the Board
ORANGE COUNTY SANITATION DISTRICT Effective 2/9/2021
BOARD OF DIRECTORS
Complete Roster
AGENCY/CITIES ACTIVE DIRECTOR
ALTERNATE
DIRECTOR
Anaheim Stephen Faessel Jose Diaz
Brea Glenn Parker Steven Vargas
Buena Park Art Brown Connor Traut
Cypress Stacy Berry Anne Hertz
Fountain Valley Patrick Harper Glenn Grandis
Fullerton Jesus J. Silva Nick Dunlap
Garden Grove Steve Jones John O’Neill
Huntington Beach Kim Carr Dan Kalmick
Irvine Anthony Kuo Farrah N. Khan
La Habra Rose Espinoza Jose Medrano
La Palma Marshall Goodman Nitesh Patel
Los Alamitos Mark A. Chirco Ron Bates
Newport Beach Brad Avery Joy Brenner
Orange Kim Nichols Chip Monaco
Placentia Chad Wanke Ward Smith
Santa Ana Johnathan Ryan Hernandez Nelida Mendoza
Seal Beach Sandra Massa-Lavitt Schelly Sustarsic
Stanton David Shawver Carol Warren
Tustin Ryan Gallagher Austin Lumbard
Villa Park Chad Zimmerman Robert Collacott
Sanitary/Water Districts
Costa Mesa Sanitary District Bob Ooten Art Perry
Midway City Sanitary District Andrew Nguyen Sergio Contreras
Irvine Ranch Water District John Withers Douglas Reinhart
Yorba Linda Water District Brooke Jones Phil Hawkins
County Areas
Board of Supervisors Doug Chaffee Donald P. Wagner
ADMINISTRATION COMMITTEE
Regular Meeting Agenda
Wednesday, June 9, 2021 - 5:00 PM
Board Room
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
AGENDA POSTING: In accordance with the requirements of California Government Code Section 54954.2, this
agenda has been posted outside the main gate of the Sanitation District’s Administration Building located
at 10844 Ellis Avenue, Fountain Valley, California, and on the Sanitation District’s website at www.ocsd.com
not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda
item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority
of the Board of Directors, are available for public inspection in the office of the Clerk of the Board.
AGENDA DESCRIPTION: The agenda provides a brief general description of each item of business to
be considered or discussed. The recommended action does not indicate what action will be taken. The Board
of Directors may take any action which is deemed appropriate.
MEETING AUDIO: An audio recording of this meeting is available within 24 hours after adjournment of
the meeting. Please contact the Clerk of the Board's office at (714) 593-7433 to request the audio file.
NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, the item must
be submitted in writing to the Clerk of the Board: Kelly A. Lore, MMC, (714) 593-7433 / klore@ocsd.com at least
14 days before the meeting.
FOR ANY QUESTIONS ON THE AGENDA, BOARD MEMBERS MAY CONTACT STAFF AT:
General Manager: Jim Herberg, jherberg@ocsd.com / (714) 593-7300
Asst. General Manager: Lorenzo Tyner, ltyner@ocsd.com / (714) 593-7550
Asst. General Manager: Rob Thompson, rthompson@ocsd.com / (714) 593-7310
Director of Human Resources: Celia Chandler, cchandler@ocsd.com / (714) 593-7202
Director of Engineering: Kathy Millea, kmillea@ocsd.com / (714) 593-7365
Director of Environmental Services: Lan Wiborg, lwiborg@ocsd.com / (714) 593-7450
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, June 9, 2021
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL AND DECLARATION OF QUORUM:
Clerk of the Board
PUBLIC COMMENTS:
Your participation is always welcome. The Administration Committee meeting will be available to the public online
at: https://ocsd.legistar.com/Calendar.aspx.
You may submit your comments and questions in writing for the Administration Committee’s consideration in
advance of the meeting by using the eComment feature available via the webpage above or sending them to
OCSanClerk@ocsd.com with the subject line “PUBLIC COMMENT ITEM # (insert the item number relevant to
your comment)” or “PUBLIC COMMENT NON-AGENDA ITEM”. Submit your written comments by 5:00 p.m. on
June 8, 2021.
You may also submit comments and questions for the Administration Committee’s consideration during the
meeting by using the eComment feature that will be available via the webpage above for the duration of the
meeting. All public comments will be provided to the Administration Committee and may be read into the record
or compiled as part of the record.
REPORTS:
The Committee Chairperson and the General Manager may present verbal reports on miscellaneous matters of
general interest to the Directors. These reports are for information only and require no action by the Directors.
CONSENT CALENDAR:
Consent Calendar Items are considered to be routine and will be enacted, by the Committee, after one motion,
without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in
the regular order of business.
1.2021-1653APPROVAL OF MINUTES
RECOMMENDATION:
Approve Minutes of the Regular Meeting of the Administration Committee held May 12,
2021.
Originator:Kelly Lore
Agenda Report
05-12-2021 Administration Committee Minutes
Attachments:
Page 1 of 5
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, June 9, 2021
2.2021-1646FY 2021-22 USE CHARGES FOR THE SANTA ANA WATERSHED
PROJECT AUTHORITY
RECOMMENDATION: Recommend to the Board of Directors to:
Adopt Resolution No. OC SAN 21-XX, entitled: “A Resolution of the Board of Directors
of the Orange County Sanitation District Establishing Use Charges for the 2021-22
Fiscal Year Pursuant to the Wastewater Treatment and Disposal Agreement with the
Santa Ana Watershed Project Authority (“SAWPA”)”.
Originator:Lorenzo Tyner
Agenda Report
2021-22 SAWPA Resolution
Attachments:
3.2021-1650GANN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2021-22
RECOMMENDATION: Recommend to the Board of Directors to:
Adopt Resolution No. OC SAN 21-XX, entitled: “A Resolution of the Board of Directors
of the Orange County Sanitation District Establishing the Annual Appropriations Limit
for Fiscal Year 2021-22 for the Sanitation District in accordance with the Provisions of
Division 9 of Title 1 of the California Government Code”.
Originator:Lorenzo Tyner
Agenda Report
Draft Resolution OC SAN-XX
Attachments:
4.2021-1665COMPLETE ELECTRICAL DATA MANAGEMENT SOLUTION
RECOMMENDATION: Recommend to the Board of Directors to:
A. Award a Professional Services Agreement to AVO Multi-Amp Corporation dba
Megger to provide Electrical Data Management Services, Specification No.
CS-2021-1039BD-R, for a total amount not to exceed $212,255; and
B. Approve a contingency of $31,838 (15%).
Originator:Lorenzo Tyner
Agenda Report
CS-2021-1039BD-R Draft PSA-SOW
Attachments:
Page 2 of 5
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, June 9, 2021
5.2021-1680APPROVE A CONTINGENCY INCREASE TO EXISTING SERVICE
CONTRACT FOR HAZARDOUS WASTE DISPOSAL SERVICES
RECOMMENDATION: Recommend to the Board of Directors to:
Approve an annual contingency increase of $150,000 (in addition to the original
contingency of $19,200 for a total annual contingency of $169,200, in addition to the
original contract amount of $192,000) to the Service Contract with Clean Harbors
Environmental Services, Inc., Specification No. S-2017-841, for hazardous waste
services, for the contract term ending June 30, 2021, and for the contract term ending
June 30, 2022.
Originator:Celia Chandler
Agenda ReportAttachments:
NON-CONSENT:
6.2021-1681CLASSIFICATION & COMPENSATION STUDIES
RECOMMENDATION: Recommend to the Board of Directors to:
A. Award a Professional Consultant Services Agreement to Kaneko and Krammer
Corp. dba Koff & Associates to provide Classification and Compensation
Services, Specification No. CS-2021-1229BD, for a total amount not to exceed
$243,660; and
B. Approve a project contingency of $24,366 (10%).
Originator:Celia Chandler
Agenda Report
CS-2021-1229BD Draft CS Contract-SOW
Attachments:
7.2021-1419PROPOSED ORDINANCE NO. OC SAN-57 UPDATING THE CAPITAL
FACILITIES CAPACITY CHARGES ORDINANCE
RECOMMENDATION: Recommend to the Board of Directors to:
A. Introduce Ordinance No. OC SAN-57, entitled “An Ordinance of the Board of
Directors of the Orange County Sanitation District Amending Requirements for
Accessory Dwelling Unit Capital Facilities Capacity Charges, Restating
Previously Adopted Charges, and Repealing Ordinance No. OCSD-50 and
Ordinance No. OCSD-54”;
B. Motion to read Ordinance No. OC SAN-57 by title only and waive reading of said
entire Ordinance on June 23, 2021;
Page 3 of 5
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, June 9, 2021
C. Set July 28, 2021 as the date for the second reading of Ordinance No. OC
SAN-57;
D. Receive and file the Carollo Engineers letter dated June 2, 2021; and
E. Direct the Clerk of the Board to publish summaries of the Ordinance as required
by law.
Originator:Lorenzo Tyner
Agenda Report
OC SAN-57 Redline
OC SAN-57 Clean
OCSD-54 Amending Ordinance OCSD-50
OCSD-50 Capital Facilities Capacity Charges
Carollo Engineers Letter Dated 06-02-21
Attachments:
8.2021-16842021-22 PROPERTY - LIABILITY INSURANCE RENEWALS
RECOMMENDATION: Recommend to the Board of Directors to:
Approve the Orange County Sanitation District FY 2021-22 Property-Liability Insurance
Renewals included in the FY 2021-22 Budget Update for the not-to-exceed amounts
specified below:
Property and Boiler & Machinery - Not to Exceed $ 1,484,593
Excess General Liability Insurance - Not to Exceed $ 906,635
Excess Workers’ Compensation Insurance - Not to Exceed $ 271,860
Earthquake Insurance - Not to Exceed $ 118,166
TOTAL $ 2,781,254
Originator:Lorenzo Tyner
Agenda ReportAttachments:
9.2021-1674PROPOSED FY 2021-22 BUDGET UPDATE
RECOMMENDATION: Recommend to the Board of Directors to:
Approve the proposed Operating, Capital, Debt Service, and Self-Insurance Budgets
for FY 2021-22 as follows:
FY 2021-22
Net Operating $ 183,950,874
Self-Insurance - Workers’ Comp.$ 841,860
Self-Insurance - Property & Gen. Liability $ 2,609,393
Net Capital Improvement Program $ 224,560,503
Page 4 of 5
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, June 9, 2021
Debt/COP Service(1)$ 234,506,355
Intra-District Joint Equity Purchase/Sale(2)$ 3,500,000
TOTAL $ 649,968,985
PP(1)PPIncludes $163,775,355 in maturing and callable debt
(2)PPCash to/from Revenue Area 14 (RA14) in exchange for capital assets
to/from Consolidated Revenue Area 15 (RA15)
Originator:Lorenzo Tyner
Agenda Report
Presentation - Proposed FY 2021-22 Budget Update
Budget Update 2021-2022
Attachments:
INFORMATION ITEMS:
10.2021-1688ORANGE COUNTY SANITATION DISTRICT ENVIRONMENTAL
SERVICES RESOURCE PROTECTION
RECOMMENDATION:
Information Item.
Originator:Lan Wiborg
Agenda Report
Presentation - Resource Protection
Attachments:
DEPARTMENT HEAD REPORTS:
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF
ANY:
BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING:
At this time Directors may request staff to place an item on a future agenda.
ADJOURNMENT:
The next Administration Committee meeting is scheduled for Wednesday, July 14, 2021 at
5:00 p.m.
Page 5 of 5
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1653 Agenda Date:6/9/2021 Agenda Item No:1.
FROM:James D. Herberg, General Manager
Originator: Kelly A. Lore, Clerk of the Board
SUBJECT:
APPROVAL OF MINUTES
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION:
Approve Minutes of the Regular Meeting of the Administration Committee held May 12, 2021.
BACKGROUND
In accordance with the Board of Directors Rules of Procedure,an accurate record of each meeting
will be provided to the Directors for subsequent approval at the following meeting.
RELEVANT STANDARDS
·Resolution No. OC SAN 21-04
ATTACHMENT
The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda
package:
·Minutes of the Administration Committee meeting held May 12, 2021
Orange County Sanitation District Printed on 6/1/2021Page 1 of 1
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Orange County Sanitation District
Minutes for the
ADMINISTRATION COMMITTEE
Wednesday, May 12, 2021
5:00 PM
Board Room
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
CALL TO ORDER
A regular meeting of the Administration Committee was called to order by Committee
Vice-Chairman Glenn Parker on Wednesday, May 12, 2021 at 5:00 p.m. in the Administration
Building of the Orange County Sanitation District. Vice-Chair Parker stated that the meeting
was being held telephonically and via audio/video teleconferencing in accordance with the
Governor's Executive Order No. N-29-20, due to the Coronavirus Pandemic (COVID-19).
ROLL CALL AND DECLARATION OF QUORUM:
Roll call was taken and a quorum was declared present, as follows:
PRESENT:Glenn Parker, Brad Avery, Art Brown, Kim Carr, Mark Chirco, Rose
Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen,
Anthony Kuo, David Shawver and John Withers
ABSENT:Chad Wanke
STAFF PRESENT: Kelly Lore, Clerk of the Board, and Josh Martinez were present in the
Board Room. Jim Herberg, General Manager; Rob Thompson, Assistant General Manager;
Lorenzo Tyner, Assistant General Manager; Celia Chandler, Director of Human Resources;
Lan Wiborg, Director of Environmental Services; Jennifer Cabral; Raul Cuellar; Brian Engeln;
Tina Knapp; Tom Meregillano; Adam Nazaroff; Wally Ritchie; Thomas Vu; and Eros Yong
were in attendance telephonically.
OTHERS PRESENT: Brad Hogin, General Counsel; Dennis Mulqueeney, Alliant Insurance
Services, Inc.; and Ed Soong, Public Resource Advisory Group were in attendance
telephonically.
PUBLIC COMMENTS:
None.
REPORTS:
Vice-Chair Parker provided a brief update of the upcoming Cyber Security audit. General
Manager Herberg did not provide a report.
Page 1 of 5
ADMINISTRATION
COMMITTEE
Minutes May 12, 2021
CONSENT CALENDAR:
1.APPROVAL OF MINUTES 2021-1598
Originator: Kelly Lore
MOVED, SECONDED, AND DULY CARRIED TO:
Approve Minutes of the Regular Meeting of Administration Committee held April 14,
2021.
AYES:Glenn Parker, Brad Avery, Art Brown, Kim Carr, Mark Chirco, Rose
Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen,
Anthony Kuo, David Shawver and John Withers
NOES:None
ABSENT:Chad Wanke
ABSTENTIONS:None
2.CONSOLIDATED FINANCIAL REPORT FOR THE THIRD QUARTER
ENDED MARCH 31, 2021
2021-1555
Originator: Lorenzo Tyner
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to:
Receive and file the Orange County Sanitation District Third Quarter Financial Report
for the period ended March 31, 2021.
AYES:Glenn Parker, Brad Avery, Art Brown, Kim Carr, Mark Chirco, Rose
Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen,
Anthony Kuo, David Shawver and John Withers
NOES:None
ABSENT:Chad Wanke
ABSTENTIONS:None
3.RECORDS MANAGEMENT PROGRAM UPDATE 2021-1556
Originator: Kelly Lore
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to:
Adopt Resolution No. OC SAN 21-XX entitled: “A Resolution of the Board of Directors
of the Orange County Sanitation District Adopting the Records Management Program
Procedures and Records Retention Schedule, Authorizing Destruction of Obsolete
Records, and Repealing Resolution No. OCSD 20-10”.
Page 2 of 5
ADMINISTRATION
COMMITTEE
Minutes May 12, 2021
AYES:Glenn Parker, Brad Avery, Art Brown, Kim Carr, Mark Chirco, Rose
Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen,
Anthony Kuo, David Shawver and John Withers
NOES:None
ABSENT:Chad Wanke
ABSTENTIONS:None
4.GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS
TO THE PRE-APPROVED OEM SOLE SOURCE LIST
2021-1620
Originator: Lorenzo Tyner
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Receive and file Orange County Sanitation District purchases made under the
General Manager’s authority for the period of January 1, 2021 to March 31,
2021; and
B. Approve the following additions to the pre-approved OEM Sole Source List for
the period of January 1, 2021 to March 31, 2021:
·ALTRONIC - CenGen Engine Ignition Subsystem Components
·CECO FYBROC - Pumps and Parts
·FLUKE ELECTRONICS CORPORATION / PRUFTECHNIK - Rotalign
Touch Laser Shaft Alignment System
·KURZ INSTRUMENTS - Gas Flow Meters
·METTLER TOLEDO, LLC - Truck Loading Scale Controller Replacement
·SDT ULTRASOUND SOLUTIONS - SDT Ultrasound Instruments,
Hardware, and Software
·SWAGELOK - Parts, Tools, and Service
AYES:Glenn Parker, Brad Avery, Art Brown, Kim Carr, Mark Chirco, Rose
Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen,
Anthony Kuo, David Shawver and John Withers
NOES:None
ABSENT:Chad Wanke
ABSTENTIONS:None
NON-CONSENT:
5.WASTEWATER REFUNDING REVENUE OBLIGATIONS, SERIES
2021A
2021-1609
Originator: Lorenzo Tyner
Page 3 of 5
ADMINISTRATION
COMMITTEE
Minutes May 12, 2021
Assistant General Manager Lorenzo Tyner provided a brief introduction to the item and
explained the necessary debt issuance that is due next year. Mr. Ed Soong, Public
Resource Advisory Group (PRAG), and Mr. Tyner responded to questions from the
Committee as to the background of PRAG and the anticipated cost of refinancing.
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Adopt Resolution No. OC SAN 21-XX entitled: “A Resolution of the Board of
Directors of the Orange County Sanitation District authorizing the execution and
delivery by the District of an Installment Purchase Agreement, a Trust
Agreement, a Continuing Disclosure Agreement and Escrow Agreements in
connection with the Orange County Sanitation District Wastewater Refunding
Revenue Obligations, Series 2021A, authorizing the execution and delivery of
such Revenue Obligations evidencing principal in an aggregate amount of not to
exceed $163,775,000, approving a Notice of Intention to Sell, authorizing the
distribution of an Official Notice Inviting Bids and an Official Statement in
connection with the offering and sale of such Revenue Obligations and
authorizing the execution of necessary documents and related actions”; and
B. That the Orange County Sanitation District Financing Corporation approve the
documents supporting and authorizing the Revenue Obligations in an aggregate
amount not to exceed $163,775,000.
AYES:Glenn Parker, Brad Avery, Art Brown, Kim Carr, Mark Chirco, Rose
Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen,
Anthony Kuo, David Shawver and John Withers
NOES:None
ABSENT:Chad Wanke
ABSTENTIONS:None
INFORMATION ITEMS:
6.INSURANCE RENEWAL MARKET OVERVIEW 2021-1606
Originator: Lorenzo Tyner
Dennis Mulqueeney, Alliant Insurance Services, provided a PowerPoint presentation
which included an in depth overview of OC San's Insurance Program including: Liability
& Workers Compensation, Casualty, and Property Insurance. He also reported the
risks that are affecting current rates including: Cyber Attacks, Ransomware, Aging
Infrastructure, Earthquakes, Wildfires, and the Pandemic.
ITEM RECEIVED AS AN:
Information Item.
Page 4 of 5
ADMINISTRATION
COMMITTEE
Minutes May 12, 2021
7.CAPITAL IMPROVEMENT PROGRAM PROPOSED BUDGET FOR
FY2021-22
2021-1628
Originator: Kathy Millea
Engineering Manager Eros Yong provided an informative PowerPoint presentation
regarding the Capital Improvement Program (CIP) FY 2021-22 Budget update
including: performance overview; 10-year net and total CIP outlay; CIP budget
authority; new projects; top budget increases and decreases; project closures;
projected FY 2021-22 net CIP outlay; and 20-year net CIP outlay.
ITEM RECEIVED AS AN:
Information Item.
DEPARTMENT HEAD REPORTS:
None.
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF
ANY:
Director Harper urged the Committee to support OC San's Community Project Assistance
request for $10,000,000 in federal funding for the Headworks Rehabilitation Project.
BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING:
None.
ADJOURNMENT:
Vice-Chair Parker declared the meeting adjourned at 6:29 p.m. to the next Regular meeting of
the Administration Committee to be held on Wednesday, June 9, 2021 at 5:00 p.m.
Submitted by:
__________________
Kelly A. Lore, MMC
Clerk of the Board
Page 5 of 5
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1646 Agenda Date:6/9/2021 Agenda Item No:2.
FROM:James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
FY 2021-22 USE CHARGES FOR THE SANTA ANA WATERSHED PROJECT AUTHORITY
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
Adopt Resolution No.OC SAN 21-XX,entitled:“A Resolution of the Board of Directors of the Orange
County Sanitation District Establishing Use Charges for the 2021-22 Fiscal Year Pursuant to the
Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority
(“SAWPA”)”.
BACKGROUND
Currently,the Orange County Sanitation District (OC San)invoices Santa Ana Watershed Project
Authority (SAWPA)on a quarterly basis for the wastewater discharge OC San receives from the
SARI line.Annually,the rates for flow,biochemical oxygen demand (BOD),and total suspended
solids (TSS)are calculated based upon the fiscal year budget for treatment and disposal costs and
the 1996 Wastewater Treatment and Disposal Agreement.The rates calculated for each constituent
for FY 2021-22 for wastewater discharge are:
FLOW $224.56
BOD $320.54
TSS $473.07
The FY 2021-22 rates are a 5.28 percent increase from the FY 2020-21 rates due to a 5.28 percent
increase in the treatment and disposal costs in the proposed FY 2021-22 Budget.These rates are
separate from the rates charged for additional capacity purchases by SAWPA.
RELEVANT STANDARDS
·Comply with OC San Policy - establishing annual SAWPA treatment and disposal rates
·Supports the 1996 Treatment and Disposal agreement with SAWPA
TIMING CONCERNS
Rates should be effective for July 1 of FY 2021-22.
Orange County Sanitation District Printed on 6/1/2021Page 1 of 2
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File #:2021-1646 Agenda Date:6/9/2021 Agenda Item No:2.
RAMIFICATIONS OF NOT TAKING ACTION
Rates would not be established for FY 2021-22 for cost recovery for treatment and disposal of
SAWPA’s wastewater discharge.
PRIOR COMMITTEE/BOARD ACTIONS
A Resolution is adopted annually in June pursuant to the Wastewater Treatment and Disposal
Agreement with SAWPA.
ATTACHMENT
The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda
package:
·Draft Resolution No. OC SAN 21-XX
Orange County Sanitation District Printed on 6/1/2021Page 2 of 2
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OC SAN 21-XX-1
RESOLUTION NO. OC SAN 21-XX
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
ORANGE COUNTY SANITATION DISTRICT ESTABLISHING
USE CHARGES FOR THE 2021-22 FISCAL YEAR
PURSUANT TO THE WASTEWATER TREATMENT AND
DISPOSAL AGREEMENT WITH THE SANTA ANA
WATERSHED PROJECT AUTHORITY (“SAWPA”)
WHEREAS, the Board of Directors has approved the Wastewater
Treatment and Disposal Agreement with the Santa Ana Watershed Project
Authority (“SAWPA”); and,
WHEREAS, said Agreement provides for payment of Disposal Costs for the
measured and sampled flow of Wastewater discharged from SAWPA’s SARI
Service Area to Orange County Sanitation District’s facilities; and,
WHEREAS, said agreement provides for adjustment of said Disposal Costs
on an annual basis.
NOW, THEREFORE, the Board of Directors of the Orange County
Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER:
Section 1. That pursuant to Section C4 of the Wastewater Treatment and
Disposal Agreement, the 2021-22 fiscal year charges for Disposal Costs are
hereby established as follows:
For Flow: $ 224.56 per million gallons of flow
For Biochemical Oxygen Demand: $ 320.54 per thousand pounds
For Total Suspended Solids: $ 473.07 per thousand pounds
OC SAN 21-XX-2
PASSED AND ADOPTED at a regular meeting of the Orange County
Sanitation District’s Board of Directors held June 23, 2021.
___________________________
David John Shawver
Board Chairman
ATTEST:
___________________________
Kelly A. Lore, MMC
Clerk of the Board
OC SAN 21-XX-3
STATE OF CALIFORNIA )
) ss
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation
District, do hereby certify that the foregoing Resolution No. OC SAN 21-XX was
passed and adopted at a regular meeting of said Board on the 23rd day of June 2021,
by the following vote, to wit:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official
seal of Orange County Sanitation District this 23rd day of June 2021.
Kelly A. Lore, MMC
Clerk of the Board of Directors
Orange County Sanitation District
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1650 Agenda Date:6/9/2021 Agenda Item No:3.
FROM:James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
GANN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2021-22
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
Adopt Resolution No.OC SAN 21-XX,entitled:“A Resolution of the Board of Directors of the Orange
County Sanitation District Establishing the Annual Appropriations Limit for Fiscal Year 2021-22 for the
Sanitation District in accordance with the Provisions of Division 9 of Title 1 of the California
Government Code”.
BACKGROUND
This routine annual action adopts a resolution establishing the spending limit for “proceeds of taxes”
in accordance with Article XIII B of the Constitution of the State of California (Section 7910 of the
Government Code).The Orange County Sanitation District’s (OC San)annual appropriations are
well below the limit.
In 1979,Proposition 4 (the Gann Initiative)was approved adding Article XIII B to the State
Constitution.The provisions of this article place limits on the amount of revenue that can be
appropriated by all entities of government.This initiative was designed to constrain government
expenditures by placing an annual limit on jurisdictions'revenue and appropriation growth.The
Appropriations Limit is based on actual appropriations during the 1978-1979 fiscal year,as increased
each year using specified population and inflationary growth factors.This annual allowance growth is
linked to changes in population and cost of living.The passage of Proposition 111 in June 1990
amended Article XIIIB,making changes in the base year upon which the appropriations limit is based,
establishing new cost of living factors and new population factors for use by local governments,and
increasing appropriations not subject to the limit (primarily qualified capital outlay projects).The
financial constraints of Article XIII B apply to the State,all cities,counties,special districts,and all
other political subdivisions.
RELEVANT STANDARDS
·Produce Operations and CIP budgets every two years, with annual update
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File #:2021-1650 Agenda Date:6/9/2021 Agenda Item No:3.
PROBLEM
Article XIII B of the State Constitution places limits on the amount of revenue that can be
appropriated by all entities of government.
PROPOSED SOLUTION
Approval of the proposed Resolution establishing the annual appropriations limit for fiscal year 2021-
22 in accordance with the provisions of Division 9 of Title 1 of the California Government Code.
TIMING CONCERNS
The proposed one-year budget,effective July 1 of this year,will be finalized and presented to the
Board for adoption in June.The appropriations limit Resolution needs to be approved in conjunction
with the budget.
RAMIFICATIONS OF NOT TAKING ACTION
OC San will not be able to carry out its financial fiduciary duties beyond June 30, 2021.
ATTACHMENT
The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda
package:
·Draft Resolution No. OC SAN 21-XX
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OC SAN 21-XX-1
RESOLUTION NO. OC SAN 21-XX
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
ORANGE COUNTY SANITATION DISTRICT ESTABLISHING
THE ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEAR
2021-22 FOR THE SANITATION DISTRICT IN
ACCORDANCE WITH THE PROVISIONS OF DIVISION 9
OF TITLE 1 OF THE CALIFORNIA GOVERNMENT CODE
WHEREAS, Article XIII B of the Constitution of the State of California as
proposed by the Initiative Measure approved by the people at the special statewide
election held on November 6, 1979, provides that the total annual appropriations limit of
each local government agency shall not exceed the appropriations limit of such entity for
the prior year, adjusted for changes in the cost of living and population, except as
otherwise specifically provided for in said Article; and,
WHEREAS, the State Legislature added Division 9 (commencing with Section
7900) to Title 1 of the Government Code of the State of California to implement Article
XIII B of the California Constitution; and,
WHEREAS, Section 7910 of the Government Code provides that each year the
governing body of each local jurisdiction shall, by resolution, establish its appropriations
limit for the following fiscal year pursuant to Article XIII B at a regularly-scheduled meeting
or a noticed special meeting and that fifteen (15) days prior to such meeting,
documentation used in the determination of the appropriations limit shall be available to
the public; and,
WHEREAS, Section 7902 (a) of the Government Code sets forth the method for
determining the appropriations limit for each local jurisdiction for the 2021-22 fiscal year;
and,
WHEREAS, the Board of Directors wishes to establish the appropriations limit
for fiscal year 2021-22 for the Sanitation District.
NOW, THEREFORE, the Board of Directors of the Orange County Sanitation
District DOES HEREBY RESOLVE, DETERMINE AND ORDER:
Section 1: That it is hereby found and determined that the documentation used
in the determination of the appropriations limit for the Orange County Sanitation District,
for fiscal year 2021-22, was available to the public in the Finance Department of said
Sanitation District at least fifteen (15) days prior to this date.
OC SAN 21-XX-2
Section 2: That the appropriations limit for fiscal year 2021-22 for the Orange
County Sanitation District, as established in accordance with Section 7902(b) of the
California Government Code is $124,166,799. The budgeted appropriations from
proceeds of taxes is within this maximum authorized spending limitation for fiscal year
2021-22.
Section 3: That the Board of Directors of the Orange County Sanitation District,
has determined that the percent change in California per capita personal income from the
preceding year would be the cost of living factor to be used and the weighted average
population change of the cities within the Sanitation District would be the population
factor to be used in calculating the Orange County Sanitation District's appropriations
limit for the Fiscal Year 2021-22.
Section 4: The determination of the appropriation limit is based upon the best
and most complete information available at this time. The Sanitation District reserves
the right to review and re-establish a new and different limit in the event that it
subsequently determines that a modification of the limitation amount is appropriate.
PASSED AND ADOPTED at a regular meeting of the Board of Directors held
June 23, 2021.
David John Shawver
Board Chairman
ATTEST:
Kelly A. Lore, MMC
Clerk of the Board
OC SAN 21-XX-3
STATE OF CALIFORNIA )
) ss
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation
District, do hereby certify that the foregoing Resolution No. OC SAN 21-XX was passed
and adopted at a regular meeting of said Board on the 23rd day of June 2021,
by the following vote, to wit:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal
of Orange County Sanitation District this 23rd day of June 2021.
Kelly A. Lore, MMC
Clerk of the Board of Directors
Orange County Sanitation District
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1665 Agenda Date:6/9/2021 Agenda Item No:4.
FROM:James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
COMPLETE ELECTRICAL DATA MANAGEMENT SOLUTION
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
A. Award a Professional Services Agreement to AVO Multi-Amp Corporation dba Megger to
provide Electrical Data Management Services, Specification No. CS-2021-1039BD-R, for a
total amount not to exceed $212,255; and
B. Approve a contingency of $31,838 (15%).
BACKGROUND
The Orange County Sanitation District (OC San)desires to implement a complete solution for
Electrical Testing Data Management.The solution will be used for the collection,organization,
trending,and reporting of electrical data from maintenance,condition-based monitoring,and
inspection activities.A competitive procurement via a Request for Proposal was conducted and is
described below.
RELEVANT STANDARDS
·Ensure the public’s money is wisely spent
·Maintain a culture of improving efficiency to reduce the cost to provide the current service level
or standard
·Protect OC San assets
·Maintain a proactive asset management program
PROBLEM
OC San’s current electrical testing documentation,archiving,and data collecting is compiled
manually by several work groups,resulting in inconsistent record keeping.Additionally,OC San’s
current systems do not have capability for analysis of collected data for asset management
optimization or establishing standardized electrical testing data processes.These deficiencies lead
to operational and regulatory compliance risks and inefficient use of labor.
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File #:2021-1665 Agenda Date:6/9/2021 Agenda Item No:4.
PROPOSED SOLUTION
Procure and implement the software and hardware solutions from Avo Multi-Amp Corp.to automate
the electrical testing process and establish a standard methodology for routing,testing,and trending
electrical assets at Plant No. 1, Plant No. 2, and Pump Stations.
RAMIFICATIONS OF NOT TAKING ACTION
OC San will be unable to verify electrical testing results and will fail to protect OC San assets.
ADDITIONAL INFORMATION
On February 24,2021,OC San issued a Request for Proposal (RFP)for a Field Electrical Testing
Solution.The following evaluation criterion were described in the RFP and used to determine the
most qualified firm.
CRITERION WEIGHT
1. Qualifications & Experience of Firm 40%
2. Proposed Staffing & Project Organization 20%
3. Work Plan 20%
4. Cost 20%
The RFP closed on March 31,2021.OC San received responses from three vendors.The RFP
evaluation team consisted of three Maintenance Supervisors,a Principal Info Tech Analyst,and a
Senior Engineer.This RFP used the individual scoring method.The evaluation team first reviewed
and scored the proposals based upon the criteria listed above.
Rank Proposer Criterion 1
(Max 40%)
Criterion 2 (Max
20%)
Criterion 3 (Max
20%)
Subtotal Score
(Max 80%)
1 Avo Multi-Amp Corp
dba Megger
38%19%18%75%
2 James E. Hughes 24%13%13%50%
3 The RoviSys Company 18%8%10%36%
All proposals were accompanied by a sealed cost proposal.Only the cost proposal for the highest
ranked firm was opened.
Rank Proposer Subtotal Score
without cost
(Max 80%)
Cost (Max 20%)Total Weighted
Score (Max
100%)
1 Avo Multi-Amp Corp
dba Megger
76%20%96%
2 James E. Hughes 50%4%54%
3 The RoviSys
Company
37%4%41%
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File #:2021-1665 Agenda Date:6/9/2021 Agenda Item No:4.
Based on these results,staff recommends awarding the Agreement to Avo Multi-Amp Corporation
dba Megger.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San’s Purchasing Ordinance.This item has been
budgeted in the FY2020-21 &2021-22 Budget,EAM Software &Process Implementation SP-100
(Section 8, Page 83).
Date of Approval Contract Amount Contingency
06/23/2021 $212,255 $31,838 (15%)
ATTACHMENT
The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda
package:
·Draft Professional Services Agreement
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Orange County Sanitation District 1 of 12 Specification No. CS-2021-1039BD-R
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PROFESSIONAL SERVICES AGREEMENT
ELECTRICAL DISTRIBUTION SYSTEM TEST
DATA MANAGEMENT SOFTWARE REBID
Specification No. CS-2021-1039BD-R
THIS AGREEMENT is made and entered into as of the date fully executed below, by and between
Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue, Fountain
Valley, CA 92708 (hereinafter referred to as "OC San") and [___________] with a principal business
at [__________________________] (hereinafter referred to as "Consultant") collectively referred to
as the "Parties".
W I T N E S S E T H
WHEREAS, based on Consultant's expertise and experience, OC San desires to temporarily engage
Consultant to provide electrical distribution system test data management software “Services” as
described in Exhibit "A"; and
WHEREAS, Consultant submitted its Proposal, dated [_______________]; and
WHEREAS, OC San has chosen Consultant to conduct Services in accordance with Ordinance No.
OCSD-52; and
WHEREAS, on [____________________], the [Administration Committee] Board of Directors of OC
San, by minute order, authorized execution of this Agreement between OC San and Consultant.
NOW, THEREFORE, in consideration of the mutual promises and mutual benefits exchanged
between the Parties, the Parties mutually agree as follows:
1. Introduction
1.1 This Agreement and all exhibits hereto (called the "Agreement") is made by OC San and
Consultant. The terms and conditions herein exclusively govern the purchase of Services as
described in Exhibit “A”.
1.2 Exhibits to this Agreement are incorporated by reference and made a part of this Agreement
as though fully set forth at length herein.
Exhibit “A” Scope of Work
Exhibit “B” Proposal
Exhibit “C” Determined Insurance Requirement Form
Exhibit “D” Contractor Safety Standards
Exhibit “E” Human Resources Policies
1.3 In the event of any conflict or inconsistency between the provisions of this Agreement and any
of the provisions of the exhibits hereto, the provisions of this Agreement shall in all respects
govern and control.
1.4 This Agreement may not be modified, changed or supplemented, nor may any obligations
hereunder be waived or extensions of time for performance granted, except by written
instrument signed by both Parties.
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1.5 The various headings in this Agreement are inserted for convenience only and shall not affect
the meaning or interpretation of this Agreement or any section or provision hereof.
1.6 The term "workday". Workdays are defined as all days that are not Saturday, Sunday, or OC
San observed holidays. Meetings with OC San staff shall be scheduled from Monday through
Thursday between the hours of 8 a.m. and 4 p.m. (exception is operations staff who maintain
plant Operations 24/7 and work a rotated 12-hour shift) and shall conform to OC San work
schedules. OC San review periods shall not include OC San observed holidays.
1.7 OC San holidays (non-working days) are as follows: New Year’s Day, Lincoln’s Birthday,
Presidents’ Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving
Day, Day after Thanksgiving, Christmas Eve, and Christmas Day.
1.8 The term "days", when used in the Agreement, shall mean calendar days, unless otherwise
noted as workdays.
1.9 Work Hours:
1.9.1 The work required under this Agreement may include normal business hours, evenings, and
weekends. OC San will not pay for travel time.
1.9.2 All work with OC San staff shall be scheduled Monday through Thursday, between the hours
of 7:30 a.m. and 3:30 p.m.
1.10 Consultant shall provide OC San with all required premiums and/or overtime work at no charge
beyond the price provided under "Compensation" below.
1.11 Except as expressly provided otherwise, OC San accepts no liability for any expenses, losses,
or action incurred or undertaken by Consultant as a result of work performed in anticipation of
purchases of said Services by OC San.
1.12 Goods and Services, whether stated separately or in conjunction with each other, shall mean
electrical distribution system test data management software and the Services related to the
provision of such as described in Exhibit "A".
1.13 Construction of Agreement. This Agreement is the product of joint discussions and negotiations
at arms’ length between the Parties, both of whom are sophisticated and knowledgeable in
business matters and both of whom have relied on the advice of independent legal counsel.
Any rule of law which would require interpretation of this Agreement against the party that
drafted it shall have no application to this Agreement.
2. Miscellaneous
2.1 Access to Premises. OC San shall provide Consultant with reasonable and timely access to
the sites and personnel necessary for Consultant to perform its obligations under this
Agreement. OC San shall allow Consultant personnel reasonable access to OC San site and
facilities (telephone, parking, etc.) during normal business hours and at other reasonable times
as requested by Consultant and pre-approved by OC San. The assistance or presence of OC
San’s personnel will not relieve Consultant of any responsibilities under this Agreement.
2.2 Amendments. No amendment or modification to this Agreement is valid unless it is contained
in a writing signed by both Parties.
Orange County Sanitation District 3 of 12 Specification No. CS-2021-1039BD-R
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2.3 Approvals in Writing. All approvals or consents required or contemplated by this Agreement
must be in writing to be effective.
2.4 Background Checks and Removal of Personnel. Prior to being allowed to perform any work on
this project, all non-OC San personnel assigned to the project may be required to submit to
and pass a background check by the Fountain Valley, California Police Department. In addition,
OC San shall have the sole and exclusive right to require Consultant to immediately remove
any individual from the project for any reason deemed to be in the best interest of OC San.
Consultant shall replace any employee removed from the project within ten (10) business days
of said removal.
2.5 Compliance with Work Rules. Consultant will ensure that, while it is on OC San premises,
Consultant’s personnel and its subconsultant(s) will comply with OC San’s working rules and
policies, including OC San’s security procedures.
2.6 Successors and Assigns. This Agreement is binding on and inures to the benefit of the Parties
and their respective successors and assigns.
2.7 Advertising. Consultant shall not refer to the existence of this Agreement in any press release,
advertising or materials distributed to prospective customers without the prior written consent
of OC San.
3. Scope of Work General requirements for the work of this project are listed below. A detailed
list of tasks and responsibilities are included in Exhibit “A”.
3.1 Subject to the terms of this Agreement, Consultant shall perform the Services identified in
Exhibit “A”. Consultant warrants that all of its Services shall be performed in a competent,
professional and satisfactory manner.
3.2 Modifications to Equipment and Facilities. OC San shall be responsible for making OC San-
approved modifications identified in an OC San-approved, site analysis report. Thereafter,
Consultant will be precluded from asserting that it is unable to perform its obligations under this
Agreement because of any pre-existing condition. During implementation, any changes to the
system or any costs that may be incurred in order to complete the requirements of this
Agreement, but were not identified in the site analysis report, will be the sole and exclusive
responsibility of Consultant. In addition, if the system is unable to meet the functional,
performance and reliability specifications and requirements in this Agreement after the
identified upgrades and changes have been made, then Consultant will be responsible, at its
own expense, for making any further upgrades or changes necessary to achieve this result.
3.3 User Qualifications. OC San shall use its best efforts to ensure that persons operating the
system will be qualified, supervised, and trained in the use of personal computers and normal
operations. Consultant will ensure that all training on the system or system components will be
conducted professionally and effectively so that each operator trained by Consultant is
proficient in its use.
3.4 Transition. Consultant will work with OC San to ensure a smooth and efficient transition from
OC San’s current systems to the new system and to minimize disruption to current operations,
even if it necessitates working late evening, early morning, or weekend hours. Any required
disruptions to OC San’s operations shall be scheduled in advance and approved by OC San.
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4. Compensation Compensation to be paid by OC San to Consultant for the Services provided
under this Agreement shall be a total not to exceed amount of [________________________]
Dollars ($[__________].00).
5. Payment
5.1 OC San shall pay, net thirty (30) days, upon receipt and approval, by OC San’s Project
Manager or designee, of itemized invoices submitted for Milestones completed in accordance
with Exhibit “A”.
5.2 Milestones shall be paid in the following percentages of the total not to exceed amount of the
Agreement as follows:
Milestone No. 1, ten percent (10%)
Milestone No. 2, forty percent (40%)
Milestone No. 3, ten percent (10%)
Milestone No. 4, ten percent (10%)
Milestone No. 5, twenty percent (20%)
Milestone No. 6, ten percent (10%)
5.3 OC San, at its sole discretion, shall be the determining party as to whether the tasks and
deliverables for each Milestone have been satisfactorily completed.
6. Invoices
6.1 OC San shall pay within thirty (30) days of completion and receipt and approval by OC San’s
Project Manager or designee of an itemized invoice, in a form acceptable to OC San to enable
audit of the charges thereon.
6.2 Invoices shall be emailed by Consultant to OC San at APStaff@OCSD.com. Specification No.
CS-2021-1039BD-R and Purchase Order number shall both be referenced in the subject line.
7. Audit Rights Consultant agrees that, during the term of this Agreement and for a period of
three (3) years after its termination, OC San shall have access to and the right to examine any
directly pertinent books, documents, and records of Consultant relating to the invoices
submitted by Consultant pursuant to this Agreement.
8. Performance Time is of the essence in the performance of the provisions hereof.
9. Term
9.1 The Services provided under this Agreement shall be completed within one hundred eighty
(180) calendar days from the effective date of the Notice to Proceed.
9.2 Effect on Project Schedule. The time periods and requirements set forth in Exhibit “A”, will not
excuse Consultant from complying with the completion date set forth in this Agreement.
10. Termination
10.1 OC San reserves the right to terminate this Agreement for its convenience, with or without
cause, in whole or in part, at any time, by written notice from OC San. Upon receipt of a
termination notice, Consultant shall immediately discontinue all work under this Agreement
(unless the notice directs otherwise). OC San shall thereafter, within thirty (30) days, pay
Consultant for work performed (cost and fee) to the date of termination. Consultant expressly
waives any claim to
Orange County Sanitation District 5 of 12 Specification No. CS-2021-1039BD-R
080919
receive anticipated profits to be earned during the uncompleted portion of this Agreement. Such
notice of termination shall terminate this Agreement and release OC San from any further fee,
cost or claim hereunder by Consultant other than for work performed to the date of termination.
10.2 OC San reserves the right to terminate this Agreement immediately upon OC San's determination
that Consultant is not meeting the requirements, if the level of service is inadequate, or any
other default of this Agreement.
10.3 OC San may also immediately cancel for default of this Agreement in whole or in part by written
notice to Consultant:
• if Consultant becomes insolvent or files a petition under the Bankruptcy Act; or
• if Consultant sells its business; or
• if Consultant breaches any of the terms of this Agreement; or
• if total amount of compensation exceeds the amount authorized under this
Agreement.
10.4 All OC San property in the possession or control of Consultant shall be returned by Consultant
to OC San on demand, or at the termination of this Agreement, whichever occurs first. In
addition, Consultant will deliver to OC San all work product currently in existence and for which
payment has been made.
11. Indemnification and Hold Harmless Provision Consultant shall assume all responsibility for
damages to property and/or injuries to persons, including accidental death, which may arise
out of or be caused by Consultant's services under this Agreement, or by its subconsultant(s)
or by anyone directly or indirectly employed by Consultant, and whether such damage or injury
shall accrue or be discovered before or after the termination of the Agreement. Except as to
the sole active negligence of or willful misconduct of OC San, Consultant shall indemnify,
protect, defend and hold harmless OC San, its elected and appointed officials, officers, agents
and employees, from and against any and all claims, liabilities, damages or expenses of any
nature, including attorneys' fees: (a) for injury to or death of any person or damage to property
or interference with the use of property, arising out of or in connection with Consultant's
performance under the Agreement, and/or (b) on account of use of any copyrighted or
uncopyrighted material, composition, or process, or any patented or unpatented invention,
article or appliance, furnished or used under the Agreement, and/or (c) on account of any goods
and services provided under this Agreement. This indemnification provision shall apply to any
acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on
the part of Consultant of or anyone employed by or working under Consultant. To the maximum
extent permitted by law, Consultant's duty to defend shall apply whether or not such claims,
allegations, lawsuits, or proceedings have merit or are meritless, or which involve claims or
allegations that any of the parties to be defended were actively, passively, or concurrently
negligent, or which otherwise assert that the parties to be defended are responsible, in whole
or in part, for any loss, damage, or injury. Consultant agrees to provide this defense
immediately upon written notice from OC San, and with well qualified, adequately insured, and
experienced legal counsel acceptable to OC San. This section shall survive the expiration or
early termination of the Agreement. 12. Force Majeure Neither party shall be liable for delays caused by accident, flood, acts of
God, fire, labor trouble, war, acts of government or any other cause beyond its control, but said
party shall use reasonable efforts to minimize the extent of the delay. Work affected by a Force
Majeure condition may be rescheduled by mutual consent or may be eliminated from the
Agreement.
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13. Insurance Consultant and all subconsultant(s) shall purchase and maintain, throughout the
life of this Agreement and any periods of warranty or extensions, insurance in amounts equal
to the requirements set forth in Exhibit “C” Determined Insurance Requirement Form.
Consultant shall not commence work under this Agreement until all required insurance is
obtained in a form acceptable to OC San, nor shall Consultant allow any subconsultant to
commence service pursuant to a subcontract until all insurance required of the subconsultant
has been obtained. Failure to maintain required insurance coverage shall result in termination
of this Agreement.
14. Key Personnel Personnel, as provided in Exhibit “B”, are considered “key” to the work under
this Agreement and will be available for the term of the Agreement. No person designated as
key under this Agreement shall be removed or replaced without prior written consent of OC
San. If OC San asks Consultant to remove a person designated as key under this Agreement,
Consultant agrees to do so immediately regardless of the reason, or the lack of reason, for OC
San's request. Consultant shall assign only competent personnel to perform Services pursuant
to this Agreement.
15. Confidentiality and Non-Disclosure
15.1 Consultant acknowledges that in performing the Services hereunder, OC San may have to
disclose to Consultant orally and in writing certain confidential information that OC San
considers proprietary and has developed at great expense and effort.
15.2 Consultant agrees to maintain in confidence and not disclose to any person, firm, or
corporation, without OC San's prior written consent, any trade secret or confidential
information, knowledge or data relating to the products, process, or operation of OC San.
15.3 Consultant further agrees to maintain in confidence and not to disclose to any person, firm, or
corporation any data, information, technology, or material developed or obtained by Consultant
during the term of this Agreement.
15.4 Consultant agrees as follows:
• To use the confidential information only for the purposes described herein; to not
reproduce the confidential information; to hold in confidence and protect the confidential
information from dissemination to and use by anyone not a party to this Agreement; and
to not use the confidential information to benefit itself or others.
• To restrict access to the confidential information to its subconsultants or personnel of
subconsultants who (1) have a need to have such access and (2) have been advised of
and have agreed in writing to treat such information in accordance with the terms of this
Agreement.
• To return all confidential information in Consultant's possession upon termination of this
Agreement or upon OC San's request, whichever occurs first.
• To hold in confidence information and materials, if any, developed pursuant to the
Services hereunder.
15.5 The provisions of this section shall survive termination or expiration of this Agreement and shall
continue for so long as the material remains confidential.
16. Ownership of Documents All drawings, specifications, reports, records, documents,
memoranda, correspondence, computations, and other materials prepared by Consultant, its
employees, subconsultants, and agents in the performance of this Agreement shall be the
property of OC San and shall be promptly delivered to OC San upon request of the Project
Orange County Sanitation District 7 of 12 Specification No. CS-2021-1039BD-R
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Manager or upon the termination of this Agreement, and Consultant shall have no claim for
further employment or additional compensation as a result of the exercise by OC San of its full
rights of ownership of the documents and materials hereunder. Any use of such completed
documents for other projects and/or use of incomplete documents without specific written
authorization by the Consultant will be at OC San's sole risk and without liability to Consultant.
Consultant shall ensure that all its subconsultants shall provide for assignment to OC San of
any documents or materials prepared by them.
17. Ownership of Intellectual Property
17.1 Consultant agrees that all designs, plans, reports, specifications, drawings, schematics,
prototypes, models, inventions, and all other information and items made during the course of
this Agreement and arising from the Services (hereinafter referred to as "New Developments")
shall be and are assigned to OC San as its sole and exclusive property.
17.2 Consultant agrees to promptly disclose to OC San all such New Developments. Upon OC San's
request, Consultant agrees to assist OC San, at OC San's expense, to obtain patents or
copyrights for such New Developments, including the disclosure of all pertinent information and
data with respect thereto, the execution of all applications, specifications, assignments, and all
other instruments and papers which OC San shall deem necessary to apply for and to assign
or convey to OC San, its successors and assigns, the sole and exclusive right, title and interest
in such New Developments. Consultant agrees to obtain or has obtained written assurances
from its employees and contract personnel of their agreement to the terms hereof with regard
to New Developments and confidential information.
17.3 Consultant warrants that Consultant has good title to any New Developments, and the right to
assign New Developments to OC San free of any proprietary rights of any other party or any
other encumbrance whatever.
17.4 The originals of all computations, drawings, designs, graphics, studies, reports, manuals,
photographs, videotapes, data, computer files, and other documents prepared or caused to be
prepared by Consultant or its subconsultants in connection with these Services shall be
delivered to and shall become the exclusive property of OC San. OC San may utilize these
documents for OC San applications on other projects or extensions of this project, at its own
risk.
18. Infringement Claims If an infringement claim occurs, Consultant has thirty (30) days after the
receipt of OC San’s written notice of the claim or the date on which Consultant first becomes
aware of the claim, whichever is sooner, to either: (a) procure for OC San the right to continue
using the affected product, service, subsystem, component or interface and deliver or provide
the product, service, subsystem, component, or interface to OC San; or (b) repair or replace
the infringing product, service, subsystem, component, or interface so that it becomes non-
infringing, provided the performance of the system or any subsystems, components, or
interfaces is not adversely affected by the replacement or modification. In the event Consultant
is unable to comply with either subsection (a) or (b) of this paragraph within thirty (30) days,
OC San may terminate this Agreement without any further obligation to Consultant. In the event
of termination, in addition to any other legal remedies available to OC San, Consultant will
refund OC San within ten (10) days of OC San’s notice of termination, the license fees OC San
paid to Consultant for the product, service, subsystem, component or interface. If the inability
to comply with either subsection (a) or (b) of this paragraph causes the system to fail to meet
the functional, performance and reliability specifications and requirements or to otherwise
become ineffective, Consultant will refund OC San all fees paid to Consultant under this
Agreement.
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19. No Solicitation of Employees or Subcontractors
19.1 Consultant agrees that it shall not, during the term of this Agreement and for a period of one
(1) year immediately following termination of this Agreement, or any extension hereof, call on,
solicit, or take away any of the employees or subcontractors about whom Consultant became
aware as a result of Consultant's Services to OC San.
19.2 Consultant acknowledges that OC San's employees are critical to its business. Consultant
agrees not to employ or otherwise engage OC San's employees or subcontractors during the
term of this Agreement and for a period of one (1) year following termination of this Agreement.
Should Consultant violate this provision, Consultant will pay OC San fifty percent (50%) of the
former employee’s most recent annual salary earned at OC San to accurately reflect the
reasonable value of OC San’s time and costs. This payment is in addition to any other rights
and remedies OC San may have at law.
20. Independent Contractor Capacity
20.1 The relationship of Consultant to OC San is that of an independent contractor and nothing
herein shall be construed as creating an employment or agency relationship.
20.2 Consultant shall act independently and not as an officer or employee of OC San. OC San
assumes no liability for Consultant's action and performance, nor assumes responsibility for
taxes, funds, payments or other commitments, implied or expressed, by or for Consultant.
20.3 Consultant shall not be considered an agent of OC San for any purpose whatsoever, nor shall
Consultant have the right to, and shall not, commit OC San to any agreement, contract or
undertaking. Consultant shall not use OC San's name in its promotional material or for any
advertising or publicity purposes without expressed written consent.
20.4 Consultant shall not be entitled to any benefits accorded to those individuals listed on OC San's
payroll as regular employees including, without limitation, worker's compensation, disability
insurance, vacation, holiday or sick pay. Consultant shall be responsible for providing, at
Consultant's expense, disability, workers’ compensation or other insurance as well as licenses
and permits usual or necessary for conducting the Services hereunder.
20.5 Consultant shall be obligated to pay any and all applicable Federal, State, and local, payroll
and other taxes incurred as a result of fees hereunder. Consultant hereby indemnifies OC San
for any claims, losses, costs, fees, liabilities, damages or penalties suffered by OC San arising
out of Consultant's breach of this provision.
20.6 Consultant shall not be eligible to join or participate in any benefit plans offered to those
individuals listed on OC San's payroll as regular employees. Consultant shall remain ineligible
for such benefits or participation in such benefit plans even if a court later decides that OC San
misclassified Consultant for tax purposes.
21. Licenses and Permits Consultant represents and warrants to OC San that it has obtained all
licenses, permits, qualifications and approvals of whatever nature that are legally required to
engage in this work. Any and all fees required by Federal, State, County, City and/or municipal
laws, codes and/or tariffs that pertain to work performed under the terms of this Agreement will
be paid by Consultant.
22. Governing Law This Agreement shall be governed by and interpreted under the laws of the
State of California and the Parties submit to jurisdiction in Orange County, in the event any
action is brought in connection with this Agreement or the performance thereof.
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23. Environmental Compliance Consultant shall, at its own cost and expense, comply with all
Federal, State, and local environmental laws, regulations, and policies which apply to the
Consultant, its subconsultants, and the Services, including, but not limited to, all applicable
Federal, State, and local air pollution control laws and regulations.
24. Applicable Laws and Regulations Consultant shall comply with all applicable Federal, State,
and local laws, rules, and regulations. Consultant also agrees to indemnify and hold harmless
from any and all damages and liabilities assessed against OC San as a result of Consultant's
noncompliance therewith. Any permission required by law to be included herein shall be
deemed included as a part of this Agreement whether or not specifically referenced.
25. Consultant's Representations In the performance of duties under this Agreement,
Consultant shall adhere to the highest fiduciary standards, ethical practices and standards of
care and competence for its trade/profession.
26. Familiarity with Work By executing this Agreement, Consultant warrants that: 1) it has
investigated the work to be performed; and 2) it understands the facilities, difficulties and
restrictions of the work under this Agreement. Should Consultant discover any latent or
unknown conditions materially differing from those inherent in the work or as represented by
OC San, it shall immediately inform OC San of this and shall not proceed, except at
Consultant's risk, until written instructions are received from OC San.
27. Dispute Resolution
27.1 In the event of a dispute as to the construction or interpretation of this Agreement, or any rights
or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by
mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute.
If the Parties are unable to agree on a mediator, the mediation shall be conducted in
accordance with the Commercial Mediation Rules of the American Arbitration Agreement,
through the alternate dispute resolution procedures of Judicial Arbitration through Mediation
Services of Orange County ("JAMS"), or any similar organization or entity conducting an
alternate dispute resolution process.
27.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues
in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part
3, Title 9, Sections 1280 et seq. For such purpose, an agreed arbitrator shall be selected, or in
the absence of agreement, each party shall select an arbitrator, and those two (2) arbitrators
shall select a third. Discovery may be conducted in connection with the arbitration proceeding
pursuant to California Code of Civil Procedure Section 1283.05. The arbitrator, or three (3)
arbitrators acting as a board, shall take such evidence and make such investigation as deemed
appropriate and shall render a written decision on the matter in question. The arbitrator shall
decide each and every dispute in accordance with the laws of the State of California. The
arbitrator's decision and award shall be subject to review for errors of fact or law in the Superior
Court for the County of Orange, with a right of appeal from any judgment issued therein.
28. Attorney's Fees If any action at law or inequity or if any proceeding in the form of an
Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this
Agreement, the prevailing party shall be entitled to reasonable, attorney's fees, costs and
necessary disbursements in addition to any other relief to which it may be entitled.
29. Waiver The waiver of either party of any breach or violation of, or default under, any provision
of this Agreement, shall not be deemed a continuing waiver by such party of any other provision
or of any subsequent breach or violation of this Agreement or default thereunder. Any breach
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by Consultant to which OC San does not object shall not operate as a waiver of OC San’s
rights to seek remedies available to it for any subsequent breach.
30. Survival All provisions of this Agreement that by their nature would reasonably be expected
to continue after the termination of this Agreement will survive the termination of this
Agreement.
31. Right to Review Services, Facilities, and Records
31.1 OC San reserves the right to review any portion of the Services performed by Consultant under
this Agreement, and Consultant agrees to cooperate to the fullest extent possible.
31.2 Consultant shall furnish to OC San such reports, statistical data, and other information
pertaining to Consultant's Services as shall be reasonably required by OC San to carry out its
rights and responsibilities under its agreements with its bondholders or noteholders and any
other agreement relating to the development of the project(s) and in connection with the
issuance of its official statements and other prospectuses with respect to the offering, sale, and
issuance of its bonds and other obligations.
31.3 The right of OC San to review or approve drawings, specifications, procedures,
instructions, reports, test results, calculations, schedules, or other data that are developed by
Consultant shall not relieve Consultant of any obligation set forth herein.
32. Severability If any section, subsection, or provision of this Agreement, or any agreement or
instrument contemplated hereby, or the application of such section, subsection, or provision is
held invalid, the remainder of this Agreement or instrument in the application of such section,
subsection or provision to persons or circumstances other than those to which it is held invalid,
shall not be affected thereby, unless the effect of such invalidity shall be to substantially
frustrate the expectations of the Parties.
33. Contractor Safety Standards OC San requires Consultant and its subconsultants to follow
and ensure their employees follow all Federal, State, and local regulations as well as
Contractor Safety Standards while working at OC San locations. If during the course of the
Agreement it is discovered that Contractor Safety Standards do not comply with Federal, State,
or local regulations, then the Consultant is required to follow the most stringent regulatory
requirement at no additional cost to OC San. Consultant and all of its employees and
subconsultants, shall adhere to all applicable Contractor Safety Standards attached hereto in
Exhibit “D” as well as the Human Resources Policies in Exhibit “E”.
34. Damage to OC San's Property Any OC San property damaged by Consultant will be subject
to repair or replacement by Consultant at no cost to OC San.
35. Freight (F.O.B. Destination) Consultant assumes full responsibility for all transportation,
transportation scheduling, packing, handling, insurance, and other services associated with
delivery of all products deemed necessary under this Agreement.
36. Assignments Consultant shall not delegate any duties nor assign any rights under this
Agreement without the prior written consent of OC San. Any such attempted delegation or
assignment shall be void.
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37. Changes in Control of Consultant In the event of a change in control of Consultant, OC San
shall have the option of terminating this Agreement by written notice to Consultant. Consultant
shall notify OC San within ten (10) days of the occurrence of a change in control. As used in
this section, “control” is defined as the possession, direct or indirect, of either:
• the ownership or ability to direct the voting of fifty-one percent (51%) or more of the
equity interests, value, or voting power in Consultant; or
• the power to direct or cause the direction of the management and policies of Consultant,
whether through ownership of voting securities, by contract, or otherwise.
38. Third Party Rights Nothing in this Agreement shall be construed to give any rights or benefits
to anyone other than OC San and Consultant.
39. Non-Liability of OC San Officers and Employees No officer or employee of OC San shall
be personally liable to Consultant, or any successor-in-interest, in the event of any default or
breach by OC San or for any amount which may become due to Consultant or to its successor,
or for breach of any obligation of the terms of this Agreement.
40. Conflict of Interest and Reporting
40.1 Consultant shall at all times avoid conflict of interest or appearance of conflict of interest in
performance of this Agreement.
40.2 Consultant affirms that to the best of its knowledge there exists no actual or potential conflict
between Consultant's families, business or financial interest or its Services under this
Agreement, and in the event of change in either its private interests or Services under this
Agreement, it will raise with OC San any question regarding possible conflict of interest which
may arise as a result of such change.
41. Authority to Execute The persons executing this Agreement on behalf of the Parties warrant
that they are duly authorized to execute this Agreement and that by executing this Agreement,
the Parties are formally bound.
42. Read and Understood By signing this Agreement, Consultant represents that it has read and
understood the terms and conditions of the Agreement.
43. Entire Agreement This Agreement constitutes the entire agreement of the Parties and
supersedes all prior written or oral and all contemporaneous oral agreements, understandings,
and negotiations between the Parties with respect to the subject matter hereof.
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44. Notices All notices under this Agreement must be in writing. Written notice shall be delivered
by personal service or sent by registered or certified mail, postage prepaid, return receipt
requested, or by any other overnight delivery service which delivers to the noticed destination
and provides proof of delivery to the sender. Any facsimile notice must be followed within three
(3) days by written notice. Rejection or other refusal to accept or the inability to deliver because
of changed address or which no notice was given as provided hereunder shall be deemed to
be receipt of the notice, demand or request sent. All notices shall be effective when first
received at the following addresses:
OC San: Jackie Lagade
Principal Buyer
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, CA 92708
Consultant: [Contact Name]
[Contact Title]
[Company Name]
[Street Address]
[City, State, Zip Code]
IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this
Agreement to be signed by the duly authorized representatives.
ORANGE COUNTY SANITATION DISTRICT
Dated: _________________ By: ___________________________________
David John Shawver
[Chair, Board of Directors]
[Stacy Berry, Chair, Administration Committee]
Dated: _________________ By: ___________________________________
Kelly A. Lore
Clerk of the Board
Dated: _________________ By: ___________________________________
Ruth Zintzun
Purchasing & Contracts Manager
[COMPANY]
Dated: _________________ By: ___________________________________
______________________________________
Print Name and Title of Officer
EXHIBIT A Specification No. CS-2021-1039BD-R
Exhibit A
SCOPE OF WORK
For
Electrical Distribution System Test Data Management Software (Rebid)
EXHIBIT A Page 1 of 7 CS-2021-1039BD-R
EXHIBIT A
SCOPE OF WORK
ELECTRICAL DISTRIBUTION SYSTEM TEST DATA MANAGEMENT SOFTWARE (REBID)
SPECIFICATION NO. CS-2021-1039BD-R
EXECUTIVE SUMMARY/OVERVIEW
The Orange County Sanitation District (OC San) operates the third largest wastewater agency
west of the Mississippi River. Since 1954, OC San has safely collected, treated, and disposed of
and/or reclaimed the wastewater generated by 2.6 million people living and working in central
and northwestern Orange County, California.
Each day OC San treats approximately 185 million gallons of wastewater. About 80 percent of
the wastewater comes from homes – sinks, toilets, showers, laundry, and dishwashers. The
remaining comes from businesses – retail stores, restaurants, manufacturers, hotels, offices,
and other industries.
A professional staff of more than 600 employees manages the day-to-day activities of OC San.
OC San’s facilities include 587 miles of sewer pipes, located throughout the county, and 2
treatment plants – one in Fountain Valley, CA and the other in Huntington Beach, CA – where
wastewater is treated in accordance with strict Federal, State, and local standards.
1 PURPOSE
The Orange County Sanitation District is seeking a qualified Consultant to implement an
Electrical Distribution System Test Data Management Software. The software is used for the
collection and reporting of data from maintenance and inspection activities performed on
equipment used in the generation, transmission, and distribution of electric power, in
accordance with various regulatory requirements and process systems sustainability.
2 SUMMARY OF DESCRIPTION OF GOODS/SERVICES TO BE PROVIDED (OVERVIEW)
The Software shall be capable of collecting and reporting data from maintenance and
inspection activities performed on equipment used in the generation, transmission, and
distribution of electric power in accordance with the requirements and recommendations as
specified in NFPA70B, Recommended Practice for Electrical Equipment Maintenance. The
product should also be capable of integrating with existing IBM Maximo Asset Management
system. The services provided by the Consultant include but are not limited to project
management, implementation, installation, configuration, integration, training, and
documentation.
The Consultant shall work with OC San staff and its consultant(s) in designing and
implementing the integration of the software with the existing Maximo Asset Management
software.
3 PROJECT MANAGEMENT
3.1 Consultant will provide project management Services for the duration of the project
phase and is responsible to attend all scheduled project meetings, develop and submit
weekly progress reports as outlined by the OC San Project Manager, and serve as the
single point of contact for project communications.
EXHIBIT A Page 2 of 7 CS-2021-1039BD-R
3.2 Consultant will maintain a weekly updated project schedule (including: project
milestones, estimated level of effort, and proposed resource requirements) within a
format approved by the OC San Project Manager and include this item in status
reports to OC San Project Manager or as otherwise directed by OC San. Service
provider will follow the processes/guidelines of the Project Management Body of
Knowledge (PMBOK) published by the Project Management Institute.
3.3 Project Management services include but are not limited to the following:
3.1.1 Assign a project manager dedicated directly to this project. A Project
Management Professional (PMP) certification is preferred.
3.1.2 Identify and provide a senior level associate familiar with the Scope of Work,
to be available to OC San during the duration of the Agreement to resolve
project team or implementation issues that cannot be resolved at the project
manager’s level of authority.
3.1.3 Identify and provide all “key” project members; “key” project members will not
be changed during the duration of the Agreement without written approval by
the OC San Project Manager.
3.1.4 Provide a formal Project Charter to be jointly developed by the Consultant and
OC San project team. OC San will have the final approval on the Project
Charter.
3.1.5 Prepare and submit a project communications plan to the OC San Project
Manager for approval, in a format consistent with PMBOK.
3.1.6 Prepare and submit a change management plan to the OC San Project
Manager for approval, in a format consistent with PMBOK.
3.1.7 Prepare and submit a project schedule and work breakdown structure for the
project and each project element to the OC San Project Manager for approval,
in a format consistent with PMBOK.
3.1.8 Prepare and submit weekly status reports to the OC San Project Manager for
approval, in a format consistent with PMBOK.
3.1.9 Prepare and submit a quality assurance plan to the OC San Project Manager
for approval, in a format consistent with PMBOK.
3.1.10 Project Kickoff Meeting – Within two (2) weeks of the effective date of the
Notice To Proceed (NTP), Consultant shall conduct a project kick-off meeting
with OC San staff to introduce key members of the Consultant ‘s team. The
discussion topics will be established by the OC San Project Manager and may
include, but not be limited to: OC San’s responsibilities, Consultant’s
responsibilities, project schedule, communication plan, and project
methodology for successful implementation.
3.1.11 Progress Meetings – The Consultant shall meet with OC San as required
throughout the duration of the Agreement. Weekly project management
meetings with the Consultant will be required. These meetings will be
conducted via conference call or WebEx.
3.1.12 OC San Coordination - OC San will coordinate with Consultant during all
phases of the project. Coordination will include but not be limited to the
following:
3.1.12.1 Assistance from OC San staff or subject matter experts as needed
to develop, test, and implement the software.
3.1.12.2 Other assistance as requested by Consultant and approved by the
OC San Project Manager to support the project efforts.
3.1.12.3 Access to OC San resources must be planned to ensure OC San
staff are able to accomplish their primary task assignments within
the organization. Consultant shall coordinate resource requests with
EXHIBIT A Page 3 of 7 CS-2021-1039BD-R
the OC San Project Manager at a minimum of two (2) weeks in
advance of the actual need. Resources are identified but not limited
to: OC San staff, OC San computer or network systems, OC San
hardware not related to Information Technology systems.
3.1.12.4 On-going coordination with OC San resources are to be managed
by the OC San Project Manager.
4 PROJECT SCOPE AND DELIVERABLES
4.1 MILESTONE 1 - Detail Requirements and Design – Consultant shall conduct a
detailed requirements analysis to clarify Consultant’s understanding of OC San’s
current procedure and process workflow. This includes interviews and meetings to
review, discuss and document business requirements, existing business rules, existing
business practices and the business process currently in effect at OC San. Consultant
will conduct meetings with applicable OC San staff and management, discuss and
review the results of the interview process and update OC San’s business rules,
business practices and workflow as may be necessary to adequately prepare for the
implementation process. Consultant will include in this process a detailed workflow
analysis and prepare flowcharts and diagrams as applicable and necessary for the
project. Consultant will work with OC San staff to determine the role base assignment.
All final business rules, business processes and workflow documented for planned use
in the project shall be prepared in written form including applicable flow charts and
subject to the OC San Project Manager’s approval prior to completion of the project.
Payment for Milestone No. 1 shall be ten percent (10%) of the not to exceed amount
of the Agreement. Payment for Milestone No. 1 is contingent upon the assigned OC
San Project Manager’s acceptance of the final version of the submittal. Payment for
Milestone No. 1 will include the following:
Milestone 1 Deliverables:
• Workflow diagrams and flowcharts
• Business practices and process
• Role based assignment
4.2 MILESTONE 2 - System Implementation, Configuration, and Integration –
Consultant shall work with OC San staff and its consultant(s) to implement the
selected software. The Software and Services provided shall include, but not be limited
to the following:
4.2.1 Includes interfaces for many common test instruments and allows for
automated testing and data acquisition, as well as imports from various file
formats.
4.2.2 Ability to document, track and trend electrical test data of our electrical assets.
4.2.3 Contain a test form library that includes forms for a wide variety of equipment
types from relays to batteries, transformers and more. The test forms shall
provide a user interface for both data entry and reporting and ability to
customize forms or create new forms. Forms shall also have the built-in
capability of communicating with many different electrical test instruments,
enabling automated data entry to speed up data handling and eliminate many
of the errors associated with manual keyboard entry.
4.2.4 Ability for each technician or user to work remotely, and then sync the collected
data to a central database repository.
EXHIBIT A Page 4 of 7 CS-2021-1039BD-R
4.2.5 Ability to efficiently organize Assets in the database that can be searched for by
their location, serial number or asset ID number.
4.2.6 Ability to query and trend data over time and provide analysis tools to help in
evaluating the condition of equipment or asset.
4.2.7 Ability to flag deteriorating equipment by automatically highlighting worsening
data trends.
4.2.8 Ability to store electrical test data in an orderly and easily retrievable electronic
format.
4.2.9 Ability to directly interface with existing test equipment in order to reduce
manual hand-written data entry.
4.2.10 Include a large library of pre-configured test forms for all existing equipment
and provide capability to customize the forms as needed.
4.2.11 Ability to automatically generate test reports.
4.2.12 Ability to integrate with existing IBM Maximo Asset Management System.
Integration should include but is not limited to information regarding Assets,
Locations, Preventive Maintenance, and Work orders.
4.2.13 Ability to interface with SQL Server database as the central database
repository. Field databases could either be SQL Server Lite or Microsoft
Access.
4.2.14 Support up to a minimum of 35 user accounts and multiple facilities.
4.2.15 Support Electrical Asset inventory of a minimum of 5000 assets.
4.2.16 Vendor must convert existing paper test forms used by OC San’s electrical staff
to electronic forms that could be used in the software system.
4.2.17 Vendor must provide support for installation and configuration of the product.
4.2.18 Vendor must provide support for integration of the product with existing
systems like Maximo.
4.2.19 Vendor must provide end user training for 32 users and system administration
training for 3 users.
4.2.20 Vendor must provide project management services for implementation of the
software system.
4.2.21 Vendor must work with OC San staff and their Maximo consultant TRM (Total
Resource Management) to design and implement integration of their software
system with Maximo.
Payment for Milestone No. 2 shall be forty percent (40%) of the not to exceed amount
of the Agreement. Payment for Milestone No. 2 is contingent upon the assigned OC
San Project Manager’s acceptance of the final version of the submittal. Payment for
Milestone No. 2 will include the following:
Milestone 2 Deliverables:
• An Electrical Test and Management system that is integrated with the existing IBM
Maximo Asset Management System that delivers all functions listed above to
enhance the safe execution of maintenance and operations related work.
• Convert 25 existing paper test forms into the new system.
4.3 MILESTONE 3 - Training – Consultant shall develop training material and provide
training to thirty-five (35) OC San Staff. All training material shall be reviewed and
approved by the OC San Project Manager prior to the start of the training class.
Training shall be role based and be held on OC San’s property using OC San Training
environment with OC San specific data. Consultant will develop all role base training
and reference materials for OC San staff for review and approval prior to training
sessions. The Consultant will develop and conduct training based on, but not limited
to, the following roles:
4.3.1 System Administrator
EXHIBIT A Page 5 of 7 CS-2021-1039BD-R
4.3.2 Test form creation and modifications
4.3.3 Field User
Payment for Milestone No. 3 shall be ten percent (10%) of the not to exceed amount
of the Agreement. Payment for Milestone No. 3 is contingent upon the assigned OC
San Project Manager’s acceptance of the final version of the submittal. Payment for
Milestone No. 3 will include the following:
Milestone 3 Deliverables:
• Role base training manuals
• Role base training for up to thirty-five (35) OC San staff
• All training will be conducted on OC San’s property using OC San standard
computer and within OC San’s Training environment with OC San specific data.
4.4 MILESTONE 4 - Knowledge Transfer – Consultant will work with OC San Staff to
transfer knowledge. Consultant shall conduct periodic knowledge transfer sessions.
These sessions will be performed with the OC San Project Manager and assigned IT
personnel.
4.4.1 The scope of these sessions will include, but not be limited to: Review of all
existing documentation.
4.4.1.1 Actual hands-on installation and setup of the software and tools being
used for the project.
4.4.1.2 Setup of the data and database connections to the software and tools,
a demonstration of how the software and tools work and how to
maintain and upgrade the data.
4.4.1.3 VENDOR shall also provide a hands-on review of the installation of
any custom applications, tools and steps relating to the installation or
setup.
Payment for Milestone No. 4 shall be ten percent (10%) of the not to exceed amount
of the Agreement. Payment for Milestone No. 4 is contingent upon the assigned OC
San Project Manager’s acceptance of the final version of the submittal. Payment for
Milestone No. 4 will include the following:
Milestone 4 Deliverable:
• Scheduled knowledge transfer sessions throughout project term.
4.5 MILESTONE 5 - Testing, Go-live, and Support – Consultant shall develop a
comprehensive formal testing process approved by the OC San Project Manager.
Consultant shall develop a test plan for each component/module or system function
establishing roles/responsibilities of team members for each test plan. Consultant shall
develop and load test data into a test system and facilitate the completion of each test
plan.
4.5.1 Testing shall be coordinated with efforts between the OC San Project Manager,
OC San Technical Lead, and OC San staff.
4.5.2 All testing procedures shall be developed and documented by Consultant and
submitted to OC San for review and approval no less than two (2) weeks
before testing begins. Testing scenarios shall reflect real-world processes and
situations encountered by OC San employees.
4.5.3 Prior to moving the software into a production environment, Consultant shall
remedy all known defects and install and test the most current, commercially
EXHIBIT A Page 6 of 7 CS-2021-1039BD-R
available fix pack(s) from IBM and remedy all problems and deficiencies that
may surface during that process.
4.5.4 All tests shall be performed on-site at OC San on standard computers and
servers with OC San standard software and hardware.
4.5.5 Tests shall not be considered complete until the OC San Project Manager and
assigned IT personnel are satisfied that the software and data performed
properly and is compliant with OC San standards in accordance with the Scope
of Work. All training shall be completed prior to go-live.
4.5.6 Upon successful completion of testing and written certification by Consultant
that the software is complete in all respects, and all known defects have been
remedied by Consultant, the software will be prepared for live operations.
4.5.7 Consultant shall provide dedicated remote support during go-live for not less
than 15 business days. If the module is deemed not functioning, then the
response time will be within 4 hours of the next business day. If defects surface
during that period, OC San reserves the right to require Consultant to remain
on site until the software is stable and material defects have been remedied, at
no additional cost to OC San.
Payment for Milestone No. 5 shall be twenty percent (20%) of the not to exceed
amount of the Agreement. Payment for Milestone No. 5 is contingent upon the
assigned OC San Project Manager’s acceptance of the final version of the submittal.
Payment for Milestone No. 5 will include the following:
Milestone 5 Deliverables:
• Test plan
• User acceptance test
• System test
• Go-live
• Go-live support
4.6 MILESTONE 6 - Project Documentation – All project-related documentation shall be
updated and provided to OC San prior to training.
4.6.1 Project documentation shall include, but not be limited to: hardware
configuration, software configuration, security setup and administration, training
manuals, collected data, installation procedures, and testing procedures.
4.6.2 All documentation shall be delivered in the form of electronic files. All project
documentation deliverables shall be in their original format (e.g., Word or
Excel). The final documentation deliverable shall consist of a complete set of
electronic user manuals and electronic system administration manuals
exclusive of IBM-MAXIMO user/system manuals procured by OC San.
Payment for Milestone No. 6 shall be ten percent (10%) of the not to exceed amount
of the Agreement. Payment for Milestone No. 6 is contingent upon the assigned OC
San Project Manager’s acceptance of the final version of the submittal. Payment for
Milestone No. 6 will include the following:
Milestone 6 Deliverables:
• System/Application configuration.
• System/Application security setup.
• System/Application workflow documentation.
• System/Application test plans and test plan results.
• Finalized version of workflow diagrams & flowcharts.
EXHIBIT A Page 7 of 7 CS-2021-1039BD-R
• Finalized version of standard operating procedures.
• Finalized version of training manuals.
• All other documentation generated by other project tasks (e.g., status reports, logs,
and training materials).
5. SCHEDULE
• Consultant shall adhere to the following deadlines in creating its schedule and work
breakdown structure for accomplishing the SOW. Consultant shall coordinate all
meetings and presentations with the assigned OC San representative. All meetings
and presentations will be held at OC San’s Plant 1 facility located in the City of
Fountain Valley, CA.
ACTIVITY DEADLINE
Notice to Proceed (NTP) NTP = Effective Date
Kick-Off Meeting NTP + 21 Calendar Days
Detail Requirements and Design NTP + 42 Calendar Days
System Implementation, Configuration,
and Integration
NTP + 90 Calendar Days
Project Documentation NTP + 120 Calendar Days
Training NTP + 135 Calendar Days
Knowledge Transfer & Testing and Go-
Live
NTP + 180 Calendar Days
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1680 Agenda Date:6/9/2021 Agenda Item No:5.
FROM:James D. Herberg, General Manager
Originator: Celia Chandler, Director of Human Resources
SUBJECT:
APPROVE A CONTINGENCY INCREASE TO EXISTING SERVICE CONTRACT FOR
HAZARDOUS WASTE DISPOSAL SERVICES
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
Approve an annual contingency increase of $150,000 (in addition to the original contingency of
$19,200 for a total annual contingency of $169,200,in addition to the original contract amount of
$192,000)to the Service Contract with Clean Harbors Environmental Services,Inc.,Specification No.
S-2017-841,for hazardous waste services,for the contract term ending June 30,2021,and for the
contract term ending June 30, 2022.
BACKGROUND
The Orange County Sanitation District (OC San)utilizes Clean Harbors Environmental Services,Inc.
(CHES),a third-party California registered,EPA permitted,hazardous waste disposal service
provider,to perform routine collection,manifesting,off-site transportation,inspection,recordkeeping,
hazardous waste disposal,and emergency spill response for the two treatment plant facilities.
Services are provided weekly,with manifesting,transportation,and disposal services provided
quarterly in accordance with regulatory requirements.
The Hazardous Waste Disposal Services Contract with CHES was approved by the Board in 2017 for
a one-year performance period,with up to four (4)one-year renewals.The final remaining one-year
renewal option will be processed in June 2021 for a period from July 1, 2021 through June 30, 2022.
RELEVANT STANDARDS
·CA Government Code:Title 22,Division 4.5 Environmental Health Standards for Management
of Hazardous Waste
·Protect OC San assets
·Commitment to safety & reducing risk in all operations
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PROBLEM
The current contract term with CHES has a period of performance of July 1,2020 through June 30,
2021.Staff intends to renew this contract for the period from July 1,2021 through June 30,2022.
The annual amount allocated to Hazardous Waste Disposal Services is $192,000,which was
budgeted based upon historical cost information.Unforeseen disposal costs,primarily due to some
capital improvement projects,have exhausted the annual approved amount.The budgeted amount,
previously approved by the Board,is not sufficient to cover anticipated services through June 30,
2021.In addition,the costs are expected to be higher again in the coming fiscal year due to capital
improvement projects such as Headworks Rehabilitation at Plant No.1,Project No.P1-105,and A-
Side Primary Clarifiers Replacement at Plant No. 2, Project No. P2-98A.
PROPOSED SOLUTION
Approve an annual contingency increase of $150,000 (in addition to the original contingency of
$19,200)for a total annual contingency of $169,200,in addition to the contract amount of $192,000,
to cover the cost of services in the fiscal year ending June 30,2021,and for the fiscal year ending
June 30, 2022.
TIMING CONCERNS
Approval of the contingency increase is necessary to meet compliance requirements related to
hazardous waste disposal.
RAMIFICATIONS OF NOT TAKING ACTION
Without approval of the contingency increase for additional funds,OC San will not be able to properly
manage generated hazardous waste resulting in fines,violations,and potential releases to the
environment.
PRIOR COMMITTEE/BOARD ACTIONS
May 2020 -Approved a contingency increase of $35,000 (in addition to the original contingency of
$19,200)for a total contingency of $54,200,in addition to the contract amount of $192,000,to cover
the cost of services through June 30, 2020.
August 2017 -Approved a service contract with Clean Harbors Environmental Services,Inc.,
Specification No.S-2017-841,for the period of September 1,2017 through June 30,2018,for a total
annual amount not to exceed $192,000,with up to four (4)one-year renewal options;and an annual
contingency of $19,200.
ADDITIONAL INFORMATION
OC San is required to properly dispose of all hazardous waste generated.The primary service
CHES provides is the transportation,treatment,and either recycling or disposal of hazardous waste
generated by OC San, in addition to the following services:
·Hazardous waste profiling -sampling waste and conducting lab analysis to determine how the
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·Hazardous waste profiling -sampling waste and conducting lab analysis to determine how the
waste is supposed to be disposed of properly
·Lab packs -sampling and properly packing small quantities of chemicals to ensure they are
disposed of properly
·Spill cleanup -providing the trained personnel,material,and equipment to clean up spills
caused OC San activities that are beyond the capabilities of OC San staff to handle
·Hazardous waste storage yard inspections - examining all the different storage
areas at Plant Nos. 1 and 2 to ensure compliance with regulations
FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San’s Purchasing Ordinance.The costs for this
work have been budgeted,either as an operational expense (Line item:Section 6,Page 20)or as
part of the budget of capital projects, depending on the work being performed.
Date of Approval Contract Amount Contingency
08/23/2017 $192,000 $ 19,200
06/23/2021 $150,000
ATTACHMENT
The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda
package:
N/A
JM:dm
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ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1681 Agenda Date:6/9/2021 Agenda Item No:6.
FROM:James D. Herberg, General Manager
Originator: Celia Chandler, Director of Human Resources
SUBJECT:
CLASSIFICATION & COMPENSATION STUDIES
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
A. Award a Professional Consultant Services Agreement to Kaneko and Krammer Corp. dba Koff
& Associates to provide Classification and Compensation Services, Specification No. CS-2021
-1229BD, for a total amount not to exceed $243,660; and
B. Approve a project contingency of $24,366 (10%).
BACKGROUND
The Orange County Sanitation District (OC San)periodically conducts comprehensive Classification
and Compensation (C&C)Studies to support effective operations and labor relations.These studies
allow OC San to ensure an accurate representation of the duties of each job classification and
understand the agency’s positions as they relate to the job market.
Classification and compensation systems provide necessary tools for organizations to make
administrative,fiscal,and human resources decisions.Accurate,current,and legally compliant
classification specifications (job descriptions)provide fundamental and essential building blocks for
successfully administering recruitment,performance management,compensation,training and
development,succession planning,and other human resources processes.A competitive and
equitable compensation program allows OC San to attract and retain a qualified workforce.
RELEVANT STANDARDS
·Offer competitive compensation and benefits
·Negotiate fair and equitable labor agreements
·Maintain positive employer-employee relations
·Comply with Government Codes (Fair Labor Standards Act, Americans with Disabilities Act,
Equal Pay Act)
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PROBLEM
OC San’s last comprehensive C &C Studies were completed in July 2016.Updated job descriptions
and salary market position benchmark information are needed as negotiations with employee
bargaining units are scheduled to begin next fiscal year.
PROPOSED SOLUTION
Award a contract to the top ranked firm to ensure that OC San receives the required level of C &C
Studies services at a competitive price.
TIMING CONCERNS
OC San’s current labor contracts will expire on June 30,2022.The current Memoranda of
Understanding (MOUs)were adopted in October 2019 and represent three-year agreements with
represented employee groups.Salary market data from OC San’s comparator agencies (currently
17,approved by OC San’s Board of Directors in September 2015)has been key over the years for
OC San’s negotiating team and the Board of Directors in forming strategy for negotiating with the
bargaining units.
RAMIFICATIONS OF NOT TAKING ACTION
OC San would utilize outdated job descriptions and lack updated salary market data to support its
upcoming labor contract negotiations.
PRIOR COMMITTEE/BOARD ACTIONS
October 2020 -Steering Committee received an overview presentation on Classification and
Compensation in preparation for the upcoming agency-wide study.
September 2019 -Board of Directors adopted Resolutions No.OCSD 19-13,19-14,19-15,and 19-
16,approving salary range adjustments for Fiscal Year 2019/2020,Fiscal Year 2020/2021,and Fiscal
Year 2021/2022 for employees in the Executive Management,Management,Exempt Confidential,
and Non-Exempt Confidential Employee Groups, respectively.
August 2019 -Board of Directors adopted Resolutions No.OCSD 19-08,19-09,and 19-10,
approving the Memoranda of Understanding in effect from July 1,2019,through June 30,2022,for
the Supervisory and Professional Management Group,Orange County Employees Association,and
Local 501 bargaining units, respectively.
July 2016 -Board of Directors received and filed the Report of the Total Compensation Study final
results.
September 2015 - Board of Directors approved OC San’s current list of 17 comparator agencies.
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ADDITIONAL INFORMATION
Scope of Services:
Comprehensive C & C Studies will provide an update and review of positions to validate and revise
job classifications and ensure appropriate compensation levels.
During the Classification Phase,all OC San job descriptions (classification specifications,
approximately 134)will be updated based on input from stakeholders,including employees,
management,bargaining units,and Human Resources.This will include review and update as
needed to job duties,required knowledge/skills/abilities,and employment standards (minimum
requirements for education, experience, certificates, licenses).
During the Compensation Phase,labor market data will be collected from OC San’s Board-approved
comparison agencies as well as other compensation for informational purposes from other sources
such as private sector agencies if available.Data on base salary and total compensation (salary plus
benefits)is collected for benchmark classifications.This allows OC San to gauge its market position
with like organizations,compare its compensation for similar job duties at other agencies,and review
internal compensation alignment based on job duties and qualifiers that are similar in nature and in
the market to ensure pay equity.The vendor will obtain,review and assess,and provide a summary
report of their findings which includes updates to job specifications and market position.The
information will be presented to the Steering Committee and Board of Directors as well as union
boards during the upcoming labor negotiations.
Solicitation Information:
A Request for Proposal was issued on March 10,2021,via PlanetBids.Proposals were due on April
15,2021.OC San received four (4)responsive proposals which are valid for 180 days from the bid
opening date.
Protest Information:
None.
Evaluation:
Prior to receipt of proposals,an evaluation team was formed consisting of OC San’s staff listed
below.The team was chaired by a Purchasing representative as a non-voting member.On April 19,
2021, the evaluation team met to discuss the policies and procedures for the evaluation process.
NAME TITLE
Laura Maravilla Human Resources & Risk Manager
Janine Aguilar Human Resources Supervisor
Laurie Klinger Senior Human Resources Analyst
Individual scoring was the chosen method of evaluation for this procurement.Members of the team
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Individual scoring was the chosen method of evaluation for this procurement.Members of the team
performed an independent review of the proposals and later met as a group with the Buyer to discuss
their preliminary scores and discuss any questions/concerns they had.Proposals were evaluated
based on the following criteria:
CRITERION WEIGHT
Qualifications & Experience of Firm 30%
Proposed Staffing & Project Organization 20%
Work Plan 20%
Presentation/Interview 10%
Cost 20%
The evaluation team first reviewed and scored the proposals based upon the criteria listed above,
other than cost.
Rank Proposer Criterion 1
(Max 30%)
Criterion 2
(Max 20%)
Criterion 3
(Max 20%)
Subtotal Score
(Max 70%)
1 Kaneko and
Krammer 30%20%20%70%
2 The Segal
Company
22%14%13%49%
3 Gallagher Benefit
Services
17%11%11%39%
4 Reward Strategy
Group
16%10%10%36%
The two highest ranking firms,Kaneko and Krammer and The Segal Company,were selected for
interviews.The interviews were conducted on May 6,2021.Following the interviews,the evaluation
team ranked the firms based on both the proposals and interviews using the evaluation criteria and
weighting listed above.
Rank Proposer Subtotal Score
(Max 70%)
Presentation (Max
10%)
Total Score
without cost (Max
80%)
1 Kaneko and
Krammer
70%10%80%
2 The Segal
Company
49%6%55%
All proposals were accompanied by a sealed cost proposal.Only the cost proposals for the two
highest ranked firms were opened and negotiated.
Rank Proposer Subtotal Score
(Max 80%)
Cost (Max
20%)
Total Weighted Score
(Max 100%)
1 Kaneko and
Krammer
80%12%92%
2 The Segal
Company
55%20%75%
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Rank Proposer Subtotal Score
(Max 80%)
Cost (Max
20%)
Total Weighted Score
(Max 100%)
1 Kaneko and
Krammer
80%12%92%
2 The Segal
Company
55%20%75%
Cost Information for Opened Proposals:
Rank Proposer ORIGINAL COST BAFO (if applicable)
1 Kaneko and Krammer Two Options presented
with 1 at $211,110 and the
2nd at $314,185
$243,660 (Negotiated Cost
after combining tasks from
both options)
2 The Segal Company $145,000 N/A
Award Recommendation:
Based on these results,staff recommends awarding the Agreement to Kaneko and Krammer Corp.
dba Koff &Associates.The term of this Agreement will begin upon effective date of Notice to
Proceed.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San’s Purchasing Ordinance.OC San’s FY
2021/2022 budget for professional services for Classification and Compensation Studies is $200,000.
The total estimated cost for Classification and Compensation Studies submitted by Kaneko and
Krammer for Specification No.CS-2021-1229BD was $243,660.This is not an ongoing annual cost,
as OC San conducts comprehensive Classification and Compensation Studies approximately every
five (5) years.
Date of Approval Contract Amount Contingency
06/23/2021 $243,660 $24,366
ATTACHMENT
The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda
package:
·Service Contract
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Orange County Sanitation District 1 of 10 Specification No. CS-2021-1229BD Version 080919
PROFESSIONAL CONSULTANT SERVICES AGREEMENT
Classification & Compensation Studies
2021 ALL EMPLOYEE GROUPS
SPECIFICATION NO. CS-2021-1229BD
THIS AGREEMENT is made and entered into as of the date fully executed below, by and between
Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue,
Fountain Valley, CA 92708 (hereinafter referred to as "OC San") and [_______________] with a
principal place of business at [___________________________] (hereinafter referred to as
"Consultant") collectively referred to as the “Parties”.
W I T N E S S E T H
WHEREAS, based on Consultant’s expertise and experience, OC San desires to temporarily
engage Consultant to provide Classification and Compensation Studies for all employee groups
"Services” as described in Exhibit “A”; and
WHEREAS, Consultant submitted its Proposal, dated [_______]; and
WHEREAS, on [____________________], the Board of Directors of OC San, by minute order,
authorized execution of this Agreement between OC San and Consultant; and
WHEREAS, OC San has chosen Consultant to conduct Services in accordance with Ordinance
No. OCSD-52; and
NOW, THEREFORE, in consideration of the mutual promises and mutual benefits exchanged
between the Parties, the Parties mutually agree as follows:
1. Introduction
1.1 This Agreement and all exhibits hereto (called the "Agreement") is made by OC San and
the Consultant. The terms and conditions herein exclusively govern the purchase of
Services as described in Exhibit “A”.
1.2 Exhibits to this Agreement are incorporated by reference and made a part of this Agreement
as though fully set forth at length herein.
Exhibit “A” Scope of Work
Exhibit “B” Proposal
Exhibit “C” Determined Insurance Requirement Form
Exhibit “D” Contractor Safety Standards
Exhibit “E” Human Resources Policies
1.3 In the event of any conflict or inconsistency between the provisions of this Agreement and
any of the provisions of the exhibits hereto, the provisions of this Agreement shall in all
respects govern and control.
1.4 This Agreement may not be modified, changed, or supplemented, nor may any obligations
hereunder be waived or extensions of time for performance granted, except by written
instrument signed by both Parties.
1.5 The various headings in this Agreement are inserted for convenience only and shall not
affect the meaning or interpretation of this Agreement or any section or provision hereof.
Orange County Sanitation District 2 of 10 Specification No. CS-2021-1229BD Version 080919
1.6 The term “days”, when used in the Agreement, shall mean calendar days, unless otherwise
noted as workdays.
1.7 The term “workday”. Workdays are defined as all days that are not Saturday, Sunday, or
OC San observed holidays. Meetings with OC San staff shall be scheduled from Monday
through Thursday between the hours of 8 a.m. and 4 p.m. (exception is Operations staff
who maintain plant operations 24/7 and work a rotated 12-hour shift) and shall conform to
OC San work schedules. OC San review periods shall not include OC San observed
holidays.
1.8 OC San holidays (non-working days) are as follows: New Year’s Day, Lincoln’s Birthday,
Presidents’ Day, Memorial Day, Independence Day, Labor Day, Veterans Day,
Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day.
1.9 Work Hours: The work required under this Agreement may include normal business hours,
evenings, and weekends.
1.10 Meetings: Meetings with day-shift staff shall be scheduled Monday through Thursday,
between the hours of 8:00 a.m. and 4:00 p.m. OC San will not pay for travel time.
1.11 Consultant shall provide OC San with all required premiums and/or overtime work at no
charge beyond the total amount of the Agreement.
1.12 Except as expressly provided otherwise, OC San accepts no liability for any expenses,
losses, or action incurred or undertaken by Consultant as a result of work performed in
anticipation of purchases of said services by OC San.
2. Scope of Work Subject to the terms of this Agreement, Consultant shall perform the
Services identified in Exhibit “A”. Consultant warrants that all of its Services shall be
performed in a competent, professional, and satisfactory manner.
3. Modifications to Scope of Work Requests for modifications to the Scope of Work
hereunder can be made by OC San at any time. All modifications must be made in writing
and signed by both Parties. A review of the time required for the modification will be made
by OC San and Consultant and the Agreement period adjusted accordingly.
4. Compensation Compensation to be paid by OC San to Consultant for the Services
provided under this Agreement shall be a total amount not to exceed [________________]
Dollars ($[________].00).
5. California Department of Industrial Relations (DIR)Registration and Record of Wages
5.1 To the extent Consultant’s employees and/or subconsultants who will perform work for
which Prevailing Wage Determinations have been issued by the DIR and as more
specifically defined under Labor Code Section 1720 et seq, Consultant and subconsultants
shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to
Labor Code Section 1771.4, the work is subject to compliance monitoring and enforcement
by the DIR.
5.2 The Consultant and subconsultants shall maintain accurate payroll records and shall comply
with all the provisions of Labor Code Section 1776, and shall submit payroll records to the
Labor Commissioner pursuant to Labor Code 1771.4(a)(3). Penalties for non-compliance
with the requirements of Section 1776 may be deducted from progress payments per
Section 1776.
Orange County Sanitation District 3 of 10 Specification No. CS-2021-1229BD Version 080919
5.3 Pursuant to Labor Code Section 1776, the Consultant and subconsultants shall furnish a
copy of all certified payroll records to OC San and/or general public upon request, provided
the public request is made through OC San, the Division of Apprenticeship Standards, or
the Division of Labor Standards Enforcement of the Department of Industrial Relations.
5.4 The Consultant and subconsultants shall comply with the job site notices posting
requirements established by the Labor Commissioner per Title 8, California Code of
Regulation Section 16461(e). 6. Payment and Invoicing
6.1 OC San shall pay, net thirty (30) days, upon receipt and approval, by OC San’s Project
Manager or designee, of itemized invoices submitted for Milestones completed in
accordance with Exhibit “A”. OC San, at its sole discretion, shall be the determining party
as to whether the Milestones have been satisfactorily completed.
6.2 Invoices shall be emailed by Consultant to OC San Accounts Payable at
APStaff@OCSD.com and “INVOICE” with the Purchase Order Number and CS-2021-
1229BD shall be referenced in the subject line.
7. Audit Rights Consultant agrees that, during the term of this Agreement and for a period of
three (3) years after its termination, OC San shall have access to and the right to examine
any directly pertinent books, documents, and records of Consultant relating to the invoices
submitted by Consultant pursuant to this Agreement.
8. Commencement and Term The Services provided under this Agreement shall be
commence on the effective date of the Notice to Proceed and continue through October 31,
2021.
9. Extensions The term of this Agreement may be extended only by written instrument signed
by both Parties.
10. Performance Time is of the essence in the performance of the provisions hereof.
11. Termination
11.1 OC San reserves the right to terminate this Agreement for its convenience, with or without
cause, in whole or in part, at any time, by written notice from OC San. Upon receipt of a
termination notice, Consultant shall immediately discontinue all work under this Agreement
(unless the notice directs otherwise). OC San shall thereafter, within thirty (30) days, pay
Consultant for work performed (cost and fee) to the date of termination. Consultant
expressly waives any claim to receive anticipated profits to be earned during the
uncompleted portion of this Agreement. Such notice of termination shall terminate this
Agreement and release OC San from any further fee, cost or claim hereunder by Consultant
other than for work performed to the date of termination.
11.2 OC San reserves the right to terminate this Agreement immediately upon OC San’s
determination that Consultant is not complying with the Scope of Work requirements, if the
level of service is inadequate, or any other default of this Agreement.
11.3 OC San may also immediately terminate for default of this Agreement in whole or in part by
written notice to Consultant:
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• if Consultant becomes insolvent or files a petition under the Bankruptcy Act; or
• if Consultant sells its business; or
• if Consultant breaches any of the terms of this Agreement; or
• if total amount of compensation exceeds the amount authorized under this Agreement.
11.4 All OC San property in the possession or control of Consultant shall be returned by
Consultant to OC San on demand, or at the termination of this Agreement, whichever occurs
first. 12. Indemnification and Hold Harmless Provision Consultant shall assume all responsibility
for damages to property and/or injuries to persons, including accidental death, which may
arise out of or be caused by Consultant's services under this Agreement, or by its
subconsultant(s) or by anyone directly or indirectly employed by Consultant, and whether
such damage or injury shall accrue or be discovered before or after the termination of the
Agreement. Except as to the sole active negligence of or willful misconduct of OC San,
Consultant shall indemnify, protect, defend and hold harmless OC San, its elected and
appointed officials, officers, agents and employees, from and against any and all claims,
liabilities, damages or expenses of any nature, including attorneys' fees: (a) for injury to or
death of any person or damage to property or interference with the use of property, arising
out of or in connection with Consultant's performance under the Agreement, and/or (b) on
account of use of any copyrighted or uncopyrighted material, composition, or process, or
any patented or unpatented invention, article or appliance, furnished or used under the
Agreement, and/or (c) on account of any goods and services provided under this
Agreement. This indemnification provision shall apply to any acts or omissions, willful
misconduct, or negligent misconduct, whether active or passive, on the part of Consultant
or anyone employed by or working under Consultant. To the maximum extent permitted by
law, Consultant's duty to defend shall apply whether or not such claims, allegations,
lawsuits, or proceedings have merit or are meritless, or which involve claims or allegations
that any of the parties to be defended were actively, passively, or concurrently negligent, or
which otherwise assert that the parties to be defended are responsible, in whole or in part,
for any loss, damage, or injury. Consultant agrees to provide this defense immediately upon
written notice from OC San, and with well qualified, adequately insured, and experienced
legal counsel acceptable to OC San. This section shall survive the expiration or early
termination of the Agreement.
13. Insurance Consultant and all subconsultants shall purchase and maintain, throughout the
life of this Agreement and any periods of warranty or extensions, insurance in amounts equal
to the requirements set forth in the signed Determined Insurance Requirement Form, Exhibit
“C“. Consultant shall not commence work under this Agreement until all required insurance
is obtained in a form acceptable to OC San, nor shall Consultant allow any subconsultant to
commence service pursuant to a subcontract until all insurance required of the
subconsultant has been obtained. Failure to maintain required insurance coverage shall
result in termination of this Agreement.
14. Key Personnel Personnel, as provided in Exhibit “B”, are considered “key” to the work
under this Agreement and will be available for the term of the Agreement. No person
designated as key under this Agreement shall be removed or replaced without prior written
consent of OC San. If OC San asks Consultant to remove a person designated as key under
this Agreement, Consultant agrees to do so immediately regardless of the reason, or the
lack of reason, for OC San's request. Consultant shall assign only competent personnel to
perform Services pursuant to this Agreement.
Orange County Sanitation District 5 of 10 Specification No. CS-2021-1229BD Version 080919
15. Confidentiality and Non-Disclosure
15.1 Consultant acknowledges that in performing the Services hereunder, OC San may have to
disclose to Consultant orally and in writing certain confidential information that OC San
considers proprietary and has developed at great expense and effort.
15.2 Consultant agrees to maintain in confidence and not disclose to any person, firm, or
corporation, without OC San's prior written consent, any trade secret or confidential
information, knowledge or data relating to the products, process, or operation of OC San.
15.3 Consultant further agrees to maintain in confidence and not to disclose to any person, firm,
or corporation any data, information, technology, or material developed or obtained by
Consultant during the term of this Agreement.
15.4 Consultant agrees as follows:
• To use the confidential information only for the purposes described herein; to not reproduce
the confidential information; to hold in confidence and protect the confidential information
from dissemination to and use by anyone not a party to this Agreement; and to not use the
confidential information to benefit itself or others.
• To restrict access to the confidential information to its subconsultant or personnel of
Consultant who (1) have a need to have such access and (2) have been advised of and
have agreed in writing to treat such information in accordance with the terms of this
Agreement.
• To return all confidential information in Consultant's possession upon termination of this
Agreement or upon OC San's request, whichever occurs first.
• To hold in confidence information and materials, if any, developed pursuant to the Services
hereunder.
15.5 The provisions of this section shall survive termination or expiration of this Agreement and
shall continue for so long as the material remains confidential.
16. Ownership of Documents All drawings, specifications, reports, records, documents,
memoranda, correspondence, computations, and other materials prepared by Consultant,
its employees, subconsultants, and agents in the performance of this Agreement shall be
the property of OC San and shall be promptly delivered to OC San upon request of OC
San’s Project Manager or designee, or upon the termination of this Agreement, and
Consultant shall have no claim for further employment or additional compensation as a
result of the exercise by OC San of its full rights of ownership of the documents and materials
hereunder. Any use of such completed documents for other projects and/or use of
incomplete documents without specific written authorization by the Consultant will be at OC
San's sole risk and without liability to Consultant. Consultant shall ensure that all its
subconsultants shall provide for assignment to OC San of any documents or materials
prepared by them.
17. Ownership of Intellectual Property
17.1 Consultant agrees that all designs, plans, reports, specifications, drawings, schematics,
prototypes, models, inventions, and all other information and items made during the course
of this Agreement and arising from the Services (hereinafter referred to as "New
Developments") shall be and are assigned to OC San as its sole and exclusive property.
17.2 Consultant agrees to promptly disclose to OC San all such New Developments. Upon OC
San's request, Consultant agrees to assist OC San, at OC San's expense, to obtain patents
Orange County Sanitation District 6 of 10 Specification No. CS-2021-1229BD Version 080919
or copyrights for such New Developments, including the disclosure of all pertinent
information and data with respect thereto, the execution of all applications, specifications,
assignments, and all other instruments and papers which OC San shall deem necessary to
apply for and to assign or convey to OC San, its successors and assigns, the sole and
exclusive right, title and interest in such New Developments. Consultant agrees to obtain or
has obtained written assurances from its employees and contract personnel of their
agreement to the terms hereof with regard to New Developments and confidential
information.
17.3 Consultant warrants that Consultant has good title to any New Developments, and the right
to assign New Developments to OC San free of any proprietary rights of any other party or
any other encumbrance whatever.
17.4 The originals of all computations, drawings, designs, graphics, studies, reports, manuals,
photographs, videotapes, data, computer files, and other documents prepared or caused to
be prepared by Consultant or its subconsultants in connection with these Services shall be
delivered to and shall become the exclusive property of OC San. OC San may utilize these
documents for OC San applications on other projects or extensions of this project, at its own
risk.
18. No Solicitation of Employees
18.1 Consultant agrees that it shall not, during the term of this Agreement and for a period of one
(1) year immediately following termination of this Agreement, or any extension hereof, call
on, solicit, or take away any of the employees whom Consultant became aware of as a result
of Consultant's Services to OC San.
18.2 Consultant acknowledges that OC San’s employees are critical to its business and OC San
expends significant resources to hire, employ, and train employees. Should Consultant
employ or otherwise engage OC San’s employees during the term of this Agreement and
for a period of one (1) year following termination of this Agreement, Consultant will pay OC
San fifty percent (50%) of the former employee’s most recent annual salary earned at OC
San to accurately reflect the reasonable value of OC San’s time and costs. This payment is
in addition to any other rights and remedies OC San may have at law.
19. Independent Contractor Capacity
19.1 The relationship of Consultant to OC San is that of an independent contractor and nothing
herein shall be construed as creating an employment or agency relationship.
19.2 Consultant shall act independently and not as an officer or employee of OC San. OC San
assumes no liability for Consultant’s action and performance, nor assumes responsibility for
taxes, funds, payments, or other commitments, implied or expressed, by or for Consultant.
19.3 Consultant shall not be considered an agent of OC San for any purpose whatsoever, nor
shall Consultant have the right to, and shall not, commit OC San to any agreement, contract
or undertaking. Consultant shall not use OC San’s name in its promotional material or for
any advertising or publicity purposes without expressed written consent.
19.4 Consultant shall not be entitled to any benefits accorded to those individuals listed on OC
San’s payroll as regular employees including, without limitation, worker's compensation,
disability insurance, vacation, holiday, or sick pay. Consultant shall be responsible for
providing, at Consultant’s expense, disability, worker's compensation or other insurance as
well as licenses and permits usual or necessary for conducting the Services hereunder.
Orange County Sanitation District 7 of 10 Specification No. CS-2021-1229BD Version 080919
19.5 Consultant shall be obligated to pay any and all applicable Federal, State and local payroll
and other taxes incurred as a result of fees hereunder. Consultant hereby indemnifies OC
San for any claims, losses, costs, fees, liabilities, damages or penalties suffered by OC San
arising out of Consultant's breach of this provision.
19.6 Consultant shall not be eligible to join or participate in any benefit plans offered to those
individuals listed on OC San's payroll as regular employees. Consultant shall remain
ineligible for such benefits or participation in such benefit plans even if a court later decides
that OC San misclassified Consultant for tax purposes.
20. Licenses, Permits Consultant represents and warrants to OC San that it has obtained all
licenses, permits, qualification and approvals of whatever nature that are legally required to
engage in this work. Any and all fees required by Federal, State, County, City and/or
municipal laws, codes and/or tariffs that pertain to work performed under the terms of this
Agreement will be paid by Consultant. 21. Consultant's Representations In the performance of duties under this Agreement,
Consultant shall adhere to the highest fiduciary standards, ethical practices and standards
of care and competence for their trade/profession. Consultant agrees to comply with all
applicable Federal, State and local laws and regulations.
22. Familiarity with Work By executing this Agreement, Consultant warrants that: 1) it has
investigated the work to be performed; 2) it has investigated the site of the work and is aware
of all conditions there; and 3) it understands the facilities, difficulties and restrictions of the
work under this Agreement. Should Consultant discover any latent or unknown conditions
materially differing from those inherent in the work or as represented by OC San, it shall
immediately inform OC San of this and shall not proceed, except at Consultant’s risk, until
written instructions are received from OC San.
23. Right to Review Services, Facilities, and Records
23.1 OC San reserves the right to review any portion of the Services performed by Consultant
under this Agreement, and Consultant agrees to cooperate to the fullest extent possible.
23.2 Consultant shall furnish to OC San such reports, statistical data, and other information
pertaining to Consultant's Services as shall be reasonably required by OC San to carry out
its rights and responsibilities under its agreements with its bondholders or noteholders and
any other agreement relating to the development of the project(s) and in connection with the
issuance of its official statements and other prospectuses with respect to the offering, sale,
and issuance of its bonds and other obligations.
23.3 The right of OC San to review or approve drawings, specifications, procedures, instructions,
reports, test results, calculations, schedules, or other data that are developed by Consultant
shall not relieve Consultant of any obligation set forth herein.
24. Force Majeure Neither party shall be liable for delays caused by accident, flood, acts of
God, fire, labor trouble, war, acts of government or any other cause beyond its control, but
said party shall use reasonable efforts to minimize the extent of the delay. Work affected by
a Force Majeure condition may be rescheduled by mutual consent or may be eliminated
from the Agreement. 25. Severability If any section, subsection, or provision of this Agreement, or any agreement
or instrument contemplated hereby, or the application of such section, subsection, or
provision is held invalid, the remainder of this Agreement or instrument in the application of
Orange County Sanitation District 8 of 10 Specification No. CS-2021-1229BD Version 080919
such section, subsection or provision to persons or circumstances other than those to which
it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to
substantially frustrate the expectations of the Parties. 26. Waiver The waiver of either party of any breach or violation of, or default under, any
provision of this Agreement, shall not be deemed a continuing waiver by such party of any
other provision or of any subsequent breach or violation of this Agreement or default
thereunder. Any breach by Consultant to which OC San does not object shall not operate
as a waiver of OC San’s rights to seek remedies available to it for any subsequent breach. 27. Remedies In addition to other remedies available in law or equity, if the Consultant fails to
make delivery of the goods or Services or repudiates its obligations under this Agreement,
or if OC San rejects the goods or Services or revokes acceptance of the goods or Services,
OC San may (1) terminate the Agreement; (2) recover whatever amount of the purchase
price OC San has paid, and/or (3) “cover” by purchasing, or contracting to purchase,
substitute goods or Services for those due from Consultant. In the event OC San elects to
“cover” as described in (3), OC San shall be entitled to recover from Consultant as damages
the difference between the cost of the substitute goods or Services and the Agreement price,
together with any incidental or consequential damages.
28. Governing Law This Agreement shall be governed by and interpreted under the laws of
the State of California and the Parties submit to jurisdiction in Orange County, in the event
any action is brought in connection with this Agreement or the performance thereof.
29. Environmental Compliance Consultant shall, at its own cost and expense, comply with all
Federal, State, and local environmental laws, regulations, and policies which apply to the
Consultant, its sub-consultants, and the Services, including, but not limited to, all applicable
Federal, State, and local air pollution control laws and regulations.
30. Attorney’s Fees If any action at law or inequity or if any proceeding in the form of an
Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this
Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and
necessary disbursements in addition to any other relief to which it may be entitled.
31. Dispute Resolution
31.1 In the event of a dispute as to the construction or interpretation of this Agreement, or any
rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the
dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution
of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be
conducted in accordance with the Commercial Mediation Rules of the American Arbitration
Agreement, through the alternate dispute resolution procedures of Judicial Arbitration
through Mediation Services of Orange County ("JAMS"), or any similar organization or entity
conducting an alternate dispute resolution process.
31.2 In the event the Parties are unable to timely resolve the dispute through mediation, the
issues in dispute shall be submitted to arbitration pursuant to California Code of Civil
Procedure, Part 3, Title 9, Sections 1280 et seq. For such purpose, an agreed arbitrator
shall be selected, or in the absence of agreement, each party shall select an arbitrator, and
those two (2) arbitrators shall select a third. Discovery may be conducted in connection with
the arbitration proceeding pursuant to California Code of Civil Procedure Section 1283.05.
The arbitrator, or three (3) arbitrators acting as a board, shall take such evidence and make
such investigation as deemed appropriate and shall render a written decision on the matter
in question. The arbitrator shall decide each and every dispute in accordance with the laws
Orange County Sanitation District 9 of 10 Specification No. CS-2021-1229BD Version 080919
of the State of California. The arbitrator's decision and award shall be subject to review for
errors of fact or law in the Superior Court for the County of Orange, with a right of appeal
from any judgment issued therein.
32. Damage to OC San's Property Any OC San property damaged by Consultant will be
subject to repair or replacement by Consultant at no cost to OC San.
33. Contractor Safety Standards and Human Resources Policies OC San requires
Consultant and its subconsultants to follow and ensure their employees follow all Federal,
State, and local regulations as well as Contractor Safety Standards while working at OC
San locations. If during the course of the Agreement it is discovered that Contractor Safety
Standards do not comply with Federal, State, or local regulations, then the Consultant is
required to follow the most stringent regulatory requirement at no additional cost to OC San.
Consultant and all of its employees and subconsultants, shall adhere to all applicable
Contractor Safety Standards attached hereto in Exhibit “D” and the Human Resources
Policies in Exhibit “E”.
34. Freight (F.O.B. Destination) Consultant assumes full responsibility for all transportation,
transportation scheduling, packing, handling, insurance, and other services associated with
delivery of all products deemed necessary under this Agreement.
35. Assignments Consultant shall not delegate any duties nor assign any rights under this
Agreement without the prior written consent of OC San. Any such attempted delegation or
assignment shall be void.
36. Conflict of Interest and Reporting
36.1 Consultant shall at all times avoid conflicts of interest or appearance of conflicts of interest
in performance of this Agreement.
36.2 Consultant affirms that to the best of its knowledge there exists no actual or potential conflict
between Consultant’s families, business or financial interest or its Services under this
Agreement, and in the event of change in either its private interests or Services under this
Agreement, it will raise with OC San any question regarding possible conflict of interest
which may arise as a result of such change.
37. Third Party Rights Nothing in this Agreement shall be construed to give any rights or
benefits to anyone other than OC San and Consultant.
38. Non-Liability of OC San Officers and Employees No officer or employee of OC San shall
be personally liable to Consultant, or any successor-in-interest, in the event of any default
or breach by OC San or for any amount which may become due to Consultant or to its
successor, or for breach of any obligation of the terms of this Agreement.
39. Authority to Execute The persons executing this Agreement on behalf of the Parties
warrant that they are duly authorized to execute this Agreement and that by executing this
Agreement, the Parties are formally bound. 40. Read and Understood By signing this Agreement, Consultant represents that it has read
and understood the terms and conditions of the Agreement.
41. Entire Agreement This Agreement constitutes the entire agreement of the Parties and
supersedes all prior written or oral and all contemporaneous oral agreements,
understandings, and negotiations between the Parties with respect to the subject matter hereof.
Orange County Sanitation District 10 of 10 Specification No. CS-2021-1229BD Version 080919
42. Notices All notices under this Agreement must be in writing. Written notice shall be
delivered by personal service or sent by registered or certified mail, postage prepaid, return
receipt requested, or by any other overnight delivery service which delivers to the noticed
destination and provides proof of delivery to the sender. Any facsimile notice must be
followed within three (3) days by written notice. Rejection or other refusal to accept or the
inability to deliver because of changed address for which no notice was given as provided
hereunder shall be deemed to be receipt of the notice, demand or request sent. All notices
shall be effective when first received at the following addresses:
OC San: Jackie Lagade
Principal Buyer
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, CA 92708-7018
Consultant: [Contact Name]
[Contact Title]
[Company Name]
[Street Address]
[City, State, Zip Code]
Each party shall provide the other party written notice of any change in address as soon as
practicable.
IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this
Agreement to be signed by the duly authorized representatives.
ORANGE COUNTY SANITATION DISTRICT
Dated: _________________ By: ___________________________________
David John Shawver
Chair, Board of Directors
Dated: _________________ By: ___________________________________
Kelly A. Lore
Clerk of the Board
Dated: _________________ By: ___________________________________
Ruth Zintzun
Purchasing & Contracts Manager
[COMPANY]
Dated: _________________ By: ___________________________________
______________________________________
Print Name and Title of Officer
EXHIBIT “A” Specification No. CS-2021-1229BD
Exhibit “A”
SCOPE OF WORK
ATTACHMENT A Page 1 of 9 Specification No. CS-2021-1229BD
EXHIBIT A
SCOPE OF WORK
Classification & Compensation Studies
2021 ALL EMPLOYEE GROUPS
SPECIFICATION NO. CS-2021-1229BD
1.0 OVERVIEW
The Orange County Sanitation District (OC San) is seeking a highly qualified and
experienced individual or firm (hereinafter referred to as “Consultant”) with a proven track
record of accomplishment in similar projects in the public sector, ideally in California and
including water and wastewater agencies, to conduct comprehensive Classification and
Compensation Studies for all employee groups and provide recommendations to address
any anomalies within the current classification and pay structures. The Consultant should
provide a list of public sector clients in California. The Consultant should utilize up-to-date
methodology, processes, and technology to conduct all aspects of the study, including data
collection, research, and communications.
2.0 BACKGROUND INFORMATION
OC San is the third largest wastewater treatment system west of the Mississippi River. For
over 65 years OC San has safely collected, treated and disposed or recycled the wastewater
generated by 2.6 million people living and working in a 479-square mile area of Orange
County, California.
OC San has a Board of Directors (Board), which meets to establish the policies that govern
the agency. The 25 Directors are elected public officials, including city mayors or council
members, or representatives from local sanitary or water districts, as well as one
representative from the Orange County Board of Supervisors.
OC San has two treatment facilities, one in Fountain Valley and one in Huntington Beach,
with a Board authorized staffing level of 639 employees. There are six (6) operating
departments within the agency: 1) General Manager’s Office; 2) Human Resources; 3)
Administrative Services; 4) Environmental Services; 5) Engineering; and 6) Operations and
Maintenance.
The following is a list of all OC San job classifications (approximately 134 total) and the
number of incumbents (615 total) in each as of January 2021. Note that classifications listed
without incumbents may have positions currently under recruitment, and the actual number
of allocated positions within a classification may be higher due to vacancies. Any
classification marked with an asterisk (*) is a legacy classification with incumbents and will
sunset once vacated. Updated data will be provided upon initiation of the study.
Accountant 2
Accounting Assistant I 0
Accounting Assistant II 4
Accounting Supervisor 3
Administration Manager 1
Administration Supervisor 0
Administrative Assistant 15
Assistant Clerk of the Board 1
Assistant Engineer 2
Assistant General Manager 2
Associate Engineer 11
Automotive/Heavy Equip Asst 1
Automotive/Heavy Equip Tech 3
Boat Captain 1
Buyer 2
Chief Plant Operator 2
CIP Project Manager* 1
Clerk of the Board 1
Construction Insp Supervisor 1
Construction Inspector 8
Contracts Administrator 3
Contracts Supervisor 1
ATTACHMENT A Page 2 of 9 Specification No. CS-2021-1229BD
Contracts/Purchasing Assistant 5
Control Center Operator 2
Controller 1
Cost Estimator 1
Data Mgmt Tech I 5
Data Mgmt Tech II 6
Director of Engineering 1
Director of Environmental Svcs 1
Director of Fin & Admin Svcs 0
Director of Human Resources 1
Director Operations & Maint 0
Electrical Tech I 2
Electrical Tech II 13
Engineer 28
Engineering Assistant I 2
Engineering Assistant II 4
Engineering Associate 2
Engineering Manager 5
Engineering Supervisor 10
Environmental Lab & OM Mgr 1
Environmental Specialist 1
Environmental Supervisor 2
Environmental Technician 4
Executive Assistant 3
Facilities Worker/Builder 2
Facilities Worker/Painter 2
General Manager 1
Graphics Designer 1
Human Resources Analyst 6
Human Resources & Risk Mgr 1
Human Resources Assistant 1
Information Tech Technician II 2
Information Tech Analyst II 4
Information Tech Analyst III 5
Information Tech Supervisor 2
Information Technology Tech I 2
Information Technology Tech II 1
Instrumentation Tech I 1
Instrumentation Tech II 13
I.T. Systems & Operations Mgr 1
Lead Electrical Tech 4
Lead Facilities Worker 1
Lead Instrumentation Tech 2
Lead Mechanic 9
Lead Plant Operator 10
Lead Power Plant Operator 1
Lead Storekeeper 2
Machinist 1
Maintenance Manager 1
Maintenance Specialist 7
Maintenance Superintendent 2
Maintenance Supervisor 14
Maintenance Worker 7
Materials Control Supervisor 0
Mechanic 12
Mobile Crane Operator 2
Office Assistant 5
Operations Manager 1
Operations Supervisor 12
Operator In Training 2
Payroll Technician 2
Planner/Scheduler 1
Plant Operator 29
Power Plant Operator I 1
Power Plant Operator II 8
Prin Environmental Specialist 7
Prin Project Controls Analyst 1
Principal Accountant 3
Principal Buyer 1
Principal Contracts Admin 2
Principal Engineer 0
Principal Human Res Analyst 2
Principal Info Tech Analyst 7
Principal Public Affairs Speclst 0
Principal Staff Analyst 4
Program Assistant 6
Public Affairs Specialist 1
Purchasing & Contracts Mgr 1
Purchasing Supervisor 1
Records Management Specialist 0
Regulatory Specialist 2
Reliability Maint Technician 4
Safety & Health Representative 3
Safety & Health Specialist 1
Safety & Health Supervisor 1
Scientist 2
Secretary to General Manager 1
Security/Emerg Plng Specialist 1
Senior Accountant 1
ATTACHMENT A Page 3 of 9 Specification No. CS-2021-1229BD
Senior Buyer 2
Senior Construction Inspector 6
Senior Contracts Administrator 3
Senior Cost Estimator 1
Senior Engineer 17
Senior Info Tech Analyst 13
Senior Mechanic 31
Senior Planner/ Scheduler 1
Senior Plant Operator 27
Senior Public Affairs Specialist 1
Senior Regulatory Specialist 1
Senior Safety & Health Rep 1
Senior Scientist 4
Senior Staff Analyst 4
Senior Storekeeper 2
Source Control Inspector I 1
Source Control Inspector II 7
Source Control Supervisor 1
Sr. Environmental Specialist 15
Sr. Human Resources Analyst 4
Staff Analyst 4
Storekeeper 5
Welder/Fabricator 3
Classification and compensation studies were most recently completed for all classifications
in 2016, including represented employee group classifications and unrepresented executive
and management classifications. Some of the data from these previous studies was
gathered between 2014 and 2015.
An update and review of positions is necessary to validate/revise classifications and ensure
appropriate compensation levels. OC San’s desired market position is to be competitive
with the comparable labor market for fully qualified employees when base pay, non-base
building pay and/or total compensation comparisons are made. It is understood that the
relative positioning to the market will vary for each job classification and job family, and is a
fluid measure that may vary at different points in time.
3.0 SERVICES TO BE PROVIDED
3.1 During Phases I and II, the Consultant shall perform comprehensive classification
studies to validate/update OC San’s job classifications in accordance with the
requirements described in this Scope of Work. The services provided shall include, but
not be limited to, the following:
3.1.1 Consultant shall conduct orientation meetings with OC San staff, including
representatives from each recognized employee organization, to explain the
scope of the classification studies, methodology and expected results, and
to answer any questions.
3.1.2 Consultant meetings will describe, explain the value from an employee
perspective, and provide instruction to staff on how to complete Position
Description Questionnaire (PDQ) documents, which will be provided to,
completed by and obtained from all active employees on a voluntary basis.
3.1.3 Consultant shall review all completed PDQs to ensure content is sufficient
for successful study completion and follow up with appropriate staff as
needed to obtain necessary information and then document how that
information was obtained for future reference.
3.1.4 Consultant shall interview employees to further analyze and gather additional
information about classification duties, which may include:
3.1.4.1 All incumbents in single position classifications.
3.1.4.2 A sampling of incumbents in multiple position classifications.
3.1.4.3 Incumbents who request an interview, as approved by Human
Resources.
EXHIBIT A Page 4 of 9 Specification No. CS-2021-1229BD
3.1.5 Consultant shall evaluate requests, information, and observations gathered
since the previous study pertaining to the classification and compensation
systems. This includes items such as suggested revisions to classifications
from management, employment standards including educational
requirements and required regulatory certifications, desired updates to job
series, job families and career progression, housekeeping revisions, salary
compaction concerns, etc. The Consultant shall coordinate with the Human
Resources Department (HR) for additional information on these items.
3.1.6 As part of the studies, Consultant will assess the appropriateness of the
following:
3.1.6.1 Work being completed for each position and the relationship of
positions to each other within a job family, division, department
and OC San-wide.
3.1.6.2 Current classification structures, reporting relationships,
differentiating duties/ characteristics, and structures of duties and
responsibilities.
3.1.7 Upon gathering all PDQs and completing employee interviews, Consultant
will update existing class specification duties, responsibilities, and minimum
qualifications and create revised class specifications, providing rationale for
the changes.
3.1.8 Update job families, classification series, benchmark classifications, number
of classifications and classification levels as necessary and to maintain
internal alignment, providing rationale for the changes.
3.1.9 Follow established titling system for all class levels to ensure appropriate and
consistent titling and provide rationale for any recommended changes.
3.1.10 Update physical demands and essential functions for each class
specification in accordance with the Americans with Disabilities Act.
3.1.11 Update essential functions for each class specification relative to the Fair
Labor Standards Act exemptions (29 C.F.R. Part 541).
3.1.12 Ensure that any compensation updates comply with the Equal Pay Act.
3.1.13 Gather and maintain resource information for future reference consisting of
all working papers such as PDQs, class specifications, and related material.
3.2 During Phase III, the Consultant shall conduct comprehensive compensation surveys
for all classifications in accordance with the requirements described in this Scope of
Work. The services provided shall include, but not be limited to, the following:
3.2.1 Review and recommend revisions, as applicable, to OC San’s existing labor
market of the 17 comparison agencies, recently updated in 2015. Note that
any updates would require discussions with the Board of Directors and/or
committees and meet and confer with represented groups. Develop a
presentation for the Board of Directors if recommending modifications to the
list of comparison agencies, including the rationale for changes.
3.2.2 Review and provide recommendations, including rationale, to align OC San’s
compensation structure for all positions in consideration of OC San’s current
pay practices and policies, internal pay relationships and salary compaction,
and the external labor market.
EXHIBIT A Page 5 of 9 Specification No. CS-2021-1229BD
3.2.3 Prepare and submit to HR a compensation survey final report that
summarizes and analyzes salary and total compensation labor market data
for all benchmark job classifications, to include the following:
• Agencies surveyed
• Comparable class title
• Salary range minimum
• Salary range maximum
• Number of job matches
• Geographic cost of labor factor applied (if applicable)
• 50th percentile (market median)
• 75th percentile (OC San’s historic target)
• Market value relative to both 50th percentile (market median) and
75th percentile for benchmark positions
• Percentile placement for each benchmark position for both salary
and total compensation relative to market position
• Percent of OC San salary range above/below the market median
value
• Explanation and outline of methodology used
• Summary and assessment of OC San’s data relative to the market
data points
• Review of current pay structure relative to market data points
• Identification of key issues that may need to be addressed
• Recommendations that include rationale for each key issue
identified and a proposal for implementation
3.2.4 Make recommendations related to any issues identified, including a cost
analysis and fiscal impacts of proposed solutions.
3.3 For the duration of the project, the Consultant shall work under the direction of HR, and
shall provide HR with ongoing and regular reports on the status and any issues
encountered during the project.
3.4 During Phase I, the Consultant shall become familiar with and work within OC San’s
policies and procedures throughout the project, particularly those relating to
compensation and classification; and provide any recommendations for future policy and
procedure changes, as applicable throughout the project, including the rationale for
those changes.
3.5 During Phases II and III, the Consultant shall provide HR a recommended strategy for
implementing identified changes, if any, within the context of OC San policies and
procedures and a represented work environment.
3.6 The following is a breakdown of examples of major tasks to be completed as part of this
project and is not intended to represent a complete task plan. Consultant or the HR may
propose additional tasks as deemed necessary. Any additional work may be included
within the Consultant’s contract with OC San.
EXHIBIT A Page 6 of 9 Specification No. CS-2021-1229BD
3.6.1 PHASE I – INITIATION
3.6.1.1 Task 1 – Review and Finalize Work Plan
The Consultant will meet with HR to identify the tasks to be
accomplished, specific end products, and a project timetable to
satisfactorily complete the overall assignment. HR will provide
background information on classification, salary, and the
organization to assist the Consultant in gaining a general
understanding of OC San operations.
3.6.1.2 Task 2 – Understanding of Other Study Needs
In order to understand and identify specific classification issues,
the Consultant will meet with HR staff. These meetings will
identify some issues that require further classification study.
Subsequent to this task, PDQs can be distributed to employees.
Consultant works with HR to review PDQs for quality.
3.6.1.3 Task 3 – Conduct Employee Meetings
The Consultant will first meet with represented employee groups
to provide an overview of the study and initiate the process. The
Consultant then will meet with all available employees to explain
the purpose of the studies and the process involved. The
employees’ involvement in the studies and their participation in
the job analysis interviews will be an important discussion item for
this meeting. A detailed PDQ will also be distributed and
explained during these sessions.
3.6.1.4 Task 4 – Review Comparison Agencies
Evaluate and recommend any updates, as applicable, to OC
San’s existing labor market of comparison agencies (17), which
were revised in 2015. Review selection factors and which survey
agencies are included. Note that any updates would require
discussions with the Board of Directors and/or committees, and
meet and confer with represented groups. The Consultant will be
involved in the process for any updates.
3.6.2 PHASE II – CLASSIFICATION
3.6.2.1 Task 1 – Complete PDQs
Incumbents will complete a PDQ. Prior to distribution, the
questionnaire will be reviewed with HR staff and customized as
needed to meet the studies’ objectives. The completed
questionnaires will be reviewed by appropriate management for
completeness and accuracy in the process.
3.6.2.2 Task 2 – Review PDQs and Conduct Employee Interviews
and/or Follow-Up Meetings
Once the completed PDQ questionnaires are received, the
Consultant will conduct a detailed analysis of the questionnaires.
Follow-up meetings then may be scheduled and conducted with
incumbents where issues or significant changes are identified.
Phone or online interviews may be conducted if needed.
EXHIBIT A Page 7 of 9 Specification No. CS-2021-1229BD
3.6.2.3 Task 3 – Prepare Draft Classification Recommendations
Each position will be analyzed relative to information provided in
questionnaires and other documentation. The Consultant then
will update/revise class specifications. Draft recommendations
will be reviewed with HR staff and modifications made, as
appropriate, prior to the employee review process.
3.6.2.4 Task 4 – Employee and Stakeholder Review Process
Consultant will assist OC San to ensure employees and other
stakeholders, including management and recognized employee
organizations, are given the opportunity to provide comments and
concerns about class specification changes. Note that proposed
changes should be discussed with HR, as manager and employee
group input is feedback for consideration and not direction.
3.6.2.5 Task 5 – Prepare and Submit Final Recommendations
Following the review process, the class specifications will be
finalized and submitted for approvals. A standardized
classification manual for HR use will be developed to include
documentation regarding the studies’ goals and objectives,
approach and process, all resulting recommendations, and
differences between classification levels. At this time, all
employees that submitted their comments on the drafted class
specs during the review process will be notified in writing by HR
regarding the outcome of their concerns.
3.6.3 PHASE III – COMPENSATION
3.6.3.1 Task 1 – Confirm Survey Methodology
Prior to initiating the compensation survey, the Consultant will
confirm OC San’s current labor market, survey benchmark
classes, survey scope and policy directives regarding labor
market position. Based on the specific goals identified in study
initiation tasks, the Consultant will thoroughly analyze potential
survey agencies and recommend new survey comparables, as
applicable, consistent with OC San’s compensation policies and
objectives. The Consultant will consider information provided by
HR staff.
3.6.3.2 Task 2 – Collect Survey Data
Discuss and consult with HR the compensation survey
methodology and specific items to include and report. This
includes such items as identifying which benefits to survey for total
compensation. Update the list of benchmark positions based on
OC San needs. Collect survey data from comparison agencies.
Apply a geographic cost of labor factor in data analysis for
comparison agencies, if OC San determines this is appropriate.
Perform data analysis utilizing up to 17 comparison agencies, and
potentially provide alternative analyses including a smaller
number of comparison agencies, as requested. The Consultant
may be asked to provide private sector data, both base salary and
total compensation, for reference also.
EXHIBIT A Page 8 of 9 Specification No. CS-2021-1229BD
3.6.3.3 Task 3 – Conduct Internal Relationship/ Alignment Analysis
Using information gathered in the classification phase, the
Consultant will conduct a comprehensive review of internal salary
relationships and salary compaction both within and across
related job families. This analysis will be integrated with the
results of the compensation surveys and will include an analysis
of benchmark classifications and discussion of any resulting
recommendations and rationale.
3.6.3.4 Task 4 – Prepare and Review Draft Compensation Report
The draft compensation report will document the survey process,
all survey analyses, compensation data collected, and related
observations/ recommendations. OC San may request data
analysis utilizing the current 17 comparison agencies and/ or a
smaller number of comparison agencies, as noted above. The
Consultant will provide HR with a draft compensation report
outlining their recommendations for HR staff review and approval.
3.6.3.5 Task 5 – Prepare Final Compensation Report
The final report will incorporate any appropriate revisions
identified and submitted during the review of the draft report.
3.6.3.6 Task 6 – Present Final Compensation Report
The Consultant will make presentations of the studies’ results and
recommendations to OC San’s Board of Directors, Steering
Committee, recognized employee organizations, and any other
Committee or group as needed.
4.0 PROJECT MANAGEMENT
4.1 Periodic Meetings
Prior to commencement of work by the Consultant, a kick-off meeting with HR staff
shall be held to establish appropriate contacts and review the Consultant’s plan to
complete the work.
Consultant shall meet weekly with OC San staff assigned to the project to review
work in progress and receive comments and feedback. Additionally, the Consultant
shall prepare weekly progress meetings and review with the OC San assigned HR
staff and/or HR management.
The Consultant will conduct a final meeting with OC San HR staff to present the
draft final report in accordance with the project schedule.
4.2 Progress Reports
Weekly progress reports shall be prepared by the Consultant and used as the basis
of the meeting between OC San and Consultant staff.
4.3 Confidentiality
The Consultant will work with HR to discuss any findings and recommendations.
Communication with other individuals or groups should be solely for the purpose of
data collection, and the Consultant should not disclose information on study findings
or recommendations except in cases where explicitly requested by HR.
EXHIBIT A Page 9 of 9 Specification No. CS-2021-1229BD
5.0 SCHEDULE
The project shall be completed before November 1, 2021, with project milestones to be
mutually agreed upon by OC San and the Consultant.
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1419 Agenda Date:6/9/2021 Agenda Item No:7.
FROM:James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
PROPOSED ORDINANCE NO.OC SAN-57 UPDATING THE CAPITAL FACILITIES CAPACITY
CHARGES ORDINANCE
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
A. Introduce Ordinance No. OC SAN-57, entitled “An Ordinance of the Board of Directors of the
Orange County Sanitation District Amending Requirements for Accessory Dwelling Unit
Capital Facilities Capacity Charges, Restating Previously Adopted Charges, and Repealing
Ordinance No. OCSD-50 and Ordinance No. OCSD-54”;
B. Motion to read Ordinance No. OC SAN-57 by title only and waive reading of said entire
Ordinance on June 23, 2021;
C. Set July 28, 2021 as the date for the second reading of Ordinance No. OC SAN-57;
D. Receive and file the Carollo Engineers letter dated June 2, 2021; and
E. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law.
BACKGROUND
Orange County Sanitation District (OC San)Ordinance No.OCSD-50 was adopted by the Board of
Directors on March 28,2018 and Ordinance No.OCSD-54 was adopted on May 22,2019 to amend
Ordinance No.OCSD-50 to clarify language.Staff is requesting to repeal both Ordinances and adopt
Ordinance No.OC-SAN 57 to reflect legislative mandates for Accessory Dwelling Units (ADU)and
Junior Accessory Dwelling Units (JADU).
Sections 2.02 (G),2.13 and Table A of Article II reflect legislative mandates for Accessory Dwelling
Units and Sections 2.02 (H)and 2.14 reflect legislative mandates for Junior Accessory Dwelling
Units.
Table A and Table B have been updated with the previously adopted 2021 fiscal year rates.
OC San previously charged Accessory Dwelling Units (ADU)and Junior Accessory Dwelling Units
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File #:2021-1419 Agenda Date:6/9/2021 Agenda Item No:7.
OC San previously charged Accessory Dwelling Units (ADU)and Junior Accessory Dwelling Units
(JADU)Capital Facilities Capacity Charges based upon the number of bedrooms per Ordinance Nos.
OCSD-50 and OCSD-54.Following the adoption of these Ordinances,legislative mandates were
passed for ADU’s and JADU’s.These mandates require capacity charges for ADU’s to be based
upon square footage or fixture units and for JADU’s to be exempt from capacity charges.
OC San contacted Carollo Engineers to review the previous rate study and recommend the square
footage rate that could be used to charge ADU’s.Ordinance No.OC SAN-57 reflects the legislative
mandates,allows for ADU’s to be charged based upon square footage,and exempts JADU’s from
capacity charges.
RELEVANT STANDARDS
·Address legislative mandates
·Sustain 1, 5, 20-year planning horizons
·Collection of appropriate fees for sewer connections
PROBLEM
Since the adoption of Ordinance Nos.OCSD-50 and OCSD-54,the State of California has adopted
legislative mandates for ADU’s and JADU’s that the previous Ordinances did not address.Therefore,
Capital Facilities Capacity Charges could not be collected for ADU’s and JADU’s.
PROPOSED SOLUTION
Adopt Ordinance No. OC SAN-57 and Repeal Ordinance Nos. OCSD-50 and OCSD-54.
TIMING CONCERNS
June 23, 2021: First Reading of the Ordinance
July 28, 2021: Second Reading and Adoption of the Ordinance
September 1, 2021: Ordinance takes effect
RAMIFICATIONS OF NOT TAKING ACTION
Capacity Charges will not be collected for ADU’s, resulting in revenue loss.
PRIOR COMMITTEE/BOARD ACTIONS
May 2019 -Adopted Ordinance No.OCSD-54 (amendment to clarify language in Ordinance No.
OCSD-50).
March 2018 - Adopted Ordinance No. OCSD-50.
December 2017 - Adopted 2017 Facilities Master Plan and received and filed 2017 Rate Study.
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File #:2021-1419 Agenda Date:6/9/2021 Agenda Item No:7.
ADDITIONAL INFORMATION
To ensure the appropriate allocation of costs and fees,OC San engaged an engineering consulting
firm,Carollo Engineers,to provide an independent analysis of OC San’s cash flow modeling and a
cost of service study.The study demonstrates that OC San’s proposed facilities fees are appropriate
and reasonable and will support its projected capital and operating requirements.
Carollo Engineers completed the Facilities Master Plan update.In conjunction with this update,
Carollo was tasked with performing an updated sewer rate study to determine the appropriate rates
going forward to support the Facilities Master Plan update.The Rate Study was received and filed,
and the Facilities Master Plan was adopted by Resolution No.OCSD 17-16,in December 2017 and
the Ordinance concerning Capital Facilities Capacity Charges was adopted in March of 2018.An
amendment to this Ordinance,Ordinance No.OCSD-54,was adopted in May of 2019 to clarify
language.
Since the adoption of Ordinance No.OCSD-54 in May 2019,several legislative mandates governing
ADU’s were enacted.To ensure compliance with these mandates,OC San engaged Carollo
Engineers to provide a new method for calculating ADU capacity charges.To reflect the new
mandates governing ADU capacity charges and the new methodology for levying capacity charges
against ADU’s,OC San should repeal Ordinance Nos.OCSD-50 and OCSD-54 and adopt a new
Ordinance.
ATTACHMENT
The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda
package:
·Proposed Ordinance No. OC SAN-57 (Redline)
·Proposed Ordinance No. OC SAN-57 (Clean)
·Ordinance No. OCSD-54
·Ordinance No. OCSD-50
·Carollo Engineers Letter Dated June 2, 2021
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OCSD-50OC SAN-57--1
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ORDINANCE NO. OCSD-50OC SAN-57
AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE
ORANGE COUNTY SANITATION DISTRICT ADOPTING
CAPITAL FACILITIES CAPACITY CHARGESAMENDING
REQUIREMENTS FOR ACCESSORY DWELLING UNIT
CAPITAL FACILITIES CAPACITY CHARGES, RESTATING
PREVIOUSLY ADOPTED CHARGES, AND REPEALING
ORDINANCE NO. OCSD-40OCSD-50 AND ORDINANCE NO.
OCSD-42OCSD-54
WHEREAS, Health & Safety Code Section 5471 authorizes the Board of
Directors of the Orange County Sanitation District (“District”) to impose fees and other
charges for services and facilities furnished by the District in connection with the District’s
wastewater collection, treatment, disposal, and reuse system.
WHEREAS, the Board of Directors of the Orange County Sanitation District
(the “District”) levies Capital Facilities Capacity Charges (“Capacity Charges”) to fund new
capital projects or improve existing capital projects.
WHEREAS, the District will use revenues collected from Capacity Charges
to pay for capital projects identified in the District’s 2017 Facilities Master Plan (“Master
Plan”).
WHEREAS, the District recentlypreviously retained Carollo Engineers to
evaluate the District’s projected revenue needs and recommend service fees and Capacity
Charges for the period July 1, 2018 to June 30, 2023. In December of 2017, Carollo
Engineers issued its “Final Report and Recommendations on Wastewater Rates, Fees,
and Charges” (“Carollo Report”). The District’s Board of Directors received the Carollo
Report on December 20, 2017, and the Carollo Report is on file with the District; and
WHEREAS, the recommendations set forth in the Carollo Report are based
on various studies and plans including, among others, financial forecasts and the District’s
2017 Facilities Master Plan (“Master Plan”). The Master Plan identified the capital
improvement projects that will be needed over the next 20 years, and estimated the cost
of each project. The District’s Board of Directors adopted the Master Plan on December
20, 2017; and
WHEREAS, the District recently retained Carollo Engineers to recommend
a formula for levying Capacity Charges against non-exempt accessory dwelling units that
complies with newly enacted legislative mandates codifed in Government Code Section
65852.2. On June 2, 2021, Carollo Engineers provided its accessory dwelling unit capacity
charge recommendation to the District (the “Carollo Letter”), which the District hereby
adopts. The Carollo Letter is on file with the District.
OCSD-50OC SAN-57--2
1585788.1
WHEREAS, the District finds there is a reasonable relationship between the
Capacity Charge’s use and the type of development project on which the capacity charge
is imposed. The District’s determination is based on recommendations provided by Carollo
Engineers in the Carollo Report and the Carollo Letter.
WHEREAS, the District finds there is a reasonable relationship between the
need for the capital facility and the type of development project on which the Capacity
Charges is imposed. The District’s determination is based on recommendations provided
by Carollo Engineers in the Carollo Report and the Carollo Letter.
WHEREAS, the District finds there is a reasonable relationship between the
amount of the Capacity Charges and the cost of the capital facility attributable to the
development on which the fee is imposed. The District’s determination is based on
recommendations provided by Carollo Engineers in the Carollo Report and the Carollo
Letter.
WHEREAS, The District finds the Capacity Charges do not exceed the
estimated reasonable cost of providing sewer services to any parcel. The District’s
determination is based on recommendations provided by Carollo Engineers in the Carollo
Report and the Carollo Letter.
WHEREAS, the District wishes to exempt certain accessory dwelling units
and all junior accessory dwelling units from capacity charges pursuant to Government
Code Sections 65852.2 and 65852.22, and
WHEREAS, the District wishes to update the rate schedules provided in
Table A and Table B of Article II to reflect the previously adopted 2021-year rates.
WHEREAS, the District imposes Capital Facilities Capacity Charges on new
users and Supplemental Capital Facilities Capacity Charges on specified existing users.
These charges are set forth in Ordinance No. OCSD-40, as amended by Ordinance No.
OCSD-42; and
WHEREAS, the District recently retained Carollo Engineers to evaluate the
District’s projected revenue needs and recommend service fees and capacity charges for
the period July 1, 2018 to June 30, 2023. In December of 2017, Carollo Engineers issued
its “Final Report and Recommendations on Wastewater Rates, Fees, and Charges”
(“Carollo Report”). The District’s Board of Directors received the Carollo Report on
December 20, 2017, and the Carollo Report is on file with the District; and
WHEREAS, the Carollo Report recommended that the District (1) increase the residential
CFCC from $3,855 per equivalent dwelling unit to $5,719 per equivalent dwelling unit by
2023, and (2) increase the commercial-industrial CFCC from $2,000 per 1,000 square feet
to $3,639 per 1,000 square feet by 2023; and
OCSD-50OC SAN-57--3
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WHEREAS, the recommendations set forth in the Carollo Report are based on various
studies and plans including, among others, financial forecasts and the District’s 2017
Facilities Master Plan (“Master Plan”). The Master Plan identified the capital improvement
projects that will be needed over the next 20 years, and estimated the cost of each project.
The District’s Board of Directors adopted the Master Plan on December 20, 2017; and
WHEREAS, on Wednesday, March 28, 2018 at 6:00 P.M., in the District’s Boardroom on
the first floor of its Administration Building located at 10844 Ellis Avenue, Fountain Valley,
California, the District held a properly noticed public hearing, and received and considered
comments concerning the proposed charges; and
WHEREAS, the Board of Directors has carefully reviewed the Carollo Report and
considered oral and written comments from the public, Board Members, District staff, and
District consultants made at and prior to the March 28, 2018 public hearing;
NOW, THEREFORE, the Board of Directors of the Orange County Sanitation
District does hereby ORDAIN:
SECTION I. Adopt Capital Facilities Capacity Charges
TABLE OF CONTENTS
ARTICLE I: RECITAL OF FINDINGS
Section 1.01. Findings – Declaration of Intent
ARTICLE II: CAPITAL FACILITIES CAPACITY CHARGES
Section 2.01. Purpose and Scope
Section 2.02. Definitions
Section 2.03. Connection Permits: Required
Section 2.04. Capital Facilities Capacity Charge: Payment
Section 2.05. Capital Facilities Capacity Charge:
Time of Payment
Section 2.06. Capital Facilities Capacity Charge:
Schedule of Amounts
Table A Capital Facilities Capacity Charges – Non-Residential,
Residential Accessory Structures, and Accessory
Dwelling Units
Table B Capital Facilities Capacity Charges – Residential
Table C Plan Check and Inspection Fee Schedule
Section 2.07. Supplemental Capital Facilities Capacity
Charge: Significant Commercial – Industrial
Users – Special Purpose Dischargers – Definitions
Section 2.08. Supplemental Capital Facilities Capacity Charge: New
Significant Commercial – Industrial Users
OCSD-50OC SAN-57--4
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Section 2.09. Supplemental Capital Facilities Capacity
Charge: New Special Purpose Dischargers
Section 2.10. Supplemental Capital Facilities Capacity Charge:
Existing Significant Commercial – Industrial Users –
Special Purpose Dischargers
Table D Supplemental Capital Facilities Capacity
Charges
Section 2.11. Capital Facilities Capacity Charge: Replacement
Section 2.12. Capital Facilities Capacity Charge: Remodeled
Section 2.13. Accessory Dwelling UnitsCapital Facilities Capacity
Charge Exemption: Accesory Dwelling Units
Section 2.14 Junior Accessory Dwelling Units
Section 2.1415. Payment of Capital Facilities Capacity Charge: Off-
Site Sewers Not Part of Master Plan Relative to
Reimbursement Agreements
Section 2.1516. No Refund or Transfer
Section 2.1617. Baseline Transferability
Section 2.1718. Capital Facilities Capacity Charge: Annual Updates
Section 2.1819. Affordable Housing Projects
ARTICLE III: MISCELLANEOUS
Section 4.013.01. Application of Ordinance
Section 4.023.02. Exceptions
Section 4.033.03. Out of Area Sewer Service Agreements
ARTICLE I
RECITAL OF FINDINGS
Section 1.01. Findings. Based on substantial evidence in the record, the
Board of Directors hereby finds as follows:
A. The District operates a system for the collection, treatment, disposal,
and reuse of wastewater (“System”). The System protects human health and the
environment from the potentially harmful effects of wastewater.
B. The District regularly constructs, reconstructs, repairs, and/or
rehabilitates System facilities through capital improvement projects (“Capital Projects”).
The District recovers the cost of Capital Projects through Capital Facilities Capacity
Charges imposed on new users and Supplemental Capital Facilities Capacity Charges
imposed on specified existing users. This Ordinance imposes Capital Facilities Capacity
Charges and Supplemental Capital Facilities Capacity Charges as recommended in the
Carollo Report.
OCSD-50OC SAN-57--5
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C. The District will use the revenues from Capital Facilities Capacity
Charges and the Supplemental Capital Facilities Capacity Charges to fund future Capital
Projects and/or repay principal and interest on debt incurred in connection with past
Capital Projects. The revenues shall not be used for the acquisition or construction of new
local street sewers or laterals as distinguished from main trunk, interceptor and outfall
sewers.
D. The Capital Facilities Capacity Charges and Supplemental Capital
Facilities Capacity Charges established by this ordinance are based on the information
and analysis set forth in the Carollo Report and the Master Plan, both of which were made
available to the public in accordance with Government Code Section 66016 and other
provisions of law.
E. The Capital Facilities Capacity Charges and Supplemental Capital
Facilities Capacity Charges established by this ordinance do not exceed the estimated
reasonable cost of providing the wastewater collection, treatment, disposal, and reuse
services for which the fees are charged. The manner in which the costs are allocated to
each payor bears a fair or reasonable relationship to the payor's burdens on, and benefits
received from, the District’s System.
F. The Capital Facilities Capacity Charges and Supplemental Capital
Facilities Capacity Charges established by this ordinance will retire debt and fund capital
projects necessary to maintain service within the District’s existing service area.
Therefore, adoption of this Ordinance is statutorily exempt under the California
Environmental Quality Act pursuant to the provisions of Public Resources Code Section
21080(b)(8) and California Code of Regulations Section 15273(a).
G. The Capital Facilities Capacity Charges and Supplemental Capital
Facilities Capacity Charges established by this ordinance are not imposed as an “incident
of property ownership” within the meaning of Article XIIID of the California Constitution.
Thus, the substantive and procedural requirements of Article XIIID do not apply.
H. The Capital Facilities Capacity Charges and Supplemental Capital
Facilities Capacity Charges established by this ordinance have been approved by the
District’s Board of Directors at a noticed public meeting, all in accordance with applicable
provisions of law.
ARTICLE II
CAPITAL FACILITIES CAPACITY CHARGES
Section 2.01. Purpose and Scope. This Ordinance is designed to ensure
that each user pays his or her fair share of the costs of Capital Projects, based on the
burden that each user places on the System. The District will use revenues generated by
this Ordinance to (i) fund future Capital Projects, and (ii) repay principal and interest on
debt incurred in connection with past Capital Projects.
OCSD-50OC SAN-57--6
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Section 2.02. Definitions.
A. “Actual construction costs” include the cost of all activities necessary
or incidental to the construction of the District facilitiesy, such as financing, planning,
designing, acquisition of the property or interests in the property, construction,
reconstruction, rehabilitation, and repair.
B. “Capital Facilities Capacity Charge (Capacity Charge)” means a one-
time, non-discriminatory charge imposed at the time a building or structure is newly
connected to the District’s System, directly or indirectly, or an existing structure or category
of use is expanded or increased. Said charge is to pay for the District facilities in existence
at the time the charge is imposed, or to pay for new facilities to be constructed in the future,
that are of benefit to the property being charged. This charge does not apply to temporary
facilities or operations that are regulated under the provisions of a Special Purpose
Discharge Permit. A schedule of the Capital Facilities Capacity Charges specified herein
will be on file in the Office of the Board SecretaryClerk of the Board of the District, and in
the Building Department of each City within the District.
C. “Connection fee” means a fee equal to the cost necessary to
physically connect a property to the District’s System, including but not limited to,
installation of meters, meter boxes, pipelines, and appurtenances to make the connection
and which fee does not exceed the actual cost of labor, materials, and overhead for the
installation of those facilities.
D. “Non-discriminatory” means that the Capital Facilities Capacity
Charge does not exceed an amount determined on the basis of the same objective criteria
and methodology applicable to comparable public or non-public users, and is not in excess
of the proportionate share of the cost of the District’s facilities of benefit to the person or
property being charged, based upon the proportionate share of use of those facilities.
E. “Public agency” means the United States or any of its agencies, the
State or any of its agencies, the Regents of the University of California, a county, city,
district, school district, local or regional public authority, or any other political entity,
subdivision or public corporation of the State.
F. The Supplemental Capital Facilities Capacity Charge, as provided for
in Sections 2.07, 2.08, 2.09, and 2.10 of this Ordinance, is an annual charge payable to
the District on a quarterly or annual basis, as determined by the District. Said charge is
required to be paid by dischargers that exceed the maximum quantity of flow or
constituents (BOD or SS) allowed as a base use for which the Capacity Charge is paid.
G. “Accessory Dwelling Unit (ADU)” means an attached or detached
residential dwelling unit that provides complete independent living facilities for one or more
persons and is located on a lot with a proposed or existing primary residence. It shall
include permanent provisions for living, sleeping, eating, cooking, and sanitation on the
same parcel as the single-family or multifamily dwelling is or will be situated.which provides
complete independent living facilities for one or more persons, includes permanent
provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the
OCSD-50OC SAN-57--7
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single-family dwelling is situated, and has been approved by a local agency pursuant to
Government Code Section 65852.2 and/or a local ordinance.
H. “Junior Accessory Dwelling Unit (JADU)” means a unit that is no more
than 500 square feet in size and contained entirely within a single-family residence. A
junior accessory dwelling unit may include separate sanitation facilities, or may share
sanitation facilities with the existing structure.
Section 2.03. Connection Permits: Required.
A. Connection permits are required of each and every dwelling unit, and
each commercial or industrial building, and structure connecting directly or indirectly to the
District’s sewerage system facilities. Included are the connections of laterals to local
municipal sewerage facilities, and the connection of local municipal sewerage facilities and
laterals to the District’s facilities. Multiple detached structures on a single parcel of
property shall each be required to obtain a connection permit.
B. Except as authorized by the issuance of a Special Purpose Discharge
Permit under Sections 305 – 305.6 of the District’s Wastewater Discharge Regulations, or
as authorized pursuant to a special extra territorial service agreement approved by the
Board of Directors, no permit shall be valid unless the real property to be served by use of
the permit is included within the boundaries of the District and within the boundaries of a
local sewering agency authorized to maintain public sewering facilities. However, a permit,
as authorized above, may be issued for property to be served outside the boundaries of a
local sewering agency if a local sewering agency makes application for the issuance of
such permit.
There will be a non-discriminatory Capital Facilities Capacity Charge assessed to
public agencies for connecting directly or indirectly to the District’s sewerage system
facilities, and a connection permit must be obtained.
Section 2.04. Capital Facilities Capacity Charge: Payment Required. No
application for a permit for a connection of a structure to the District’s sewerage facility,
or to any sewerage facility which discharges into the District sewerage facility, shall be
approved, nor a permit issued, until the District’s Capital Facilities Capacity Charge is paid
by the applicant, except as provided for discharges under a Special Purpose Discharge
Permit. No connection permit shall be issued unless there is an established category of
use of the property to be served or a valid building permit issued which establishes the
category of use of said property.
Section 2.05. Capital Facilities Capacity Charge: Time of Payment.
A. Payment of the Capital Facilities Capacity Charge established by this
Ordinance for connection to the District’s sewerage system facilities shall be required at
the time of issuance of the building permit for all construction within the District, except in
the case of a building legally exempt from the requirement of obtaining a permit. The
payment of the Capital Facilities Capacity Charge for such exempt buildings will be
required at the time of and prior to the issuing of a plumbing connection permit for any
OCSD-50OC SAN-57--8
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construction within the territorial limits of the District, or if none, prior to the issuance of a
Certificate of Occupancy.
B. Upon application of any property owner seeking to connect to the
District’s sewerage system, the General Manager or his designee, upon a finding of
compelling need, may, pursuant to the authority of California Health & Safety Code Section
5474, approve of an agreement with the property owner for the payment of the applicable
connection charge and/or annexation fees in installment payments over a period of not to
exceed five (5) years, bearing an interest rate on the unpaid balance of not to exceed ten
(10%) percent per annum and that the charges and interest shall constitute a lien on the
property.
Section 2.06. Capital Facilities Capacity Charge and Plan Check and
Inspection Fees: Schedule of Amounts.
A. Every person or entity connecting any new or expanded building or
structure to the District’s system facilities shall pay a Capital Facilities Capacity Charge in
the amount for the applicable category of use set forth on Table A & B, below.
B. Every person or entity connecting any new or expanded building or
structure directly to the District’s local or regional system facilities shall pay Plan Check
and Inspection Fees in the amount set forth n Table C, below.
TABLE A
CAPITAL FACILITIES CAPACITY CHARGES (CFCC)
NON-RESIDENTIAL,RESIDENTIAL ACCESSORY STRUCTURES, AND ACCESSORY
DWELLING UNITS
Use Category Rate Basis Base Charge
Low Demand2 Per 1,000 square feet1 $ 332336.001
Average Demand4,5 Per 1,000 square feet $2,0662088.001
High Demand3 Per 1,000 square feet $4,9084962.001
1Provided that the minimum Capital Facilities Capacity Charge for such new construction
shall be $4,2285346; and all calculations shall be on a 1,000 square foot, or portion
thereof, basis.
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2Low Demand connections are the following categories of users: Nurseries; Warehouses;
Churches; Truck Terminals; RV Parks; RV Storage Yards; Lumber/Construction Yards;
Public Storage Buildings; and other facilities whose wastewater discharge is similar to
these listed categories.
3High Demand connections are the following categories of users: Food/Beverage Service
Establishments; Supermarkets (with bakery, meat counter, and/or food service); Car
Washes; Coin Laundries; Amusement Parks; Shopping Centers with one or more
Food/Beverage Service Establishments; Food Courts; Food Processing Facilities; Textile
Manufacturers; Breweries; and other facilities whose wastewater discharge is similar to
these listed categories.
4All other connections are Average Demand users including: Church Offices and Schools;
Hotels, Shopping Centers/Strip Malls without food/beverage service establishments,
Music Halls without food facilities, Office buildings, Senior Housing with individual living
units without kitchens but with a common kitchen
5 Residential Accessory Structures such as workshops and hobby shops that connect to
the sewer, will be charged at the average demand rate and the minimum charge does not
apply.
6 Accessory Dwelling Units will be charged at the average demand rate and the minimum
charge does not apply.
TABLE B
CAPITAL FACILITIES CAPACITY CHARGES (CFCC)
RESIDENTIAL (PER UNIT)*
Single Family Residential (SFR)1 Base Charge
5+ Bedrooms $5,877.007,430.00
4 Bedrooms $5,031.006,362.00
3 Bedrooms $4,228.005,346.00
2 Bedrooms $3,425.004,331.00
1 Bedroom $2,621.003,314.00
Multi-Family Residential (MFR)2 Base Charge
4+ Bedrooms $4,566.005,774.00
3 Bedrooms $3,763.004,758.00
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2 Bedrooms $2,960.003,743.00
1 Bedroom $2,114.002,672.00
Studio3 $1,353.001,710.00
*The Base Rate for Residential CFCC is the 3 Bedroom SFR with all others having a rate
that is a percentage of the base rate depending on the size of the unit. The schedule for
the base rate shall be as follows:
2018-19 2019-20 2020-21 2021-22 2022-23
$4,228 $4,601 $4,973 $5,346 $5,719
1 Bedroom additions are considered a change of use and a CFCC must be paid. Enclosed
loft additions, bonus rooms, offices, workout rooms, media rooms, libraries and any other
enclosed addition which could potentially be used as a bedroom are included in this
category. The classification of these additions will be reviewed and determined by staff.
2 MFR units consist of multiple attached units that are not sold individually and receive one
secured property tax bill such as apartments. Multiple attached units that are not sold
individually and are senior housing with individual living units that include a kitchen are
considered MFR units.
3 Studio – one single room with no separating doors or openings leading to another part of
the room (except for a bathroom).
Live/Work units will be charged at the residential rate for the living quarters and at the non-
residential rate for the work portion square footage.
TABLE C
PLAN CHECK AND INSPECTION FEE TABLE
INSPECTION FEES FOR SINGLE CONNECTIONS
Lateral installation to property line:
2018-19 2019-20 2020-21 2021-22 2022-23
$575.00 $650.00 $725.00 $800.00 $875.00
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Lateral Installation to with optional cleanout to existing manhole:
2018-19 2019-20 2020-21 2021-22 2022-23
$650.00 $800.00 $950.00 $1,050.00 $1,150.00
Core drilling into existing manhole base – add:
2018-19 2019-20 2020-21 2021-22 2022-23
$600.00 $900.00 $1,200.00 $1,450.00 $1,500.00
Installation of new manhole over existing sewer:
2018-19 2019-20 2020-21 2021-22 2022-23
$1,200.00 $1,400.00 $1,600.00 $1,800.00 $1,900.00
Gas Flap Installation – add:
2018-19 2019-20 2020-21 2021-22 2022-23
$450.00 $455.00 $460.00 $465.00 $470.00
INSPECTION FEES FOR MULTIPLE CONNECTIONS
Plan check and inspection fees of 20 percent of the sewer construction cost for new tract
sewers, sewer extensions or special facilities are required when plans are submitted for
plan check.
If additional funds are needed, they must be deposited as soon as they are requested to
complete the inspection on the project. If funds are required after the work is completed,
they must be paid before the District finals the sewer project.
Section 2.07. Supplemental Capital Facilities Capacity Charge: Significant
Commercial – Industrial Users and Significant Special Purpose Dischargers – Definitions.
A. A Significant Commercial – Industrial User (“SCIU”) is any person or
entity who discharges commercial or industrial process flow, but excluding domestic
sewage flow, in an amount greater than 25,000 gallons per day (“gpd”), or Biochemical
Oxygen Demand (“BOD”) greater than 150 pounds per day, or Suspended Solids (“SS”)
greater than 150 pounds per day, or who is required to obtain a Waste Discharge Permit,
as prescribed by Article 3 of the District’s Wastewater Regulations, due to having federally
or the District regulated or significant discharges.
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B. A Significant Special Purpose Discharger ("SSPD") is any person or
entity who discharges to the sewer system wastewater or process flow in an amount
greater than 25,000 gpd (excluding domestic, industrial or commercial) and who is
required to obtain a Special Purpose Discharge Permit as prescribed in Section 305 of the
District’s Wastewater Regulations. A Special Purpose Discharger (SPD) discharges
25,000 gpd or less.
C. An Existing SCIU or SSPD is any SCIU or SSPD connected and
discharging to the District’s system prior to January 1, 2000.
D. A New SCIU or SSPD is any user who connects and discharges to
the District’s System pursuant to a Waste Discharge Permit issued on or after January 1,
2000; or if previously connected and not an SCIU, as defined in Subparagraphs 2.07A and
B above, but, subsequent to January 1, 2000, increases flow, or BOD, or SS to a level as
to constitute an SCIU or SSPD.
E. The maximum discharge allowed to a user, for which a base Capital
Facilities Capacity Charge is paid, as per Table A, above, is 25,000 gallons per day (“gpd”),
or 150 pounds per day each of BOD and SS (the “base use”). Discharge of flow, or BOD,
or SS in amounts greater than allowed by this Subsection 2.07E shall be subject to the
provisions of Sections 2.08 and 2.09 hereof.
F. Each Existing SCIU shall have a baseline of allowed discharge of
flow, and BOD, and SS established by the the District as of January 1, 2000. The baseline
shall be based upon the discharge for Fiscal Year 1998-99, or upon such other discharge
data which the District determines is representative of the user’s actual annual discharge
to the sewerage system. Dischargers who are deemed to be SCIU’s solely because of
the requirements to obtain a Waste Discharge Permit, pursuant to Section 2.07A above,
shall have a minimum baseline established as follows: Flow – 25,000 gallons per day;
BOD – 150 pounds per day; and SS – 150 pounds per day. The SCIU shall be authorized
to discharge flow, and BOD, and SS up to the baseline amounts without payment of a
Supplemental Capital Facilities Capacity Charge.
G. Each Existing SPD shall have a baseline of 25,000 gpd. The Existing
SPD shall be authorized to discharge flow up to 25,000 gpd without payment of a
Supplemental Capital Facilities Capacity Charge.
H. The Supplemental Capital Facilities Capacity Charge, as prescribed
by Sections 2.08, 2.09, and 2.10 below, shall be payable commencing with the effective
date of this Ordinance.
Section 2.08. Supplemental Capital Facilities Capacity Charge: New
Significant Commercial – Industrial Users. In addition to the base Capital Facilities
Capacity Charge, as prescribed in Table A, for commercial – industrial use category
properties, all New SCIU’s shall pay a Supplemental Capital Facilities Capacity Charge for
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each gallon of flow, or pound of BOD, or SS, exceeding the base use discharge
maximums, in the amount shown in Table D.
Section 2.09. Supplemental Capital Facilities Capacity Charge: Significant
Special Purpose Dischargers. All SSPDs shall pay a Supplemental Capital Facilities
Capacity Charge of $.001948 per gallon per day for each gallon of flow exceeding 25,000
gallons per day.
Section 2.10. Supplemental Capital Facilities Capacity Charge: Existing
Significant Commercial – Industrial Users and Special Purpose Dischargers.
A. All Existing Significant Commercial – Industrial Users connected to
and discharging to the District’s System shall be required to pay a Supplemental Capital
Facilities Capacity Charge upon the occurrence of either (i) an increase of discharge flow
of 25,000 gallons per day (“gpd”), or 25% per day over its established baseline
authorization, whichever is lesser; or (ii) an increase of either BOD or SS discharge of 150
pounds each per day, or 25% each per day, whichever is lesser, over its established
baseline authorization. The daily averages will be based on the daily discharges for a
year, utilizing discharge records and reports of the discharger or the District.
B. The Supplemental Capital Facilities Capacity Charge shall be in the
following amounts for each component that is increased as provided in Section 2.10A
above.
TABLE D
SUPPLEMENTAL CAPITAL FACILITIES CAPACITY CHARGES
Daily Charge
2018-19 2019-20 2020-21 2021-22 2022-23
FLOW $0.001948 $0.001960 $0.001972 $0.001984 $0.001996
BOD $0.427550 $0.440380 $0.453590 $0.467200 $0.481210
SS $0.231510 $0.240770 $0.250410 $0.260420 $0.270840
FLOW – Gallons Per Day
BOD – Pounds Per Day
SS – Pounds Per Day
C. All Existing SPDs connected and discharging to the sewer shall be
required to pay a Supplemental Capital Facilities Capacity Charge upon occurrence of an
increase of discharge flow over 25,000 gpd. The Supplemental Capital Facilities Capacity
Charge shall be $ 0.001948 per gallon per day of discharge for each gallon above 25,000
gpd.
OCSD-50OC SAN-57--
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D. The Supplemental Capital Facilities Capacity Charge shall be
calculated on the basis of the average daily quantity of discharge in excess of the User’s
baseline or 25,000 gpd for SPDs. The daily averages will be based on the daily discharges
for a year, utilizing discharge records and reports of the District.
Section 2.11. Capital Facilities Capacity Charge: Replacement Structures.
For new construction replacing former structures, the Capital Facilities Capacity Charge
shall be calculated and paid to the District on the rate basis of the category of the new use
and the amounts as set forth in Tables A and B, less a credit amount, up to the amount of
the new Capital Facilities Capacity Charge, equal to a charge, as prescribed in Tables A
and B that would be for the prior category of use which was terminated and removed.
Section 2.12. Capital Facilities Capacity Charge: Remodeled Structures. In
the case of existing structures connected to the District’s system facilities, to which new
construction or alteration is made to change or increase the category of use or number of
bedrooms, a Capital Facilities Capacity Charge shall be calculated and paid to the District
on the rate basis of the category of the new use and the amounts as set forth in Tables A
and B, less a credit amount, up to the amount of the new Capital Facilities Capacity
Charge, equal to a charge, as prescribed in Tables A and B for the prior category of use.
Section 2.13. Accessory Dwelling Units. Notwithstanding Section 2.12,
pursuant to Government Code Section 65852.2, the District shall not collect Capital
Facilities Capacity Charges from any ADU if the unit is contained within the existing space
of a single-family residence or accessory structure, has independent exterior access from
the existing residence, and the side and rear setbacks are sufficient for fire safety. all the
following conditions are met:
(a) the ADU is attached to a single-family residence or accessory structure;
(b) the ADU is built after the single-family residence;
(c) the ADU’s side and rear setbacks are sufficient for fire safety;
(d) the ADU has independent exterior access from the existing single-family
residence;
(e) the ADU does not expand the single-family residence;
(f) the ADU does not expand an accessory structure by more than 150 square feet
and that expansion is only used to accommodate ingress and egress and;
(g) there are no other ADUs on the property.
Section 2.14. Junior Accessory Dwelling Units. Notwithstanding Section
2.12, pursuant to Government Code Section 65852.2, the District shall not collect Capital
Facilities Capacity Charges from a JADU integrated into an existing single-family
residence if a local agency approved the JADU pursuant to Government Code Section
65852.22 and a local ordinance.
Section 2.1415. Payment of Capital Facilities Capacity Charge: Off-Site
Sewers Not Part of Master Plan Relative to Reimbursement Agreements. A charge for
connection to off-site sewers which are not included as part of the District Master Plan and
OCSD-50OC SAN-57--
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for which a Non-Master Plan Reimbursement Agreement has been entered into between
the District and the property owner, shall be paid in the amount provided for in said
Agreement, to be known as a Non-Master Plan Capital Facilities Capacity Charge. The
amount set forth in said Agreement shall be the amount due, provided the original
Agreement is still in force. The Non-Master Plan Capital Facilities Capacity Charge shall
be in addition to the other Capital Facilities Capacity Charges provided for in Sections 2.06
through 2.10 hereinabove, established for property connecting to said facilities.
Section 2.1516. No Refund or Transfer. A Capital Facilities Capacity Charge
is paid for the connection of a specific building or structure on a parcel of property. No
refund of any charge shall be made because of non-use or change of use, or any other
reason once the connection has been made. If the connection is not made and the request
for connection is withdrawn within 12 months of the payment date, the charges paid will
be refunded upon establishing proof from the City or County of a canceled permit. The
connection permit is non-transferable to any other parcel of property.
Section 2.1617. Baseline Transferability. The baseline of allowed discharge of
flow, BOD and SS used to calculate a Supplemental Capital Facilities Capacity Charge
shall not be transferable to a different property, nor shall a credit for such previously
existing baseline be provided to another SCIU concurrently or subsequently occupying the
same property for a different use. Each such SCIU shall pay Supplemental Capital
Facilities Capacity Charges in accordance with Section 2.08 above.
Section 2.1718. Capital Facilities Capacity Charge Annual Updates. The
Capital Facilities Capacity Charge is based upon the most recently completed Facilities
Master Plan. This The non-residential charge will be updated annually based upon the
increase in the Engineering News-Record construction cost index for Los Angeles as of
December of the prior year until the completion of the next Rate Study. The residential
charge will be updated based upon the schedule of base fees in Table B.
Section 2.1819. Affordable Housing Projects. Per Resolution OCSD 11-02,
development projects that include lower income housing units shall not be denied approval
of an application for service, nor shall conditions be imposed thereon or services reduced
which are applied for, unless the District makes specific written findings that the denial,
condition, or reduction is necessary due to the existence of one or more of the following:
(a) insufficient water supply or insufficient water treatment or distribution
capacity;
(b) a State Department of Health Services order prohibiting new water
connections;
(c) insufficient sewer treatment or collection capacity;
(d) a Regional Water Quality Control Board order prohibiting new sewer
connections;
(e) the applicant has failed to agree to reasonable terms and conditions
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ARTICLE III
MISCELLANEOUS
Section 4.013:01. Application of Ordinance. The provisions of this
Ordinance shall be in addition to the provisions of the District’s Wastewater Discharge
Regulations for use of the District’s sewage facilities, including provisions for payment of
charges or fees related thereto; the District’s ordinance establishing Fees Concerning
Annexations of Territory to the District; and any other the District Ordinances and
Resolutions not in conflict herewith.
Section 4.023:02. Exceptions. The provisions of this Ordinance shall
apply to all owners of properties within the District, including those properties otherwise
deemed exempt from payment of taxes or assessments by provisions of the State
Constitution or statute, including properties owned by other public agencies or tax-exempt
organizations, except as expressly provided herein.
Section 4.033:03 Out of Area Sewer Service Agreements. The District is
empowered to contract for the transport, treatment and disposal of wastewaters originating
within areas outside of the District if it is in the best interest of the District to do so. These
Out of Area Sewer Service Agreements will establish fees and charges relative to the
services provided by the District for each individual agreement.
The Board of Directors of the Orange County Sanitation District does further hereby
ORDAIN:
SECTION II. Severability. If any provision of this Ordinance, or the application to any
person or circumstances is held invalid by order of Court, the remainder of the Ordinance,
or the application of such provision to other persons or other circumstances, shall not be
affected.
SECTION III. Effective Date. This Ordinance shall take effect July 1, 2018September 1,
2021.
SECTION IV. Repeal. Ordinance No. OCSD-40 50 and Ordinance No. OCSD-42 54 are
hereby repealed.
SECTION V. Certification and Publication. The Clerk of the Board shall certify to the
adoption of this Ordinance, and shall cause a summary to be published in a newspaper of
general circulation as required by law.
OCSD-50OC SAN-57--
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1585788.1
PASSED AND ADOPTED by a vote of not less than two-thirds of the Board of
Directors of the Orange County Sanitation District at a Regular Meeting held on March 28,
2018.July 28, 2021
______________________________
Gregory C. Sebourn, PLSDavid John
Shawver
Chairman, Board of Directors
Orange County Sanitation District
ATTEST:
____________________________________
Kelly A. Lore, MMC
Clerk of the Board
Orange County Sanitation District
APPROVED AS TO FORM:
____________________________________
Bradley R. Hogin
General Counsel
Orange County Sanitation District
STATE OF CALIFORNIA )
)SS.
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of Orange County Sanitation District, do
hereby certify that the above and foregoing Ordinance No. OCSD-50OC SAN-57 was
OCSD-50OC SAN-57--
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1585788.1
introduced for first reading at a regular meeting of said Board on the 28th 23rd day of
February 2018June 2021, and passed and adopted by a vote of not less than two-thirds
at a regular meeting of said Board on the 28th day of March 2018July 2021, by the
following vote, to wit:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
Orange County Sanitation District this 28th day of March, 2018July 2021.
_______________________________
Kelly A. Lore, MMC
Clerk of the Board
Orange County Sanitation District
OC SAN-57-1
1585788.1
ORDINANCE NO. OC SAN-57
AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE
ORANGE COUNTY SANITATION DISTRICT AMENDING
REQUIREMENTS FOR ACCESSORY DWELLING UNIT
CAPITAL FACILITIES CAPACITY CHARGES, RESTATING
PREVIOUSLY ADOPTED CHARGES, AND REPEALING
ORDINANCE NO. OCSD-50 AND ORDINANCE NO. OCSD-54
WHEREAS, Health & Safety Code Section 5471 authorizes the Board of
Directors of the Orange County Sanitation District (“District”) to impose fees and other
charges for services and facilities furnished by the District in connection with the District’s
wastewater collection, treatment, disposal, and reuse system.
WHEREAS, the Board of Directors of the Orange County Sanitation District
(the “District”) levies Capital Facilities Capacity Charges (“Capacity Charges”) to fund new
capital projects or improve existing capital projects.
WHEREAS, the District will use revenues collected from Capacity Charges
to pay for capital projects identified in the District’s 2017 Facilities Master Plan (“Master
Plan”).
WHEREAS, the District previously retained Carollo Engineers to evaluate
the District’s projected revenue needs and recommend service fees and Capacity Charges
for the period July 1, 2018 to June 30, 2023. In December of 2017, Carollo Engineers
issued its “Final Report and Recommendations on Wastewater Rates, Fees, and Charges”
(“Carollo Report”). The District’s Board of Directors received the Carollo Report on
December 20, 2017, and the Carollo Report is on file with the District; and
WHEREAS, the recommendations set forth in the Carollo Report are based
on various studies and plans including, among others, financial forecasts and the District’s
2017 Facilities Master Plan (“Master Plan”). The Master Plan identified the capital
improvement projects that will be needed over the next 20 years, and estimated the cost
of each project. The District’s Board of Directors adopted the Master Plan on December
20, 2017; and
WHEREAS, the District recently retained Carollo Engineers to recommend
a formula for levying Capacity Charges against non-exempt accessory dwelling units that
complies with newly enacted legislative mandates codifed in Government Code Section
65852.2. On June 2, 2021, Carollo Engineers provided its accessory dwelling unit capacity
charge recommendation to the District (the “Carollo Letter”), which the District hereby
adopts. The Carollo Letter is on file with the District.
WHEREAS, the District finds there is a reasonable relationship between the
Capacity Charge’s use and the type of development project on which the capacity charge
is imposed. The District’s determination is based on recommendations provided by Carollo
Engineers in the Carollo Report and the Carollo Letter.
OC SAN-57-2
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WHEREAS, the District finds there is a reasonable relationship between the
need for the capital facility and the type of development project on which the Capacity
Charges is imposed. The District’s determination is based on recommendations provided
by Carollo Engineers in the Carollo Report and the Carollo Letter.
WHEREAS, the District finds there is a reasonable relationship between the
amount of the Capacity Charges and the cost of the capital facility attributable to the
development on which the fee is imposed. The District’s determination is based on
recommendations provided by Carollo Engineers in the Carollo Report and the Carollo
Letter.
WHEREAS, The District finds the Capacity Charges do not exceed the
estimated reasonable cost of providing sewer services to any parcel. The District’s
determination is based on recommendations provided by Carollo Engineers in the Carollo
Report and the Carollo Letter.
WHEREAS, the District wishes to exempt certain accessory dwelling units
and all junior accessory dwelling units from capacity charges pursuant to Government
Code Sections 65852.2 and 65852.22, and
WHEREAS, the District wishes to update the rate schedules provided in
Table A and Table B of Article II to reflect the previously adopted 2021-year rates.
NOW, THEREFORE, the Board of Directors of the Orange County Sanitation
District does hereby ORDAIN:
SECTION I. Adopt Capital Facilities Capacity Charges
TABLE OF CONTENTS
ARTICLE I: RECITAL OF FINDINGS
Section 1.01. Findings – Declaration of Intent
ARTICLE II: CAPITAL FACILITIES CAPACITY CHARGES
Section 2.01. Purpose and Scope
Section 2.02. Definitions
Section 2.03. Connection Permits: Required
Section 2.04. Capital Facilities Capacity Charge: Payment
Section 2.05. Capital Facilities Capacity Charge:
Time of Payment
Section 2.06. Capital Facilities Capacity Charge:
Schedule of Amounts
Table A Capital Facilities Capacity Charges – Non-Residential,
Residential Accessory Structures, and Accessory
Dwelling Units
OC SAN-57-3
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Table B Capital Facilities Capacity Charges – Residential
Table C Plan Check and Inspection Fee Schedule
Section 2.07. Supplemental Capital Facilities Capacity
Charge: Significant Commercial – Industrial
Users – Special Purpose Dischargers – Definitions
Section 2.08. Supplemental Capital Facilities Capacity Charge: New
Significant Commercial – Industrial Users
Section 2.09. Supplemental Capital Facilities Capacity
Charge: New Special Purpose Dischargers
Section 2.10. Supplemental Capital Facilities Capacity Charge:
Existing Significant Commercial – Industrial Users –
Special Purpose Dischargers
Table D Supplemental Capital Facilities Capacity
Charges
Section 2.11. Capital Facilities Capacity Charge: Replacement
Section 2.12. Capital Facilities Capacity Charge: Remodeled
Section 2.13. Capital Facilities Capacity Charge Exemption:
Accesory Dwelling Units
Section 2.14 Junior Accessory Dwelling Units
Section 2.15. Payment of Capital Facilities Capacity Charge: Off-Site
Sewers Not Part of Master Plan Relative to
Reimbursement Agreements
Section 2.16. No Refund or Transfer
Section 2.17. Baseline Transferability
Section 2.18. Capital Facilities Capacity Charge: Annual Updates
Section 2.19. Affordable Housing Projects
ARTICLE III: MISCELLANEOUS
Section 3.01. Application of Ordinance
Section 3.02. Exceptions
Section 3.03. Out of Area Sewer Service Agreements
OC SAN-57-4
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ARTICLE I
RECITAL OF FINDINGS
Section 1.01. Findings. Based on substantial evidence in the record, the
Board of Directors hereby finds as follows:
A. The District operates a system for the collection, treatment, disposal,
and reuse of wastewater (“System”). The System protects human health and the
environment from the potentially harmful effects of wastewater.
B. The District regularly constructs, reconstructs, repairs, and/or
rehabilitates System facilities through capital improvement projects (“Capital Projects”).
The District recovers the cost of Capital Projects through Capital Facilities Capacity
Charges imposed on new users and Supplemental Capital Facilities Capacity Charges
imposed on specified existing users. This Ordinance imposes Capital Facilities Capacity
Charges and Supplemental Capital Facilities Capacity Charges as recommended in the
Carollo Report.
C. The District will use the revenues from Capital Facilities Capacity
Charges and the Supplemental Capital Facilities Capacity Charges to fund future Capital
Projects and/or repay principal and interest on debt incurred in connection with past
Capital Projects. The revenues shall not be used for the acquisition or construction of new
local street sewers or laterals as distinguished from main trunk, interceptor and outfall
sewers.
D. The Capital Facilities Capacity Charges and Supplemental Capital
Facilities Capacity Charges established by this ordinance are based on the information
and analysis set forth in the Carollo Report and the Master Plan, both of which were made
available to the public in accordance with Government Code Section 66016 and other
provisions of law.
E. The Capital Facilities Capacity Charges and Supplemental Capital
Facilities Capacity Charges established by this ordinance do not exceed the estimated
reasonable cost of providing the wastewater collection, treatment, disposal, and reuse
services for which the fees are charged. The manner in which the costs are allocated to
each payor bears a fair or reasonable relationship to the payor's burdens on, and benefits
received from, the District’s System.
F. The Capital Facilities Capacity Charges and Supplemental Capital
Facilities Capacity Charges established by this ordinance will retire debt and fund capital
projects necessary to maintain service within the District’s existing service area.
Therefore, adoption of this Ordinance is statutorily exempt under the California
Environmental Quality Act pursuant to the provisions of Public Resources Code Section
21080(b)(8) and California Code of Regulations Section 15273(a).
G. The Capital Facilities Capacity Charges and Supplemental Capital
Facilities Capacity Charges established by this ordinance are not imposed as an “incident
OC SAN-57-5
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of property ownership” within the meaning of Article XIIID of the California Constitution.
Thus, the substantive and procedural requirements of Article XIIID do not apply.
H. The Capital Facilities Capacity Charges and Supplemental Capital
Facilities Capacity Charges established by this ordinance have been approved by the
District’s Board of Directors at a noticed public meeting, all in accordance with applicable
provisions of law.
ARTICLE II
CAPITAL FACILITIES CAPACITY CHARGES
Section 2.01. Purpose and Scope. This Ordinance is designed to ensure
that each user pays his or her fair share of the costs of Capital Projects, based on the
burden that each user places on the System. The District will use revenues generated by
this Ordinance to (i) fund future Capital Projects, and (ii) repay principal and interest on
debt incurred in connection with past Capital Projects.
Section 2.02. Definitions.
A. “Actual construction costs” include the cost of all activities necessary
or incidental to the construction of the District facilities, such as financing, planning,
designing, acquisition of the property or interests in the property, construction,
reconstruction, rehabilitation, and repair.
B. “Capital Facilities Capacity Charge (Capacity Charge)” means a one-
time, non-discriminatory charge imposed at the time a building or structure is newly
connected to the District’s System, directly or indirectly, or an existing structure or category
of use is expanded or increased. Said charge is to pay for the District facilities in existence
at the time the charge is imposed, or to pay for new facilities to be constructed in the future,
that are of benefit to the property being charged. This charge does not apply to temporary
facilities or operations that are regulated under the provisions of a Special Purpose
Discharge Permit. A schedule of the Capital Facilities Capacity Charges specified herein
will be on file in the Office of the Clerk of the Board of the District, and in the Building
Department of each City within the District.
C. “Connection fee” means a fee equal to the cost necessary to
physically connect a property to the District’s System, including but not limited to,
installation of meters, meter boxes, pipelines, and appurtenances to make the connection
and which fee does not exceed the actual cost of labor, materials, and overhead for the
installation of those facilities.
D. “Non-discriminatory” means that the Capital Facilities Capacity
Charge does not exceed an amount determined on the basis of the same objective criteria
and methodology applicable to comparable public or non-public users, and is not in excess
of the proportionate share of the cost of the District’s facilities of benefit to the person or
property being charged, based upon the proportionate share of use of those facilities.
OC SAN-57-6
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E. “Public agency” means the United States or any of its agencies, the
State or any of its agencies, the Regents of the University of California, a county, city,
district, school district, local or regional public authority, or any other political entity,
subdivision or public corporation of the State.
F. The Supplemental Capital Facilities Capacity Charge, as provided for
in Sections 2.07, 2.08, 2.09, and 2.10 of this Ordinance, is an annual charge payable to
the District on a quarterly or annual basis, as determined by the District. Said charge is
required to be paid by dischargers that exceed the maximum quantity of flow or
constituents (BOD or SS) allowed as a base use for which the Capacity Charge is paid.
G. “Accessory Dwelling Unit (ADU)” means an attached or detached
residential dwelling unit that provides complete independent living facilities for one or more
persons and is located on a lot with a proposed or existing primary residence. It shall
include permanent provisions for living, sleeping, eating, cooking, and sanitation on the
same parcel as the single-family or multifamily dwelling is or will be situated.
H. “Junior Accessory Dwelling Unit (JADU)” means a unit that is no more
than 500 square feet in size and contained entirely within a single-family residence. A
junior accessory dwelling unit may include separate sanitation facilities, or may share
sanitation facilities with the existing structure.
Section 2.03. Connection Permits: Required.
A. Connection permits are required of each and every dwelling unit, and
each commercial or industrial building, and structure connecting directly or indirectly to the
District’s sewerage system facilities. Included are the connections of laterals to local
municipal sewerage facilities, and the connection of local municipal sewerage facilities and
laterals to the District’s facilities. Multiple detached structures on a single parcel of
property shall each be required to obtain a connection permit.
B. Except as authorized by the issuance of a Special Purpose Discharge
Permit under Sections 305 – 305.6 of the District’s Wastewater Discharge Regulations, or
as authorized pursuant to a special extra territorial service agreement approved by the
Board of Directors, no permit shall be valid unless the real property to be served by use of
the permit is included within the boundaries of the District and within the boundaries of a
local sewering agency authorized to maintain public sewering facilities. However, a permit,
as authorized above, may be issued for property to be served outside the boundaries of a
local sewering agency if a local sewering agency makes application for the issuance of
such permit.
There will be a non-discriminatory Capital Facilities Capacity Charge assessed to
public agencies for connecting directly or indirectly to the District’s sewerage system
facilities, and a connection permit must be obtained.
Section 2.04. Capital Facilities Capacity Charge: Payment Required. No
application for a permit for a connection of a structure to the District’s sewerage facility, or
to any sewerage facility which discharges into the District sewerage facility, shall be
approved, nor a permit issued, until the District’s Capital Facilities Capacity Charge is paid
OC SAN-57-7
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by the applicant, except as provided for discharges under a Special Purpose Discharge
Permit. No connection permit shall be issued unless there is an established category of
use of the property to be served or a valid building permit issued which establishes the
category of use of said property.
Section 2.05. Capital Facilities Capacity Charge: Time of Payment.
A. Payment of the Capital Facilities Capacity Charge established by this
Ordinance for connection to the District’s sewerage system facilities shall be required at
the time of issuance of the building permit for all construction within the District, except in
the case of a building legally exempt from the requirement of obtaining a permit. The
payment of the Capital Facilities Capacity Charge for such exempt buildings will be
required at the time of and prior to the issuing of a plumbing connection permit for any
construction within the territorial limits of the District, or if none, prior to the issuance of a
Certificate of Occupancy.
B. Upon application of any property owner seeking to connect to the
District’s sewerage system, the General Manager or his designee, upon a finding of
compelling need, may, pursuant to the authority of California Health & Safety Code Section
5474, approve of an agreement with the property owner for the payment of the applicable
connection charge and/or annexation fees in installment payments over a period of not to
exceed five (5) years, bearing an interest rate on the unpaid balance of not to exceed ten
(10%) percent per annum and that the charges and interest shall constitute a lien on the
property.
Section 2.06. Capital Facilities Capacity Charge and Plan Check and
Inspection Fees: Schedule of Amounts.
A. Every person or entity connecting any new or expanded building or
structure to the District’s system facilities shall pay a Capital Facilities Capacity Charge in
the amount for the applicable category of use set forth on Table A & B, below.
B. Every person or entity connecting any new or expanded building or
structure directly to the District’s local or regional system facilities shall pay Plan Check
and Inspection Fees in the amount set forth n Table C, below.
TABLE A
CAPITAL FACILITIES CAPACITY CHARGES (CFCC)
NON-RESIDENTIAL,RESIDENTIAL ACCESSORY STRUCTURES, AND ACCESSORY
DWELLING UNITS
Use Category Rate Basis Base Charge
Low Demand2 Per 1,000 square feet1 $ 336.001
Average Demand4,5 Per 1,000 square feet $ 2088.001
High Demand3 Per 1,000 square feet $ 4962.001
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1Provided that the minimum Capital Facilities Capacity Charge for such new construction
shall be $5346; and all calculations shall be on a 1,000 square foot, or portion thereof,
basis.
2Low Demand connections are the following categories of users: Nurseries; Warehouses;
Churches; Truck Terminals; RV Parks; RV Storage Yards; Lumber/Construction Yards;
Public Storage Buildings; and other facilities whose wastewater discharge is similar to
these listed categories.
3High Demand connections are the following categories of users: Food/Beverage Service
Establishments; Supermarkets (with bakery, meat counter, and/or food service); Car
Washes; Coin Laundries; Amusement Parks; Shopping Centers with one or more
Food/Beverage Service Establishments; Food Courts; Food Processing Facilities; Textile
Manufacturers; Breweries; and other facilities whose wastewater discharge is similar to
these listed categories.
4All other connections are Average Demand users including: Church Offices and Schools;
Hotels, Shopping Centers/Strip Malls without food/beverage service establishments,
Music Halls without food facilities, Office buildings, Senior Housing with individual living
units without kitchens but with a common kitchen
5 Residential Accessory Structures such as workshops and hobby shops that connect to
the sewer, will be charged at the average demand rate and the minimum charge does not
apply.
6 Accessory Dwelling Units will be charged at the average demand rate and the minimum
charge does not apply.
TABLE B
CAPITAL FACILITIES CAPACITY CHARGES (CFCC)
RESIDENTIAL (PER UNIT)*
Single Family Residential (SFR)1 Base Charge
5+ Bedrooms $ 7,430.00
4 Bedrooms $ 6,362.00
3 Bedrooms $ 5,346.00
2 Bedrooms $ 4,331.00
1 Bedroom $ 3,314.00
Multi-Family Residential (MFR)2 Base Charge
4+ Bedrooms $ 5,774.00
3 Bedrooms $ 4,758.00
2 Bedrooms $ 3,743.00
1 Bedroom $ 2,672.00
Studio3 $ 1,710.00
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*The Base Rate for Residential CFCC is the 3 Bedroom SFR with all others having a rate
that is a percentage of the base rate depending on the size of the unit. The schedule for
the base rate shall be as follows:
2018-19 2019-20 2020-21 2021-22 2022-23
$4,228 $4,601 $4,973 $5,346 $5,719
1 Bedroom additions are considered a change of use and a CFCC must be paid. Enclosed
loft additions, bonus rooms, offices, workout rooms, media rooms, libraries and any other
enclosed addition which could potentially be used as a bedroom are included in this
category. The classification of these additions will be reviewed and determined by staff.
2 MFR units consist of multiple attached units that are not sold individually and receive one
secured property tax bill such as apartments. Multiple attached units that are not sold
individually and are senior housing with individual living units that include a kitchen are
considered MFR units.
3 Studio – one single room with no separating doors or openings leading to another part of
the room (except for a bathroom).
Live/Work units will be charged at the residential rate for the living quarters and at the non-
residential rate for the work portion square footage.
TABLE C
PLAN CHECK AND INSPECTION FEE TABLE
INSPECTION FEES FOR SINGLE CONNECTIONS
Lateral installation to property line:
2018-19 2019-20 2020-21 2021-22 2022-23
$575.00 $650.00 $725.00 $800.00 $875.00
Lateral Installation to with optional cleanout to existing manhole:
2018-19 2019-20 2020-21 2021-22 2022-23
$650.00 $800.00 $950.00 $1,050.00 $1,150.00
Core drilling into existing manhole base – add:
2018-19 2019-20 2020-21 2021-22 2022-23
$600.00 $900.00 $1,200.00 $1,450.00 $1,500.00
OC SAN-57-10
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Installation of new manhole over existing sewer:
2018-19 2019-20 2020-21 2021-22 2022-23
$1,200.00 $1,400.00 $1,600.00 $1,800.00 $1,900.00
Gas Flap Installation – add:
2018-19 2019-20 2020-21 2021-22 2022-23
$450.00 $455.00 $460.00 $465.00 $470.00
INSPECTION FEES FOR MULTIPLE CONNECTIONS
Plan check and inspection fees of 20 percent of the sewer construction cost for new tract
sewers, sewer extensions or special facilities are required when plans are submitted for
plan check.
If additional funds are needed, they must be deposited as soon as they are requested to
complete the inspection on the project. If funds are required after the work is completed,
they must be paid before the District finals the sewer project.
Section 2.07. Supplemental Capital Facilities Capacity Charge: Significant
Commercial – Industrial Users and Significant Special Purpose Dischargers – Definitions.
A. A Significant Commercial – Industrial User (“SCIU”) is any person or
entity who discharges commercial or industrial process flow, but excluding domestic
sewage flow, in an amount greater than 25,000 gallons per day (“gpd”), or Biochemical
Oxygen Demand (“BOD”) greater than 150 pounds per day, or Suspended Solids (“SS”)
greater than 150 pounds per day, or who is required to obtain a Waste Discharge Permit,
as prescribed by Article 3 of the District’s Wastewater Regulations, due to having federally
or the District regulated or significant discharges.
B. A Significant Special Purpose Discharger ("SSPD") is any person or
entity who discharges to the sewer system wastewater or process flow in an amount
greater than 25,000 gpd (excluding domestic, industrial or commercial) and who is
required to obtain a Special Purpose Discharge Permit as prescribed in Section 305 of the
District’s Wastewater Regulations. A Special Purpose Discharger (SPD) discharges
25,000 gpd or less.
C. An Existing SCIU or SSPD is any SCIU or SSPD connected and
discharging to the District’s system prior to January 1, 2000.
D. A New SCIU or SSPD is any user who connects and discharges to
the District’s System pursuant to a Waste Discharge Permit issued on or after January 1,
2000; or if previously connected and not an SCIU, as defined in Subparagraphs 2.07A and
OC SAN-57-11
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B above, but, subsequent to January 1, 2000, increases flow, or BOD, or SS to a level as
to constitute an SCIU or SSPD.
E. The maximum discharge allowed to a user, for which a base Capital
Facilities Capacity Charge is paid, as per Table A, above, is 25,000 gallons per day (“gpd”),
or 150 pounds per day each of BOD and SS (the “base use”). Discharge of flow, or BOD,
or SS in amounts greater than allowed by this Subsection 2.07E shall be subject to the
provisions of Sections 2.08 and 2.09 hereof.
F. Each Existing SCIU shall have a baseline of allowed discharge of
flow, and BOD, and SS established by the the District as of January 1, 2000. The baseline
shall be based upon the discharge for Fiscal Year 1998-99, or upon such other discharge
data which the District determines is representative of the user’s actual annual discharge
to the sewerage system. Dischargers who are deemed to be SCIU’s solely because of
the requirements to obtain a Waste Discharge Permit, pursuant to Section 2.07A above,
shall have a minimum baseline established as follows: Flow – 25,000 gallons per day;
BOD – 150 pounds per day; and SS – 150 pounds per day. The SCIU shall be authorized
to discharge flow, and BOD, and SS up to the baseline amounts without payment of a
Supplemental Capital Facilities Capacity Charge.
G. Each Existing SPD shall have a baseline of 25,000 gpd. The Existing
SPD shall be authorized to discharge flow up to 25,000 gpd without payment of a
Supplemental Capital Facilities Capacity Charge.
H. The Supplemental Capital Facilities Capacity Charge, as prescribed
by Sections 2.08, 2.09, and 2.10 below, shall be payable commencing with the effective
date of this Ordinance.
Section 2.08. Supplemental Capital Facilities Capacity Charge: New
Significant Commercial – Industrial Users. In addition to the base Capital Facilities
Capacity Charge, as prescribed in Table A, for commercial – industrial use category
properties, all New SCIU’s shall pay a Supplemental Capital Facilities Capacity Charge for
each gallon of flow, or pound of BOD, or SS, exceeding the base use discharge
maximums, in the amount shown in Table D.
Section 2.09. Supplemental Capital Facilities Capacity Charge: Significant
Special Purpose Dischargers. All SSPDs shall pay a Supplemental Capital Facilities
Capacity Charge of $.001948 per gallon per day for each gallon of flow exceeding 25,000
gallons per day.
Section 2.10. Supplemental Capital Facilities Capacity Charge: Existing
Significant Commercial – Industrial Users and Special Purpose Dischargers.
A. All Existing Significant Commercial – Industrial Users connected to
and discharging to the District’s System shall be required to pay a Supplemental Capital
Facilities Capacity Charge upon the occurrence of either (i) an increase of discharge flow
of 25,000 gallons per day (“gpd”), or 25% per day over its established baseline
OC SAN-57-12
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authorization, whichever is lesser; or (ii) an increase of either BOD or SS discharge of 150
pounds each per day, or 25% each per day, whichever is lesser, over its established
baseline authorization. The daily averages will be based on the daily discharges for a
year, utilizing discharge records and reports of the discharger or the District.
B. The Supplemental Capital Facilities Capacity Charge shall be in the
following amounts for each component that is increased as provided in Section 2.10A
above.
TABLE D
SUPPLEMENTAL CAPITAL FACILITIES CAPACITY CHARGES
Daily Charge
2018-19 2019-20 2020-21 2021-22 2022-23
FLOW $0.001948 $0.001960 $0.001972 $0.001984 $0.001996
BOD $0.427550 $0.440380 $0.453590 $0.467200 $0.481210
SS $0.231510 $0.240770 $0.250410 $0.260420 $0.270840
FLOW – Gallons Per Day
BOD – Pounds Per Day
SS – Pounds Per Day
C. All Existing SPDs connected and discharging to the sewer shall be
required to pay a Supplemental Capital Facilities Capacity Charge upon occurrence of an
increase of discharge flow over 25,000 gpd. The Supplemental Capital Facilities Capacity
Charge shall be $ 0.001948 per gallon per day of discharge for each gallon above 25,000
gpd.
D. The Supplemental Capital Facilities Capacity Charge shall be
calculated on the basis of the average daily quantity of discharge in excess of the User’s
baseline or 25,000 gpd for SPDs. The daily averages will be based on the daily discharges
for a year, utilizing discharge records and reports of the District.
Section 2.11. Capital Facilities Capacity Charge: Replacement Structures.
For new construction replacing former structures, the Capital Facilities Capacity Charge
shall be calculated and paid to the District on the rate basis of the category of the new use
and the amounts as set forth in Tables A and B, less a credit amount, up to the amount of
the new Capital Facilities Capacity Charge, equal to a charge, as prescribed in Tables A
and B that would be for the prior category of use which was terminated and removed.
Section 2.12. Capital Facilities Capacity Charge: Remodeled Structures. In
the case of existing structures connected to the District’s system facilities, to which new
OC SAN-57-13
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construction or alteration is made to change or increase the category of use or number of
bedrooms, a Capital Facilities Capacity Charge shall be calculated and paid to the District
on the rate basis of the category of the new use and the amounts as set forth in Tables A
and B, less a credit amount, up to the amount of the new Capital Facilities Capacity
Charge, equal to a charge, as prescribed in Tables A and B for the prior category of use.
Section 2.13. Accessory Dwelling Units. Notwithstanding Section 2.12,
pursuant to Government Code Section 65852.2, the District shall not collect Capital
Facilities Capacity Charges from any ADU if all the following conditions are met:
(a) the ADU is attached to a single-family residence or accessory structure;
(b) the ADU is built after the single-family residence;
(c) the ADU’s side and rear setbacks are sufficient for fire safety;
(d) the ADU has independent exterior access from the existing single-family
residence;
(e) the ADU does not expand the single-family residence;
(f) the ADU does not expand an accessory structure by more than 150 square feet
and that expansion is only used to accommodate ingress and egress and;
(g) there are no other ADUs on the property.
Section 2.14. Junior Accessory Dwelling Units. Notwithstanding Section
2.12, pursuant to Government Code Section 65852.2, the District shall not collect Capital
Facilities Capacity Charges from a JADU integrated into an existing single-family
residence if a local agency approved the JADU pursuant to Government Code Section
65852.22 and a local ordinance.
Section 2.15. Payment of Capital Facilities Capacity Charge: Off-Site
Sewers Not Part of Master Plan Relative to Reimbursement Agreements. A charge for
connection to off-site sewers which are not included as part of the District Master Plan and
for which a Non-Master Plan Reimbursement Agreement has been entered into between
the District and the property owner, shall be paid in the amount provided for in said
Agreement, to be known as a Non-Master Plan Capital Facilities Capacity Charge. The
amount set forth in said Agreement shall be the amount due, provided the original
Agreement is still in force. The Non-Master Plan Capital Facilities Capacity Charge shall
be in addition to the other Capital Facilities Capacity Charges provided for in Sections 2.06
through 2.10 hereinabove, established for property connecting to said facilities.
Section 2.16. No Refund or Transfer. A Capital Facilities Capacity Charge
is paid for the connection of a specific building or structure on a parcel of property. No
refund of any charge shall be made because of non-use or change of use, or any other
reason once the connection has been made. If the connection is not made and the request
for connection is withdrawn within 12 months of the payment date, the charges paid will
be refunded upon establishing proof from the City or County of a canceled permit. The
connection permit is non-transferable to any other parcel of property.
Section 2.17. Baseline Transferability. The baseline of allowed discharge of
flow, BOD and SS used to calculate a Supplemental Capital Facilities Capacity Charge
shall not be transferable to a different property, nor shall a credit for such previously
OC SAN-57-14
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existing baseline be provided to another SCIU concurrently or subsequently occupying the
same property for a different use. Each such SCIU shall pay Supplemental Capital
Facilities Capacity Charges in accordance with Section 2.08 above.
Section 2.18. Capital Facilities Capacity Charge Annual Updates. The
Capital Facilities Capacity Charge is based upon the most recently completed Facilities
Master Plan. This The non-residential charge will be updated annually based upon the
increase in the Engineering News-Record construction cost index for Los Angeles as of
December of the prior year until the completion of the next Rate Study. The residential
charge will be updated based upon the schedule of base fees in Table B.
Section 2.19. Affordable Housing Projects. Per Resolution OCSD 11-02,
development projects that include lower income housing units shall not be denied approval
of an application for service, nor shall conditions be imposed thereon or services reduced
which are applied for, unless the District makes specific written findings that the denial,
condition, or reduction is necessary due to the existence of one or more of the following:
(a) insufficient water supply or insufficient water treatment or distribution
capacity;
(b) a State Department of Health Services order prohibiting new water
connections;
(c) insufficient sewer treatment or collection capacity;
(d) a Regional Water Quality Control Board order prohibiting new sewer
connections;
(e) the applicant has failed to agree to reasonable terms and conditions
ARTICLE III
MISCELLANEOUS
Section 3:01. Application of Ordinance. The provisions of this Ordinance
shall be in addition to the provisions of the District’s Wastewater Discharge Regulations
for use of the District’s sewage facilities, including provisions for payment of charges or
fees related thereto; the District’s ordinance establishing Fees Concerning Annexations of
Territory to the District; and any other the District Ordinances and Resolutions not in
conflict herewith.
Section 3:02. Exceptions. The provisions of this Ordinance shall apply to all
owners of properties within the District, including those properties otherwise deemed
exempt from payment of taxes or assessments by provisions of the State Constitution or
statute, including properties owned by other public agencies or tax-exempt organizations,
except as expressly provided herein.
Section 3:03 Out of Area Sewer Service Agreements. The District is
empowered to contract for the transport, treatment and disposal of wastewaters originating
within areas outside of the District if it is in the best interest of the District to do so. These
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Out of Area Sewer Service Agreements will establish fees and charges relative to the
services provided by the District for each individual agreement.
The Board of Directors of the Orange County Sanitation District does further hereby
ORDAIN:
SECTION II. Severability. If any provision of this Ordinance, or the application to any
person or circumstances is held invalid by order of Court, the remainder of the Ordinance,
or the application of such provision to other persons or other circumstances, shall not be
affected.
SECTION III. Effective Date. This Ordinance shall take effect September 1, 2021.
SECTION IV. Repeal. Ordinance No. OCSD-50 and Ordinance No. OCSD-54 are
hereby repealed.
SECTION V. Certification and Publication. The Clerk of the Board shall certify to the
adoption of this Ordinance, and shall cause a summary to be published in a newspaper of
general circulation as required by law.
PASSED AND ADOPTED by a vote of not less than two-thirds of the Board of
Directors of the Orange County Sanitation District at a Regular Meeting held on July 28,
2021.
______________________________
David John Shawver
Chairman, Board of Directors
Orange County Sanitation District
ATTEST:
____________________________________
Kelly A. Lore, MMC
Clerk of the Board
Orange County Sanitation District
OC SAN-57-16
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APPROVED AS TO FORM:
____________________________________
Bradley R. Hogin
General Counsel
Orange County Sanitation District
OC SAN-57-17
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STATE OF CALIFORNIA )
)SS.
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of Orange County Sanitation District, do
hereby certify that the above and foregoing Ordinance No. OC SAN-57 was introduced for
first reading at a regular meeting of said Board on the 23rd day of June 2021, and passed
and adopted by a vote of not less than two-thirds at a regular meeting of said Board on
the 28th day of July 2021, by the following vote, to wit:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
Orange County Sanitation District this 28th day of July 2021.
_______________________________
Kelly A. Lore, MMC
Clerk of the Board
Orange County Sanitation District
ORDINANCE NO. OCSD-54
AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE
ORANGE COUNTY SANITATION DISTRICT AMENDING
SECTION 2.06 OF ARTICLE II, TABLE A, TABLE B, AND
TABLE C OF ORDINANCE NO. OCSD-50 CONCERNING
CAPITAL FACILITY CAPACITY CHARGES
WHEREAS, the Board of Directors of the Orange County Sanitation District adopted
Ordinance No. OCSD-50 on March 28, 2018 adopting Capital Facilities Capacity Charges;
and
WHEREAS, the Board of Directors of the Orange County Sanitation District wishes
to revise Section 2.06 of Article II, Table A, Table B, and Table C to more clearly define
the categories for charges.
NOW, THEREFORE, the Board of Directors of the Orange County Sanitation
District does hereby ORDAIN:
SECTION 1: Section 2.06 of Article II, Table A, Table Band Table C of Ordinance
No. OCSD-50 are hereby amended as follows:
OCSD-54-1
TABLE A
CAPITAL FACILITIES CAPACITY CHARGES (CFCC)
NON-RESIDENTIAL
Use Category
Low Demand2
Average Demand4.s
High Demand3
Rate Basis
Per 1,000 square feet1
Per 1,000 square feet
Per 1,000 square feet
Base Charge
$ 332.001
$2,066.001
$4,908.001
1Provided that the minimum Capital Facilities Capacity Charge for such new construction
shall be $4,228; and all calculations shall be on a 1,000 square foot, or portion thereof,
basis.
2Low Demand connections are the following categories of users: Nurseries; Warehouses;
Churches; Truck Terminals; RV Parks; RV Storage Yards; Lumber/Construction Yards;
Public Storage Buildings; and other facilities whose wastewater discharge is similar to
these listed categories.
3High Demand connections are the following categories of users: Food/Beverage Service
Establishments; Supermarkets (with bakery, meat counter, and/or food service); Car
Washes; Coin Laundries; Amusement Parks; Shopping Centers with one or more
Food/Beverage Service Establishments; Food Courts; Food Processing Facilities; Textile
Manufacturers; Breweries; and other facilities whose wastewater discharge is similar to
these listed categories.
4All other connections are Average Demand users including: Church Offices and Schools;
Hotels, Shopping Centers/Strip Malls without food/beverage service establishments,
Music Halls without food facilities, Office buildings, Senior Housing with individual living
units without kitchens but with a common kitchen
5 Residential Accessory Structures such as workshops and hobby shops that connect to
the sewer, will be charged at the average demand rate and the minimum charge does not
apply.
OCSD-54-2
TABLE B
CAPITAL FACILITIES CAPACITY CHARGES (CFCC)
RESIDENTIAL (PER UNIT)*
Single Family Residential (SFR)1
5+ Bedrooms
4 Bedrooms
3 Bedrooms
2 Bedrooms
1 Bedroom
Multi-Family Residential (MFR)2
4+ Bedrooms
3 Bedrooms
2 Bedrooms
1 Bedroom
Studio3
Base Charge
$5,877.00
$5,031.00
$4,228.00
$3,425.00
$2,621.00
Base Charge
$4,566.00
$3,763.00
$2,960.00
$2, 114.00
$1,353.00
*The Base Rate for Residential CFCC is the 3 Bedroom SFR with all others having a rate
that is a percentage of the base rate depending on the size of the unit. The schedule for
the base rate shall be as follows:
2018-19
$4,228
2019-20
$4,601
2020-21
$4,973
2021-22
$5,346
2022-23
$5,719
1 Bedroom additions are considered a change of use and a CFCC must be paid. Enclosed
loft additions, bonus rooms, offices, workout rooms, media rooms, libraries and any other
enclosed addition which could potentially be used as a bedroom are included in this
category. The classification of these additions will be reviewed and determined by staff.
2 MFR units consist of multiple attached units that are not sold individually and receive one
secured property tax bill such as apartments. Multiple attached units that are not sold
individually and are senior housing with individual living units that include a kitchen are
considered MFR units.
3 Studio -one single room with no separating doors or openings leading to another part of
the room (except for a bathroom).
Live/Work units will be charged at the residential rate for the living quarters and at the non-
residential rate for the work portion square footage.
OCSD-54-3
TABLE C
PLAN CHECK AND INSPECTION FEE TABLE
INSPECTION FEES FOR SINGLE CONNECTIONS
Lateral installation to property line:
2018-19
$575.00
2019-20
$650.00
2020-21
$725.00
2021-22
$800.00
Lateral installation with optional cleanout to existing manhole:
2018-19 2019-20 2020-21 2021-22
$650.00 $800.00 $950.00 $1,050.00
Core drilling into existing manhole base -add:
2018-19 2019-20 2020-21 2021-22
$600.00 $900.00 $1,200.00 $1,450.00
Installation of new manhole over existing sewer:
2018-19 2019-20 2020-21 2021-22
$1,200.00 $1,400.00 $1,600.00 $1,800.00
Gas Flap Installation -add:
2018-19 2019-20 2020-21 2021-22
$450.00 $455.00 $460.00 $465.00
INSPECTION FEES FOR MULTIPLE CONNECTIONS
2022-23
$875.00
2022-23
$1,150.00
2022-23
$1,500.00
2022-23
$1,900.00
2022-23
$470.00
Plan check and inspection fees of 20 percent of the sewer construction cost for new tract
sewers, sewer extensions or special facilities are required when plans are submitted for
plan check.
If additional funds are needed, they must be deposited as soon as they are requested to
complete the inspection on the project. If funds are required after the work is completed,
they must be paid before the District finals the sewer project.
OCSD-54-4
The Board of Directors of the Orange County Sanitation District does further hereby
ORDAIN:
SECTION 2. Severability. If any provision of this Ordinance, or the application to
any person or circumstances is held invalid by order of Court, the remainder of the
Ordinance, or the application of such provision to other persons or other circumstances,
shall not be affected.
SECTION.3. Effective Date. This Ordinance shall take effect July 1, 2019.
SECTION 4. Certification and Publication. The Clerk of the Board shall certify to
the adoption of this Ordinance, and shall cause a summary to be published in a newspaper
of general circulation as required by law.
PASSED AND ADOPTED by a majority vote of the Board of Directors of the Orange
County Sanitation District at a Regular Meeting held on May 22, 2019.
ATIEST:
re, MMC
Glen·< of t e Board
Orange County Sanitation District
APPROVED AS TO FORM:
awver
Chairman, B ard of Directors
Orange County Sanitation District
OCSD-54-5
STATE OF CALIFORNIA )
)SS.
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of Orange County Sanitation District, do
hereby certify that the above and foregoing Ordinance No. OCSD-54 was introduced for
first reading at a regular meeting of said Board on the 24th day of April 2019, and passed
and adopted at a regular meeting of said Board on the 22nd day of May 2019, by the
following vote, to wit:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott;
Harper (Alternate); Hawkins; Iglesias; Kim; Kring;
Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill
(Alternate); Ooten (Alternate); Parker; Peterson; Shawver;
Shea; Silva; F. Smith; Wanke; Withers and Yarc
None
None
None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
Orange County Sanitation District this 22nd day of May 2019.
OCSD-54-6
3150 Bristol Street, Suite 500, Costa Mesa, California 92626
P. 714.593.5100 F. 714.593.5101
Project No: ͭͮͬʹͰA.ͬͬ | ADU CFCC Findings and Recommendations
June ͮ, ͮͬͮͭ
Ms. Angela Brandt
Orange County Sanitation District
ͭͬʹͰͰ Ellis Avenue
Fountain Valley, CA ͵ͮͳͬʹ
Subject: Summary of Findings and Recommendations for OCSD Capital Facilities Capacity Charge for
Accessory Dwelling Units
Dear Ms. Brandt:
Orange County Sanitation District (District or OCSD) retained Carollo Engineers, Inc. (Carollo) to review its
Capital Facilities Capacity Charge (CFCC) for accessory dwelling units (ADU) in response to recent legislation
governing impact fees on these housing units. Senate Bill ͭͯ and Assembly Bills Ͳʹ and ʹʹͭ outlined
standards for special districts that charge impact fees for new developments, including ADUs, which would
apply to the District’s CFCC.
Carollo performed the District’s independent rate and charge study for the District in ͮͬͭͳ (ͮͬͭͳ Study),
updating the CFCC at that time. Carollo’s primary goal in this letter is to summarize its analysis and provide
recommendations for adjusting OCSD’s CFCC to meet both legal guidance received to date as well as cost
allocations established for the CFCC during the ͮͬͭͳ Study. This letter is not intended to provide legal
guidance and does not offer any assurances of compliance.
Assessment of the Existing CFCC under New Regulatory Framework
Current CFCC
The District uses an equivalent dwelling unit (EDU) approach for CFCC. The EDU approach takes new
applications for sewer service and measures the projected demand for capacity relative to a ͯ‐bedroom SFR
household. This provides a common unit of measurement for all classes of customers.
Residential CFCC
OCSD’s current residential CFCC is calculated based on density and bedroom count. Single family residential
(SFR), multi‐family residential (MFR), and studios are charged different rates due to the different typical
occupancy rates for each. The current rates as of July ͭ, ͮͬͮͬ, are shown in Table ͭ. Prior to mid‐ͮͬͮͬ, ADUs
were charged the ͭ‐bedroom rate for SFR of ͈ͯ,ͬʹͯ.
Table ͭ Current Residential CFCC
Bedrooms SFR MFR Studios
ͱ+ bedrooms ͈Ͳ,͵ͭͮ ‐ ‐
Ͱ bedrooms (or greater for MFR) ͈ͱ,͵ͭʹ ͈ͱ,ͯͳͭ ‐
ͯ bedrooms ͈Ͱ,͵ͳͯ ͈Ͱ,ͰͮͲ ‐
ͮ bedrooms ͈Ͱ,ͬͮ͵ ͈ͯ,Ͱʹͮ ‐
ͭ bedroom ͈ͯ,ͬʹͯ ͈ͮ,ͰʹͲ ͈ͭ,ͱ͵ͭ
Page ͮ
carollo.com
Non-Residential CFCC
OCSD’s current non‐residential CFCC is calculated based on square footage and estimated flow. There are
three categories of flow to reflect the varied levels and strengths of sewer discharge from different non‐
residential users. The current rates as of July ͭ, ͮͬͮͬ, are shown in Table ͮ.
Table ͮ Current Non‐Residential CFCC
Use Category CFCC per ͭ,ͬͬͬ sq. ft.
Low Demand ͈ͯͯͱ
Average Demand ͈ͮ,ͬʹͮ
High Demand ͈Ͱ,͵Ͱͳ
Alignment with New Regulatory Framework
The recently passed legislation stipulates that ADUs built outside an existing SFR dwelling (i.e., new
detached ADUs and conversion of spaces in multi‐family buildings) may be charged a fee that is proportional
to the burden of the unit based on square footage.
The calculation of the District’s CFCC for both residential and non‐residential units are based on the same
common EDU approach, where a ͯ‐bedroom single family home is equal to one EDU. Costs were originally
allocated to the two different fees in line with how many EDUs residential and non‐residential classes have.
They are assessed on different bases because of the available data, with residential units charged based on
bedrooms and non‐residential units charged based on square footage. Based on this approach, a residential
unit and non‐residential with the same wastewater needs would be assessed approximately the same CFCC
amount.
Updated CFCC for ADU
Carollo recommends that OCSD adjust its CFCC structure to best align with this new legislation while still
recovering costs associated with new service connections. Carollo is providing the following
recommendations:
No changes are recommended for the existing SFR, MFR, or Studio rates.
For new ADUs, it is recommended that the CFCC be based on the non‐residential average demand
rate multiplied by the ADU square footage.
This approach is expected to provide a reasonable assessment of the capacity costs associated with a new
ADU connection.
Because the OCSD CFCC was calculated in the ͮͬͭͳ Study using an EDU approach, this adjustment is
projected to remain in line with the cost and revenue allocation outlined in the ͮͬͭͳ Study.
It is also recommended that the District look specifically at a ADU CFCC during its next rate update.
Page ͯ
carollo.com
Carollo appreciates the opportunity to continue providing the District with rate and fee consulting services.
If you have any questions about the guidance contained in this letter or any of the assumptions or inputs that
were used in this analysis, please do not hesitate to contact us. Thank you.
Sincerely,
CAROLLO ENGINEERS, INC.
Jennifer Ivey
Project Manager, Vice President
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1684 Agenda Date:6/9/2021 Agenda Item No:8.
FROM:James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
2021-22 PROPERTY - LIABILITY INSURANCE RENEWALS
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
Approve the Orange County Sanitation District FY 2021-22 Property-Liability Insurance Renewals
included in the FY 2021-22 Budget Update for the not-to-exceed amounts specified below:
Property and Boiler & Machinery - Not to Exceed $ 1,484,593
Excess General Liability Insurance - Not to Exceed $ 906,635
Excess Workers’ Compensation Insurance - Not to Exceed $ 271,860
Earthquake Insurance - Not to Exceed $ 118,166
TOTAL $ 2,781,254
BACKGROUND
Financial Management staff and the Orange County Sanitation District’s (OC San)operational
insurance broker,Alliant,began the renewal process in January and received final quotes in June.
After negotiating with the insurance carriers,Alliant was able to secure competitive rates for OC San
without compromising the quality of coverage provided.The insurance market has been in a state of
flux due to COVID-19,weather extremes,sea level rise,wildfires,catastrophic losses,social inflation,
and cybersecurity threats around the world and in the state of California.There is a lot of uncertainty
in the market and insurers have taken losses for previous years and,as a result,insurance costs will
increase to absorb the losses.
The extreme uncertainty in the market due to COVID-19 and the abovementioned factors will impact
the insurance rates.As such,OC San will need to pay higher rates to obtain the same coverage
limits.The current extreme degree of uncertainty in the insurance industry means severe rate
increases,at least in the short term,until the numbers play out for the insurance industry over the
next few years.
The proposed cost of insurance coverage for Fiscal Year is $2,781,254,an increase of $645,809
(30%). A summary of the insurances is included in the Additional Information section below.
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File #:2021-1684 Agenda Date:6/9/2021 Agenda Item No:8.
RELEVANT STANDARDS
·Protect OC San assets
PROBLEM
Insurance is necessary to protect OC San’s assets and financial well-being.
PROPOSED SOLUTION
Approve the insurance renewals as described above to ensure continued coverage of OC San’s
assets.
TIMING CONCERNS
Board approval is necessary since current insurance coverage expires on June 30, 2021.
RAMIFICATIONS OF NOT TAKING ACTION
Without Board approval,OC San cannot finalize the contracts with the insurance carriers,and OC
San’s insurance will lapse.
PRIOR COMMITTEE/BOARD ACTIONS
May 2021 -informational presentation to the Administration Committee providing an overview of the
insurance renewal market.
March 2021 -informational presentation to the Administration Committee detailing each of the five
major insurances for OC San operations, and the status of the insurance market.
ADDITIONAL INFORMATION
The cost of insurance coverage for Fiscal Year is $2,781,254, an increase of $645,809 (30%).
OC San’s budget provides funds for the renewal of the following four (4)major insurances for OC
San operations:
1)All-Risk Property and Flood Insurance (Includes Boiler & Machinery)
The All-Risk Property and Flood Insurance Program (Property Insurance)provides
comprehensive coverage for much of OC San’s real and personal property regarding virtually
all perils including fire, flood, and business interruption.
Current Property Insurance limits are $800 million dollars for most perils other than flood and
earthquakes,and $100 million dollars for flood,with many sub-limits for various situations.In
order to reach $800 million dollars in limits,the broker had to arrange for more than a dozen
different insurers. The SIR is $500,000 per occurrence for most types of losses.
Since the late 1990’s,the Property Insurance has been with a nationwide joint purchase
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File #:2021-1684 Agenda Date:6/9/2021 Agenda Item No:8.
Since the late 1990’s,the Property Insurance has been with a nationwide joint purchase
property insurance program called Public Entity Property Insurance Program (PEPIP),one of
the world’s largest property programs.It is important to note that this joint purchase property
insurance offers the purchasing power of numerous large public entities without the pooling or
sharing of coverage or losses.
The Boiler &Machinery Insurance component of the property insurance,provides
comprehensive coverage for loss caused by machinery breakdown and explosion of steam
boilers or other covered process equipment,including damage to the equipment itself and
damage to other property caused by covered accidents.The current Boiler &Machinery
Insurance Program provides coverage of $100 million per occurrence with deductibles ranging
from $25,000 to $350,000 for losses caused by covered machinery breakdown (e.g.,motors,
steam turbines,digesters,co-gen engines).Damages to the equipment,as well as damages
to other property and improvements from machinery breakdown,are covered by the Boiler &
Machinery Insurance.This program augments OC San’s All-Risk Property Insurance that
covers perils such as fire and flood.
The estimated cost for All-Risk Property and Flood is $1,484,593,an increase of $408,154
(38%).
2)Excess General Liability Insurance
OC San’s Excess General Liability Insurance Program is currently provided through the
California Municipal Excess Liability Program (CAMEL)and its sister program,the Alliant
National Municipal Liability Program (ANML).OC San has participated in the CAMEL program
since FY 1996-97.
This program currently provides OC San with a $40 million dollar policy of comprehensive
coverage for municipal liability,bodily injury and property damage,and personal injury.The
program was structured to also include Employment Practices and Public Officials Errors &
Omissions coverage.The $40 million dollar coverage has a self-insured deductible of
$500,000.Since 1997,the Employment Practices portion of coverage has been enhanced
from a $2 million-dollar sub-limit to the full policy limit of $40 million dollars.
The estimated cost for Excess General Liability is $906,635, an increase of $151,106 (20%).
3)Excess Workers’ Compensation
The Excess Workers’Compensation insurance coverage is with Public Risk Innovation,
Solutions,and Management (PRISM)(formerly California State Association of Counties
Excess Insurance Authority (CSAC EIA).OC San has participated in this program or its
predecessor since 2003.The Excess Workers’Compensation program currently provides
“Statutory”(unlimited)coverage with a self-insured retention (SIR),or deductible,of $1 million.
The use of Excess Workers’ Compensation Insurance dates back to the late 1980’s.
The estimated cost for Excess Workers’Compensation is $271,860,an increase of $67,091
(33%).
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File #:2021-1684 Agenda Date:6/9/2021 Agenda Item No:8.
4)Earthquake Insurance
OC San previously carried earthquake insurance as part of its Property Insurance,but in the
last 15 years earthquake insurance proved difficult to obtain or not cost-effective.OC San
asked its insurance broker each year to survey the market to see if rates have changed.In
2015,a plan was created to maintain coverage on several key OC San structures identified by
Engineering,thus keeping the cost manageable.The insurance is a high deductible plan with
a limit of $25 million dollars in total.
The estimated cost for Earthquake Insurance is $118,166, an increase of $19,459 (20%).
FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San’s Purchasing Ordinance.This item has been
included in the FY 2021-22 Budget Update.
ATTACHMENT
The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda
package:
N/A
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ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1674 Agenda Date:6/9/2021 Agenda Item No:9.
FROM:James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
PROPOSED FY 2021-22 BUDGET UPDATE
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
Approve the proposed Operating, Capital, Debt Service, and Self-Insurance Budgets for FY 2021-22
as follows:
FY 2021-22
Net Operating $ 183,950,874
Self-Insurance - Workers’ Comp.$ 841,860
Self-Insurance - Property & Gen. Liability $ 2,609,393
Net Capital Improvement Program $ 224,560,503
Debt/COP Service(1)$ 234,506,355
Intra-District Joint Equity Purchase/Sale(2)$ 3,500,000
TOTAL $ 649,968,985
PP
(1)
PPIncludes $163,775,355 in maturing and callable debt
(2)
PPCash to/from Revenue Area 14 (RA14)in exchange for capital assets to/from Consolidated Revenue Area
15 (RA15)
BACKGROUND
The FY 2021-22 Proposed Budget Update is included for the Committee's consideration.The
Budget Update has been presented to the Operations Committee at the regular June meeting in
order to allow each Standing Committee an opportunity to review the proposal prior to the June
Board meeting.Although each Committee has had an opportunity to review the proposal,it remains
the responsibility of the Administration Committee to recommend approval.
The Administration Committee is requested to recommend that the Board of Directors approve this
budget at the June 23, 2021 Board of Directors meeting.
RELEVANT STANDARDS
·Produce Operating and CIP budgets every two years, with annual update
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File #:2021-1674 Agenda Date:6/9/2021 Agenda Item No:9.
PROBLEM
The Orange County Sanitation District (OC San)cannot maintain and monitor its financial condition,
operations,and future capital improvements without examination and transparency into its resources,
revenues, reserves, and outlays.
PROPOSED SOLUTION
Providing the Board of Directors with an understanding of OC San’s resources will assist in the
approval of the proposed budget update.
TIMING CONCERNS
The proposed budget update,effective July 1PPPP of this year,will be finalized and presented to the
Board of Directors for adoption in June.
RAMIFICATIONS OF NOT TAKING ACTION
OC San will not have an updated budget reflecting any changes since the adoption of the two-year
budget to be able to carry out its financial fiduciary duties beyond June 30, 2021.
ADDITIONAL INFORMATION
OC San’s proposed Fiscal Year 2021-22 operating ($183.9 million)and capital improvement program
($224.6 million)budget totals $408.6 million,or $6.8 million (1.6 percent)below what was approved
last year as the second year of the adopted two-year budget.The decrease in the FY 2020-21
budget is primarily attributable to a $16.2 million reduction in capital spending for changes in project
estimates and scheduling and an increase of $9.5 million in operating budget.
The budget continues to reflect the agency’s ongoing efforts to streamline operations.Staffing levels
are proposed to remain at 639 FTEs in FY 2021-22.
ATTACHMENT
The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda
package:
·FY 2021-22 Budget Presentation
·Proposed FY 2021-22 Budget Update
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6/1/2021
1
Proposed FY 2021‐22
Budget Update
Wally Ritchie,
Controller
Administration
Committee
June 9, 2021
•FY 2021‐22 Update
•2nd Year of 2‐Year Adopted Budget
•Stable Revenues
•Expenses Include
•Operating
•Capital Improvement Program
•Debt Service
•Staffing –No New Positions (639 FTE)
•No New Debt
*All figures in millions unless otherwise noted
Overview
2
1
2
6/1/2021
2
Where the Money Comes From
REVENUE
Category 2020‐21
Adopted
2021‐22
Adopted
2021‐22
Proposed
Service Fees $316.7 $325.4 $323.2
Property Taxes 99.9 102.0 103.2
Capital Facilities Capacity Charges 20.1 20.7 16.6
Permit User Fees 12.8 13.0 12.6
Interest 13.2 13.1 14.5
Intradistrict Transfers 6.1 3.5 3.5
Debt Proceeds* 0.0 0.0 163.8
Other Revenue 16.0 16.7 19.1
Total Funding Sources $484.8 $494.4 $656.5
Interest
$14.5 M
2.2%
Intradistrict
Transfers
$3.5 M
0.5%
Property Taxes
$103.2 M
15.7%
Other
$19.1 M
2.9%
Debt Proceeds
$163.8 M
25.0%
Fees & Charges
$352.4
53.7%
3
* 2021A Refunding
REVENUE ‐RATES
SFR Rate for FY 2021‐22
$343
$4 or 1.2% Increase
$1,169
$715
$636
$598
$573
$469
$444
$439
$455
$430
$339
$313
$309
$296
$213
$‐ $200 $400 $600 $800 $1,000 $1,200
San Francisco
Vallejo Sanitation/Flood Control District
City of Los Angeles
Central Contra Costa Sanitary District
City of San Diego
Dublin San Ramon Services District
Sacramento County
East Bay MUD
Union Sanitary District
City of Hayward
OC San
Irvine Ranch Water District
City of Fresno
Oro Loma Sanitary District
Los Angeles County
Annual Single Family Residential Rates
(July 2020)
4
3
4
6/1/2021
3
Capital Improvement Program$224.6 M36.9%
Debt Service$234.5 M36.1%
Other Requirements$7.0 M1.0%
Operating Expenses
$183.9 M44.0%
Where the Money Goes
EXPENSES
Category 2020‐21
Adopted
2021‐22
Adopted
2021‐22
Proposed
Capital Improvement Program, Net $147.6 $240.8 $224.6
Operating Expenses 174.3 174.5 183.9
Debt Service* 72.8 168.9 234.5
Other Requirements 6.1 6.5 7.0
Total Funding Uses $400.8 $590.7 $650.0
5
*2021A Refunding ‐$163.8M
OPERATING EXPENSES
Total FY 20‐21 &
FY 21‐22 Adopted Budgets $348.8
Total FY 20‐21 Projected &
FY 21‐22 Proposed Budgets $355.7
$174.3
$171.7
$174.5
$183.9
FY 2020‐21
Adopted
FY 2020‐21
Projected
FY 2021‐22
Adopted
FY 2021‐22
Proposed
Operating Expenses
(in millions)
6
Department Budget
2020‐21
Adopted
2021‐22
Percent
Change
Proposed
2021‐22
Percent
Change
Administration Units
General Manager's Office $4.3 $4.4 2.3% $4.1 (6.8%)
Human Resources 6.6 7.0 6.1% 7.2 2.9%
Administrative Services 27.7 28.5 2.9% 30.1 5.6%
Sub‐Total $38.6 $39.9 3.4% $41.4 3.8%
Operating Units
Environmental Services 19.3 20.3 5.2% 21.2 4.4%
Engineering 5.6 5.6 0.0% 5.4 (3.6%)
Operations & Maintenance 110.8 108.7 (1.9%) 115.9 6.6%
Sub‐Total $135.7 $134.6 (0.8%) $142.5 5.9%
Total $174.3 $174.5 0.1% $183.9 5.4%
5
6
6/1/2021
4
CIP Categories
Treatment Projects 194.1$
Collection Projects 40.5
Equipment 5.0
FY 2021‐22 CIP Authority 239.6
CIP Savings & Deferrals (15.0)
FY 2021‐22 Net CIP 224.6$
10‐Year Net CIP Outlay 3.0$ Billion
CAPITAL IMPROVEMENT PROGRAM
Rehabilitation and
Replacement
66%
Strategic Initiatives
29%
Additional Capacity
4%
Regulatory
1%
7
CAPITAL IMPROVEMENT PROGRAM
0
50
100
150
200
250
300
350
400
Mil
l
i
o
n
s
Projected FY 2021‐22 Proposed Net CIP Outlay FY2020‐21 Approved Net CIP Outlay
8
7
8
6/1/2021
5
DEBT SERVICE
Total Outstanding COP Balance 7/1/21 $ 909,620,000
Blended Interest Rate 3.05%
FY 2021‐22 Debt Service $ 234.5M*
* Refunding debt will be issued to replace 2011A and 2018A in the amount
of $163.8M
* All outstanding debt to be paid off by 2044
9
DEBT SERVICE
* No New Debt Issues are Planned
10
0
100
200
300
400
500
600
700
800
900
1,000
2020 2025 2030 2035 2040 2045
Mil
l
i
o
n
s
Outstanding Debt
9
10
6/1/2021
6
Revenue
Proposed
FY 2021‐22
Fees & Charges $ 352.4
Property Taxes 103.2
Refunding Debt 163.8
Interest 14.5
Intradistrict Transfers 3.5
Other Revenue 19.1
$ 656.5
SUMMARY
Expenses
Proposed
FY 2021‐22
Operating Expenses $ 183.9
Capital Improvement Program 224.6
Debt Service 234.5
Other Requirements 7.0
$ 650.0
11
Questions
?
12
11
12
Orange County Sanitation District, California
FISCAL YEAR 2021-2022
BUDGETUPDATE
BUDGET UPDATE — FISCAL YEAR 2021-2022
Orange County Sanitation District, California
BUDGET UPDATE
Fiscal Year 2021-22
OUR MISSION
“To protect public health and the environment by providing effective
wastewater collection, treatment, and recycling.”
BUDGET UPDATE — FISCAL YEAR 2021-2022BUDGET UPDATE — FISCAL YEAR 2021-2022
GFOA BUDGET PRESENTATION AWARD
BUDGET UPDATE — FISCAL YEAR 2021-2022BUDGET UPDATE — FISCAL YEAR 2021-2022
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, 2020.
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.
OC San Service Area .....................................................................................................................................i
Board of Directors ........................................................................................................................................ii
Board Committees ......................................................................................................................................iii
Orange County Sanitation District Organization Chart .......................................................................iv
Administrative Officials ..............................................................................................................................v
Message from the General Manager ........................................................................................................vi
Finance Summary ........................................................................................................................................1
Financial Overview & Budgetary Issues ..................................................................................................2
Where the Money Comes From .................................................................................................................6
Funding Sources by Category ....................................................................................................................6
Where the Money Goes ...............................................................................................................................8
Funding Uses by Category .........................................................................................................................8
Collection, Treatment & Recycling Process Overview .....................................................................10
Strategic Planning .....................................................................................................................................12
Infrastructure Asset Management .........................................................................................................14
Capital Improvement Program ...............................................................................................................24
Debt Financing Program ..........................................................................................................................26
Operating Expenses ..................................................................................................................................28
Departments ...............................................................................................................................................32
Summary ......................................................................................................................................................32
General Manager’s Office .........................................................................................................................34
Human Resources ......................................................................................................................................36
Administrative Services ............................................................................................................................38
Environmental Services .............................................................................................................................40
Engineering .................................................................................................................................................42
Operations and Maintenance ...................................................................................................................44
Appendix .................................................................................................................................................. A-1
Cash Flow Projection ..............................................................................................................................A-2
Capital Improvement Program Summary ..........................................................................................A-4
Project Summary ..................................................................................................................................... A-5
Capital Improvement Expenditure Graphs ........................................................................................A-6
Summary of Capital Requirements ......................................................................................................A-7
New Project Descriptions .....................................................................................................................A-11
Capital Equipment Budget Summary ...............................................................................................A-14
Capital Equipment Budget Detail ......................................................................................................A-16
Levels of Service ....................................................................................................................................A-18
Self-Funded Insurance Plans ...............................................................................................................A-20
Historical Staffing Summary ...............................................................................................................A-21
Historical Staffing Detail ......................................................................................................................A-22
Appropriations Limit ............................................................................................................................A-31
Miscellaneous Statistics ........................................................................................................................A-32
Wastewater Treatment Process Diagram
TABLE OF CONTENTS
BUDGET UPDATE — FISCAL YEAR 2021-2022BUDGET UPDATE — FISCAL YEAR 2021-2022
OC SAN SERVICE AREA
Orange County Sanitation District Service Area and Treatment Plant Locations in Orange County, California
Sewer pipelines
Plant No. 1 (P1)
Plant No. 2 (P2)
Pump Stations
Unincorporated Orange County
(white areas)
LEGEND
IRVINE
ANAHEIM
ORANGE
SANTAANA
FULLERTON
BREA
TUSTIN
YORBALINDA
HUNTINGTONBEACH
COSTAMESA
GARDENGROVE
SEALBEACH
BUENAPARK
NEWPORTBEACH
LAHABRA
WESTMINSTER
CYPRESS
PLACENTIA
FOUNTAINVALLEY
STANTONLOSALAMITOS
VILLAPARK
LAPALMA
OC SANService AreaArea
(area enlarged)(area enlarged)
PacificOcean
P1
P2
DISCLAIMER: Map prepared by theOrange County Sanitation District. This map is intended for graphical representation only. No level of accuracy is claimed.Portions of this derived product contain geographical information copyrighted by Rand McNally 2013. All Rights Reserved.REVISED: 2018
±
iBUDGET UPDATE — FISCAL YEAR 2021-2022BUDGET UPDATE — FISCAL YEAR 2021-2022
ii
BOARD OF DIRECTORS
Agency/City Active Director Alternate Director
Anaheim Stephen Faessel Jose Diaz
Brea Glenn Parker Steven Vargas
Buena Park Art Brown Connor Traut
Cypress Stacy Berry Anne Hertz
Fountain Valley Patrick Harper Glenn Grandis
Fullerton Jesus J. Silva Nick Dunlap
Garden Grove Steve Jones John O’Neill
Huntington Beach Kim Carr Dan Kalmick
Irvine Anthony Kuo Farrah N. Khan
La Habra Rose Espinoza Jose Medrano
La Palma Marshall Goodman Nitesh Patel
Los Alamitos Mark Chirco Ron Bates
Newport Beach Brad Avery Joy Brenner
Orange Kim Nichols Chip Monaco
Placentia Chad Wanke Ward Smith
Santa Ana Johnathan Ryan Hernandez Nelida Mendoza
Seal Beach Sandra Massa-Lavitt Schelly Sustarsic
Stanton David Shawver Carol Warren
Tustin Ryan Gallagher Austin Lumbard
Villa Park Chad Zimmerman Robert Collacott
Sanitary/Water Districts
Costa Mesa Sanitary District Robert Ooten Art Perry
Midway City Sanitary District Andrew Nguyen Sergio Contreras
Irvine Ranch Water District John Withers Douglas Reinhart
Yorba Linda Water District Brooke Jones Phil Hawkins
County Areas
Member of the Board of Supervisors Doug Chaffee Donald P. Wagner
BUDGET UPDATE — FISCAL YEAR 2021-2022BUDGET UPDATE — FISCAL YEAR 2021-2022
iii
BOARD COMMITTEES
Steering Committee
David Shawver, Board Chair
John Withers, Board Vice-Chair
Stacy Berry, Chair, Operations Committee
Jesus Silva, Chair, LaPA Committee
Chad Wanke, Chair, Administration Committee
Sandra Massa-Lavitt, Member-At-Large
Glenn Parker, Member-At-Large
Administration Committee
Chad Wanke, Chair (Placentia)
Glenn Parker, Vice-Chair (Brea)
Brad Avery (Newport Beach)
Art Brown (Buena Park)
Kim Carr (Huntington Beach)
Mark Chirco, (Los Alamitos)
Rose Espinoza (La Habra)
Marshall Goodman (La Palma)
Patrick Harper (Fountain Valley)
Anthony Kuo (Irvine)
Andrew Nguyen (MCSD)
David Shawver, Board Chair (Stanton)
John Withers, Board Vice-Chair (IRWD)
Legislative and
Public Affairs Committee
Jesus Silva, Chair
Marshall Goodman, Vice-Chair
Kim Carr, Member-At-Large
Anthony Kuo, Member-At-Large
Andrew Nguyen, Member-At-Large
David Shawver, Board Chair
John Withers, Board Vice-Chair
Operations Committee
Stacy Berry, Chair (Cypress)
Brooke Jones, Vice-Chair (YLWD)
Doug Chaffee (Board of Supervisors)
Stephen Faessel (Anaheim)
Ryan Gallagher (Tustin)
Johnathan Ryan Hernandez (Santa Ana)
Steve Jones (Garden Grove)
Sandra Massa-Lavitt (Seal Beach)
Kim Nichols (Orange)
Bob Ooten (CMSD)
Jesus J. Silva (Fullerton)
Chad Zimmerman (Villa Park)
David Shawver, Board Chair (Stanton)
John Withers, Board Vice-Chair (IRWD)
BUDGET UPDATE — FISCAL YEAR 2021-2022BUDGET UPDATE — FISCAL YEAR 2021-2022
ORGANIZATION CHART
Board ofDirectors
General Manager General Counsel Office
Human Resources Administration
Risk Management/ Safety/Security
HumanResources
(26 FTEs)
General Management Administration
Board Services
Public Affairs
General Manager’s Office
(15 FTEs)
Engineering Administration
Planning
Project Management
Design
Construction Management
Operations and Maintenance Administration
Collection Facilities Operations and Maintenance
Fleet Services
Plant No. 1 Operations
Plant No. 2 Operations
Plant No. 1 Maintenance
Plant No. 2 Maintenance
Engineering
(116 FTEs)
Operations and Maintenance
(287 FTEs)
AssistantGeneralManager
Administrative Services
Consolidated Services
Financial Management
Contracts, Purchasing and Materials Management
Information Technology
Environmental Services Administration and Regulatory Compliance
Resource Protection
Laboratory, Monitoring and Compliance
Administrative Services
(102 FTEs)
EnvironmentalServices
(93 FTEs)
AssistantGeneralManager
iv BUDGET UPDATE — FISCAL YEAR 2021-2022BUDGET UPDATE — FISCAL YEAR 2021-2022
ADMINISTRATIVE OFFICIALS
Management Team
General Manager ........................................................................................................................................James D. Herberg
Assistant General Manager and Director of Finance and Administrative Services ............................Lorenzo Tyner
Assistant General Manager and Director of Operations and 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
vBUDGET UPDATE — FISCAL YEAR 2021-2022BUDGET UPDATE — FISCAL YEAR 2021-2022
vi
MESSAGE FROM THE GENERAL MANAGER
BUDGET UPDATE — FISCAL YEAR 2021-2022BUDGET UPDATE — FISCAL YEAR 2021-2022
June 1, 2021
Honorable Chair and Board of Directors:
I am pleased to submit the Orange County Sanitation District’s (OC San) Proposed Budget Update for fiscal year
2021-22, the second year of the two year budget adopted in June 2020. This document lays out the framework
of OC San’s activities during the upcoming fiscal year and serves as a source of information for the Board of
Directors, our ratepayers, and our employees. This budget includes the operational, capital and debt service
expenditures necessary to cost-effectively support our mission and execute the Strategic Plan adopted by
our Board of Directors in November 2019. The projects and programs contained in this budget are mostly a
continuation of OC San’s on-going workload.
OC San’s proposed Fiscal Year 2021-22 operating and capital improvement program budget totals $408.5 million, or $6.8 million (1.6 percent) below what was approved last year as the second year of the adopted two-year budget. The proposed 2021-22 Capital Improvement Program (CIP) budget includes an overall decrease of $16.2 million from the budget approved a year ago, while the Operating Budget includes an increase of $9.4 million. The Operating Budget increase is primarily driven by additional chemical, utility, and infrastructure maintenance/repair costs. Some of the Operating Budget increase is also due to $3.5 million in charges being moved from the CIP to the Operating budget in accordance with accounting standards. During the budget preparation process, I met with each of the departments to ensure their budget proposals were prudent and cost-effective.
This budget is being submitted 15 months into the COVID-19 pandemic. While there are still some unknowns
and uncertainties about how the pandemic will fully be resolved, this proposed budget reflects a financially
sound and stable organization that is weathering the crisis and continues to move forward.
I would like to highlight some of our areas of focus for 2021-22:
• Operational Readiness – OC San continues to look ahead, preparing for our future infrastructure needs and
for emergency events such as line breaks, earthquakes, and potential cybersecurity breaches. We are updating
our Business Continuity Plans and conducting tabletop exercises for emergency scenarios to allow us to
respond quickly and effectively without compromising our mission or levels of service.
• Expanded Recycling Efforts
– Groundwater Replenishment System Final Expansion – In partnership with the Orange County Water
District (OCWD), our agency recycles enough water to supply the needs of 850,000 people through the
Groundwater Replenishment System (GWRS). Construction continues on the Final Expansion phase of
this internationally recognized project. Changes and additions to infrastructure will allow for the treated
water from Plant No. 2 that is currently unavailable, to be processed at the GWRS facility in Fountain
Valley. With this final phase, the GWRS will increase treatment capacity from 100 to 130 million gallons
per day; enough water for 1 million people in central and northern Orange County.
– Food Waste Treatment Facility – A project created to assist the cities in our service area satisfy the requirements of California State Assembly Bill 1826 and Senate Bill 1383 which requires that organic wastes be diverted away from landfills. This regulatory shift has created an opportunity in the wastewater sector to provide a cost effective and environmentally friendly service to help manage organics using OC San’s existing anaerobic digesters, which in turn will produce renewable energy to power our treatment plants.
• Headquarters Complex – In our ongoing effort to streamline our operation and plan for the future, we have
acquired 7.5 acres across Ellis Avenue from Reclamation Plant No. 1 in Fountain Valley. The buildings on
those properties have been demolished to make room for a consolidated headquarters building to house the
staff that are currently located in various buildings and trailers spread out on the existing 100-acre wastewater
treatment facility. The new headquarters complex will allow space for future wastewater treatment
infrastructure and will centralize our administrative functions. Construction is scheduled to begin in August
2021 with move-in by the end of 2023.
vii
2021-22 BUDGET UPDATE
BUDGET UPDATE — FISCAL YEAR 2021-2022BUDGET UPDATE — FISCAL YEAR 2021-2022
• Capital Improvement Program – OC San’s Capital Improvement Program (CIP) has evolved over time. It began by focusing on creating the initial infrastructure of the collections and treatment system, shifted to expanding capacity, and now our focus is on aging infrastructure, incorporating climate resiliency, seismic risk, and maximizing resource recovery. While the COVID-19 pandemic has resulted in operational modifications, OC San has continued moving our CIP forward, with 32 projects with a construction budget of $438 million, helping keep the economic engine running in Orange County.
• Infrastructure Reliability and Asset Management – OC San’s infrastructure must operate continuously day
and night, requiring that we proactively manage the condition of more than $10.7 billion in assets to ensure
reliable operation. Over the past two years, we made a concerted effort to establish an updated and more
robust understanding of the condition and performance of all critical and major assets and our ability to meet
established levels of service. Last year, we updated our Asset Management Plan to develop a tactical approach
for addressing asset condition and performance issues. The plan lays out how we will operate and maintain
those assets to deliver the required level of service at the lowest lifecycle cost with an acceptable level of risk.
OC San will be investing an additional $29.7 million in repairs and maintenance this next year.
• Safety and Security – Capital projects, maintenance activities, drafting of an implementation plan for a Voluntary Protection Program Certification, and training to address safety in our workplace are all included in this budget, as are enhancements to our physical, electronic, and cyber security infrastructure.
• Staffing Cost Containment – While continuing to implement programs to enhance our resiliency, reliability
and resource recovery, this budget displays our commitment to efficiency as it includes no staffing increases.
• Strategic Planning – OC San strives to create an integrated planning environment which begins with the strategic and policy expectations of the Board of Directors and ensures that our efforts are aligned throughout the organization. In 2021-22, the Board will adopt an updated Strategic Plan to set the policy framework and priorities for the next two years. OC San will continue to provide wastewater collection, treatment, recycling, infrastructure maintenance, ocean monitoring, and many other services while keeping rates among the lowest in California. This budget fully supports the goals and levels of service included in the Orange County Sanitation District’s Strategic Plan and positions us well to proactively manage in the coming years.
James D. Herberg
General Manager
Orange County Sanitation District
viii BUDGET UPDATE — FISCAL YEAR 2021-2022BUDGET UPDATE — FISCAL YEAR 2021-2022
1BUDGET UPDATE — FISCAL YEAR 2021-2022BUDGET UPDATE — FISCAL YEAR 2021-2022
FINANCESUMMARY
BUDGET UPDATE — FISCAL YEAR 2021-2022
FINANCIAL SUMMARY/OVERVIEW
AND BUDGETARY ISSUES
Budget Overview
OC San’s proposed Fiscal Year 2021-22 operating and
capital improvement program budget totals $408.5
million, or $6.8 million (1.6 percent) below what was
approved last year as the second year of the adopted
two-year budget. The decrease in the FY 2021-22
budget is primarily attributable to a $16.2 million
reduction in capital spending for changes in project
estimates and scheduling and an increase of $9.4
million in operating budget.
The budget continues to reflect the agency’s ongoing
efforts to streamline operations. Staffing levels are
proposed to remain at 639 FTEs in FY 2021-22.
OC San’s Capital Improvement Program (CIP) budget
for FY 2021-22 is $224.6 million. This CIP budget
finances collection system, joint works treatment and
disposal system improvement projects. The $16.2
million decrease from the originally proposed budget
is attributable to changes in project schedules and
estimates that result in deferred spending.
Financing
OC San uses long-term Certificates of Participation
(COP) for financing capital improvements that cannot
be completely funded from current revenue. Before
any new debt is issued, the impact of debt service
payments on total annual fixed costs is analyzed.
Total COP indebtedness is currently at $909.6 million.
It is planned to refinance $163.8 million of maturing
and callable debt during FY 2021-22 because of the
low interest rate environment that will produce
savings over the life of the debt. No new money debt
financings are currently forecasted to assist in the
funding of the $3.0 billion in capital improvements
required over the next ten years.
Staffing
Reflecting the organization’s commitment to
providing service at the lowest costs, the budget
includes no increase in authorized full time positions
for FY 2021-22. Total filled positions will not exceed
639 full time equivalent (FTE) staff positions. This
staffing level continues to reflect a significant
reduction from the Fiscal Year 1995-96 approved
staffing level of 678 positions.
Overall personnel costs for FY 2021-22 will
approximate the original adopted budget due to
reductions in retirement premiums following the pay
down of the Orange County Employees’ Retirement
System (OCERS) unfunded accrued liability.
Costs for medical insurance and workers
compensation benefits are also expected to remain the
same as the level originally approved. OC San will
continue to effectively manage these expenses with
approximately 26 percent of the budget allocated
to employee costs, much less than most other
government agencies.
Cost of Treatment
The agency’s two treatment plants, located in
Fountain Valley and Huntington Beach, process
about 188 million gallons of wastewater each day
generated by approximately 2.6 million residents
and a 1.8-million-person employment in central and
northwest Orange County. The proposed budget to
operate, maintain and manage our sewage collection,
treatment and disposal system in FY 2021-22 is $183.9
million.
The cost per million gallons of wastewater treated,
(an industry-wide performance measurement), is
expected to increase in FY 2021-22 to $2,681, a $106,
or 4.1 percent increase from the 2020-21 projection of
$2,575. The increase in the cost per million gallons is
due to an $9.4 million increase in total operating costs.
Sewer Service Fees
The 2021-22 single family residential rate, the
underlying basis for all sewer rates, is proposed at
$343 a year. This follows a one-year rate hold due to
the coronavirus pandemic and represents an increase
of $4 per the rate structure approved by the Board of
Directors.
Groundwater Replenishment
System (GWRS)
The OC San Strategic Plan includes water
reclamation. Partnered with the Orange County
Water District (OCWD), OCWD completed the
GWRS, the nation’s largest water reclamation project,
in January 2008.
The original GWRS facility reclaimed 70 million
gallons of water a day (mgd). OC San and OCWD
equally shared the expenses of this project.
Initial expansion of the GWRS increased the
production of reclaimed water to 100 mgd. The
project, which was funded entirely by the OCWD,
was completed in 2015. OC San is directing all
reclaimable flows from Plant No. 1 to OCWD in
support of providing maximum amounts of treated
wastewater for reclamation.
2 BUDGET UPDATE — FISCAL YEAR 2021-2022
BUDGET UPDATE — FISCAL YEAR 2021-2022
2021-22 BUDGET UPDATE
3BUDGET UPDATE — FISCAL YEAR 2021-2022
The plan to achieve the final expansion of the GWRS
was approved by both OC San and OCWD Board
of Directors in 2016. The final expansion of GWRS
will bring the total production of reclaimed water to
130 mgd. Since OC San has maximized the available
reclaimable wastewater treated at Plant No. 1,
secondary effluent from Plant No. 2 will be sent to the
GWRS for reclamation. Modification of existing Plant
No. 2 Headworks, a new Plant Water pump station
and construction of new pumping, equalization and
conveyance facilities will be funded by the OCWD.
As the Headworks Modification and Plant Water
project is impacting OC San’s critical infrastructure,
OC San will manage the design and construction of
these projects and will be reimbursed by OCWD up
to $50 million. GWRS final expansion is scheduled to
complete in 2023.
Capital Improvement Program
(CIP)
The total CIP budget for FY 2021-22 is being proposed
at $224.6 million, a decrease of $16.2 million from the
previously approved 2021-22 budget primarily due to
changes in project schedules and estimates that result in deferred spending Over the next 10 years, OC San’s Capital Improvement Program will:
• Rehabilitate the headworks, primary treatment, utility systems and perform security improvements at Plant No. 1.
• Replace a third of the primary treatment facilities, rehabilitate the outfall pumping and perform power reliability improvements at Plant No. 2.
• Rehabilitate all of the digester gas compressor systems
• Construct a new food waste receiving facility and rehabilitate and replace digesters at Plant No.2
• Construct a new Headquarters Complex.
• Replace or rehabilitate OC San’s aging pump stations and trunk sewers in the collections system. This includes the West Side sewers and Seal Beach Pump Station. Newhope Placentia Trunk Improvements (in Anaheim) will continue construction through 2022.
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-20224
FINANCIAL SUMMARY/OVERVIEW
AND BUDGETARY ISSUES
Operating Budget Increase –
$12.2M
The operations budget for the collection, treatment, and disposal of wastewater is proposed at $183.9 million, a $12.2 million (7.1 percent) increase above 2020-21 projected expenditures.
Although some expenses will increase or decrease slightly, the overall increase to the operating budget in 2021-22 over the 2020-21 projected is primarily attributable to the following specific areas:
Salaries and Benefits – $5.7M
Increase
Salaries and benefits will increase $5.7 million above the 2020-21 projected expenditures primarily due to the impacts of the collective bargaining agreements and increases in medical insurance premiums. The increases are partially offset by a decrease in workers’ compensation costs and lower retirement premiums resulting from OC San’s previous decision to use available cash reserves to reduce the unfunded pension liability.
These changes reflect the impacts from collective bargaining agreements and revised actuarial assumptions on retirement premiums.
Professional Services – $2.7M
Increase
The increase is primarily due to increases in anticipated engineering costs and technical consulting for operationally funded projects and software program consultants for OC San systems.
Repairs and Maintenance –
$1.7M Increase
This expense category includes parts and services for repairing aging treatment plant and collection facilities and reflects base budgets for equipment maintenance as well as out-sourced annual service contracts and maintenance agreements. The fiscal year 2021-22 budget increase over the 2020-21 projected expenditures is mostly attributable to delayed rehabilitation projects for primary and secondary clarifiers, increases in basic repairs and maintenance costs and repairs to major trunklines in the collection system.
Other Materials, Supplies and
Services – $1.1M Increase
The proposed budget increase over the 2020-21 projected expenditures is due to lab certification and audit fees, regulatory operating fees, and expenses associated with PFAS studies and monitoring.
Operating Expenses
(in millions)
$174.3M $171.7M $174.5M
FY 2020-21
Adopted
5.4%
0.1%
Budget over budget percentages are shown above the columns.
FY 2020-21
Projected
FY 2021-22
Proposed
FY 2021-22
Adopted
$183.9M
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-2022 5
2021-22 BUDGET UPDATE
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-20226
FINANCIAL SUMMARY/FUNDING SOURCES BY CATEGORY
Fees & Charges
$352.4M
53.7%
Property Taxes
$103.2M
15.7%
Interest
$14.5M
2.2%
IntradistrictTransfers$3.5M0.5%
Other $19.1M2.9%
Debt Proceeds
$163.8M
25.0%
Where The Money Comes From
Funding Sources by Category
(in millions)
2020-21 2021-22 2021-22
Category Adopted Adopted Proposed
Service Fees $316.7 $325.4 $323.2
Property Taxes 99.9 102.0 103.2
Permit User Fees 12.8 13.0 12.6
Capital Facilities Capacity Charges 20.1 20.7 16.6
Interest 13.2 13.1 14.5
Intradistrict Transfers 6.1 3.5 3.5
Debt Proceeds 0.0 0.0 163.8
Other Revenue 16.0 16.7 19.1
Total Funding Sources $484.8 $494.4 $656.5
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-2022 7
2021-22 BUDGET UPDATE
OC San has a variety of revenue sources available for operating and capital expenses. The major revenue sources are:
General Service Fees –
$323.2M
User fees are ongoing fees for service paid by customers connected to the sewer system and are the primary source of OC San’s revenue. A property owner, or user, does not pay user fees until connected to the sewer system and receiving services. Once connected, users are responsible for their share of the system’s costs, both fixed and variable, in proportion to their demand on the system. These fees are for both Single Family Residences (SFR) and Multiple Family Residences (MFR).
Property Taxes – $103.2M
The County of Orange 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. OC San receives a share of the basic levy proportionate to what was received in the 1976 to 1978 period, less $3.5 million, the amount that represents the State’s permanent annual diversion from special districts to school districts that began in 1992-93. OC San’s share of this revenue is dedicated for the payment of debt service before other operational expenses.
Permit User Fees – $12.6M
Permit user fees are paid by large industrial and commercial properties owners connected to the sewer system. These fees are for the owner’s share of the system’s costs, both fixed and variable, in proportion to the user’s demand on the system.
Since the inception of the Permit User Fee Program in 1970, users of OC San’s system that discharge high volumes or high strength wastewater have been required to obtain a discharge permit and pay extra fees for the cost of service received.
Capital Facilities Capacity
Charges (CFCC) – $16.6M
The Capital Facilities Capacity Charge is a one-time charge imposed at the time a building or structure is newly connected to OC San’s system, directly or indirectly, or an existing structure or category of use is expanded or increased. This charge pays for
OC San facilities that exist at the time the charge is imposed, or to pay for new facilities to be constructed in the future that will benefit the property being charged.
Interest Earnings – $14.5M
Interest earnings are generated from the investment of accumulated reserves consisting of a cash flow/contingency, a capital improvement, a renewal/ replacement, and a self-insurance reserve.
Intradistrict Transfers – $3.5M
In accordance with Amendment No. 2 to the Agreement for Purchase and Sale of Capacity Rights in Treatment, Disposal and Sewer Facilities between Irvine Ranch Water District (IRWD) and OC San dated November 15, 1995, ownership is adjusted annually to reflect the current equity percentage ownership based on sewage flows.
Debt Proceeds – $163.8M
Certificates of Participation (COPs) are OC San’s primary mechanism for financing capital projects. COPs are repayment obligations based on a lease or installment sale agreement. COPs are not viewed as “debt” by the State of California, but rather a share in an installment arrangement where OC San serves as the purchaser.
Refinancing COPs can be beneficial to OC San when there is maturing or callable issues. In the current low interest rate environment, OC San can realize savings by issuing refunding COPs in the amount of $163.8 million. No new money debt issuances are being proposed as the $3.0 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.
Other Revenue – $19.1M
Other revenue includes self-insurance assessments for workers’ compensation and general liability coverage as well as reimbursements from other agencies for shared CIP and operating costs and miscellaneous revenue such as rents and leases.
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-20228
FINANCIAL SUMMARY/FUNDING
USES BY CATEGORY
Capital
ImprovementProgram
$224.6M
34.6%
Debt Service
$234.5M
36.1%
Operating
Expenses
$183.9M
28.3%
Other Requirements
$7.0M1.0%
Where The Money Goes
Funding Uses by Category
(in millions)
2020-21 2021-22 2021-22
Category Adopted Adopted Proposed
Capital Improvement Program, Net $147.6 $240.8 $224.6
Operating Expenses 174.3 174.5 183.9
Debt Service* 72.8 168.9 234.5
Other Requirements 6.1 6.5 7.0
Total Funding Uses $400.8 $590.7 $650.0
*The fiscal year 2021-22 debt service amount includes payment of $163.8 million for maturing and
callable debt for the refunding COPs.
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-2022 9
2021-22 BUDGET UPDATE
OC San budgets its funds in four distinct areas:
Operating Expenses - $183.9M
The proposed budget allocates resources to operate, maintain and manage our sewage collection, treatment, recycling and disposal system, and for any associated administrative or technical requirements.
Capital Improvement Program
(CIP) - $224.6M
To provide an appropriate level of service to OC San’s ratepayers, large capital improvements are required. The CIP provides for the management and implementation of these improvements. The CIP budget includes specific projects, cost estimates, and timelines. The gross CIP project budgets for 2021-22 total $234.6 million; however, the CIP cash outlays, net of savings and deferrals, is $224.6 million.
Debt Service - $234.5M
This is the cost of repaying debt. Long-term debt
financing allows OC San to complete large multi-
year capital projects by providing funds not always
immediately available. Currently, OC San is on track
to pay off its $909.6 million outstanding debt by 2044.
Other Requirements - $7.0M
This item includes an allocation for future
replacement, rehabilitation, and refurbishment
projects where detailed job plans have not yet
been prepared. Also included, in accordance with
Amendment No. 2 to the Agreement for Purchase
and Sale of Capacity Rights in Treatment, Disposal
and Sewer Facilities between IRWD and OC San
dated November 15, 1995, ownership is adjusted
annually to reflect the current equity percentage
ownership based on sewage flows.
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-202210
COLLECTION, TREATMENT AND
RECYCLING PROCESS OVERVIEW
OC San collects wastewater from 479 square miles
and approximately 2.6 million residents and a
1.8-million-person-employment in central and
northwest Orange County. The wastewater is
conveyed through 15 pump stations and gravity
sewers to either Reclamation Plant No. 1 in Fountain
Valley or Treatment Plant No. 2 in Huntington
Beach. After the wastewater reaches one of the
two treatment facilities, it undergoes preliminary
treatment where large solids, rags, non-dispersible
materials, and plastics are removed when the
wastewater passes through bar screens. Then it flows
through aerating grit chambers that remove coffee
grounds, sand, seeds, and gravel. All matter collected
in the preliminary treatment is taken by a contractor
to a landfill.
Primary treatment consists of wastewater settling in
large clarifying basins; chemicals enhance the solids
settling. The solids are scraped from the bottom
and skimmed from the top of the clarifiers and then
sent to digestion. Primary treated wastewater is
then pumped to secondary treatment where it is
processed using activated sludge and trickling filters.
The secondary solids collection process is similar to
the primary treatment solids collection process. All
the resulting water from the secondary treatment
processes at Plant No. 1 is sent to the Orange County
Water District (OCWD) for recycling/reuse after
purification by the Groundwater Replenishment
System (GWRS). Plant No. 2 secondary effluent is
discharged into the ocean. With the final expansion of
the GWRS in 2023, reclaimable Plant No. 2 secondary
effluent will be conveyed to the GWRS as another
source of specification water.
All of the solids collected during primary and
secondary treatment are sent to digesters for solids
processing. Primary solids and secondary solids
remain for an average of 18 days at 98 degrees
Fahrenheit in the digesters and are decomposed
by anaerobic bacteria into two main products,
biosolids and methane. The methane gas generated
during the natural decomposition of the solids in the
digesters is used to fuel the Central Power Generation
Systems and produce electricity used to operate both
treatment plants. The solids, with settling enhanced
by the addition of chemical coagulants, are treated,
and then dewatered to a cake. The caked biosolids are
then hauled from the treatment plants and recycled
by composting, by use as a land application, or by use
at a local landfill that produces methane.
Approximately 120 million gallons per day of
secondary effluent from Reclamation Plant No.
1 is sent to the OCWD for reclamation in its two
treatment and distribution systems. OCWD uses the
secondary effluent in two ways: The first is GWRS.
The GWRS is the largest water purification project
of its kind in the world; its construction was funded
jointly by OCWD and OC San. At 100 million gallons
per day, the GWRS generates enough pure water
to meet the needs of 850,000 people. The second
is OCWD’s Green Acres Project, which is a water
recycling effort that provides reclaimed water for
landscape irrigation at parks, schools and golf courses
as well as for industrial uses, such as carpet dying.
Multiple projects in design and construction will
contribute to the final expansion program that will
increase the conveyance of reclaimable secondary
effluent from Plant No. 2 to GWRS and increase
production to 130 million gallons per day of
recycled water.
Since the 1970’s, OC San, as an environmental agency,
has always recycled and reused by-products of its
treatment processes for the benefit of the health and
the environment of the people in its service area.
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STRATEGIC PLANNING
Introduction
Driven by the mission, vision, core values, and the
Strategic Plan, OC San continues 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.
Mission Statement
The Mission Statement is the basic foundation that
defines why we exist.
“To protect public health and the environment by
providing effective wastewater collection, treatment,
and recycling.”
Vision Statement
The Vision Statement supports the Mission Statement
by expressing a broad philosophy of what the Orange
County Sanitation District strives to achieve now
and in the future in the delivery of services to our
customers, vendors, other agencies, the general public
and each other.
Orange County Sanitation District will be a leader in:
• Providing reliable, responsive, and affordable
services in line with customer needs and
expectations.
• Protecting public health and the environment
utilizing all practical and effective means for
wastewater, energy, and solids resource recovery.
• Continually seeking efficiencies to ensure that the
public’s money is wisely spent.
• Communicating our mission and strategies with
those we serve and all other stakeholders.
• Partnering with others to benefit our customers,
this region, and our industry.
• Creating the best possible workforce in terms of
safety, productivity, customer service, and training.
Core Values
Our Core Values support the Mission and Vision
Statements by expressing the values, beliefs, and
philosophy that guides our daily actions. They help
form the framework of our organization and reinforce
our professional work ethic.
Honesty, Trust, and Respect We aspire to the highest degree of integrity, honesty, trust, and respect in our interaction with each other, our suppliers, our customers, and our community.
Teamwork and Problem Solving We strive to reach OC San goals through cooperative efforts and collaboration with each other and our constituencies. We work to solve problems in a creative, cost-effective and safe manner, and we acknowledge team and individual efforts.
Leadership and Commitment We lead by example, acknowledging the value of our resources and using them wisely and safely to achieve our objectives and goals. We are committed to act in the best interest of our employees, our organization, and our community.
Learning/Teaching – Talents, Skills and Abilities
We continuously develop ourselves, enhancing our talents, skills, and abilities, knowing that only through personal growth and development will we continue to progress as an agency and as individuals.
Recognition/Rewards We seek to recognize, acknowledge and reward contributions to OC San by our many talented employees.
OC San Planning Environment
OC San 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. OC San has developed a strategic planning model that creates a 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
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Board of Directors come onto and leave the governing body. It is initially important as an education tool for what and why OC San 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.
Strategic Plan
In November 2019, the Board of Directors adopted a new comprehensive strategic plan to steer OC San’s efforts. The Strategic Plan developed by the Board of Directors and staff defines the strategic initiatives to be pursued by OC San 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 OC San’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- Budget Control and Fiscal Discipline- Asset Management - Cybersecurity- Property Management
• Environmental Stewardship- Energy Independence- Climate and Catastrophic Event Resiliency- Food Waste Treatment- Water Reuse- Environmental Water Quality, Stormwater Management and Urban Runoff
• Wastewater Management- Chemical Sustainability- Biosolids Management- Constituents of Emerging Concern
• Workplace Environment- Resilient Staffing- Safety 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 OC San. With the updating of the Strategic Plan in November 2021, 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.
Strategic Planning
Process
Operational
Planning
Strategic
Planning
Board
Approval of
Strategic
Plan
Board
Approval of
Budget
Goal and
ObjectivesBudget
Monitoring and
Evaluation New or Altered
Levels of Service
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INFRASTRUCTURE ASSET MANAGEMENT
Asset Management
In December 2002, the Orange County Sanitation
District (OC San) Board adopted their “Asset
Management Strategic Plan and Framework Analysis”
(Strategic Plan). The Strategic Plan defined Asset
Management for OC San as; “to create and acquire,
maintain, rehabilitate, replace and augment these
valuable wastewater assets in the most cost effective
(lowest life cycle cost) sustainable manner at the level
of service required by present and future generations of
regulators and customers at an acceptable level of risk.”
OC San is committed to providing services for its
ratepayers 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. OC San 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.
Asset management has evolved into a comprehensive
decision-making framework that encompasses
engineering planning, design and construction
of quality facilities, optimized operation, proper
maintenance, and planned refurbishment and
disposal that will meet OC San’s changing needs.
This coordinated decision-making process will allow
OC San to consistently meet mandated levels of
service to the ratepayers at the lowest lifecycle cost.
OC San’s Asset Management Program focuses on
identifying short, medium and long-term planning of
systems to ensure the proper rate structure is in place
to support sustainable operations. OC San’s condition
assessment studies are conducted based on service
life and service conditions. This is important aspect
of the program and have yielded tangible benefits
in reduced risk levels and an improved capital
planning approach. The Asset Engineers use condition
assessment data along with maintenance data in
Maximo Computer Maintenance Management System
(CMMS) to update and maintain the Asset Registries.
The Registries include installation date, condition
and remaining useful life estimates for all of OC San’s
critical assets.
The Engineering Planning Division has been
maintaining a medium to long-term (up to 20
years) Capital Improvement Program (CIP) by
creating specific project plans for the refurbishment,
rehabilitation or replacement for each asset area. The
Asset Registries help guide the scope and timing of
these medium to long-term CIP projects.
This medium-term management is important for several reasons. By moving away from narrowly focused projects to solve individual problems, to more comprehensive projects refurbishing entire processes, OC San 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 assets and facilities, but over the twenty-years, the unknown amount of capital that is in need of rehabilitation is expected to be drastically reduced and replaced by more specific estimated capital needs.
Complementing the medium-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 are consistently reviewing their area assets, utilizing their criticality, condition information, maintenance history and engineering judgment, 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.
OC San 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 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 OC San owns is increasing steadily over time, the latent asset replacement obligation is rising, and as a consequence, OC San has planned for decreased capital projects for expansion and increased renewal expenditures in the future relative to past expenditure levels. Additional focus is given to ensuring that appropriate operation and maintenance strategies are being applied that consider the different ages of assets being maintained.
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INFRASTRUCTURE ASSET MANAGEMENT
Asset Valuation
The replacement valuation for all of OC San’s assets
has been updated in January 2020. The table below
presents the current replacement values of OC San’s
assets. The replacement value represents the cost
in August 2017 dollars to completely rebuild all the
assets to a new condition.
The 2020 replacement value is estimated to be $10.7B. In 2012, the prediction was $6.2B. It is projected that the replacement value will increase as the Capital Improvement Program continues and OC San tracks its assets in a progressive manner. The major reasons for this, the 2020 valuation was significantly detailed and thorough compared to the past.
Planned CIP Outlays
The following chart shows the 20-year CIP outlay which includes current and predicted future Capital Improvement Program projects.
OC San’s capital improvement and maintenance programs are focused on maintaining our infrastructure to ensure that our mission is delivered reliably and that our facilities are managed in a way that minimizes overall life cycle costs.
Valuation Plants Collection Total
Replacement Value $7.2 $3.5 $10.7(in billions)
0
50
100
150
200
250
300
350
400
450
FY
3
6
-
3
7
FY
3
7
-
3
8
FY
2
1
-
2
2
FY
2
2
-
2
3
FY
2
3
-
2
4
FY
2
4
-
2
5
FY
2
5
-
2
6
FY
2
6
-
2
7
FY
2
7
-
2
8
FY
2
8
-
2
9
FY
2
9
-
3
0
FY
3
0
-
3
1
FY
3
1
-
3
2
FY
3
2
-
3
3
FY
3
3
-
3
4
FY
3
4
-
3
5
FY
3
5
-
3
6
FISCAL YEAR
Budget CIP Future CIP Rehabilitation or Replacement
$
i
n
m
i
l
l
i
o
n
s
FY
3
8
-
3
9
FY
3
9
-
4
0
FY
4
0
-
4
1
20 Year CIP Outlay
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Collection System:
OC San’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 designed 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, closed-
circuit television (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 fiscal year 2020-21 the following maintenance
activities are projected to be completed:
• Cleaned 42 miles of regional sewer lines on a
cleaning schedule.
• CCTV video inspection of 75 regional system
manholes.
• CCTV video inspection of 50 miles of regional
sewer pipeline.
• Completed 83% of scheduled preventative
maintenance work.
• Managed odor control chemical expenditures to
93% of budget.
• Continued to implement emergency preparedness
bypass pumping plan for pump stations.
In addition, OC San has deployed level sensing
technology in the collection system for early warning
of a potential sewer spill, and condition-based sewer
cleaning. This will provide 24/7 level monitoring of
critical areas in the gravity collection system.
Total costs for the collections system maintenance is
greater than $9 million.
The following activities and goals are planned for fiscal year 2021-22:
• Major valve replacement at three Pump Stations.
• Repair of liners in the Sunflower Trunkline.
• Repair of the Bushard Diversion Structure.
• Clean 56 miles of regional sewer lines on a cleaning schedule.
• CCTV video inspection of 650 regional system manholes.
• CCTV video inspection of 70 miles of regional sewer pipeline.
• Complete at least 85% of scheduled preventative maintenance work.
• Manage odor control chemical expenditures to between 95-102 percent of budget.
• Continue to implement emergency preparedness bypass pumping plan for pump stations.
• Continue to deploy collection system level sensing equipment for condition-based cleaning.
The total cost for these proposed collections system activities is greater than $15 million.
Collection System Capital
Improvement Projects:
Our collections projects go through 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, upgrade facilities to meet current codes and standards, and in some instances to increase flow capacity due to observed increases in stormwater infiltration and/or growth in localized portions of our service area.
One of the larger projects is the Newhope-Placentia Trunk Replacement (Project No. 2-72) which is taking place in the cities of Fullerton and Anaheim. Seven miles of sewer along State College Boulevard, from Yorba Linda Boulevard to Orangewood Avenue, will be upsized to accommodate the flow necessary to allow the abandonment of the Yorba Linda Pump Station which has reached the end of its useful life. After analyzing the system, it is not practical to update the facility due to the high costs of rehabilitation and the limitation to utilize the flow for reclamation. Currently, flow is diverted into the
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Santa Ana River Interceptor instead of the Newhope-Placentia line due to the existing insufficient capacity, thus preventing the use of flow for the Groundwater Replenishment System. The project also includes modifications to existing diversion structures to add flexibility to the collection system and divert additional reclaimable flows. Construction is scheduled for completion in Summer 2021. The project has a current budget of $126 million.
Another large-scale project is the Rehabilitation of the Western Regional Sewers (Project No. 3-64) This project is comprised of three separate contracts that encompass the western region of OC San’s service area. This project covers an area of over 20 miles of sewer pipelines and associated manholes primarily in the public rights of way in the cities of Anaheim, Buena Park, Cypress, La Palma, Seal Beach, and unincorporated Orange County. Staff has worked and will work closely with the involved cities throughout the design of these projects. Community outreach has also taken place during the design phase to identify and mitigate risks before construction occurs. City coordination and community outreach will continue throughout construction. This Project includes the Orange Western Sub-trunk Rehabilitation that covers approximately 13,000 feet of pipe. Also, the Los Alamitos Trunk Sewer Rehabilitation covers approximately 24,000 feet. Two of the contracts are to begin construction during this Budget Book’s fiscal year. The project budget is $82 million.
At the southern edge of the previously mentioned project, the Seal Beach Pump Station (Project No. 3-62 & 3-67) also requires attention to properly support the western region of our service area. Not only are the electrical and safety codes significantly different from when the station was first constructed in the early 1970s, but many of the electrical, mechanical, and control system components are becoming obsolete, so long-term maintenance is no longer an option. One of the sewer force main pipes is too risky to operate and the others useful life is near its end. The two-sewer force main pipes (2.5 miles long) and the pump station will be replaced. Odor control facilities will be added to reduce system corrosion and minimize public impacts. The Force Main construction is underway and will be completed Fall 2022 and the Pump Station is currently under design. The budget for these projects is $131 million.
Plant Maintenance:
The maintenance organization has taken additional steps to strategically align its organization to support OC San’s increasing Capital Improvement
Program (CIP) outlay and improve asset availability and reliability. Major initiatives during FY2020-2021 include increased collaboration with asset management efforts as well as the centralization of preventive maintenance optimization, and maintenance planning, scheduling and coordination to integrate with the CIP.
Throughout the Plants, more than 12,400 preventative maintenance activities were performed. In addition, the following significant maintenance and repair activities are projected to be completed in fiscal year 2020-21:
• Completed major maintenance service of 16 remaining primary sedimentation basins for increased reliability at Plant No. 1.
• Major overhaul of one gas compressor at each Plant.
• Cleaned four digesters at Plant No. 1 and three at Plant No. 2.
• Overhauled Main Sewage Pump motors at the Plant No. 2 Headworks.
• Overhauled 6 secondary clarifiers at Plant No. 2.
• Replaced secondary clarifier inlet gates at Plant No. 2.
• Replaced the truckloading augers, valves and sliding frame systems at Plant No. 2.
• Completing the overhaul of the Steam Turbine at Plant No. 2.
Total costs for the treatment plant maintenance is greater than $23 million.
Looking forward to fiscal year 2021-22, there are more than 12,600 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 detect heat signatures, oil analysis to predict imminent failure of equipment and lubricant degradation, and ultrasonic analysis to measure material flaws. These predictive technologies will not only improve how maintenance is performed but will also provide decision
INFRASTRUCTURE ASSET MANAGEMENT
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INFRASTRUCTURE ASSET MANAGEMENT
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making information to support the OC San Capital Improvement Plan.
In addition to normal maintenance activities, OC San is planning the following major activities for fiscal year 2021-22:
• Replacement of the Plant No. 1 CenGen Battery System.
• Bi-annual and annual major overhaul of thickening and dewatering centrifuges at Plant Nos. 1 and 2.
• On-going efforts of major mechanical repair of Plant No. 2 Digester equipment to retain in service until completion of new digesters.
• Major overhaul of one gas compressor at each Plant.
• Replacement of end-of-life pump motor drive units throughout Plant Nos. 1 and 2.
• Repair of failed low voltage cables at the Plant No. 2 Headworks.
• Cleaning of three digesters at Plant No. 1 and three at Plant No. 2.
The total cost for these proposed plant maintenance activities is greater than $19 million.
Reclamation Plant No. 1
Capital Improvement Projects:
These projects are intended to rehabilitate or reconstruct major components of our treatment process.
One of the largest projects is the Headworks Rehabilitation at Plant No. 1 (Project No. P1-105). The facility is almost 30 years old, so a comprehensive refurbishment is required in order to extend its life. Facilities to be rehabilitated include the metering and diversion structure, the bar screen building, the bin loading building, the main sewage pump station, the grit basins, the primary influent channels, the headworks odor control scrubbers, and electrical power distribution and control systems. The project will also include demolition of the original Headworks No. 1 facilities and the unused Chlorine Building pumps. Construction is scheduled to break ground Summer 2021. The total budgeted cost for this project is $340 million.
Project No. P1-133 Primary Clarifiers Reliability Improvements at Plant No. 1 will increase the operating reliability of the rectangular primary clarifiers along with the replacement of equipment
that is beyond its useful life. The Project is scheduled to begin construction in March 2022 and the total budget is $14 million.
Treatment Plant No. 2
and Joint Facility Capital
Improvement Projects:
Plant No. 2 will be the site of many construction projects over the coming decade. A few of these projects include:
The Primary Treatment Rehabilitation Project (Project No. P2-98) will rehabilitate or replace primary clarifiers, influent pipes, construct new primary effluent pipes, and rehabilitate and upgrade the odor control systems. There are 14 primary clarifiers at Plant No. 2. The ·”A-Side” clarifiers are the first set of four clarifiers constructed in the 1960’s. The A-Side Primary Clarifiers Replacement project not only constructs four new primary clarifiers, it also includes the construction of two primary sludge pump stations, odor treatment complex, electrical distribution center, electrical and fiber systems, and process controls. The current A-Side clarifiers have dome covers and measure 140-feet in diameter and 21-feet high from the ground surface. The four new circular clarifiers will have aluminum flat covers instead of the dome shape, with hinged panels to allow for operator observation and maintenance access Construction of the first phase is underway, and the next phase will be completed by 2026. The total project budget is $195 million.
Digester Gas Facilities Rehabilitation, Project No. J-124, will rehabilitate digester gas facilities at Plants No. 1 and 2 to meet current and future OC San needs such as Air Quality Management District and National Fire Protection Association regulations, and future projected gas production. As a resource recovery agency, the digester gas facilities at both plants capture, clean, and compress digester gas from the treatment process and converts it to power the Central Generation facilities. Design on this project will continue to the next year with anticipated construction to commence in Fall 2022. The Project budget is $173 million.
Support Facilities Projects:
The Administration Building does not have sufficient office space to accommodate employees resulting in personnel being spread throughout the plant in temporary trailers. Furthermore, the Administration Building is approaching 60 years old and require extensive rehabilitation and upgrades to meeting
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INFRASTRUCTURE ASSET MANAGEMENT
current building code and permit requirements. Some of the temporary trailers have been in use since the 1990s. The Headquarters Complex (Project No. P1-128) will construct a new building, which will be located north of Ellis Ave. across from Plant No. 1, will consolidate employees and business functions, and will also preserve valuable land at Plant No. 1 for future process needs, as identified by the 2017 Facilities Master Plan. This project is currently in Bid/Award phase as of June 2021. The total project budget is $167.5 million.
Planning Studies:
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 to develop and support CIP Projects. Below are two examples of current ongoing studies.
The Central Laboratory Building at Plant No. 1 was originally constructed in 1989. It is a two-story
building of approximately 36,000 square feet. There are various issues associated with the building. The current layout is presenting challenges for newer testing and regulatory requirements. Other issues include: the building originally constructed without a formal review process by the local city building departments; and seismic issues that are projected to result in significant cost impacts in modifying the existing building. This Study will help make the determination to rehabilitate the existing structure verses a new building.
Recent efforts have revealed issues towards the ability to overhaul the existing engines at the Central Generation Facilities. This study will provide a market analysis and determine if OC San can successfully perform the bottom-end overhauls and if OC San is on a sustainable path to reliably operate and maintain the Cen Gen Facility engines for the next 20 years. Planning Studies Program Budget: $28.7 million.
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CAPITAL IMPROVEMENT PROGRAM
CIP Budget Request Summary
This is an update to the Fiscal Year 2020-22 two-year
budget. With $10.7 billion of aging assets requiring
constant investment and attention, OC San is
focusing its efforts on the continued refinement of
its asset management-based engineering planning
process. This process has been used to propose
project modifications to efficiently package projects
for execution. OC San staff is working to carefully
identify all the necessary scope of work items
in the planning phase of projects to assist with
successful CIP execution that will also reduce future
construction change orders and other project risks.
Through this, a rolling 20-year Capital Improvement
Program is maintained.
The Project Management Controls System staff work with the project managers and management throughout the year to manage the scope, schedule, budget, risk and other key project indicators for each project. The information is collected monthly and compiled in the Project Management Office Sharepoint website. This information is then readily available during the budgeting process to minimize the time and effort needed to prepare and update the CIP portion of the overall budget.
Annually, as part of the CIP budget validation and
prioritization process, OC San staff review each
ongoing CIP project to ensure that the scope of the
project is appropriate, and that the cost estimates
are up to date. All projects in the CIP program have
been prioritized based on risk exposure. Projects that
would present a higher risk if they were delayed are
given a higher priority. The CIP budget process is
continually improved and further refined as the
OC San improves the CIP project management
controls system.
The validated CIP includes 64 large capital projects with a total 10-year estimated cashflow expenditure of $3.0 billion, not including reimbursables. This represents a net $123 million increase from the 2020-21 CIP estimate. For a listing of capital projects and their budgets, see “Summary of Capital Requirements” in the appendix. As a part of this cashflow, there are also smaller Projects that fall under budgets that are listed as M-FE, , M-STUDIES, M-RESEARCH, M-MC-IT:
• 40 – Facilities Engineering Projects (consist of
smaller design costs)
• 17 – Planning and Research Studies
• 3 – Information Technology Support budget
During this budget validation process, projects
budgets are modified to account for newly discovered issues. In some cases, more accurate construction cost estimates were developed at the preliminary design level when more project details have been defined. For example, a detailed cost estimate for the Los Alamitos Sub-Trunk Extension Project (No. 3-68) revealed the need to increase the budget from $84 million to $117 million. Note this Project is scheduled to start in 2025.
Four projects have been created totaling $294 million.
These projects are:
• 6-20 - Fairview Trunk Rehabilitation
• P1-139 - Standby Generator Feeders for Plant No. 1
Secondary Systems
• P1-140 - Activated Sludge-1 and Secondary Clarifier Rehabilitation
• P2-139 - Emergency Overflow Wingwalls
Rehabilitation at Plant No. 2
Project 6-20 was recently discovered when a sewer video inspection revealed structural defects that required the Project start within the next year. P1-140 was created from two older Projects that were to start in the Future. Current Asset Management Assessments revealed the need to rehabilitate this facility sooner than later.
There are no projects that were not identified in
the FY 2020-22 budget book, that have since been
approved by the OC San Board of Directors.
As part of the budget update process, the following projects are cancelled or closed:
Cancelled: None
Closed:
• P1-101 - Sludge Dewatering and Odor Control at
Plant 1
• P2-110 - Consolidated Demolition and Utility Improvements at Plant 2
• P1-115 - Title 24 Access Compliance and Building
Rehabilitation Project
• 6-17 - District 6 Trunk Sewer Relief
• 2-41-8 - SARI Rock Stabilizers Removal
• 2-65 - Newhope - Placentia Trunk Grade Separation Replacement
Following within the appendix are descriptions and justifications for the capital improvement projects which are new projects proposed for this Fiscal Year 2021-22 budget update. For a description of ongoing projects, see Section 8 of the Fiscal Years 2020-21 and 2021-22 Budget (last year’s book).
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2021-22 BUDGET UPDATE
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DEBT FINANCING PROGRAM
Debt Financing
Due to the potential magnitude of the capital
improvement program, it is necessary that OC San
utilize debt financing to meet its total obligations.
Debt financing allows OC San to meet projected
construction schedules while achieving the lowest
possible user fees, as well as long-term stability in
future sewer service fee rates.
Certificates of Participation
(COP)
The primary debt financing mechanism used
is Certificates of Participation (COP). 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 OC San serves
as the purchaser. COPs can be issued with fixed or
variable interest rates.
As of July 1, 2021, the total outstanding COP
indebtedness will be $909.6 million.
Build America Bonds
Financings
OC San issued the $80.0 million Wastewater Revenue
Obligations, 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 were reduced by
8.7 percent, 7.2 percent, 7.3 percent, 6.8 percent,
6.9 percent, 6.6 percent, 6.2 percent, and 5.9 percent
for the federal fiscal years ended 2013, 2014, 2015,
2016, 2017, 2018, 2019 and 2020, respectively.
Dedicated Funding Source
In 1992 and 2004 the Board of Directors formalized
the dedication of certain funding sources. To ensure
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 charges
3. 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.
OC San Maintains AAA Bond
Rating
OC San’s bond rating is “AAA” from Moody’s and
Fitch Ratings. An “AAA” Rating is the highest for a
government agency. In order to maintain this rating,
OC San adheres to its debt policy and coverage ratios
requirements. This Board-adopted policy serves as
the agency’s guide in the management of existing
debt and in the issuance of future debt.
Debt Ratios
OC San has contractual covenants within the
existing COP agreements which require minimum
coverage ratios of 1.25. The minimum coverage
ratio is the ratio of net annual revenues available
for debt service requirements to total annual debt
service requirements for all senior lien COP debt.
The coverage ratio for senior lien COP debt is being
proposed at 4.13 for fiscal year 2021-22.
Future Financings
No new money debt issuances are being proposed
over the next fiscal year as the $3.0 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.
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2021-22 BUDGET UPDATE
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-202228
OPERATING EXPENSES
Summary of Operating and Maintenance Expenses
(in millions)
Salaries, Wages, and Benefits –
$108.1M
Salaries and Wages – The proposed budget for Full
Time Equivalent (FTE) positions for 2021-22 reflects
no increase of FTEs from the 2020-21 approved
staffing level of 639.0 FTEs. Provision has been made
in these salary projections to comply with the terms
of the most recently adopted Memorandum’s of
Understanding.
Retirement – OC San employees are members of
the Orange County Employees’ Retirement System
(OCERS). Information from OCERS indicates that the
employer’s required contribution rates will be flat in
fiscal year 2021-22 from 10.02 percent to 9.8 percent.
As a result of OC San’s Board of Director’s actions
to reduce the unfunded actuarial accrued liability,
OC San’s contribution rate is among the lowest in the
county.
Group Insurance – These expenses include OC
San’s share (approximately $15,414 per employee)
of employee medical plan benefits for the indemnity
plan, prepaid HMO plans, dental insurance plan, and
life and disability insurance premiums. The proposed
budget includes a seven percent increase for medical plans starting January 2022.
Contractual Services – $19.2M
The treatment plants currently produce about 550 wet tons per day of biosolids which are recycled in California and Arizona. About half of the biosolids are currently allocated to create compost and the other half is used on farms to grow feed and seed crops. The 2021-22 biosolids budget is $13.1 million, approximately 68 percent of the Contractual Services budget. Other residuals solids and waste includes disposal costs for grit and screening waste, digester cleaning waste, and hazardous materials.
This category also includes appropriations for grounds keeping, janitorial, security, toxic waste removal, outside laboratory, trash pickup, plant site sweeping, closed circuit television pipeline inspections, line cleaning, and temporary services.
Repairs and Maintenance –
$29.7M
This item, which is for parts and services for repair
2020-21 2020-21 2021-22 2021-22
Category Adopted Projected Adopted Proposed
Salaries and Benefits $102.1 $102.4 $107.3 $108.1
Contractual Services 19.2 18.6 19.4 19.2
Repairs and Maintenance 28.4 28.1 24.2 29.7
Operating Materials & Supplies 21.5 21.4 21.3 22.0
Utilities 8.4 9.4 8.4 9.3
Professional Services 5.7 4.2 5.8 6.9
Other Materials, Supplies, Services 2.8 2.4 2.9 3.4
Self-Insurance Requirements 2.2 2.2 2.2 2.2
Administrative Expenses 2.0 1.9 1.9 2.1
Training and Meetings 1.1 0.5 1.0 0.8
Research and Monitoring 1.3 1.1 1.4 1.5
Printing and Publications 0.4 0.3 0.4 0.4
Cost Allocation (20.8) (20.7) (21.7) (21.7)
Total Operating Expenses $174.3 $171.7 $174.5 $183.9
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-2022 29
2021-22 BUDGET UPDATE
of plant and collection facilities and annual service contracts, is expected to increase $1.6 million, or 5.7 percent above the 2020-21 projected costs of $28.1 million.
Planned repairs include: digester cleaning ($3.4 million); Sunflower trunk repairs ($3.3 million); centrifuge overhaul ($2.0 million); secondary clarifier repairs ($1.6 million); and digester maintenance projects ($1.0 million).
Operating Materials and
Supplies – $22.0M
Chemical Coagulants – Anionic polymer is added to the influent wastewater along with ferric chloride to improve solids removal efficiencies in the primary clarifiers. Ferric chloride is also added to the digesters for solids odor control. Cationic polymer is added to digested sludge prior to dewatering to aid in coagulation, improving the sludge and water separation process. Cationic polymer is also added to the waste activated sludge dissolved air flotation thickeners (DAFTs) to improve solids coagulation.
The costs for this group of chemicals are expected to be $10.7 million, a decrease of $500,000 from the 2021-22 projected costs due to price increases.
Odor Control Chemicals – OC San uses hydrogen peroxide, sodium hydroxide (caustic soda), sodium hypochlorite (bleach) and muriatic acid as the primary odor control chemicals in the treatment plants. Ferrous chloride, magnesium hydroxide, calcium nitrate, and caustic soda are the primary odor control chemicals used in the collection system.
The 2021-22 budget for these chemicals is $7.6 million, approximately $1.2 million more than the 2020-21 projected costs.
Utilities – $9.3M
During fiscal year 2021-22, the overall cost for utilities, a significant component of the operating budget, is anticipated to decrease by $100,000 as follows:
Natural Gas – Natural gas is purchased from two providers for different purposes. Purchases from a gas marketer are used to supplement the digester gas that is used to run the CenGen facilities. The fiscal year 2021-22 natural gas budget is $1.0 million, 11.8 percent lower than the projected 2020-21 costs. CenGen engine natural gas usage is expected to increase during the summer months in order to reduce peak electricity demand.
Electricity – Electricity is the largest utility cost incurred by OC San. Purchased electricity is used in running the plant processes as a supplement to power produced in the central generation facilities.
The 2021-22 proposed budget of $6.7 million is 1.9 percent higher than the 2020-21 projected costs due to price increases and the use of centrifuges.
Staff have the opportunity to optimize power usage by either purchasing supplemental natural gas or electricity, whichever costs less.
Water – Water is used throughout the treatment plants. Potable (drinking) water is supplied by the Cities of Fountain Valley and Huntington Beach; and plant water is disinfected secondary effluent.
• Potable Water – The potable water budget includes water supplied by the City of Fountain Valley for Plant No. 1 and the City of Huntington Beach for Plant No. 2. Approximately 5 percent of the potable water at Plant No. 1 is used for domestic uses and less than 1 percent is used for irrigation. The majority of the irrigation at both plants uses reclaimed water. Less than 1 percent of the potable water used at Plant No. 2 is for domestic uses due to the relatively small number of employees at Plant No. 2. The proposed total potable water cost for 2021-22 is $1.0 million, approximating the projected 2020-21 costs.
Professional Services – $6.9M
Professional Services includes General Counsel, special labor counsel, audit and miscellaneous accounting services, legislative advocacy, engineering, and other technical consulting services. The 2021-22 proposed budget is 64.3 percent higher than the 2020-21 projected cost mainly due to project delays from COVID-19 pandemic, increases of engineering services, safety assessments, lab certification and audit, PFAS monitoring and studies, and consulting services.
Other Material, Supplies,
Services – $3.4M
This category of costs includes an appropriation for 2021-22 of $2.2 million for in-lieu premium contribution charged to operations is recommended for the Property and General Liability Program. This will serve to maintain the reserves balance for the property and general liability self-insurance programs.
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-202230
OPERATING EXPENSES
OC San’s outside excess general liability insurance coverage is $40 million per occurrence with self-insurance retention of $750,000.
OC San’s property insurance coverage is $800 million for perils of fire and $100 million for perils of flood, subject to a self-insurance retention of $250,000. OC San is partially self-insured for earthquake but does carry $25 million in coverage on seven key structures with a $5 million deductible. OC San also has a $50 million sublimit for builder’s risk under the property insurance program to ensure upcoming construction projects are adequately covered.
Expenses not chargeable to other categories, such as freight and miscellaneous items, and annual regulatory fees assessed by the South Coast Air Quality Management District, are recorded with this category.
Administrative Expenses –
$2.1M
These accounts include supplies, postage, technical journals and publications, forms, small office equipment, and small computer items that cost less than $5,000 per item and exclude items that are capitalized.
Training and Meetings – $0.8M
Board member and staff travel has been significantly reduced in recent years. This category also includes meetings of professional societies; ongoing technical training and materials for staff; training for computerized plant monitoring and control systems, MAXIMO (a computerized maintenance management system), Enterprise Resource Planning (ERP), and other “high tech” equipment, processes and systems; and training to allow for an adaptive and flexible work force. While OC San continues to place an emphasis on effective safety training, as well as technical, leadership and management training, the training budget has been reduced from previous highs of 2.0 percent to approximately 1.0 percent of budgeted regular salaries due to savings achieved in part through the use of online courses.
Research and Monitoring –
$1.5M
The budget for research and monitoring expenditures
is maintained at approximately $1.5 million each
year. It consists of contract services to carry out the
extensive ocean monitoring program required by the
EPA under provisions of OC San’s NPDES permit;
air quality monitoring costs; OC San’s contribution
to the Southern California Coastal Water Research
Project (SCCWRP) being conducted under a joint
powers agreement with other Southern California
municipal dischargers; and also provide for increased
operational and ocean research and evaluation to
develop optimum operating parameters in treatment
plants.
Printing and Publication –
$0.4M
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.
The continuing effort of the Public Affairs Office to
improve public education programs about OC San’s
activities is also reflected in the budget for this line
item. This group of accounts also includes costs for
photo processing, advertisements, and notices.
Cost Allocation – ($21.7M)
This represents direct labor and benefit charge outs
and materials, supplies and services cost allocation
to the capital projects where the related work was
performed.
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2021-22 BUDGET UPDATE
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-202232
DEPARTMENTS SUMMARY
Expenses by Department (in millions)
2021-22 2021-22
2020-21 Originally Percent Updated Percent
Department Budget Proposed Change Proposed Change
Administration Units:
General Manager’s Office $4.3 $4.4 2.3% $4.1 (4.9%)
Human Resources 6.6 7.0 6.1% 7.2 2.5%
Administrative Services 27.7 28.5 2.9% 30.1 5.5%
Sub-Total $38.6 $39.9 3.4% $41.4 3.8%
Operating Units:
Environmental Services 19.3 20.3 5.2% 21.2 4.6%
Engineering 5.6 5.6 0.0% 5.4 (3.2%)
Operations & Maintenance 110.8 108.7 (1.9%) 115.9 6.6%
Sub-Total $135.7 $134.6 (0.8%) $142.5 5.9%
Total $174.3 $174.5 0.1% $183.9 5.4%
Staffing by Department (FTEs)
2021-22 2021-22
2020-21 Originally Percent Updated Percent
Department Budget Proposed Change Proposed Change
Administration Units
General Manager’s Office 18.00 18.00 0.0% 15.00 (16.7%)
Human Resources 26.00 26.00 0.0% 26.00 0.0%
Administrative Services 101.00 101.00 0.0% 102.00 1.0%
Sub-Total 145.00 145.00 0.0% 143.00 (1.4%)
Operating Units
Environmental Services 93.00 93.00 0.0% 93.00 0.0%
Engineering 117.00 117.00 0.0% 116.00 (0.9%)
Operations & Maintenance 284.00 284.00 0.0% 287.00 1.1%
Sub-Total 494.00 494.00 0.0% 496.00 0.4%
Total FTEs 639.00 639.00 0.0% 639.00 0.0%
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-2022 33
2021-22 BUDGET UPDATE
ADMINISTRATION UNITS
General Manager’s Office
Budget $4.1M – Staffing 15 FTEs
The General Manager’s Office provides general oversight of all OC San operations and incorporates functions in the areas of Public Affairs and Board Services.
Human Resources
Budget $7.2 – Staffing 26 FTEs
The Human Resources Department works with management and employees to ensure an effective and productive employment relationship. The department also provides risk management services to the organization to create a safe, healthy and secure environment for staff, contractors, and visitors.
Administrative Services
Budget $30.1M – Staffing 102 FTEs
The Administrative Services Department maintains financial oversight and administration of all OC San funds and accounts and is responsible for contract administration and procurement, and oversees all OC San computer, networking and customer support issues.
OPERATING UNITS
Environmental Services
Budget $21.2M – Staffing 93 FTEs
The Environmental Services Department manages all environmental monitoring, regulatory, compliance and reporting elements to ensure that OC San meets the requirements of federal, state and local regulations for treated sewage discharge into the ocean, water recycling, air emissions, industrial waste, sewer system operations, land use controls and biosolids and stormwater management.
Engineering
Budget $5.4M – Staffing 116 FTEs
The Engineering Department is responsible for the planning and execution of the OC San’s capital improvement program and asset management program.
Operations and Maintenance
Budget $115.9M – Staffing 287 FTEs
The Operations and Maintenance Department is responsible for the operation and maintenance of the OC San’s two wastewater treatment plants as well as the sanitary sewer system pipeline and pumping facilities. The department also provides fleet management services for OC San. The budget reflects the addition of eight new positions to support an increasing maintenance workload.
FTEs = Full-Time Equivalent Positions
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-202234
GENERAL MANAGER’S OFFICE
Administrative Services
EnvironmentalServices
Engineering
Operations and Maintenance
Board ofDirectors
General CounselOffice
General Manager
HumanResources
General Management Administration
Board Services
Public Affairs
General
Manager’s
Office
Service Description
General Management Administration is responsible for working with the Board of Directors to establish
standards, policies and procedures, and the overall goals and Strategic Plan of OC San. The General Manager
reports directly to the Board of Directors and provides general oversight to all agency operations, interagency
relations, legislative activities, and communications. The General Manager directly oversees Human Resources,
Board Services, and Public Affairs.
Board Services promotes public trust and ensures transparency by preparing and publishing agendas and
notices in accordance with legal requirements; accurately recording and preserving the legislative actions;
safeguarding vital, historic and permanent records of OC San; and providing exceptional customer service
and support to the Board of Directors, OC San staff, and the general public in a courteous, timely and efficient
manner.
Public Affairs communicates information about OC San in a timely, accurate, and accessible way to employees,
the Board of Directors, the general public, the wastewater industry, and the news media.
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-2022 35
2021-22 BUDGET UPDATE
Budget Overview
The fiscal year 2021-22 budget for the General Manager’s Office reflects
a decrease of 4.9 percent over the originally adopted budget. The
decrease is primarily due to decreases in costs for personnel, training,
and document archival for engineering library project being allocated
out to Information Technology division.
Performance Objectives / Measures
• Ensure that the Board approved Strategic Plan is implemented.
• Provide leadership development opportunities reaching at least
70 percent of staff.
• Maintain the Special District Leadership Foundation (SLDF) District
Transparency Certificate of Excellence.
• Respond to 100 percent of public records requests within seven
business days.
• Provide information to Board of Directors through the General
Manager’s monthly report and the new Board Member orientation.
• Provide services and implement programs that meet communication
needs of OC San’s external audience by reaching a minimum of 3,000
people per year.
Authorized FTE Positions
Managers ...................................2.00
Supervisors /Professionals .....7.00
Administrative /Clerical ............5.00
Technical Services ...................1.00
Total .........................................15.00
Staffing Trends
2021-222020-212019-202018-192017-18
15.00 14.00 15.00
18.00
15.00
Operating Expense
2020-21 2021-22 2021-22
Category Budget Adopted Proposed
Personnel $2,670,000 $2,790,200 $2,688,522
Supplies 160,400 126,000 123,000
Professional & Contractual Services 1,017,400 1,017,400 926,400
Research & Monitoring - - -
Repairs & Maintenance - - -
Utilities - - -
Other 559,170 535,930 518,880
Cost Allocation (117,360) (117,360) (117,360)
Total $4,289,610 $4,352,170 $4,139,442
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-202236
HUMAN RESOURCES DEPARTMENT
Service Description
Human Resources is a full-service department responsible for all aspects of Human Resources and Risk
Management administration that ensures a productive and safe workplace and maintain programs that support
a positive employment relationship. The Human Resources Department is committed to a workplace grounded
in fair and equitable employment decisions and practices. This department serves as the in-house advisor to the
General Manager, executive staff, OC San departments, and all staff by delivering high quality services with an
emphasis on customer satisfaction as a key objective.
Human Resources Administration oversees all human resources functions, including Benefits Administration,
Classification and Compensation, Employee and Labor Relations, Workers Compensation, Employee
Development/Performance Management, and Recruitment and Selection. Benefits Administration administers
and maintains employee benefits and the reasonable accommodation program. Classification and Compensation
is a vital function that ensures a competitive and fair compensation system and an equitable classification
structure. Employee and Labor Relations works to enhance the employment relationship by providing
professional assistance and guidance on labor agreements, policies, laws and work-related issues. Workers
Compensation provides medical care and benefits to employees who become ill or injured in the course of
employment. Employee Development/Performance Management manages and coordinates District-wide legally
mandated training programs; and oversees the employee performance program. Through the Recruitment and
Selection program, OC San seeks to attract, hire, and retain the best qualified employees in a manner that is fair,
equitable and merit-based.
Risk Management/Safety/Security protects the finances and human resources of OC San. It identifies and
addresses potential risk to the organization and provides solutions for mitigating or reducing the risk. The major
areas of responsibility include insurances, occupational safety and health, security, and emergency preparedness.
Safety is a priority for OC San, and this area includes comprehensive safety training programs, safe working
practices, and quarterly facility inspections. Security and emergency preparedness programs include the oversight
of OC San’s contracted security services, planning emergency drills, and ensuring OC San has the necessary
programs, supplies and training in preparation for an emergency. These programs ensure OC San provides a
secure, safe and healthy work environment for OC San staff, contractors, and visitors.
Administrative Services
EnvironmentalServices
Engineering
Operations and Maintenance
Board ofDirectors
General CounselOffice
General Manager
HumanResources
General
Manager’s
Office
Human
Resources
Administration
Risk Management / Safety Security
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-2022 37
2021-22 BUDGET UPDATE
Budget Overview
The fiscal year 2021-22 budget for the Human Resources Department
reflects a 2.5 percent increase from the originally adopted budget.
The increase is primarily due to increases in personnel costs, medical
insurance, employee benefits, repairs materials, and industrial hygiene
services. The overall increase is partially offset by a decrease in
training costs.
Performance Objectives / Measures
• Work with upper management to resolve issues at the lowest level through conflict resolution training and techniques.
• Reduction in injury rates through monitoring and partnering with departments to implement effective safety and health systems and processes.
• Completion of quarterly safety training, near miss and building inspection status reports.
• Implement Leading Safety Indicators to reduce injuries to employees.
• Manage operating expenditures to within 96 to 100 percent of the approved budget.
Authorized FTE Positions
Managers ...................................2.00
Supervisors /Professionals ...20.00
Administrative /Clerical ............4.00
Total .........................................26.00
Staffing Trends
2021-222020-212019-202018-192017-18
27.00 27.00 27.00 26.00 26.00
Operating Expense
2020-21 2021-22 2021-22
Category Budget Adopted Proposed
Personnel $4,003,400 $4,244,200 $4,371,762
Supplies 234,200 234,200 234,200
Professional & Contractual Services 3,137,456 3,325,625 3,373,625
Research & Monitoring - - -
Repairs & Maintenance 4,550 4,550 14,050
Utilities - - -
Other 717,562 654,820 644,370
Cost Allocation (1,486,070) (1,486,070) (1,486,070)
Total $6,611,098 $6,977,325 $7,151,937
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EnvironmentalServices
Engineering
Operations and Maintenance
Board ofDirectors
General CounselOffice
General Manager
HumanResources
General
Manager’s
Office
ADMINISTRATIVE SERVICES DEPARTMENT
Service Description
The Administrative Services Department oversees all of OC San’s finance, contracts/purchasing, and information
technology activities, including both day-to-day operations and strategic planning. The department serves as
a liaison to Executive Management, the Board of Directors, and other departments of OC San. The department
includes five divisions:
Administrative Services provides leadership and oversight to all Administrative Services divisions.
Consolidated Services accounts for various OC San expenses that are not attributed to one division.
Financial Management oversees and administers all OC San’s funds and accounts. Programs include treasury
and debt management, accounts receivable and payable, user fees, payroll, fixed assets accounting, project
controls, and coordinating the capital and operating budget process.
Contracts, Purchasing, and Materials Management is responsible for contract administration and procurement
for all departments. Additionally, this division manages OC San’s warehouses, receives and maintains inventory,
and distributes supplies, materials, and equipment.
Information Technology is responsible for customer support related information technology assets and
services, networking and infrastructure, telecommunications service operation and maintenance, network and
programming, solutions and application support, and cyber security.
Administrative
Services
Financial Management
Contracts,
Purchasing and
Materials
Management
Information Technology
Administrative Services
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-2022 39
2021-22 BUDGET UPDATE
Budget Overview
The fiscal year 2021-22 budget for the Administrative Services Department
reflects a 5.5 percent increase from the originally adopted budget. The
increase is primarily due to increases in costs for medical insurance,
janitorial services, property management fee, rental repair services &
water, freight, temporary services, software upgrade, projects deferred
from prior year, service agreements cost adjustments, new software/
hardware, maintenance renewal for GIS, and project transferred from
capital to operating. The overall increase is partially offset by a decrease in
personnel and retirement costs.
Performance Objectives / Measures
• Manage operating expenditures to within 96 to 100 percent of the approved budget.
• Validate project schedules and costs for the Capital Improvement Program (CIP) in conjunction with the budget process.
• Comply with the California State Government Code 100 percent of the time with all treasury investments.,
• Submit the annual sewer service fee property parcel database to the County in time for placement on annual secured property tax bills.
• Process all approved sewer service fee refund requests within 90 days, 90 percent of the time.
• All debt service payments will be paid electronically, on the actual due dates, and error free 100 percent of the time.
• Continue the cycle count program and maintain a 97 percent accuracy rate or better.
• Replace obsolete desktop, mobile, and server computers. Rotate desktop computers every 5 years, mobile computers every 3 years, and servers every 5-6 years.
• Cyber Security Awareness Protection – report on the overall effectiveness of phishing campaign.
Authorized FTE Positions
Managers ...................................4.00
Supervisors /Professionals ...63.00
Technical Services .................12.00
Administrative /Clerical ..........23.00
Total .......................................102.00
Staffing Trends
2021-222020-212019-202018-192017-18
99.00 100.00 101.00 101.00 102.00
Operating Expense
2020-21 2021-22 2021-22
Category Budget Adopted Proposed
Personnel $16,818,400 $17,856,800 $17,794,580
Supplies 2,476,650 2,476,650 2,523,450
Professional & Contractual Services 2,557,738 2,216,472 3,205,715
Research & Monitoring - - -
Repairs & Maintenance 2,922,078 3,048,921 3,580,271
Utilities 1,284,732 1,286,915 1,289,103
Other 2,637,545 2,634,923 2,702,516
Cost Allocation (984,770) (984,770) (986,770)
Total $27,712,373 $28,535,911 $30,108,865
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Environmental Services Administration and Regulatory Compliance
Resource
Protection
Laboratory, Monitoring and Compliance
40
EnvironmentalServices
Engineering
Operations and Maintenance
Board ofDirectors
General CounselOffice
General Manager
HumanResources
General
Manager’s
Office
ENVIRONMENTAL SERVICES DEPARTMENT
Service Description
The Environmental Services Department manages OC San’s environmental monitoring, regulatory compliance
and reporting elements to ensure that OC San meets the requirements of federal, state, and local regulations for
treated sewage discharge into the ocean, water recycling, air emissions, industrial waste, sewer system operations,
dry weather urban runoff diversion, biosolids, and on-site stormwater management. The Environmental Services
Department consists of three divisions:
Environmental Services Administration and Regulatory Compliance provides leadership, support, and
management oversight for the Department to accomplish OC San’s Strategic Plan and departmental annual
goals. The Regulatory Compliance group is tasked with ensuring adherence to environmental regulations and
permit conditions for ocean discharge, air emissions, potable reuse, and biosolids management. The team actively
advocate for responsible and pragmatic environmental regulations relevant to wastewater treatment and resource
recovery.
Resource Protection provides local enforcement of federal pretreatment regulations and ensures continuous
improvement in OC San’s enhanced source control program to sustain water reclamation and beneficial biosolids
reuse. The division conducts its industrial and non-industrial source control activities in a cost effective and
legally defensible manner to protects OC San’s assets, employees, public health, and the environment.
Environmental Laboratory and Ocean Monitoring provides sampling, ocean and treatment process monitoring,
laboratory analysis, and oceanographic research services to OC San’s operations and to protect receiving water
quality. The division is responsible for collaborating with OC San’s coastal monitoring partners and advancing
analytical innovation in key regulatory areas such as compounds of emerging concern and toxic air contaminants.
Administrative Services
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-2022 41
2021-22 BUDGET UPDATE
Budget Overview
The fiscal year 2021-22 budget for the Environmental Services Department
reflects an increase of 4.6 percent from the originally adopted budget.
The increase is primarily attributable to increases in medical insurance,
memberships, temporary & outside lab services, air quality audit, new
environment compliance requirement support, emission study, aging
vessel repairs, PFAS sewer shed study, NPDES renewal, certification fees
lab audit, and accreditation & assessment fees.
Performance Objectives / Measures
• Manage operating expenditures to within 96 to 100 percent of the approved budget.
• Ensure that reporting divisions achieve no less than 90 percent of individual performance objectives.
• Ensure that all environmental compliance reporting requirements are met on or before required submission dates.
• Conduct audits of all major environmental permits at least once every three years.
• Complete 100 percent of Safety Scorecard requirements each quarter.
Authorized FTE Positions
Managers ...................................3.00
Supervisors /Professionals ...65.00
Administrative /Clerical ............8.00
Technical .................................17.00
Total .........................................93.00
Staffing Trends
2021-222020-212019-202018-192017-18
91.00 91.00 92.00 93.00 93.00
Operating Expense
2020-21 2021-22 2021-22
Category Budget Adopted Proposed
Personnel $14,577,300 $15,274,800 $15,372,316
Supplies 1,961,250 1,874,100 2,246,650
Professional & Contractual Services 946,635 1,153,683 1,437,683
Research & Monitoring 1,304,700 1,428,700 1,547,700
Repairs & Maintenance 370,747 380,910 380,910
Utilities - - -
Other 175,065 170,505 222,842
Cost Allocation (20,790) (22,800) (22,800)
Total $19,314,907 $20,259,898 $21,185,301
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-202242
EnvironmentalServices
Operations and Maintenance
Board ofDirectors
General CounselOffice
General Manager
HumanResources
General
Manager’s
Office
ENGINEERING DEPARTMENT
Service Description
The Engineering Department is responsible for the planning and execution of OC San’s Capital Improvement
Program, the Asset Management Program, and interagency coordination. The Engineering Department is
comprised of five divisions:
Engineering Administration provides management to all Engineering Divisions.
Planning is responsible for developing and maintaining a comprehensive Capital Improvement Program for
OC San considering projected capacity requirements, condition of assets, anticipated regulatory and level of
service changes, and technological opportunities. Planning is responsible for OC San’s Asset Management
program to ensure that required levels of service are met by performing planned repair, rehabilitation and
replacement of facilities at optimal lifecycle costs. In addition, this division is responsible for California
Environmental Quality Act preparation and review, and performs services for annexations, connection
permitting, and interagency agreements.
Project Management is responsible for the delivery of capital projects from the preliminary design stage through
project closeout.
Design provides technical leadership, engineering design and quality assurance, design standards development
and management, control systems design and programming, and commissioning oversight.
Construction Management provides construction engineering, quality control inspection, commissioning
execution, and other technical support for construction projects.
Administrative Services
Engineering
Administration
Planning
Project
Management
Design
Construction
Management
Engineering
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-2022 43
2021-22 BUDGET UPDATE
Budget Overview
The fiscal year 2021-22 budget for the Engineering Department reflects a
3.2 percent decrease from the originally adopted budget primarily due to
decreases in personnel and retirement costs, training, operating materials
& supplies, legal, and engineering costs. The overall decrease was partially
offset by increases of regulatory operating fees and minor furniture
and fixtures.
Performance Objectives / Measures
• Expend 90 to 105 percent of project annual Capital Improvement
Program cash flows.
• Manage operating expenditures to within 90 to 100 percent of the
approved budget.
• Ensure that reporting divisions achieve 90 percent of individual
performance objectives.
• Prepare and maintain a 20-year District-wide capital plan coordinating
condition assessment, regulatory requirements, changing levels of
service, and projected capacity requirements.
Authorized FTE Positions
Managers ...................................5.00
Supervisors /Professionals ...83.00
Administrative /Clerical ..........28.00
Total .......................................116.00
Staffing Trends
2021-222020-212019-202018-192017-18
116.00 116.00
121.00 117.00 116.00
Operating Expense
2020-21 2021-22 2021-22
Category Budget Adopted Proposed
Personnel $21,638,300 $22,640,100 $22,566,438
Supplies 39,765 40,415 42,415
Professional & Contractual Services 1,590,615 1,595,615 1,491,615
Research & Monitoring - - -
Repairs & Maintenance 3,900 3,900 3,900
Utilities - - -
Other 377,515 301,280 297,665
Cost Allocation (18,076,310) (18,954,190) (18,954,190)
Total $5,573,785 $5,627,120 $5,447,843
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-202244
EnvironmentalServices
Board ofDirectors
General CounselOffice
General Manager
HumanResources
General
Manager’s
Office
OPERATIONS AND MAINTENANCE DEPARTMENT
Service Description
The Operations and Maintenance (O&M) Department is responsible for treating wastewater, reusing or
disposing of the treated wastewater and all residuals, providing maintenance support to all treatment facilities,
operating and maintaining the sanitary sewer system pipeline and pumping facilities, and for providing fleet
management services. The Department consists of seven divisions:
Operations and Maintenance Administration provides leadership and oversight to all O&M divisions.
Collection Facilities Operations and Maintenance operates and maintains the regional facilities which include
gravity sewers and pumping facilities.
Fleet Services provides fleet and heavy equipment services and motor pool management to all OC San staff.
Plant No. 1 and Plant No. 2 Operations are responsible for the daily management of the wastewater treatment
processes, sludge and biosolids treatment and loading processes and odor and air quality control processes.
Activities also include ensuring compliance with all regulatory permits, support of the Capital Improvement
Program, and coordination of construction and maintenance work. Plant No. 1 Operations also ensures the
delivery of specification water to the Groundwater Replenishment System.
Plant No. 1 and Plant No. 2 Maintenance are responsible for civil, electrical, facilities, instrumentation and
mechanical maintenance of the two treatment plants and pump stations facilities. Plant No. 1 Maintenance
also includes planning for all maintenance activities as well as reliability engineering for both Plants and the
Collections System.
Administrative Services
Engineering
Operations and
Maintenance
Administration
Collection Facilities Operations and Maintenance
Fleet Services
Plant No. 1 Operations
Plant No. 2
Operations
Plant No. 1 Maintenance
Plant No. 2
Maintenance
Operations and Maintenance
BUDGET UPDATE — FISCAL YEAR 2021-2022 BUDGET UPDATE — FISCAL YEAR 2021-2022 45
2021-22 BUDGET UPDATE
Budget Overview
The fiscal year 2021-22 budget for the Operations and Maintenance
Department reflects a 6.6 percent increase from the originally adopted
budget. The increase is primarily due to increases in personnel costs,
group insurances, minor furniture & fixtures, various chemicals,
engineering services, consultant support, tools, solids removal, repairs &
maintenance costs, and utilities. The overall increase was partially offset
by a decrease in retirement costs.
Performance Objectives / Measures
• Achieve 100 percent compliance with water, solids, air, and energy
permits and regulatory requirements.
• Achieve 100 percent compliance level of 90 to 100 percent of the Levels
of Service targets.
• Manage operating expenditures to within 96 to 100 percent of the
approved budget.
Authorized FTE Positions
Managers ...................................5.00
Supervisors /Professionals ...72.00
Administrative /Clerical ............6.00
Technical ...................................1.00
Operations & Maintenance ..203.00
Total .......................................287.00
Staffing Trends
2021-222020-212019-202018-192017-18
287.00
288.00
284.00 284.00
287.00
Operating Expense
2020-21 2021-22 2021-22
Category Budget Adopted Proposed
Personnel $42,374,400 $44,448,200 $45,308,222
Supplies 20,304,496 20,354,881 20,996,570
Professional & Contractual Services 15,731,988 15,936,619 15,616,600
Research & Monitoring - - -
Repairs & Maintenance 25,071,370 20,740,526 25,738,215
Utilities 7,080,222 7,091,923 8,040,623
Other 391,677 290,876 363,146
Cost Allocation (140,410) (145,890) (145,890)
Total $110,813,743 $108,717,135 $115,917,486
BUDGET UPDATE — FISCAL YEAR 2021-202246
BUDGET UPDATE — FISCAL YEAR 2021-2022
APPENDIX
A - 1
Cash Flow Projection
A - 2
Orange County Sanitation District
Consolidated Cash Flow Projections
Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary
Ref Description 21-22 22-23 23-24 24-25 25-26 26-27
Revenues:
1 General User Fees 301,839,390 306,495,847 313,036,193 319,612,771 326,225,725 332,875,570
2 Permitted User Fees 12,621,177 12,768,845 12,990,000 13,211,000 13,432,000 13,652,000
IRWD O&M Assessment 4,648,984 4,543,049 4,577,880 4,743,530 4,885,830 5,032,410
IRWD Capital Assessment 7,905,000 10,639,000 10,034,000 9,967,000 11,816,000 12,250,000
IRWD Solids Assessment 6,100,000 5,500,000 1,375,000 - - -
3 IRWD Assessments 18,653,984 20,682,049 15,987,000 14,711,000 16,702,000 17,282,000
4 SAWPA Assessments 2,653,000 2,759,000 2,842,000 2,927,000 3,015,000 3,105,000
5 Property Taxes 103,214,240 106,310,667 109,499,987 112,784,987 116,168,537 119,653,593
6 New COP Issues 163,775,355 - - - - -
7 Interest Revenues 14,516,000 14,132,000 13,391,000 12,827,000 11,960,000 10,703,000
8 Capital Facilities Capacity Charges 16,739,034 17,308,000 18,673,000 19,441,000 19,517,000 19,597,000
9 Other Revenues 23,291,030 20,060,825 16,901,000 17,250,000 17,609,000 17,975,000
10 Revenues 657,303,210 500,517,233 503,320,180 512,764,758 524,629,262 534,843,163
Requirements:
11 Oper & Mtce Exp (3.0% yr)183,950,874 180,550,649 185,967,000 191,546,000 197,292,000 203,211,000
12 Capital Improvement Program (CIP)234,588,954 328,766,646 309,047,000 302,025,000 338,629,000 361,394,000
13 Less: CIP Savings & Deferrals (15,028,451) (26,513,683) (25,367,501) (26,439,366) (27,555,283) (46,289,914)
14 Allocation for Future Rehabilitation 5,000,000 - 1,360,405 7,565,109 24,612,756 32,900,727
15 COP Debt Service 70,731,000 70,124,000 70,126,000 70,116,000 70,126,000 68,226,000
16 Reduction of Long-Term Liabilites 163,775,355 - - - - -
17 Other Requirements 6,951,253 6,440,000 2,940,000 2,940,000 2,940,000 2,940,000
18 Requirements 649,968,985 559,367,612 544,072,904 547,752,743 606,044,473 622,381,813
19 Revenues-Requirements 7,334,225 (58,850,379) (40,752,724) (34,987,985) (81,415,211) (87,538,650)
Accumulated Funds:
20 Beginning of Year 971,304,483 978,638,708 919,788,329 879,035,605 844,047,620 762,632,409
21 End of Year 978,638,708 919,788,329 879,035,605 844,047,620 762,632,409 675,093,759
22 Consolidated Reserve Policy 548,665,000 541,568,000 540,023,000 542,442,000 544,698,000 546,983,000
23 Over (Under) Reserve Policy*429,973,708 378,220,329 339,012,605 301,605,620 217,934,409 128,110,759
Excess (Shorfall) in Reserves 429,973,708 378,220,329 339,012,605 301,605,620 217,934,409 128,110,759
Sewer Service User Fees:
24 Avg SFR Annual User Fee $343 $347 $353 $359 $365 $371
25 Percentage Change 1.18%1.17%1.73%1.70%1.67%1.64%
26a SFR noticed 4-2003
26b PV of SFR Annual Fee @ 5%$322.86 $311.11 $299.75 $290.41 $281.29 $272.37
Added EDUs 2,763 2,771 2,780 2,788 2,796 2,805
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
Conn. Fee- Indust.$2,072 $2,078 $2,084 $2,090 $2,096 $2,102
28 Outstanding COPs $909,620,000 $846,180,000 $814,495,000 $781,240,000 $746,365,000 $709,770,000
Average Daily Flow, mgd 188 188 188 188 188 188
Reserve Policy
29 50% Next Year Operating Expense 91,975,000 90,275,000 92,984,000 95,773,000 98,646,000 101,606,000
30 10% Next Year Operating Expense 18,395,000 18,055,000 18,597,000 19,155,000 19,729,000 20,321,000
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 148,592,000 148,592,000 148,592,000 148,592,000 148,592,000 148,592,000
33 Debt Svc @ 10% Outstanding COP 90,962,000 84,618,000 81,450,000 78,124,000 74,637,000 70,977,000
34 Self Funded Insurance @ $100M 100,000,000 101,170,000 102,920,000 104,670,000 106,418,000 108,163,000
35 Repl & Refurb 75,000,000 75,878,000 77,191,000 78,503,000 79,814,000 81,123,000
36 *Reserve Reduction (in accordance with Board action allowing a $40M reduction to total reserves)- - -
37 Total 548,665,000 541,568,000 540,023,000 542,442,000 544,698,000 546,983,000
COP Ratios
38 Sr Lien Coverge, Min 1.25 4.14 4.32 4.26 4.30 4.39 4.57
2021-22 Budget Update
A - 3
Orange County Sanitation District
Consolidated Cash Flow Projections
Preliminary Preliminary Preliminary Preliminary 10-Year
Ref Description 27-28 28-29 29-30 30-31 Total
Revenues:
1 General User Fees 342,562,000 349,285,000 356,046,000 362,844,000 3,310,822,496
2 Permitted User Fees 13,873,000 14,094,000 14,315,000 14,535,000 135,492,022
IRWD O&M Assessment 5,183,370 5,338,870 5,499,050 5,664,020 50,116,993
IRWD Capital Assessment 11,339,000 11,385,000 9,878,000 9,396,000 104,609,000
IRWD Solids Assessment - - - - 12,975,000
3 IRWD Assessments 16,522,000 16,724,000 15,377,000 15,060,000 167,701,033
4 SAWPA Assessments 3,198,000 3,294,000 3,392,000 3,493,000 30,678,000
5 Property Taxes 123,243,000 126,940,000 130,748,000 134,670,000 1,183,233,011
6 New COP Issues - - - - 163,775,355
7 Interest Revenues 9,606,000 8,739,000 8,235,000 8,171,000 112,280,000
8 Capital Facilities Capacity Charges 19,673,000 19,749,000 19,830,000 19,906,000 190,433,034
9 Other Revenues 18,351,000 18,736,000 19,131,000 19,535,000 188,839,855
10 Revenues 547,028,000 557,561,000 567,074,000 578,214,000 5,483,254,806
Requirements:
11 Oper & Mtce Exp (3.0% yr)209,307,000 215,586,000 222,054,000 228,716,000 2,018,180,523
12 Capital Improvement Program (CIP)339,646,032 315,447,626 229,372,053 183,851,312 2,942,767,623
13 Less: CIP Savings & Deferrals (60,415,911) (51,096,452) (26,444,445) (14,356,378) (319,507,384)
14 Allocation for Future Rehabilitation 42,904,593 59,099,990 77,708,409 97,434,615 348,586,604
15 COP Service 72,377,000 72,373,000 72,374,000 77,224,000 713,797,000
16 Reduction of Long-Term Liabilites - - - - 163,775,355
17 Other Requirements 2,940,000 2,940,000 2,940,000 2,940,000 36,911,253
18 Requirements 606,758,714 614,350,164 578,004,017 575,809,549 5,904,510,974
19 Revenues-Requirements (59,730,714) (56,789,164) (10,930,017) 2,404,451 (421,256,168)
Accumulated Funds:
20 Beginning of Year 675,093,759 615,363,045 558,573,881 547,643,864 971,304,483
21 End of Year 615,363,045 558,573,881 547,643,864 550,048,315 550,048,315
22 Consolidated Reserve Policy 549,225,000 551,009,000 547,558,000 549,946,000 549,946,000
23 Over (Under) Reserve Policy*66,138,045 7,564,881 85,864 102,315 102,315
Excess (Shorfall) in Reserves 66,138,045 7,564,881 85,864 102,315 102,315
Sewer Service User Fees:
24 Avg SFR Annual User Fee $377 $383 $389 $395
25 Percentage Change 1.62%1.59%1.57%1.54%
26a SFR noticed 4-2003
26b PV of SFR Annual Fee @ 5%$267.93 $259.23 $250.75 $242.50
Added EDUs 2,813 2,821 2,830 2,838
26 Equivalent Dwelling Units 940,483 943,304 946,134 948,972
27 SFR Connection Fee $5,770 $5,787 $5,804 $5,821
Conn. Fee- Indust.$2,108 $2,114 $2,120 $2,126
28 Outstanding COPs $673,280,000 $630,815,000 $586,230,000 $539,415,000
Average Daily Flow, mgd 188 188 188 188
Reserve Policy
29 50% Next Year Operating 104,654,000 107,793,000 111,027,000 114,358,000
30 10% Next Year Operating 20,931,000 21,559,000 22,205,000 22,872,000
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.148,592,000 148,592,000 148,592,000 148,592,000
33 DSR @ 10% Outstanding COP 67,328,000 63,082,000 58,623,000 53,942,000
34 SFI @ $100M 109,915,000 111,663,000 113,416,000 115,163,000
35 Repl & Refurb 82,437,000 83,748,000 85,063,000 86,373,000
36 *Reserve Reduction - (5,000,000) (4,000,000)
37 Total 549,225,000 551,009,000 547,558,000 549,946,000
COP Ratios
38 Sr Lien Coverge, Min 1.25 4.39 4.45 4.49 4.27
Approved FY 2021-22 Outlay $261,945,634
New Projects 673,103 0.3%
Additions to Existing Projects 20,478,630 7.8%
Deductions from Existing Projects (48,508,413)(18.5%)
Proposed Outlay for FY 2021-22 234,588,954 (10.4%)
Less: CIP Savings & Deferrals ($15,028,451)(5.7%)
Allocation for Future Rehab.5,000,000 1.9%
Proposed Net CIP Outlay $$224,560,503 (14.2%)
Approved FY 2020-21 Total CIP Budget Authority $4,179,541,800
New Projects 294,000,000 6.9%
Additions to Existing Projects 160,356,001 3.8%
Deductions from Existing Projects (378,952,003)(8.9%)
FY 2021-22 Proposed Total CIP Budget Authority $4,254,945,798 1.8%
% Change
A - 4
Capital Improvement Program Summary
Item
Rehabilitation
and
Replacement
Strategic
Initiatives
Additional
Capacity Regulatory Total
Budget
Collections Facilities $30,708,828 $1,951,374 $7,803,195 $21,696 $40,485,093
Solids Handling & Digestion 9,506,512 5,718,377 --15,224,889
Support Facilities 33,194,642 28,560,521 1,200,196 1,200,196 64,155,555
Utility Systems 7,742,169 742,028 --8,484,197
Liquid Treatment:
Headworks 33,064,764 8,481,733 --41,546,497
Ocean Outfall Systems 6,013,451 17,979,971 --23,993,422
Primary Treatment 20,600,018 303,402 --20,903,420
Secondary Treatment 4,078,207 ---4,078,207
Liquid Treatment Subtotal 63,756,440 26,765,106 --90,521,546
Other:
Information Management Systems 5,249,148 1,183,849 -16,283 6,449,280
Strategic & Master Planning 1,642,080 1,026,301 410,520 1,026,301 4,105,202
Others 946,400 959,567 946,400 946,400 3,798,767
Research -806,894 --806,894
Water Management Projects -309,211 --309,211
Process Related Special Projects ---248,320 248,320
Other Subtotal 7,837,628 4,285,822 1,356,920 2,237,304 15,717,674
Grand Total $152,746,219 $68,023,228 $10,360,311 $3,459,196 $234,588,954
Less: CIP Savings & Deferrals ($15,028,451)
Allocation for Future Rehab.$5,000,000
Proposed Net CIP Outlay $224,560,503
Project Summary FY 2021-22
A - 5
2021-22 Budget Update
A - 6
Capital Improvement Expenditure Graphs
Collections Facilities
Santa Ana Trunk Sewer Rehab 1-23 $54,620,000 $54,620,000 $1,051,179 $914,334 Not Started
Greenville-Sullivan Trunk Impr.1-24 48,600,000 48,600,000 371,204 286,363 Not Started
Edinger Pump Station Repl.11-33 10,153,000 13,500,000 275,917 74,449 Not Started
Slater Pump Station Rehab 11-34 26,622,000 31,000,000 600,988 235,537 Not Started
SARI Rock Stabilizers Removal 2-41-8 4,860,000 4,210 Revised
Taft Branch Capacity Impr.2-49 14,000,000 16,800,000 724,782 1,422,835 Started
Newhope - Placentia Trunk Grade Separation Repl.2-65 4,300,000 11,357 Continuing
Newhope-Placentia Trunk Repl.2-72 112,000,000 112,000,000 10,278,948 5,662,265 Started
Yorba Linda Dosing Station Installation 2-73 14,080,000 11,000,000 Not Started
Beach Relief Trunk/Knott Interceptor/Miller Holder Trunk Rehab 3-60 35,132,000 35,132,000 Not Started
Westminster Blvd Force Main Repl.3-62 44,000,000 44,000,000 11,582,220 8,458,681 Started
Rehab of Western Regional Sewers 3-64 70,000,000 82,000,000 12,848,669 13,051,457 Started
Interstate 405 Widening Project Impacts on OCSD Sewers 3-66 250,000 250,000 62,102 21,696 Started
Seal Beach Pump Station Repl.3-67 78,900,000 87,000,000 2,093,648 2,133,205 Started
Los Alamitos Sub-Trunk Extension 3-68 84,124,000 117,000,000 Not Started
Crystal Cove Pump Station Rehab 5-66 13,200,000 13,200,000 Not Started
Bay Bridge Pump Station Repl.5-67 74,000,000 74,000,000 1,145,952 3,814,704 Started
Newport Beach Pump Stations Pressurization Impr.5-68 4,300,000 4,300,000 343,555 327,102 Started
District 6 Trunk Sewer Relief 6-17 7,250,000 Revised
Fairview Trunk Sewer Rehab 6-20 17,000,000 187,716 New
MacArthur Pump Station Rehab 7-63 9,800,000 9,800,000 Not Started
Main Street Pump Station Rehab 7-64 39,450,000 37,000,000 Not Started
Gisler-Red Hill Interceptor & Baker Force Mains Rehab 7-65 21,000,000 39,000,000 1,763,122 772,900 Started
Sunflower & Red Hill Interceptor Repairs 7-66 4,700,000 6,999,997 2,553,194 2,704,438 Started
MacArthur Force Main Impr.7-68 2,468,000 3,500,000 54,349 417,411 Started
North Trunk Impr.7-69 9,200,000 10,000,000 Not Started
Collections Facilities Total Budget 787,009,000 867,701,998 45,765,396 40,485,093
A - 7
2021-22 Budget Update
Summary of Capital Requirement - Collection System Improvement Projects
Project
Number
Original
Total
Project
Budget
Revised
Total
Project
Budget
Approved
2021-22
Outlay
Proposed
2021-22
Outlay
Project
Status
Ocean Outfall Systems
Ocean Outfall System Rehab J-117 166,000,000 166,000,000 23,477,550 23,933,041 Started
Sodium Bisulfite Station Rehab at P2 P2-135 3,834,000 3,834,000 206,659 60,381 Not started
Emergency Overflow Pipes & Wingwall Rehab at P2 P2-139 4,200,000 New
Ocean Outfall Systems Total 169,834,000 174,034,000 23,684,209 23,993,422
Information Management Systems
Process Control Systems Upgrades J-120 33,000,000 37,000,000 4,987,341 3,406,549 Started
Project Mgmt. Information System J-128 2,280,000 2,280,000 565,864 294,481 Started
Information Technology Capital Program M-MC-IT 10,000,000 10,000,000 1,012,782 1,778,736 Started
EAM Software & Process Implementation SP-100 7,500,000 9,200,000 448,311 Started
Geographic Information System SP-15 4,700,000 4,568,000 59,709 16,283 Started
Process Control Systems Upgrades Study SP-196 3,400,000 3,400,000 7,806 504,920 Started
Information Management Systems Total 60,880,000 66,448,000 6,633,502 6,449,280
Utility Systems
Digester Gas Facilities Repl.J-124 173,000,000 173,000,000 3,736,720 1,398,801 Started
Natural Gas Pipelines Repl. at P1 & P2 J-127 1,610,000 2,000,000 105,734 221,883 Started
Central Generation Engine Overhauls at P1 & 2 J-135 26,000,000 44,000,000 1,521,979 3,788,815 Started
Power Building Structural Seismic Impr. at P1 & 2 J-136 7,080,000 5,400,000 239,060 161,114 Not started
Electrical Power Distribution System Impr.J-98 26,500,000 26,500,000 2,075,970 2,107,681 Started
Central Generation Rehab at P1 P1-127 68,452,000 68,452,000 Not started
Uninterruptible Power Supply Impr. at P1 P1-132 7,000,000 7,000,000 584,761 625,925 Started
12.47 kVSwitchgear Repl. at Central Generation at P1 P1-136 14,800,000 17,000,000 Not started
Network & Server Relocation at P1 P1-138 3,027,000 13,000,000 228,012 179,978 Not started
Standby Generator Feeders for P1 Secondary Systems P1-139 2,800,000 New
Consolidated Demolition & Utility Impr. at P2 P2-110 30,000,000 16,281 Revised
Central Generation Rehab at P2 P2-119 108,000,000 108,000,000 Not started
Warehouse, Electrical Substation & 12kV Service Center Repl. at
P2 P2-126 65,000,000 64,999,999 3,415,000 Started
Utility Systems Total 530,469,000 532,151,999 11,923,517 8,484,197
Process Related Special Projects
Safety Impr. Program J-126 16,000,000 16,000,000 13 248,320 Started
Process Related Special Projects Total 16,000,000 16,000,000 13 248,320
Support Facilities
Laboratory Rehab at P1 J-133 44,200,000 44,200,000 Not started
Small Construction Projects Program M-FE 65,000,000 90,000,000 10,104,836 12,001,957 Started
Operations & Maintenance Capital Program M-SM-CAP 15,622,000 15,622,000 1,089,947 2,022,639 Started
A - 8
Summary of Capital Requirements
Summary of Capital Requirement - Treatment System Improvement Projects
Project
Number
Original
Total
Project
Budget
Revised
Total
Project
Budget
Approved
2021-22
Outlay
Proposed
2021-22
Outlay
Project
Status
Support Facilities
Title 24 Access Compliance & Building Rehab Project P1-115 18,400,000 Continuing
Headquarters Complex P1-128 167,500,000 167,499,999 42,138,713 45,106,221 Started
South Perimeter Security & Utility Impr. at P1 P1-134 10,000,000 10,000,000 4,607,510 3,852,526 Started
Support Buildings Seismic Impr. at P1 P1-137 23,730,000 23,730,000 519,477 776,979 Started
Collections Yard Relocation P2-127 1,840,000 1,900,000 106,701 39,814 Not started
Operations & Maintenance Complex at P2 P2-138 95,000,000 95,000,000 1,150,713 355,419 Not started
Support Facilities Total 441,292,000 447,952,000 59,717,897 64,155,555
Water Management Projects
GWRS Final Expansion Coordination J-36-2 1,132,000 1,332,000 265,666 309,211 Started
Water Management Projects Total 1,132,000 1,332,000 265,666 309,211
Research
Research Program M-RESEARCH 8,500,000 8,500,000 729,331 806,894 Started
Research Total 8,500,000 8,500,000 729,331 806,894
Strategic & Master Planning
Planning Studies Program M-STUDIES 28,652,000 28,652,000 1,488,527 4,105,202 Started
Strategic & Master Planning Total 28,652,000 28,652,000 1,488,527 4,105,202
Solids Handling & Digestion
Sludge Dewatering & Odor Control at P1 P1-101 197,000,000 Revised
Digester Ferric Chloride Piping Repl. at P1 P1-135 1,360,000 1,360,000 1,021,560 723,747 Started
Interim Food Waste Receiving Facility P2-124 6,300,000 6,300,000 3,946,321 3,201,672 Started
TPAD Digester Facility at P2 P2-128 455,000,000 455,000,000 13,009,017 10,066,820 Started
Digester P, Q, R, & S Repl.P2-129 165,900,000 165,900,000 Not started
Digesters Rehab at P2 P2-137 40,632,000 40,632,000 1,547,988 537,702 Started
Sludge Dewatering & Odor Control at P2 P2-92 90,477,000 90,476,999 583,093 694,948 Started
Solids Handling & Digestion Total 956,669,000 759,669,000 20,107,979 15,224,889
Headworks
Headworks Rehab at P1 P1-105 406,000,000 340,000,000 49,765,501 33,064,764 Started
Headworks Modification at P2 for GWRS Final Expansion P2-122 32,000,000 32,000,000 8,633,144 8,481,733 Started
Headworks Total 438,000,000 372,000,000 58,398,645 41,546,497
Primary Treatment
Primary Sedimentation Basins No. 3-5 Repl. at P1 P1-126 117,700,000 127,000,000 185,465 459,659 Started
Primary Sedimentation Basins No. 6-31 Reliability Impr. at P1 P1-133 10,100,000 14,000,000 1,295,242 606,804 Started
B/C-Side Primary Sedimentation Basins Rehab at P2 P2-133 279,842,000 279,842,000 Not started
Primary Treatment Rehabiliation at P2 P2-98 237,000,000 195,000,000 26,239,796 19,836,957 Started
Primary Treatment Total 644,642,000 615,842,000 27,720,503 20,903,420
A - 9
2021-22 Budget Update
Summary of Capital Requirement - Treatment System Improvement Projects
Project
Number
Original
Total
Project
Budget
Revised
Total
Project
Budget
Approved
2021-22
Outlay
Proposed
2021-22
Outlay
Project
Status
Secondary Treatment
Return Activated Sludge Piping Repl. at Activated Sludge P1 P1-129 10,300,000 9,300,000 217,032 144,269 Started
Activated Sludge-1 Aeration Basin & Blower Rehab at P1 P1-140 270,000,000 485,387 New
Return Activated Sludge Piping Repl. at P2 P2-123 10,800,000 10,000,000 2,174,218 3,285,100 Started
Activated Sludge Aeration Basin Rehab at P2 P2-136 65,600,000 65,600,000 501,296 163,451 Not started
Secondary Treatment Total 86,700,000 354,900,000 2,892,546 4,078,207
Others
Capital Improvement Program Mgmt. Services SP-195 700,000 700,000 26,903 13,167 Started
Others Total 700,000 700,000 26,903 13,167
Total Treatment and Disposal Projects 3,383,470,000 3,378,181,000 213,589,238 190,318,261
Total Collections Facilities 787,009,000 867,701,998 45,765,396 40,485,093
Capital Equipment Purchases 9,062,800 9,062,800 2,591,000 3,785,600
Total $ 4,179,541,800 $4,254,945,798 $261,945,634 $234,588,954
Less: CIP Savings & Deferrals ($15,028,451)
Allocation for Future Rehab.$5,000,000
Proposed Net CIP Outlay $224,560,503
A - 10
Summary of Capital Requirements
Summary of Capital Requirement - Treatment System Improvement Projects
Project
Number
Original
Total
Project
Budget
Revised
Total
Project
Budget
Approved
2021-22
Outlay
Proposed
2021-22
Outlay
Project
Status
Rehabilitation of existing trunk sewer main is necessary to address identified structural deficienices.
The project budget is $17,000,000. The project's estimated construction contract cost is
$7,960,000. The impacts to operational budgets have not yet been determined.
Description
This project will rehabilitate the entire west parallel sewer of the Fairview Trunk and repair other
portions. The project includes the rehabilitation of 9,489 feet of 12-inch to 27-inch sewer with 48-
inch to 84-inch manholes along Fairview Road in the City of Costa Mesa. The project also includes
spot repairs in the same vicinity.
Justification
Project Name & Number
Project Category $17,000,000Collections Facilities
Fairview Trunk Sewer Rehabilitation - 6-20
Project Budget:
Description
P1-105 Project “Headworks Rehabilitation at Plant 1” will install Medium Voltage Back Up
Generators to support Plant 1 Loads, including Blower Building 1 and Power Building 2 standby
loads. This project will demolish existing diesel standby generators, fuel storage tanks, associated
cabling and power distribution equipment at Blow Building 1 and Power Building 2. It will also
provide new medium voltage feeders, power transformers to refeed standby loads at Blower
Building 1 and Power Building 2.
Justification
The purpose of this project is to rehabilitate the existing standby diesel generator infrustructure
and Standby Power distribution System in Blower Building 1 and Power Building 2 and phase out
aged generators with overheating problems
The project budget is $2,800,000. The project's estimated construction contract cost is $1,380,000.
The impacts to operational budgets have not yet been determined.
Project Name & Number
Project Category $2,800,000Utility Systems
Standby Generator Feeders for Plant No. 1 Secondary Systems - P1-139
Project Budget:
CIP New Project Descriptions
A - 11
2021-22 Budget Update
Built in the early 1970s, the AS-1 facility is nearing the end of its useful life. A major rehabilitation of
AS-1 will ensure reliable service for next 20 plus years. PEPS will no longer be needed when the
Primary Sedimentation Basins Nos. 3-5 Replacement Project, P1-126, is completed. A new MLR
pump station is required to convert AS-1 from a partial to a full denitrification process which will
remove nitrates and improve effluent water quality.
The project budget is $270,000,000. The project's estimated construction contract cost is
$162,640,000. The impacts to operational budgets have not yet been determined.
Description
This project will perform a comprehensive rehabilitation of the Activated Sludge Facility No. 1 (AS-
1) at Plant No. 1. This project will demolish the Primary Effluent Pump Station No. 1 (PEPS) and
associated piping, replace all major mechanical, electrical and instrumentation equipment and
perform structural rehabilitation. The facilities in this project include Blower Building No. 1, Aeration
Basins Nos. 1-10, Return Activated Sludge Pump Station and Secondary Clarifiers Nos. 1-26. A
new Mixed Liquor Recycle (MLR) pump station and associated piping is also included in this
project.
Justification
Project Name & Number
Project Category $270,000,000Secondary Treatment
Activated Sludge-1 Aeration Basin and Blower Rehabilitation at Plant No. 1 - P1-140
Project Budget:
Description
Plant No. 2 has emergency overflow weirs consisting of four reinforced concrete pipes that can
discharge into the Santa Ana River through two concrete wingwall structures. This project will
include rehabilitation of concrete and rebar of the wingwalls and foundation slabs. Because both
wingwalls are located by the Santa Ana River, this work will require permits from various agencies.
Justification
A Planning Study conducted a structural investigation on the wingwalls and concluded that both of
the structures appear to be in a gradually deteriorating condition. If the current level and rate of
deterioration are not addressed, the remaining service life of each structure will be greatly
impacted and could potentially require replacement within approximately 10 years.
The project budget is $4,200,000. The project's estimated construction contract cost is $2,290,000.
The impacts to operational budgets have not yet been determined.
Project Name & Number
Project Category $4,200,000Ocean Outfall Systems
Emergency Overflow Pipes and Wingwall Rehabilitation at Plant No. 2 - P2-139
Project Budget:
A - 12
CIP New Project Descriptions
2021-22 Budget Update
A - 13
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Capital Equipment Budget Summary
A - 14
Capital Equipment Budget
2021-22
Department
Trucks &
Vehicles
09410000
Other Mobile
Eq
09410001
Machine Eq
& Tools
09410002
Comm
Equipment
09410003
Information Technology -$ -$ -$ -$
Resource Protection 45,000 - 11,600 -
Environmental Laboratory & Ocean Monitoring - - - -
Design - - - -
Construction Management 33,300 - - -
Collection Facilities O&M - - - -
Fleet Services 1,055,000 407,400 - -
Plant No. 1 Operations - - - -
Plant No. 2 Operations - - - -
Plant No. 1 Maintenance 93,600 - 191,300 -
Plant No. 2 Maintenance 66,600 - 43,700 -
Total Proposed Capital Equipment 1,293,500$ 407,400$ 246,600$ -$
2021-22 Budget Update
A - 15
Capital Equipment Budget
2021-22
Department
Instr / Test
Equipment
09410004
Safety &
Traffic Eq
09410005
Office Fix
& Eq
09410006
Computer
Equipment
09410007
2021-22
Proposed
Budget
Information Technology -$ -$ -$ -$ -$
Resource Protection - - - - 56,600
Environmental Laboratory & Ocean Monitoring 1,592,900 - - - 1,592,900
Design 21,600 - - - 21,600
Construction Management - - - - 33,300
Collection Facilities O&M 25,000 - - 48,500 73,500
Fleet Services - - - - 1,462,400
Plant No. 1 Operations - - - - -
Plant No. 2 Operations - - - - -
Plant No. 1 Maintenance 150,100 - - - 435,000
Plant No. 2 Maintenance - - - - 110,300
Total Proposed Capital Equipment 1,789,600$ -$ -$ 48,500$ 3,785,600$
Capital Equipment Budget Summary
A - 16
Capital Equipment Budget Detail
Division Equipment Type
Proposed
Equip. Budget
Heavy Duty Service Truck 45,000
All Weather Refrigerated Sampler 11,600
Total 56,600$
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
Triple Quadrupole GC/MS 308,000
Hach Refrigerated Auto-Sampler 18,500
Acoustic Doppler Current Profiler (ADCP)49,200
Phytoplankton Autosampler 163,400
Ocean Acidification and Hypoxia Sensors (6)211,600
Total 1,592,900$
PLC Test Units 21,600
Total 21,600$
Mid-size Truck or Small SUV for Construction Projects 33,300
Total 33,300$
Providence Photonics QL320 25,000$
FLIR GF77a - Optical Gas Imaging Camera 48,500$
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$
Medium Duty Truck 46,800
Medium Duty Truck 46,800
Aaladin Model 2260E Parts Washer 47,300
Pipe and Angle Bender 20,800
Quincy QGS 75 Rotary Air Compressor 123,200
Beamex Multi-Calibrator (5)130,300
Portable External Flowmeter with Transducers 19,800
Total 435,000$
Sedans (2)66,600
Olymus IPLEX GX/GT Borescope 43,700
Total 110,300$
Total Proposed 2021-22 Capital Equipment Budget 3,785,600$
870 - Plant No. 1 Maintenance
880 - Plant No. 2 Maintenance
620 - Resource Protection
630 - Environmental Laboratory & Ocean Monitoring
770 - Construction Management
760 - Design
820 - Collection Facilities O&M
822 - Fleet Services
2021-22 Budget Update
A - 17
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Levels of Service
A - 18
FY 19-20
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 1.4 MGD Up to 10 MGD
Maximum Individual Cancer Risk to off-site residents, per one million people (for each treatment plant) Plant No. 1 – 2.24
Plant No. 2 – 1.76
<10
<10
Notices of violation (NOV) with air, land, and water permits 2 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 5.4 mg/L TSS 5.3 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
Compliance with core industrial pretreatment requirements 100% 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 3.2 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 6% ≤ 10% of budget
Maintain AAA Bond Rating 100% 100%
2021-22 Budget Update
A - 19
FY 19-20
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 95% 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
10 7 9
0 0 12
Respond to public complaints or inquiries regarding construction projects within 1 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 2.85 <4.8 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
0.89 <2.9
Training hours per employee 30 45 per year
Self-Funded Insurance Plans
A - 20
SELF-FUNDED INSURANCE PLANS
The General Liability and Property program and the Workers’ Compensation program provide for OCSD to be
partially self-insured for general liability and workers’ compensation. The in-lieu premiums charged to the
operating divisions are the revenue source for these programs. Expenses primarily consist of settlement claims,
legal fees and excess loss insurance premiums. Ending Reserve Balances are projected at $100 million.
General Liability and Property
•OCSD’s current excess general liability insurance coverage is $40 million per occurrence and aggregate,
with a self-insured retention of $750,000.
•OCSD’s current property insurance coverage is $800 million for perils of fire and $100 million for perils of
flood, subject to a self-insured retention of $500,000. OCSD is partially self-insured for earthquake, but
does carry $25 million in coverage on 15 key structures with a $5 million deductible. OCSD also has a $50
million sublimit for builder’s risk under the property insurance program to ensure upcoming construction
projects are adequately covered.
•In order to maintain the reserve balance of $98 million for the General Liability and Property program,
appropriations for in-lieu premiums charged to operating divisions are recommended at $2,140,000 for
FY 2021-22.
Workers’ Compensation
•OCSD’s current excess workers’ compensation coverage has unlimited statutory coverage per occurrence
and $4 million employer’s liability per employee 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’ Compensation program,
appropriations for in-lieu premiums charged to operating divisions are recommended at $800,000 for
FY 2021-22.
FY 2021-22 Self-Insurance Program Budget
General Liability Workers' Total
& Property Compensation Self-Insurance
DESCRIPTION OR ACCOUNT TITLE Program Program Program
Beginning Reserves 98,000,000$ 2,000,000$ 100,000,000$
Revenues
In-Lieu Premiums 2,140,000 780,000 2,920,000
Miscellaneous Other Revenue - - -
Service Department Allocation - - -
Total Revenues 2,140,000 780,000 2,920,000
Expenses
Benefits/Claims 40,000 430,000 470,000
Contractual Services - - -
Legal Services 40,000 80,000 120,000
Professional Services 20,000 60,000 80,000
Policy Premium Expense 2,509,393 271,860 2,781,253
Total Expenses 2,609,393 841,860 3,451,253
Excess Revenue (Expenses)(469,393) (61,860) (531,253)
Ending Reserves 97,530,607$ 1,938,140$ 99,468,747$
2021-22 Budget Update
A – 21
Historical Staffing Summary
Authorized Authorized Authorized Authorized 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 3.00
Board Services 5.00 5.00 5.00 7.00 6.00
Public Affairs 5.00 5.00 6.00 6.00 6.00
Department Subtotal 15.00 14.00 15.00 18.00 15.00
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 3.00 3.00 3.00 1.00 2.00
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 99.00 100.00 101.00 101.00 102.00
Envrionmental Services Department
Environmental Services Administration & Regulatory Compliance 2.00 2.00 2.00 2.00 11.00
Resource Protection 37.00 37.00 37.00 37.00 37.00
Environmental Laboratory & Ocean Monitoring 52.00 52.00 53.00 54.00 45.00
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 34.00
Construction Management 29.00 30.00 31.00 40.00 41.00
Department Subtotal 116.00 116.00 121.00 117.00 116.00
Operations and Maintenance Department
Operations and Maintenance Administration 3.00 3.00 2.00 3.00 3.00
Collection Facilities Operations & Maintenance 26.00 26.00 26.00 29.00 29.00
Fleet Services 8.00 8.00 8.00 8.00 9.00
Plant No. 1 Operations 61.00 62.00 62.00 54.00 55.00
Plant No. 2 Operations 51.00 50.00 50.00 52.00 53.00
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
Department Subtotal 287.00 288.00 284.00 284.00 287.00
Grand Total - All Departments*635.00 636.00 640.00 639.00 639.00
Historical Staffing Detail
A – 22
Authorized Authorized Authorized Authorized Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2017-18 2018-19 2019-20 2020-21 2021-22
General Manager's Office
110 General Management Administration
General Manager 1.00 1.00 1.00 1.00 1.00
Assistant General Manager 1.00 1.00 1.00 2.00 -
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 3.00
120 Board Services
Clerk of the Board 1.00 1.00 1.00 1.00 1.00
Records Management Specialist - - - 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 6.00
140 Public Affairs
Administrative Manager - - 1.00 - -
Public Affairs Supervisor 1.00 1.00 - - -
Principal Public Affairs Specialist - - 1.00 1.00 1.00
Senior Public Affairs Specialist 1.00 1.00 1.00 1.00 1.00
Public Affairs Specialist 1.00 1.00 1.00 2.00 2.00
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Graphics Designer - 1.00 1.00 1.00 1.00
Graphics Coordinator 1.00 - - - -
Total Public Affairs 5.00 5.00 6.00 6.00 6.00
Total General Manager's Office 15.00 14.00 15.00 18.00 15.00
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 Supervisor - 2.00 2.00 2.00 2.00
Principal Human Resources Analyst 2.00 2.00 2.00 2.00 2.00
Senior Human Resources Analyst 5.00 4.00 4.00 4.00 4.00
Human Resources Analyst 4.00 4.00 4.00 4.00 4.00
Human Resources Assistant 1.00 2.00 2.00 2.00 2.00
Program Assistant 2.00 - - - -
Total Human Resources Administration 16.00 16.00 16.00 16.00 16.00
161 Risk Management/Safety/Security
Safety & Health Supervisor 1.00 1.00 1.00 1.00 1.00
Principal Financial Analyst 1.00 1.00 1.00 - -
Safety & Health Specialist 1.00 1.00 2.00 2.00 2.00
Security & Emergency Planning Specialist 1.00 1.00 1.00 1.00 1.00
Occupational Health Nurse 1.00 1.00 1.00 - -
Senior Safety & Health Representative 2.00 2.00 1.00 2.00 2.00
Senior Construction Inspector - - - 1.00 1.00
Safety & Health Representative 3.00 3.00 3.00 2.00 2.00
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Total Risk Management/Safety/Security 11.00 11.00 11.00 10.00 10.00
Total Human Resources Department 27.00 27.00 27.00 26.00 26.00
2021-22 Budget Update
A – 23
Authorized Authorized Authorized Authorized Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2017-18 2018-19 2019-20 2020-21 2021-22
Administrative Services Department
210 Administrative Services
Director of Finance & Administrative Services / Treasurer 1.00 1.00 1.00 - -
Assistant General Manager - - - - 1.00
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 3.00 3.00 3.00 1.00 2.00
220 Financial Management
Controller 1.00 1.00 1.00 1.00 1.00
Accounting Supervisor 3.00 3.00 3.00 3.00 3.00
Principal Accountant 2.00 2.00 2.00 2.00 2.00
Principal Project Controls Analyst - - - 1.00 1.00
Principal Staff Analyst - - - 4.00 4.00
Senior Accountant 2.00 2.00 2.00 2.00 2.00
Senior Staff Analyst 1.00 1.00 1.00 1.00 2.00
Accountant 2.00 2.00 2.00 2.00 1.00
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 -
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 3.00
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 Management 32.00 32.00 32.00 31.00 31.00
250 Information Technology
Information Technology Systems and Operations Manager 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 7.00
Records Management Specialist - 1.00 1.00 - -
Data Management Technician II 7.00 7.00 7.00 6.00 7.00
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 99.00 100.00 101.00 101.00 102.00
Historical Staffing Detail
A – 24
Authorized Authorized Authorized Authorized Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2017-18 2018-19 2019-20 2020-21 2021-22
Envrionmental Services Department
610
Director of Environmental Services 1.00 1.00 1.00 1.00 1.00
Pr Environmental Specialist - - - - 1.00
Regulatory Specialist - - - - 3.00
Senior Regulatory Specialist - - - - 2.00
Sr Environmental Specialist - - - - 3.00
Executive Assistant 1.00 1.00 1.00 1.00 1.00
2.00 2.00 2.00 2.00 11.00
620 Resource Protection
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 1.00 2.00 2.00 2.00 2.00
Engineer 5.00 4.00 4.00 5.00 5.00
Source Control Supervisor 1.00 1.00 1.00 1.00 1.00
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 1.00
Environmental Technician 3.00 3.00 3.00 3.00 4.00
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 Environmental Laboratory & Ocean Monitoring
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
Senior Regulatory Specialist 1.00 1.00 2.00 2.00 -
Senior Scientist 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 8.00
Senior Environmental Specialist 18.50 18.00 18.00 18.00 15.00
Boat Captain 1.00 1.00 1.00 1.00 1.00
Environmental Specialist 7.00 7.00 7.00 7.00 7.00
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Environmental Technician 3.00 3.00 3.00 3.00 3.00
Total Environmental Laboratory & Ocean Monitoring 52.00 52.00 53.00 54.00 45.00
Total Environmental Services Department 91.00 91.00 92.00 93.00 93.00
Environmental Services Administration & Regulatory
Compliance
Total Environmental Services Admin. & Regulatory
Compliance
2021-22 Budget Update
A – 25
Authorized Authorized Authorized Authorized Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2017-18 2018-19 2019-20 2020-21 2021-22
Engineering Department
710 Engineering Administration
Administrative Assistant - - - 1.00 1.00
Assistant General Manager - 1.00 1.00 - -
Director of Engineering 1.00 - 1.00 1.00 1.00
Principal Staff Analyst - - - 1.00 1.00
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
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 -
Senior Engineer 1.00 1.00 2.00 11.00 11.00
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 17.00 16.00 17.00 21.00 21.00
760 Design
Engineering Manager 1.00 1.00 1.00 1.00 1.00
Engineering Supervisor 5.00 4.00 4.00 4.00 4.00
Senior Engineer 7.00 7.00 7.00 12.00 11.00
Construction Inspection Supervisor 2.00 2.00 2.00 - -
Engineer 13.00 13.00 13.00 8.00 7.00
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 - -
Historical Staffing Detail
A – 26
Authorized Authorized Authorized Proposed Proposed
FTEs FTEs FTEs FTEs FTEs
2017-18 2018-19 2019-20 2020-21 2021-22
Information Tech Analyst II - - - 1.00 1.00
Information Tech Analyst III - - - 1.00 1.00
Administrative Assistant 2.00 2.00 2.00 1.00 1.00
Principal Info Tech Analyst - - - 3.00 3.00
Senior Info Tech Analyst - - - 3.00 3.00 Engineering Assistant I 1.00 1.00 - - -
Total Design 53.00 54.00 52.00 36.00 34.00
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 6.00
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 Construction Management 29.00 30.00 31.00 40.00 41.00
Total Engineering Department 116.00 116.00 121.00 117.00 116.00
Operations and Maintenance Department
810 Operations and Maintenance Administration
Director of Operations & Maintenance 1.00 1.00 - 1.00 -
Assistant General Manager - - - - 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 & Maintenance
Engineering Manager 1.00 1.00 1.00 - 1.00
Maintenance Manager - - - 1.00 1.00
Engineering Supervisor - - - - 1.00
Maintenance Supervisor 2.00 2.00 2.00 2.00 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
Environmental Technician - - - 1.00 1.00
Office Assistant 1.00 1.00 1.00 1.00 -
Total Collection Facilities Operations and Maintenance 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
Office Assistant - - - - 1.00
Automotive/ Heavy Equipment Assistant 1.00 1.00 1.00 - -
Total Fleet Services 8.00 8.00 8.00 8.00 9.00
Historical Staffing Detail
A – 27
Authorized Authorized Authorized Authorized Proposed
FTEs FTEs FTEs FTEs FTEs
Division & Position 2017-18 2018-19 2019-20 2020-21 2021-22
830 Plant No. 1 Operations
Operations Manager 1.00 1.00 1.00 1.00 1.00
Engineering Supervisor 1.00 1.00 1.00 - -
Chief Plant Operator 1.00 1.00 1.00 1.00 1.00
Senior Engineer 1.00 1.00 1.00 1.00 2.00
Principal Information Technology Analyst - - - - -
Staff Analyst - - - - 1.00
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
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 12.00
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Plant Operator 15.00 16.00 16.00 13.00 15.00
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 55.00
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 16.00
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Plant Operator 19.00 18.00 18.00 21.00 19.00
Total Plant No. 2 Operations 51.00 50.00 50.00 52.00 53.00
Historical Staffing Detail
A – 28
Authorized Authorized Authorized Authorized 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 1.00 1.00
Maintenance Manager 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 13.00
Lead Electrical Technician 3.00 3.00 3.00 3.00 4.00
Lead Heavy Equip Mechanic 1.00 1.00 1.00 - -
Lead Instrumentation Technician - - 1.00 1.00 1.00
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 - - -
2021-22 Budget Update
A – 29
Authorized Authorized Authorized Authorized 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 6.00
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 16.00
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 - - 1.00 2.00 2.00
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 287.00 288.00 284.00 284.00 287.00
Grand Total, All Departments 635.00 636.00 640.00 639.00 639.00
Historical Staffing Detail
A – 30
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2021-22 Budget Update
A -31
Appropriations Limit
Article XIIIB of the California State Constitution, more
commonly referred to as the Gann Initiative or Gann
Limit, was approved by California voters in 1979. 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 the agency. 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 2021-22 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 fiscal years and for 2021-
22. The increase in the limit is based upon population
changes ranging from negative 1.86 percent to
positive 0.02 percent for representative cities within
the Orange County Sanitation District’s service area
and a per capita personal income change of 5.73
percent, as provided by the State Department of
Finance.
Annual Appropriation Limits:
2019-20 $114,427,648
2020-21 $118,695,799
2021-22 $124,166,799
As a result of the July 1998 consolidation of the
Orange County 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 Orange County Sanitation District’s service
area. This method results in a lower limit than using
the county-wide change.
Miscellaneous Statistics
A - 32
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
2020-21 Assessed Value ................................. $494.2 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
2021-22 Authorized Staff (Full-Time Equivalent) ................ 639
Treatment Information
2019-20 Influent BOD:
Plant No. 1 ................................ 297 milligrams per liter
Plant No. 2 ................................ 233 milligrams per liter
2019-20 Influent Suspended Solids:
Plant No. 1 ................................ 340 milligrams per liter
Plant No. 2 ................................ 305 milligrams per liter
2019-20 Effluent BOD .............................. 11 milligrams per liter
2019-20 Effluent Suspended Solids ............ 5 milligrams per liter
2019-20 Biosolids Produced & Reused ............ 209,000 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
2020-21 Estimated Average Daily Influent:
Plant No. 1 ....................................................... 117 mgd
Plant No. 2 ......................................................... 66 mgd
TOTAL ........................................... 183 mgd
2020-21 Estimated Electricity Generated:
Plant No. 1 ........................................... 35,596,000 kWh
Plant No. 2 ........................................... 56,222,000 kWh
TOTAL ............................... 91,818,000 kWh
Financial Information
2021-22 2021-22
2019-20 2020-21 Originally Updated
Actual Projected Proposed Proposed
Fees and Charges:
One-Time 3-Bedroom Residence Connection $4,601.00 $4,973.00 $5,346.00 $5,346.00
Average Annual Single-Family Residence Fee $339 $339 $343 $343
Local SRF Fee $108 $108 $108 $108
District's Avg. Share of Ad Valorem Property Tax 1.58%1.60%1.60%1.60%
Cost to Collect, Treat, & Dispose of One Million Gallons 2,421.83$ 2,575.14$ $2,542.56 $2,680.72
Summary of COP Issues:
May 2010A New Money 80,000,000$ 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 8,170,000 November 2018A Refunding
Total Outstanding COP Balance 7/1/21 909,620,000$
56,080,000
127,510,000
136,830,000
65,815,000
102,200,000
0
100
200
300
400
Plant 1 Plant 2 Total
117
66
183208
168
376
2020-21 Est. Influent Capacity - Primary Treatment
Daily Influent Flow to Total Primary
Capacity Comparison (in mgd)
1. METERING AND DIVERSION
Wastewater enters our plant at 2.5 - 5 mph through
pipes up to 10 feet in diameter. High tech equipment
monitors the temperature, pH, conductivity, and flow
of the incoming wastewater.
2. PRELIMINARY TREATMENT
Raw sewage passes through bar
screens that trap large items like rags
that cannot be recycled. Materials like
egg shells and coffee grounds are then
removed through the grit chamber that
uses high pressure air to separate the
gritty material.
3. AIR SCRUBBER
Hydrogen sulfide (foul air) is
captured throughout the process
and funneled into large silos. It
passes through a plastic medium
and mixes with caustic soda and
bleach. Causing the odorous
compounds to be neutralized.
4. PRIMARY TREATMENT
Primary clarifiers or settling basins, slow the
water down to allow the solids in the wastewater
that readily settle or float to be separated from
the water being treated. Collector arms that
move along the top and the bottom remove over
80 percent of the influent wastewater solids.
Solids are then sent to the digesters
for processing.
5. SECONDARY TREATMENT
Trickling filters and aeration basins are used to further clean the
water. In trickling filters the water is sprayed over a honeycomb
type material upon which aerobic bacteria grow. As the water
trickles down, the microorganisms consume the solids that were
not removed through primary treatment. Aeration tanks use a
combination of oxygen and microorganisms, (activated sludge)
that consume the remaining organic solids. Treated water is
then sent to the Orange County Water District for recycling, or
discharged into the ocean.
7. SOLIDS PROCESSING
Solids captured from primary and secondary treatment are batch loaded into anaerobic
digesters where they are heated to about 98 degrees and treated for 18-21 days. The digestion
process produces methane gas and a material called biosolids. Biosolids are sent to the
dewatering facility where they are run through dewatering centrifuges. The centrifuges spin the
biosolids separating water from the solids. This process saves OCSD several million dollars per
year in truck hauling costs. The nutrient-rich biosolids are trucked off to
farms where they are recycled for direct land application and composting.
8. CENTRAL GENERATION
Methane gas that is captured from
digesters is compressed and used to
fuel engine generators that produce
electricity, supplying more than 60%
of our energy needs.
PA 05/2020
6. GROUNDWATER REPLENSMENT SYSTEM
A joint project between Orange County Sanitation
District and Orange County Water District. This system
reduces the amount of wastewater discharged to the
Pacific Ocean and creates a reliable supply of high-
quality water that is drought-resilient.
Orange County Sanitation DistrictWastewater Treatment Process
Biosolids
Our Policy
OC San strives to recycle our biosolids using sustainable options while
protecting public health and the environment.
Some of our biosolids are recycled and used like fertilizer on farm fields to
create and maintain healthy soils and improve crop yields.
Some of OC San’s biosolids are further processed through composting to
create a consumer-grade soil amendment that is distributed to agricultural,
commercial and residential users.
Our Program
Orange County’s biosolids are safe, highly-regulated, and meet the most
restrictive standards. In order to maintain these high-quality standards for
recycling our biosolids, OC San maintains a comprehensive and award-
winning Source Control Program that has significantly reduced the amount
of pollutants entering our facilities and biosolids.
Fertilizing farmland with biosolids is a win-win for the environment because
we are recycling a renewable resource and creating productive farmland.
It’s a win for farmers because research has demonstrated using biosolids
increases crop yields. And this biosolids management option is a win for
local sewer rate payers since it is a low-tech, low-cost, reliable option that
helps keep sewer rates low.
Learn More
Visit our website at www.ocsan.gov/biosolids for more information and to
sign up for periodic biosolids program newsletters.
Know what should go downthe drain that is sewer safe
It’s simple, the toilet is only meant to flush the
three Ps—pee, poop and paper.
Unfortunately, over the years, people have turned the toilet into a
trash can. From medications and sanitary products to deceased
pet fish and cigarette butts. If it fits, people flush it. Flushing these
types of items down the toilet causes home pipes to clog, wastes
water (up to five gallons of water every time you flush) and most
importantly can have a huge impact on our sewers, not to mention
our ocean.
Besides the three Ps the only other thing going down the drain should be soap and water. The toilet is not the
only drain that people are using to get rid of unwanted waste;
people are also known to use the kitchen sink as a trash can.
Letting trash flow and go down the kitchen sink (or any other
drain in the house) may cause pipes to clog and can eventually
lead to sewage spills that harm the environment.
Visit www.What2Flush.com to learn how to properly dispose of common
items that people flush or dump down the drain. Let’s keep our wastewater
flowing and our oceans clean. Educate yourself and others.
Know What 2 Flush and what to put down the drain. Protect our sewers
and environment!
The Groundwater Replenishment System (GWRS) is the world’s largest
advanced water purification system for potable reuse. It takes treated
wastewater that otherwise would be sent to the Pacific Ocean and purifies it
using a three-step advanced process.
The design and construction of the GWRS was jointly funded by the
Orange County Sanitation District (OC San) and the Orange County Water
District (OCWD). Together OC San and OCWD constructed one of the most
celebrated civil engineering and water reuse projects in the world.
The GWRS provides a reliable supply of highly purified, near-distilled quality
water. Even during drought years, the GWRS offers a more cost-effective
and energy-efficient way of producing water.
GWRS provides the county with new water it can count on. The project
serves as a model for other regions throughout the United States and
the world.
Reclamation Plant No. 1 and Administration Offices
10844 Ellis Avenue, Fountain Valley, California 92708
Treatment Plant No. 2
22212 Brookhurst Street, Huntington Beach, California 92646
Phone: 714.962.2411
Email: forinformation@ocsan.gov
Website: www.ocsan.gov
The Orange County Sanitation District (OC San) is a public agency that provides wastewater collection, treatment, recycling, and disposal services for approximately
2.6 million people in our service area of central and northern Orange County. OC San
is a special district that is governed by a Board of Directors consisting of 25 board
members. OC San has two operating facilities in Fountain Valley and Huntington
Beach that treat wastewater from residential, commercial, and industrial sources.
Follow the Flow:
Pretreatment: All the cities’ sewers connect to OC San’s collections system that
transports the wastewater to our treatment plants. Before the sewage enters our
facilities, our Source Control Program permits and inspects business and industry that discharge waste into the sewers. Maintaining and protecting our trunklines from
corrosion and odor issues is also an important part of what we do.
1. Metering and Diversion: Wastewater enters our treatment plants through
trunklines up to 10-feet in diameter at a speed of 2.5-5 mph. Automated
equipment measures the pH, conductivity, flow, and temperature. Data is
monitored by operators around the clock.
2. Preliminary Treatment: Consists of two parts – bar screens and grit chambers.
First, sewage passes through metal bars that catch large items (rags, trash,
wood, etc.). Next, grit chambers use air bubbles to suspend lighter material while
heavier grit (egg shells, coffee grounds, gravel, sand, etc.) sinks to the bottom
and is removed. Screenings and grit are sent to a landfill.
3. Air Scrubber: Most processes that produce odors are covered and the foul air is
drawn off for cleaning (deodorizing) by air scrubbers. OC San uses both chemical
and biofilter systems. Hydrogen sulfides (sewer gas smell) are neutralized by
using caustic soda, bleach, or live microorganisms.
4. Advanced Primary Treatment: Chemicals (ferric chloride and anionic polymer)
are added to the preliminary treated sewage to improve settling. Heavier suspended solids clump together and sink to the bottom (sludge). Lighter waste
(grease and oil) float to the surface (scum). This process takes about 2 hours
and up to 80% of the suspended solids are continuously removed by scraper
arms that revolve along the top and bottom of the basin. These solids are sent to
digesters for further processing.
5. Secondary Treatment: Advanced primary treated sewage is sent to either
trickling filters or activated sludge processes were aerobic microorganisms eat
the remaining dissolved waste from the water. The secondary treated wastewater
is then settled in clarifiers allowing the remaining sludge (either live or dead
microorganisms) to be removed. Activated sludge process uses aeration basins to mix oxygen and microorganisms to enhance the waste removal rate. Some of
the sludge is pumped back into the aeration basin as return activated sludge to
regenerate the basin. The remaining sludge is thickened and sent to digesters.
Final Effluent: The secondary treated wastewater from Plant No. 1 is sent to the
Orange County Water District for advanced treatment through the Groundwater Replenishment System (GWRS). This water is used to replenish Orange County’s
groundwater aquifers and protect against seawater intrusion. The secondary treated
wastewater from Plant No. 2 is safely released though our ocean pipeline five miles
out to sea at a depth of 200 feet below the ocean surface.
Our Mission:
“To protect public health and the environment by providing
effective wastewater collection, treatment, and recycling.”
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley
California, 92708-7018
714.962.2411
www.ocsan.gov
05/2021
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2021-1688 Agenda Date:6/9/2021 Agenda Item No:10.
FROM:James D. Herberg, General Manager
Originator: Lan C. Wiborg, Director of Environmental Services
SUBJECT:
ORANGE COUNTY SANITATION DISTRICT ENVIRONMENTAL SERVICES RESOURCE
PROTECTION
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION:
Information Item.
BACKGROUND
Each month,staff provides an informational presentation on topics of interest to the Board of
Directors.This month’s topic:Orange County Sanitation District Environmental Services Resource
Protection - protecting water, and reuse initiatives.
RELEVANT STANDARDS
·Comply with the Clean Water Act
·Safe, beneficial reuse of Biosolids
·Meet volume and water quality needs for the GWRS
ATTACHMENT
The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda
package:
·Presentation
Orange County Sanitation District Printed on 6/1/2021Page 1 of 1
powered by Legistar™
6/1/2021
1
Resource Protection Division
Presented By:
Roya Sohanaki, PE
Engineering Manager
Administration
Committee
June 9, 2021
Environmental Services Department
Resource
Protection
Division
(Pretreatment
Program)
Environmental
Services
Department
Industrial Source
Control
Non‐Industrial
Source Control
Source
Control
Inspection
Microbiology
& General
Chemistry
Ocean
Monitoring
Environmental
Laboratory and
Ocean
Monitoring
Division
Analytical
ChemistryCompliance
SCI ISC NISC
2
1
2
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2
Why a Pretreatment Program?
OC San Plants
Toxic pollutants must be
removed by implementing
pretreatment / source control
Plants are designed to reduce & reuse conventional pollutants not toxic pollutants
Wastewater contains
residential / sanitary conventional pollutants (including the three ‘P’s)
& industrial toxic pollutants
3
Why a Pretreatment Program?
OC San Plants
If toxic pollutants are not removed before entering the plants (pre-treatment),
then they transport to biosolids, the ocean, & GWRS
Toxic Pollutants
4
3
4
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Effectiveness of Source Control
Pounds of
Heavy
Metals Per
Day
Millions of
Gallons Per
Day
1977 Present
OC San’s Reduction of Heavy Metals Discharged
5
The Six Components of
Resource Protection (Pretreatment & Source Control)
P E R M I T
Permitting Enforcement Reporting Monitoring Inspection Team Work
6
5
6
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4
The Six Components of
Resource Protection (Pretreatment & Source Control)
T
I M
R
EPPermittingEnforcementReportingMonitoringInspectionTeam Work
• OC San’s Ordinance is our legal authority
• This Ordinance is approved and enacted by
you the Board of Directors
• EPA requires issuance of permits to
dischargers
•OC San attempts to resolve enforcement issues by
working with permittees –only escalating when
necessary
•OC San issues hundreds of enforcement actions each
year
•Enforcement Response Plan (ERP) includes a wide range
of enforcement responses
•Annual and Semi‐Annual Reports to the EPA and CA
State Water Resources Quality Control Board
•Comprehensive Self‐Monitoring Program where
permittees perform their own sampling (1,400/year)
•Overseeing reporting requirements for SAWPA &
IRWD
•Routine sampling is performed at most permittees
(350+) on a quarterly basis
•Trunkline sampling on a monthly basis
•Wastehauler station sampling
•RPD collects approximately 3,800 samples per year
•OC San performs approximately 1,500 inspections /
year
•Verify requirements are followed and document
changes in processes
•Find new dischargers
•As a leader in the region’s regulatory community, RPD
brings together many different agencies in protecting
OC’s water supply
•We collaborate with organizations through interagency
agreements
•RPD works closely with OC San’s Laboratory, Collections,
Operations, Finance, and Planning
OC San Administers Approx. 550 Control Mechanisms:
334 Significant Industrial Users (SIUs ‐Class 1 Permit)
179 Categorical Industrial Users (CIUs)
1 Centralized Waste Treatment (CWT)
155 Significant Non‐Categorical Industrial Users
19 Non‐Significant Industrial Users (Class 2 Permits)
33 Zero‐Discharge CIUs (ZD Certifications)
50 Groundwater Discharge Users (Special Purpose Permits)
21 Urban Runoff Users (Urban Runoff Permits)
38 Fats, Oil, & Grease Users (FOG Permits)
43 Hauled Waste Users (Wastehauler Permits)
Judicial Remedy (Criminal Penalty)
Physical Termination of Service
Permit Revocation
Judicial Referral (OC District Attorney)
Permit Suspension
Administrative Complaint & Civil Penalties Fine
Significant Noncompliance Publication & Cost Recovery
Regulatory Compliance Schedule Agreement (RCSA)
Enforcement Compliance Schedule Agreement (ECSA)
Probation Orders
Compliance Meetings
Compliance Inspections
Notices of Violation (NOV) & Cost Recovery Fines
Notices (Late Reports, Missing Attachments, Verbal Warnings, etc.)
7
Impact on “One Water” in OC
8
Blue arrow – not regulated via permit
Red arrow – regulated
7
8
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5
9
Dry Weather Urban Runoff Sites
Discharge to Plant No. 1
10
Program Success (2019‐2020)
Some OC San service area beaches
made the report card ‘honor roll’ with a
rating of
91%of beaches in Orange County
received an ‘A’ rating during
summer dry weather conditions
A+
9
10
6/1/2021
6
Questions
?
11
11
ORANGE COUNTY SANITATION DISTRICT
COMMON ACRONYMS
ACWA Association of California
Water Agencies LOS Level Of Service RFP Request For Proposal
APWA American Public Works
Association MGD Million Gallons Per Day RWQCB Regional Water Quality
Control Board
AQMD Air Quality Management
District MOU Memorandum of
Understanding SARFPA Santa Ana River Flood
Protection Agency
ASCE American Society of Civil Engineers NACWA National Association of Clean Water Agencies SARI Santa Ana River Interceptor
BOD Biochemical Oxygen Demand NEPA National Environmental Policy
Act SARWQCB Santa Ana Regional Water
Quality Control Board
CARB California Air Resources
Board NGOs Non-Governmental
Organizations SAWPA Santa Ana Watershed
Project Authority
CASA California Association of
Sanitation Agencies NPDES National Pollutant Discharge
Elimination System SCADA Supervisory Control And
Data Acquisition
CCTV Closed Circuit Television NWRI National Water Research
Institute SCAP
Southern California
Alliance of Publicly Owned Treatment Works
CEQA California Environmental
Quality Act O & M Operations & Maintenance SCAQMD South Coast Air Quality
Management District
CIP Capital Improvement
Program OCCOG Orange County Council of
Governments SOCWA South Orange County
Wastewater Authority
CRWQCB California Regional Water
Quality Control Board OCHCA Orange County Health Care
Agency SRF Clean Water State
Revolving Fund
CWA Clean Water Act OCSD Orange County Sanitation District SSMP Sewer System Management Plan
CWEA California Water Environment Association OCWD Orange County Water District SSO Sanitary Sewer Overflow
EIR Environmental Impact Report OOBS Ocean Outfall Booster Station SWRCB State Water Resources
Control Board
EMT Executive Management Team OSHA Occupational Safety and
Health Administration TDS Total Dissolved Solids
EPA US Environmental Protection Agency PCSA
Professional
Consultant/Construction
Services Agreement
TMDL Total Maximum Daily Load
FOG Fats, Oils, and Grease PDSA Professional Design Services
Agreement TSS Total Suspended Solids
gpd gallons per day PFAS
Per- and Polyfluoroalkyl
Substances WDR Waste Discharge
Requirements
GWRS Groundwater Replenishment
System PFOA Perfluorooctanoic Acid WEF Water Environment
Federation
ICS Incident Command System PFOS Perfluorooctanesulfonic Acid WERF Water Environment & Reuse Foundation
IERP Integrated Emergency
Response Plan POTW Publicly Owned Treatment
Works WIFIA Water Infrastructure
Finance and Innovation Act
JPA Joint Powers Authority ppm parts per million WIIN Water Infrastructure Improvements for the
Nation Act
LAFCO Local Agency Formation
Commission PSA Professional Services
Agreement WRDA Water Resources
Development Act
ORANGE COUNTY SANITATION DISTRICT
GLOSSARY OF TERMS
ACTIVATED SLUDGE PROCESS – A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater.
BENTHOS – The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone.
BIOCHEMICAL OXYGEN DEMAND (BOD) – The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water.
BIOGAS – A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used
as a fuel.
BIOSOLIDS – Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farmland or further processed as an earth-like product for
commercial and home gardens to improve and maintain fertile soil and stimulate plant growth.
CAPITAL IMPROVEMENT PROGRAM (CIP) – Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities.
COLIFORM BACTERIA – A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere, used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater.
COLLECTIONS SYSTEM – In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water.
CERTIFICATE OF PARTICIPATION (COP) – A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues.
CONTAMINANTS OF POTENTIAL CONCERN (CPC) – Pharmaceuticals, hormones, and other organic wastewater contaminants.
DILUTION TO THRESHOLD (D/T) – The dilution at which the majority of people detect the odor becomes the D/T for that air sample.
GREENHOUSE GASES (GHG) – In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming (“greenhouse effect”).
GROUNDWATER REPLENISHMENT SYSTEM (GWRS) – A joint water reclamation project that proactively responds to Southern California’s current and future water needs. This joint project between the Orange County Water District and OCSD provides 70
million gallons per day of drinking quality water to replenish the local groundwater supply.
LEVEL OF SERVICE (LOS) – Goals to support environmental and public expectations for performance.
N-NITROSODIMETHYLAMINE (NDMA) – A N-nitrosamine suspected cancer-causing agent. It has been found in the GWRS
process and is eliminated using hydrogen peroxide with extra ultra-violet treatment.
NATIONAL BIOSOLIDS PARTNERSHIP (NBP) – An alliance of the NACWA and WEF, with advisory support from the EPA. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance.
PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS) – A large group (over 6,000) of human-made compounds that are resistant to heat, water, and oil and used for a variety of applications including firefighting foam, stain and water-resistant clothing, cosmetics, and food packaging. Two PFAS compounds, perfluorooctanesulfonic acid (PFOS) and perfluorooctanoic acid (PFOA) have been the focus of increasing regulatory scrutiny in drinking water and may result in adverse health effects including developmental effects to fetuses during pregnancy, cancer, liver damage, immunosuppression, thyroid effects, and other effects.
PERFLUOROOCTANOIC ACID (PFOA) – An ingredient for several industrial applications including carpeting, upholstery, apparel, floor wax, textiles, sealants, food packaging, and cookware (Teflon).
PERFLUOROOCTANESULFONIC ACID (PFOS) – A key ingredient in Scotchgard, a fabric protector made by 3M, and used in numerous stain repellents.
PLUME – A visible or measurable concentration of discharge from a stationary source or fixed facility.
PUBLICLY OWNED TREATMENT WORKS (POTW) – A municipal wastewater treatment plant.
SANTA ANA RIVER INTERCEPTOR (SARI) LINE – A regional brine line designed to convey 30 million gallons per day of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment.
SANITARY SEWER – Separate sewer systems specifically for the carrying of domestic and industrial wastewater.
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD) – Regional regulatory agency that develops plans and
regulations designed to achieve public health standards by reducing emissions from business and industry.
SECONDARY TREATMENT – Biological wastewater treatment, particularly the activated sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater.
SLUDGE – Untreated solid material created by the treatment of wastewater.
TOTAL SUSPENDED SOLIDS (TSS) – The amount of solids floating and in suspension in wastewater.
ORANGE COUNTY SANITATION DISTRICT
GLOSSARY OF TERMS
TRICKLING FILTER – A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them.
URBAN RUNOFF – Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans.
WASTEWATER – Any water that enters the sanitary sewer.
WATERSHED – A land area from which water drains to a particular water body. OCSD’s service area is in the Santa Ana River Watershed.