HomeMy WebLinkAbout12-14-2022 Administration Committee Meeting Complete Agenda PacketC)C6SAN
ORANGE COUNTY SANITATION DISTRICT
ORANGE COUNTY SANITATION DISTRICT
SPECIAL NOTICE REGARDING CORONAVIRUS (COVID-19)
AND ATTENDANCE AT PUBLIC MEETINGS
Governor Newsom signed Assembly Bill (AB) 361 on September 16, 2021, which, in part,
addresses the conduct of public meetings in light of the continued State of Emergency
order.
Effective October 1, 2021, AB 361 suspends the requirements located in California
Government Code, Section 54953, Subdivision (b), Paragraph (3) specifically pertaining
to the conduct of public meetings. As such, the Orange County Sanitation District (OC
San) Board of Directors has determined that due to the size of OC San'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. OC San offers several ways in which to interact
during meetings. You will find information as to these opportunities below.
ONLINE MEETING PARTICIPATION
You may join the meeting live via Teams on your computer or similar device or web
browser by using the link below:
Click here to join the meeting
We suggest testing joining a Teams meeting on your device prior to the commencement
of the meeting. For recommendations, general guidance on using Teams, and
instructions on joining a Teams meeting, please click here.
Please mute yourself upon entry to the meeting. Please raise your hand if you wish to
speak during the public comment section of the meeting. The Clerk of the Board will call
upon you by using the name you joined with.
Meeting attendees are not provided the ability to make a presentation during the meeting.
Please contact the Clerk of the Board at least 48 hours prior to the meeting if you wish to
present any items. Additionally, camera feeds may be controlled by the meeting
moderator to avoid inappropriate content.
HOW TO PARTICIPATE IN THE MEETING BY TELEPHONE
To join the meeting from your phone: Dial (213) 279-1455
When prompted, enter the Phone Conference ID: 731 390 350#
All meeting participants may be muted during the meeting to alleviate background noise.
If you are muted, please use *6 to unmute. You may also mute yourself on your device.
Please raise your hand to speak by using *5 during the public comment section of the
meeting. The Clerk of the Board will call upon you by using the last 4 digits of your phone
number as identification.
NOTE: All attendees will be disconnected from the meeting at the beginning of
Closed Session. If you would like to return to the Open Session portion of the
meeting, please login or dial -in to the Teams meeting again and wait in the Lobby
for admittance.
VIEW THE MEETING ONLINE ONLY
The meeting will be available for online viewing only at:
https://ocsd.legistar.com/Calendar.aspx
HOW TO SUBMIT A COMMENT
You may provide verbal comment in real time during the meeting. In order to provide a
verbal comment, please raise your hand as described above or alert the Clerk of the Board
before or during the public comment period.
You may also submit your comments and questions in writing for consideration in advance
of the meeting by using the eComment feature available online at:
https://ocsd.legistar.com/Calendar.aspx or sending them to OCSanClerk(o)_ocsan.gov with
the subject line "PUBLIC COMMENT ITEM # (insert the item number relevant to your
comment)" or "PUBLIC COMMENT NON -AGENDA ITEM".
You may also submit comments and questions for consideration during the meeting by
using the eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx.
The eComment feature will be available for the duration of the meeting.
All written public comments will be provided to the legislative body and may be read into
the record or compiled as part of the record.
TECHNICAL SUPPORT PRIOR TO AND DURING MEETINGS
For technical assistance before and during the meeting, please call 714-593-7431. For
any other questions and/or concerns, please contact the Clerk of the Board's office at
714-593-7433. Thank you, in advance, for your patience in working with these
technologies. We appreciate your interest in OC San!
10844 Avenue
Fountainn Valley, CA 92708
OC6SAN714...2.241,
ORANGE COUNTY SANITATION DISTRICT www.ocsan_gov
December 7, 2022
NOTICE OF REGULAR MEETING
ADMINISTRATION COMMITTEE
ORANGE COUNTY SANITATION DISTRICT
Wednesday, December 14, 2022 — 5:00 P.M.
ACCESSIBILITY FOR THE GENERAL PUBLIC
Your participation is always welcome. Specific information as to how to
participate in this meeting is detailed in the Special Notice attached to
this agenda. In general, OC San offers several ways in which to interact
during meetings: you may join the meeting live via Teams on your
computer or similar device or web browser, join the meeting live via
telephone, view the meeting online, and/or submit comments for
consideration before or during the meeting.
The Regular Meeting of the Administration Committee of the Orange County
Sanitation District will be held at the above location and in the manner
indicated on Wednesday, December 14, 2022 at 5:00 p.m.
Serving:
Anaheim
Brea
Buena Park
Cypress
Fountain Valley
Fullerton
Garden Grove
Huntington Beach
Irvine
La Habra
La Palma
Los Alam itos
Newport Beach
Orange
Placentia
Santa Ana
Seal Beach
Stanton
Tustin
Villa Park
County of Orange
Costa Mesa
Sanitary District
Midway City
Sanitary District
Irvine Ranch
Water District
Yorba Linda
Water District
Our Mission. To protect public health and the environment by
providing effective wastewater collection, treatment, and recycling.
ADMINISTRATION COMMITTEE
MEETING DATE
BOARD MEETING DATE
12/14/22
12115122
JANUARY DARK
01/25/23
02/08/23
02/22/23
03/08/23
03/22/23
04/12/23
04/26/23
05/10/23
05/24/23
06/14/23
06/28/23
07/12/23
07/26/23
AUGUST DARK
08/23/23
09/13/23
09/27/23
10/11 /23
10/25/23
11 /08/23
11115123 **
* Meeting will be held on the third Thursday of the month
** 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: December 14, 2022 Time: 5:00 p.m.
Adjourn:
COMMITTEE MEMBERS (13)
Brea VACANT
Anthony Kuo, Vice -Chair
Brad Aver
Art Brown
Beach VACANT
-Huntington
Rose Espinoza
Patrick Harper
Jordan Nefulda
Andrew Nguyen
David Shawver
John Withers
Chad Wanke Board Chair
Ryan Gallagher (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
Director of Engineering
-KathyMillea,
Riaz Moinuddin, Director of Operations & Maintenance
Lan Wibor , Director of Environmental Services
Kelly Lore, Clerk of the Board
ORANGE COUNTY SANITATION DISTRICT Effective 12/07/2022
BOARD OF DIRECTORS
Complete Roster
ALTERNATE
AGENCY/CITIES ACTIVE DIRECTOR DIRECTOR
Anaheim
Stephen Faessel
VACANT
Brea
VACANT
Cecilia Hupp
Buena Park
Art Brown
Connor Traut
Cypress
Paulo Morales
Anne Hertz-Mallari
Fountain Valley
Patrick Harper
Ted Bui
Fullerton
Jesus J. Silva
Nick Dunlap
Garden Grove
Steve Jones
John O'Neill
Huntington Beach
VACANT
Dan Kalmick
Irvine
Anthony Kuo
Farrah N. Khan
La Habra
Rose Espinoza
Steve Simonian
La Palma
Marshall Goodman
Nitesh Patel
Los Alamitos
VACANT
Jordan Nefulda
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
VACANT
VACANT
Sanitary/Water Districts
Costa Mesa Sanitary District Bob Ooten
Art Perry
Midway City Sanitary District Andrew Nguyen
Mark Nguyen
Irvine Ranch Water District John Withers
Douglas Reinhart
Yorba Linda Water District Brooke Jones
Tom Lindsey
County Areas
Board of Supervisors Donald P. Wagner Doug Chaffee
OC6SAN
ORANGE COUNTY SANITATION DISTRICT
ADMINISTRATION COMMITTEE
Regular Meeting Agenda
Wednesday, December 14, 2022 - 5:00 PM
Board Room
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
ACCOMMODATIONS FOR THE DISABLED: If you require any special disability related accommodations,
please contact the Orange County Sanitation District (OC San) Clerk of the Board's office at (714) 593-7433 at
least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type
of accommodation requested.
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 OC San's Administration Building located at 10844 Ellis
Avenue, Fountain Valley, California, and on the OC San's website at www.ocsan.gov 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 at https://ocsd.legistar.com/Calendar.aspx or by contacting the Clerk of the Board at (714) 593-7433.
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@ocsan.gov at least 14
days before the meeting.
FOR ANY QUESTIONS ON THE AGENDA, BOARD MEMBERS MAY CONTACT STAFF AT:
General Manager: Jim Herberg, jherberg@ocsan.gov / (714) 593-7300
Asst. General Manager: Lorenzo Tyner, Ityner@ocsan.gov / (714) 593-7550
Asst. General Manager: Rob Thompson, rthompson@ocsan.gov / (714) 593-7310
Director of Human Resources: Celia Chandler, cchandler@ocsan.gov / (714) 593-7202
Director of Engineering: Kathy Millea, kmillea@ocsan.gov / (714) 593-7365
Director of Environmental Services: Lan Wiborg, Iwiborg@ocsan.gov / (714) 593-7450
Director of Operations & Maintenance: Riaz Moinuddin, rmoinuddin@ocsan.gov / (714) 593-7269
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, December 14, 2022
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL AND DECLARATION OF QUORUM:
Clerk of the Board
PUBLIC COMMENTS:
Your participation is always welcome. Specific information as to how to participate in a meeting is detailed in the
Special Notice attached to this agenda. In general, OC San offers several ways in which to interact during
meetings: you may join the meeting live via Teams on your computer or similar device or web browser, join the
meeting live via telephone, view the meeting online, and/or submit comments for consideration before or during
the meeting.
You may provide verbal comment in real time during the meeting. In order to provide a verbal comment, please
raise your hand (directions provided in the Special Notice attached to this agenda) or alert the Clerk of the Board
before or during the public comment period.
You may submit your comments and questions in writing for consideration in advance of the meeting by using the
eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx or sending them to
OCSanClerk@ocsan.gov with the subject line "PUBLIC COMMENT ITEM # (insert the item number relevant to
your comment)"or "PUBLIC COMMENT NON -AGENDA ITEM".
You may also submit comments and questions for consideration during the meeting by using the eComment
feature available online at: https://ocsd.legistar.com/Ca/endar.aspx. The eComment feature will be available for
the duration of the meeting.
All written public comments will be provided to the legislative body and may be read into the record or compiled as
part of the record.
REPORTS:
The 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.
APPROVAL OF MINUTES
RECOMMENDATION:
2022-2645
Approve Minutes of the Regular Meeting of the Administration Committee held
November 9, 2022.
Originator: Kelly Lore
Page 1 of 6
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, December 14, 2022
2
93
Attachments: Agenda Report
11-09-2022 Administration Committee Minutes
INVEST AND/OR REINVEST ORANGE COUNTY SANITATION 2022-2389
DISTRICT'S FUNDS AND ADOPT INVESTMENT POLICY STATEMENT
RECOMMENDATION: Recommend to the Board of Directors to:
Adopt Resolution No. OC SAN 22-36, entitled: "A Resolution of the Board of Directors
of the Orange County Sanitation District Authorizing the Orange County Sanitation
District's Treasurer to Invest and/or Reinvest the Orange County Sanitation District's
Funds, Adopting the Orange County Sanitation District's Investment Policy Statement
and Performance Benchmarks, and Repealing Resolution No. OC SAN 21-22".
Originator: Lorenzo Tyner
Attachments: Agenda Report
OC San Calendar Year 2022 Investment Policy Statement
Redline
OC San Calendar Year 2023 Investment Policv Statement
Clean
Proposed Resolution No. OC SAN 22-36
MOVE MANAGEMENT CONSULTING SERVICES
RECOMMENDATION:
2022-2585
A. Approve a Professional Consultant Services Agreement to CBRE, Inc. to provide
Move Management Consulting Services, Specification No. CS-2022-1336, for a
total amount not to exceed $108,390; and
B. Approve a contingency of $10,839 (10%).
Originator: Kathy Millea
Attachments: Agenda Report
CS-2022-1336 PCSA
4. MANAGED COPY CENTER SERVICES CHANGE ORDER 2022-2651
RECOMMENDATION:
A. Approve a Change Order to add $25,000 to Purchase Order 107521-OB for
ARC Document Solutions to provide copy center services in accordance with the
scope of work and terms and conditions of Specification No. S-2020-1177BD,
for a new total amount not to exceed $115,000 for the current contract year
(January 1, 2022-December 31, 2022); and
Page 2 of 6
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, December 14, 2022
B. Approve three optional one-year renewals for a total amount not to exceed
$115,000 per year.
Originator: Lorenzo Tyner
Attachments: Agenda Report
5. CONTRACTING AQUATIC BIOASSAY & CONSULTING 2022-2655
LABORATORIES, INC. FOR TAXONOMIC SERVICES
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve a General Services Contract to Aquatic Bioassay & Consulting
Laboratories, Inc. to provide services for sample processing and taxonomic
identification of ocean bottom -dwelling animals as required by Orange County
Sanitation District's NPDES ocean discharge permit, Specification No.
S-2022-1366BD, for a total amount not to exceed $200,000 for the period
beginning March 1, 2023, through February 29, 2024, with four (4) one-year
renewal options; and
B. Approve an annual contingency of $20,000 (10%).
Originator: Lan Wiborg
Attachments: Agenda Report
S-2022-1366BD General Services Contract
NON -CONSENT:
6. INTERNET FIREWALL UPGRADE
2022-2648
RECOMMENDATION: Recommend to the Board of Directors to:
A. Receive and file bid tabulation for Fortigate Firewall Upgrade, Specification No.
E-2022-1363BD;
B. Receive and file first Notice of Intent to Award dated October 13, 2022;
C. Receive and file protest letter received from NH&A, LLC dated October 13, 2022
concerning the award to Xpert Solutions, Inc.;
D. Receive and file second Notice of Intent to Award dated October 14, 2022;
E. Receive and file second protest letter received from Xpert Solutions, Inc. dated
October 18, 2022 concerning the award to NH&A, LLC;
F. Receive and file Orange County Sanitation District's Protest Response Letter
dated October 31, 2022;
Page 3 of 6
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, December 14, 2022
7
G. Approve a Purchase Order Contract to NH&A, LLC for the purchase of Fortigate
Firewall Upgrade, Specification No. E-2022-1363BD, for a total amount not to
exceed $226,698 plus applicable sales tax;
H. Approve four (4) optional one-year renewals for maintenance and support for an
annual amount not to exceed $80,458 plus applicable sales tax; and
Approve a contingency of $22,670 (10%) for the purchase upgrades and
subsequent renewals.
Originator:
Attachments:
Lorenzo Tyner
Agenda Report
Bid Tabulation
Notice of Intent to Award 10-13-2022
Award Protest Request - NH&A 10-13-2022
Revised Notice of Intent to Award 10-14-2022
Opposition and Protest to Bid Award 10-18-2022
OC San Protest Response - E-2022-1363BD 10-31-2022
NEW HEADQUARTERS AND INDUSTRIAL CONTROL SYSTEM 2022-2637
NETWORK EQUIPMENT
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve a Purchase Order to ePlus Technology, Inc. for the purchase of
information technology hardware (New Headquarters & Industrial Control
System Network Equipment), Specification No. E-2022-136013D, for a total
amount not to exceed $428,865, plus applicable sales tax and shipping; and
B. Approve a contingency in the amount of $42,886 (10%).
Originator: Lorenzo Tyner
Attachments: Agenda Report
ORANGE COUNTY SANITATION DISTRICT WASTEWATER REVENUE 2022-2411
PROGRAM RATE STUDY
RECOMMENDATION: Recommend to the Board of Directors to:
Receive and file the Orange County Sanitation District's 2022 Wastewater Rates, Fees,
and Charges Study completed by HDR Engineering, Inc.
Originator: Lorenzo Tyner
Attachments: Agenda Report
2022 OC San Rate Studv (Draft
Presentation - Rate Proaram Summa
Page 4 of 6
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, December 14, 2022
0
10.
PROPOSITION 218 NOTIFICATIONS
RECOMMENDATION: Recommend to the Board of Directors to:
2022-2412
A. Direct staff to prepare and mail Proposition 218 compliant notifications to
affected property owners outlining a five-year regional sewer service fee
schedule with annual increases of approximately 3.5 percent for fiscal years
2023-24 through 2027-28; and
B. Authorize the General Manager to select a service provider for preparing,
printing, and mailing the Proposition 218 compliant notifications and execute a
Purchase Order for an amount not to exceed $370,000.
Originator: Lorenzo Tyner
Attachments: Agenda Report
DENALI WATER SOLUTIONS, LLC BIOSOLIDS HAULING SERVICES - 2022-2657
SPECIFICATION NO. S-2020-1208BD - CONTINGENCY INCREASE
RECOMMENDATION: Recommend to the Board of Directors to:
Approve an additional 10% unit price per ton contingency (for a total of 20% unit price
per ton contingency) for Denali Water Solutions, LLC Biosolids Hauling Services
Specification No. S-2020-1208BD contract renewal to collect and haul Orange County
Sanitation District's biosolids to the Inland Empire Regional Composting Facility and
alternative sites for the period between January 1, 2023 through December 31, 2023.
Originator:
Attachments
INFORMATION ITEMS:
None.
Lan Wiborg
Agenda Report
Presentation - Denali Contingency Increase
DEPARTMENT HEAD REPORTS:
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF
ANY:
Page 5 of 6
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, December 14, 2022
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:
Adjourn the meeting until the Regular Meeting of the Administration Committee on February 8,
2023 at 5:00 p.m.
Page 6 of 6
Administration Building
ADMINISTRATION COMMITTEE 10844 Ellis Avenue
SAIV Fountain Valley, CA 92708
(714) 593 7433
ORANGE COUNTY SANITATION DISTRICT
Agenda Report
File #: 2022-2645 Agenda Date: 12/14/2022 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 November 9, 2022.
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.
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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 November 9, 2022
Orange County Sanitation District Page 1 of 1 Printed on 12/5/2022
powered by LegistarTIM
Orange County Sanitation District Wednesday, November 9, 2022
Minutes for the 5:00 PM
ADMINISTRATION COMMITTEE Board Room
OC6SAN Administration Building
ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
CALL TO ORDER
A regular meeting of the Administration Committee of the Orange County Sanitation District
was called to order by Committee Chair Glenn Parker on Wednesday, November 9, 2022 at
5:00 p.m. in the Administration Building of the Orange County Sanitation District. Chair Parker
stated that the meeting was being held telephonically and via Internet accessibility. Chair
Parker led the flag salute.
ROLL CALL AND DECLARATION OF QUORUM:
The Clerk of the Board declared a quorum present as follows:
PRESENT: Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Ryan Gallagher,
Patrick Harper, Jordan Nefulda (Alternate), David Shawver, Andrew
Nguyen, Chad Wanke and John Withers
ABSENT: Brad Avery and Rose Espinoza
STAFF PRESENT: Kelly Lore, Clerk of the Board, and Brian Engeln 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;
Kathy Millea, Director of Engineering; Riaz Moinuddin, Director of Operations and
Maintenance; Lan Wiborg, Director of Environmental Services; Mo Abiodun; Randa Abu
Shaban; Janine Aguilar; Jennifer Cabral; Kim Cardenas; Tina Knapp; Laura Maravilla; Tom
Meregillano; Rob Michaels; Wally Ritchie; Thomas Vu; and Ruth Zintzun were in attendance
telephonically.
OTHERS PRESENT: Brad Hogin, General Counsel, and Jennifer Farr, Partner at Davis Farr
LLP, were in attendance virtually.
PUBLIC COMMENTS:
rem
REPORTS:
Chair Parker did not provide a report.
General Manager Jim Herberg reminded the Committee of the upcoming Special Board
Meeting - State of OC San on November 15, 2022 at 9:00 a.m.; Regular meeting of the
Board on November 16, 2022; and the upcoming administrative offices holiday closures on
November 11, 24, 25 and December 23 and 26.
Page 1 of 7
ADMINISTRATION Minutes November 9, 2022
COMMITTEE
Assistant General Manager Lorenzo Tyner reported that information regarding the upcoming
rate study would be presented as an informational item at the Steering Committee meeting in
November; and the final rate study would be presented to the Administration Committee and
the Board of Directors meetings in December for approval.
CONSENT CALENDAR:
1. APPROVAL OF MINUTES 2022-2584
Originator: Kelly Lore
MOVED, SECONDED, AND DULY CARRIED TO:
Approve Minutes of the Regular Meeting of the Administration Committee held October
12, 2022.
AYES: Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Ryan Gallagher,
Patrick Harper, Jordan Nefulda (Alternate), David Shawver, Andrew
Nguyen, Chad Wanke and John Withers
NOES: None
ABSENT: Brad Avery and Rose Espinoza
ABSTENTIONS: None
2. CONSOLIDATED FINANCIAL REPORT FOR THE FIRST QUARTER 2022-2386
ENDED SEPTEMBER 30, 2022
Originator: Lorenzo Tyner
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to:
Receive and file the Orange County Sanitation District First Quarter Financial Report
for the period ended September 30, 2022.
AYES: Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Ryan Gallagher,
Patrick Harper, Jordan Nefulda (Alternate), David Shawver, Andrew
Nguyen, Chad Wanke and John Withers
NOES: None
ABSENT: Brad Avery and Rose Espinoza
ABSTENTIONS: None
Page 2 of 7
ADMINISTRATION Minutes November 9, 2022
COMMITTEE
3. SERVICENOW IT SERVICE MANAGEMENT LICENSE RENEWAL 2022-2590
Originator: Lorenzo Tyner
MOVED, SECONDED, AND DULY CARRIED TO:
A. Approve a Purchase Order to Insight Public Sector for the purchase of
ServiceNow License Renewal using the OMNIA Partners Public Sector (formerly
U.S. Communities) cooperative contract #4400006644 for a one-year contract
for the period of December 30, 2022 through December 29, 2023 for a total
amount not to exceed $112,408, plus tax and delivery (if applicable); and
B. Approve a contingency of $11,241 (10%).
AYES: Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Ryan Gallagher,
Patrick Harper, Jordan Nefulda (Alternate), David Shawver, Andrew
Nguyen, Chad Wanke and John Withers
NOES: None
ABSENT: Brad Avery and Rose Espinoza
ABSTENTIONS: None
4. GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS 2022-2595
TO THE PRE -APPROVED OEM SOLE SOURCE LIST
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 July 1, 2022 to September 30,
2022; and
B. Approve the following additions to the pre -approved OEM Sole Source List:
• BEAMEX - Maintenance and Support for CMX Calibration Software and CMX
Business Bridge Software
• FORD HALL COMPANY INC. - Weir Wolf/Algae Sweep Automation
Cleaning Equipment Parts and Service
• MIDWAY MANUFACTURING & MACHINE - Custom Brackets & Fittings for
Vehicles / Electric Carts and Portable Equipment
• VAPEX ENVIRONMENTAL TECHNOLOGIES - SENTINEL Scrubber
Monitor/Controller Products
AYES: Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Ryan Gallagher,
Patrick Harper, Jordan Nefulda (Alternate), David Shawver, Andrew
Nguyen, Chad Wanke and John Withers
Page 3 of 7
ADMINISTRATION Minutes
COMMITTEE
NOES: None
ABSENT: Brad Avery and Rose Espinoza
ABSTENTIONS: None
NON -CONSENT:
5. COOPERATIVE PROCUREMENT AGREEMENTS
Originator: Lorenzo Tyner
November 9, 2022
2022-2582
Mr. Tyner provided a verbal presentation of the item and responded to questions from
the Committee regarding the cooperative procurement process including the
competitive bidding and approval at the State level; and no obligation to purchase
through the process.
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to:
Authorize the purchasing of information technology products, services, and solutions
utilizing Cooperative Procurement Agreements (CPA) such as, but not limited to,
OMNIA Partners Public Sector (formerly U.S. Communities), NASPO ValuePoint, and
U.S. General Services Administration GSA Schedule 70/ GSA Multiple Award
Schedule (MAS) for the period January 1, 2023 through December 31, 2023 for a total
amount not to exceed $2,000,000, in accordance with Ordinance No. OCSD-56,
Section 2.03(B) Cooperative Purchases, with two (2) one-year renewal options.
AYES: Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Ryan Gallagher,
Patrick Harper, Jordan Nefulda (Alternate), David Shawver, Andrew
Nguyen, Chad Wanke and John Withers
NOES: None
ABSENT: Brad Avery and Rose Espinoza
ABSTENTIONS: None
6. EMISSION REDUCTION CREDITS BROKER SOLICITATION 2022-2587
Originator: Lan Wiborg
Director of Environmental Services Lan Wiborg provided a PowerPoint presentation
including a brief overview of emission reduction credits, priority reserve bank, and
reactive organic gases surplus.
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to:
Page 4 of 7
ADMINISTRATION Minutes November 9, 2022
COMMITTEE
Approve the solicitation for an Emission Reduction Credits (ERCs) brokerage firm to
identify and secure a buyer(s) for the sale of surplus Reactive Organic Gases (ROG)
ERCs at the best available value and to handle all market evaluations of ERCs,
negotiations, and financial transactions with all appropriate parties.
AYES: Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Ryan Gallagher,
Patrick Harper, Jordan Nefulda (Alternate), David Shawver, Andrew
Nguyen, Chad Wanke and John Withers
NOES: None
ABSENT: Brad Avery and Rose Espinoza
ABSTENTIONS: None
7. ORANGE COUNTY SANITATION DISTRICT ANNUAL 2022-2387
COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR END JUNE
30, 2022
Originator: Lorenzo Tyner
OC San Accounting Supervisor Kim Cardenas provided a PowerPoint presentation
including an overview of the Annual Comprehensive Financial report (ACFR), OC San's
financial net position including increases and historical position, financial performance,
capital improvement outlays, and available resources. Jennifer Farr, of Davis Farr,
provided a PowerPoint presentation of the OC San audit including: the positive audit
results of the ACFR, noting the approach taken and upcoming changes in audit
standards.
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to:
Receive and file the Orange County Sanitation District's (OC San) Annual
Comprehensive Financial Report (ACFR) for the year ended June 30, 2022, prepared
by staff and audited by Davis Farr, Certified Public Accountants, along with the
following reports prepared by Davis Farr:
1. Report to the Board of Directors;
2. Independent Accountants' Report on Agreed -Upon Procedures Applied to
Appropriations Limit Worksheets; and
3. Report on Internal Control Over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance
With Government Auditing Standards.
AYES: Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Ryan Gallagher,
Patrick Harper, Jordan Nefulda (Alternate), David Shawver, Andrew
Nguyen, Chad Wanke and John Withers
NOES: None
ABSENT: Brad Avery and Rose Espinoza
ABSTENTIONS: None
Page 5 of 7
ADMINISTRATION Minutes November 9, 2022
COMMITTEE
INFORMATION ITEMS:
8. HUMAN RESOURCES DEPARTMENT OVERVIEW
Originator: Celia Chandler
2022-2606
Director of Human Resources Celia Chandler introduced HR and Risk Manager Laura
Maravilla who provided a PowerPoint presentation that gave an overview of the Human
Resources Department including Employee and Labor Relations, HR Operations, and
Risk Management.
ITEM RECEIVED AS AN:
Information Item.
DEPARTMENT HEAD REPORTS:
Director of Operations and Maintenance Riaz Moinuddin provided an update on the recent
Newport Beach spill near the Lido Pump Station. He stated that an additional update would
be provided at the December Operations Committee meeting.
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF
ANY:
None.
BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING:
None.
ADJOURNMENT:
Prior to adjournment, Chair Parker stated this would be his last meeting serving as
Administration Committee Chairman as he did not seek reelection. He thanked everyone for
their support.
Chair Parker declared the meeting adjourned at 6:08 p.m. to the next Regular Administration
Committee meeting to be held on Wednesday, December 14, 2022 at 5:00 p.m.
Page 6 of 7
ADMINISTRATION Minutes November 9, 2022
COMMITTEE
Submitted by:
Kelly A. Lore, MMC
Clerk of the Board
Page 7 of 7
Administration Building
ADMINISTRATION COMMITTEE 10844 Ellis Avenue
SAN Fountain Valley, CA 92708
(714) 593 7433
ORANGE COUNTY SANITATION DISTRICT
Agenda Report
File #: 2022-2389 Agenda Date: 12/14/2022 Agenda Item No: 2.
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
INVEST AND/OR REINVEST ORANGE COUNTY SANITATION DISTRICT'S FUNDS AND ADOPT
INVESTMENT POLICY STATEMENT
GENERAL MANAGER'S RECOMMENDATION
IV:tole] 1TAIf•1a101�7_,11[61,01M - • i 0FIrmi3.10 i1 ona91 Rag re= on
Adopt Resolution No. OC SAN 22-36, entitled: "A Resolution of the Board of Directors of the Orange
County Sanitation District Authorizing the Orange County Sanitation District's Treasurer to Invest
and/or Reinvest the Orange County Sanitation District's Funds, Adopting the Orange County
Sanitation District's Investment Policy Statement and Performance Benchmarks, and Repealing
Resolution No. OC SAN 21-22".
1 :(r]:19111ZI III]
As there were no significant changes in State law governing the Orange County Sanitation District's
(OC San) investments, this agenda item presents updates to the OC San Investment Policy
Statement for consideration by the Administration Committee as it is the oversight committee for the
Investment Policy (Section 18.2). The Investment Policy reflects minor changes which include minor
formatting and grammatical corrections. With adoption of the Resolution, the Board of Directors
would readopt OC San's Investment Policy Statement, portfolio performance benchmarks, and
monitoring and reporting requirements for calendar year 2023.
RELEVANT STANDARDS
• Comply with OC San Policy: OC San Investment Policy
• Comply with Government Code Sections 53607 & 53646
PROBLEM
Government Code §53607 allows for the Board of Directors to delegate authority to invest and/or
reinvest OC San's funds to the Treasurer for a one-year period. Government Code §53646 requires
OC San to review its Investment Policy annually and readopt its Policy at a public meeting, which will
establish specific performance benchmarks and objectives, and specific monitoring and reports.
Pursuant to Government Code §53646, OC San's Investment Policy must be reviewed and
readopted prior to December 31, 2022.
Orange County Sanitation District Page 1 of 3 Printed on 12/5/2022
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File #: 2022-2389 Agenda Date: 12/14/2022 Agenda Item No: 2.
PROPOSED SOLUTION
With adoption of the proposed Resolution, the Board of Directors would renew its delegation of
investment authority to the Assistant General Manager & Director of Finance and Administrative
Services/Treasurer for a one-year period, January 1, 2023 to December 31, 2023, in compliance with
the requirements of Government Code §53607. Each year, the Board of Directors will consider
similar actions, along with the annual reconsideration of OC San's Investment Policy.
TIMING CONCERNS
The Board of Directors delegation of authority to the Assistant General Manager & Director of
Finance and Administrative Services/Treasurer to invest and/or reinvest OC San's funds will expire
on December 31, 2022.
RAMIFICATIONS OF NOT TAKING ACTION
OC San's Assistant General Manager & Director of Finance and Administrative Services/Treasurer
will not have the authority to invest and/or reinvest OC San's funds and OC San will not be in
compliance with Government Code §53646.
PRIOR COMMITTEE/BOARD ACTIONS
December 2021 - Board adopted Resolution No. OC SAN 21-22, entitled: "A Resolution of the Board
of Directors of the Orange County Sanitation District, Authorizing the Orange County Sanitation
District's Treasurer to Invest and/or Reinvest the Orange County Sanitation District's Funds, Adopting
the Orange County Sanitation District's Investment Policy Statement and Performance Benchmarks,
and Repealing Resolution No. OCSD 20-13".
ADDITIONAL INFORMATION
OC San's Investment Policy Statement is a comprehensive document describing the policy,
authorizations, benchmarks, delegations, and investment limitations. The Investment Policy will
govern the investment activities of Chandler Asset Management, OC San's external money manager,
on behalf of OC San.
Annual Review of Investment Policy
The Investment Policy includes the requirement that OC San shall review its Investment Policy
annually (Sections 1.2 and 18.1). Chandler Asset Management reviewed the existing policy to
ensure that the language remains current with the Government Code. The proposed Investment
Policy is attached with redlined changes from the most recent approved policy in December 2021.
Annual Deleaation of Investment Autho
Effective January 1, 1997, Government Code §53607 states that governing boards of local agencies
may only delegate authority to invest and/or reinvest agency funds to the agency's Treasurer for a
one-year period.
Orange County Sanitation District Page 2 of 3 Printed on 12/5/2022
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File #: 2022-2389
Agenda Date: 12/14/2022 Agenda Item No: 2.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda
package:
• Orange County Sanitation District Calendar Year 2022 Investment Policy Statement (Redline)
• Orange County Sanitation District Calendar Year 2023 Investment Policy Statement (Clean)
Proposed Resolution No. OC SAN 22-36
Orange County Sanitation District Page 3 of 3 Printed on 12/5/2022
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ORANGE COUNTY SANITATION DISTRICT
INVESTMENT POLICY STATEMENT
1.0 Policy:
It is the policy of the Orange County Sanitation District (OC San) to invest public funds in
a manner which ensures the safety and preservation of capital while meeting reasonably
anticipated operating expenditure needs, achieving a reasonable rate of return and
conforming to all state and local statutes governing the investment of public funds.
1.1. This Investment Policy is set forth by OC San for the following purposes:
1.1.1. To establish a clear understanding for the Board of Directors,
OC San management, responsible employees and third parties of the
objectives, policies and guidelines for the investment of OC San's idle and
surplus funds.
1.1.2. To offer guidance to investment staff and any external
investment advisors on the investment of OC San funds.
1.1.3. To establish a basis for evaluating investment results.
1.2. OC San establishes investment policies which meet its current investment
goals. OC San shall review this policy annually and may change its policies
as its investment objectives change.
2.0 Scope:
This Investment Policy applies to all financial assets of OC San; except for the proceeds
of OC San's capital projects financing program, which are invested in accordance with
provisions of their specific bond indentures; and such other funds excluded by law or
other Board -approved covenant or agreement.
These funds are accounted for by OC San as Enterprise Funds as represented in OC
San's Annual Comprehensive Financial Report.
3.0 Standard of Prudence:
The standard of prudence to be used by OC San internal staff, and any authorized
investment advisor(s), shall be as described in Section 53600.3 of the California
Government Code as follows: Except as provided in subdivision (a) of Section 27000.3,
all governing bodies of local agencies or persons authorized to make investment
decisions on behalf of those local agencies investing public funds pursuant to this chapter
are trustees and therefore fiduciaries subject to the prudent investor standard. When
investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public
funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances
then prevailing, including, but not limited to, the general economic conditions and the
anticipated needs of the agency, that a prudent person acting in a like capacity and
Page 1
familiarity with those matters would use in the conduct of funds of a like character and
with like aims, to safeguard the principal and maintain the liquidity needs of the agency.
Within the limitations of this section and considering individual investments as part of an
overall strategy, investments may be acquired as authorized by law.
4.0 Investment Objectives:
The primary objectives of OC San's investment activities, in priority order, and as
described in Section 53600.5 of the California Government Code, shall be:
4.1 Safety: The safety and preservation of principal is the foremost objective of
the investment program of OC San. Investments shall be selected in a
manner that seeks to ensure the preservation of capital in OC San's overall
portfolio. This will be accomplished through a program of diversification,
more fully described in Section 13.0, and maturity limitations, more fully
described in Section 14.0, in order that potential losses on individual
securities do not exceed the income generated from the remainder of the
portfolio.
4.2 Liquidity: The investment program will be administered in a manner that
will ensure that sufficient funds are available for OC San to meet its
reasonably anticipated operating expenditure needs.
4.3 Return on Investments: The OC San investment portfolio will be
structured and managed with the objective of achieving a market rate of
return throughout budgetary and economic cycles, commensurate with
legal, safety and liquidity considerations.
5.0 Delegation of Authority:
5.1 Authority to manage OC San's investment program is derived from the
California Government Code Sections 53600 et seq. and Sections 53635 et
seq. The Board of Directors hereby delegates management responsibility
for OC San's investment program to its Assistant General Manager &
Director of Finance and Administrative Services/Treasurer, who shall
establish written procedures for the operation of the investment program,
consistent with this pPolicy. The Controller/Assistant Treasurer shall be
responsible for day-to-day administration, monitoring; and the development
of written administrative procedures for the operation of the investment
program, consistent with this pPolicy. No person may engage in an
investment transaction except as provided under the terms of this pPolicy
and the procedures established by the Treasurer. The Treasurer shall be
responsible for all transactions undertaken by OC San internal staff and
shall establish a system of controls to regulate the activities of internal staff
and external investment advisors engaged in accordance with Section 5.3.
5.2 The administrative procedures for the operation of OC San's investment
program will provide for, but not be limited to, the following:
Page 2
5.2.1 Formats for monthly and quarterly reports to the Administration
Committee and the Board of Directors.
5.2.2 Compliance with generally accepted accounting principles of the
Government Accounting Standards Board.
5.2.3 Establishment of benchmarks for performance measurement.
5.2.4 Establishment of a system of written internal controls.
5.2.5 Establishment of written procedures for competitive bids and
offerings of securities that may be purchased or sold by internal OC San
staff.
5.2.6 Establishment of a Desk Procedures Manual for treasury
operations and management.
5.3 The Board of Directors may, in its discretion, engage the services of one or
more registered investment advisors to assist in the management of OC
San's investment portfolio in a manner consistent with OC San's objectives.
Such external investment advisors, which shall be selected through a
competitive process, shall be granted discretion to purchase and sell
investment securities in accordance with this Investment Policy. Such
advisors must be registered under the Investment Advisers Act of 1940 or
be exempt from such registration.
6.0 Ethics and Conflicts of Interest:
Officers and employees of OC San involved in the investment process shall refrain from
personal business activities that could conflict with proper execution of OC San's
investment program, or which could impair their ability to make impartial investment
decisions. Employees and investment officials shall disclose to the General Manager any
material financial interests in financial institutions that conduct business within OC San's
boundaries, and they shall further disclose any large personal financial/investment
positions, the performance of which could be related to the performance of positions in
OC San's portfolio.
7.0 Authorized Financial Dealers and Institutions:
7.1 For investment transactions conducted by OC San internal staff, the
Treasurer will maintain a list of financial institutions authorized to provide
investment services to OC San, including "primary" or regional dealers that
qualify under Securities and Exchange Commission Rule 15C3-1 (Uniform
Net Capital rule) and Federal or State of California chartered banks. No
public deposit shall be made except in a qualified public depository as
established by State law.
Page 3
All financial institutions which desire to become qualified bidders for
investment transactions with OC San must supply the following for
evaluation by the Treasurer:
7.1.1. Audited financial statements for the institution's threes most
recent fiscal years.
7.1.2. A statement, in the format prescribed by the Government
Finance Officers Association (GFOA), certifying that the institution has
reviewed OC San's Investment Policy and that all securities offered to OC
San shall comply fully and in every instance with all provisions of the
California Government Code and with this Investment Policy. The current
statement is presented in Appendix "A."
7.1.3. A statement describing the regulatory status of the dealer, and
the background and expertise of the dealer's representatives.
Selection of financial institutions, broker/dealers and banks authorized to
engage in transactions with OC San shall be made through a competitive
process. An annual review of the financial condition of qualified institutions
will be conducted by the Treasurer.
7.2 Selection of broker/dealers used by external investment advisors retained
by OC San, shall be in compliance with contract provisions between OC
San and any external investment advisors and shall be in substantially the
following form:
Use of Securities Brokers: Neither the Investment Advisor nor any parent,
subsidiary or related firm shall act as a securities broker with respect to any
purchases or sales of securities which may be made on behalf of OC San,
provided that this limitation shall not prevent the Investment Advisor from
utilizing the services of a securities broker which is a parent, subsidiary or
related firm, provided such broker effects transactions on a "cost only" or
"nonprofit" basis to itself and provides competitive execution. The
Investment Advisor shall provide OC San with a list of suitable independent
brokerage firms (including names and addresses) meeting the
requirements of Government Code Section 53601.5, and, unless otherwise
directed by OC San, the Investment Advisor may utilize the service of any
of such independent securities brokerage firms it deems appropriate to the
extent that such firms are competitive with respect to price of services and
execution.
8.0 Authorized and Suitable Investments:
All investments shall be made in accordance with the California Government Code
including Sections 16429.1 et seq., 53600 et seq.; and 53684, and as described within
this Investment Policy. Permitted investments under this pPolicy shall include:
Page 4
8.1 Securities, obligations, participations, or other instruments of, or
issued by, or fully guaranteed as to principal and interest by the US
Government, a federal agency, or a US Government -sponsored enterprise
pursuant to Section 53601 (f) of the California Government Code. US
Treasury securities must make up at least 10% of the portfolio.
8.2 Supranational Obligations issued or unconditionally guaranteed by the
International Bank for Reconstruction and Development, International
Finance Corporation, or Inter -American Development Bank. Securities must
be eligible for purchase in the United States and be U S dollar denominated
senior unsecured unsubordinated obligations, with a maximum maturity of
five years. Securities eligible for purchase under this section must be rated
"AX or better by a Nationally Recognized Statistical Rating Organization
(NRSRO) and shall not exceed 30% of the total portfolio.
8.3 Mortgage pass -through security, collateralized mortgage obligation,
mortgage -backed or other pay -through bond, equipment lease -backed
certificate, consumer receivable pass -through certificate, or
consumer receivable -backed bond. Securities eligible for investment
under this subdivision shall be rated in a rating category of "AA" or its
equivalent or better by an NRSRO and have a maximum remaining maturity
of five years or less. Purchase of securities authorized by this subdivision
may not exceed 20% peFGent of the agency's surplus moneys that may be
invested pursuant to this section. Purchase of mortgage derivatives, which
include interest -only payments (IOs) and principal -only payments (POs);
inverse floaters, and RE-REMICs (Real Estate Mortgage Investment
Conduits), is hereby prohibited.
8.4 Commercial paper of "prime" quality of the highest ranking or of the highest
letter and number rating as provided by an NRSRO and issued by a
domestic corporation organized and operating in the United States with
assets in excess of $500 million and having a rating of "A" or better on its
long-term debt as provided by an NRSRO. Purchases of eligible commercial
paper may not exceed 270 days to maturity from the date of purchase.
Purchases of commercial paper shall not exceed 40% of the market value
of the portfolio. No more than 5% of the market value of the portfolio, or
10% of the issuer's outstanding paper, may be invested in commercial
paper issued by any one eligible corporation.
8.5 Banker's acceptances issued by institutions, the short-term obligations of
which are rated of the highest ranking or the highest letter and number
rating as provided by an NRSRO provided that: (a) the acceptance is
eligible for purchase by the Federal Reserve System; (b) the maturity does
not exceed 180 days; (c) no more than 40% of the total portfolio may be
invested in banker's acceptances; and (d) no more than 5% of the total
portfolio may be invested in the banker's acceptances of any one
commercial bank.
Page 5
8.6 Medium term (or corporate) notes of a maximum of five {-}years maturity
issued by corporations organized and operating within the United States, or
issued by depository institutions licensed by the United States, or any state,
and operating within the United States with assets in excess of $500 million,
and which is rated in a rating category of "A" or better on its long-term debt
as provided by an NRSRO. If, after purchase, the rating of an eligible note
falls below the minimum rating category stipulated above, the external
investment advisor shall notify OC San of the downgrade and shall present
an analysis and recommendations as to the disposition of the note
consistent with the investment objectives of this Investment Policy. No more
than 30% of the portfolio may be invested in medium term notes.
8.7 Notes, bonds, or other obligations that are at all times secured by a valid
first priority security interest in securities of the types listed by California
Government Code Section 53651 as eligible securities for the purpose of
securing local agency deposits having a market value at least equal to that
required by California Government Code Section 53652 for the purpose of
securing local agency deposits. The securities serving as collateral shall be
placed by delivery or book entry into the custody of a trust company or the
trust department of a bank that is not affiliated with the issuer of the secured
obligation, and the security interest shall be perfected in accordance with
the requirements of the Uniform Commercial Code or federal regulations
applicable to the types of securities in which the security interest is granted.
8.8 Shares of mutual funds investing in securities permitted under this policy
and under Section 53601 (1) of the California Government Code. Such funds
must either: (1) attain the highest ranking, or the highest letter and
numerical rating, provided by not less than two of the three largest nationally
recognized rating services; or (2) have an Investment Advisor registered
with the Securities and Exchange Commission with not less than five)
years of experience investing in the securities and obligations authorized
under this pP-olicy and under California Government Code Section 53601
and with assets under management in excess of $500 million. The purchase
price of shares of beneficial interest purchased pursuant to this policy and
the California Government Code may not include any commission that the
companies may charge and shall not exceed 20% of OC San's surplus
money that may be invested pursuant to this section. No more than 10% of
OC San's surplus funds may be invested in shares of beneficial interest of
any ones mutual fund pursuant to this section. Money market mutual
funds are limited to 20% per issuer and are not subject to the 10%
stipulation.
8.9 Certificates of deposit:
8.9.1 Secured (collateralized) time deposits issued by a nationally or
state -chartered bank or state or federal savings and loan association, as
defined by Section 5102 of the California Financial Code, and having a net
operating profit in the twos most recently completed fiscal years.
Collateral must comply with Chapter 4, Bank Deposit Law, Section 16500
Page 6
et seq., and
Chapter 4.5, Savings and Loan Association and Credit Union Deposit Law,
Section 16600 et seq., of the California Government Code.
8.9.2 Negotiable certificates of deposit (NCDs) issued by a nationally
or state -chartered bank or state of federal savings and loan association, as
defined by Section 5102 of the California Financial Code; and which shall
have a rating of "A" or better on its long-term debt as provided by a NRSRO;
or which shall have the highest letter and number rating for deposits as
provided by a NRSRO; or as otherwise approved by the Board of Directors.
No more than 30% of the portfolio may be invested in securities pursuant to
this section.
8.9.3 To be eligible to receive local agency money, a bank, savings
association, federal association, or federally insured individual loan
company shall have received an overall rating of not less than "satisfactory"
in its most recent evaluation by the appropriate federal financial
supervisorial agency of its record of meeting the credit needs of California's
communities, including low and moderate income neighborhoods, pursuant
to Section 2906 of Title 12 of the United States Code.
8.10 Taxable or tax-exempt municipal bonds issued by any of the 50 United
States. Such securities must be rated "A" or higher by a NRSRO; or as
otherwise approved by the Board of Directors.
8.11 The State of California Local Agency Investment Fund (LAIF). LAIF is
an investment alternative for California's local governments and special
districts managed by the State Treasurer's Office. LAIF is more fully
described in the Glossary (See Appendix "C"). OC San shall use LAIF as a
short-term cash management facility. Investment of OC San funds in LAIF
shall be subject to investigation and due diligence prior to investing, and on
a continual basis to a level of review pursuant to Section 3.0, Standard of
Prudence, of this olicy.
8.12 The Orange County Treasurer's Money Market Commingled
Investment Pool (OCCIP). The OCCIP is a money market investment pool
managed by the Orange County Treasurer's Office. OCCIP is more fully
described in the Glossary (See Appendix "C"). OC San has no funds
invested in OCCIP at this time. Investment of OC San funds in OCCIP would
be subject to investigation and due diligence prior to investing, and on a
continual basis to a level of review pursuant to Section 3.0, Standard of
Prudence, of this olicy.
8.13 Repurchase agreements provided that:
8.13.1 All repurchase agreements shall be collateralized with securities
eligible for purchase under this olicy. In order to anticipate market
changes and to provide a level of security for all repurchase agreement
Page 7
transactions, collateral ization shall be maintained at a level of at least 102%
of the market
value of the repurchase agreements and shall be adjusted no less than
weekly.
8.13.2 All repurchase agreements must be the subject of a Master
Repurchase Agreement between OC San and the provider of the
repurchase agreement. The Master Repurchase Agreement shall be
substantially in the form developed by the Securities Industry and Financial
Markets Association.
8.14 Reverse repurchase agreements provided that:
8.14.1 No more than five n�P 5% of OC San's portfolio shall be
invested in reverse repurchase agreements, and there shall be no long-term
reverse repurchase agreements unless otherwise authorized by the Board
of Directors.
8.14.2 The maximum maturity of reverse repurchase agreements shall
be Ret090 days.
8.14.3 Reverse repurchase agreements shall mature on the exact date
of a known cash flow which will be unconditionally available to repay the
maturing reverse repurchase agreement.
8.14.4 Proceeds of reverse repurchase agreements shall be used
solely to supplement portfolio income or to provide portfolio liquidity and
shall not be used to speculate on market movements.
8.14.5 All reverse repurchase agreements must be the subject of a
Master Repurchase Agreement between OC San and the provider of the
reverse repurchase agreement. The Master Repurchase Agreement shall
be substantially in the form developed by the Securities Industry and
Financial Markets Association.
8.15 Public Bank Obligations of a maximum of five} years maturity which
includes commercial paper, debt securities, or other obligations of a public
bank, a public bank as defined in California Government Code Section
57600-57607.
8.16 Sales of OC San -owned securities in the secondary market may incur
losses in order to improve the risk or return characteristics of the portfolio,
to prevent anticipated further erosion of principal, or when trading for
securities that result in an expected net economic gain to OC San.
8.17 If securities owned by OC San are downgraded below the quality required
by this Investment Policy, it shall be OC San's policy to review the credit
'm
situation and make a determination as to whether to sell or retain such
securities in the portfolio. If a decision is made to retain the downgraded
securities in the portfolio, their presence in the portfolio will be monitored
and reported quarterly to the OC San General Manager, the Administration
Committee and Board of Directors.
8.18 OC San is authorized to invest in securities issued by or backed by the
United States Government that could result in zero or negative interest
accrual if held to maturity.
9.0 Review of Investment Portfolio:
The securities held by OC San must be in compliance with Section 8.0 "Authorized and
Suitable Investments" at time of purchase. If at a later date, a security is no longer in
compliance with Section 8.0, the Treasurer shall report the non -compliant security to the
Administration Committee and the Board of Directors and shall include a disclosure in the
quarterly Treasurer's Report if the security is held at the date the report is prepared.
10.0 Investment Pools/Mutual Funds:
A thorough investigation of the pool/fund is required prior to investing, and on a continual
basis. A questionnaire shall be developed that will provide the following information:
10.1 A description of eligible investment securities, and a written statement of
investment policy and objectives.
10.2 A description of interest calculations and how they are distributed, and how
gains and losses are treated.
10.3 A description of how the securities are safeguarded (including the
settlement processes) and how often the securities are priced and the
program audited.
10.4 A description of who may invest in the program, how often and what size
deposits and withdrawals are allowed.
10.5 A schedule for receiving statements and portfolio listings.
10.6 A description of the utilization and level of reserves, retained earnings or
other collateral and how they are used by the fund.
10.7 A fee schedule, and when and how is it assessed.
10.8 Whether the pool/fund is eligible for bond proceeds and/or whether it will
accept such proceeds.
11.0 Collateralization:
Page 9
Generally, the value to secure deposits under this pP-olicy shall comply with Section
53652 of the California Government Code. Collateral ization will be required for secured
time deposits, as more fully described in Section 8.9.1; and repurchase agreements, as
more fully described in Section 8.13.1. Collateral will always be held by an independent
third -party, as more fully described in Section 12.0. The right of collateral substitution is
granted. Under provisions of the California Government Code, California banks and
savings and loans associations are required to secure OC San's deposits by pledging
government securities with a value of 110% of principal and accrued interest. State law
also allows financial institutions to secure OC San's deposits by pledging first trust deed
mortgage notes having a value of 150% of OC San's total deposits.
12.0 Safekeeping and Custody:
All securities transactions, including collateral for repurchase agreements, entered into
by, or on behalf of OC San, shall be conducted on a delivery -versus -payment (DVP)
basis. Securities will be held by OC San's third -party custodian bank, which shall be
selected through a competitive process, or that agent's representative, or in the agent's
account at the Federal Reserve Bank, or within clearing corporations in the U.S.; and
evidenced by book entry statements. Third -party safekeeping arrangements will be
approved by the Treasurer and will be corroborated by a written custodial agreement.
13.0 Diversification:
OC San will diversify its investments by security type, issuer and financial institution in
accordance with the following:
13.1 There is no limit on investment in securities issued by or guaranteed by the
full faith and credit of the U.S. government.
13.2 No more than 20% of the portfolio may be invested in securities of a single
agency of the U.S. government, which does not provide the full faith and
credit of the U.S. government.
13.3 No more than 5% of the portfolio may be invested in securities of any one
issuer, other than Supranationals, the U.S. government or its agencies.
Investment in mutual funds is not governed by this Section 13.3. See
Section 13.8 for conditions of purchase of mutual funds.
13.4 No individual holding shall constitute more than 5% of the total debt
outstanding of any issuer.
13.5 No more than 40% of the portfolio may be invested in banker's acceptances.
13.6 No more than 40% of the portfolio may be invested in commercial paper.
13.7 No more than 30% of the portfolio may be invested in medium -term
(corporate) notes.
13.8 No more than 20% of the portfolio may be invested in mutual funds. No
Page 10
more than 10% of OC San's portfolio may be invested in shares of beneficial
interest of any one mutual fund. Money market mutual funds are limited
to 20% per issuer and are not subject to the 10% stipulation.
13.9 No more than 30% of the portfolio may be invested in negotiable certificates
of deposit.
13.10 No more than 10% of the portfolio may be invested in eligible municipal
bonds.
13.11 No more than 20% of the Long Term Operating Monies portfolio may be
invested in a combination of mortgage -backed securities, CMOs and asset -
backed securities.
13.12 No more than the statutory maximum may be invested in LAIF.
13.13 No more than 15% of the portfolio may be invested in the Orange County
Investment Pool.
13.14 No more than 20% of the portfolio may be invested in repurchase
agreements.
13.15 No more than 5% of the portfolio may be invested in reverse repurchase
agreements.
14.0 Maximum Maturities:
To the extent possible, OC San will attempt to match its investments with reasonably
anticipated cash flow requirements. The Treasurer shall develop a five-year cash flow
forecast, which shall be updated quarterly. Based on this forecast, the Treasurer shall
designate, from time -to -time, the amounts to be allocated to the investment portfolio. OC
San monies invested in accordance with this olicy are divided into two categories:
14.1 Liquid Operating Monies. Funds needed for current operating and capital
expenditures are known as Liquid Operating Monies.
14.1.1 The maximum final stated maturity of individual securities in the
Liquid Operating Monies account portfolio shall be one year from the
date of settlement.
14.1.2 The average duration of the Liquid Operating Monies account
portfolio shall be recommended by the Treasurer based on OC San's cash
flow requirements but may never exceed 180 days.
14.2 Long Term Operating Monies. Funds needed for longer term purposes
are known as the Long Term Operating Monies.
14.2.1 The maximum final stated maturity of individual securities in the
Long Term Operating Monies account portfolio shall be five years from
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the date of settlement.
14.2.2 The duration of the Long Term Operating Monies account
portfolio shall be recommended by the Treasurer based on OC San's five-
year cash flow forecast but may never exceed 60 months.
14.2.3 The duration of the Long Term Operating Monies account
portfolio shall never exceed 120% of the duration as established in
accordance with Section 14.2.2.
14.2.4 The duration of the Long Term Operating Monies account
portfolio shall never be less than 80% of the duration as established in
accordance with Section 14.2.2.
15.0 Internal Control:
The Treasurer shall establish an annual process of independent review by an
external auditor. This review will provide internal control by assuring compliance
with policies and procedures.
16.0 Performance Objectives and Benchmarks:
16.1 Overall objective. The investment portfolio of OC San shall be designed
with the overall objective of obtaining a rate of return throughout budgetary
and economic cycles, commensurate with investment risk constraints and
reasonably anticipated cash flow needs.
16.2 The Liquid Operating Monies. The investment performance objective for
the Liquid Operating Monies shall be to earn a total rate of return over a
market cycle which exceeds the return on a market index approved by the
Administration Committee and by the Board of Directors, when the duration
of the portfolio is established. This market index is
more fully described in Board Resolution No. OC SAN 2 -XX (see
Appendix "B").
16.3 The Long Term Operating Monies. The investment performance objective
for the Long Term Operating Monies shall be to earn a total rate of return
over a market cycle which exceeds the return on a market index selected
by the Administration Committee and approved by the Board of Directors,
when the duration of the portfolio is established. This market index is more
fully described in Board Resolution No. OC SAN 224-XX (See Appendix
"B"
17.0 Reporting:
17.1 Monthly transaction reports in accordance with California Government
Code Section 53607 shall be submitted by the Treasurer to the Board of
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Directors.
17.2 Quarterly investment reports will be submitted by the Treasurer to the
Administration Committee which shall forward the reports to the Board of
Directors. The quarterly reports shall provide clear and concise status
information on OC San's portfolios at the end of each reporting period,
including performance measures using the benchmarks described in
Section 16.0 of this Investment Policy. These reports shall contain listings
of individual securities held at the end of each reporting period, and shall
disclose, at a minimum, the following information about the risk
characteristics of OC San's portfolio:
17.2.1 Cost and accurate and complete market value of the portfolio.
17.2.2 Modified duration of the portfolio compared to Benchmark.
17.2.3 Dollar change in value of the portfolio for a one ^�-�t_(1 %4
change in interest rates.
17.2.4 Percent of portfolio invested in reverse repurchase agreements,
and a schedule which matches the maturity of such reverse repurchase
agreements with the cash flows which are available to repay them at
maturity.
17.2.5 For the Liquid Operating Monies account only, the percent of
portfolio maturing within 90 days.
17.2.6 Average portfolio credit quality.
17.2.7 Percent of portfolio with credit ratings below "A" by any rating
agency, and a description of such securities.
17.2.8 State that all investments are in compliance with this policy and
the California Government Code or provide a listing of any transactions or
holdings which do not comply with this policy or with the California
Government Code.
17.2.9 Time -weighted total rate of return for the portfolio for the prior
three months, six months, nine months, twelve months, year to dand
since inception compared to the Benchmark returns for the same periods.
17.2.10 State that sufficient funds are available for OC San to meet its
operating expenditure requirements for the next six months, or if not, state
the reasons for the shortfall.
17.3 OC San's Treasurer shall meet quarterly with the Administration Committee
to review investment performance, proposed strategies, and compliance
with this Investment Policy. External investment advisors may be required
to attend said meetings at the discretion of the Chair ep rsona of the
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Administration Committee.
18.0 Investment Policy Adoption and Revision:
18.1 The Investment Policy of OC San shall be adopted by resolution of the
Board of Directors. The Investment Policy shall be reviewed on an annual
basis in accordance with California Government Code Section 53646, by
the Administration Committee, which shall recommend revisions, as
appropriate, to the Board of Directors. Any modifications made thereto shall
be approved by the Board of Directors.
18.2 The Administration Committee shall serve as the oversight committee for
OC San's Investment program and shall adopt guidelines for the ongoing
review of duration, quality and liquidity of OC San's portfolio.
Page 14
ORANGE COUNTY SANITATION DISTRICT
INVESTMENT POLICY STATEMENT
1.0 Policy:
It is the policy of the Orange County Sanitation District (OC San) to invest public funds in
a manner which ensures the safety and preservation of capital while meeting reasonably
anticipated operating expenditure needs, achieving a reasonable rate of return and
conforming to all state and local statutes governing the investment of public funds.
1.1. This Investment Policy is set forth by OC San for the following purposes:
1.1.1. To establish a clear understanding for the Board of Directors,
OC San management, responsible employees and third parties of the
objectives, policies and guidelines for the investment of OC San's idle and
surplus funds.
1.1.2. To offer guidance to investment staff and any external
investment advisors on the investment of OC San funds.
1.1.3. To establish a basis for evaluating investment results.
1.2. OC San establishes investment policies which meet its current investment
goals. OC San shall review this policy annually and may change its policies
as its investment objectives change.
2.0 Scope:
This Investment Policy applies to all financial assets of OC San; except for the proceeds
of OC San's capital projects financing program, which are invested in accordance with
provisions of their specific bond indentures; and such other funds excluded by law or
other Board -approved covenant or agreement.
These funds are accounted for by OC San as Enterprise Funds as represented in OC
San's Annual Comprehensive Financial Report.
3.0 Standard of Prudence:
The standard of prudence to be used by OC San internal staff, and any authorized
investment advisor(s), shall be as described in Section 53600.3 of the California
Government Code as follows: Except as provided in subdivision (a) of Section 27000.3,
all governing bodies of local agencies or persons authorized to make investment
decisions on behalf of those local agencies investing public funds pursuant to this chapter
are trustees and therefore fiduciaries subject to the prudent investor standard. When
investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public
funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances
then prevailing, including, but not limited to, the general economic conditions and the
anticipated needs of the agency, that a prudent person acting in a like capacity and
Page 1
familiarity with those matters would use in the conduct of funds of a like character and
with like aims, to safeguard the principal and maintain the liquidity needs of the agency.
Within the limitations of this section and considering individual investments as part of an
overall strategy, investments may be acquired as authorized by law.
4.0 Investment Objectives:
The primary objectives of OC San's investment activities, in priority order, and as
described in Section 53600.5 of the California Government Code, shall be:
4.1 Safety: The safety and preservation of principal is the foremost objective of
the investment program of OC San. Investments shall be selected in a
manner that seeks to ensure the preservation of capital in OC San's overall
portfolio. This will be accomplished through a program of diversification,
more fully described in Section 13.0, and maturity limitations, more fully
described in Section 14.0, in order that potential losses on individual
securities do not exceed the income generated from the remainder of the
portfolio.
4.2 Liquidity: The investment program will be administered in a manner that
will ensure that sufficient funds are available for OC San to meet its
reasonably anticipated operating expenditure needs.
4.3 Return on Investments: The OC San investment portfolio will be
structured and managed with the objective of achieving a market rate of
return throughout budgetary and economic cycles, commensurate with
legal, safety and liquidity considerations.
5.0 Delegation of Authority:
5.1 Authority to manage OC San's investment program is derived from the
California Government Code Sections 53600 et seq. and Sections 53635 et
seq. The Board of Directors hereby delegates management responsibility
for OC San's investment program to its Assistant General Manager &
Director of Finance and Administrative Services/Treasurer, who shall
establish written procedures for the operation of the investment program,
consistent with this policy. The Controller/Assistant Treasurer shall be
responsible for day-to-day administration, monitoring and the development
of written administrative procedures for the operation of the investment
program, consistent with this policy. No person may engage in an
investment transaction except as provided under the terms of this policy and
the procedures established by the Treasurer. The Treasurer shall be
responsible for all transactions undertaken by OC San internal staff and
shall establish a system of controls to regulate the activities of internal staff
and external investment advisors engaged in accordance with Section 5.3.
5.2 The administrative procedures for the operation of OC San's investment
program will provide for, but not be limited to, the following:
Page 2
5.2.1 Formats for monthly and quarterly reports to the Administration
Committee and the Board of Directors.
5.2.2 Compliance with generally accepted accounting principles of the
Government Accounting Standards Board.
5.2.3 Establishment of benchmarks for performance measurement.
5.2.4 Establishment of a system of written internal controls.
5.2.5 Establishment of written procedures for competitive bids and
offerings of securities that may be purchased or sold by internal OC San
staff.
5.2.6 Establishment of a Desk Procedures Manual for treasury
operations and management.
5.3 The Board of Directors may, in its discretion, engage the services of one or
more registered investment advisors to assist in the management of OC
San's investment portfolio in a manner consistent with OC San's objectives.
Such external investment advisors, which shall be selected through a
competitive process, shall be granted discretion to purchase and sell
investment securities in accordance with this Investment Policy. Such
advisors must be registered under the Investment Advisers Act of 1940 or
be exempt from such registration.
6.0 Ethics and Conflicts of Interest:
Officers and employees of OC San involved in the investment process shall refrain from
personal business activities that could conflict with proper execution of OC San's
investment program, or which could impair their ability to make impartial investment
decisions. Employees and investment officials shall disclose to the General Manager any
material financial interests in financial institutions that conduct business within OC San's
boundaries and they shall further disclose any large personal financial/investment
positions, the performance of which could be related to the performance of positions in
OC San's portfolio.
7.0 Authorized Financial Dealers and Institutions:
7.1 For investment transactions conducted by OC San internal staff, the
Treasurer will maintain a list of financial institutions authorized to provide
investment services to OC San, including "primary" or regional dealers that
qualify under Securities and Exchange Commission Rule 15C3-1 (Uniform
Net Capital rule) and Federal or State of California chartered banks. No
public deposit shall be made except in a qualified public depository as
established by State law.
Page 3
All financial institutions which desire to become qualified bidders for
investment transactions with OC San must supply the following for
evaluation by the Treasurer:
7.1.1. Audited financial statements for the institution's three most
recent fiscal years.
7.1.2. A statement, in the format prescribed by the Government
Finance Officers Association (GFOA), certifying that the institution has
reviewed OC San's Investment Policy and that all securities offered to OC
San shall comply fully and in every instance with all provisions of the
California Government Code and with this Investment Policy. The current
statement is presented in Appendix "A."
7.1.3. A statement describing the regulatory status of the dealer and
the background and expertise of the dealer's representatives.
Selection of financial institutions, broker/dealers and banks authorized to
engage in transactions with OC San shall be made through a competitive
process. An annual review of the financial condition of qualified institutions
will be conducted by the Treasurer.
7.2 Selection of broker/dealers used by external investment advisors retained
by OC San, shall be in compliance with contract provisions between OC
San and any external investment advisors and shall be in substantially the
following form:
Use of Securities Brokers: Neither the Investment Advisor nor any parent,
subsidiary or related firm shall act as a securities broker with respect to any
purchases or sales of securities which may be made on behalf of OC San,
provided that this limitation shall not prevent the Investment Advisor from
utilizing the services of a securities broker which is a parent, subsidiary or
related firm, provided such broker effects transactions on a "cost only" or
"nonprofit" basis to itself and provides competitive execution. The
Investment Advisor shall provide OC San with a list of suitable independent
brokerage firms (including names and addresses) meeting the
requirements of Government Code Section 53601.5, and, unless otherwise
directed by OC San, the Investment Advisor may utilize the service of any
of such independent securities brokerage firms it deems appropriate to the
extent that such firms are competitive with respect to price of services and
execution.
8.0 Authorized and Suitable Investments:
All investments shall be made in accordance with the California Government Code
including Sections 16429.1 et seq., 53600 et seq. and 53684, and as described within
this Investment Policy. Permitted investments under this policy shall include:
Page 4
8.1 Securities, obligations, participations, or other instruments of, or
issued by, or fully guaranteed as to principal and interest by the US
Government, a federal agency, or a US Government -sponsored enterprise
pursuant to Section 53601 (f) of the California Government Code. US
Treasury securities must make up at least 10% of the portfolio.
8.2 Supranational Obligations issued or unconditionally guaranteed by the
International Bank for Reconstruction and Development, International
Finance Corporation, or Inter -American Development Bank. Securities must
be eligible for purchase in the United States and be U.S. dollar denominated
senior unsecured unsubordinated obligations, with a maximum maturity of
five years. Securities eligible for purchase under this section must be rated
"AX or better by a Nationally Recognized Statistical Rating Organization
(NRSRO) and shall not exceed 30% of the total portfolio.
8.3 Mortgage pass -through security, collateralized mortgage obligation,
mortgage -backed or other pay -through bond, equipment lease -backed
certificate, consumer receivable pass -through certificate, or
consumer receivable -backed bond. Securities eligible for investment
under this subdivision shall be rated in a rating category of "AA" or its
equivalent or better by an NRSRO and have a maximum remaining maturity
of five years or less. Purchase of securities authorized by this subdivision
may not exceed 20% of the agency's surplus moneys that may be invested
pursuant to this section. Purchase of mortgage derivatives, which include
interest -only payments (IOs) and principal -only payments (POs); inverse
floaters, and RE-REMICs (Real Estate Mortgage Investment Conduits), is
hereby prohibited.
8.4 Commercial paper of "prime" quality of the highest ranking or of the highest
letter and number rating as provided by an NRSRO and issued by a
domestic corporation organized and operating in the United States with
assets in excess of $500 million and having a rating of "A" or better on its
long-term debt as provided by an NRSRO. Purchases of eligible commercial
paper may not exceed 270 days to maturity from the date of purchase.
Purchases of commercial paper shall not exceed 40% of the market value
of the portfolio. No more than 5% of the market value of the portfolio, or
10% of the issuer's outstanding paper, may be invested in commercial
paper issued by any one eligible corporation.
8.5 Banker's acceptances issued by institutions, the short-term obligations of
which are rated of the highest ranking or the highest letter and number
rating as provided by an NRSRO provided that: (a) the acceptance is
eligible for purchase by the Federal Reserve System; (b) the maturity does
not exceed 180 days; (c) no more than 40% of the total portfolio may be
invested in banker's acceptances; and (d) no more than 5% of the total
portfolio may be invested in the banker's acceptances of any one
commercial bank.
Page 5
8.6 Medium term (or corporate) notes of a maximum of five years maturity
issued by corporations organized and operating within the United States, or
issued by depository institutions licensed by the United States, or any state,
and operating within the United States with assets in excess of $500 million,
and which is rated in a rating category of "A" or better on its long-term debt
as provided by an NRSRO. If, after purchase, the rating of an eligible note
falls below the minimum rating category stipulated above, the external
investment advisor shall notify OC San of the downgrade and shall present
an analysis and recommendations as to the disposition of the note
consistent with the investment objectives of this Investment Policy. No more
than 30% of the portfolio may be invested in medium term notes.
8.7 Notes, bonds, or other obligations that are at all times secured by a valid
first priority security interest in securities of the types listed by California
Government Code Section 53651 as eligible securities for the purpose of
securing local agency deposits having a market value at least equal to that
required by California Government Code Section 53652 for the purpose of
securing local agency deposits. The securities serving as collateral shall be
placed by delivery or book entry into the custody of a trust company or the
trust department of a bank that is not affiliated with the issuer of the secured
obligation, and the security interest shall be perfected in accordance with
the requirements of the Uniform Commercial Code or federal regulations
applicable to the types of securities in which the security interest is granted.
8.8 Shares of mutual funds investing in securities permitted under this policy
and under Section 53601 (1) of the California Government Code. Such funds
must either: (1) attain the highest ranking, or the highest letter and
numerical rating, provided by not less than two of the three largest nationally
recognized rating services; or (2) have an Investment Advisor registered
with the Securities and Exchange Commission with not less than five years
of experience investing in the securities and obligations authorized under
this policy and under California Government Code Section 53601 and with
assets under management in excess of $500 million. The purchase price of
shares of beneficial interest purchased pursuant to this policy and the
California Government Code may not include any commission that the
companies may charge and shall not exceed 20% of OC San's surplus
money that may be invested pursuant to this section. No more than 10% of
OC San's surplus funds may be invested in shares of beneficial interest of
any one mutual fund pursuant to this section. Money market mutual funds
are limited to 20% per issuer and are not subject to the 10% stipulation.
8.9 Certificates of deposit:
8.9.1 Secured (collateralized) time deposits issued by a nationally or
state -chartered bank or state or federal savings and loan association, as
defined by Section 5102 of the California Financial Code, and having a net
operating profit in the two most recently completed fiscal years. Collateral
must comply with Chapter 4, Bank Deposit Law, Section 16500 et seq., and
Page 6
Chapter 4.5, Savings and Loan Association and Credit Union Deposit Law,
Section 16600 et seq., of the California Government Code.
8.9.2 Negotiable certificates of deposit (NCDs) issued by a nationally
or state -chartered bank or state of federal savings and loan association, as
defined by Section 5102 of the California Financial Code; and which shall
have a rating of "A" or better on its long-term debt as provided by a NRSRO;
or which shall have the highest letter and number rating for deposits as
provided by a NRSRO; or as otherwise approved by the Board of Directors.
No more than 30% of the portfolio may be invested in securities pursuant to
this section.
8.9.3 To be eligible to receive local agency money, a bank, savings
association, federal association, or federally insured individual loan
company shall have received an overall rating of not less than "satisfactory"
in its most recent evaluation by the appropriate federal financial
supervisorial agency of its record of meeting the credit needs of California's
communities, including low and moderate income neighborhoods, pursuant
to Section 2906 of Title 12 of the United States Code.
8.10 Taxable or tax-exempt municipal bonds issued by any of the 50 United
States. Such securities must be rated "A" or higher by a NRSRO; or as
otherwise approved by the Board of Directors.
8.11 The State of California Local Agency Investment Fund (LAIF). LAIF is
an investment alternative for California's local governments and special
districts managed by the State Treasurer's Office. LAIF is more fully
described in the Glossary (See Appendix "C"). OC San shall use LAIF as a
short-term cash management facility. Investment of OC San funds in LAIF
shall be subject to investigation and due diligence prior to investing, and on
a continual basis to a level of review pursuant to Section 3.0, Standard of
Prudence, of this policy.
8.12 The Orange County Treasurer's Money Market Commingled
Investment Pool (OCCIP). The OCCIP is a money market investment pool
managed by the Orange County Treasurer's Office. OCCIP is more fully
described in the Glossary (See Appendix "C"). OC San has no funds
invested in OCCIP at this time. Investment of OC San funds in OCCIP would
be subject to investigation and due diligence prior to investing, and on a
continual basis to a level of review pursuant to Section 3.0, Standard of
Prudence, of this policy.
8.13 Repurchase agreements provided that:
8.13.1 All repurchase agreements shall be collateralized with securities
eligible for purchase under this policy. In order to anticipate market changes
and to provide a level of security for all repurchase agreement transactions,
collateralization shall be maintained at a level of at least 102% of the market
Page 7
value of the repurchase agreements and shall be adjusted no less than
weekly.
8.13.2 All repurchase agreements must be the subject of a Master
Repurchase Agreement between OC San and the provider of the
repurchase agreement. The Master Repurchase Agreement shall be
substantially in the form developed by the Securities Industry and Financial
Markets Association.
8.14 Reverse repurchase agreements provided that:
8.14.1 No more than 5% of OC San's portfolio shall be invested in
reverse repurchase agreements, and there shall be no long-term reverse
repurchase agreements unless otherwise authorized by the Board of
D i recto rs.
8.14.2 The maximum maturity of reverse repurchase agreements shall
be 90 days.
8.14.3 Reverse repurchase agreements shall mature on the exact date
of a known cash flow which will be unconditionally available to repay the
maturing reverse repurchase agreement.
8.14.4 Proceeds of reverse repurchase agreements shall be used
solely to supplement portfolio income or to provide portfolio liquidity and
shall not be used to speculate on market movements.
8.14.5 All reverse repurchase agreements must be the subject of a
Master Repurchase Agreement between OC San and the provider of the
reverse repurchase agreement. The Master Repurchase Agreement shall
be substantially in the form developed by the Securities Industry and
Financial Markets Association.
8.15 Public Bank Obligations of a maximum of five years maturity which
includes commercial paper, debt securities, or other obligations of a public
bank, a public bank as defined in California Government Code Section
57600-57607.
8.16 Sales of OC San -owned securities in the secondary market may incur
losses in order to improve the risk or return characteristics of the portfolio,
to prevent anticipated further erosion of principal, or when trading for
securities that result in an expected net economic gain to OC San.
8.17 If securities owned by OC San are downgraded below the quality required
by this Investment Policy, it shall be OC San's policy to review the credit
situation and make a determination as to whether to sell or retain such
securities in the portfolio. If a decision is made to retain the downgraded
securities in the portfolio, their presence in the portfolio will be monitored
'm
and reported quarterly to the OC San General Manager, the Administration
Committee and Board of Directors.
8.18 OC San is authorized to invest in securities issued by or backed by the
United States Government that could result in zero or negative interest
accrual if held to maturity.
9.0 Review of Investment Portfolio:
The securities held by OC San must be in compliance with Section 8.0 "Authorized and
Suitable Investments" at time of purchase. If at a later date, a security is no longer in
compliance with Section 8.0, the Treasurer shall report the non -compliant security to the
Administration Committee and the Board of Directors and shall include a disclosure in the
quarterly Treasurer's Report if the security is held at the date the report is prepared.
10.0 Investment Pools/Mutual Funds:
A thorough investigation of the pool/fund is required prior to investing, and on a continual
basis. A questionnaire shall be developed that will provide the following information:
10.1 A description of eligible investment securities, and a written statement of
investment policy and objectives.
10.2 A description of interest calculations and how they are distributed, and how
gains and losses are treated.
10.3 A description of how the securities are safeguarded (including the
settlement processes) and how often the securities are priced and the
program audited.
10.4 A description of who may invest in the program, how often and what size
deposits and withdrawals are allowed.
10.5 A schedule for receiving statements and portfolio listings.
10.6 A description of the utilization and level of reserves, retained earnings or
other collateral and how they are used by the fund.
10.7 A fee schedule, and when and how is it assessed.
10.8 Whether the pool/fund is eligible for bond proceeds and/or whether it will
accept such proceeds.
11.0 Collateralization:
Generally, the value to secure deposits under this policy shall comply with Section 53652
of the California Government Code. Collateral ization will be required for secured time
deposits, as more fully described in Section 8.9.1; and repurchase agreements, as more
fully described in Section 8.13.1. Collateral will always be held by an independent third -
Page 9
party, as more fully described in Section 12.0. The right of collateral substitution is
granted. Under provisions of the California Government Code, California banks and
savings and loans associations are required to secure OC San's deposits by pledging
government securities with a value of 110% of principal and accrued interest. State law
also allows financial institutions to secure OC San's deposits by pledging first trust deed
mortgage notes having a value of 150% of OC San's total deposits.
12.0 Safekeeping and Custody:
All securities transactions, including collateral for repurchase agreements, entered into
by, or on behalf of OC San, shall be conducted on a delivery -versus -payment (DVP)
basis. Securities will be held by OC San's third -party custodian bank, which shall be
selected through a competitive process, or that agent's representative, or in the agent's
account at the Federal Reserve Bank, or within clearing corporations in the U.S, and
evidenced by book entry statements. Third -party safekeeping arrangements will be
approved by the Treasurer and will be corroborated by a written custodial agreement.
13.0 Diversification:
OC San will diversify its investments by security type, issuer and financial institution in
accordance with the following:
13.1 There is no limit on investment in securities issued by or guaranteed by the
full faith and credit of the U.S. government.
13.2 No more than 20% of the portfolio may be invested in securities of a single
agency of the U.S. government, which does not provide the full faith and
credit of the U.S. government.
13.3 No more than 5% of the portfolio may be invested in securities of any one
issuer, other than Supranationals, the U.S. government or its agencies.
Investment in mutual funds is not governed by this Section 13.3. See
Section 13.8 for conditions of purchase of mutual funds.
13.4 No individual holding shall constitute more than 5% of the total debt
outstanding of any issuer.
13.5 No more than 40% of the portfolio may be invested in banker's acceptances.
13.6 No more than 40% of the portfolio may be invested in commercial paper.
13.7 No more than 30% of the portfolio may be invested in medium -term
(corporate) notes.
13.8 No more than 20% of the portfolio may be invested in mutual funds. No
more than 10% of OC San's portfolio may be invested in shares of beneficial
interest of any one mutual fund. Money market mutual funds are limited to
20% per issuer and are not subject to the 10% stipulation.
Page 10
13.9 No more than 30% of the portfolio may be invested in negotiable certificates
of deposit.
13.10 No more than 10% of the portfolio may be invested in eligible municipal
bonds.
13.11 No more than 20% of the Long Term Operating Monies portfolio may be
invested in a combination of mortgage -backed securities, CMOs and asset -
backed securities.
13.12 No more than the statutory maximum may be invested in LAIF.
13.13 No more than 15% of the portfolio may be invested in the Orange County
Investment Pool.
13.14 No more than 20% of the portfolio may be invested in repurchase
agreements.
13.15 No more than 5% of the portfolio may be invested in reverse repurchase
agreements.
14.0 Maximum Maturities:
To the extent possible, OC San will attempt to match its investments with reasonably
anticipated cash flow requirements. The Treasurer shall develop a five-year cash flow
forecast, which shall be updated quarterly. Based on this forecast, the Treasurer shall
designate, from time -to -time, the amounts to be allocated to the investment portfolio. OC
San monies invested in accordance with this policy are divided into two categories:
14.1 Liquid Operating Monies. Funds needed for current operating and capital
expenditures are known as Liquid Operating Monies.
14.1.1 The maximum final stated maturity of individual securities in the
Liquid Operating Monies account portfolio shall be one year from the date
of settlement.
14.1.2 The average duration of the Liquid Operating Monies account
portfolio shall be recommended by the Treasurer based on OC San's cash
flow requirements but may never exceed 180 days.
14.2 Long Term Operating Monies. Funds needed for longer term purposes
are known as the Long Term Operating Monies.
14.2.1 The maximum final stated maturity of individual securities in the
Long Term Operating Monies account portfolio shall be five years from the
date of settlement.
Page 11
14.2.2 The duration of the Long Term Operating Monies account
portfolio shall be recommended by the Treasurer based on OC San's five-
year cash flow forecast but may never exceed 60 months.
14.2.3 The duration of the Long Term Operating Monies account
portfolio shall never exceed 120% of the duration as established in
accordance with Section 14.2.2.
14.2.4 The duration of the Long Term Operating Monies account
portfolio shall never be less than 80% of the duration as established in
accordance with Section 14.2.2.
15.0 Internal Control:
The Treasurer shall establish an annual process of independent review by an
external auditor. This review will provide internal control by assuring compliance
with policies and procedures.
16.0 Performance Objectives and Benchmarks:
16.1 Overall objective. The investment portfolio of OC San shall be designed
with the overall objective of obtaining a rate of return throughout budgetary
and economic cycles, commensurate with investment risk constraints and
reasonably anticipated cash flow needs.
16.2 The Liquid Operating Monies. The investment performance objective for
the Liquid Operating Monies shall be to earn a total rate of return over a
market cycle which exceeds the return on a market index approved by the
Administration Committee and by the Board of Directors, when the duration
of the portfolio is established. This market index is more fully described in
Board Resolution No. OC SAN 22-XX (see Appendix "B").
16.3 The Long Term Operating Monies. The investment performance objective
for the Long Term Operating Monies shall be to earn a total rate of return
over a market cycle which exceeds the return on a market index selected
by the Administration Committee and approved by the Board of Directors,
when the duration of the portfolio is established. This market index is more
fully described in Board Resolution No. OC SAN 22-XX (See Appendix "B").
17.0 Reporting:
17.1 Monthly transaction reports in accordance with California Government
Code Section 53607 shall be submitted by the Treasurer to the Board of
Directors.
17.2 Quarterly investment reports will be submitted by the Treasurer to the
Administration Committee which shall forward the reports to the Board of
Directors. The quarterly reports shall provide clear and concise status
information on OC San's portfolios at the end of each reporting period,
Page 12
including performance measures using the benchmarks described in
Section 16.0 of this Investment Policy. These reports shall contain listings
of individual securities held at the end of each reporting period, and shall
disclose, at a minimum, the following information about the risk
characteristics of OC San's portfolio:
17.2.1 Cost and accurate and complete market value of the portfolio.
17.2.2 Modified duration of the portfolio compared to Benchmark.
17.2.3 Dollar change in value of the portfolio for a 1 % change in interest
rates.
17.2.4 Percent of portfolio invested in reverse repurchase agreements,
and a schedule which matches the maturity of such reverse repurchase
agreements with the cash flows which are available to repay them at
maturity.
17.2.5 For the Liquid Operating Monies account only, the percent of
portfolio maturing within 90 days.
17.2.6 Average portfolio credit quality.
17.2.7 Percent of portfolio with credit ratings below "A" by any rating
agency, and a description of such securities.
17.2.8 State that all investments are in compliance with this policy and
the California Government Code or provide a listing of any transactions or
holdings which do not comply with this policy or with the California
Government Code.
17.2.9 Time -weighted total rate of return for the portfolio for the prior
three months, six months, nine months, twelve months and since inception
compared to the Benchmark returns for the same periods.
17.2.10 State that sufficient funds are available for OC San to meet its
operating expenditure requirements for the next six months, or if not, state
the reasons for the shortfall.
17.3 OC San's Treasurer shall meet quarterly with the Administration Committee
to review investment performance, proposed strategies and compliance
with this Investment Policy. External investment advisors may be required
to attend said meetings at the discretion of the Chairperson of the
Administration Committee.
18.0 Investment Policy Adoption and Revision:
18.1 The Investment Policy of OC San shall be adopted by resolution of the
Board of Directors. The Investment Policy shall be reviewed on an annual
Page 13
basis in accordance with California Government Code Section 53646, by
the Administration Committee, which shall recommend revisions, as
appropriate, to the Board of Directors. Any modifications made thereto shall
be approved by the Board of Directors.
18.2 The Administration Committee shall serve as the oversight committee for
OC San's Investment program and shall adopt guidelines for the ongoing
review of duration, quality and liquidity of OC San's portfolio.
Page 14
RESOLUTION NO. OC SAN 22-36
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE
COUNTY SANITATION DISTRICT, AUTHORIZING THE ORANGE
COUNTY SANITATION DISTRICT'S TREASURER TO INVEST AND/OR
REINVEST THE ORANGE COUNTY SANITATION DISTRICT'S FUNDS,
ADOPTING THE ORANGE COUNTY SANITATION DISTRICT'S
INVESTMENT POLICY STATEMENT AND PERFORMANCE
BENCHMARKS, AND REPEALING RESOLUTION NO. OC SAN 21-22
WHEREAS, on December 15, 2021, the Board of Directors adopted Resolution
No. OC SAN 21-22, readopting the Orange County Sanitation District's Investment Policy
Statement, and establishing specific performance benchmarks and objectives, together
with a schedule of frequency of investment performance reports; and
WHEREAS, pursuant to California Government Code Section 53607, the Board of
Directors may delegate authority to invest and/or reinvest the Orange County Sanitation
District's funds to the Treasurer for a one-year period; and
WHEREAS, pursuant to California Government Code Section 53646, the Orange
County Sanitation District is required to review its Investment Policy annually and readopt
its Policy at a public meeting, which Policy will establish specific performance benchmarks
and objectives, and specific monitoring and reports.
NOW, THEREFORE, the Board of Directors of the Orange County Sanitation
District, DOES HEREBY RESOLVE, DETERMINE AND ORDER:
Section 1: That the authority of the Board of Directors to invest or reinvest
surplus funds, or to sell or exchange securities so purchased, or to deposit for
safekeeping the funds and investments of the Orange County Sanitation District with
depositories, as provided for in California Government Code Sections 53608 and 53630,
is hereby delegated to the Orange County Sanitation District's Treasurer for a one-year
period, January 1, 2023 through December 31, 2023, as authorized by California
Government Code Section 53607.
OC SAN 22-36-1
Section 2: That the Board of Directors hereby adopts the Investment Policy
Statement of the Orange County Sanitation District.
Section 3: That the Board of Directors hereby adopts the following specific
performance benchmarks for their two investment funds in accordance with Section 16.0
of the Orange County Sanitation District's Investment Policy:
LIQUID OPERATING MONIES: The Short -Term Operating Fund will be compared
to the three-month Bank of America Merrill Lynch T-Bill Index and the Callan
Money Market Funds.
LONG-TERM OPERATING MONIES: The Long -Term Operating Fund will be
compared to the Bank of America Merrill Lynch Corporate and Government One -
to -Five Year Maturity Index and to the Callan Short Term Fixed Income Group.
Section 4: That the Board of Directors hereby adopts a performance monitoring
and reporting schedule, as required by Section 17.0 of the Orange County Sanitation
District's Investment Policy.
Section 5: That Resolution No. OC SAN 21-22 is hereby repealed.
OC SAN 22-36-2
PASSED AND ADOPTED at regular meeting of the Board of Directors, Orange
County Sanitation District held December 15, 2022.
Chad P. Wanke
Board Chairman
/_raIM9
Kelly A. Lore, MMC
Clerk of the Board
OC SAN 22-36-3
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 22-36 was passed
and adopted at a regular meeting of said Board on the 15th day of December 2022, 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 15th day of December 2022.
Kelly A. Lore, MMC
Clerk of the Board of Directors
Orange County Sanitation District
OC SAN 22-36-4
Administration Building
ADMINISTRATION COMMITTEE 10844 Ellis Avenue
SAIV Fountain Valley, CA 92708
(714) 593 7433
ORANGE COUNTY SANITATION DISTRICT
Agenda Report
File #: 2022-2585 Agenda Date: 12/14/2022 Agenda Item No: 3.
FROM: James D. Herberg, General Manager
Originator: Kathy Millea, Director of Engineering
SUBJECT:
MOVE MANAGEMENT CONSULTING SERVICES
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION:
A. Approve a Professional Consultant Services Agreement to CBRE, Inc. to provide Move
Management Consulting Services, Specification No. CS-2022-1336, for a total amount not to
exceed $108,390-1 and
B. Approve a contingency of $10,839 (10%).
BACKGROUND
Orange County Sanitation District's (OC San) Headquarters Complex at Plant No. 1, Project No. P1-
128A, will construct a new Headquarters Building on the north side of Ellis Avenue to house
administrative, technical, and engineering staff. The Headquarters Building will also include surface
parking and a pedestrian/utility bridge over Ellis Avenue to Plant No. 1. OC San will need to relocate
staff to the new Headquarters Building upon completion. The move will include relocating
approximately 300 employees from seven different locations to the new Headquarters Building.
0=111A%1L11&3IF_1z117_10IR
• Provide a safe and collegial workplace
• 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
PROBLEM
OC San staff has limited experience moving staff of this magnitude. An experienced move
management company is needed to develop a comprehensive relocation plan to undertake this
transition in a cost-effective and efficient fashion. In addition, if this move management were to be
done in-house with existing staff, it will cause a significant strain and limit resources on other projects
and efforts currently underway.
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File #: 2022-2585 Agenda Date: 12/14/2022 Agenda Item No: 3.
PROPOSED SOLUTION
Approve the Professional Consultant Services Agreement with CBRE, Inc. to provide move
management consultant services. A professional move management company will create a more
seamless relocation plan to limit downtime and cost.
TIMING CONCERNS
In order to relocate 300 employees into the new Headquarters Building, move management services
should begin no later than the beginning of 2023. This time frame will allow OC San to initiate the
contract, create the plan, procure movers, and prepare staff administratively and physically to
relocate employees starting December 2023, when the new Headquarters Building is complete.
RAMIFICATIONS OF NOT TAKING ACTION
If a move management consultant is not selected, it will affect the implementation of staff relocation
and be less efficient and more disruptive to on -going initiatives.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
The goal of the agreement is for the Consultant to provide the planning and move management
which will result in a seamless and smooth transition for OC San staff. The Consultant will be
responsible for assisting with all elements of the move into the new Headquarters Building, including
the following:
• Pre -move coordination
• Development and maintenance of a moving schedule
• Development of the moving vendor scope of work
• Assistance reviewing moving service bids
• Oversight of all move logistics
Consultant Selection
OC San requested and advertised for proposals for Move Management Consultant Services on July
26, 2022. The following evaluation criteria were described in the Request for Proposed (RFP) and
used to determine the most qualified Consultant.
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File #: 2022-2585
Agenda Date: 12/14/2022 Agenda Item No: 3.
CRITERION
WEIGHT
Qualifications & Experience of Firm
25%
Proposed Staffing & Project Organization
25%
Work Plan
30%
Cost
20%
Three proposals were received on August 9, 2022 and evaluated in accordance with the evaluation
process set forth in OC San's Purchasing Ordinance by a pre -selected Evaluation Team consisting of
the following OC San staff: Administration Manager, Principal Staff Analyst, Senior Engineer, Safety
and Health Supervisor, and Information Technology Supervisor. The Evaluation Team also including
one non -voting representative from the Purchasing Division.
The Evaluation Team scored the proposals on the established criterion as summarized below:
Rank
Proposer
Qualifications
Proposed
Work Plan
Subtotal
of Firm (Max
Staffing and
(Max 30%)
Score (Max
25%)
Project
80%)
Organization
(Max 25%)
1
CBRE, Inc.
24%
21 %
29%
74%
2
CBSI
19%
18%
18%
55%
3
E-Logic, Inc.
3%
3%
3%
9%
All proposals were accompanied by a sealed cost proposal. Only the cost proposals for the two
highest ranked firms were opened. Only the cost proposal of the top highest ranked firm was
negotiated.
Rank
Proposer
ORIGINAL COST
BAFO (if applicable)
1
CBRE, Inc.
$110,750
$108,390
2
CBSI
$114,840
N/A
Based on the scoring shown below, CBRE, Inc. was selected as the most qualified Consultant.
Rank
Proposer
Subtotal w/o
Cost (Max
Total Weighted
Presentation
20%)
Score (Max
(Max 80%)
100%)
1
CBRE, Inc.
74%
20%
94%
2
ICBSI
55%
ji9%
74%
CEQA
N/A
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FINANCIAL CONSIDERATIONS
Agenda Date: 12/14/2022 Agenda Item No: 3.
This request complies with authority levels of OC San's Purchasing Ordinance. This item has been
budgeted in the FY 2022-23 Budget - General Manager's Department.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda
package:
• Professional Consultant Services Agreement
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PROFESSIONAL CONSULTANT SERVICES AGREEMENT
MOVE MANAGEMENT CONSULTING SERVICES
Specification No. CS-2022-1336
This PROFESSIONAL CONSULTANT SERVICES AGREEMENT (hereinafter referred to as
"Agreement") is made and entered into as of the date fully executed below, by and between
Orange County Sanitation District (hereinafter referred to as "OC San") and CBRE, Inc.
(hereinafter referred to as "Consultant"), and collectively referred to herein as the "Parties."
RECITALS
WHEREAS, OC San desires to obtain move management consulting services as described in
Exhibit "A" attached hereto and incorporated herein by this reference ("Services"); and
WHEREAS, Consultant is qualified to provide the Services by virtue of experience, training, and
expertise; and
WHEREAS, OC San desires to engage Consultant to render the Services as provided herein;
and
WHEREAS, OC San selected Consultant to provide the Services in accordance with Ordinance
No. OC SAN-56; and
WHEREAS, on December 14, 2022, OC San's Administration Committee, by minute order,
authorized execution of this Agreement.
NOW, THEREFORE, in consideration of the above recitals and the mutual promises and benefits
specified below, the Parties agree as follows:
General.
1.1 This Agreement and all exhibits hereto are made by OC San and the Consultant.
1.2 The following exhibits, in order of precedence, are incorporated by reference and
made part of this Agreement.
Exhibit "A" —
Scope of Work
Exhibit "B" —
Proposal and Cost 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 in the Agreement shall
control and thereafter the provisions in the document highest in precedence shall be
controlling.
1.4 Except as expressly provided otherwise, OC San accepts no liability for any expenses,
losses, or actions incurred or undertaken by Consultant as a result of work performed
in anticipation of purchases of the Services by OC San.
1.5 Work Hours: The work required under the Agreement may include normal business
hours, evenings, and weekends.
Professional Consultant Services Agreement 1 of 14 Specification No. CS-2022-1336
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1.6 Meetings with OC San staff: Meetings shall be scheduled Monday through Thursday,
between the hours of 7:00 a.m. and 5:00 p.m., and Friday, between the hours of 7:00
a.m. and 3:30 p.m. OC San will not pay for travel time.
1.7 Days: Shall mean calendar days, unless otherwise noted.
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 The provisions of this Agreement may be amended or waived only by an amendment
executed by authorized representatives of both Parties.
1.10 The various headings in this Agreement are inserted for convenience only and shall
not affect the meaning or interpretation of this Agreement or any paragraph or
provision hereof.
2. Scope of Work.
2.1 Consultant shall provide the Services identified in Exhibit "A" in a competent,
professional, and satisfactory manner in accordance with generally accepted industry
and professional standards, including fiduciary standards, ethical practices, and
standards of care and competence for its trade/profession.
2.2 Modifications to Scope of Work. OC San shall have the right to modify the Scope of
Work at any time. All modifications must be made by an amendment signed by both
Parties. In the event that OC San materially modifies the Scope of Work, resulting in
a material increase to the cost of performance of the Services and/or the Project
Schedule, then the Parties shall enter into an amendment to the Agreement to provide
for additional Consultant compensation and/or an extension of the Project Schedule
for performance of the Services.
2.3 Familiarity with Work. By executing this Agreement, Consultant warrants that: (a) it
has investigated the work to be performed; and (b) it understands the facilities,
difficulties, and restrictions of the work under this Agreement. Should Consultant
discover any latent or unknown condition 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.
2.4 Performance. Time is of the essence in the performance of the provisions hereof.
3. Agreement Term.
3.1 The Services shall be completed within five hundred sixty (560) calendar days from
the effective date of the Notice to Proceed.
3.2 Extensions. The term of this Agreement may be extended only by an amendment
signed by both Parties.
4. Compensation.
4.1 As compensation for the Services provided under this Agreement, OC San shall pay
Consultant a total amount not to exceed One Hundred Eight Thousand, Three
Hundred Ninety Dollars ($108,390.00).
Professional Consultant Services Agreement 2 of 14 Specification No. CS-2022-1336
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4.2 Consultant shall provide OC San with all required premiums and/or overtime work at
no charge beyond the amount specified above. Such included premiums and/or
overtime work do not apply to any increased Scope of Work or extended Project
Schedule pursuant to Section 2.2.
5. Payments and Invoicing.
5.1 OC San shall pay itemized invoices for Milestones completed in accordance with
Exhibit "A" at the prices identified in Exhibit "B" thirty (30) days from receipt of the
invoice and after approval by OC San's Project Manager or designee. OC San shall
be the determining party, in its sole discretion, as to whether the Services have been
satisfactorily completed.
5.2 Consultant shall submit its invoices to OC San Accounts Payable by electronic mail to
APStaff(a-),OCSan.gov. In the subject line include "INVOICE" and the Purchase Order
Number.
6. California Department of Industrial Relations Registration and Record of Wages.
6.1 To the extent Consultant's employees and/or its subconsultants perform work related
to this Agreement for which Prevailing Wage Determinations have been issued by the
California Department of Industrial Relations (DIR) as more specifically defined under
Labor Code section 1720 et seq., prevailing wages are required to be paid for
applicable work under this Agreement. It is Consultant's responsibility to interpret and
implement any prevailing wage requirements and Consultant agrees to pay any
penalty or civil damages resulting from a violation of the prevailing wage laws.
6.2 Consultant and its subconsultants shall comply with the registration requirements of
Labor Code section 1725.5. Pursuant to Labor Code section 1771.4(a)(1), the work is
subject to compliance monitoring and enforcement by the California Department of
Industrial Relations (DIR).
6.3 Pursuant to Labor Code section 1773.2, a copy of the prevailing rate of per diem
wages is available upon request at OC San's principal office. The prevailing rate of
per diem wages may also be found at the DIR website for prevailing wage
determinations at http://www.dir.ca.gov/DLSR/PWD.
6.4 Consultant and its subconsultants shall comply with the job site notices posting
requirements established by the Labor Commissioner per Title 8, California Code of
Regulations section 16461(e). Pursuant to Labor Code sections 1773.2 and
1771.4(a)(2), Consultant shall post a copy of the prevailing rate of per diem wages at
the job site.
6.5 Consultant and its subconsultants shall maintain accurate payroll records and shall
comply with all the provisions of Labor Code section 1776. Consultant and its
subconsultants shall submit payroll records to the Labor Commissioner pursuant to
Labor Code section 1771.4(a)(3). Pursuant to Labor Code section 1776, the
Consultant and its subconsultants shall furnish a copy of all certified payroll records to
OC San and/or the 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. Pursuant to Labor
Code section 1776(h), penalties for non-compliance with a request for payroll records
may be deducted from progress payments.
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6.5.1 As a condition to receiving payments, Consultant agrees to present to OC San,
along with any request for payment, all applicable and necessary certified
payrolls and other required documents for the period covering such payment
request. Pursuant to Title 8, California Code of Regulations section 16463, OC
San shall withhold any portion of a payment, up to and including the entire
payment amount, until certified payroll forms and any other required
documents are properly submitted. In the event certified payroll forms do not
comply with the requirements of Labor Code section 1776, OC San may
continue to withhold sufficient funds to cover estimated wages and penalties
under the Agreement.
6.6 The Consultant and its subconsultants shall comply with Labor Code section 1774 and
section 1775. Pursuant to Labor Code section 1775, the Consultant and any of its
subconsultants shall forfeit to OC San a penalty of not more than two hundred dollars
($200) for each calendar day, or portion thereof, for each worker paid less than the
prevailing rates as determined by the DIR for the work or craft in which the worker is
employed for any work.
6.6.1 In addition to the penalty and pursuant to Labor Code section 1775, the
difference between the prevailing wage rates and the amount paid to each
worker for each calendar day or portion thereof for which each worker was paid
less than the prevailing wage rate shall be paid to each worker by the
Consultant or its subconsultant.
6.7 Consultant and its subconsultants shall comply with Labor Code sections 1810
through 1815. Consultant and its subconsultants shall restrict working hours to eight
(8) hours per day and forty (40) hours per week, except that work performed in excess
of those limits shall be permitted upon compensation for all excess hours worked at
not less than one and one-half (1.5) times the basic rate of pay, as provided in Labor
Code section 1815. The Consultant shall forfeit, as a penalty to OC San, twenty-five
dollars ($25) per worker per calendar day during which such worker is required or
permitted to work more than eight (8) hours in any one calendar day and forty (40)
hours in any one calendar week in violation of Labor Code sections 1810 through
1815.
6.8 Consultant and its subconsultants shall comply with Labor Code sections 1777.5,
1777.6, and 1777.7 concerning the employment of apprentices by Consultant or any
subconsultant.
6.9 Consultant shall include, at a minimum, a copy of the following provisions in any
contract it enters into with any subconsultant: Labor Code sections 1771, 1771.1,
1775, 1776, 1777.5, 1810, 1813, 1815, 1860, and 1861.
6.10 Pursuant to Labor Code sections 1860 and 3700, the Consultant and its
subconsultants will be required to secure the payment of compensation to employees.
Pursuant to Labor Code section 1861, Consultant, by accepting this Agreement,
certifies that:
"I am aware of the provisions of section 3700 of the Labor Code which
require every employer to be insured against liability for workers'
compensation or to undertake self-insurance in accordance with the
provisions of that code, and I will comply with such provisions before
commencing the performance of the work of this contract."
Professional Consultant Services Agreement 4 of 14 Specification No. CS-2022-1336
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Consultant shall ensure that all its contracts with its subconsultants provide the
provision above.
7. 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 under this Agreement.
8. 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 specifically
and uniquely for OC San, but expressly excluding any Consultant Intellectual Capital
(hereinafter defined), 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 contracts with its subconsultants provide for assignment to OC San of any
documents or materials prepared by them.
9. Ownership of Intellectual Property.
9.1 Consultant agrees that all designs, plans, reports, specifications, drawings,
schematics, prototypes, models, inventions, and all other information and items made
specifically and uniquely for OC San 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.
9.2 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 regarding New
Developments and confidential information.
9.3 Consultant warrants that Consultant will have 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.
9.4 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 specifically and uniquely for OC San by Consultant
or its subconsultants in connection with the Services hereunder shall be delivered to
Professional Consultant Services Agreement 5 of 14 Specification No. CS-2022-1336
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and shall become the exclusive property of OC San. OC San may utilize such
documents, at its own risk, for OC San's applications on other projects or extensions
of this project.
9.5 Consultant shall not receive any right, claim, title or interest in or to any proprietary
products or intellectual property of OC San. Notwithstanding any provision hereof to
the contrary, all methodologies, systems, procedures, management tools, software,
ideas, inventions, know-how and other intellectual capital that Consultant has
developed, created or acquired prior to performing Services under this Agreement, or
develops, creates or acquires during the Agreement Term or thereafter ("Consultant
Intellectual Capital") are and shall remain the sole and exclusive proprietary property
of Consultant, and OC San shall not have any right, claim, title or interest in or to any
of Consultant Intellectual Capital.
10. Right to Review Services, Facilities, and Records.
10.1 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 in such endeavor.
10.2 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.
10.3 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.
11. Conflict of Interest and Reporting.
11.1 Consultant shall, at all times, avoid conflicts of interest or appearance of conflicts of
interest in performance of this Agreement.
11.2 Consultant affirms that, to the best of its knowledge, there exists no actual or potential
conflict between Consultant's families, business, or financial interest and the Services
under this Agreement and in the event of change in either its private interests or
Services under this Agreement, it shall raise with OC San any question regarding
possible conflict of interest which may arise as a result of such change.
12. Damage to OC San's Property. Any of OC San's property damaged by Consultant, any
subconsultant, subcontractor, or by the personnel of either will be subject to repair or
replacement by Consultant at no cost to OC San.
13. 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.
14. Audit Rights. Consultant agrees that, during the term of this Agreement and for a period
of three (3) years after its expiration or 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.
Professional Consultant Services Agreement 6 of 14 Specification No. CS-2022-1336
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15. Contractor Safety Standards and Human Resources Policies. OC San requires
Consultant, its subconsultants, and its subcontractors 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, the
Consultant is required to follow the most stringent regulatory requirement at no additional
cost to OC San. Consultant, its subconsultants, and all of their employees shall adhere to
all applicable Contractor Safety Standards in Exhibit "D" and the Human Resources Policies
in Exhibit "E."
16. Insurance. Consultant and all its subconsultants shall purchase and maintain, throughout
the term of this Agreement and any periods of warranty or extensions, insurance in amounts
equal to the requirements set forth in the signed 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 obtain and maintain the required
insurance coverage shall result in termination of this Agreement.
17. Indemnification and Hold Harmless Provision.
17.1 To the extent of Consultant's fault, Consultant shall assume all responsibility for
damages to property and/or injuries to persons, including accidental death, which may
arise out of or may 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 negligence of or willful misconduct of
the other Party, each Party (as the case may be, the "Indemnifying Party") shall
indemnify, protect, defend, and hold harmless the other Party, and its officials, officers,
agents, and employees from and against any and all third party claims, liabilities,
damages, or expenses of any nature, including attorneys' fees: (a) on account of any
goods and services provided under this Agreement that result in injury to or death of
any person, or damage to property, or interference with the use of property to the
extent arising out of or in connection with the negligence or willful misconduct of the
Indemnifying Party. 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.
17.2 Notwithstanding any provision herein to the contrary:
17.2.1 Neither Party shall be liable for any lost or prospective profits or any other
indirect, consequential, special, incidental, punitive, or other exemplary losses
or damages, whether based in contract, warranty, indemnity, negligence, strict
liability or other tort or otherwise, regardless of the foreseeability or the cause
thereof.
Professional Consultant Services Agreement 7 of 14 Specification No. CS-2022-1336
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17.2.2 Consultant's maximum aggregate liability under or in connection with this
Agreement, regardless of the form of action, shall in no event exceed three
(3) times the total compensation (excluding any reimbursed amounts)
received by Consultant under this Agreement. Consultant shall not be liable
for any claim based upon or resulting from any erroneous or incomplete data
provided by OC San or any third party or otherwise contained in OC San's
databases.
18. Independent Contractor.
18.1 The relationship between the Parties hereto is that of an independent contractor and
nothing herein shall be construed as creating an employment or agency relationship.
18.2 During the performance of this Agreement, Consultant and its officers, employees, and
agents shall act in an independent capacity and shall not act as OC San's officers,
employees, or agents. OC San assumes no liability for Consultant's action and
performance nor assumes responsibility for taxes, funds, payments, or other
commitments, expressed or implied, by or for Consultant.
18.3 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 prior expressed written
consent.
18.4 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, or holiday or sick pay. Consultant shall
be responsible for providing, at Consultant's expense, disability, worker's
compensation, and other insurance as well as licenses and permits usual or necessary
for conducting the Services hereunder.
18.5 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.
18.6 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.
19. Subcontracting and Assignment. 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.
20. No Solicitation of Employees.
20.1 Consultant agrees that it shall not, during the term of this Agreement and for a period
of one (1) year immediately following expiration or 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.
Professional Consultant Services Agreement 8 of 14 Specification No. CS-2022-1336
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20.2 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 expiration or termination of this
Agreement, Consultant shall 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.
21. Confidentiality and Non -Disclosure.
21.1 Each Party acknowledges that, in performing the Services hereunder, the other Party
may have to disclose to the other, orally and in writing, certain confidential information
that it considers proprietary and has developed at great expense and effort.
21.2 Except where disclosure is required by law, both Parties agree to maintain in
confidence and not disclose to any person, firm, or corporation, without the other
Party's prior written consent, any trade secret, confidential information, knowledge, or
data relating to the products, process, or operation the other Party.
21.3 Except where disclosure is required by law, both Parties further agree to maintain in
confidence and not to disclose to any person, firm, or corporation any data,
information, technology, or material developed or obtained by the other Party during
the term of this Agreement.
21.4 Both Parties agree as follows:
21.4.1 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.
21.4.2 To restrict access to the confidential information to its subconsultant or
personnel of either Party 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.
21.4.3 To return all confidential information upon termination of this Agreement or
upon the other Party's request, whichever occurs first.
21.4.4 To hold in confidence information and materials, if any, developed pursuant
to the Services hereunder.
21.4.5 The provisions of this section shall survive termination or expiration of this
Agreement and shall continue for so long as the material remains confidential.
22. 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 under the terms of this Agreement.
23. Third -Party Rights. Nothing in this Agreement shall be construed to give any rights or
benefits to anyone other than OC San and Consultant.
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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
OC San harmless from any and all damages and liabilities assessed against OC San as a
result of Consultant's noncompliance therewith. Any provision required by law to be
included herein shall be deemed included as a part of this Agreement whether or not
specifically included or referenced.
25. Licenses, Permits, Ordinances, and Regulations. 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 provide the Services. Any and all fees required by Federal,
State, County, City, and/or municipal laws, codes, and/or tariffs that pertain to the work
performed under this Agreement will be paid by Consultant.
26. Regulatory Requirements. Consultant shall perform all work under this Agreement in strict
conformance with applicable Federal, State, and local regulatory requirements including,
but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, 261, and 503, Title 22, 23, and
Water Codes Division 2.
27. 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, subcontractors, and the Services, including, but not limited
to, all applicable Federal, State, and local air pollution control laws and regulations. OC San
acknowledges that Consultant is not an environmental expert or consultant in the field of
Hazardous Materials (as hereinafter defined). With respect to any Hazardous Materials that
may be present below, on, about or otherwise affecting the real property or any property of
OC San, Consultant shall not be responsible for detecting, handling, removing, remediating
or disposing of such Hazardous Materials, except to the extent of any Hazardous Materials
brought onto the property by Consultant ("Consultant Hazardous Materials"). Consultant
shall not use Hazardous Materials except in the ordinary course of providing the Services
and in compliance with applicable laws. "Hazardous Materials" shall mean any hazardous
material or substance which is or becomes defined as a "hazardous waste," "hazardous
substance," "hazardous material," pollutant, or contaminant under any applicable law.
Consultant shall not be responsible for detecting or remediating (i) any pre-existing
conditions at the project site or other property of OC San or (ii) any structural or latent defects
or other defects in design or construction of a facility or manufacturing defects in equipment
at the property, whether pre-existing or arising during the Agreement Term.
28. Dispute Resolution.
28.1 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.
28.2 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 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
Professional Consultant Services Agreement 10 of 14 Specification No. CS-2022-1336
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connection with the arbitration proceeding pursuant to 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.
29. 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 (a) cancel the Agreement; (b) recover whatever amount of the purchase price
OC San has paid, and/or (c) "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 (c), 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 damages.
30. 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
the affected 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 of the Parties.
31. Termination.
31.1 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) through 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 through the date
of termination.
31.2 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 for any other default of this Agreement.
31.3 OC San may also immediately terminate this Agreement for default, 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 the total amount of compensation exceeds the amount authorized under this
Agreement.
31.4 All OC San's property in the possession or control of Consultant shall be returned by
Consultant to OC San on demand or at the expiration or termination of this Agreement,
whichever occurs first.
Professional Consultant Services Agreement 11 of 14 Specification No. CS-2022-1336
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32. Attorney's Fees. If any action at law or in equity 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 the prevailing party may be
entitled.
33. Waiver. The waiver by 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.
34. 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.
35. Survival. The provisions of this Agreement dealing with payment, warranty, indemnity, and
forum for enforcement shall survive expiration or early termination of this Agreement.
36. 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 the County of Orange in the
event any action is brought in connection with this Agreement or the performance thereof.
37. Notices.
37.1 All notices under this Agreement must be in writing. Written notice shall be delivered
by personal service, by electronic telecommunication, 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. 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: Jessica Vu
Buyer
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, CA 92708
JVu(a ocsan.gov
Consultant: Eric H. Stang
Senior Managing Director
CBRE, Inc.
2000 Town Center, Suite 2200
Southfield, MI 48075
Eric. Stanq(a)-CBRE.com
37.2 Each party shall provide the other party written notice of any change in address as
soon as practicable.
Professional Consultant Services Agreement 12 of 14 Specification No. CS-2022-1336
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38. Read and Understood. By signing this Agreement, Consultant represents that it has read
and understood the terms and conditions of the 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. Entire Agreement. This Agreement constitutes the entire agreement of the Parties and
supersedes all prior written or oral communications and all contemporaneous oral
agreements, understandings, and negotiations between the Parties with respect to the
subject matter hereof.
[Intentionally left blank. Signatures follow on the next page.]
Professional Consultant Services Agreement 13 of 14 Specification No. CS-2022-1336
Revision 022822
IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this
Agreement to be signed by their duly authorized representatives.
Dated:
Dated:
Dated:
Dated:
CMM
ORANGE COUNTY SANITATION DISTRICT
By:
Chad P. Wanke
Board Chairman
By:
Kelly A. Lore
Clerk of the Board
By:
Ruth Zintzun
Purchasing & Contracts Manager
CBRE, INC.
By:
Print Name and Title of Officer
Professional Consultant Services Agreement 14 of 14 Specification No. CS-2022-1336
Revision 022822
Administration Building
ADMINISTRATION COMMITTEE 10844 Ellis Avenue
SAIV Fountain Valley, CA 92708
(714) 593 7433
ORANGE COUNTY SANITATION DISTRICT
Agenda Report
File #: 2022-2651 Agenda Date: 12/14/2022 Agenda Item No: 4.
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
MANAGED COPY CENTER SERVICES CHANGE ORDER
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION:
A. Approve a Change Order to add $25,000 to Purchase Order 107521-OB for ARC Document
Solutions to provide copy center services in accordance with the scope of work and terms and
conditions of Specification No. S-2020-1177BD, for a new total amount not to exceed
$115,000 for the current contract year (January 1, 2022-December 31, 2022); and
B. Approve three optional one-year renewals for a total amount not to exceed $115,000 per year.
1 :(r1:19111 Z I III]
Orange County Sanitation District (OC San) uses an in-house Copy Center that provides a variety of
printing services to all OC San departments. The location of the Copy Center is in the Administration
Building at Plant No. 1 and measures approximately 20 feet by 20 feet. ARC Document Solutions
covers all labor, tools, equipment, and materials necessary to provide quality, complete, and reliable
printing, copying, distribution, and related services to OC San.
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
PROBLEM
The original PO amount issued for $90,000 was sufficient to cover copy center services for the first
year of the contract, however, since staff has returned to office, usage of the copy center has
increased. It is estimated that the costs for subsequent renewal years of this contract will increase to
slightly over $100,000, which will require the approval of the Administration Committee.
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File #: 2022-2651
PROPOSED SOLUTION
Agenda Date: 12/14/2022 Agenda Item No: 4.
Increase the PO amount by $25,000 for a new total amount not to exceed $115,000 to cover the
current year and approve the same amount for all subsequent renewal periods.
TIMING CONCERNS
Prompt action is required to pay the final invoice of the current contract term.
RAMIFICATIONS OF NOT TAKING ACTION
A final invoice for this contract term will become delinquent and services for 2023 will need to be
reduced.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
CEQA
[HE
FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San's Purchasing Ordinance. This item has been
budgeted. (FY2022-23 & 2023-24 Budget, Section 8, Page 49, Information Technology Capital
Program (M-MC-IT)).
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 Building
ADMINISTRATION COMMITTEE 10844 Ellis Avenue
SAIV Fountain Valley, CA 92708
(714) 593 7433
ORANGE COUNTY SANITATION DISTRICT
Agenda Report
File #: 2022-2655 Agenda Date: 12/14/2022 Agenda Item No: 5.
FROM: James D. Herberg, General Manager
Originator: Lan C. Wiborg, Director of Environmental Services
SUBJECT:
CONTRACTING AQUATIC BIOASSAY & CONSULTING LABORATORIES, INC. FOR TAXONOMIC
SERVICES
GENERAL MANAGER'S RECOMMENDATION
IV:tole] 1TAIf•1a101�7_,11[61,01M - • i 0FIrmi3.1: 1 01 o a 91 Ragre= on
A. Approve a General Services Contract to Aquatic Bioassay & Consulting Laboratories, Inc. to
provide services for sample processing and taxonomic identification of ocean bottom -dwelling
animals as required by Orange County Sanitation District's NPDES ocean discharge permit,
Specification No. S-2022-136613D, for a total amount not to exceed $200,000 for the period
beginning March 1, 2023, through February 29, 2024, with four (4) one-year renewal options;
and
B. Approve an annual contingency of $20,000 (10%).
BACKGROUND
In accordance with Orange County Sanitation District's (OC San) ocean discharge permit (Order No.
R8-2021-0010, NPDES Permit No. CA0110604), OC San is required to assess the health of ocean
bottom -dwelling animal communities in the monitoring area. To achieve this, these animals are
collected from the ocean floor (i.e., from sediment samples), screened from the sediment, sorted into
broad taxonomic groups, and then further identified to species. The number and types of species
present are used as indicators for determining the health of the ocean environment. In a typical
program year, this assessment will include approximately 30,000 animals.
Ocean -bottom samples are typically collected on a quarterly basis across 11 sites and annually from
11 additional sites, for a total of 55 samples. The collection area covers approximately 90 square
miles surrounding OC San's ocean outfall. Additionally, during the first quarter of fiscal year 2023-
2024, OC San will be participating in a permit -required Southern California Bight Regional Monitoring
Survey (Bight 2023) that occurs on a 5-year cycle. The Bight 2023 effort will require analyzing
specimens from as many as 44 new regional sites. It is anticipated that the Bight 2023 assessment
will add approximately 25,000 more animals to the sorting effort and as -needed taxonomic
identification.
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File #: 2022-2655 Agenda Date: 12/14/2022 Agenda Item No: 5.
The sorting of ocean -bottom animals is laborious. The first step of the laboratory process involves
removing the animals from the rocks and other debris in each sample. The animals are then sorted
into five major taxonomic groups (i.e., worms, snails, sea stars, shrimp, and miscellaneous species)
and prepared for further identification by OC San staff and a specialized marine taxonomic
identification service.
Due to the labor-intensive and episodic nature of the sorting process, OC San has utilized outside
contractors to perform this function for decades in order to maximize cost-effectiveness and manage
staff workload.
RELEVANT STANDARDS
• Ensure the public's money is wisely spent
• Sustain 1, 5, 20-year planning horizons
• Comply with environmental permit requirements
PROBLEM
OC San is mandated by its ocean discharge permit to monitor and report annually on animal
community health in the ocean environment that receives the treated wastewater effluent. The
Ocean Monitoring Program is not sufficiently staffed to completely perform all ocean animal
assessments in-house, including the sorting and identification of all species, and required quality
assurance program elements. Therefore, additional outside contractor support continues to be
necessary to allow our program to meet this extensive environmental monitoring requirement.
PROPOSED SOLUTION
A contract with Aquatic Bioassay & Consulting Laboratories, Inc. will provide the skill set necessary to
meet OC San's permit requirements.
TIMING CONCERNS
The current sorting and taxonomy contract is set to expire February 28, 2023. Samples must be
collected in January -March 2023 and April -June 2023 per OC San's ocean discharge permit
requirements and will need to be promptly sorted and analyzed to meet taxonomic, data analysis,
and reporting requirements for the 2022-23 Marine Monitoring Annual Report submittal to regulators.
RAMIFICATIONS OF NOT TAKING ACTION
If ocean discharge permit compliance is not met for receiving waters monitoring, OC San could be
subject to enforcement action and daily penalties not to exceed $25,000 for each violation in addition
to other actions deemed appropriate by the EPA and Regional Water Quality Control Board
(RWQCB).
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N/A
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File #: 2022-2655 Agenda Date: 12/14/2022 Agenda Item No: 5.
ADDITIONAL INFORMATION
On October 4, 2022, OC San issued a Notice Inviting Bids for taxonomic sorting and as -needed
identification services. OC San received only one responsive bid from Aquatic Bioassay &
Consulting Laboratories, Inc. for a total amount of $371,470 for the maximum possible sorting and
taxonomic identification services that could be required under this contract during any given year.
However, not all identification services will be required in one contract term because of the work
performed in-house. Therefore, staff is recommending award of the Contract to Aquatic Bioassay &
Consulting Laboratories, Inc. for a total amount not to exceed $200,000 for the first contract term in
FY2023-2024, which will encompass both core monitoring and Bight 2023 regional sample
requirements. During the subsequent years, sorting and as needed identification will be required
only for permit -required core monitoring and is estimated to average $76,000 annually, ranging from
$60,000 to $110,000 depending on the permit requirements for each contract year.
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San's Purchasing Ordinance. This item has been
budgeted FY 2022-23 Budget, Line item: Page 48, Operating Expense, Research & Monitoring).
Date of Approval Contract Amount Contingency
12/15/2022 $200,000 $20,000
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda
package:
• General Services Contract
Orange County Sanitation District Page 3 of 3 Printed on 12/6/2022
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GENERAL SERVICES CONTRACT
Benthic Infauna Sorting and Taxonomic Services
Specification No. S-2022-1366BD
This GENERAL SERVICES CONTRACT (hereinafter referred to as "Contract"), is made and entered
into as of the date fully executed below, by and between Orange County Sanitation District
(hereinafter referred to as "OC San") and Aquatic Bioassay & Consulting Laboratories, Inc.
(hereinafter referred to as "Contractor"), and collectively referred to herein as the "Parties."
RECITALS
WHEREAS, OC San desires to retain the services of Contractor for benthic infauna sorting and
taxonomic services ("Services") as described in Exhibit "A" attached hereto and incorporated herein
by this reference; and
WHEREAS, Contractor is qualified to perform the Services by virtue of experience, training,
education, and expertise; and
WHEREAS, OC San desires to engage Contractor to provide the Services; and
WHEREAS, OC San selected Contractor to provide the Services in accordance with Ordinance No.
OC SAN-56; and
WHEREAS, on December 15, 2022, OC San's Board of Directors, by minute order, authorized
execution of this Contract.
NOW, THEREFORE, in consideration of the above recitals and the mutual promises and benefits
specified below, the Parties agree as follows:
1. General.
1.1 This Contract and all exhibits hereto are made by OC San and the Contractor.
1.2 The following exhibits, in order of precedence, are incorporated by reference and made
part of this Contract.
Exhibit "A" —
Scope of Work
Exhibit "B" —
Bid Price Form
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 Contract and
any of the provisions of the exhibits hereto, the provisions in the Contract shall control
and thereafter the provisions in the document highest in precedence shall be controlling.
1.4 Except as expressly provided otherwise, OC San accepts no liability for any expenses,
losses, or actions incurred or undertaken by Contractor as a result of work performed in
anticipation of acquisition of the Services by OC San.
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1.5 Work Hours: All work or meetings with OC San staff shall be scheduled Monday through
Friday, between the hours of 7:30 a.m. and 3:30 p.m.
1.6 Days: Shall mean calendar days, unless otherwise noted.
1.7 OC San holidays (non -working days) are as follows: New Year's Day, Martin Luther King,
Jr. Day, Presidents' Day, Memorial Day, Independence Day, Labor Day, Veterans Day,
Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day.
1.8 Work: Shall mean all work, labor, and materials necessary to provide the Services.
1.9 The provisions of this Contract may be amended or waived only by an amendment
executed by authorized representatives of both Parties.
1.10 The various headings in this Contract are inserted for convenience only and shall not
affect the meaning or interpretation of this Contract or any paragraph or provision hereof.
2. Scope of Work.
2.1 Contractor shall perform the Services identified in Exhibit "A" in accordance with generally
accepted industry and professional standards.
2.2 Modifications to Scope of Work. OC San shall have the right to modify the Scope of Work
at any time. All modifications must be made by an amendment signed by both Parties.
2.3 Familiarity with Work. By executing this Contract, Contractor warrants that: (a) it has
investigated the work to be performed; and (b) it understands the facilities, difficulties,
and restrictions of the work under this Contract. Should Contractor discover any latent
or unknown condition 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 Contractor's risk, until written instructions are received from OC San.
2.4 Performance. Time is of the essence in the performance of the provisions hereof.
3. Contract Term.
3.1 The term of this Contract shall be for one (1) year commencing on March 1, 2023, and
continuing through February 29, 2024.
3.2 Renewals. At its sole discretion, OC San may exercise the option to renew this Contract
for up to four (4) one-year periods. This Contract may be renewed by an OC San
Purchase Order. OC San shall have no obligation to renew the Contract nor to give a
reason if it elects not to renew it.
3.3 Extensions. The term of this Contract may be extended only by an amendment signed
by both Parties.
4. Compensation.
4.1 As compensation for the Services provided under this Contract, OC San shall pay
Contractor a total amount not to exceed Two Hundred Thousand Dollars ($200,000.00).
4.2 Contractor shall provide OC San with all required premiums and/or overtime work at no
charge beyond the amount specified above.
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5. Payments and Invoicing.
5.1 OC San shall pay itemized invoices for work completed in accordance with Exhibit "A" at
the prices identified in Exhibit "B" thirty (30) days from receipt of the invoice and after
approval by OC San's Project Manager or designee. OC San shall be the determining
party, in its sole discretion, as to whether the Services have been satisfactorily completed.
5.2 Contractor shall submit its invoices to OC San Accounts Payable by electronic mail to
APStaff(cD_OCSan.gov. In the subject line include "INVOICE" and the Purchase Order
Number.
6. California Department of Industrial Relations Registration and Record of Wages.
6.1 To the extent Contractor's employees and/or its subcontractors perform work related to
this Contract for which Prevailing Wage Determinations have been issued by the
California Department of Industrial Relations (DIR) as more specifically defined under
Labor Code section 1720 et seq., prevailing wages are required to be paid for applicable
work under this Contract. It is Contractor's responsibility to interpret and implement any
prevailing wage requirements and Contractor agrees to pay any penalty or civil damages
resulting from a violation of the prevailing wage laws.
6.2 Contractor and its subcontractors shall comply with the registration requirements of Labor
Code section 1725.5. Pursuant to Labor Code section 1771.4(a)(1), the work is subject
to compliance monitoring and enforcement by the California Department of Industrial
Relations (DIR).
6.3 Pursuant to Labor Code section 1773.2, a copy of the prevailing rate of per diem wages
is available upon request at OC San's principal office. The prevailing rate of per diem
wages may also be found at the DIR website for prevailing wage determinations at
http://www.dir.ca.gov/DLSR/PWD.
6.4 Contractor and its subcontractors shall comply with the job site notices posting
requirements established by the Labor Commissioner per Title 8, California Code of
Regulations section 16461(e). Pursuant to Labor Code sections 1773.2 and
1771.4(a)(2), Contractor shall post a copy of the prevailing rate of per diem wages at the
job site.
6.5 Contractor and its subcontractors shall maintain accurate payroll records and shall
comply with all the provisions of Labor Code section 1776. Contractor and its
subcontractors shall submit payroll records to the Labor Commissioner pursuant to Labor
Code section 1771.4(a)(3). Pursuant to Labor Code section 1776, the Contractor and its
subcontractors shall furnish a copy of all certified payroll records to OC San and/or the
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. Pursuant to Labor Code section 1776(h),
penalties for non-compliance with a request for payroll records may be deducted from
progress payments.
6.5.1 As a condition to receiving payments, Contractor agrees to present to OC San,
along with any request for payment, all applicable and necessary certified payrolls
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and other required documents for the period covering such payment request.
Pursuant to Title 8, California Code of Regulations section 16463, OC San shall
withhold any portion of a payment, up to and including the entire payment amount,
until certified payroll forms and any other required documents are properly
submitted. In the event certified payroll forms do not comply with the
requirements of Labor Code section 1776, OC San may continue to withhold
sufficient funds to cover estimated wages and penalties under the Contract.
6.6 The Contractor and its subcontractors shall comply with Labor Code section 1774 and
section 1775. Pursuant to Labor Code section 1775, the Contractor and any of its
subcontractors shall forfeit to OC San a penalty of not more than two hundred dollars
($200) for each calendar day, or portion thereof, for each worker paid less than the
prevailing rates as determined by the DIR for the work or craft in which the worker is
employed for any work.
6.6.1 In addition to the penalty and pursuant to Labor Code section 1775, the difference
between the prevailing wage rates and the amount paid to each worker for each
calendar day or portion thereof for which each worker was paid less than the
prevailing wage rate shall be paid to each worker by the Contractor or its
subcontractor.
6.7 Contractor and its subcontractors shall comply with Labor Code sections 1810 through
1815. Contractor and its subcontractors shall restrict working hours to eight (8) hours per
day and forty (40) hours per week, except that work performed in excess of those limits
shall be permitted upon compensation for all excess hours worked at not less than one
and one-half (1.5) times the basic rate of pay, as provided in Labor Code section 1815.
The Contractor shall forfeit, as a penalty to OC San, twenty-five dollars ($25) per worker
per calendar day during which such worker is required or permitted to work more than
eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in
violation of Labor Code sections 1810 through 1815.
6.8 Contractor and its subcontractors shall comply with Labor Code sections 1777.5, 1777.6,
and 1777.7 concerning the employment of apprentices by Contractor or any
subcontractor.
6.9 Contractor shall include, at a minimum, a copy of the following provisions in any contract
it enters into with any subcontractor: Labor Code sections 1771, 1771.1, 1775, 1776,
1777.5, 1810, 1813, 1815, 1860, and 1861.
6.10 Pursuant to Labor Code sections 1860 and 3700, the Contractor and its subcontractors
will be required to secure the payment of compensation to employees. Pursuant to Labor
Code section 1861, Contractor, by accepting this contract, certifies that:
"I am aware of the provisions of section 3700 of the Labor Code which require
every employer to be insured against liability for workers' compensation or to
undertake self-insurance in accordance with the provisions of that code, and I will
comply with such provisions before commencing the performance of the work of
this contract."
Contractor shall ensure that all its contracts with its subcontractors provide the provision
above.
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7. Damage to OC San's Property. Any of OC San's property damaged by Contractor, any
subcontractor, or by the personnel of either will be subject to repair or replacement by
Contractor at no cost to OC San.
8. Freight (F.O.B. Destination). Contractor assumes full responsibility for all transportation,
transportation scheduling, packing, handling, insurance, and other services associated with
delivery of all products deemed necessary under this Contract.
9. Audit Rights. Contractor agrees that, during the term of this Contract and for a period of three
(3) years after its expiration or termination, OC San shall have access to and the right to
examine any directly pertinent books, documents, and records of Contractor relating to the
invoices submitted by Contractor pursuant to this Contract.
10. Contractor Safety Standards and Human Resources Policies. OC San requires Contractor
and its subcontractor(s) to follow and ensure their employees follow all Federal, State, and
local regulations as well as the Contractor Safety Standards while working at OC San locations.
If, during the course of the Contract, it is discovered that the Contractor Safety Standards do
not comply with Federal, State, or local regulations, the Contractor is required to follow the
most stringent regulatory requirement at no additional cost to OC San. Contractor, its
subcontractors, and all of their employees shall adhere to the safety requirements in Exhibit
"A," all applicable Contractor Safety Standards in Exhibit "D," and the Human Resources
Policies in Exhibit "E."
11. Insurance. Contractor and all its subcontractors shall purchase and maintain, throughout the
term of this Contract and any periods of warranty or extensions, insurance in amounts equal
to the requirements set forth in the signed Exhibit "C" — Determined Insurance Requirement
Form. Contractor shall not commence work under this Contract until all required insurance is
obtained in a form acceptable to OC San, nor shall Contractor allow any subcontractor to
commence service pursuant to a subcontract until all insurance required of the subcontractor
has been obtained. Failure to obtain and maintain the required insurance coverage shall result
in termination of this Contract.
12. Indemnification and Hold Harmless Provision. Contractor shall assume all responsibility
for damages to property and/or injuries to persons, including accidental death, which may arise
out of or may be caused by Contractor's Services under this Contract, or by its
subcontractor(s), or by anyone directly or indirectly employed by Contractor, and whether such
damage or injury shall accrue or be discovered before or after the termination of the Contract.
Except as to the sole active negligence of or willful misconduct of OC San, Contractor 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
Contractor's performance under the Contract, 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 Contract, and/or (c) on account of any goods
and services provided under this Contract. This indemnification provision shall apply to any
acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on
the part of Contractor or anyone employed by or working under Contractor. To the maximum
extent permitted by law, Contractor'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
General Services Contract 5 of 10 Specification No. S-2022-1366BD
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negligent; or which otherwise assert that the parties to be defended are responsible, in whole
or in part, for any loss, damage, or injury. Contractor 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 Contract.
13. Independent Contractor. The relationship between the Parties hereto is that of an
independent contractor and nothing herein shall be deemed to make Contractor an OC San
employee. During the performance of this Contract, Contractor and its officers, employees,
and agents shall act in an independent capacity and shall not act as OC San's officers,
employees, or agents. Contractor and its officers, employees, and agents shall obtain no rights
to any benefits which accrue to OC San's employees.
14. Subcontracting and Assignment. Contractor shall not delegate any duties nor assign any
rights under this Contract without the prior written consent of OC San. Any such attempted
delegation or assignment shall be void.
15. Disclosure. Contractor agrees not to disclose, to any third party, data or information
generated from this Contract without the prior written consent from OC San.
16. Non -Liability of OC San Officers and Employees. No officer or employee of OC San shall
be personally liable to Contractor, 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 Contractor or to its successor,
or for breach of any obligation under the terms of this Contract.
17. Third -Party Rights. Nothing in this Contract shall be construed to give any rights or benefits
to anyone other than OC San and Contractor.
18. Applicable Laws and Regulations. Contractor shall comply with all applicable Federal, State,
and local laws, rules, and regulations. Contractor also agrees to indemnify and hold OC San
harmless from any and all damages and liabilities assessed against OC San as a result of
Contractor's noncompliance therewith. Any provision required by law to be included herein
shall be deemed included as a part of this Contract whether or not specifically included or
referenced.
19. Licenses, Permits, Ordinances, and Regulations. Contractor represents and warrants to
OC San that it has obtained all licenses, permits, qualifications, and approvals of whatever
nature that are legally required to provide the Services. Any and all fees required by Federal,
State, County, City, and/or municipal laws, codes, and/or tariffs that pertain to the work
performed under this Contract will be paid by Contractor.
20. Regulatory Requirements. Contractor shall perform all work under this Contract in strict
conformance with applicable Federal, State, and local regulatory requirements including, but
not limited to, 40 CFR 122, 123, 124, 257, 258, 260, 261, and 503, Title 22, 23, and Water
Codes Division 2.
21. Environmental Compliance. Contractor shall, at its own cost and expense, comply with all
Federal, State, and local environmental laws, regulations, and policies which apply to the
Contractor, its subcontractors, and the Services, including, but not limited to, all applicable
Federal, State, and local air pollution control laws and regulations.
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22. South Coast Air Quality Management District's Requirements. It is Contractor's
responsibility to ensure that all equipment furnished and installed be in accordance with the
latest rules and regulations of the South Coast Air Quality Management District (SCAQMD).
All Contract work practices, which may have associated emissions such as sandblasting, open
field spray painting, or demolition of asbestos containing components or structures shall
comply with the appropriate rules and regulations of SCAQMD.
23. Warranties. Contractor's Warranty (Guarantee): If within a one (1) year period of completion
of all work specified in Exhibit "A," OC San informs Contractor that any portion of the Services
provided fails to meet the standards required under this Contract, Contractor shall, within the
time agreed to by OC San and Contractor, take all such actions as are necessary to correct or
complete the noted deficiency(ies) at Contractor's sole expense.
24. Dispute Resolution.
24.1 In the event of a dispute as to the construction or interpretation of this Contract, 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.
24.2 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 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 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.
25. Remedies. In addition to other remedies available in law or equity, if the Contractor fails to
make delivery of the goods and Services or repudiates its obligations under this Contract, or if
OC San rejects the goods or Services or revokes acceptance of the goods and Services, OC
San may (a) cancel the Contract; (b) recover whatever amount of the purchase price OC San
has paid, and/or (c) "cover" by purchasing, or contracting to purchase, substitute goods and
Services for those due from Contractor. In the event OC San elects to "cover" as described in
(c), OC San shall be entitled to recover from Contractor as damages the difference between
the cost of the substitute goods and Services and the Contract price, together with any
incidental or consequential damages.
26. Force Maieure. 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 the
affected 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 of the Parties.
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27. Termination.
27.1 OC San reserves the right to terminate this Contract 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, Contractor shall immediately discontinue all work under this Contract
(unless the notice directs otherwise). OC San shall thereafter, within thirty (30) days, pay
Contractor for work performed (cost and fee) through the date of termination. Contractor
expressly waives any claim to receive anticipated profits to be earned during the
uncompleted portion of this Contract. Such notice of termination shall terminate this
Contract and release OC San from any further fee, cost, or claim hereunder by Contractor
other than for work performed through the date of termination.
27.2 OC San reserves the right to terminate this Contract immediately upon OC San's
determination that Contractor is not complying with the Scope of Work requirements, if
the level of service is inadequate, or for any other default of this Contract.
27.3 OC San may also immediately terminate this Contract for default, in whole or in part, by
written notice to Contractor:
■ if Contractor becomes insolvent or files a petition under the Bankruptcy Act; or
■ if Contractor sells its business; or
■ if Contractor breaches any of the terms of this Contract; or
■ if the total amount of compensation exceeds the amount authorized under this
Contract.
27.4 All OC San's property in the possession or control of Contractor shall be returned by
Contractor to OC San on demand or at the expiration or early termination of this Contract,
whichever occurs first.
28. Attorney's Fees. If any action at law or in equity or if any proceeding in the form of an
Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this
Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs, and
necessary disbursements in addition to any other relief to which the prevailing party may be
entitled.
29. Waiver. The waiver by either party of any breach or violation of, or default under, any provision
of this Contract shall not be deemed a continuing waiver by such party of any other provision
or of any subsequent breach or violation of this Contract or default thereunder. Any breach by
Contractor 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. Severability. If any section, subsection, or provision of this Contract; or any agreement or
instrument contemplated hereby; or the application of such section, subsection, or provision is
held invalid, the remainder of this Contract 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.
31. Survival. The provisions of this Contract dealing with payment, warranty, indemnity, and forum
for enforcement shall survive expiration or early termination of this Contract.
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32. Governing Law. This Contract shall be governed by and interpreted under the laws of the
State of California and the Parties submit to jurisdiction in the County of Orange in the event
any action is brought in connection with this Contract or the performance thereof.
33. Notices.
33.1 All notices under this Contract must be in writing. Written notice shall be delivered by
personal service, by electronic telecommunication, 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.
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: Donald Herrera
Senior Buyer
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, CA 92708
DHerrera(a).ocsan.gov
Contractor: Joe Freas
President
Aquatic Bioassay & Consulting Laboratories, Inc.
29 N. Olive Street
Ventura, CA 93001
Joe(aDAguaticBioassay.com
33.2 Each party shall provide the other party written notice of any change in address as soon
as practicable.
34. Read and Understood. By signing this Contract, Contractor represents that it has read and
understood the terms and conditions of the Contract.
35. Authority to Execute. The persons executing this Contract on behalf of the Parties warrant
that they are duly authorized to execute this Contract and that by executing this Contract, the
Parties are formally bound.
36. Entire Agreement. This Contract constitutes the entire agreement of the Parties and
supersedes all prior written or oral communications and all contemporaneous oral agreements,
understandings, and negotiations between the Parties with respect to the subject matter
hereof.
[Intentionally left blank. Signatures follow on the next page.]
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IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this
Contract to be signed by their duly authorized representatives.
Dated:
Dated:
Dated:
Dated:
CMM
ORANGE COUNTY SANITATION DISTRICT
By:
Chad P. Wanke
Chair, Board of Directors
By:
Kelly A. Lore
Clerk of the Board
By:
Ruth Zintzun
Purchasing & Contracts Manager
AQUATIC BIOASSAY & CONSULTING
LABORATORIES, INC.
By:
Print Name and Title of Officer
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EXHIBIT A
SCOPE OF WORK
For
Benthic Infauna Sorting and Taxonomic Services
EXHIBIT A Specification No. S-2022-1366BD
SCOPE OF WORK
Benthic Infauna Sorting and Taxonomic Services
SPECIFICATION NO. S-2022-1366BD
EXECUTIVE SUMMARY / OVERVIEW
The Orange County Sanitation District (OC San) operates the third largest wastewater agency
west of the Mississippi River. Since 1954, we have 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 we treat approximately 185 million gallons of wastewater, enough water to fill
Anaheim stadium over two and a quarter times. About 80 percent (80%) of the wastewater
comes from homes — sinks, toilets, showers, laundry, and dishwashers. The remaining come
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.
Our facilities include 396 miles of sewer pipes, located throughout the county, and two (2)
treatment plants — one (1) in Fountain Valley, CA and the other in Huntington Beach, CA —
where wastewater is treated in accordance with strict state and federal standards.
Our employees are on duty protecting health and the environment by ensuring the sewer
system efficiently operates 24 hours a day, 7 days a week and 365 days a year. We are very
proud of the job we do and take pride in providing our customers with quality service.
Purpose
OC San requires the services of a Service Provider for the sorting and taxonomic
identification of benthic infauna samples. In addition, identification of trawl -caught
macroinvertebrates is required on an ad -hoc, as -needed basis.
2 Description
Samples are collected as a requirement of OC San's Ocean Monitoring Program as
specified in its National Pollutant Discharge Elimination System (NPDES) ocean
discharge permit. Specifically, sediment samples for infauna community analysis are
collected four (4) times a year from stations located on the southern portion of the
San Pedro Shelf, California. Community analysis requires that the organisms be
separated (sorted) from the sediments. The Core infauna samples are collected from
three (3) distinct sets of stations based on monitoring frequency required by the
NPDES permit: Quarterly, Annual, and Quinquennial. The Quarterly samples are
collected as single samples from eleven (11) stations ranging from 52 — 65 meters in
depth, four (4) times a year. These four (4) periods are summer (July -September),
fall (October -December), winter (January -March) and spring (April -June). The Annual
samples are collected during the summer only and consist of eleven (11) additional
stations ranging from 52 — 65 meters with one (sample per station). The
Quinquennial samples are collected once in every 5-year permit cycle, in the
summer, and consist of thirty-five (35) stations ranging from 40-300 meters (Table 1).
Quinquennial, Annual and Quarterly station data, e.g., maps, abundances, sediment
characterizations, etc., can be requested from OC San Ocean Monitoring. While
most stations consist of fine sand and silt, some stations may have significant shell
hash.
Trawl samples for macroinvertebrate community analysis are collected twice yearly
from fourteen (14) stations which are also located on the southern portion of the San
Pedro Shelf, California. Community analysis is conducted from one (1) trawl at each
EXHIBIT A Page 1 of 11 Specification No. S-2022-1366BD
station and the analysis requires that the organisms be identified to the lowest taxon
possible. The Core trawl monitoring samples are collected from two (2) sets of
stations: Semi-annual and Annual. The Semi-annual trawls consist of six (6) stations
ranging from 52 — 65 meters depth collected twice a year. These two (2) periods are
summer (July -September) and winter (January -March). The Annual samples are
collected during the summer only and consist of eight (8) stations ranging from 35-
300 meters (Table 2). Semi-annual and Annual station data, e.g., maps,
abundances, etc., can be requested from OC San Ocean Monitoring.
In addition, OC San will be participating in Southern California Bight Regional Marine
Monitoring Surveys (Regional Surveys), every 5 years beginning in 2023 with up to
forty-four (44) benthic samples and a maximum of 21 trawl sites that are to be
collected, sorted and identified. The sampling locations for these samples are yet to
be determined and may come from a wider variety of habitats including, but not
limited to, deep basins, bays, and estuaries as well wider geographical range within
the Southern California Bight including the Channel Islands (Table 1).
3 Project/Work Elements
OC San requests sorting and taxonomic services outlined in Table 1. Sorting and
taxonomic specifications are outlined in Section 5 and Section 6 respectively.
OC San also requests taxonomic services to perform quality assurance on a limited
number of infauna samples identified by OC San staff (see Section 8.2 Taxonomic
QA/QC).
OC San also requests ad hoc taxonomic services for trawl macro invertebrates
outlined in Table 2. Taxonomic specifications for ad -hoc samples are outlined in
Sections 6.
NOTE:
The estimated sample number and sample frequency per Exhibit B — Online Bid
Price Form, are based on actual usage from the past twelve (12) months and
projected for Regional Surveys (Table 1). These estimates are for bidding purposes
only. OC San does not guarantee the use of the total quantity of services for all
projects listed in Exhibit B — Online Bid Price Form.
EXHIBIT A Page 2 of 11 Specification No. S-2022-1366BD
Table 1. Survey matrix for regular Core monitoring benthic infauna sampling indicating estimated
services needed
Number of
Survey
Samples
Depth range for
Total per
Sorting/
Survey Type
Frequency
period(s)
collected
samples (m)
year
Taxonomy
per survey
Core
Four times
Summer, Fall
11
52-65
44
S/T
Quarterly
yearly
Winter & Spring
Core Annual
Once yearly
Summer
11
52-65
11
S/T
Once every
Quinquennial
permit cycle
Summer
35
40-300
35
S/T
(5 years)'
Regional Survey
Once every
Summer
44
3
1-1000
44
S/T
5 years2
Total per year (maximum)
134
1 Next Quinquennial survey slated no earlier than the 2026-27 survey year
z Next Regional Survey scheduled for 2023
'Actual depths and habitat ranges for regional stations are to be determined
Table 2. Survey matrix for regular Core monitoring trawl macroinvertebrate sampling indicating
estimated services needed
Survey
Number of
Depth range for
Total per
Sorting/
Survey Type
Frequency
trawls rawls persamples
(m)
year
Taxonomy
Survey
Core
Twice
Summer &
Semi-annual
yearly
Winter
6
52-65
12
T
Core Annual
Once
Summer
8
35-140
8
T
yearly
Regional Survey
Once every
Summer
21
TBD z
21
T
5 years'
total
41
1 Next Regional Survey scheduled for 2023
2Actual depths and habitat ranges for regional stations are to be determined
Benthic samples are collected by OC San with a 0.1 m2 modified Van Veen grab
sampler. Sediment samples are screened through a 1.0 mm mesh screen and the
retained organisms are gently washed into appropriate sized containers (typically
into one (1) or more 1 liter wide -mouth plastic jars).
Trawl samples are collected using a standard semi -balloon otter trawl towed for at
least 10 minutes along the ocean floor. Those animals not identified and enumerated
in the field are fixed and preserved in a similar manner as benthic samples for further
identification (FID), enumeration and weight determination.
In the field, an isotonic with seawater solution of Epsom Salts (MgSO4.7H2O) is used
to relax the organism prior to preserving in 10% formalin. After 3 — 10 days in
EXHIBIT A Page 3 of 11 Specification No. S-2022-1366BD
formalin the samples are rinsed by OC San staff with tap water and stored in 70%
ethyl alcohol. OC San packs samples according to Department of Transportation
(DOT) regulations for pickup by Service Provider. Sorted samples (grunge) shall be
returned by the Service Provider in these same containers and packaging. Trawl
animals can be returned in the same containers as they were shipped in.
4 Special Provisions
The Service Provider shall have facilities where contracted work will be performed
within a 150-mile radius of OC San 's offices located at 10844 Ellis Avenue, Fountain
Valley, California, 92708. This will provide better access to sorting and taxonomy
laboratories for possible, announced, inspections by OC San staff and limit possible
damage as well as cost of shipping samples and specimens.
The Service Provider's taxonomists will be required to maintain consistency with OC
San staff taxonomists for quality assurance purposes. In addition, they may be
required participate in regional monitoring programs as representatives of, and in
conjunction with, OC San taxonomists. Therefore, each of the consulting taxonomists
must have previously provided macrofaunal sample invertebrate species
identifications for the taxa for which they will be providing services during two (2) or
more of the following Regional Surveys: SCBPP'941, Bight'98, Bight'03, Bight'08,
Bight'13, or Bight'18 and be a member of the Southern California Association of Marine
Invertebrate Taxonomists (SCAMIT). Attendance at regular monthly meetings is
encouraged for all taxonomists. Upon request, Service Provider must provide a list of
qualifying taxonomists and written verification of their participation in a minimum of two
(2) Bight surveys and current membership in SCAMIT.
5 Sorting Specifications
All samples shall be sorted into five (5) major taxa groups (aliquots): Polychaeta,
Mollusca, Arthropoda, Echinodermata, and Miscellaneous Phyla. For the purposes of
this document Miscellaneous Phyla shall include the Subclass Echiura. They shall be
vialed or jarred together in the following manor:
• Polychaeta (1 vial minimum)
• Arthropoda (1 vial minimum)
• Mollusca (1 vial minimum)
• Echinodermata (1 vials minimum)
• Miscellaneous Phyla (1 vial minimum)
For general labeling, sample handling, and container specifications see Section 7.
Sorted animal vials and jars shall be packaged and hand delivered by station and
replicate in individual clear plastic Ziploc® bags, or equivalent. Each bag shall be
marked on the outside with the station and replicate as well as the sampling month
and year. Along with a printed chain of custody (COC) detailing the number of vials
and jars for each set of sorted samples delivered, an electronic inventory of number of
vials and individuals removed for each sample is to be compiled and submitted in the
form of a Microsoft Excel spreadsheet (version 2010 or higher; template to be
provided). This spreadsheet shall contain the following fields:
• Sample Number
• Sample Fixation
• Sample Date
• Total Number of animals (all taxa, as defined section 6)
1 Southern California Bight Pilot Project conducted in 1994
EXHIBIT A Page 4 of 11 Specification No. S-2022-1366BD
6
• Sorter Name
• Date Sorting Completed
• Overall Preservation Quality (Good, Fair, or Poor)
• Single Major Component of non -marine animal constituent(s)
wood, algae, seeds, fly larvae, fibers, coarse sand, fine sand,
material, sewage debris, micro -detritus, or other(specify))
• Number of vials for each aliquot
• Number of jars for each aliquot
(shell -hash, tubes,
pea gravel organic
The Service Provider shall deliver sorted animals in a timely manner as outlined in
Table 3.
Table 3 Benthic aliquots and ad hoc trawl macroinvertebrate identifications delivery
schedules.
Survey Type
(surveys per year)
Delivery milestones
Core Quarterly (4)
30 days after first receipt of samples per survey
Core Annual (1)
30 days after first receipt of samples per survey
Quinquennial (1)
1st half 30 days/2"d half 45 days after first receipt of samples per survey
Regional Survey (1)
15t half 30 days/2"d half 45 days after first receipt of samples per survey
Taxonomy Reporting Specifications
a. General Identification and Data Recording Guidelines:
The number of organisms reported must account for all organisms in a
sample alive at the time of collection. A corollary goal is to not count any
individual more than once. Inevitably, samples contain fragments of
organisms. Fragments of bilaterally symmetrical organisms will be identified
and counted only if the fragment includes the anterior end of the organism.
For radially symmetrical organisms (e.g., ophiuroids, anthozoans, etc.) only
fragments bearing the majority of the oral disk will be identified and counted;
while organisms such as sipunculids require the trunk (body) to be counted
— not the introvert. Care must be taken to avoid reporting empty mollusk
shells or crustacean molts.
Only soft bottom species are to be recorded. Hard -bottom epifaunal and
pelagic organisms may occur incidentally in samples and are not included in
data analyses. Their presence and number may be noted on the data sheets
and a qualifier code should accompany the record. In addition, a brief
explanatory comment is preferred. Sorters are not required to differentiate
these organisms.
Records of animals unable to be identified to species due to condition, life
stage, etc. shall be reported to the lowest level practical with explanation
noted in the comments field. Example comments include: fragment, juvenile,
crushed shell, regenerating head, missing appendages, etc. The record shall
also include the appropriate qualifiers: Juvenile, Damaged, Mutation, Colonial
Epibenthic, Pelagic Organisms, and Fouling Organisms. See Section 10 Data
Submittal Guidelines.
EXHIBIT A Page 5 of 11 Specification No. S-2022-1366BD
If specimens are removed (e.g., for voucher or for further identification (FID)),
the number of individuals shall be recorded and reason for the removal noted
in the comments field.
The taxon recorded shall follow the exact orthography and phylogeny as that
listed in the OC San's Master Species List (MSL) maintained and provided by
OC San. For those taxa not on the MSL, the Southern California Association
of Marine Invertebrate Taxonomists (SCAMIT) species list should be
consulted, when possible. The version of the list in effect will be determined
by OC San at the time of sample distribution. For those taxa not found on
either list the World Registry of Marine Species (WoRMS;
www.marinespecies.org) may be used as the authority.
If the Service Provider's taxonomists find it necessary to designate a
provisional species, the exact orthography and format shall conform to
protocols outlined in SCCWRP (2008)2 for in-house provisional taxa, e.g.,
Polycirrus sp OC1 indicates the first provisional in the genus Polycirrus from
OC San. The taxonomist shall provide documentation of said species which
shall conform with SCAMIT (2022)3 specifications for form and content.
Documentation shall be submitted with the final data set in PDF or Word
2010 or higher format.
All abundance records shall also include an exclude from Diversity notation
(yes or no) as defined by SCCWRP (2008)4.
Additionally, biomass per species shall also be recorded to the nearest gram
in the comments section of the data recording sheet for all ad hoc trawl
macroinvertebrate samples.
Each taxonomist will be responsible for identification and data entry for
assigned samples and taxa. Electronic data sheets (in the form of Excel
spreadsheets) will be provided by OC San to each taxonomist. The final form
will be supplied prior to a request for taxonomic services. This form will be
used to report all data to the OC San (Figure 1).
The Service Provide shall deliver the entire survey of identified animals and
data within 120 days of receiving the samples. Provisions for an extension
may be made with 30 days' written notice.
b. Voucher Guidelines
At a minimum, all contracting taxonomists are required to voucher one (1) or
more specimens of all species that are new to the OC San MSL, a newly
erected provisional, or not listed on the most current SCAMIT species list.
Labeling: Pre-cut form voucher labels along with instructions for completing
them will be supplied prior to a request for taxonomic services.
z SCCWRP 2008. 3.Taxonomic Analysis. Southern California Bight 2008 Regional Marine Monitoring Survey
(Bight'08) Macrobenthic (Infaunal) Sample Analysis Laboratory Manual. Southern California Coastal Water
Research Project. (www.SCCWRP.org)
3 SCAMIT 2022. SCAMIT Voucher Sheet Guidelines. (www.SCAMIT.org)
4 SCCWRP 2008. ibid.
EXHIBIT A Page 6 of 11 Specification No. S-2022-1366BD
Vialing: All specimens shall be placed into smallest vial/jar (minimum 4 dram
screw cap) into which they will fit without being damaged or distorted. All
containers shall be filled completely with 70% ethanol. If needed, smaller
specimens shall be placed in an unlabeled '/o dram shell vial with cotton stopper
(no bubbles) and then place into larger screw cap vial. See Section 7 for more
details.
7 Material and General Sample Handling Specifications
a. Preservation
The container shall be of the appropriate size so that specimens are not
crowded in the jar or vial and allow for sufficient volume of preservative, i.e.,
no less than 50% of the total container volume, and filled to the brim with
70% ethanol by volume. Full strength ethanol (95% ethanol and 5% water)
shall be diluted to the prescribed strength with distilled or de -ionized water.
Denatured ethanol, in any form, shall not be used.
b. Containers
All screw cap vials will be 4 drams or larger and shall be made of glass and
have Polyseal®-Lined Plastic Caps. Jars shall be round wide mouth jars
made of glass in 32, 16, 8, & 4 oz. sizes with lids composed of Green
Thermoset ® screw caps with foam -backed Fluoropolymer resin liner, made
by Qorpak®. Caps with paper liners are prohibited.
c. Labels
Labels inserted into the container with the animals shall be positioned so that
the specimen is not pinned between the vial or jar and the label or impede it
in anyway. Pre-printed voucher labels will be provided by OC San. All internal
labels shall be composed of 100% linen paper. Sorting labels shall too be
precut into roughly: 5 cm x 2 cm for use with 4 dram vials or larger. At a
minimum, all labels shall include the acronym "OCSD" the survey type (Semi-
annual, Annual, Bight'23), complete collection data (station and replicate,
collection date, depth in meters), aliquot name, and initials of the sorter on
out facing side. The back shall include the 7 digit sample number printed on
the external and internal label of each sample. Soft to medium pencil (e.g.,
2H) or indelible black ink (e.g., 0.5 mm Uni-ball Deluxe Micro® pen or 0.5 mm
Micron Archival Ink® pen) shall be used for recording these data onto
specimen labels. Preprinted blank labels can be used when printed on the
specified paper with laser printer for sorted samples only. OC San can
provide a template.
8 Quality Assurance/Quality Control (QA/QC)
Infaunal QA/QC are divided into two (2) parts: Sorting QA/QC, and Taxonomic
QA/QC.
a. Sorting QA/QC
Prior to delivery of aliquots, every sample is assessed in house by the
Service Provider for sorting efficacy using a statistically based sorting QA/QC
procedure. This procedure requires that the QA analyst tally the total number
of organisms removed from each sample (F). This F value is compared to
Table 4 providing 95% confidence limits for F values. The QA analyst must
identify the table F value that comes closest to the sample F value without
exceeding it. For each F value in the table there is a corresponding C value.
EXHIBIT A Page 7 of 11 Specification No. S-2022-1366BD
These (C) values provide the basis for evaluating how effectively the sorter
has processed each sample, as they represent the maximum number of
animals that can be found in the remaining portion (RP) during the resort
process before exceeding the sorting efficiency criteria. After the QA analyst
has identified the appropriate C value for this sample, 10% of the RP
(volumetrically defined) is re-examined and, if the number of animals
removed from the 10% volume was less than or equal to the table C value,
then the sample passes the designated sorting criteria, and no further resort
is necessary. However, if the number of animals found in the first 10% RP
volume is greater than the table value, the QA/QC procedure continues. The
first 10% volume of RP is kept separate and another 10% fraction is removed
for resorting. This stepped procedure continues until the sample passes or a
total of 30% of the RP has been resorted for QA/QC. If the sample still fails at
the 30% level, the entire sample is resorted by the Service Provider and
processed through another QA/QC check. This process repeats until all
samples pass.
The Service Provider shall report the results of these at the same time as the
aliquots delivery. The report (as an Excel spreadsheet) shall include for each
sample the sample number, the sorters name, total volume percentage
resorted needed to pass QA, the number of total resorts completed (if any) and
the F value.
Annually, 10% of each sorters allotment for a given survey will be randomly
selected (with a minimum of one) for complete resort by OC San staff. Sorting
efficiency shall not exceed 10% of the total animals reported. For those sorters
who exceed 10% a second sample will be randomly selected for resort. If that
samples also fails, then the contactor will be required to resort all samples
sorted by identified sorter.
b. Taxonomic QA/QC
The District's Infauna Taxonomic QA/QC Procedures are outlined in
Appendix B. As part of the Core monitoring program the contract taxonomist
may be required to participate at all levels including attending possible face to
face meetings with staff at the OC San facilities in Fountain Valley, CA.
Regional Survey QA/QC procedures are expected to be similar to Bight'185.
Participation will be mandatory for all Service Providers for those specialties
needed by OC San.
9 Storage and Return of Aliquots
All samples will be returned to OC San by 90 days after the completion of QA/QC
and reconciliation. Each survey type shall be kept together and separate from other
survey types and ship as one (1) and should include a printed COC.
10 Data Submittal Guidelines
For Core work data shall be submitted to OC San by Service Provider using the
formatted Excel 2010 spreadsheets provided by OC San (Figure 1). Regional Survey
5 SCCWRP 2018. 5. Quality Control. Southern California Bight 2018 Regional Marine Monitoring Survey (Bight'18)
Macrobenthic (Infaunal) Sample Analysis Laboratory Manual. Southern California Coastal Water Research Project.
EXHIBIT A Page 8 of 11 Specification No. S-2022-1366BD
data shall be submitted directly to the relevant Bight Committee. See SCCWRP
(2018)6 data submittal guidelines.
11 Staff Assistance
The Contractor will be assigned a single point of contact on this project. Any meetings
and/or correspondence related to this project shall be scheduled and approved by the
Project Manager.
6 SCCWRP 2018. 4. Data Submission and the Form of Taxonomic Names Southern California Bight 2018 Regional
Marine Monitoring Survey (Bight'18) Macrobenthic (Infaunal) Sample Analysis Laboratory Manual. Southern
California Coastal Water Research Project.
EXHIBIT A Page 9 of 11 Specification No. S-2022-1366BD
Figure 1 Data sheet example; actual template may vary
Infauna Data Entry
Cmise_ NA Sample 4 1843772
Station _73 SampleaxNate_ 777Y2015
Depth: 57 Nr�p#: NA
Major Taxa Arthropods Tono st J_Taxonoml
Num
Class
Order
Family
Species Name
V
_
Q
—
E E
Z
Comments
1
Eu hilomedes carcharodonta 1002DD
18
No
2
Ampellsca'gass77500
4
No
3
Am lisca care 111900
1
No
4
Ampelisca b—simulata_117DD
No
5
m sca
AIld br—ii—data 1175'
6
No
6
Ampelisca cristata cristata_12DDD
1
No
7
Am tsca hancocki 114DO
1
I
IN.
8
Ampetscapac4ica_131DD
1
No
9
Listriella oleta 1444DD
1
No
10
Byblls millsi 46000
2
No
11
Rhe o n us bicus idatus 239900
1
No
12
Rhepoxybius menziesi_24D4OO
4
No
13
Rhe o nusstenodes 2407DD
3
No
14
RhepoxynWs daboius_24DDDD
1
No
15
Munno ovum tillerae 169300
2
No
16
Mayerella banksi a_1577DD
1
No
17
Ara hura bI—iaria 29400
1
No
18
Rutiderma lomae_243400
1
No
19
Eusarsiellathominx 102400
2
No
20
Mesolampropsbispinosus_161900
11
1
IN.
EXHIBIT A Page 10 of 11 Specification No. S-2022-1366BD
Table 4 F and C values for 10 - 30% fractions (95% QC Limits, 5% Missed, 100 Split;
FRAC = The total fraction subsampled; F = The number originally found in the core; C =
Cumulative total of this and all previous samples.)
Quality Control Limits for Benthic Infauna
FRAC
F
C
FRAC
F
C
FRAC
F
C
FRAC
F
C
0.1
550
1
0.2
2058
17
0.3
834
10
0.3
2588
41
0.1
877
2
0.2
2156
18
0.3
897
11
0.3
2641
42
0.1
1168
3
0.2
2253
19
0.3
959
12
0.3
2694
43
0.1
1440
4
0.2
2350
20
0.3
1020
13
0.3
2747
44
0.1
1700
5
0.2
2446
21
0.3
1081
14
0.3
2800
45
0.1
1951
6
0.2
2541
22
0.3
1141
15
0.3
2852
46
0.1
2195
7
0.2
2636
23
0.3
1200
16
0.3
2905
47
0.1
2435
8
0.2
2731
24
0.3
1259
17
0.3
2958
48
0.1
2670
9
0.2
2825
25
0.3
1317
18
0.3
3010
49
0.1
2902
10
0.2
2919
26
0.3
1375
19
0.3
3062
50
0.1
3130
11
0.2
3012
27
0.3
1433
20
0.3
3115
51
0.1
3356
12
0.2
3105
28
0.3
1490
21
0.3
3167
52
0.1
3580
13
0.2
3198
29
0.3
1547
22
0.3
3219
53
0.1
3802
14
0.2
3291
30
0.3
1604
23
0.3
3271
54
-
-
-
0.2
3383
31
0.3
1661
24
0.3
3323
55
0.2
265
1
0.2
3475
32
0.3
1717
25
0.3
3375
56
0.2
419
2
0.2
3566
33
0.3
1773
26
0.3
3426
57
0.2
554
3
0.2
3658
34
0.3
1828
27
0.3
3478
58
0.2
680
4
0.2
3749
35
0.3
1884
28
0.3
3530
59
0.2
800
5
0.2
3840
36
0.3
1939
29
0.3
3581
60
0.2
915
6
0.2
3931
37
0.3
1994
30
0.3
3633
61
0.2
1028
7
-
-
-
0.3
2049
31
0.3
3684
62
0.2
1137
8
0.3
170
1
0.3
2103
32
0.3
3735
63
0.2
1245
9
0.3
266
2
0.3
2158
33
0.3
3787
64
0.2
1351
10
0.3
349
3
0.3
2212
34
0.3
3838
65
0.2
1455
11
0.3
427
4
0.3
2266
35
0.3
3889
66
0.2
1558
12
0.3
500
5
0.3
2320
36
0.3
3940
67
0.2
1660
13
0.3
570
6
0.3
2374
37
0.3
3991
68
0.2
1761
14
0.3
638
7
0.3
2427
38
-
-
0.2
1861
15
0.3
705
8
0.3
2481
39
-
-
0.2
1960
16
0.3
770
9
0.3
2534
40
-
-
Estimate the number sorted the first time, call it F*. Under the fraction subsampled, find the largest F that does
not exceed F*. The corresponding C is the largest number you can find in the quality control subsample and
not have to count further.
EXHIBIT A Page 11 of 11 Specification No. S-2022-1366BD
Exhibit "B"
BID PRICE FORM
5-2022-1366BD
Project Benthic Infauna Sorting and Taxonomic Services
Exhibit B
Item No.
Section
Description
Unit of Measure
Unit Price
1
Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey)
Sorting/sample- removing animals from sediments into taxa groups listed in SOW
Each
$420.00
2
Regular Monitoring Sampling- Quarterly Benthic Surveys (n=11 stations/survey)
Taxonomy/sample - Polychaeta - specific identifications of taxa to species and counts of abundance/species
Each
$535.00
3
Regular Monitoring Sampling- Quarterly Benthic Surveys (n=11 stations/survey)
Taxonomy/sample- Arthropod a- specific identifications of taxa to species and counts of abundance/species
Each
$125.00
4
Regular Monitoring Sampling- Quarterly Benthic Surveys(n=11 stations/survey)
Taxonomy/sample- Mollusca - specific identifications of taxa to species and counts of abundance/species
Each
$110.00
5
Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey)
Taxonomy/sample- Echinodermata- specific identifications of taxa to species and counts of abundance/species
Each
$75.00
6
Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey)
Taxonomy/sample- Miscellaneous Phyla- specific identifications of taxa to species and counts of abundance/species
Each
$100.00
7
Regular Monitoring Sampling- Quarterly Benthic Surveys (n=11 stations/survey)
QA Taxonomy/sample - Polychaeta - specific identifications of taxa to species and counts of abundance/species
Each
$535.00
8
Regular Monitoring Sampling- Quarterly Benthic Surveys (n=11 stations/survey)
QA Taxonomy/sample Arthropoda- specific identifications of taxa to species and counts of abundance/species
Each
$125.00
9
Regular Monitoring Sampling- Quarterly Benthic Surveys (n=11 stations/survey)
QA Taxonomy/sample- Mollusca - specific identifications of taxa to species and counts of abundance/species
Each
$110.00
10
Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey)
QA Taxonomy/sample- Echinodermata- specific identifications of taxa to species and counts of abundance/species
Each
$75.00
11
Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey)
QA Taxonomy/sample- Miscellaneous Phyla- specific identifications of taxa to species and counts of abundance/species
Each
$100.00
12
Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey)
QA Reconciliation - Polychaeta- Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist)
Hour
$102.00
13
Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey)
QA Reconciliation - Arthropoda- Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist)
Hour
$102.00
14
Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey)
QA Reconciliation - Mollusca- Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist)
Hour
$102.00
15
Regular Monitoring Sampling- Quarterly Benthic Surveys (n=11 stations/survey)
QA Reconciliation - Echinodermata - Reconciliation of disputed identifications to species and counts of abundance/species(hourly rate/taxonomist)
Hour
$102.00
16
Regular Monitoring Sampling- Quarterly Benthic Surveys (n=11 stations/survey)
QA Reconciliation- Miscellaneous Phyla- Reconciliation of disputed identifications to species and counts of abundance/species(hourly rate/taxonomist)
Hour
$102.00
17
Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey)
Voucher specimen and voucher sheet preparations per taxa
Each
$615.00
18
Regular Monitoring Sampling- Quarterly Benthic Surveys (n = 11 stations/survey)
Project Management/Survey
Each
$2,800.00
19
Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey)
Sorting/sample- removing animals from sediments into taxa groups listed in SOW
Each
$420.00
20
Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey)
Taxonomy/sample-Polychaeta- specific identifications of taxa to species and counts of abundance/species
Each
$535.00
21
Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey)
Taxonomy/sample- Arthropoda - specific identifications of taxa to species and counts of abundance/species
Each
$125.00
22
Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey)
Taxonomy/sample- Mollusca - specific identifications of taxa to species and counts of abundance/species
Each
$110.00
23
Regular Monitoring Sampling -Annual Benthic Surveys (n =11 stations/survey)
Taxonomy/sample- Echinodermata- specific identifications of taxa to species and counts of abundance/species
Each
$75.00
24
Regular Monitoring Sampling - Annual Benthic Surveys (n =11 stations/survey)
Taxonomy/sample- Miscellaneous Phyla- specific identifications of taxa to species and counts of abundance/species
Each
$100.00
25
Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey)
QA Taxonomy/sample - Polychaeta - specific identifications of taxa to species and counts of abundance/species
Each
$535.00
26
Regular Monitoring Sampling -Annual Benthic5urveys(n=11 stations/survey)
QA Taxonomy/sample Arthropoda- specific identifications of taxa to species and counts of abundance/species
Each
$125.00
27
Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey)
QA Taxonomy/sample- Mollusca - specific identifications of taxa to species and counts of abundance/species
Each
$110.00
28
Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey)
QA Taxonomy/sample - Echinodermata - specific identifications of taxa to species and counts of abundance/species
Each
$75.00
29
Regular Monitoring Sampling -Annual Benthic Surveys (n =11 stations/survey)
QA Taxonomy/sample- Miscellaneous Phyla- specific identifications of taxa to species and counts of abundance/species
Each
$100.00
30
Regular Monitoring Sampling - Annual Benthic Surveys (n =11 stations/survey)
QA Reconciliation - Polychaeta- Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist)
Hour
$102.00
31
Regular Monitoring Sampling -Annual Benthic Surveys (n =11 stations/survey)
QA Reconciliation - Arthropoda- Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist)
Hour
$102.00
32
Regular Monitoring Sampling - Annual Benthic Surveys (n =11 stations/survey)
QA Reconciliation - Mollusca- Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist)
Hour
$102.00
33
Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey)
QA Reconciliation - Echinodermata - Reconciliation of disputed identifications to species and counts of abundance/species(hourly rate/taxonomist)
Hour
$102.00
34
1 Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey)
QA Reconciliation- Miscellaneous Phyla- Reconciliation of disputed identifications to species and counts of abundance/species(hourly rate/taxonomist)
Hour
$102.00
35
Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey)
Voucher specimen and voucher sheet preparations per taxa
Each
$615.00
36
Regular Monitoring Sampling- Annual Benthic Surveys (n=11 stations/survey)
Project Management/Survey
Each
$2,800.00
37
Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey)
Sorting/sample- removing animals from sediments into taxa groups listed in SOW
Each
$420.00
38
Regular Monitoring Sampling -1/S Year Benthic Surveys (n=35 stations/survey)
Taxonomy/sample-Polychaeta- specific identifications of taxa to species and counts of abundance/species
Each
$535.00
39
Regular Monitoring Sampling -1/S Year Benthic Surveys (n=35 stations/survey)
Taxonomy/sample- Arthropoda - specific identifications of taxa to species and counts of abundance/species
Each
$170.00
40
Regular Monitoring Sampling -1/S Year Benthic Surveys (n=35 stations/survey)
Taxonomy/sample- Mollusca - specific identifications of taxa to species and counts of abundance/species
Each
$110.00
41
Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey)
Taxonomy/sample- Echinodermata- specific identifications of taxa to species and counts of abundance/species
Each
$75.00
42
Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey)
Taxonomy/sample- Miscellaneous Phyla- specific identifications of taxa to species and counts of abundance/species
Each
$125.00
43
Regular Monitoring Sampling -1/S Year Benthic Surveys (n=35 stations/survey)
QA Taxonomy/sample - Polychaeta - specific identifications of taxa to species and counts of abundance/species
Each
$535.00
44
Regular Monitoring Sampling -1/S Year Benthic Surveys (n=35 stations/survey)
QA Taxonomy/sample Arthropoda- specific identifications of taxa to species and counts of abundance/species
Each
$170.00
45
Regular Monitoring Sampling -1/S Year Benthic Surveys (n=35 stations/survey)
QA Taxonomy/sample- Mollusca - specific identifications of taxa to species and counts of abundance/species
Each
$110.00
46
Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey)
QA Taxonomy/sample- Echinodermata- specific identifications of taxa to species and counts of abundance/species
Each
$75.00
47
Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey)
QA Taxonomy/sample- Miscellaneous Phyla- specific identifications of taxa to species and counts of abundance/species
Each
$125.00
48
Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey)
QA Reconciliation - Polychaeta- Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist)
Hour
$102.00
49
Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey)
QA Reconciliation - Arthropoda- Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist)
Hour
$102.00
50
Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey)
QA Reconciliation - Mollusca- Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist)
Hour
$102.00
51
Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey)
QA Reconciliation - Echinodermata - Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist)
Hour
$102.00
52
Regular Monitoring Sampling -1/S Year Benthic Surveys (n=35 stations/survey)
QA Reconciliation- Miscellaneous Phyla- Reconciliation of disputed identifications to species and counts of abundance/species(hourly rate/taxonomist)
Hour
$102.00
53
Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey)
Voucher specimen and voucher sheet preparations per taxa
Each
$615.00
54
Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey)
Project Management/Survey
Each
$2,800.00
55
Regular Monitoring Sampling- 1/5 Year Benthic Surveys (n = 35 stations/survey)
(Blank)
N/A
56
Regular Monitoring Sampling - Semi -Annual Trawls Surveys (n=6stations/survey)
Ad hoc Taxonomy/sample-Polychaeta- specific identifications of taxa to species, counts of abundance/species, biomass/species
Each
$105.00
57
Regular Monitoring Sampling - Semi -Annual Trawls Surveys (n =6stations/survey)
Ad hoc Taxonomy/sample- Arthropoda - specific identifications of taxa to species, counts of abundance/species, biomass/species
Each
$205.00
58
Regular Monitoring Sampling - Semi -Annual Trawls Surveys (n=6stations/survey)
Ad hoc Taxonomy/sample- Mollusca - specific identifications of taxa to species, counts of abundance/species, biomass/species
Each
$105.00
59
Regular Monitoring Sampling - Semi -Annual Trawls Surveys (n = 6 stations/survey)
Ad hoc Taxonomy/sample- Echinodermata - specific identifications of taxa to species, counts of abundance/species, biomass/species
Each
$205.00
60
Regular Monitoring Sampling - Semi -Annual Trawls Surveys (n = 6 stations/survey)
Ad hoc Taxonomy/sample- Miscellaneous Phyla - specific identifications of taxa to species, counts of abundance/species, biomass/species
Each
$205.00
61
Regular Monitoring Sampling - Semi -Annual Trawls Surveys (n =6stations/survey)
Voucher specimen and voucher sheet preparations per taxa
Each
$615.00
62
Regular Monitoring Sampling - Semi -Annual Trawls Surveys (n=6stations/survey)
Project Management/Survey
Each
$1,800.00
63
Regular Monitoring Sampling - Semi -Annual Trawls Surveys (n =6stations/survey)
(Blank)
N/A
64
Regular Monitoring Sampling- Annual Trawls Surveys (n=8 stations/survey)
Ad hoc Taxonomy/sample-Polychaeta- specific identifications of taxa to species, counts of abundance/species, biomass/species
Each
$155.00
65
Regular Monitoring Sampling- Annual Trawls Surveys (n=8 stations/survey)
I Ad hoc Taxonomy/sample- Arthropoda - specific identifications of taxa to species, counts of abundance/species, biomass/species
Each
$255.00
66
Regular Monitoring Sampling- Annual Trawls Surveys (n=8 stations/survey)
Ad hoc Taxonomy/sample- Mollusca — specific identifications of taxa to species, counts of abundance/species, biomass/species
Each
$155.00
67
Regular Monitoring Sampling -Annual Trawls Surveys (n =8 stations/survey)
Ad hoc Taxonomy/sample- Echinodermata — specific identifications of taxa to species, counts of abundance/species, biomass/species
Each
$310.00
68
Regular Monitoring Sampling - Annual Trawls Surveys (n =8 stations/survey)
Ad hoc Taxonomy/sample- Miscellaneous Phyla — specific identifications of taxa to species, counts of abundance/species, biomass/species
Each
$205.00
69
Regular Monitoring Sampling - Annual Trawls Surveys (n=8 stations/survey)
Voucher specimen and voucher sheet preparations per taxa
Each
$615.00
70
Regular Monitoring Sampling - Annual Trawls Surveys (n=8 stations/survey)
Project Management/survey
Each
$1,800.00
71
Regional Monitoring Sampling - Bight Benthic Surveys (n=44 stations/survey)
Sorting/sample— removing animals from sediments into taxa groups listed in SOW
Each
$420.00
72
Regional Monitoring Sampling- Bight Benthic Surveys (n=44 stations/survey)
Taxonomy/sample-Polychaeta— specific identifications of taxa to species and counts of abundance/species
Each
$535.00
73
Regional Monitoring Sampling- Bight Benthic Surveys (n=44 stations/survey)
Taxonomy/sample- Arthropod a— specific identifications of taxa to species and counts of abundance/species
Each
$250.00
74
1 Regional Monitoring Sampling- Bight Benthic Surveys(n=44 stations/survey)
Taxonomy/sample- Mollusca — specific identifications of taxa to species and counts of abundance/species
Each
$110.00
75
Regional Monitoring Sampling- Bight Benthic Surveys (n =44 stations/survey)
Taxonomy/sample- Echinodermata— specific identifications of taxa to species and counts of abundance/species
Each
$75.00
76
Regional Monitoring Sampling- Bight Benthic Surveys (n =44 stations/survey)
Taxonomy/sample- Miscellaneous Phyla— specific identifications of taxa to species and counts of abundance/species
Each
$210.00
77
Regional Monitoring Sampling- Bight Benthic Surveys (n=44 stations/survey)
QA Taxonomy/sample - Polychaeta — specific identifications of taxa to species and counts of abundance/species
Each
$535.00
78
Regional Monitoring Sampling- Bight Benthic Surveys (n=44 stations/survey)
QA Taxonomy/sample Arthropoda— specific identifications of taxa to species and counts of abundance/species
Each
$250.00
79
Regional Monitoring Sampling- Bight Benthic Surveys (n=44 stations/survey)
QA Taxonomy/sample- Mollusca — specific identifications of taxa to species and counts of abundance/species
Each
$110.00
80
Regional Monitoring Sampling- Bight Benthic Surveys (n=44 stations/survey)
QA Taxonomy/sample - Echinodermata — specific identifications of taxa to species and counts of abundance/species
Each
$75.00
81
Regional Monitoring Sampling- Bight Benthic Surveys (n=44 stations/survey)
QA Taxonomy/sample- Miscellaneous Phyla— specific identifications of taxa to species and counts of abundance/species
Each
$210.00
82
Regional Monitoring Sampling- Bight Benthic Surveys (n =44 stations/survey)
QA Reconciliation - Polychaeta— Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist)
Hour
$102.00
83
1 Regional Monitoring Sampling- Bight Benthic Surveys (n =44 stations/survey)
QA Reconciliation - Arthropoda— Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist)
Hour
$102.00
84
Regional Monitoring Sampling- Bight Benthic Surveys (n =44 stations/survey)
QA Reconciliation - Mollusca— Reconciliation of disputed identifications to species and counts of abundance/species (hourly rate/taxonomist)
Hour
$102.00
85
Regional Monitoring Sampling- Bight Benthic Surveys (n=44 stations/survey)
QA Reconciliation - Echinodermata — Reconciliation of disputed identifications to species and counts of abundance/species(hourly rate/taxonomist)
Hour
$102.00
86
Regional Monitoring Sampling- Bight Benthic Surveys (n=44 stations/survey)
QA Reconciliation— Miscellaneous Phyla— Reconciliation of disputed identifications to species and counts of abundance/species(hourly rate/taxonomist)
Hour
$102.00
87
Regional Monitoring Sampling - Bight Benthic Surveys (n=44 stations/survey)
Voucher specimen and voucher sheet preparations per taxa
Each
$615.00
88
Regional Monitoring Sampling - Bight Benthic Surveys (n=44 stations/survey)
Regional Bight Taxonomy ad hoc QA/QC meetings, including SCAMI7", (costs per 4-hr (half -day) meeting/taxonomist, including travel) — participation in required
Regional Bight taxonomy and taxonomy QA meetings.
Each
$615.00
89
Regional Monitoring Sampling - Bight Benthic Surveys (n=44 stations/survey)
Project Management/Survey
Each
$2,800.00
90
Regional Monitoring Sampling- Bight Trawls Surveys (n=21 stations/survey)
Ad hoc Taxonomy/sample-Polychaeta— specific identifications of taxa to species, counts of abundance/species, biomass/species
Each
$360.00
91
1 Regional Monitoring Sampling- Bight Trawls Surveys (n=21 stations/survey)
lAd hoc Taxonomy/sample- Arthropoda — specific identifications of taxa to species, counts of abundance/species, biomass/species
Each
$360.00
92
1 Regional Monitoring Sampling- Bight Trawls Surveys (n =21 stations/survey)
IAcI hoc Taxonomy/sample- Mollusca— specific identifications of taxa to species, counts of abundance/species, biomass/species
Each
$205.00
93
Regional Monitoring Sampling -Bight Trawls Surveys (n =21 stations/survey)
Ad hoc Taxonomy/sample- Echinodermata — specific identifications of taxa to species, counts of abundance/species, biomass/species
Each
$310.00
94
Regional Monitoring Sampling- Bight Trawls Surveys (n =21 stations/survey)
lAd hoc Taxonomy/sample- Miscellaneous Phyla — specific identifications of taxa to species, counts of abundance/species, biomass/species
Each
$410.00
95
Regional Monitoring Sampling - Bight Trawls Surveys (n=21 stations/survey)
Voucher specimen and voucher sheet preparations per taxa
Each
$615.00
96
Regional Monitoring Sampling - Bight Trawls Surveys (n=21 stations/survey)
I Project Management/SurveyManagement/Survey
Each
$1,800.00
Administration Building
ADMINISTRATION COMMITTEE 10844 Ellis Avenue
SAIV Fountain Valley, CA 92708
(714) 593 7433
ORANGE COUNTY SANITATION DISTRICT
Agenda Report
File #: 2022-2648 Agenda Date: 12/14/2022 Agenda Item No: 6.
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
INTERNET FIREWALL UPGRADE
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
A. Receive and file bid tabulation for Fortigate Firewall Upgrade, Specification No. E-2022-
1363BD;
B. Receive and file first Notice of Intent to Award dated October 13, 2022;
C. Receive and file protest letter received from NH&A, LLC dated October 13, 2022 concerning
the award to Xpert Solutions, Inc.;
D. Receive and file second Notice of Intent to Award dated October 14, 2022;
E. Receive and file second protest letter received from Xpert Solutions, Inc. dated October 18,
2022 concerning the award to NH&A, LLC;
F. Receive and file Orange County Sanitation District's Protest Response Letter dated October
31, 2022;
G. Approve a Purchase Order Contract to NH&A, LLC for the purchase of Fortigate Firewall
Upgrade, Specification No. E-2022-1363BD, for a total amount not to exceed $226,698 plus
applicable sales tax;
H. Approve four (4) optional one-year renewals for maintenance and support for an annual
amount not to exceed $80,458 plus applicable sales tax; and
Approve a contingency of $22,670 (10%) for the purchase upgrades and subsequent renewals.
BACKGROUND
The current internet firewalls at Orange County Sanitation District (OC San) Plant Nos.1 and 2 can
only operate at 1 Gbps. The firewalls are the gateway for internal networks to communicate with the
internet and they also route and inspect traffic among OC San's internal networks.
Orange County Sanitation District Page 1 of 4 Printed on 12/7/2022
powered by LegistarTIM
File #: 2022-2648 Agenda Date: 12/14/2022 Agenda Item No: 6.
Other IT projects are upgrading the data center, office network, and internet network equipment to
meet today's high bandwidth and speed requirements, which allows the network to operate at a
minimum 10Gbps.
RELEVANT STANDARDS
• 24/7/365 treatment plant reliability
• 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
PROBLEM
Due to hardware limitations, the current internet firewalls cannot support the increased capacity
requirements of the new data center, office network, and internet network equipment. Therefore, the
firewalls will become a congestion point of the network if not upgraded. The ability to scan and
analyze security threats will also be limited.
PROPOSED SOLUTION
The Fortigate 180OF firewalls were chosen to meet the bandwidth and security requirements of the
new network equipment. In addition to the bandwidth increase, the proposed firewalls deliver high-
performance threat protection to keep OC San's networks secure.
TIMING CONCERNS
Proper maintenance and performance of the internet firewalls at both Plant Nos. 1 and 2 are
imperative for the continued support and security of OC San's networks.
RAMIFICATIONS OF NOT TAKING ACTION
Not upgrading the firewalls at Plant Nos. 1 and 2 would result in network congestion or slowness and
increase security risks.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
A Notice Inviting Bids was issued on September 14, 2022 via PlanetBids. Bids were due on October
12, 2022. OC San received nine (9) bids valid for 180 calendar days from the bid opening date. Two
(2) bids received were considered as non -responsive as one bidder (Charity IT) did not bid on all line
items and the other bidder (vCloud Tech, Inc.) did not submit the required bid submittals.
Orange County Sanitation District Page 2 of 4 Printed on 12/7/2022
powered by LegistarTM
File #: 2022-2648
Agenda Date: 12/14/2022 Agenda Item No: 6.
BID RESULTS
The following is a list of the firms that submitted a bid.
Project Manager's Estimate: $250,000
Company Name
Bid (pricing below does not
include the applicable sales tax)
Determination
NH&A, LLC
$226,697.76
Responsive
Xpert Solutions, Inc.
$231,074.00
Responsive
Hypertec USA Inc.
$252,133.97
Responsive
vCloud Tech, Inc.
$274,302.35
Non -responsive
vPrime Tech, Inc.
$285766.95
Responsive
Sterling Computers Corp
$285,827.81
Responsive
D1 Networks, Inc.
$337,499.20
Responsive
Granite Telecommunications
$351,628.40
lResponsive
Charity IT
$0.00
Non -responsive
The proposed award was originally recommended to Xpert Solutions, Inc. and, immediately after, a
protest from NH&A, LLC was received. Upon review, it was determined the original award should be
rescinded due to an administrative error and a revised Notice of Intent to Award was issued to NH&A,
LLC.
A second protest was received from Xpert Solutions, Inc. expressing concern over the validity of the
bid provided by NH&A, LLC. OC San thoroughly researched the claim and found no discrepancies
with NH&A's bid and confirmed it met all the requirements. Therefore, staff recommends approving
the Purchase Order Contract to NH&A, LLC.
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San's Purchasing Ordinance. This item has been
budgeted. (FY2022-23 & 2023-24 Budget, Section 8, Page 49, Information Technology Capital
Program (M-MC-IT)).
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda
package:
• Bid Tabulation
• Notice of Intent to Award dated October 13, 2022
• Protest letter received from NH&A, LLC dated October 13, 2022
• Notice of Intent to Award dated October 14, 2022
Orange County Sanitation District Page 3 of 4 Printed on 12/7/2022
powered by LegistarTM
File #: 2022-2648
Agenda Date: 12/14/2022 Agenda Item No: 6.
Protest letter received from Xpert Solutions, Inc. dated October 18, 2022
OC San's Protest Response Letter dated October 31, 2022
Orange County Sanitation District Page 4 of 4 Printed on 12/7/2022
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FORTIGATE FIREWALL UPGRADE
TITLE: E-2022-1363BD
LOWEST BIDDER
DATE: 10/13/2022 BIDDER #1 BIDDER #2
BIDDER #3
BIDDER #4
BIDDER #5
BIDDER #6
BIDDER #7
BIDDER #8
BIDDER #9
vCloud Tech, Inc
Charity IT
Granite
Hypertec USA, Inc.
NH&A, LLC
Xpert Solutions, Inc.
Sterling Computers Corp
vPrime Tech, Inc.
D1 Networks, Inc.
Telecommunications
(non -responsive)
(non -responsive)
UNIT
ITEM #
ITEM DESCRIPTION
UOM
QTY
UNIT PRICE
TOTAL
UNIT PRICE
TOTAL
UNIT PRICE
TOTAL
UNIT PRICE
TOTAL
UNIT PRICE
TOTAL
UNIT PRICE
TOTAL
UNIT PRICE
TOTAL
UNIT PRICE
TOTAL
PRICE
TOTAL
1
FortiGate-1800F
EA
4
$30,617.20
$122,468.80
$ 46,186.00
$184,744.00
$ 54,427.85
$217,711.40
$ 30,021.00
$120,084.00
$ 37,362.02
$149,448.08
$ 36,209.97
$144,839.88
$ 45,724.14
$182,896.56
$ 34,757.27
$139,029.08
No Bid
No Bid
FortiGate-1800 F, 1-Year
Included in
Included in
2
Enterprise Protection
EA
4
$30,061.44
$120,245.76
$39,258.10
$157,032.40
line item# 1
line item# 1
$25,517.00
$102,068.00
$31,763.72
$127,054.88
$32,830.37
$131,321.48
$36,117.45
$144,469.80
$31,513.26
$126,053.04
No Bid
No Bid
REQUIRED
Fortinet Professional Service
(BASIS FOR
Resource Service (SOW)
REWARD)
3
Consultant
EA
3
$2,922.47
$8,767.41
$3,000.00
$9,000.00
$2,784.40
$8,353.20
$2,790.00
$8,370.00
$2,878.79
$8,636.37
$2,979.21
$8,937.63
$3,100.00
$9,300.00
$2,859.69
$8,579.07
No Bid
No Bid
Fortinet FortiGate Rack Slide
4
Rail Kit
EA
4
$163.00
$652.00
$213.00
$852.00
$158.29
$633.16
$138.00
$552.00
$172.12
$688.48
$166.99
$667.96
$208.21
$832.84
$160.29
$641.16
No Bid
No Bid
(Basis for Award) SUBTOTAL:
$252,133.97
$351,628.40
$226,697.76
$231,074.00
$285,827.81
$285,766.95
$337,499.20
$274,302.35
$0.00
Year 2 Renewal: FortiGate-
1800F 1-Year Enterprise
5
Protection
EA
4
No bid
No bid
No bid
No bid
$ 20,114.60
$ 80,458.40
$ 33,369.00
$ 133,476.00
$ 31,763.72
$ 127,054.88
$ 32,830.37
$ 131,321.48
$ 36,117.45
$ 144,469.80
No bid
$0.00
No Bid
No Bid
Year 3 Renewal: FortiGate-
OPTIONAL
1800F 1-Year Enterprise
(NOT A
6
Protection
EA
4
No bid
No bid
No bid
No bid
$ 20,114.60
$ 80,458.40
$ 33,369.00
$ 133,476.00
$ 31,763.72
$ 127,054.88
$ 32,830.37
$ 131,321.48
$ 36,117.45
$ 144,469.80
$ 94,539.79
$ 378,159.16
No Bid
No Bid
BASIS FOR
Year 4 Renewal: FortiGate-
REWARD)
1800F 1-Year Enterprise
7
Protection
EA
4
No bid
No bid
No bid
No bid
$ 20,114.60
$ 80,458.40
$ 33,369.00
$ 133,476.00
$ 31,763.72
$ 127,054.88
$ 32,830.37
$ 131,321.48
$ 36,117.45
$ 144,469.80
No bid
$0.00
No Bid
No Bid
Year 5 Renewal: FortiGate-
1800F 1-Year Enterprise
g
113rotection
EA
1 4
1 No bid
I No bid
I No bid
No bid
$ 20,114.60
$ 80,458.40
$ 33,369.00
$ 133,476.00
$ 31,763.72
$ 127,054.88
$ 32,830.37
$ 131,321.48
$ 36,117.45
$ 144,469.80
$ 157,566.31
$ 630,265.24
No Bid
No Bid
(Not A Basis for Award) SUBTOTAL:1
$0.00
1 $0.00
1 $321,833.60
$533,904.00
$508,219.52
$525,285.92
$577,879.20
$1,008,424.40
$0.00
10844 Ellis Avenue
Fountain Valley, CA 92708
OC6SAN714...2.24.1
ORANGE COUNTY SANITATION DISTRICT www.ocsan.gov
October 13, 2022
SUBJECT: Notice of Intent to Award for Specification No. E-2022-1363BD
FortiGate Firewall Upgrade
Serving.
Anaheim
Brea
Buena Park
Cypress
Fountain valley
Fullerton
Garden Grove
In conformance with Orange County Sanitation District's (OC San's)
Huntington Beach
Purchasing Ordinance No. OC San-56, the contract for Specification No.
Irvine
E-2022-1363BD FortiGate Firewall Upgrade, is being awarded to Xpert
Solutions, Inc., subject to approval by the Administration Committee.
La Habra
La Palma
Thank you for your participation in the procurement process. OC San regards
your firm as an important and valuable goods/services provider. If I can answer
Los Alamitos
any further questions, please feel free to contact me during normal business
Newport Beach
hours.
Orange
Placentia
Jessica Vu
Contracts, Purchasing & Materials Management
Santa Ana
Seal Beach
c: Procurement File
Stanton
Tustin
Villa Park
County of Orange
Costa Mesa
Sanitary District
Midway City
Sanitary District
Irvine Ranch
Water District
Yorba Linda
Water District
Our Mission: To protect public health and the environment by
providing effective wastewater collection, treatment, and recycling.
NH&A. L L Canti-virus, firewalls & security solutions
Award Protest Request
October, 13, 2022
To:
Purchasing Department
Jessica Vu
Orange County Sanitation District
Reference: Invitation #E-2022-1363BD
Project Title: FortiGate Firewall Upgrade
Attached: Bid Confirmation #306103; E-2022-1363BD BID RECAP.xlsx;
20221013125934013 E-2022 1363BD NOIA 10 13 2022; E-2022-1363BD
We, NH&A LLC, are protesting the awardee of the referenced bid. As understood, the
award criteria was based solely on the lowest priced bidder. As seen on the results
document — NH&A's subtotal was the lowest out of all bidders at $226,697.76. The
document states this as the basis for award.
NH&A explicitly stated in our submission #306103, that line item #1 was inclusive of the
Enterprise Protection subscription (line item #2). If NH&A were to have slit the pricing
into line #2, the subtotal cost would remain the same regardless. NH&A should not have
been classified as non -responsive as we provided reason for the item.
Please feel free to reach out with any questions or comments.
We're looking forward to hearing back at your earliest convenience.
Best Regards,
Nancy Ramos
NH&A LLC
790 Juno Ocean Walk, Ste 502-C Phone: (561) 622-2283
North Palm Beach, FL 33408-1121 USA Fax: (888) 602-1196
E-Mail: salesCcDnha.com Web: http://www.nha.com
10844 Ellis Avenue
Fountain Valley, CA 92708
OC6SAN714.,,2.241,
ORANGE COUNTY SANITATION DISTRICT www.ocsan.gov
October 14, 2022
SUBJECT: Revised Notice to Award for Specification No. E-2022-1363BD
Fortigate Firewall Upgrade
Serving:
Anaheim
Brea
Buena Park
This notice supersedes the Notice of Intent to Award issued by the Orange County
Sanitation District (OC San) on October 13, for the above -referenced Project. After further
Cypress
evaluation of the bids, OC San has determined that there was an error in the initial
evaluation of the bid submittals. OC San hereby revises its previous recommendation and
Fountain Valley
will recommend awarding the bid to NH&A LLC, subject to approval by the OC San Board
of Directors.
Fullerton
Garden Grove
i
Huntington Beach
Irvine
Ruth Zintzun
La Habra
Purchasing and Contracts Manager
La Palma
C: Procurement File
Los Alamitos
Newport Beach
Orange
Placentia
Santa Ana
Seal Beach
Stanton
Tustin
Villa Park
County of Orange
Costa Mesa
Sanitary District
Midway City
Sanitary District
Irvine Ranch
Water District
Yorba Linda
Water District
Our Mission: To protect public health and the environment by
providing effective wastewater collection, treatment, and recycling.
Page 1 of 2
(Irper
th'
Opposition to Bid Award
18 October 2022
Orange County Sanitation District
Attn: Purchasing Department (Jessica Vu)
10844 Ellis Avenue
Fountain Valley, CA 92708
Reference: Bid Invitation #E-2022-1363BD FortiGate Firewall Upgrade
Dear OCSan Procurement,
Xpert Solutions Inc. (Xpert) is respectfully submitting this statement of opposition to the protest
submitted by the reseller from Florida (NH&A LLC) and we are submitting our protest to the award to
NH&A LLC.
Xpert has the following concerns:
1. The pricing from the reseller from Florida (NH&A LLC) may not be in accordance with all
applicable laws and current applicable policies of the manufacturer (Fortinet). This can be verified
by NH&A LLC providing a valid Fortinet FTQ# which is dated before the bid closing,
2. The pricing from the reseller from Florida (NH&A LLC) is very likely invalid and may not be able
to be honored by NH&A LLC. This concern has been confirmed by the equipment Manufacturer
(Fortinet).
3. The proposed equipment from the reseller from Florida (NH&A LLC) may be from the Gray
Market or may be used equipment despite the reseller (NH&A LLC) being an authorized reseller.
This is also the concern of the Manufacturer (Fortinet).
The terms of the invitation to bid state in section 2.12 Price Confirmation — "Prior to the award of the
Contract, the apparent low Bidder will need to confirm that each line item is at the correct pricing." And
in section 3.132. "The Vendor confirms to have sourced all products submitted in this offer from the
listed manufacturer in Exhibit A through Authorized Channels only, in accordance with all applicable
laws and current applicable policies of the manufacturer at the time of purchase."
Xpert believes the pricing submitted by NH&A LLC is not in accordance with all applicable laws and
current applicable policies of the manufacturer. Xpert and Fortinet are asking OCSan to have the
reseller (NH&A LLC) provide to OCSan and to Fortinet the valid FTQ quote number from Fortinet to
prove that a. the equipment is not from the gray market and not used equipment and b. it will prove
whether or not NH&A LLC has authorized pricing from Fortinet.
Page 2 of 2
The terms of the invitation to bid also state in section 2.2 Bid Pricing — "All pricing and evaluative
material contained in submitted bids must be valid through the Contract term. At no time shall the bids
be altered." Xpert and Fortinet have reason to believe that the pricing submitted by NH&A LLC is
invalid. Even though the reseller (NH&A LLC) is an authorized Fortinet reseller, the believes the
equipment that NH&A LLC may be attempting to sell to OCSan equipment from the gray market or
possibly used equipment.
Xpert is requesting that OCSan ask NH&A LLC to provide to OCSan and to Fortinet a valid FTQ quote
number which is authorized by Fortinet. If NH&A LLC cannot provide to OCSan and to Fortinet the
valid FTQ quote number from Fortinet, then OCSan is a grave risk of sourcing gray market and/or used
equipment.
Finally, Xpert believes we have submitted the lowest authorized pricing to OCSan and that the bid
should be awarded to Xpert.
Sincerely,
thon nes
President
Xpert Solutions, Inc.
Xpert Solutions, Inc. 65 Enterprise p: (949) 218-2100
Aliso Viejo, CA f: (949) 218-2177
92656 w: www.xpert.com
OC6SAN
ORANGE COUNTY SANITATION DISTRICT
October 31, 2022
Anthony L. Jones
Xpert Solutions, Inc.
65 Enterprise
Aliso Viejo, CA
ton y.jon es(axpert.com
SUBJECT: E-2022-1363BD Fortigate Firewall Upgrade Award Recommendation Protest
The Orange County Sanitation District (OC San) received an official protest from Xpert
Solutions, Inc. on October 18, 2022. OC San reviewed the protest documentand
conducted its evaluation into the claim that the low bidder, NH&A LLC provided potentially
invalid pricing that may not be honored, pricing that may not be in accordance with
applicable laws and current practices of the manufacturerand is proposing equipment
that may be used or from a Gray Market. OC San has concluded that none of these
claims have merit. Therefore, OC San shall proceed with the intentto award NH&A LLC.
as the vendorfor the subject contract.
All affected parties shall be notified in writing of OC San's determination of the protest.
Ruth Zintzun
Purchasing Manager
Attachments: Award Recommendation Protest Letter — Xpert Solutions, Inc. October 18,
2022
Page 1 of 2
(Irper
th'
Opposition to Bid Award
18 October 2022
Orange County Sanitation District
Attn: Purchasing Department (Jessica Vu)
10844 Ellis Avenue
Fountain Valley, CA 92708
Reference: Bid Invitation #E-2022-1363BD FortiGate Firewall Upgrade
Dear OCSan Procurement,
Xpert Solutions Inc. (Xpert) is respectfully submitting this statement of opposition to the protest
submitted by the reseller from Florida (NH&A LLC) and we are submitting our protest to the award to
NH&A LLC.
Xpert has the following concerns:
1. The pricing from the reseller from Florida (NH&A LLC) may not be in accordance with all
applicable laws and current applicable policies of the manufacturer (Fortinet). This can be verified
by NH&A LLC providing a valid Fortinet FTQ# which is dated before the bid closing,
2. The pricing from the reseller from Florida (NH&A LLC) is very likely invalid and may not be able
to be honored by NH&A LLC. This concern has been confirmed by the equipment Manufacturer
(Fortinet).
3. The proposed equipment from the reseller from Florida (NH&A LLC) may be from the Gray
Market or may be used equipment despite the reseller (NH&A LLC) being an authorized reseller.
This is also the concern of the Manufacturer (Fortinet).
The terms of the invitation to bid state in section 2.12 Price Confirmation — "Prior to the award of the
Contract, the apparent low Bidder will need to confirm that each line item is at the correct pricing." And
in section 3.132. "The Vendor confirms to have sourced all products submitted in this offer from the
listed manufacturer in Exhibit A through Authorized Channels only, in accordance with all applicable
laws and current applicable policies of the manufacturer at the time of purchase."
Xpert believes the pricing submitted by NH&A LLC is not in accordance with all applicable laws and
current applicable policies of the manufacturer. Xpert and Fortinet are asking OCSan to have the
reseller (NH&A LLC) provide to OCSan and to Fortinet the valid FTQ quote number from Fortinet to
prove that a. the equipment is not from the gray market and not used equipment and b. it will prove
whether or not NH&A LLC has authorized pricing from Fortinet.
Page 2 of 2
The terms of the invitation to bid also state in section 2.2 Bid Pricing — "All pricing and evaluative
material contained in submitted bids must be valid through the Contract term. At no time shall the bids
be altered." Xpert and Fortinet have reason to believe that the pricing submitted by NH&A LLC is
invalid. Even though the reseller (NH&A LLC) is an authorized Fortinet reseller, the believes the
equipment that NH&A LLC may be attempting to sell to OCSan equipment from the gray market or
possibly used equipment.
Xpert is requesting that OCSan ask NH&A LLC to provide to OCSan and to Fortinet a valid FTQ quote
number which is authorized by Fortinet. If NH&A LLC cannot provide to OCSan and to Fortinet the
valid FTQ quote number from Fortinet, then OCSan is a grave risk of sourcing gray market and/or used
equipment.
Finally, Xpert believes we have submitted the lowest authorized pricing to OCSan and that the bid
should be awarded to Xpert.
Sincerely,
thon nes
President
Xpert Solutions, Inc.
Xpert Solutions, Inc. 65 Enterprise p: (949) 218-2100
Aliso Viejo, CA f: (949) 218-2177
92656 w: www.xpert.com
Administration Building
ADMINISTRATION COMMITTEE 10844 Ellis Avenue
SAIV Fountain Valley, CA 92708
(714) 593 7433
ORANGE COUNTY SANITATION DISTRICT
Agenda Report
File #: 2022-2637 Agenda Date: 12/14/2022 Agenda Item No: 7.
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
NEW HEADQUARTERS AND INDUSTRIAL CONTROL SYSTEM NETWORK EQUIPMENT
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve a Purchase Order to ePlus Technology, Inc. for the purchase of information
technology hardware (New Headquarters & Industrial Control System Network Equipment),
Specification No. E-2022-136013D, for a total amount not to exceed $428,865, plus applicable
sales tax and shipping; and
B. Approve a contingency in the amount of $42,886 (10%).
1 :(r1:19111 Z I III]
Orange County Sanitation District (OC San) has commissioned, and is in the process of executing,
Project No. P1-128 to build a new Headquarters Building (HQ) across Ellis Avenue from Plant No. 1
in Fountain Valley. New data networking equipment is required to connect the computers,
telephones, printers, and other network devices to the campus network, industrial control system
(ICS) network, and the internet.
1:7=111A%1L11&3IF_1Z117_1:1I&I
• 24/7/365 treatment plant reliability
• 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
PROBLEM
Network connectivity is required for OC San's network devices such as computers, telephones,
printers, and other network devices for all the office, cubicles, conference rooms, and other facilities
in the new HQ Building.
Orange County Sanitation District Page 1 of 3 Printed on 12/6/2022
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File #: 2022-2637 Agenda Date: 12/14/2022 Agenda Item No: 7.
PROPOSED SOLUTION
Cisco Catalyst 9000 series network switches were chosen for their next -generation connectivity and
seamless compatibility with the OC San HQ Building and ICS networks. This platform provides the
latest networking technology with scalability, availability, and security. The proposed switch
selections will expand the existing networks to the new HQ Building.
TIMING CONCERNS
Prompt procurement execution is critical with the target HQ Building completion date of December
2023. All equipment vendors are currently affected by supply -chain delays. Proper implementation
and maintenance of the new network devices and segments is imperative for the continued support
and safety of Plant operations.
RAMIFICATIONS OF NOT TAKING ACTION
New and old buildings require network connectivity. Any computers and network devices will not be
allowed to access networks for the staff to perform job duties should this new network infrastructure
in the HQ Building not be acquired and implemented.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
A Notice Inviting Bids was issued on October 3, 2022 via PlanetBids. Bids were due on November 1,
2022. OC San received seven (7) bids valid for 180 calendar days from the bid opening date. Two
bids are non -responsive due to not returning required documentation and one bid is considered non-
responsive by responding they are not currently an authorized distributor, per the Specification.
Notice of Intent to Award was issued on November 8, 2022. The following is a list of the firms that
submitted a bid.
Company Name
Bid
Determination
ePlus Technology
$428,864.85
Responsive
Saitech Inc
$437,204.00
Responsive
Axelliant LLC
$443,459.85
Responsive
Sterling Computers
Corporation
$518,172.21
Responsive
D1 Networks, Inc
$584,382.97
Non -Responsive
Kambrian Corporation
$602,357.86
Non -Responsive
Agility Software Solutions LLC
$617,569.61
Non -Responsive
Based on these results, staff recommends approving the Purchase Order to ePlus Technology. The
term of this Purchase Order will begin upon the effective date of the Notice to Proceed.
Orange County Sanitation District Page 2 of 3 Printed on 12/6/2022
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File #: 2022-2637
CEQA
N/A
FINANCIAL CONSIDERATIONS
Agenda Date: 12/14/2022 Agenda Item No: 7.
This request complies with authority levels of OC San's Purchasing Ordinance. This item has been
budgeted. (FY2022-23 & 2023-24 Budget, Section 8, Page 49, Information Technology Capital
Program (M-MC-IT)).
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
Orange County Sanitation District Page 3 of 3 Printed on 12/6/2022
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Administration Building
ADMINISTRATION COMMITTEE 10844 Ellis Avenue
SAIV Fountain Valley, CA 92708
(714) 593 7433
ORANGE COUNTY SANITATION DISTRICT
Agenda Report
File #: 2022-2411 Agenda Date: 12/14/2022 Agenda Item No: 8.
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
ORANGE COUNTY SANITATION DISTRICT WASTEWATER REVENUE PROGRAM RATE STUDY
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
Receive and file the Orange County Sanitation District's 2022 Wastewater Rates, Fees, and Charges
Study completed by HDR Engineering, Inc.
BACKGROUND
To ensure the appropriate allocation of costs and fees, the Orange County Sanitation District (OC
San) engaged an engineering consulting firm, HDR Engineering, Inc., to provide an independent
analysis of OC San's cash flow modeling and a comprehensive cost of service study. The study
demonstrates that OC San's proposed fees are appropriate and reasonable and will support its
projected capital and operating requirements.
RELEVANT STANDARDS
• Stable rates based on a validated cost structure which minimizes unforeseen rate increases
PROBLEM
OC San's Board of Directors approved a five-year rate schedule which expires at the end of the
current fiscal year.
PROPOSED SOLUTION
Develop a new proposed five-year rate schedule based on the 2022 rate study completed by HDR
Engineering, Inc.
TIMING CONCERNS
Based on the 2022 rate study, staff will be developing a proposed five-year rate schedule, beginning
in July 2023, for Administration and Board consideration in February 2023.
Orange County Sanitation District Page 1 of 2 Printed on 12/6/2022
powered by LegistarTIM
File #: 2022-2411
Agenda Date: 12/14/2022 Agenda Item No: 8.
RAMIFICATIONS OF NOT TAKING ACTION
Sewer service fees will be insufficient to support capital and operating requirements.
1;jNIf] :Zd6]►YilJil11i9441*e7_1VI7_T"IIf] ►&'
December 2017 - Received and filed the OC San 2017 Wastewater Revenue Program Rate Study
completed by Carollo Engineers.
ADDITIONAL INFORMATION
Based on the results of the rate study completed by HDR Engineering, Inc., OC San staff is in the
process of recommending a five-year revenue program which includes an increase on average of 3.5
percent annually for the next five years.
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San's Purchasing Ordinance. This item has been
budgeted.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda
package:
• Orange County Sanitation District Wastewater Rates, Fees, and Charges Study
• Presentation
Orange County Sanitation District Page 2 of 2 Printed on 12/6/2022
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DRAFT REPORT
Wastewater Rates, Fees,
and Charges Study
Orange County Sanitation District
Orange County, CA
November 2022
DU 15a
FN
November 21, 2022
Ms. Angela Brandt
Financial Management Division and Revenue/Payroll Supervisor
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, California 92708
Subject: Wastewater Rates, Fees, and Charges Study - Draft
Dear Ms. Brandt:
HDR Engineering Inc. (HDR) was engaged to conduct a comprehensive cost of service wastewater
rate, fees, and charges study (Study) by the Orange County Sanitation District (OC San). The Study
includes development of cost based Regional Wastewater Service rates, Capital Facility Capacity
Charge, Supplemental Capital Facility Charge, and ancillary charges provided to OC San customers
over a 5-year period beginning July 1, 2023.
OC San outlined several goals to accomplish with this Study. This included the establishment of
proposed rates at sufficient levels to fund annual operations and maintenance expense and necessary
capital infrastructure that are cost -based and proportional to customers. The Study also reviewed and
updated the capital facility charges to cost -based levels. The study also updated miscellaneous fees
and charges to cost -based levels that reflect the costs associated with providing the specific service.
Finally, this report provides the basis for developing and implementing rates that are cost -based,
defensible, and equitable to OC San's customers.
This report details the steps and methodology used in the development of the rates and charges for
the next five years. The Study and analysis were done using generally accepted rate setting principles
as described in the Water Environmental Federation Manual of Practice 27.
We appreciate the opportunity to work with OC San management and staff in the development of the
Study.
Sincerely yours,
HDR Engineering, Inc.
Shawn Koorn
Associate Vice President
hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377
(714) 730-2300
FN Orange County Sanitation District
Comprehensive Wastewater Rate Study
Executive Summary
HDR completed a comprehensive cost of service wastewater rate, fee, and charges study (Study) for
Orange County Sanitation District (OC San). The Study was completed using generally accepted rate
and fee setting principles consistent with the methods outlined in the Water Environmental Federation
Manual of Practice number 27. The goal of a comprehensive rate and fee study is to establish
proportional rates that reflect the cost to the utility to serve its customers.
The first step in the study was to conduct a revenue requirement analysis. A revenue requirement
analysis compares the utilities revenue to the utility's operating expenses and capital funding approach
and determines if current rate levels are sufficient or if a rate adjustment is necessary to responsibly
operate and maintain the utility. An important part of a revenue requirement is to set rates that maintain
the utilities financial policies and legal requirements. The focus of the study is on the five-year rate
setting period of 2023-24 through 2027-28. The revenue requirement extends beyond the rate setting
period matching the same time frame of OC San's capital plan which extends to FY 2031-32. The
extended view of the revenue requirement helps to provide an advanced look at what OC San can
expect beyond the near term.
The chart below represents the revenue requirement, with the bars representing OC San's costs and
the lines representing OC San's revenue. The red line represents the revenue with an annual increase
of 3.5% and the black line is the projected revenue with no rate adjustments.
$700
$600
$500
o $400
$300
$200
$100
Revenue Requirement
$0
�� 2023 ZF� 202� 2�� 202� Z 20T 20 201-� ti �02� 2�� 2029?,0� 203�?, �03132
Total O&M Expenses Debt Service (P+I)
Transfers to Reserves Total Rate Funded Capital
Total Revenues Revenue Before Rate Adjustment
The chart above shows, in all but the last year, OC San's expenses exceed the estimated revenue
OC San is expected to collect each year. The shortfall in annual revenue is expected to be covered
by OC San's available available reserve balances.
hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377
(714) 730-2300
ES-1
FN Orange County Sanitation District
Comprehensive Wastewater Rate Study
OC San has two policies that are
Reserve Fund
particularly relevant to the revenue
$1,000
requirement, a target ending reserve
$900 Fund Balance
$soo
balance and debt service coverage (DSC).
$700
c $600
OC San currently has approximately $964
$500 Target Reserve Balance
million in reserve funds. One of OC San's $400
$300
objectives for the revenue requirement $200
00
analysis was to set rates at a level that $1$0
would facilitate a controlled drawdown of
the available reserve balance over the
extended revenue requirement period.
The chart to the right shows the projected
ending fund balance reaching OC San's target fund balance.
DSC is a measure of financial health and
their ability to make debt service payments
and is often expressed as a ratio of funds
available after paying for operations and
maintenance compared to their annual debt
service payment. A typical minimum DSC
ratio 1.25, which means after operations and
maintenance there are 1.25 times their debt
service payment. OC San has an
exceptionally strong DSC ratio which
exceeds 4.0 over the extended analysis
period with the assumed 3.5% annual rate
adjustments.
The next step in the comprehensive rate
study is the cost of service analysis. HDR
used generally accepted cost allocation
methods in the allocation of OC San's costs
to Volume, Biochemical Oxygen Demand
(BOD) and Total Suspended Solids (TSS).
The results of the analysis were the unit costs
by volume and by pound. The chart below
shows the current unit cost compared to the
results of the cost of service. These unit
charges are the basis for the Industrial/Permit
user
The cost of service analysis also determines
OC San's Equivalent Dwelling Unit (EDU)
charge for the General User customers.
> yo yA y00 ye yo 3ti
Q,vo�y Q,vo�� Q,vo�1 00
Debt Service Coverage Ratio
6
5 After Rate Adjustment
4
3
Before Rate Adjustment
2
1
0
Average Unit Costs
$/1,000 gal I $/Ibs BOD/TSS
■ Current Rates ■ Proposed Rates
BOD TSS
Volume Strength
hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377
(714) 730-2300
ES-2
FN Orange County Sanitation District
Comprehensive Wastewater Rate Study
General User Rate- EDU
Current Rate FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28
Single Residence Multifamily
Another task in the study was to update the
Capital Facility Capacity Charge (CFCC).
CFCC Base Charge
This analysis is different from development
$7,000
of user rates in that it is not based on OC
San's cost to continue operating but rather a
$6,000
means of maintaining equity among new and
$5,000
existing OC San customers. OC San's
ability to serve new customers requires them
$4,000
to already have excess capacity or for them
$3,000
to build new capacity to serve new
customers. The CFCC is calculated based
$2,000
on OC San's existing and future
$1,000
infrastructure costs expresses as a unit of
capacity or EDU. The CFCC analysis
$0
determined that the CFCC was $5,568 which
Current FY 2023-24
is only slightly less than the existing charge
Proposed
of $5,719. Given the closeness of the
calculated rate and the current rate it was decided that the charge would remain the same for FY 2023-
24, forgoing the annual adjustment for inflation.
This concludes the executive summary portion of the Study. The executive summary provides an
overview of the study as a whole. The next sections of the report provide a more detailed explanation
of the Study and the methods used in the development of the analysis.
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Contents
1 Comprehensive Wastewater Rate Study
1.1
Introduction............................................................................................................
1.2
Key Objectives of the Study....................................................................................
1.3
Overview of the Rate Study Process.......................................................................
1.4
Development of the Revenue Requirement Analysis ...............................................
1.4.1
Determination of Time Period and Method of Accumulating Costs ..............
1.4.2
Projection of Revenues..............................................................................
1.4.3
Projection of Operation and Maintenance Costs .........................................
1.4.4
Projection of Debt Service Payments..........................................................
1.4.5
Projection of Wastewater Capital Improvement Projects Funded from Rate
Revenues..................................................................................................
1.4.6
Transfers to Reserves................................................................................
1.4.7
Summary of the Wastewater Revenue Requirements .................................
1.4.8
Review of Debt Service Coverage Ratios ...................................................
1.4.9
Summary of Reserve Levels......................................................................
1.4.10
Revenue Requirement Summary and Recommendations ...........................
1.5
Development of the Cost of Service Analysis..........................................................
1.5.1
Objectives of a Cost of Service Analysis .....................................................
1.5.2
Overview of the Cost of Service Analysis ....................................................
1.5.3
Major Assumptions of the Cost of Service Analysis ....................................
1.5.4
Cost of Service Results..............................................................................
1.5.5
Cost of Service Conclusions and Recommendations ..................................
1.5.6
Summary of the Cost of Service Analysis ...................................................
1.6
Development of the Wastewater Rate Designs.......................................................
1.6.1
Review of the Overall Rate Adjustments.....................................................
1.6.2
General User Rates...................................................................................
1.6.3
Industrial/Permit User Rates.......................................................................
1.6.4
Wastehauler Rates.....................................................................................
1.7
Summary of Wastewater Rate Study......................................................................
1.8
Rate Survey...........................................................................................................
2 Capital Facility Charges
2.1
Capital Facility Capacity Charge Study ......................
2.1.1 Introduction...................................................
2.1.2 CFCC Study Overview ..................................
2.1.3 CFCC Calculation .........................................
2.1.4 CFCC Summary of Net Allowable Calculation
2.1.5 CFCC Implementation ...................................
2.2
Supplemental Capital Facility Capacity Charge Study
2.3
Annexation Charge Study ..........................................
3 Rebate Program
3.1
Introduction...............................................................
4 Miscellaneous Fees and Charges
4.1 Introduction...............................................................................................
4.2 Administrative Fees and Charges..............................................................
4.3 Industrial Discharger, Source Control and Non-compliance Sampling Fees
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4.4 Inspection Fees .........................
4.5 Non -Compliance Sampling Fees
Tables
Table 1-1. Summary of the Capital Improvement Plan ($000,000)............
Table 1-2. Summary of the Revenue Requirement Analysis ($000,000)...
Table 1-3. Debt Service Coverage Ratio ..................................................
Table 1-4. Allocation of Functional Categories .........................................
Table 1-5. Summary of the Allocations.....................................................
Table 1-6. Summary of the Revenue Requirement Allocation ($000,000s)
Table 1-7. Summary of the Unit Costs............................................................................
Table 1-8. Summary of the Proposed Revenues and Adjustments to Rates ($1,000,000)
Table 1-9. Single Family and Multi -family Rates..............................................................
Table 1-10. Industrial/Permit User...................................................................................
Table 1-11. Wastehauler Rates......................................................................................
Table 1-12. Wastehauler Rates per Gallon......................................................................
Table 1-13. Survey of Other Wastewater Utilities............................................................
Table 2-1. Present Capital Facilities Capacity Charge'),(2) ...............................................
Table 2-2. CFCC - Planning Data
Table 2-3. CFCC - Equivalent Dwelling Units..................................................................
Table 2-4. Summary of CFCC per EDU...........................................................................
Table 2-5. CFCC per EDU Converted to 1,000 Square Feet ............................................
Table 2-6. Present and Calculated Capital Facilities Capacity Charge ..............................
Table 2-7. Proposed Capital Facilities Capacity Charge'),(2).............................................
Table 2-8. Calculated Supplemental Capital Facilities Capacity Charge0),(2) .....................
Table 2-9. Present and Calculated Supplemental Capital Facilities Capacity Charge0),(2) .
Table 2-10. Present and Calculated Supplemental Capital Facilities Capacity ChargeM,(2)
Table 2-11. Present Annexation Charge0)........................................................................
Table 2-12. Present and Calculated Annexation Charge ) ................................................
Table 4-1. Administrative Fees and Charges Related to Permittees per Year ...................
Table 4-2. Industrial Discharger, Source Control and Non-compliance Sampling Fees.....
Table 4-3. Inspection Fees for Single Connection............................................................
Table 4-4. Non -Compliance Sampling Fees.....................................................................
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1 Comprehensive Wastewater Rate Study
1.1 Introduction
HDR Engineering Inc. (HDR) was retained by the Orange County Sanitation District (OC San) to
conduct a comprehensive cost of service wastewater rate, fee, and charges study (Study). The
purpose of the Study is to develop cost -based rates and fees for the next five year period. The purpose
of conducting a cost of service study such as this, is to establish cost -based and proportional rates for
OC San's customers and adhere to the requirements for setting rates according to State law under
Proposition 218 (Prop 218).
The objective of this Study was to collaborate with OC San staff to develop a wastewater financial plan
and cost -based rates necessary to meet the operation and maintenance (O&M) expenses and the
capital improvement plan for OC San. This Study determined the adequacy of the existing wastewater
rates and provides the framework for future revenue (rate) adjustments.
1.2 Key Objectives of the Study
OC San had a number of key objectives in developing the Study. These key objectives were as follows:
• Set rates in a manner that is consistent with the principles and methodologies established by
the Water Environment Federation Manual of Practice number 27.
• Develop OC San's revenue requirement analysis to provide prudent and adequate funding
levels for O&M and capital infrastructure.
• Develop a ten-year financial planning model (revenue requirement) that provides prudent
funding levels for O&M activities along with the capital infrastructure identified in OC San's
capital improvement planning documents.
• Develop a cost allocation methodology that proportionally distributes the cost of providing
wastewater service to OC San's customers.
• Develop proposed wastewater rates for a five-year period which are cost -based, proportional,
and legally defendable.
• Update OC San's Capital Facility Capacity Charges (CFCC) and Supplemental Capital Facility
Capacity Charges (SCFCC) to conform to legal requirements
• Update other miscellaneous charges including permit and sampling charges.
These key objectives provided guidance as the Study was developed and progressed.
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1.3 Overview of the Rate Study Process
Wastewater rates must be set at a level where a utility's annual operating and capital expenses are
met with the revenues received from customers. This is an important point, as failure to achieve this
objective may lead to insufficient funds to maintain system integrity. To evaluate the adequacy of the
existing rates, comprehensive rate studies are often performed. A comprehensive wastewater rate
study consists of three interrelated analyses. Figure 1 provides an overview of these analyses.
Revenue Requirement I
Analysis
Cost of Service Analysis
Rate Design Analysis
Compares the revenues of the utility to its
expenses to determine the overall
level of rate adjustment
Proportionally distributes the revenue
requirement between the identified
customer classes of service
Design rates for each class of service to
meet the revenue needs of the utility and
the cost of service results
The above framework was utilized in the development of the OC Sans Study. Provided below is a
summary of the analyses undertaken and our findings, conclusions, and recommendations.
1.4 Development of the Revenue Requirement Analysis
The development of revenue requirement analysis is the first step in the comprehensive wastewater
rate study process. A revenue requirement analysis determines the adequacy of the overall level of
OC San's wastewater rates. From this analysis, a determination can be made as to the level of the
revenue (rate) adjustments needed to provide adequate and prudent funding for projected operating
and capital needs.
1.4.1 Determination of Time Period and Method of Accumulating Costs
The initial step in calculating the revenue requirement for OC San was to establish a "test period", or
time frame of reference for the revenue requirement analysis. For this particular study, the focus of
the revenue requirement was for the 5-year projected time period of FY 2023-24 through FY 2027-28.
However, the model developed by HDR projects rates over a 10-year period to take into consideration
future revenue needs and plan for future capital improvements. By reviewing costs over an extended
time period, OC San can anticipate and plan around any significant changes or needs in operating
and capital requirements.
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The second step in determining the revenue requirements for OC San was to determine the basis of
accumulating costs. In this case, a "cash basis" revenue requirement methodology was utilized. This
methodology includes both operating and capital costs within the total revenue requirements and was
the methodology used in previous rate studies completed for OC San.
1.4.2 Projection of Revenues
The first step in developing the
revenue requirement was to Rate Revenue
develop a projection of rate FY 2023-24 ($000,000s)
revenues, at present rate levels. In General
developing this portion of the users,
analysis, the customer billing units $321.50
for the historical FY 2020-21 were
reviewed and then escalated to
reflect OC San's estimated billing Industrial/Permit,
units for the projected time period of $14.20
FY 2023-24 through FY 2031-32.
OC San charges its primary
Wastehaulers,
customer type, General Users, a
$0.75
rate based on an Equivalent
Dwelling Unit (EDU) basis.
Industrial/Permit user are charge based on their actual volume of wastewater and calculated pounds
of Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS). Wastehaulers, the final
customer class, are a much smaller customer group and are charged by the gallon of wastewater
discharged into the system.
The billing units for each customer group were multiplied by the applicable current (present) rates,
which included the most recent rate adjustment implemented for the fiscal year 2022-23, to develop
the projection of annual rate revenues over the 5-year period.
This calculation resulted in annual rate revenues of approximately $336 million in FY 2023-24. OC
San also has several other revenue streams in addition to the annual rate revenue received. The other,
or miscellaneous revenue, for FY 2023-24 includes property tax of $112 million, Irving Ranch Water
District (IRWD) of $16 million, and Santa Ana Water Project Authority (SAWPA) $3 million. IRWD and
SAWPA are customers of OC San, however, their wastewater rates are established by contracts rather
than through this Study.
1.4.3 Projection of Operation and Maintenance Costs
The revenue requirement projected the operation and maintenance (O&M) expenses by utilizing OC
San's most recent preliminary budgeted expenses and escalating them over the ten-year period. The
annual rate of inflation was estimated on average to be 3% per year. Total current (FY 2023/24) O&M
expenses for OC San are approximately $210 million. With escalation, O&M expenses are projected
to increase to approximately $236 million in FY 2027/28.
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1.4.4 Projection of Debt Service Payments
OC San's cash basis revenue requirement includes a component for annual debt service payments.
Debt service payments relates to annual debt service obligations (principal and interest) when capital
projects are financed through long-term debt. OC San has several outstanding debt issues used to
fund prior capital expenditures. For the fiscal year 2023-24 principal and interest payments are
approximately $68.6 million according to debt schedules provided by OC San. In the development of
the capital funding analysis, no additional debt issuances assumed or were there any refunding of
existing outstanding debt.
1.4.5 Projection of Wastewater Capital Improvement Projects Funded
from Rate Revenues
The focus of this portion of the analysis is on the funding of capital improvement projects. During the
projected five-year period OC San has capital improvement projects for their collection system and
treatment plant which total approximately $1.663 billion. These capital projects were provided by OC
San staff as outlined in the current capital improvement plan.
The funding of OC San's capital program has been historically funded through a combination of current
revenues, reserve funds, capital facility charges, and long-term debt. The revenue requirement
assumes the $1.663 billion in capital expenditures will be funded using $1.388 billion of current
revenue, $98 million of capital facility charge revenue, and the remaining from reserves, assumed
savings, and deferrals. A summary of the funding plan is shown below in Table 1-1.
Table 1-1. Summary of the Capital Improvement Plan ($000,000)
Capital Improvement Projects
Capital Expenditures
$329
$312
$322
$323
$325
$1,611
Future Renewal and Replacement
10
2
6
19
16
52
Total Capital Improvement Projects
$339
$314
$328
$342
$340
$1,663
Capital Funding
CIP Savings & Deferrals
$24
$32
$27
$49
$45
$177
CFCC & SCFCC Revenue
19
20
20
20
20
98
Rate Revenue and Reserve Funds
297
262
281
273
275
1,388
Total Capital Funding
$339
$314
$328
$342
$340
$1,663
As noted previously, no additional long-term debt is being issued over the Study time period to fund
planned capital improvement projects. OC San has specifically developed a capital funding analysis
that utilizes available reserves to draw reserve balances to target levels and not issue additional long-
term debt.
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1.4.6 Transfers to Reserves
OC San is self -insured and contributes $3.85 million to their insurance reserve fund annually.
Additionally OC San also has a transfer for equity purchases of $3.50 million in FY 2023-24.
1.4.7 Summary of the Wastewater Revenue Requirements
The above components of the revenue requirement are summed to develop the overall wastewater
revenue requirements for OC San. Provided below in Table 1-2 is a summary of OC San's revenue
requirement analysis for FY 2023-24 - FY 2027-28.
Table 1-2. Summary of the Revenue Requirement Analysis ($000,000)
Revenues -
Rate Revenues
Other Revenue
$336.4
$337.4
$338.4
$339.4
$340.3
149.2
138.0
142.7
146.6
150.9
Total Revenues $485.7
$475.4
$481.1
$485.9
$491.3
Expenses -
Total O&M Expenses
Total Rate Funded Capital I']
Debt Service (P+I)
Transfers to Reserves
Total Rev. Requirement
Draw Down of Fund Balance
Deficiency of Funds
Bal./Defic. As a % of Rates
Assumed Rate Adjustment
Additional Revenue from Rate Adjust.
$209.9
$216.2
$222.7
$229.4
$236.2
296.8
262.3
$280.9
273.0
274.9
$68.6
68.6
$68.6
68.5
72.7
7.4
3.9
3.9
3.9
3.9
$582.6
$550.9
$576.1
$574.7
$587.6
($85.2)
($51.4)
($58.2)
($38.7)
($32.5)
($11.8)
($24.0)
($36.8)
($50.1)
($63.9)
3.5%
7.1 %
10.9%
14.8%
18.8%
3.50%
3.50%
3.50%
3.50%
3.50%
$11.8
$24.0
$36.8
$50.1
$63.9
The results shown in Table 1-2 indicate a deficiency of nearly 18.8% over next five years. It should be
noted that these deficiencies are cumulative and any rate adjustments in the initial years will reduce
the overall deficiency in the remaining years. This deficiency also reflects the use of $266 million of
reserve funds over the time period to reduce the impact to customers while also drawing down fund
balance to minimum target levels.
1.4.8 Review of Debt Service Coverage Ratios
As noted, OC San has debt financed significant portion of past capital improvements using Certificates
of Participation (COP). COPS are repayment obligations, rather than a traditional bonds or loans.
Though COPS are technically different than a bond, they do function in the same way where OC San
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pays the holder of the COP annual payments for principal and interest on the outstanding balance.
The COP agreements require OC San to maintain a minimum Debt Service Coverage Ratio of 1.25.
Table 1-3. Debt Service Coverage Ratio
Debt Service Coverage Minimum
Debt Service Coverage Before Rate Adjustment
Debt Service Coverage After Rate Adjustment
1.25
4.02 3.78 3.77 3.75 3.51
4.19 4.13 4.30 4.48 4.39
The calculation of debt service coverage ratios in the Study projects OC San to be significantly higher
than the 1.25 minimum requirement throughout the analysis period and reflect the strong financial
health of OC San. As a point of reference, HDR is not acting in the capacity of a financial advisor. The
calculation of the debt service coverage ratio is for illustrative purposes only. OC San should work with
their financial advisor or bond counsel to calculate the debt service coverage for financial purposes.
1.4.9 Summary of Reserve Levels
Reserve funds are critical to a utility's operations and adequate levels of reserve reflect prudent
financial management. Over the years OC San has refined the target reserve balance to best reflect
their financial needs. The target balance is a combination of calculations that represent the
considerations when establishing minimum target fund balances. These considerations include,
cashflow to pay the utilities
expenses, funding for capital $l,000 Reserve Fund
„
projects, annual debt service Repl&Refurb
$900
payments, self-insurance,
$800 - - . _ _ _ " _ " Self Funded Insurance @ $100M
and other unforeseen
situations or emergencies. $700 M Debt Svc@10% Outstanding COP
For the 2023-24 fiscal year, $600
-"" _"-"_ ____" �50%average ten-year ClP Balance
the target fund balance is $506 .
� 100% N ex[ Yea r AVG COP Svc.
$555 million, while the 2023- $406
24 fiscal year beginning fund $300 �10% Next Year Operating Expense
balance Is approximately $zoo �50% Next Year Operating Expense
$964 million.
$100 - -- Fund Balance
One of OC San's objectives $0 ■ ■ ■ ■ ■ - -- Target Reserve Balance
for the Study was to draw FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28
down existing fund balance to the target minimum levels over a 10-year period. The chart above shows
the projected ending fund balance sloping down over the five years of the analysis with the goal of
reaching the target balance in the next ten years. As noted, approximately $266 million of reserves
are being used to fund capital improvements as well as transition rates to cost -based levels over the
projected time period. After adding back projected accumulated interest earnings, in 2027-28 fiscal
year the fund balance is projected to reduce by approximately $200 million.
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1.4.10 Revenue Requirement Summary and Recommendations
The revenue requirement analysis undertaken herein was developed using generally accepted rate
making principles. In establishing the revenue requirement analysis consideration was given the
proper and adequate funding of OC San's operating and capital costs. The revenue requirements as
developed herein are reflective of the OC San's current financial policies and rate philosophies.
Based on the results of the revenue requirement analysis, it is recommended that OC San adjust the
overall level of rate revenues by 3.5% annually in FY 2023-24 through FY 2027-28. As noted, this
assumes the use of available reserves to fund the annual differences between total annual expenses
and revenues. In total, approximately $266 million is projected to be needed to prudently fund the
O&M and capital needs over this projected five year period.
1.5 Development of the Cost of Service Analysis
A cost of service analysis is concerned with the proportional distribution of the total revenue
requirement between the customer classes of service. For this Study, the classes of service were
identified as general user, industrial/permit user, and wastehaulers. The previously developed revenue
requirement analysis was utilized in the development of the cost of service analysis.
1.5.1 Objectives of a Cost of Service Analysis
There are two primary objectives in conducting a cost of service analysis:
• Proportionally distribute the revenue requirement between the customer classes of service
• Derive average unit costs for subsequent rate designs
The objectives of the wastewater cost of service analysis are different from determining the revenue
requirement. As noted above, the revenue requirement analysis determines the utility's overall
financial needs, while the cost of service study determines the proportional manner to collect the
financial needs from the identified customer classes of service. The second rationale for conducting a
cost of service analysis is to provide the basis for designing the proposed rates that reasonably reflect
the costs incurred by OC San to provide service.
Wastewater utility incurs costs to convey and treat the wastewater to the degree required by
government regulation. Treatment plants are designed around the overall volume of the wastewater
and the amount of pollutants , or strength, of the wastewater. Different treatment plant components
are designed to address the volume and/or the removal of the pollutants.
For this Study, the two types of pollutants the treatment plants are designed to treat are biochemical
oxygen demand (BOD) and total suspended solids (TSS). Wastewater coming from different customer
types often have different levels of concentration of BOD and TSS. Customers with higher than
average concentration of either, or both, BOD and TSS utilize the treatment plant to a greater extent
than an average user. Because these customers with higher than average concentration of pollutants
utilize treatment plant components designed to treat the pollutants they should then be responsible for
a higher proportionate share of the cost to treat the pollutant.
Each of these types of costs may be collected in a slightly different manner as to allow for the
development of rates that attempt to collect costs in the same manner as they are incurred.
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1.5.2 Overview of the Cost of Service Analysis
A cost of service study utilizes a three -step approach to review costs; functionalization, allocation, and
distribution of costs. The graphic shown below provides a simple overview of the three -step process
of functionalizing costs, allocating them to the various cost components (e.g., volume, BOD or TSS)
and then proportionally distributing costs to the identified customer classes of service (i.e., General
User, Industrial/Permit user, Wastehauler).
Functionalization Allocation Distribution
al Use
rial
hauler
al Use
rial
hauler
al Use
Jal
hauler
The above illustration is greatly simplified for purposes of explaining the cost of service process. These
basic concepts are adapted and tailored to OC San's specific wastewater system. In this case, OC
San's cost of service study uses the basic approach illustrated above, but it has been tailored to reflect
the specific and unique characteristics and customers of OC San's wastewater system.
Provided below is a more detailed discussion of the general procedures, or steps, illustrated above
and used within OC San's wastewater cost of service analysis.
Functionalization — Functionalization is the arrangement of expenses and asset (plant) data by major
operating functions within the utility (e.g., treatment, conveyance). For OC San's Study, the
functionalization of the cost data was accomplished through OC San's system of asset and expense
accounts. More specifically for expenses, OC San has a detailed account level that breaks the
expense into areas that are easily functionalized. Functional categories used in this Study were:
• Headworks • Sludge Thickening
• Primary Sedimentation • Digestion
• Secondary Sedimentation • Solids Handling
• Trickling Filters • Solids Disposal
• Activated Sludge Process • Effluent Disposal
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• Oxygen Activated Sludge Process 0 Interplant
• Aeration Equipment and Structures • Collection
• Blower Equipment and Structures
These are the same functional categories as used in prior cost of service studies for OC San.
Allocation — The next step of the cost of service is the allocation of the functionalized assets and
costs. Allocation determines what purpose assets serve and why expenses were incurred or what type
of need is being met. OC San's plant accounts and revenue requirement were reviewed and allocated
based on two types of allocators:
• Volume -Related Asset or Costs: Volume assets are those assets that are put into place to
treat the overall volume of wastewater. Volume costs are costs that tend to vary with the total
quantity of wastewater produced by a customer. Chemicals or electricity used in the treatment
of water is an example of a volume -related allocation since these costs tend to vary based
upon the total flow of wastewater.
• Strength Related Assets and Costs: For this Study, and as noted, two primary types of
pollutants were identified, BOD and TSS. Strength of wastewater is the concentration of the
BOD and TSS of the wastewater, typically expressed as milligram per liters. Strength of
wastewater is important because the higher the strength of the wastewater, either BOD or
TSS, the higher the costs to treat that wastewater. Assets and costs of the wastewater
treatment process are necessary to specifically treat either, or both, BOD and TSS.
The allocation of assets, capital and expenditures, used in OC San prior studies were reviewed by
HDR to determine if they remain appropriate. Based on the review, HDR found the allocations used in
past studies were appropriate and used to allocate costs in the development of this Study. Table 1-4
summarizes the functional categories descried above and the allocation.
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Table 1-4. Allocation of Functional Categories
Description
Headworks 75% 5% 20% 75% 5% 20%
Primary Sedimentation 30% 70% 15% 25% 60%
Secondary Sedimentation 70% 30% 100%
Trickling Filters 100% 100%
Activated Sludge Process 100% 100%
Oxygen Activated Sludge Process 100% 100%
Aeration Equipment and Structures 100% 100%
Blower Equipment and Structures 100% 100%
Sludge Thickening 25% 75% 25% 75%
Digestion 25% 75% 25% 75%
Solids Handling 25% 75% 25% 75%
Solids Disposal 45% 55% 45% 55%
Effluent Disposal 100% 100%
Collection 90% 10% 90% 5% 5%
Interplant 70% 30% 70% 30%
The results of the individual asset and expense allocation can be summed up by combining the total
asset, capital and operations and maintenance expense and arriving at an overall allocation. Table 1-
5 shows the summary level allocation.
Table 1-5. Summary of the Allocations
D- :•�
Allocation of Plant Assets 54% 25% 21 %
Allocation of Operations & Maintenance Expenses 23% 30% 47%
Allocation of Capital Expenses 47% 27% 27%
Table 1-5 provides the results of the allocation process which determined that 54% of plant in service
is necessary to serve the total volume of wastewater, 25% necessary to treat BOD, and 21 % TSS.
The allocation of plant assets in Table 1-5 is a composite of individual asset groups that best reflect
their function within the overall system. The asset allocations were used as a means of allocating debt
service and policy driven assumptions within the revenue requirement. Similarly, the O&M expense
allocation is a composite of several lines of individual types of expenses specifically allocated based
on their function which are combined to equal 23% volume, 30% BOD and 47% TSS. The allocation
of capital expenses is also a combined value based on each individual capital project, when combined
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they result in 47% volume, 27% BOD, and 27% TSS related. The capital allocation was used to
allocate capital funded from rates which is the annual amount of funding from current rate revenues.
Each of these allocations along with specific cost allocations are used in the process of allocating the
total revenue requirement. Table 1-6 below provides the summary of the revenue requirement
allocation.
Table 1-6. Summary of the Revenue Requirement Allocation ($000,000s)
Description:•�
Allocation of Revenue Requirement
Expense Allocation
Capital Funded Through Rates
Net Transfers
Debt Service
Total Revenue Requirement
Percent Allocation of Revenue Requirement
$209.89
r$49.07
$63.16
$97.66
296.77
127.52
80.72
88.54
(77.85)
(44.28)
(19.34)
(14.23)
68.61
36.85
18.30
13.46
$497.43
$169.16
$142.85
$185.43
100%
34%
29%
37%
Distribution of Costs — The first step in the distribution of the revenue requirement is to establish, or
identify, customer classes or groups of customers. OC San has three basic customer groups that this
Study is designing rates, General Users, Industrial/Permit Users, and Wastehaulers. The General
User group is the largest customer group, and it can be further broken down into various user types.
All Single family homes are charged a fixed rate which represents one EDU. All other customers within
the General User group are charged a fixed percentage of the EDU per 1,000 square feet. The
percentage per 1,000 square feet charge is based on the assumed flow and strength for each non
single family customer as compared to a single family customer/EDU. Permit/Industrial Users are
customers who's wastewater exceeds strength and flow limits requiring a special permit and are
charged by volume and rate per pound for BOD and TSS. Wastehaulers are charged a per gallon rate
reflecting the cost of treatment and administrative charges.
Once the allocation of the revenue requirement process is complete, and the customer groups have
been defined, the allocated costs are distributed to each customer group. OC San's allocated costs
were distributed to the various customer groups using the following distribution methods and factors.
Volume Distribution Factor: As noted above, volume -related assets and costs vary with the
total flow of wastewater to the treatment
plant. Therefore, the volume distribution
Wastewater Volume
factor is based the projected volume of
Distribution Factor FY 2023-24
wastewater for each customer class of
General Users
94.9%
service for FY 2023-34. The determination
of flow by customer type was determined
based on available customer and system
&I Industrial/Permit
information. General User flow is not
.1%
specifically known by OC San, given
wastewater is not metered, and the
WasNo)
tehaulers
o.oi /
customers are not direct OC San customers.
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However, other customer types such as, Industrial/Permit users, wastehauler, SAWPA and
IRWD flows are known or reasonably able to be estimated. General user flows were
determined by subtracting the know flow of other customer types from the known flow received
at the treatment plants. The volume distribution factor is used to distribute allocated volume
related costs and to establish the volume unit cost that are ultimately used in the rate design
step in this analysis. A more detailed discussion of the specific costs which are applied to these
base distribution factors is contained in the following subsection of this report.
• Strength Distribution Factors: Strength is the level of pollutants in the wastewater. As noted,
for OC Sans Study the main pollutants of concern are BOD and TSS. BOD is essentially the
measurement of organic pollutants in the wastewater, while TSS is the amount of undissolved
matter suspended in the wastewater. Both pollutants are typically measured in as the amount
of dry weight, in milligrams, contained within in a volume of water, such as a liter. Different
types of OC San's customers have different concentrations of BOD and TSS. The goal of any
wastewater rate is to design it in a way that recovers the proportionate share of volume and
strength costs.
Biochemical Oxygen Demand
Distribution Factor FY 2023-24
General
User
91.s9
/Permit
General
Use rs
98.2%
Total Suspended Solids
Distribution Factor FY 2023-24
i stri a I/Permit
1.6%
According to the 1998 State Water Resource Control Board (SWRCB) in California, Revenue Program
Guidelines Appendix G a single family residence has a BOD or TSS concentration between 175 to
250 milligram per liter and 100 to 200 gallons per day. Since the 1998 SWRCB Revenue Program
Guidelines OC San's wastewater customer characteristics have changed. Specifically, water usage
per capita has decreased as a result of water conservation efforts, water efficient appliances, and
other changes in customer behavior. The result in reduction in per capita water use for a wastewater
utility is less water being received at OC San's treatment plants. However, generally speaking, the
amount of BOD and TSS remains the same even as the flow is reduced. The result in lower volume
but same amount of pollutants is higher concentration of BOD and TSS. Based on the total pounds
removed at the plants, the known pounds from industrial and wastehauler customers, the projected
pounds for the general user class was calculated.
1.5.3 Major Assumptions of the Cost of Service Analysis
A number of key assumptions were used within OC San's cost of service analysis. Below is a brief
discussion of the major assumptions used.
• The test period used for the cost of service analysis was FY 2023/24. The revenue and
expense data for this time period was previously developed within the revenue requirement
analysis.
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• The allocation of plant was based on the prior studies and information developed by OC San.
HDR wastewater engineering staff reviewed the allocation of plant in service from these prior
studies and confirmed that it is an appropriate and valid means of allocating individual plant
assets.
• The prior study and information also formed the basis for allocating expense and was also
reviewed by HDR and deemed a valid method of allocating expense and was used for this
study.
• Capital funded from rates was allocated based on the overall allocation of capital projects.
1.5.4 Cost of Service Results
In summary form, the cost of service analysis began by functionalizing OC San's asset and expenses.
The functionalized assets and expense were then allocated to volume, BOD, and TSS. The distribution
of costs reflects the facilities and costs allocated to each customer class based on their respective
benefit. Based on the allocated costs, the next step in the cost of service is to develop average unit
costs for rate design purposes. Average unit costs are simply the allocated volume cost divided by
total volume, or total allocated strength cost divided by pounds of BOD or TSS. Table 1-7 is the system
average unit cost for volume and strength.
Table 1-7. Summary of the Unit Costs
LEM A6
Allocated Revenue Requirement ($1,000,000s) $97.08 $109.18 $141.96
Unit, (MG 11,000 Pounds BOD/TSS) 55,375 143 165
Unit Cost ($/1,000 Gallon I $/Pound BOD/ TSS) $1.75 $0.76 $0.86
The unit cost in Table 1-7 is a system average unit cost as a whole. The exception is Wastehaulers
that have a lower volume unit cost because they do not use the conveyance system facilities which
are a substantial portion of the volume costs. Wastehauler BOD and TSS unit cost are the same as
the overall system costs.
1.5.5 Cost of Service Conclusions and Recommendations
HDR has closely examined the results of the cost of service and is of the professional opinion that the
results are reflective of an proportional distribution of costs. HDR is of the opinion that OC San should
follow the results of the cost of service in making the final rate adjustments.
1.5.6 Summary of the Cost of Service Analysis
This section of the report has provided an analysis of the cost of service developed for OC San. This
analysis was prepared using generally accepted cost of service techniques.
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1.6 Development of the Wastewater Rate Designs
The final step of the comprehensive wastewater rate study process is the design of proposed rates to
collect the desired levels of revenues, based upon the results of the revenue requirement and cost of
service analyses. Each of the three customer groups in the cost of service have different rates. General
users are charged a rate per EDU, which is a rate based on an average single family home. There are
over one hundred other general user rates charged a percentage of the EDU on a per 1,000 square
feet basis. The percentages used for other General Users rates is a percent that reflects the customer
types usage compared to a single EDU. For example a multifamily housing unit is 70% of an EDU
while a bowling alley is 112% of an EDU. In both cases, the percentage reflects the flows and strength
of each customer type as compared to a single family home/EDU. Industrial/Permit customers are
customers who wastewater volume or concentrations are outside the parameters of the general user
rates. These customers are charged individual rate for volume, BOD, and TSS. Wastehaulers are
charged a rate per gallon for treatment and an administrative charge.
1.6.1 Review of the Overall Rate Adjustments
As indicated in the revenue requirement analysis, it is projected that OC San will need to adjust the
overall level of revenues to meet the projected O&M and capital improvement needs. There are
considerations that should be evaluated during the rate design step of the cost of service analysis. A
few of these considerations are continuity of rate philosophy, impact to customers, and sufficient
revenue generation. The rate design has followed the cost of service for General Use customers. It
was determined through discussions with OC San staff to phase in the adjustments to the
Industrial/Permit User rate over the 5 year rate adjustment period. The phase in was done to reduce
the impact to the Industrial/Permit user while still getting the rate to the appropriate level by the end of
the 5 year period. Provided below in Table 1-8 is a summary of the proposed rates by customer group.
Table 1-8. Summary of the Proposed Revenues and Adjustments to Rates ($1,000,000)
General User $321.50
$331.69
$10.19
3.2%
Industrial/Permit User ' 14.20
14.94 I
0.74
5.2%
Wastehaulers 0.75
0.75
0.00
0.0%
Total $336.45
$347.38
$10.93
3.2%
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1.6.2 General User Rates
The General User group is the largest of
OC San's customer groups with single
family customers comprising nearly 50%
of all of general user revenue. Multifamily
customers are several different types of
users including duplex, triplex, and
customers with more than three units. The
Non-residential customers includes a wide
range of customer types covering specific
types of establishments.
For General Users as single family is used
as the basis for the definition of an EDU,
or the billing unit for all other customer
types. Table 1-9 contains the current and
proposed rates for Single family and Multi-
family customers.
Table 1-9. Single Family and Multi -family Rates
General Users
Single Residence $347.00 $358.00 $371.00 $384.00 $397.00 $411.00
Multifamily per 1,000 square feet 242.90 250.60 259.70 268.80 277.90 287.70
All other customer types are measured as and equivalent to a single family as a percent per one
thousand square feet.
1.6.3 Industrial/Permit User Rates
OC San has approximately 300 customers who are charged rates for their actual volume of wastewater
and the pounds of BOD and TSS treated. These customers are charged individual rates as the flows
and pounds vary between customers and they generally have higher average volume and strength of
wastewater. Table 1-10 show the current and projected rates for the Industrial/Permit users.
Table 1-10. Industrial/Permit User
Volume ($/Million Gallons) $1,601.28 $1,676.09 $1,754.41 $1,836.37 $1,922.17 $2,011.98
Biochemical Oxygen Demand 667.99 705.08 744.23 785.55 829.17 875.21
($/1,000 Ibs)
Total Suspended Solids 777.00 815.51 855.92 898.34 942.86 989.58
($/1,000 Ibs)
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The results of the cost of service analysis showed that Industrial/Permit user rates should be increased
substantially. Given the impact this would have on individual customer bills, it was determined that the
rates would be phased in over the five year rate setting period is proposed. The rate transition results
in an approximately 5% average annual rate increase for Industrial/Permit users.
1.6.4 Wastehauler Rates
Wastehaulers are unique among OC San's customer in that they are not served by the conveyance
system but rather bring their waste to OC San for treatment. The concentration of Wastehauler
wastewater is generally much higher than a typical residential customer. OC San has set the rate for
Wastehaulers on a per gallon basis. there are two main components that make up the Wastehauler
rate, the treatment costs and the cost to administratively process the manifests generated per
truckload. Table 1-11 shows the calculation of the Wastehauler Rates.
Table 1-11. Wastehauler Rates
Allocated Treatment Cost
BOD
$270,336
TSS
305,665
Volume
6,557
Total Allocated Cost
$582,558 13,360,000 $0.04
Wastehauler Administrative Charges
Administrative Cost per Manifest
$101
Number of Manifests
X 6,832
Total Administrative Costs
$690,032 13,360,000 $0.05
Total Wastehauler Charge per Gallon
$0.09
The Wastehauler rate was kept flat for the five year rate setting period. Table 1-12 provides the
Wastehauler rates.
Table 1-12. Wastehauler Rates per Gallon
Current
Rate
Treatment Charge $0.04 $0.04
$0.04
$0.04
$0.04
$0.04
Administrative Charge 0.05 0.05
0.05
0.05
0.05
0.05
Total Wastehauler Rate $0.09 $0.09
$0.09
$0.09
$0.09
$0.09
Wastehaulers outside OC San's service area are charged a capital charge that is based on the
annexation fee and the CFCC amortized over 50 years which equals $0.23 per gallon in addition to
the rates in Table 1-12.
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1.7 Summary of Wastewater Rate Study
The wastewater rates, as proposed herein, are cost -based and were developed using generally
accepted rate making methods and principles. The proposed rates have been developed based on
the results of the revenue requirement and cost of service analysis. The implementation of proposed
rates should generate the additional revenue needed to meet the projected O&M and capital needs.
1.8 Rate Survey
There are many factors that go into a utility's cost to serve its customers and their resulting rates. A
few of those factors include the relative size of the utility, density of customers, if it is primarily a
regional system, age of the system, type treatment process, availability of other revenue such as
property tax and cost of borrowing. OC San is unique in many ways, it largely is a regional wastewater
that does not directly serve many of its customers with the exception of a small subset of customers.
Table 1-13 provides annual rates for wastewater collection and/or treatment utilities and a few key
characteristics for comparison purposes.
Table 1-13. Survey of Other Wastewater Utilities
Napa Sanitation
$739
10
86,250
Regional
Eastern MWD
408
43
870,000
East Bay MUD
475
63
740,000
Regional
San Francisco PUD
1,270
80
1,840,000
Sacramento Regional County Sanitation District
444
124
1,600,000
Regional
Orange County Sanitation District
358
181
2,600,000
Regional
City of San Diego
687
180
2,500,000
Los Angeles Sanitation (City)
636
400
4,000,000
Los Angeles County Sanitation District
226
510
5,000,000
Regional
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2 Capital Facility Capacity Charges
2.1 Capital Facility Capacity Charge Study
2.1.1 Introduction
The purpose of wastewater Capital Facility Capacity Charges (CFCCs) is to provide for payment of an
equitable share of capital costs attributable to new customers connecting to, or existing customers
requesting additional capacity on, OC San's wastewater system. By establishing cost based CFCCs,
OC San attempts to have growth pay for growth by having new customers pay their equitable share
of the infrastructure already in place, which has been funded by existing customers, and which
provides the available capacity to serve new customers (growth), and future infrastructure necessary
to serve new customers.
The wastewater CFCC was last reviewed in 2017. Industry best practice recommends CFCCs should
be adjusted annually to reflect changes in construction costs (i.e., inflation), and to update the CFCCs
whenever comprehensive planning documents for the system have been updated, or significant
infrastructure projects have been completed. OC San most recently updated the wastewater CFCCs
based on an inflationary index as of July 1, 2022.
2.1.2 CFCC Study Overview
The wastewater CFCCs are calculated in conformance with California legal requirements, generally
accepted industry standard practices, and are based on OC San's specific wastewater system
planning and design criteria. CFCCs are based on the existing infrastructure, and if applicable future
capital improvements needed to serve growth, divided by the number of equivalent dwelling units
(EDUs) that will be served by the system capacity. A component buy -in (existing) and expansion
(future) approach is often taken in developing the CFCCs because each component can have different
planning and design criteria.
OC San has previously used the combined methodology for calculating the wastewater CFCCs which
adds both components (buy -in and expansion) approach together. The Water Environment Federation
(WEF) Manual of Practice No. 271 discusses that the combined methodology is used when the
wastewater system has available capacity in the existing wastewater system and future capital
improvements are needed to serve new customers. Given this is the case for OC San, this Study and
analysis will focus on a "combined" approach (existing + future).
The calculations must also take into account the financing mechanisms of capital improvements.
CFCCs must be implemented according to the new connections proportionate share of the wastewater
system. This way, the CFCCs are related to the new customer's share of the wastewater system and
infrastructure in place was well as their proportionate share of the future infrastructure required to
serve them.
OC San, as a matter of policy, may charge any amount up to the calculated and cost -based CFCC but
not over that amount. Charging an amount greater than the net allowable CFCC would not meet the
1 Water Environment Federation Manual of Practice No. 27, 4t" Edition, p. 206-211.
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practical basis of charging cost -based charges that are an equitable share related to the benefit
derived by the customer.
OC San currently implements and assesses the wastewater CFCC based on the number of bedrooms
for residential customers, and on a per 1,000 square feet basis for non-residential, residential
accessory structures, and accessory dwelling units. One EDU equals the base charge of a single-
family, 3+ Bedrooms. Customers with more bedroom units are charged by the number of additional
bedroom units to determine the number of EDUs. Table 2-1, below, provides the present wastewater
CFCC for OC San.
Table 2-1. Present Capital Facilities Capacity Charge(l)°(Z)
Single Family Residential (SFR), per unit
5+ Bedrooms
1.39
$7,949
4+ Bedrooms
1.19
6,806
3+ Bedrooms, *Base Charge
1.00
5,719
2+ Bedrooms
0.81
4,633
1+ Bedrooms
0.62
3,545
Multi -Family Residential (MFR)
4+ Bedrooms
1.08
$6,177
3+ Bedrooms
0.89
5,090
2+ Bedrooms
0.70
4,004
1+ Bedrooms
0.50
2,859
Studio 0.32 1,829
Non -Residential, Residential Accessory Structures, and Accessory Dwelling Units, Per 1,000 square feet
Low Demand $360
Average Demand 2,234
High Demand 5,309
(1) Equivalent dwelling unit for residential is 3+ bedroom units as the base charge.
(2) Present CFCC as of July 1, 2022.
It should be noted that IRWD is not required to pay CFCCs based on a contractual agreement. IRWD
provides funding to OC San for construction of costs of certain wastewater collection, transmission,
treatment, and disposal facilities to be used by IRWD.
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2.1.3 CFCC Calculation
There are various approaches that can be used to establish CFCCs which ultimately depend on the
available capacity in the utility (i.e., ability to meet future customer demands). The Water Environment
Federation (WEF) Manual of Practice No. 27, Financing and Charges for Wastewater Systems, Fourth
Edition discusses three generally accepted tap fees methods:
The buy -in method is based on the value of the existing system's capacity. This method is
typically used when the existing system has sufficient capacity to serve new development now
and into the future.
• The incremental cost method is based on the value or cost to needed to add to the existing
system to serve additional customers. This method is typically used when the existing system
has limited or no capacity to serve new development now and into the future.
The combined approach is based on a blended value of both the existing and future costs
needed to serve a new customers. This method is typically used where some capacity is
available in the existing system, but future projects are needed in other parts (e.g., wastewater
lift station) to serve new development at some point in the future.
The combined approach was used for OC San's wastewater CFCC calculation. The wastewater
system has specific expansion needs to serve new customers. Therefore, the combined approach is
the approach that best fits OC San's expansion of facilities given the impacts of growth outlined in the
Master Plan. Therefore, the existing and future component cost per EDU is determined, and the cost
per EDU for each existing and future component is added together for a combined total.
Within the generally accepted CFCC methodologies,z there are a number of different steps used to
establish cost -based and equitable CFCCs. These steps are as follows:
• Step 1 — Determination of system planning criteria
• Step 2 — Determination of equivalent dwelling units (EDUs)
• Step 3 — Valuation of system component costs
• Step 4 — Determination of any credits
Step 1 — Determination of System Planning Criteria
The first step in establishing the CFCC is the determination of the system planning criteria. This implies
calculating the amount of capacity required by a single-family residential customer, or one EDU. The
use of an adopted facility plan or master plan for the utility provides the basis for the CFCC system
planning criteria. These planning documents provide the rational planning basis and criteria for the
facilities and investment needed to operate and maintain the system properly and adequately.
Generally, for a wastewater system the planning criterion is the average flow per EDU. The OC San
standard specifications in the National Pollutant Discharge Elimination System (NPDES) permit,
Master Plan, and Capital Improvement Plan are the documents and information that are referenced
2 Methodologies established in industry documents referenced as System Development Charges for Water,
Wastewater, and Stormwater Facilities, by Arthur C. Nelson; AWWA M-1 Manual, 7t" Edition and WEF Manual of
Practice No. 27, Financing and Charges for Wastewater Systems, Fourth Edition.
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for the determination of the system planning criteria. Table 2-2, below, provides the planning data for
OC San based on their NPDES permit.
Table 2-2. CFCC — Planning Data
Plant 1 Fountain Valley
182.00
Plant 2 Huntington Beach
150.00
Total Permit Dry Weather Flow')
332.00
SAWPA Rights (2)
(30.00)
RA 14(2)
(10.00)
Urban Dry Weather Runoff(2)
(10.00)
Total
282.00
(1) NPDES Order no. R8-202, NPDES No. CA01, dry weather flow of 332 MGD.
(2) 2017 Master Plan, Chapter 7, page 7-5, Table 7-1; Maximum SAWPA, RA14 (IRWD), Urban Runoff. SAWPA has
the rights to purchase up to 30 MGD, SAWPA has currently only purchased 17 MGD.
Step 2 — Determination of Equivalent Dwelling Unit (EDU)
The next step is the determination of the EDUs. An EDU provides a "common denominator" for
assessing impact on a utility system. The determination of the total system EDUs is an important
calculation in that it provides the linkage between the amounts of infrastructure necessary to provide
service to a set number of customers. This implies that if the system is designed to provide service for
demands up to the year 2035, then the infrastructure costs are divided by the total EDUs projected to
be connected by 2035 to determine the equitable and proportionate cost per EDU.
System planning criteria are used to establish the capacity needs of an equivalent dwelling unit. The
average day flow in gallons per EDU is 230 gallons per EDU based on the Master Plan planning
assumption for 2035. This is based on Master Plan of 75 gallons per person per day and the number
of persons per household of 3.1 based on current Census information (75 X 3.1 = 230 gallons per
EDU). The system capacity in MGD is divided by the average day flow per EDU to estimate the total
EDUs. The current system average day flow is 221 MGD reflecting existing EDUs of 962,963 (221.00
= 230 = 962,963 EDUs). The future EDUs based on total system capacity of 282 MGD is 61 MGD
(282 MGD — 221 MGD existing = 61 MGD) or 265,795 future EDUs (61.00 = 230 — 265,795 EDUs). A
summary of the existing, future and total EDUs is presented in Table 2-3.
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Table 2-3. CFCC — Equivalent Dwelling Units
Equivalent Dwelling Units — Existing
Residential I
630,912
Commercial
292,199
Industrial
39,854
Equivalent Dwelling Units Existing 221.00 230
962,963
Equivalent Dwelling Units — Future
Residential
174,143
Commercial
80,652
Industrial
11,000
Equivalent Dwelling Units Future 61.00 230
265,795
Total 282.00 230
1,228,758
Summary
Residential
805,055 65.5%
Non -Residential
423,706 34.5%
Total
1,228,758 100.0%
(1) Total permit capacity from previous table and the existing capacity of 2022 average
flow at plant from 2022
wastewater rate study.
(2) 2017 Master Plan, Chapter 7, page 7-3, average daily flow of 230 for 2035.
It is important to note the percentage of EDU split between Residential and Non -Residential of 65.5%
and 34.5% respectively, will be used later to convert EDUs to a square footage basis for Non -
Residential. Given the development of the wastewater system EDUs the focus shifts to the calculation
of the CFCC for each component. This aspect of the analysis is discussed in the next steps below.
Step 3 — Valuation of System Component Costs
The next step of the analysis is to review the major functional system infrastructure to determine the
CFCC for the wastewater system. In calculating the CFCC for OC San, existing components, debt
service for existing facilities net of capital fund reserves, and future capital improvements relating to
expansion were included. The methodology used to calculate each of these components is described
below.
Existing or Buy -in Component
To calculate the value of the existing assets for the CFCC, OC San's methodology considered the
original cost of each asset. OC San provided an asset listing for the various existing components and
their installation dates. This data was reviewed in this analysis by OC San staff and HDR for elimination
of non -backbone infrastructure such as equipment and vehicles, and finally elimination of assets that
were not OC San paid and were instead funded by grants or developer contributions. A replacement
cost new less depreciation method was used. To accomplish this, the original cost of each asset was
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escalated to current, September 2022 dollars, based on the Construction Cost Index (CCI) for the Los
Angeles area published in the Engineering News -Record (ENR). Based on the installation date and
an estimated useful life, provided by OC San for each asset, the replacement cost for each asset was
depreciated. The total net, CFCC eligible asset value as of June 2022, totaled $2.64 billion. Further
detail can be seen on Exhibit 7 of the Technical Appendix.
In addition, construction work in progress as of June 2021 was added in the amount of $407 million.
This added to the existing assets at RCNLD totals $3.0 billion ($2.64 billion assets + $407 million
CWIP = $3.0 billion total). Further detail on CWIP can be seen on Exhibit 4 of the Technical Appendix.
Reserves
The capital fund reserves are considered to be asset valuation adjustments to the overall wastewater
system since they are infrastructure costs that relate to the wastewater system as a whole. This
approach assumes that OC San could retire any outstanding debt with their reserves on hand. The
total capital fund reserve, as of June 2021 is $961 million. Further detail can be seen on Exhibit 6 of
the Technical Appendix.
Future Component
An important requirement for a CFCC study is the connection between the anticipated future growth
on the system and the required facilities needed to accommodate that growth. For purposes of this
study, OC San's most current Capital Improvement Plan (CIP) for the ten-year planning period of 2023
to 2032 was provided by OC San. This included construction work in progress projects that were not
included as booked assets in 2021 and are shown in the CIP plan under years 2021 and 2022. It
should be noted that the future components are in today's dollars (2022). Exhibit 8 of the Technical
Appendix contains the details of this portion of the CFCC.
The total future capital projects totaled $3.6 billion. The total future component of $3.6 billion divided
by total EDUs of 1,228,758 results in $2,944 per EDU for the future component ($3.6 billion +
1,228,758 EDUs = $2,944 per EDU). The capital improvement listing can be seen on Exhibit 8 of the
Technical Appendix.
Step 4 — Determination of Any Credits
The last step in the calculation of the CFCC is the determination of any credits. The credit considers
the method used to finance infrastructure on the system so that customers are not paying twice for
infrastructure. The double payment can come in through the imposition of a CFCC and then the
requirement to pay debt service within a customer's wastewater rates.
This component accounts for the outstanding debt principal on existing assets. By segregating the
debt service out, the cost can be clearly identified and calculated appropriately. To avoid double -
counting of the assets financed with debt, the future principal associated with those assets is deducted
from the existing infrastructure value.
OC San has several outstanding debt issues from 2010 to the recent 2022 Refunding issue. The total
outstanding debt principal is $789 million or $643 per EDU debt credit ($789 million + 1,228,758 EDUs
= $643 per EDU debt service credit). Further detail can be seen on Exhibit 5 of the Technical Appendix.
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2.1.4 CFCC Summary of Net Allowable Calculation
Based on the sum of the component costs calculated above, the allowable wastewater CFCC was
determined. "Allowable" refers to the concept that the calculated CFCC is OC San's cost -based CFCC.
OC San, as a matter of policy, may charge any amount up to the allowable CFCC, but not over that
amount. Charging an amount greater than the allowable CFCC would not meet the practical basis of
a cost -based CFCC. Table 2-4 shows a summary of the allowable CFCC. Details are provided in
Exhibit 3 of the Technical Appendix.
Table 2-4. Summary of CFCC per EDU
Existing Wastewater System (Replacement Cost Less Depreciation) $2,644,655,192
Construction Work in Progress 407,684,294
Less: Outstanding Debt Principal (789,750,000)
Plus: Reserves 961,618,916
Future Wastewater Infrastructure 3,617,505,992
Net Existing and Future Infrastructure $6,841,714,393
Total Existing and Future EDUs 1,228,758
Total Capital Facilities Capacity Charge per EDUM $5,568
(1) One EDU equals 3+ Bedrooms.
This calculated wastewater CFCC of $5,568 compares to OC San's current CFCC of $5,719 per EDU,
or a decrease of $151. The $5,568 per EDU reflects one (1) equivalent dwelling unit which is a 3+
bedroom unit. The small decrease should not be compared to exact cost since this analysis is based
on the value of the current system in today's dollars. OC San adjusts the CFCC annually based on an
ENR index as of July each year. It is our recommendation that OC San hold the CFCC at the current
level until next year's ENR update.
2.1.5 CFCC Implementation
OC San implements the Non -Residential CFCC based on 1,000 square feet basis. This is based on
one EDU equaling 1,581.52 square feet. Table 2-5 develops the CFCC per EDU converted to 1,000
square feet for non-residential.
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Table 2-5. CFCC per EDU Converted to 1,000 Square Feet
Net Existing and Future Infrastructure
Residential Percentage of EDUs
$ Percentage Share
Total Residential EDUs
Dollars per EDU CFCC
Non -Residential Percentage of EDUs
$ Percentage Share
Total Non -Residential EDUs(1)
423,706
Assumption of Square Foot per EDU(z) X 1,581.52
Non -Residential Square Footage (1,000 sq. ft.) = 670,099
Dollars per 1,000 square feet CFCC
(1) Non -Residential EDUs calculated in planning data. See Table 2-3 of this report.
(2) OC San One EDU equals 1,581.52 square feet.
$6,841,714,393
65.5%
$4,482, 539, 528
805,055
$5, 568
34.5%
$2,359,19,075
670,099
$3, 521
Table 2-6 below summarizes the CFCC for present and calculated for Residential and Non -
Residential. As shown in the table the overall adjustment for Residential is a slight decrease which
has been recommended to hold at the current level until next year's annual ENR adjustment. However
the Non -Residential shows an increase. This is due to the implementation of the CFCC in the past.
This study updates the CFCC for Non -Residential customers that reflects cost based levels.
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Table 2-6. Present and Calculated Capital Facilities Capacity Charge
Use CategoryPresent Calculated
Single Family Residential (SFR), per unit
5+ Bedrooms 1.39 T $7,949 T
$7,739
(2.6%)
4+ Bedrooms 1.19 6,806
6,626
(2.6%)
3+ Bedrooms, *Base Charge 1.00 5,719 ■
5,568
(2.6%)
2+ Bedrooms 0.81 4,633
4,511
(2.6%)
1+ Bedrooms 0.62 3,545
3,452
(2.6%)
Multi -Family Residential (MFR)
4+ Bedrooms 1.08 $6,177
$6,014
(2.6%)
3+ Bedrooms 0.89 5,090
4,956
(2.6%)
2+ Bedrooms 0.70 4,004
3,898
(2.6%)
1+ Bedrooms 0.50 2,859
2,783
(2.6%)
Studio 0.32 1,829
1,781
(2.6%)
Non -Residential, Residential Accessory Structures, and Accessory Dwelling Units, Per 1,000 square feet
Low Demand 1.08 $360
$242
(32.8%)
Average Demand 0.89 2,234
1,485
(33.5%)
High Demand 0.70 5,309
3,521
(33.7%)
(1) 1 equivalent dwelling unit for residential is 3+ bedroom units as the base charge.
(2) Present CFCC as of July 1, 2022.
(3) Combined methodology established in Water Environment Federation (WEF) Manual of
Practice No.
27, 4th
Edition, p. 206-211.
Based on the recommendation to hold the Residential at current level until next year's ENR analysis,
Table 2-7 shows the proposed 5-year adjustments for the CFCC.
ProposedTable 2-7. .-
CFCC 2022-23 1 2023-24 1 2024-25 1 2025-26 2026-27 1 20274
Residential 3+
$5,719
$5,719
ENR
ENR
ENR
ENR
Non -Residential 11
IN
' m
Low Demand
$360
$242
ENR
ENR
ENR
ENR
Average Demand
$2,234
$1,485
ENR
ENR
ENR
ENR
High Demand
$5,309
$3,521
ENR
ENR
ENR
ENR
The wastewater CFCC developed and presented in this section of the report are based on the planning
and engineering design criteria of OC San's wastewater system, the value of the existing assets, future
projects and generally accepted ratemaking principles. Consistently updating the charge annually
based on the Engineering New Record Construction Cost Index 20-City Average and updating the
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CFCC on a routine basis will continue to create equitable and cost -based charges for new customers
connecting to OC San's wastewater system.
2.2 Supplemental Capital Facility Capacity Charge Study
OC San's current industrial use ordinance, determines if additional CFCCs, or Supplemental Capital
Facility Capacity Charge (SCFCC) can be imposed on industrial users who place larger than average
demands on the wastewater system. The SFCC is calculated on the same methodology as the CFCC.
OC San's total existing and future asset value is divided by the total number of EDUs served. The
existing and future asset values allocated between Flow, BOD, and TSS in the CFCC analysis are
used to develop the SCFCC. The details of the total existing and future value of $6.8 billion allocated
between Flow, BOD, and TSS can be found in Exhibit 3 of the Technical Appendix. The allocated
value of Flow, BOD, and TSS are amortized over a thirty-year period at an interest rate equal to the
current Bond Buyer 20-Bond Index interest rate. The SCFCC calculation is shown in Table 2-8. The
SCFCC details can be seen on Exhibit 2 of the Technical Appendix.
Table 2-8. Calculated Supplemental Capital Facilities Capacity Charge(' ),(2)
A Value of Existing/Future Assets $6,841,714,393
$3,319,186,756
$1,880,886,372
$1,641,641,266
B Total EDUs
I 1,228,758
1,228,758
1,228,758
1,228,758
C SCFCC per EDU (A= B) $5,568
2,701
1,531
1,336
D 30 Year Amortized SCFCC(2) ■I
$144
$82
$71
E EDU Basis
185
288
290
0.4481
0.4503
gpd
Ibs/day
Ibs/day
F SCFCC (D _ E =365 Days)
$0.002140
$0.500628
$0.434827
per gallon
per lb.
per lb.
(1) Calculated CFCC based on "Combined" methodology established in Water Environment Federation (WEF)
Manual of Practice No. 27, 4t" Edition, p. 206-211.
(2) Bond Buyer's 20 Bond Index as of July 2022 at a rate of 3.4% for 30 years.
OC San will continue to review the SCFC on a regular basis to review potential capital cost shifts and
to maintain SCFCC rate payer equity. Table 2-9 shows the comparison of the present SCFCC and the
calculated SCFCC.
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Table 2-9. Present and Calculated Supplemental Capital Facilities Capacity Charge(' ),(2)
Daily Charge (2)
Flow $0.001996 $0.002140 $0.00014471 7.2%
BOD $0.481210 $0.500628 $0.019418 4.0%
TSS $0.270840 $0.434827 $0.163987 60.5%
(1) Present SCFCC Ordinance No. OCSD-57, Table D, for July 1, 2022.
(2) 2.10 (i) an increase of discharge flow of 25,000 gallons per day (gpd), or 25% per day over its established
baseline whichever is less; 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 discharge or the District.
The large change to TSS was reviewed and is a result of several factors, first the addition of the
Ground Water Replenishment asset shifted costs between flow and BOD and TSS, secondly previous
studies did not adopt, or transition to, the calculated level for TSS. Given the large change, Table 2-
10 shows the recommended transition of the TSS SFCC over the upcoming five year period.
Table 2-10. Present and Calculated Supplemental Capital Facilities Capacity Charge')°(Z)
Flow $0.001996 $0.002140
BOD $0.481210 $0.500628
ENR ENR ENR ENR
ENR ENR ENR ENR
TSSM $0.270840 $0.303640 $0.336440 $0.369240 $0.402040 $0.434830
(1) All 2022-23 rates are as of July 1, 2022; 2023-24 Flow and BOD are the calculated rate.
(2) For TSS, the difference between 2027-28 and 2022-23 was spread over 5 year period.
2.3 Annexation Charge Study
OC San does not receive any tax exchange from annexed properties because of an agreement with
the County of Orange. The annexation charge is established through Ordinance No. OCSD-33,
beginning January 1, 2004 to be paid for annexation to OC San for wastewater services. Table 2-11
shows the present Annexation Charge.
Table 2-11. Present Annexation Charge')
Consolidated Revenue Area Nos. 1-13 $4,235 per Acre
Revenue Area No. 14 Not Applicable
(1) Present Annexation Charge Ordinance No. OCSD-33.
The collection of the annexation fee will not result in any specific project and will not result in a direct
physical change in the environment. The annexation fees were established based on a rational basis
between the fees charged each property that is annexing, and the service and facilities provided to
each annexed property by OC San.
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In order to keep up with inflation of costs since the implementation of the charge in 2004, the proposed
annexation charge has been updated to reflect annual Consumer Price Index (CPI) changes from
2004 to present day of 2022. The LA CPI was used for the calculation resulting in an increase of the
Annexation Charge from $4,235 per acre to $6,767 per acre. Table 2-12 details the calculation.
Table 2-12. Present and Calculated Annexation Charge
Revenue Area M
Jan. 2004 LA Consumer Price Index
Jan. 2022 LA Consumer Price Index
LA CPI Factor 2004 to 2022 (301.21 = 188.50 = 1.60)
2004 Consolidated Revenue Area Nos. 1-13
Multiplied by LA CPI Factor
2022 Revenue Area No. 14
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188.50
301.21
1.60
$4,235 per Acre
1.60
$6,767 per Acre
29
FN Orange County Sanitation District
Rebate Program
3 Rebate Program
3.1 Introduction
OC San provides its non-residential general user customers the opportunity to apply for a water
efficiency rebate or reduced charge. The water efficiency rebate, or reduced charge, is a reduced rate
that represents the difference between the calculated charge and the actual flow for the customer
based on past water consumption. Customers may request a rebate from prior billing periods and or
request a reduced rate going forward. Verifiable proof, such as water bills of the reduced water usage
must be provided to the OC San General Manager or his/her designee. The bill charged to any
customer seeking a rebate or reduced future rate cannot be less than that of the single family rate.
The current ordinance also allows for a reduction in the BOD and TSS component of the rate if it is
significant and with verifiable proof to the satisfaction of the OC San General Manager. Once the
reduction in billed volume or BOD or TSS is established the customer can lock that reduction in for
three years.
3.2 Analysis
OC San's customers benefit from the rebate program to achieve equitable rates for customers who do
not conform to the flow and concentration of pollutants per 1,000 square feet per EDU of their user
group. An alternative rate design often used is a volume -based rate such as the City of Los Angles
Sanitation department's rates. This type of rate design avoids the flow -based differences among
customer groups by utilizing the City's water meters as a surrogate for measuring wastewater flow.
This type of rate design is not feasible for OC San because they do not have access to their customer's
water meters.
OC San has been evaluating if the current rebate program is working as intended and has asked HDR
to analyze the program for possible changes. There are a few complicating factors that have risen
over the years. One issue is if the BOD and TSS levels should be adjusted at the same rate as the
volume. Conservation programs generally reduce water consumption but not necessarily the amount
of pollutants that go into the wastewater. As water is reduced the concentration of the pollutants
generally increases, in other words the actual weight of the pollutants stay the same at the reduced
consumption level. It is possible for a customer within a specific usage type to have less BOD and
TSS than another like customer due to different physical process or if they have installed facilities that
reduce the amount of pollutants from entering the wastewater. The problem a customer may face
when seeking a reduced rate based on lower BOD and or TSS concentrations is they might not be
able to find a company that will test their wastewater thus providing verifiable proof. The goal of this
program is to adjust rates equitably to reflect the actual customer characteristics and reduce the
administrative burden on OC San Staff.
3.3 Alternative Rebate Calculation
Rebate programs for sewer utilities with EDU based charges are not unique to OC San. Los Angeles
County Sanitation District (LACSD) also has an EDU based rate and has a rebate program for their
customers. LACSD's Low -Water Rebate Program provides rebate to customers based on the percent
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Rebate Program
of flow reduction within structured tiers. Unlike OC San's current rebate program that individually
calculates the rebate based on the customer's actual flow, LACSD's tiered structure is based on the
ratio of the average daily flow to the assumed flow for the customer's parcel. Customer's flow must
be below 90% of the assumed flow to qualify for the rebate. Table 3-1 shows LACSD's rebate tiers.
Table 3-1. Los Angeles County Sanitation District Tiered Rebate program
90% or Greater
0%
70% to 89%
20%
50% to 69%
40%
30% to 39% 60%
29% or Less 80%
The benefit for a tiered rebate program like LACSD is the simplicity. If a customer falls within the tier
they receive a set reduction in their rate. However, the LACSD program does not account for changes
in the actual weight of the pollutants like BOD or TSS. As discussed in the Cost of Service section 1.5
of this report, the cost to treat wastewater typically has three cost components, the volume of the
wastewater, the weight of BOD and weight of TSS. Reduced water is likely to be a result of water
conservation efforts like low water use appliances or a reduction is irrigation which do not impact the
weight of BOD or TSS.
3.4 Recommendations
HDR recommends OC San closely consider the benefits and drawbacks when considering making
changes to their rebate program. The intent of the program is to adjust the customer rates that more
closely match the customers cost of service and in doing so results in a more equitable rate. The
administrative burden of their current system requires a calculation for each customer requesting a
rebate resulting in more time and thus higher costs to run the program. Stability and transparency are
also important aspects to any rate related program. Having a program like the LACSD tiered rebate
program would be easily explained by OC Staff and more easily understood by customers. The current
rebate program also has some issues that are not easily addressed. The main issue being that the
basis of the flow and concentration of the pollutants are based on the 1998 State Water Resource
Control Board (SWRCB) in California, Revenue Program Guidelines Appendix G which is 24 years old
and cannot be accurately verified.
OC San should also consider extending the lock -in program from 3 years to 5 years. Extending the
lock -in period to 5 years would reduce amount of staff time spent on matters dealing with customer
rebates and also provide stability in the funds returned to customers from the rebate from year to year.
The 5 year lock -in program is also beneficial to the customers who would have to submit paperwork
less frequently.
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Miscellaneous Fees and Charges
4 Miscellaneous Fees and Charges
4.1 Introduction
OC San has requested several other fees be updated along with this study. These fees include, permit
fees, sampling fees, and inspection fees. It is in the interest of OC San and its customers to charge
fees to customers for tasks that require significant expense or labor. Charging these fees at the cost
to provide them prevents other customers from subsidizing customers requiring the activities involved
with these other services. These fees should be updated at regular intervals to verify the charges
reflect current and future assumed costs of materials, labor, and overhead costs. Whenever possible
specific hourly rates, and times associates with the fee were used to more closely approximate the
true cost of the permit or other activity.
4.2 Administrative Fees and Charges
Administrative Fees and Charges Related to Permittees for Class 1 and 2 dischargers were calculated
using estimated time to process the permit and current average hourly staff rates, plus 33% for
overhead. The results of this calculation were as much as 36% increase. To reduce the impact of this
large increase those fees were phased in over the five year period. Wastehauler and Administrative
processing fees were not change over the five year period. Table 4-1 shows the class 1 and 2
administrative, Wastehauler and administrative processing fees.
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Table 4-1. Administrative Fees and Charges Related to Permittees per Year
Description
I
Administrative Fees and Charges Related to Permittees per Year
A. Class I/Certified Discharger
$1,685.00
$1,791.00
$1,904.00
$2,024.00
$2,152.00
B. Class 11
554.00
591.00
630.00
672.00
717.00
C. SPDP1
1,192.00
1,225.00
1,259.00
1,293.00
1,328.00
SPDP Renewal
860.00
913.00
969.00
1,029.00
1,092.00
D. Wastehauler
207.00
225.00
245.00
267.00
291.00
E. Certified Zero/No Discharge
126.00
133.00
140.00
147.00
155.00
Wastehauler
F. Permit Decal Initial Issue
$25.00
$25.00
$25.00
$25.00
$25.00
G. Permit Decal Replacement
50.00
50.00
50.00
50.00
50.00
H. Entry Card Initial Issue
50.00
50.00
50.00
50.00
50.00
I. Entry Card Replacement
100.00
100.00
100.00
100.00
100.00
J. After Hours Discharge - Prearranged
102.00
102.00
102.00
102.00
102.00
K. After Hours Discharge - Emergency
165.00
165.00
165.00
165.00
165.00
Administrative/Processing Fees
L. OCSD's Collection of Water Consumption
$500.00
$500.00
$500.00
$500.00
$500.00
Data
M. Appeal Hearing Filing Fee
$800.00
$800.00
$800.00
$800.00
$800.00
N. Late Application (30 days or less from
$500.00
$500.00
$500.00
$500.00
$500.00
expiration date)
O. Late Application (15 days or less from
$1,000.00
$1,000.00
$1,000.00
$1,000.00
$1,000.00
expiration date)
4.3 Industrial Discharger, Source Control and Non-
compliance Sampling Fees
Industrial Discharger, Source Control and Non-compliance Sampling Fees were not adjusted for the
five year adjustment period. Table 4-2 shows the Industrial discharger, source control and non-
compliance sampling fees.
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Table 4-2. Industrial Discharger, Source Control and Non-compliance Sampling Fees
Description
Cost of Processing and Sampling Following a Minor
$200.00
$200.00
$200.00
$200.00
$200.00
Violation
Cost of Processing and Sampling Following a Major
400.00
400.00
400.00
400.00
400.00
Violation
Non -Compliance Resampling Fee
275.00
275.00
275.00
275.00
275.00
4.4 Inspection Fees
Inspection fees were adjusted by the Los Angeles Consumer Price Index for the 2023-24 fees and
then 3% thereafter to account for expected inflation. Table 4-3 provides the inspection fees for the
next five years.
Table 4-3. Inspection Fees for Single Connection
FY FY FY FY FY
Description 2023-24 1 2024-25 1 2025-26 1 2026-27 1 2027-28
Lateral installation to property line:
$950.00
$980.00
$1,010.00
$1,040.00
$1,070.00
Lateral installation to property line with optional
1,250.00
1,290.00
1,330.00
1,370.00
1,410.00
cleanout to existing manhole:
Core drilling into existing manhole base - add
1,630.00
1,680.00
1,730.00
1,780.00
1,835.00
Installation of new manhole over existing wastewater:
2,065.00
2,125.00
2,190.00
2,255.00
2,325.00
Gas Flap Installation - add:
510.00
525.00
540.00
555.00
570.00
4.5 Non -Compliance Sampling Fees
Non -Compliance Sampling Fees were calculated from estimates of time to conduct the sample
multiplied by the average hourly rate, plus a 30% overhead adjustment and lab fees when applicable.
Table 4-4 provides the sampling fees for the next 5 years.
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Miscellaneous Fees and Charges
Table 4-4. Non -Compliance Sampling Fees
Description
Ammonia Analysis as Nitrogen
$38.00
Biochemical Oxygen Demand (BOD)
57.00
BOD and Suspended Solids (SS) Analysis
114.00
Chemical Oxygen Demand
38.00
Conductivity
76.00
Cyanide (Amenable)
171.00
Cyanide (Total)
99.00
Total Radium Determination
207.00
Gross Alpha and Beta Determination
111.00
Tritium Determination
102.00
Strontium Determination
134.00
Uranium Determination
45.00
Oil & Grease (Hexane Soluble Matter)
95.00
Total Organic Nitrogen
76.00
pH
38.00
Fluoride
38.00
Suspended Solids (Total)
57.00
Suspended Solids (Total and Volatile)
171.00
Total Dissolved Solids
57.00
Mercury (EPA 245.1)
76.00
Heavy Metals
52.00
Pharmaceutical Industry (EPA 1666)
342.00
Chlorinated Pesticides and Aroclors (EPA 608)
128.00
Volatile Organics (EPA 624)
304.00
Semi -Volatile Organics (EPA 625)
683.00
Total Sulfides
83.00
P FAS
413.00
Dissolved Sulfides
58.00
$39.00
$40.00
$41.00
$43.00
59.00
60.00
62.00
64.00
117.00
121.00
124.00
128.00
39.00
40.00
41.00
43.00
78.00
81.00
83.00
85.00
176.00
181.00
187.00
192.00
102.00
105.00
108.00
111.00
213.00
219.00
226.00
232.00
114.00
117.00
121.00
124.00
105.00
108.00
112.00
115.00
138.00
142.00
146.00
150.00
46.00
48.00
49.00
50.00
98.00
101.00
104.00
107.00
78.00
81.00
83.00
85.00
39.00
40.00
41.00
43.00
39.00
40.00
41.00
43.00
59.00
60.00
62.00
64.00
176.00
181.00
187.00
192.00
59.00
60.00
62.00
64.00
78.00
81.00
83.00
86.00
54.00
56.00
58.00
60.00
352.00
363.00
374.00
385.00
132.00
136.00
140.00
144.00
313.00
322.00
332.00
342.00
704.00
725.00
747.00
769.00
87.00
89.00
92.00
95.00
431.00
444.00
457.00
471.00
60.00
62.00
64.00
66.00
hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377
(714)730-2300
35
FN Orange County Sanitation District
Miscellaneous Fees and Charges
Technical Appendix
hdrinc.com 3230 El Camino Real, Suite 200, Irvine, CA 92602-1377
(714) 730-2300
BI::
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement Summary
Revenue
Rate Revenue at Current Rates
Miscellaneous Revenue
Total Revenue
Expenditures
Management & Administrative Services
Environmental Services Department
Engineering Department
Operation & Maintenance Administration
Collection Facilities
Fleet Services
Plant 1&2 Operations & Maintenance
Total Expenditures
Rate Funded Capital
Estimated I Preliminary I Preliminaryl Projected
FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32
$327,459 $335,487 $336,448 $337,413 $338,380 $339,350 $340,324 $341,300 $342,279 $343,261 $344,246
140,135 149,963 149,207 138,033 142,720 146,594 150,934 157,241 161,582 166,317 168,820
$467,594 $485,449 $485,655 $475,446 $481,100 $485,945 $491,257 $498,541 $503,861 $509,578 $513,066
$40,592 $44,433 $45,648 $47,018 $48,428 $49,881 $51,377 $52,919 $54,506 $56,141 $57,826
19,064 22,665 23,842 24,557 25,293 26,052 26,834 27,639 28,468 29,322 30,202
6,381 8,889 9,040 9,311 9,590 9,878 10,175 10,480 10,794 11,118 11,452
270 667 703 724 746 769 792 815 840 865 891
18,173 19,048 18,638 19,197 19,773 20,367 20,978 21,607 22,255 22,923 23,610
2,011 2,085 2,150 2,214 2,281 2,349 2,420 2,492 2,567 2,644 2,723
96,087 103,358 109,871 113,167 116,562 120,059 123,660 127,370 131,191 135,127 139,181
$182,579 $201,145 $209,892 $216,189 $222,674 $229,354 $236,235 $243,322 $250,622 $258,140 $265,885
$186,115 $250,244 $296,775 $262,290 $280,905 $273,021 $274,888 $329,087 $323,690 $325,733 $260,463
Debt Service $67,846 $68,568 $68,611 $68,572 $68,626 $68,500 $72,653 $72,652 $72,650 $71,141 $74,731
Transfers $3,270 $7,190 $7,350 $3,850 $3,850 $3,850 $3,850 $3,850 $3,850 $3,850 $3,850
Total Revenue Requirement $439,811 $527,147 $582,628 $550,901 $576,055 $574,725 $587,626 $648,910 $650,812 $658,865 $604,929
Balance/Deficiency of Funds
$27,784
($41,697)
($96,972)
($75,455)
($94,955)
($88,780)
($96,368)
($150,370)
($146,951)
($149,287)
($91,863)
Rate Adj. as a % of Rate Rev
-8.5%
12.4%
28.8%
22.4%
28.1 %
26.2%
28.3%
44.1 %
42.9%
43.5%
26.7%
Proposed Rate Adjustment
0.00%
0.00%
3.50%
3.50%
3.50%
3.50%
3.50%
3.50%
3.50%
3.50%
3.50%
Rate Revenue After Adjustment
$327,459
$335,487
$348,224
$361,445
$375,168
$389,412
$404,198
$419,545
$435,474
$452,009
$469,172
Debt Service Coverage Ratio
Before Rate Adjustment
4.20
4.15
4.02
3.78
3.77
3.75
3.51
3.51
3.49
3.53
3.31
After Rate Adjustment
4.20
4.15
4.19
4.13
4.30
4.48
4.39
4.59
4.77
5.06
4.98
Residential Bill (1 EDU)
$343.00
$347.00
$359.15
$371.72
$384.73
$398.19
$412.13
$426.55
$441.48
$456.93
$472.93
$ Change Per Month
0.00
4.00
12.15
12.57
13.01
13.47
13.94
14.42
14.93
15.45
15.99
Cumulative $ Change per Month
0.00
4.00
16.15
28.72
41.73
55.19
69.13
83.55
98.48
113.93
129.93
10/29/2022 Draft OC San
1 of 57
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 1- Escalation Factors
Scenario 1
Page 1 of 1
Estimated Preliminary Projected Projected
FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Notes
Revenues
General Users
0.0%
0.1%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
Industrial
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
Wastehaulers
0.3%
-28.3%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
IRWD
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
SAWPA
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
Property Tax
2.0%
2.0%
2.1%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Misc. Revenue
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Flat
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Expenses
Salaries, Labor & Benefits
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Training & Meetings
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Chemicals
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Fuel
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Tools and Small Equipment
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Janitorial Supplies
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Janitorial
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Misc. Operating Supplies
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Property Tax Fees
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Solids Removal
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Other Waste Disposal
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Grounds Keeping
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Misc. Services
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Professional Services
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Research & Monitoring
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Repairs & Maintenance
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Telephone
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Diesel
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Natural Gas
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Power
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Water
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Other Operating Supplies
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Other Non -Operating Costs
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Miscellaneous Expense
Actual
9.3%
4.3%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Flat
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
One-time
-100.0%
-100.0%
-100.0%
-100.0%
-100.0%
-100.0%
-100.0%
-100.0%
-100.0%
-100.0%
-100.0%
0.0%
Investment Interest
1.5%
1.5%
1.5%
1.5%
1.5%
1.5%
1.5%
1.5%
1.5%
1.5%
New Long -Term Debt Assumptions
Certificate of Participation (COP)
Rate
4.5%
4.5%
4.5%
4.5%
4.5%
4.5%
4.5%
4.5%
4.5%
4.5%
Term
20
20
20
20
20
20
20
20
20
20
COP Issuance Costs
1.5%
1.5%
1.5%
1.5%
1.5%
1.5%
1.5%
1.5%
1.5%
1.5%
Low Interest Loan
Rate
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Term
10
10
10
10
10
10
10
10
10
10
10/29/2022 2 DOraft OC San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 2 - Sources & Application of Funds
Revenues
Rate Revenues
General Users
Permitted Users
Wastehaulers
Total Rate Revenues
Other Revenues
Property Taxes
IRWD O&M Assessment
IRWD Capital Assessment
IRWD Solids Assessment
IRWD
SAWPA
New COP Issues
Interest Revenues
Capital Facilities Capacity Charges
General User Rebates
Equity Sale to 7 or 14
Share of SFI Revenue
Share ofJO Revenue
CIP Reimbursements
Total Other Revenues
Page 1 of 17
Estimated Preliminary Preliminary Projected
CV 7n7l_77 N 7n77_72 CV 7M2_7d N 7n7d_7S CV 7n7S_7G N 7n7G_77 CV 7n77_7f N 7n7f_7G CV 7n7G_2n N 7n2n_2i CV 7n2i_21
$312,128,000 $320,534,310 $321,495,913 $322,460,401 $323,427,782 $324,398,065 $325,371,259 $326,347,373 $327,326,415 $328,308,395 $329,293,320 Exhibit 4
14,202,366 14,202,366 14,202,366 14,202,366 14,202,366 14,202,366 14,202,366 14,202,366 14,202,366 14,202,366 14,202,366 Exhibit 4
1,129,021 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 Exhibit 4
$327,459,387 $335,486,676 $336,448,278 $337,412,766 $338,380,147 $339,350,431 $340,323,625 $341,299,739 $342,278,781 $343,260,760 $344,245,685
Notes
$107,623,549 $109,776,020 $112,081,316 $115,443,756 $118,907,069 $122,474,281 $126,148,509 $129,932,964 $133,830,953 $137,845,882 $141,981,258 As Property Tax
0 0 0 0 0 0 0 0 0 0 0 As IRWD
0 0 0 0 0 0 0 0 0 0 0 As IRWD
0 0 0 0 0 0 0 0 0 0 0 As IRWD
8,444,816 14,502,872 16,358,057 15,147,000 15,965,000 15,855,000 16,093,000 18,177,000 18,170,000 18,429,000 16,324,000 Cash Flow File
3,080,817 3,018,000 3,138,000 3,232,000 3,329,000 3,429,000 3,532,000 3,638,000 3,747,000 3,859,000 3,974,000 Cash Flow File
0 0 0 0 0 0 0 0 0 0 0 As Flat
5,751,000 Interest Accumulated in Fund
Applied Directly to Capital
(12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) Exhibit
3,500,000 3,500,000 Cash Flow File
3,016,800 3,877,700 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 Cash Flow File
13,918,000 15,505,010 12,058,809 12,360,000 12,669,000 12,986,000 13,310,000 13,643,000 13,984,000 14,333,000 14,691,000 Cash Flow File
10.300.000 11,782,925 10.220.909 0 0 0 0 0 0 0 0 Cash Flow File
Total Revenues 1 $467,594,369 $485,449,203 $485,655,370 $475,445,522 $481,100,216 $485,944,711 $491,257,134 $498,540,703 $503,860,734 $509,577,642 $513,065,944
10/29/2022 3 DOrpft OC San
Orange County Sanitation District
Cost of Service Rate Study
Page 2 of 17
Revenue Requirement
Exhibit 2 - Sources & Application of Funds
Estimated
Preliminary
Preliminary
Projected
FY 2021-22
FY 2022-23
FY 2023-24
FY 2024-25
FY 2025-26
FY 2026-27
FY 2027-28
FY 2028-29
FY 2029-30
FY 2030-31
FY 2031-32
Notes
Expenses
Management & Administrative Services
Salaries, Waees,& Benefits
$25,176,434
$26,213,293
$27,626,025
$28,454,806
$29,308,450
$30,187,703
$31,093,335
$32,026,135
$32,986,919
$33,976,526
$34,995,822
As Salaries, Labor & Benefits
Materials. Supplies. & Services
Total Administrative Exp
1,688,297
$1,638,389
$1,655,648
$1,705,317
$1,756,477
$1,809,171
$1,863,446
$1,919,350
$1,976,930
$2,036,238
$2,097,325
As Miscellaneous Expense
Total Printing & Publication
287,630
767,382
343,837
354,152
364,777
375,720
386,992
398,601
410,559
422,876
435,562
As Misc. Services
Training & Meetings
Meetings - Total
11,250
73,671
79,517
81,903
84,360
86,890
89,497
92,182
94,947
97,796
100,730
As Training & Meetings
Training - Total
316,840
625,370
592,833
610,618
628,937
647,805
667,239
687,256
707,874
729,110
750,983
As Training & Meetings
$2,304,017
$3,104,812
$2,671,835
$2,751,990
$2,834,550
$2,919,586
$3,007,174
$3,097,389
$3,190,311
$3,286,020
$3,384,601
Total Training & Meetings
Operating Materials & Supplies
Chem. Coagulants - Total
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
As Chemicals
Odor Control - Total
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Disinfection -Total
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Chemicals - Cogen Op.
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Miscellaneous Chemicals
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Odor & Corrosion Control
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Gas, Diesel, & Oil -Total
970
1,500
2,000
2,060
2,122
2,185
2,251
2,319
2,388
2,460
2,534
As Fuel
Tools
2,890
96,800
94,800
97,644
100,573
103,591
106,698
109,899
113,196
116,592
120,090
As Tools and Small Equipment
Safety Equipment/Tools
412,430
211,932
211,934
218,292
224,841
231,586
238,534
245,690
253,060
260,652
268,472
As Tools and Small Equipment
Solv,Paint,JanitorSupplies
2,140
2,606
11,612
11,960
12,319
12,689
13,069
13,461
13,865
14,281
14,710
As Janitorial Supplies
Lab Chemicals & Supplies
80
75
75
77
80
82
84
87
90
92
95
As Chemicals
Misc. Operating Supplies
18,340
16,603
24,106
24,829
25,574
26,341
27,132
27,945
28,784
29,647
30,537
As Misc. Operating Supplies
Property Tax Fees
76,500
76,500
76,500
78,795
81,159
83,594
86,101
88,684
91,345
94,085
96,908
As Property Tax Fees
$513,350
$406,016
$421,027
$433,658
$446,668
$460,068
$473,870
$488,086
$502,728
$517,810
$533,344
Total Op Materials & Supplies
Contractual Services
Solids Removal
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
As Solids Removal
Other Waste Disposal
Grit & Screenings Disposal
0
0
0
0
0
0
0
0
0
0
0
As Other Waste Disposal
Other Residual Solids
0
0
0
0
0
0
0
0
0
0
0
As Other Waste Disposal
Other Waste Disposal
192,500
376,200
376,200
387,486
399,111
411,084
423,416
436,119
449,202
462,679
476,559
As Other Waste Disposal
Groundskeeping
177,040
200,000
200,000
206,000
212,180
218,545
225,102
231,855
238,810
245,975
253,354
As Grounds Keeping
Janitorial
650,000
659,488
679,273
699,651
720,641
742,260
764,528
787,464
811,087
835,420
860,483
As Janitorial
Outside Lab Services
500
2,000
2,000
2,060
2,122
2,185
2,251
2,319
2,388
2,460
2,534
As Misc. Services
Oxygen - O& M contract
0
0
0
0
0
0
0
0
0
0
0
As Misc. Operating Supplies
County Service Fee
503,672
518,782
534,345
550,375
566,887
583,893
601,410
619,452
638,036
657,177
676,892
As Miscellaneous Expense
Temporary Services
162,480
210,000
210,000
216,300
222,789
229,473
236,357
243,448
250,751
258,274
266,022
As Misc. Services
Security Services
1,716,007
1,716,007
1,716,007
1,767,487
1,820,512
1,875,127
1,931,381
1,989,322
2,049,002
2,110,472
2,173,786
As Misc. Services
In -Plant Line Cleaning
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Other
78,125
83,125
78,125
80,469
82,883
85,369
87,930
90,568
93,285
96,084
98,966
As Misc. Services
3,4324
80,
3,765,602
53,795,950
$3,909,829
$4,027,123
$4,147,937
$4,272,375
$4,400,546
$4,532,563
$4,668,540
$4,808,596
Total Contractual Services
10/29/2022 4 DOrafjL OC San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 2 - Sources & Application of Funds
Total Professional Services
Total Research & Monitoring
Total Repairs & Maintenance
Utilities
Telephone
Diesel For Generators
Natural Gas - Total
Power - Total
Water -Total
Total Utilities
Total Other Operat. Supplies
Total General Manager
Total Other Non -Operating
Total Matls, Supply, & Svc.
Oper Requirement Before Cost Allocation
Cost Allocation:
In/(Out) Svc Div to Line Div
In/(Out) OCSD Equip Rental
In/(Out) Lab Charges
(Out) to CIP for Salary
(Out) to CIP for OH
In/<Out> to RA for Salary
In/<Out> to RA for OH
In/<Out> to RA for Non -Sal
Cost Allocation - Total
Total Management & Administrative Services
Page 3 of 17
Estimated Preliminary Preliminary Projected
CV 7n71_77 CV 1.17_72 cv 7n72_7A cv 7n7A_7C uv 7n7C_7G cv in a-77 cv 7n77_74 ry in-7o uv 7n70_2n cv 7n2n_21 uv 7n21_27
Notes
2,757,615 3,983,925 3,600,700 3,708,721 3,819,983 3,934,582 4,052,620 4,174,198 4,299,424 4,428,407 4,561,259 As Professional Services
0 0 0 0 0 0 0 0 0 0 0 As Research & Monitoring
4,963,600 4,418,183 4,624,215 4,762,941 4,905,830 5,053,005 5,204,595 5,360,733 5,521,555 5,687,201 5,857,817 As Repairs & Maintenance
502,500 521,267 536,905 553,012 569,603 586,691 604,291 622,420 641,093 660,325 680,135 As Telephone
0 0 0 0 0 0 0 0 0 0 0 As Fuel
161,580 130,000 140,000 144,200 148,526 152,982 157,571 162,298 167,167 172,182 177,348 As Natural Gas
790,000 725,000 755,000 777,650 800,980 825,009 849,759 875,252 901,509 928,555 956,411 As Power
9,930 0 0 0 0 0 0 0 0 0 0 As Water
1,464,010 1,376,267 1,431,905 1,474,862 1,519,108 1,564,681 1,611,622 1,659,970 1,709,769 1,761,063 1,813,894
2,454,140 2,854,714 3,112,978 3,206,367 3,302,558 3,401,635 3,503,684 3,608,795 3,717,059 3,828,570 3,943,427 As Misc. Operating Supplies
0 1,469,747 1,523,397 1,569,099 1,616,172 1,664,657 1,714,597 1,766,035 1,819,016 1,873,586 1,929,794 As Miscellaneous Expense
65,030 121,670 121,670 125,320 129,080 132,952 136,941 141,049 145,280 149,639 154,128 As Other Non -Operating Costs
$18,002,086 $21,500,936 $21,303,677 $21,942,787 $22,601,071 $23,279,103 $23,977,476 $24,696,800 $25,437,704 $26,200,836 $26,986,861
$43,178,520 $47,714,229 $48,929,702 $50,397,593 $51,909,521 $53,466,806 $55,070,811 $56,722,935 $58,424,623 $60,177,362 $61,982,683
(2,604,700) (3,299,900) (3,299,900) (3,398,897) (3,500,864) (3,605,890) (3,714,067) (3,825,489) (3,940,253) (4,058,461) (4,180,215) As Miscellaneous Expense
18,420 18,370 18,370 18,921 19,489 20,073 20,676 21,296 21,935 22,593 23,271 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
( 2,586,280) (3,281,530) (3,281,530) (3,379,976) (3,481,375) (3,585,816) (3,693,391) (3,804,193) (3,918,318) (4,035,868) (4,156,944)
$40,592,240 $44,432,699 $45,648,172 $47,017,617 $48,428,146 $49,880,990 $51,377,420 $52,918,742 $54,506,305 $56,141,494 $57,825,739
10/29/2022 5 DOrafjL OC San
Orange County Sanitation District
Cost of Service Rate Study
Page 4 cf 17
Revenue Requirement
Exhibit 2 - Sources & Application of Funds
Estimated
Preliminary
Preliminary
Projected
FY 2021-22
FY 2022-23
FY 2023-24
FY 2024-25
FY 2025-26
FY 2026-27
FY 2027-28
FY 2028-29
FY 2029-30
FY 2030-31
FY 2031-32
Notes
Environmental Services Department
Salaries, Wages,& Benefits
$14,694,900
$16,016,900
$16,904,000
$17,411,120
$17,933,454
$18,471,457
$19,025,601
$19,596,369
$20,184,260
$20,789,788
$21,413,481
As Salaries, Labor & Benefits
Materials, Supplies, & Services
Total Administrative Exp
$133,360
$139,750
$136,300
$140,389
$144,601
$148,939
$153,407
$158,009
$162,749
$167,632
$172,661
As Miscellaneous Expense
Total Printing & Publication
12,580
11,500
14,000
14,420
14,853
15,298
15,757
16,230
16,717
17,218
17,735
As Misc. Services
Training & Meetings
0
0
0
Meetings- Total
4,450
31,815
31,815
32,769
33,753
34,765
35,808
36,882
37,989
39,128
40,302
As Training & Meetings
Training - Total
11,035
121,030
135,840
139,915
144,113
148,436
152,889
157,476
162,200
167,066
172,078
As Training & Meetings
Total Training & Meetings
$161,425
$304,095
$317,955
$327,494
$337,318
$347,438
$357,861
$368,597
$379,655
$391,045
$402,776
Operating Materials & Supplies
Chem. Coagulants - Total
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
As Chemicals
Odor Control - Total
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Disinfection -Total
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Chemicals - CogenOp.
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Miscellaneous Chemicals
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Odor & Corrosion Control
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Gas, Diesel, & Oil - Total
14,960
22,000
24,000
24,720
25,462
26,225
27,012
27,823
28,657
29,517
30,402
As Fuel
Tools
24,200
151,700
126,700
130,501
134,416
138,449
142,602
146,880
151,286
155,825
160,500
As Tools and Small Equipment
Safety Equipment/Tools
57,800
85,800
70,800
72,924
75,112
77,365
79,686
82,077
84,539
87,075
89,687
As Tools and Small Equipment
Solv,Paint,JanitorSupplies
17,250
17,500
17,500
18,025
18,566
19,123
19,696
20,287
20,896
21,523
22,168
As Janitorial Supplies
Lab Chemicals & Supplies
619,560
655,000
667,500
687,525
708,151
729,395
751,277
773,815
797,030
820,941
845,569
As Chemicals
Misc. Operating Supplies
6,160
7,160
7,160
7,375
7,596
7,824
8,059
8,300
8,549
8,806
9,070
As Misc. Operating Supplies
Property Tax Fees
0
0
0
0
0
0
0
0
0
0
0
As Property Tax Fees
$739,930
$939,160
$913,660
$941,070
$969,302
$998,381
$1,028,332
$1,059,182
$1,090,958
$1,123,687
$1,157,397
Total Op Materials & Supplies
Contractual Services
Solids Removal
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
As Solids Removal
Other Waste Disposal
0
0
0
Grit & Screenings Disposal
0
0
0
0
0
0
0
0
0
0
0
As Other Waste Disposal
Other Residual Solids
0
0
0
0
0
0
0
0
0
0
0
As Other Waste Disposal
Other Waste Disposal
0
0
0
0
0
0
0
0
0
0
0
As Other Waste Disposal
Groundskeeping
0
0
0
0
0
0
0
0
0
0
0
As Grounds Keeping
Janitorial
0
0
0
0
0
0
0
0
0
0
0
As Janitorial
Outside Lab Services
201,000
325,000
325,000
334,750
344,793
355,136
365,790
376,764
388,067
399,709
411,700
As Misc. Services
Oxygen - O& M contract
0
0
0
0
0
0
0
0
0
0
0
As Misc. Operating Supplies
County Service Fee
0
0
0
0
0
0
0
0
0
0
0
As Miscellaneous Expense
Temporary services
185,000
286,400
286,400
294,992
303,842
312,957
322,346
332,016
341,977
352,236
362,803
As Misc. Services
Security Services
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
In -Plant Line Cleaning
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Other
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Total Contractual Services
$386,000
$611,400
5611,400
$629,742
$648,634
$668,093
$688,136
$708,780
$730,044
$751,945
$774,503
10/29/2022 6 DOraft7 OC San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 2 - Sources & Application of Funds
Total Professional Services
Total Research & Monitoring
Total Repairs & Maintenance
Utilities
Telephone
Diesel For Generators
Natural Gas - Total
Power - Total
Water -Total
Total Utilities
Total Other Operat. Supplies
Total General Manager
Total Other Non -Operating
Total Matls, Supply, & Svc.
Oper Requirement Before Cost Allocation
Cost Allocation:
In/(Out) Svc Div to Line Div
In/(Out) OCSD Equip Rental
In/(Out) Lab Charges
(Out) to CIP for Salary
(Out) to CIP for OH
In/<Out> to RA for Salary
In/<Out> to RA for OH
In/<Out> to RA for Non -Sal
Cost Allocation - Total
Total Environmental Services Department
Page 5 of 17
Estimated Preliminary Preliminary Projected
CV 7n71_77 CV 1.17_72 uv 7n72_7A ry 7n7A_7C uv 7n7C_7G cv in aG cv 7n77_7Y cv in14_70 N 7n70_2n cv 7n2n_21 N 7n21_27
Notes
336,795 1,271,221 1,397,000 1,438,910 1,482,077 1,526,540 1,572,336 1,619,506 1,668,091 1,718,134 1,769,678 As Professional Services
1,087,170 1,675,450 1,751,363 1,803,904 1,858,021 1,913,762 1,971,174 2,030,310 2,091,219 2,153,956 2,218,574 As Research & Monitoring
366,480 432,000 432,000 444,960 458,309 472,058 486,220 500,806 515,831 531,306 547,245 As Repairs & Maintenance
0 0 0 0 0 0 0 0 0 0 0 As Telephone
0 0 0 0 0 0 0 0 0 0 0 As Fuel
0 0 0 0 0 0 0 0 0 0 0 As Natural Gas
0 0 0 0 0 0 0 0 0 0 0 As Power
0 0 0 0 0 0 0 0 0 0 0 As Water
0 0 0 0 0 0 0 0 0 0 0
1,296,457 1,427,200 1,529,000 1,574,870 1,622,116 1,670,780 1,720,903 1,772,530 1,825,706 1,880,477 1,936,891 As Misc. Operating Supplies
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
1,880 2,140 2,140 2,204 2,270 2,338 2,409 2,481 2,555 2,632 2,711 As Other Non -Operating Costs
$4,376,137 $6,662,666 $6,954,518 $7,163,154 $7,378,048 $7,599,390 $7,827,371 $8,062,192 $8,304,058 $8,553,180 $8,809,775
$19,071,037 $22,679,566 $23,858,518 $24,574,274 $25,311,502 $26,070,847 $26,852,972 $27,658,561 $28,488,318 $29,342,968 $30,223,257
(2,800) (6,400) (6,400) (6,592) (6,790) (6,993) (7,203) (7,419) (7,642) (7,871) (8,107) As Miscellaneous Expense
43,750 43,750 43,750 45,063 46,414 47,807 49,241 50,718 52,240 53,807 55,421 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
(21,400) (23,200) (24,200) (24,926) (25,674) (26,444) (27,237) (28,054) (28,896) (29,763) (30,656) As Miscellaneous Expense
(26,400) (28,900) (30,140) (31,044) (31,976) (32,935) (33,923) (34,941) (35,989) (37,068) (38,180) As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
( 6,850) (14,750) (16,990) (17,500) (18,025) (18,565) (19,122) (19,696) (20,287) (20,896) (21,522)
$19,064,187 $22,664,816 $23,841,528 $24,556,774 $25,293,477 $26,052,281 $26,833,850 $27,638,865 $28,468,031 $29,322,072 $30,201,734
10/29/2022 7 DOrafjL OC San
Orange County Sanitation District
Cost of Service Rate Study
Page 6 of 17
Revenue Requirement
Exhibit 2 - Sources & Application of Funds
Estimated
Preliminary
Preliminary
Projected
FY 2021-22
FY 2022-23
FY 2023-24
FY 2024-25
FY 2025-26
FY 2026-27
FY 2027-28
FY 2028-29
FY 2029-30
FY 2030-31
FY 2031-32
Notes
Engineering Department
Salaries, Wages,& Benefits
$22,127,000
$24,241,135
$25,276,435
$26,034,728
$26,815,770
$27,620,243
$28,448,850
$29,302,316
$30,181,385
$31,086,827
$32,019,432
As Salaries, Labor & Benefits
Materials, Supplies, & Services
Total Administrative Exp
$172,091
$185,830
$189,540
$195,226
$201,083
$207,115
$213,329
$219,729
$226,321
$233,110
$240,104
As Miscellaneous Expense
Total Printing & Publication
8,700
3,300
3,150
3,245
3,342
3,442
3,545
3,652
3,761
3,874
3,990
As Misc. Services
Training & Meetings
Meetings - Total
916
9,380
6,870
7,076
7,288
7,507
7,732
7,964
8,203
8,449
8,703
As Training & Meetings
Training - Total
29,200
111,430
80,660
83,080
85,572
88,139
90,784
93,507
96,312
99,202
102,178
As Training & Meetings
Total Training & Meetings
$210,907
$309,940
$280,220
$288,627
$297,285
$306,204
$315,390
$324,852
$334,597
$344,635
$354,974
Operating Materials & Supplies
Chem. Coagulants - Total
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
As Chemicals
Odor Control - Total
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Disinfection -Total
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Chemicals - CogenOp.
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Miscellaneous Chemicals
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Odor & Corrosion Control
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Gas, Diesel, & Oil -Total
2,380
2,500
2,500
2,575
2,652
2,732
2,814
2,898
2,985
3,075
3,167
As Fuel
Tools
4,200
4,000
4,000
4,120
4,244
4,371
4,502
4,637
4,776
4,919
5,067
As Tools and Small Equipment
Safety Equipment/Tools
13,120
12,600
11,600
11,948
12,306
12,676
13,056
13,448
13,851
14,267
14,695
As Tools and Small Equipment
Solv,Paint,JanitorSupplies
950
1,300
1,400
1,442
1,485
1,530
1,576
1,623
1,672
1,722
1,773
As Janitorial Supplies
Lab Chemicals & Supplies
20
20
20
21
21
22
23
23
24
25
25
As Chemicals
Misc. Operating Supplies
500
900
950
979
1,008
1,038
1,069
1,101
1,134
1,168
1,203
As Misc. Operating Supplies
Property Tax Fees
0
0
0
0
0
0
0
0
0
0
0
As Property Tax Fees
$21,170
$21,320
$20,470
$21,084
$21,717
$22,368
$23,039
$23,730
$24,442
$25,176
$25,931
Total Op Materials & Supplies
Contractual Services
Solids Removal
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
As Solids Removal
Other Waste Disposal
Grit & Screenings Disposal
0
0
0
0
0
0
0
0
0
0
0
As Other Waste Disposal
Other Residual Solids
0
0
0
0
0
0
0
0
0
0
0
As Other Waste Disposal
Other Waste Disposal
0
0
0
0
0
0
0
0
0
0
0
As Other Waste Disposal
Groundskeeping
0
0
0
0
0
0
0
0
0
0
0
As Grounds Keeping
Janitorial
0
0
0
0
0
0
0
0
0
0
0
As Janitorial
Outside Lab Services
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Oxygen - O& M contract
0
0
0
0
0
0
0
0
0
0
0
As Misc. Operating Supplies
County Service Fee
0
0
0
0
0
0
0
0
0
0
0
As Miscellaneous Expense
Temporary Services
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Security Services
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
In -Plant Line Cleaning
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Other
400,002
600,000
600,000
618,000
636,540
655,636
675,305
695,564
716,431
737,924
760,062
As Misc. Services
400,000
600,000
5600,000
$618,000
$636,540
$655,636
$675,305
$695,564
$716,431
$737,924
$760,062
Total Contractual Services
10/29/2022 8
DOraft7 OC San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 2 - Sources & Application of Funds
Total Professional Services
Total Research & Monitoring
Total Repairs & Maintenance
Utilities
Telephone
Diesel For Generators
Natural Gas - Total
Power - Total
Water -Total
Total Utilities
Total Other Operat. Supplies
Total General Manager
Total Other Non -Operating
Total Matls, Supply, & Svc.
Oper Requirement Before Cost Allocation
Cost Allocation:
In/(Out) Svc Div to Line Div
In/(Out) OCSD Equip Rental
In/(Out) Lab Charges
(Out) to CIP for Salary
(Out) to CIP for OH
In/<Out> to RA for Salary
In/<Out> to RA for OH
In/<Out> to RA for Non -Sal
Cost Allocation - Total
Total Engineering Department
Page 7 cf 17
Estimated Preliminary Preliminary Projected
cv v I I- cv -2- cv n_x cv . cv I-- cv ,, cv cv Imo_an cv n cv inai
Notes
660,550 804,000 810,000 834,300 859,329 885,109 911,662 939,012 967,182 996,198 1,026,084 As Professional Services
0 0 0 0 0 0 0 0 0 0 0 As Research & Monitoring
300 1,400 1,400 1,442 1,485 1,530 1,576 1,623 1,672 1,722 1,773 As Repairs & Maintenance
0 0 0 0 0 0 0 0 0 0 0 As Telephone
0 0 0 0 0 0 0 0 0 0 0 As Fuel
0 0 0 0 0 0 0 0 0 0 0 As Natural Gas
0 0 0 0 0 0 0 0 0 0 0 As Power
0 0 0 0 0 0 0 0 0 0 0 As Water
$0 0 0 0 0 0 0 0 0 0 0
41,330 3,450 3,450 3,554 3,660 3,770 3,883 3,999 4,119 4,243 4,370 As Misc. Operating Supplies
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
1,500 1,880 1,900 1,957 2,016 2,076 2,138 2,203 2,269 2,337 2,407 As Other Non -Operating Costs
$1,335,757 $1,741,990 $1,717,440 $1,768,963 $1,822,032 $1,876,693 $1,932,994 $1,990,984 $2,050,713 $2,112,235 $2,175,602
$23,462,757 $25,983,125 $26,993,875 $27,803,691 $28,637,802 $29,496,936 $30,381,844 $31,293,299 $32,232,098 $33,199,061 $34,195,033
2,653,800 3,253,500 3,253,500 3,351,105 3,451,638 3,555,187 3,661,843 3,771,698 3,884,849 4,001,395 4,121,436 As Miscellaneous Expense
41,780 41,780 41,780 43,033 44,324 45,654 47,024 48,434 49,888 51,384 52,926 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
(6,790,390) (7,422,300) (7,735,100) (7,967,153) (8,206,168) (8,452,353) (8,705,923) (8,967,101) (9,236,114) (9,513,197) (9,798,593) As Miscellaneous Expense
(12,986,930) (12,967,050) (13,514,110) (13,919,533) (14,337,119) (14,767,233) (15,210,250) (15,666,557) (16,136,554) (16,620,651) (17,119,270) As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
($17,081,740) ($17,094,070) ($17,953,930) ($18,492,548) ($19,047,324) ($19,618,744) ($20,207,306) ($20,813,526) ($21,437,931) ($22,081,069) ($22,743,501)
$6,381,017 $8,889,055 $9,039,945 $9,311,143 $9,590,478 $9,878,192 $10,174,538 $10,479,774 $10,794,167 $11,117,992 $11,451,532
10/29/2022 9 DOraft7 OC San
Orange County Sanitation District
Cost of Service Rate Study
Page 8 cf 17
Revenue Requirement
Exhibit 2 - Sources & Application of Funds
Estimated
Preliminary
Preliminary
Projected
FY 2021-22
FY 2022-23
FY 2023-24
FY 2024-25
FY 2025-26
FY 2026-27
FY 2027-28
FY 2028-29
FY 2029-30
FY 2030-31
FY 2031-32
Notes
Operations & Maintenance Administration
Salaries, Wages,& Benefits
$279,500
$586,900
$619,400
$637,982
$657,121
$676,835
$697,140
$718,054
$739,596
$761,784
$784,637
As Salaries, Labor & Benefits
Materials, Supplies, & Services
Total Administrative Exp
$0
$1,530
$1,530
$1,576
$1,623
$1,672
$1,722
$1,774
$1,827
$1,882
$1,938
As Miscellaneous Expense
Total Printing & Publication
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Training & Meetings
Meetings - Total
0
1,000
1,000
1,030
1,061
1,093
1,126
1,159
1,194
1,230
1,267
As Training & Meetings
Training - Total
0
0
0
0
0
0
0
0
0
0
0
As Training & Meetings
Total Training & Meetings
$0
$2,530
$2,530
$2,606
$2,684
$2,765
$2,848
$2,933
$3,021
$3,112
$3,205
Operating Materials & Supplies
Chem. Coagulants - Total
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
As Chemicals
Odor Control - Total
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Disinfection -Total
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Chemicals - CogenOp.
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Miscellaneous Chemicals
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Odor & Corrosion Control
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Gas, Diesel, & Oil - Total
0
0
0
0
0
0
0
0
0
0
0
As Fuel
Tools
0
0
0
0
0
0
0
0
0
0
0
As Tools and Small Equipment
Safety Equipment/Tools
0
0
0
0
0
0
0
0
0
0
0
As Tools and Small Equipment
Solv,Paint,JanitorSupplies
0
0
0
0
0
0
0
0
0
0
0
As Janitorial Supplies
Lab Chemicals & Supplies
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Misc. Operating Supplies
0
0
0
0
0
0
0
0
0
0
0
As Misc. Operating Supplies
Property Tax Fees
0
0
0
0
0
0
0
0
0
0
0
As Property Tax Fees
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Op Materials & Supplies
Contractual Services
Solids Removal
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
As Solids Removal
Other Waste Disposal
Grit & Screenings Disposal
0
0
0
0
0
0
0
0
0
0
0
As Other Waste Disposal
Other Residual Solids
0
0
0
0
0
0
0
0
0
0
0
As Other Waste Disposal
Other Waste Disposal
0
0
0
0
0
0
0
0
0
0
0
As Other Waste Disposal
Groundskeeping
0
0
0
0
0
0
0
0
0
0
0
As Grounds Keeping
Janitorial
0
0
0
0
0
0
0
0
0
0
0
As Janitorial
Outside Lab Services
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Oxygen - O& M contract
0
0
0
0
0
0
0
0
0
0
0
As Misc. Operating Supplies
County Service Fee
0
0
0
0
0
0
0
0
0
0
0
As Miscellaneous Expense
Temporary Services
0
78,000
82,000
84,460
86,994
89,604
92,292
95,060
97,912
100,850
103,875
As Misc. Services
Security Services
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
In -Plant Line Cleaning
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Other
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Total Contractual Services
$0
$78,000
$82,000
$84,460
$86,994
$89,604
$92,292
$95,060
$97,912
$100,850
$103,875
10/29/2022 1 ODrOaft57 OC San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 2 - Sources & Application of Funds
Total Professional Services
Total Research & Monitoring
Total Repairs & Maintenance
Utilities
Telephone
Diesel For Generators
Natural Gas - Total
Power - Total
Water -Total
Total Utilities
Total Other Operat. Supplies
Total General Manager
Total Other Non -Operating
Total Matls, Supply, & Svc.
Oper Requirement Before Cost Allocation
Cost Allocation:
In/(Out) Svc Div to Line Div
In/(Out) OCSD Equip Rental
In/(Out) Lab Charges
(Out) to CIP for Salary
(Out) to CIP for OH
In/<Out> to RA for Salary
In/<Out> to RA for OH
In/<Out> to RA for Non -Sal
Cost Allocation - Total
Total Operations & Maintenance Administration
Page 9 cf 17
Estimated Preliminary Preliminary Projected
cv I I- cv -2- cv n_x cv . cv I-- cv ,, cv v Imo_an cv n cv inai
Notes
1,000
5,000
5,000
5,150
5,305
5,464
5,628
5,796
5,970
6,149
6,334
As Professional Services
0
0
0
0
0
0
0
0
0
0
0
As Research & Monitoring
0
0
0
0
0
0
0
0
0
0
0
As Repairs & Maintenance
0
0
0
0
0
0
0
0
0
0
0
As Telephone
0
0
0
0
0
0
0
0
0
0
0
As Fuel
0
0
0
0
0
0
0
0
0
0
0
As Natural Gas
0
0
0
0
0
0
0
0
0
0
0
As Power
0
0
0
0
0
0
0
0
0
0
0
As Water
$0
0
0
0
0
0
0
0
0
0
0
90
100
100
103
106
109
113
116
119
123
127
As Misc. Operating Supplies
0
0
0
0
0
0
0
0
0
0
0
As Miscellaneous Expense
0
40
40
41
42
44
45
46
48
49
51
As Other Non -Operating Costs
$0
$0
$0
$92,360
$95,131
$97,985
$100,924
$103,952
$107,071
$110,283
$113,591
$0
$0
$0
$730,342
$752,252
$774,820
$798,065
$822,006
$846,667
$872,067
$898,229
(10,300)
(5,700)
(5,700)
(5,871)
(6,047)
(6,229)
(6,415)
(6,608)
(6,806)
(7,010)
(7,221)
As Miscellaneous Expense
0
0
0
0
0
0
0
0
0
0
0
As Miscellaneous Expense
0
0
0
0
0
0
0
0
0
0
0
As Miscellaneous Expense
0
0
0
0
0
0
0
0
0
0
0
As Miscellaneous Expense
0
0
0
0
0
0
0
0
0
0
0
As Miscellaneous Expense
0
0
0
0
0
0
0
0
0
0
0
As Miscellaneous Expense
0
0
0
0
0
0
0
0
0
0
0
As Miscellaneous Expense
0
0
0
0
0
0
0
0
0
0
0
As Miscellaneous Expense
($10,300)
($5,700)
($5,700)
($5,871)
($6,047)
($6,229)
($6,415)
($6,608)
($6,806)
($7,010)
($7,221)
$270,290
$666,870
$703,370
$724,471
$746,205
$768,591
$791,649
$815,399
$839,861
$865,056
$891,008
10/29/2022 1Drajt57 OC San
Orange County Sanitation District
Cost of Service Rate Study
Page 10 cf 17
Revenue Requirement
Exhibit 2 - Sources & Application of Funds
Estimated
Preliminary
Preliminary
Projected
FY 2021-22
FY 2022-23
FY 2023-24
FY 2024-25
FY 2025-26
FY 2026-27
FY 2027-28
FY 2028-29
FY 2029-30
FY 2030-31
FY 2031-32
Notes
Collection Facilities
Salaries, Wages,& Benefits
$4,406,800
$4,616,300
$4,833,800
$4,978,814
$5,128,178
$5,282,024
$5,440,484
$5,603,699
$5,771,810
$5,944,964
$6,123,313
As Salaries, Labor & Benefits
Materials, Supplies, & Services
Total Administrative Exp
$58,929
$14,290
$14,730
$15,172
$15,627
$16,096
$16,579
$17,076
$17,588
$18,116
$18,660
As Miscellaneous Expense
Total Printing & Publication
1,250
1,300
1,300
1,339
1,379
1,421
1,463
1,507
1,552
1,599
1,647
As Misc. Services
Training & Meetings
Meetings - Total
1,000
5,660
5,660
5,830
6,005
6,185
6,370
6,561
6,758
6,961
7,170
As Training & Meetings
Training - Total
10,000
34,870
28,070
28,912
29,779
30,673
31,593
32,541
33,517
34,523
35,558
As Training & Meetings
Total Training & Meetings
$71,179
$56,120
$49,760
$51,253
$52,790
$54,374
$56,005
$57,685
$59,416
$61,199
$63,034
Operating Materials & Supplies
Chem. Coagulants - Total
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
As Chemicals
Odor Control - Total
5,807,789
7,025,286
8,229,078
8,475,950
8,730,229
8,992,136
9,261,900
9,539,757
9,825,949
10,120,728
10,424,350
As Chemicals
Disinfection -Total
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Chemicals - CogenOp.
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Miscellaneous Chemicals
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Odor & Corrosion Control
20,000
50,000
50,000
51,500
53,045
54,636
56,275
57,964
59,703
61,494
63,339
As Chemicals
Gas, Diesel, & Oil - Total
18,960
26,500
36,500
37,595
38,723
39,885
41,081
42,314
43,583
44,890
46,237
As Fuel
Tools
63,000
90,000
90,000
92,700
95,481
98,345
101,296
104,335
107,465
110,689
114,009
As Tools and Small Equipment
Safety Equipment/Tools
44,690
95,000
66,880
68,886
70,953
73,082
75,274
77,532
79,858
82,254
84,722
As Tools and Small Equipment
Solv,Paint,JanitorSupplies
18,216
18,580
18,952
19,521
20,106
20,709
21,331
21,971
22,630
23,309
24,008
As Janitorial Supplies
Lab Chemicals & Supplies
416
424
432
445
458
472
486
501
516
531
547
As Chemicals
Misc. Operating Supplies
10,000
13,000
14,000
14,420
14,853
15,298
15,757
16,230
16,717
17,218
17,735
As Misc. Operating Supplies
Property Tax Fees
0
0
0
0
0
0
0
0
0
0
0
As Property Tax Fees
$5,983,071
$7,318,790
$8,505,842
$8,761,017
$9,023,848
$9,294,563
$9,573,400
$9,860,602
$10,156,420
$10,461,113
$10,774,946
Total Op Materials & Supplies
Contractual Services
Solids Removal
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
As Solids Removal
Other Waste Disposal
Grit & Screenings Disposal
0
0
0
0
0
0
0
0
0
0
0
As Other Waste Disposal
Other Residual Solids
0
0
0
0
0
0
0
0
0
0
0
As Other Waste Disposal
Other Waste Disposal
0
0
0
0
0
0
0
0
0
0
0
As Other Waste Disposal
Groundskeeping
0
0
0
0
0
0
0
0
0
0
0
As Grounds Keeping
Janitorial
0
0
0
0
0
0
0
0
0
0
0
As Janitorial
Outside Lab Services
15,000
20,000
15,000
15,450
15,914
16,391
16,883
17,389
17,911
18,448
19,002
As Misc. Services
Oxygen - O& M contract
0
0
0
0
0
0
0
0
0
0
0
As Misc. Operating Supplies
County Service Fee
0
0
0
0
0
0
0
0
0
0
0
As Miscellaneous Expense
Temporary Services
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Security Services
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
In -Plant Line Cleaning
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Other
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Total Contractual Services
$15,000
$20,000
$15,000
$15,450
$15,914
$16,391
$16,883
$17,389
$17,911
$18,448
$19,002
10/29/2022 1-2Drraft57 OC San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 2 - Sources & Application of Funds
Total Professional Services
Total Research & Monitoring
Total Repairs & Maintenance
Utilities
Telephone
Diesel For Generators
Natural Gas - Total
Power - Total
Water -Total
Total Utilities
Total Other Operat. Supplies
Total General Manager
Total Other Non -Operating
Total Matls, Supply, & Svc.
Oper Requirement Before Cost Allocation
Cost Allocation:
In/(Out) Svc Div to Line Div
In/(Out) OCSD Equip Rental
In/(Out) Lab Charges
(Out) to CIP for Salary
(Out) to CIP for OH
In/<Out> to RA for Salary
In/<Out> to RA for OH
In/<Out> to RA for Non -Sal
Cost Allocation - Total
Total Collection Facilities
Page 11 of 17
Estimated Preliminary Preliminary Projected
CV 7n71_77 CV 1.17_72 uv 7n72_7A ry 7n7A_7C Cv 7n7C_7c ry 7n-77 cv 7n77_7o cv in14_70 uv 7n70_2n cv 7n2n_21 uv 7n21_27
Notes
181,560 165,000 110,000 113,300 116,699 120,200 123,806 127,520 131,346 135,286 139,345 As Professional Services
0 0 0 0 0 0 0 0 0 0 0 As Research & Monitoring
6,575,792 5,922,271 4,161,460 4,286,304 4,414,893 4,547,340 4,683,760 4,824,273 4,969,001 5,118,071 5,271,613 As Repairs & Maintenance
0 0 0 0 0 0 0 0 0 0 0 As Telephone
0 0 0 0 0 0 0 0 0 0 0 As Fuel
0 0 0 0 0 0 0 0 0 0 0 As Natural Gas
695,140 709,042 723,223 744,920 767,267 790,285 813,994 838,414 863,566 889,473 916,157 As Power
23,490 23,959 24,438 25,171 25,926 26,704 27,505 28,330 29,180 30,056 30,957 As Water
718,630 733,001 747,661 770,091 793,194 816,989 841,499 866,744 892,746 919,529 947,115
66,360 66,360 68,076 70,118 72,222 74,388 76,620 78,919 81,286 83,725 86,237 As Misc. Operating Supplies
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
370 600 600 618 637 656 675 696 716 738 760 As Other Non -Operating Costs
$13,611,962 $14,282,142 $13,658,399 $14,068,151 $14,490,195 $14,924,901 $15,372,648 $15,833,828 $16,308,843 $16,798,108 $17,302,051
$18,018,762 $18,898,442 $18,492,199 $19,046,965 $19,618,374 $20,206,925 $20,813,133 $21,437,527 $22,080,653 $22,743,072 $23,425,364
(17,400) (21,500) (21,500) (22,145) (22,809) (23,494) (24,198) (24,924) (25,672) (26,442) (27,236) As Miscellaneous Expense
222,740 222,740 222,740 229,422 236,305 243,394 250,696 258,217 265,963 273,942 282,160 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
(19,780) (21,300) (22,900) (23,587) (24,295) (25,023) (25,774) (26,547) (27,344) (28,164) (29,009) As Miscellaneous Expense
(31,230) (29,980) (32,230) (33,197) (34,193) (35,219) (36,275) (37,363) (38,484) (39,639) (40,828) As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
154,330 $149,960 $146,110 $150,493 $155,008 $159,658 $164,448 $169,382 $174,463 $179,697 $185,088
$18,173,092 $19,048,402 $18,638,309 $19,197,458 $19,773,382 $20,366,583 $20,977,581 $21,606,908 $22,255,116 $22,922,769 $23,610,452
10/29/2022 13Do�57 Oc San
Orange County Sanitation District
Cost of Service Rate Study
Page 12 of 17
Revenue Requirement
Exhibit 2 - Sources & Application of Funds
Estimated
Preliminary
Preliminary
Projected
FY 2021-22
FY 2022-23
FY 2023-24
FY 2024-25
FY 2025-26
FY 2026-27
FY 2027-28
FY 2028-29
FY 2029-30
FY 2030-31
FY 2031-32
Notes
Fleet Services
Salaries, Wages,& Benefits
$1,271,300
$1,246,600
$1,311,300
$1,350,639
$1,391,158
$1,432,893
$1,475,880
$1,520,156
$1,565,761
$1,612,734
$1,661,116
As Salaries, Labor & Benefits
Materials, Supplies, & Services
Total Administrative Exp
$3,200
$4,630
$4,710
$4,851
$4,997
$5,147
$5,301
$5,460
$5,624
$5,793
$5,966
As Miscellaneous Expense
Total Printing & Publication
150
150
150
155
159
164
169
174
179
184
190
As Misc. Services
Training & Meetings
Meetings- Total
0
500
500
515
530
546
563
580
597
615
633
As Training & Meetings
Training - Total
0
22,150
6,700
6,901
7,108
7,321
7,541
7,767
8,000
8,240
8,487
As Training & Meetings
Total Training & Meetings
$3,350
$27,430
$12,060
$12,422
$12,794
$13,178
$13,574
$13,981
$14,400
$14,832
$15,277
Operating Materials & Supplies
Chem. Coagulants - Total
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
As Chemicals
Odor Control - Total
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Disinfection -Total
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Chemicals - CogenOp.
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Miscellaneous Chemicals
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Odor & Corrosion Control
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Gas, Diesel, & Oil - Total
408,500
346,485
355,110
365,763
376,736
388,038
399,679
411,670
424,020
436,741
449,843
As Fuel
Tools
60,000
69,000
71,000
73,130
75,324
77,584
79,911
82,308
84,778
87,321
89,941
As Tools and Small Equipment
Safety Equipment/Tools
6,000
6,000
6,000
6,180
6,365
6,556
6,753
6,956
7,164
7,379
7,601
As Tools and Small Equipment
Solv,Paint,JanitorSupplies
1,470
1,500
1,500
1,545
1,591
1,639
1,688
1,739
1,791
1,845
1,900
As Janitorial Supplies
Lab Chemicals & Supplies
30
50
50
52
53
55
56
58
60
61
63
As Chemicals
Misc. Operating Supplies
450
500
500
515
530
546
563
580
597
615
633
As Misc. Operating Supplies
Property Tax Fees
0
0
0
0
0
0
0
0
0
0
0
As Property Tax Fees
$476,450
$423,535
$434,160
$447,185
$460,600
$474,418
$488,651
$503,310
$518,410
$533,962
$549,981
Total Op Materials & Supplies
Contractual Services
Solids Removal
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
As Solids Removal
Other Waste Disposal
Grit & Screenings Disposal
0
0
0
0
0
0
0
0
0
0
0
As Other Waste Disposal
Other Residual Solids
0
0
0
0
0
0
0
0
0
0
0
As Other Waste Disposal
Other Waste Disposal
0
0
0
0
0
0
0
0
0
0
0
As Other Waste Disposal
Groundskeeping
0
0
0
0
0
0
0
0
0
0
0
As Grounds Keeping
Janitorial
0
0
0
0
0
0
0
0
0
0
0
As Janitorial
Outside Lab Services
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Oxygen - O& M contract
0
0
0
0
0
0
0
0
0
0
0
As Misc. Operating Supplies
County Service Fee
0
0
0
0
0
0
0
0
0
0
0
As Miscellaneous Expense
Temporary Services
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Security Services
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
In -Plant Line Cleaning
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Other
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Total Contractual Services
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
10/29/2022 4Draft57 OC San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 2 - Sources & Application of Funds
Total Professional Services
Total Research & Monitoring
Total Repairs & Maintenance
Utilities
Telephone
Diesel For Generators
Natural Gas - Total
Power - Total
Water -Total
Total Utilities
Total Other Operat. Supplies
Total General Manager
Total Other Non -Operating
Total Matls, Supply, & Svc.
Oper Requirement Before Cost Allocation
Cost Allocation:
In/(Out) Svc Div to Line Div
In/(Out) OCSD Equip Rental
In/(Out) Lab Charges
(Out) to CIP for Salary
(Out) to CIP for OH
In/<Out> to RA for Salary
In/<Out> to RA for OH
In/<Out> to RA for Non -Sal
Cost Allocation - Total
Total Fleet Services
Page 13 of 17
Estimated Preliminary Preliminary Projected
CV 7l17'I_77 Cv ini7_72 uv 7n72_7A ry 7n7A_7C Cv 7n7C_7c ry 7n-77 cv 7n77_7Y cv in a4 uv 7n70_2n cv 7n2n_21 uv 7n21_27
Notes
7,000 12,025 12,025 12,386 12,757 13,140 13,534 13,940 14,358 14,789 15,233 As Professional Services
0 0 0 0 0 0 0 0 0 0 0 As Research & Monitoring
567,332 648,669 648,669 668,129 688,173 708,818 730,083 751,985 774,545 797,781 821,714 As Repairs & Maintenance
0 0 0 0 0 0 0 0 0 0 0 As Telephone
75,000 55,000 60,000 61,800 63,654 65,564 67,531 69,556 71,643 73,792 76,006 As Fuel
0 0 0 0 0 0 0 0 0 0 0 As Natural Gas
0 0 0 0 0 0 0 0 0 0 0 As Power
0 0 0 0 0 0 0 0 0 0 0 As Water
75,000 55,000 60,000 61,800 63,654 65,564 67,531 69,556 71,643 73,792 76,006
10,240 50,500 50,500 52,015 53,575 55,183 56,838 58,543 60,300 62,109 63,972 As Misc. Operating Supplies
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
150 200 200 206 212 219 225 232 239 246 253 As Other Non -Operating Costs
$1,139,522 $1,217,359 $1,217,614 $1,254,142 $1,291,767 $1,330,520 $1,370,435 $1,411,548 $1,453,895 $1,497,512 $1,542,437
$2,410,822 $2,463,959 $2,528,914 $2,604,781 $2,682,925 $2,763,413 $2,846,315 $2,931,704 $3,019,656 $3,110,245 $3,203,553
53,000 73,300 73,300 75,499 77,764 80,097 82,500 84,975 87,524 90,150 92,854 As Miscellaneous Expense
(452,350) (452,350) (452,350) (465,921) (479,898) (494,295) (509,124) (524,398) (540,130) (556,333) (573,023) As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
( 399,350) (379,050) (379,050) (390,422) (402,134) (414,198) (426,624) (439,423) (452,606) (466,184) (480,169)
$2,011,472 $2,084,909 $2,149,864 $2,214,360 $2,280,791 $2,349,214 $2,419,691 $2,492,282 $2,567,050 $2,644,062 $2,723,383
10/29/2022 15 -Draft
57 Oc San
Orange County Sanitation District
Cost of Service Rate Study
Page 14 of 17
Revenue Requirement
Exhibit 2 - Sources & Application of Funds
Estimated
Preliminary
Preliminary
Projected
FY 2021-22
FY 2022-23
FY 2023-24
FY 2024-25
FY 2025-26
FY 2026-27
FY 2027-28
FY 2028-29
FY 2029-30
FY 2030-31
FY 2031-32
Notes
Plant No. 1 & 2 Operations & Maintenance
Salaries, Wages,& Benefits
$37,172,700
$39,850,454
$41,804,054
$43,058,176
$44,349,921
$45,680,419
$47,050,831
$48,462,356
$49,916,227
$51,413,713
$52,956,125
As Salaries, Labor & Benefits
Materials, Supplies, & Services
Total Administrative Exp
$199,220
$268,760
$202,250
$208,318
$214,567
$221,004
$227,634
$234,463
$241,497
$248,742
$256,204
As Miscellaneous Expense
Total Printing & Publication
14,821
25,700
25,700
26,471
27,265
28,083
28,926
29,793
30,687
31,608
32,556
As Misc. Services
Training & Meetings
Meetings - Total
1,850
5,420
5,420
5,583
5,750
5,923
6,100
6,283
6,472
6,666
6,866
As Training & Meetings
Training - Total
34,010
118,800
157,780
162,513
167,389
172,410
177,583
182,910
188,398
194,049
199,871
As Training & Meetings
$249,901
$418,680
$391,150
$402,885
$414,971
$427,420
$440,243
$453,450
$467,054
$481,065
$495,497
Total Training & Meetings
Operating Materials & Supplies
Chem. Coagulants - Total
$11,204,746
$12,103,086
$12,585,600
$12,963,168
$13,352,063
$13,752,625
$14,165,204
$14,590,160
$15,027,865
$15,478,701
$15,943,062
As Chemicals
Odor Control - Total
741,194
818,000
830,500
855,415
881,077
907,510
934,735
962,777
991,660
1,021,410
1,052,053
As Chemicals
Disinfection -Total
163,080
198,500
162,500
167,375
172,396
177,568
182,895
188,382
194,033
199,855
205,850
As Chemicals
Chemicals - CogenOp.
305,000
350,000
384,000
395,520
407,386
419,607
432,195
445,161
458,516
472,272
486,440
As Chemicals
Miscellaneous Chemicals
42,000
85,000
96,000
98,880
101,846
104,902
108,049
111,290
114,629
118,068
121,610
As Chemicals
Odor & Corrosion Control
0
0
0
0
0
0
0
0
0
0
0
As Chemicals
Gas, Diesel, & Oil -Total
349,630
406,400
406,400
418,592
431,150
444,084
457,407
471,129
485,263
499,821
514,815
As Fuel
Tools
444,400
454,000
454,000
467,620
481,649
496,098
510,981
526,310
542,100
558,363
575,114
As Tools and Small Equipment
Safety Equipment/Tools
491,950
522,000
524,000
539,720
555,912
572,589
589,767
607,460
625,683
644,454
663,788
As Tools and Small Equipment
Solv,Paint,JanitorSupplies
86,100
93,500
93,500
96,305
99,194
102,170
105,235
108,392
111,644
114,993
118,443
As Janitorial Supplies
Lab Chemicals & Supplies
22,020
24,750
24,750
25,493
26,257
27,045
27,856
28,692
29,553
30,439
31,353
As Chemicals
Misc. Operating Supplies
134,680
146,000
146,000
150,380
154,891
159,538
164,324
169,254
174,332
179,562
184,948
As Misc. Operating Supplies
Property Tax Fees
0
0
0
0
0
0
0
0
0
0
0
As Property Tax Fees
$13,984,800
$15,201,236
$15,707,250
$16,178,468
$16,663,822
$17,163,736
$17,678,648
$18,209,008
$18,755,278
$19,317,936
$19,897,474
Total Op Materials & Supplies
Contractual Services
Solids Removal
$12,030,000
$13,740,000
$14,790,000
$15,233,700
$15,690,711
$16,161,432
$16,646,275
$17,145,664
$17,660,033
$18,189,834
$18,735,530
As Solids Removal
Other Waste Disposal
Grit & Screenings Disposal
650,000
715,000
746,000
768,380
791,431
815,174
839,630
864,818
890,763
917,486
945,010
As Other Waste Disposal
Other Residual Solids
0
0
0
0
0
0
0
0
0
0
0
As Other Waste Disposal
Other Waste Disposal
126,000
126,000
126,000
129,780
133,673
137,684
141,814
146,069
150,451
154,964
159,613
As Other Waste Disposal
Groundskeeping
0
0
0
0
0
0
0
0
0
0
0
As Grounds Keeping
Janitorial
0
0
0
0
0
0
0
0
0
0
0
As Janitorial
Outside Lab Services
5,000
10,000
10,000
10,300
10,609
10,927
11,255
11,593
11,941
12,299
12,668
As Misc. Services
Oxygen - O & M contract
415,000
476,000
561,000
577,830
595,165
613,020
631,410
650,353
669,863
689,959
710,658
As Misc. Operating Supplies
County Service Fee
0
0
0
0
0
0
0
0
0
0
0
As Miscellaneous Expense
Temporary Services
85,990
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Security Services
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
In -Plant Line Cleaning
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Other
0
0
0
0
0
0
0
0
0
0
0
As Misc. Services
Total Contractual Services
13,311,990
15,067,000
16,233,000
$16,719,990
$17,221,590
$17,738,237
$18,270,385
$18,818,496
$19,383,051
$19,964,542
$20,563,479
10/29/2022 16Do�57 OC San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 2 - Sources & Application of Funds
Total Professional Services
Total Research & Monitoring
Total Repairs & Maintenance
Utilities
Telephone
Diesel For Generators
Natural Gas - Total
Power - Total
Water -Total
Total Utilities
Total Other Operat. Supplies
Total General Manager
Total Other Non -Operating
Total Matls, Supply, & Svc.
Oper Requirement Before Cost Allocation
Cost Allocation:
In/(Out) Svc Div to Line Div
In/(Out) OCSD Equip Rental
In/(Out) Lab Charges
(Out) to CIP for Salary
(Out) to CIP for OH
In/<Out> to RA for Salary
In/<Out> to RA for OH
In/<Out> to RA for Non -Sal
Cost Allocation - Total
Total Plant No. 1 & 2 Operations & Maintenance
Page 15 of 17
Estimated Preliminary Preliminary Projected
CV 7n71_77 CV 1.17_72 uv 7n72_7A ry 7n7A_7C uv 7n7C_7G cv in aG cv 7n77_7Y cv in14_70 N 7n70_2n cv 7n2n_21 N 7n21_27
Notes
1,285,790 1,584,000 1,632,000 1,680,960 1,731,389 1,783,330 1,836,830 1,891,935 1,948,693 2,007,154 2,067,369 As Professional Services
0 0 0 0 0 0 0 0 0 0 0 As Research & Monitoring
22,281,730 20,712,851 23,917,195 24,634,711 25,373,752 26,134,965 26,919,014 27,726,584 28,558,382 29,415,133 30,297,587 As Repairs & Maintenance
0
0
0
0
0
0
0
0
0
0
0
As Telephone
31,410
0
0
0
0
0
0
0
0
0
0
As Fuel
1,050,695
1,447,000
1,395,000
1,436,850
1,479,956
1,524,354
1,570,085
1,617,187
1,665,703
1,715,674
1,767,144
As Natural Gas
6,574,619
8,340,000
8,048,000
8,289,440
8,538,123
8,794,267
9,058,095
9,329,838
9,609,733
9,898,025
10,194,966
As Power
995.200
852,000
876,400
902,692
929,773
957,666
986,396
1,015,988
1,046,467
1,077,861
1,110,197
As Water
9,710 14,300 14,300 14,729 15,171 15,626 16,095 16,578 17,075 17,587 18,115 As Misc. Operating Supplies
0 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Expense
15,766 7,520 7,520 7,746 7,978 8,217 8,464 8,718 8,979 9,249 9,526 As Other Non -Operating Costs
$59,791,611 $63,644,587 $68,221,815 $70,268,469 $72,376,524 $74,547,819 $76,784,254 $79,087,781 $81,460,415 $83,904,227 $86,421,354
$96,964,311 $103,495,041 $110,025,869 $113,326,645 $116,726,444 $120,228,238 $123,835,085 $127,550,137 $131,376,642 $135,317,941 $139,377,479
(646,820)
114,800
114,800
118,244
121,791
125,445
129,208
133,085
137,077
141,190
145,425
As Miscellaneous Expense
125,640
125,640
125,640
129,409
133,291
137,290
141,409
145,651
150,021
154,521
159,157
As Miscellaneous Expense
0
0
0
0
0
0
0
0
0
0
0
As Miscellaneous Expense
(159,160)
(172,400)
(180,700)
(186,121)
(191,705)
(197,456)
(203,379)
(209,481)
(215,765)
(222,238)
(228,905)
As Miscellaneous Expense
(197,000)
(205,130)
(215,020)
(221,471)
(228,115)
(234,958)
(242,007)
(249,267)
(256,745)
(264,447)
(272,381)
As Miscellaneous Expense
0
0
0
0
0
0
0
0
0
0
0
As Miscellaneous Expense
0
0
0
0
0
0
0
0
0
0
0
As Miscellaneous Expense
0
0
0
0
0
0
0
0
0
0
0
As Miscellaneous Expense
$96,086,971 $103,357,951 $109,870,589 $113,166,707 $116,561,708 $120,058,559 $123,660,316 $127,370,125 $131,191,229 $135,126,966 $139,180,775
10/29/2022 1 / ra - Oc San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 2 - Sources & Application of Funds
Additional Expenditures (Input on Dashboard)
Total Operations & Maintenance Expense
Annual %Change in O&M Expense
Capital Funding Analysis
Capital Expenditures
Plus: Future Renewal and Replacement
Additional Capital Expenditures
Capital Expenditures
Transfer in from Other Funds to Pay for Capital
Less: CIP Savings & Deferrals
CFCC & SCFCC Revenue
Grant Funding
Revenue Bonds
Low Interest Loans
Capital Funded Through Rates (Capital Exp less
Transfers Out
Equity Purchases (Joint Operations)
Self Insurance Fund Requirements
Total Transfers Out
Transfers In
Blank
Total Transfers In
Debt Service
2010A Build America Bonds
2010C Build America Bonds
2011A
2012A
2012B
2014A Refunding
2015A Refunding
2016A Refunding
2017A Refunding
2018A
2021A Refunding
2022A Refunding
New Low Interest Loan
New COP
Debt Issuance Costs
Total
Page 16 of 17
Estimated Preliminary Preliminary Projected
— 7a71_17 CV1 17_72 uv --A CV 7n7A_7c Cv 7n7C_7G CV 7n-77 cv 7n77_7Y CV 7n74_7a CV 7n7a_2n — 7n2n_21 uv 7n21_27
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Notes
$182,579,269 $201,144,702 $209,891,777 $216,188,530 $222,674,186 $229,354,412 $236,235,044 $243,322,095 $250,621,758 $258,140,411 $265,884,623
0%
$203,320,511 $284,617,363 $329,320,433 $311,961,390 $321,793,493 $322,826,459 $324,753,539 $353,913,646 $308,176,430 $251,753,302 $249,061,975 $3,058,178,030
0 0 10,000,000 2,157,930 5,876,342 18,770,190 15,621,645 40,551,097 64,524,757 92,799,943 105,705,540 $356,007,444
0 0 0 0 0 0 0 0 0 0 0
$203,320,511 $284,617,363 $339,320,433 $314,119,320 $327,669,835 $341,596,649 $340,375,184 $394,464,743 $372,701,187 $344,553,245 $354,767,515
$0 ($16,449,864) ($24,012,792) ($32,206,601) ($26,986,247) ($48,638,749) ($45,384,259) ($45,113,230) ($28,580,844) $1,779,946 ($73,536,991) ($339,129,631) Input from CashfloA
(17,205,244) (17,923,752) (18,533,000) (19,623,000) (19,779,000) (19,937,000) (20,103,000) (20,265,000) (20,430,000) (20,600,000) (20,768,000) Cashflow file
0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0
$186,115,267 $250,243,747 $296,774,641 $262,289,719 $280,904,588 $273,020,900 $274,887,925 $329,086,513 $323,690,343 $325,733,191 $260,462,524 $2,877,094,091 $287,709,409.08
$0 $3,500,000 $3,500,000 $0 $0 $0 $0 $0 $0 $0 $0
3,269,700 3,690,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000 3,850,000
$3,269,700 $7,190,000 $7,350,000 $3,850,000 $3,850,000 $3,850,000 $3,850,000 $3,850,000 $3,850,000 $3,850,000 $3,850,000
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
50 $0 50 $0 50 $0 50 $0 50 $0 50
$2,984,334 $2,986,574 $2,986,574 $2,986,574 $2,986,574 $2,986,574 $2,986,574 $2,986,574 $2,986,574 $2,986,574 $2,986,574 Debt Schedule
6,724,010 6,724,010 6,724,010 6,724,010 6,724,010 6,724,010 6,724,010 6,724,010 6,724,010 12,459,010 23,382,068 Debt Schedule
2,019,050 0 0 0 0 0 0 0 0 0 0 Debt Schedule
3,735,900 0 0 0 0 0 0 0 0 0 0 Debt Schedule
8,446,150 0 0 0 0 0 0 0 0 0 0 Debt Schedule
11,049,000 11,046,750 11,044,000 11,049,750 11,052,500 11,051,250 0 0 0 0 0 Debt Schedule
6,375,500 6,375,500 6,375,500 6,375,500 6,375,500 6,375,500 21,615,500 21,658,500 20,776,250 10,228,000 3,702,250 Debt Schedule
11,389,800 11,391,550 11,396,050 11,392,550 11,390,800 11,390,050 11,394,550 11,388,300 11,391,050 11,411,550 11,413,050 Debt Schedule
3,290,750 3,290,750 3,290,750 3,290,750 3,290,750 18,405,750 18,365,000 18,323,500 19,204,500 0 0 Debt Schedule
2,356,278 0 0 0 0 0 0 0 0 0 0 Debt Schedule
8,844,836 22,672,000 22,713,500 22,672,250 22,725,250 7,485,750 7,486,000 7,489,750 7,486,250 7,490,250 7,485,750 Debt Schedule
0 4,081,000 4,081,000 4,081,000 4,081,000 4,081,000 4,081,000 4,081,000 4,081,000 26,566,000 25,761,750 Debt Schedule
0 0 0 0 0 0 0 0 0 0 0 Calculated @ 4.5%for 20 yrs
0 0 0 0 0 0 0 0 0 0 0 Calculated @ 3% for 10 yrs
630,847 0 0 0 0 0 0 0 0 0 0
$67,846,455 $68,568,134 $68,611,384 $68,572,384 $68,626,384 $68,499,884 $72,652,634 $72,651,634 $72,649,634 $71,141,384 $74,731,442
10/29/2022 18 Draft- OC San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 2 - Sources & Application of Funds
Estimated Preliminary Preliminary Projected
CV 7a7�_77 Cv ini7_72 uv 7n72_7A ry 7n7A_7C Cv 7n7C_7c ry 7n-77 cv 7n77_7a cv inla_70 uv 7n70_2n cv 7n2n_21 uv 7n21_27
Total Revenue Requirements $439,810,691 $527,146,583 $582,627,802 $550,900,633 $576,055,158 $574,725,196 $587,625,603 $648,910,242 $650,811,735 $658,864,986 $604,928,589
Annual %Change in Revenue Requirement 10.5% -5.4% 4.6% -0.2% 2.2% 10.4% 0.3% 1.2% -8.2%
Balance / (Deficiency) of Funds $27,783,678 ($41,697,380) ($96,972,432) ($75,455,111) ($94,954,942) ($88,780,484) ($96,368,469) ($150,369,539) ($146,951,001) ($149,287,344) ($91,862,646)
Rate Adiust. as a % of Rate Rev 12.4% 28.8% 22.4% 28.1% 26.2% 28.3% 44.1% 42.9% 43.5% 26.7%
Addt'I Rev from Proposed Adj. $0 $0 $11,775,690 $24,032,224 $36,787,971 $50,061,994 $63,874,084 $78,244,783 $93,195,414 $108,748,111 $124,925,848
Net Bal/(Def) of Funds After Rate Adj. $27,783,678 ($41,697,380) ($85,196,742) ($51,422,887) ($58,166,972) ($38,718,491) ($32,494,385) ($72,124,756) ($53,755,587) ($40,539,233) $33,063,202
Additional Rate Increase Needed 12.4% 25.3% 15.2% 17.2% 11.4% 9.5% 21.1% 15.7% 11.8% -9.6%
Residential Bill (1 EDU)
$343.00
$347.00
$359.15
$371.72
$384.73
$398.19
$412.13
$426.55
$441.48
$456.93
$472.93
$ Change Per Year
4.00
12.15
12.57
13.01
13.47
13.94
14.42
14.93
15.45
15.99
Cumulative $ Change per Year
4.00
16.15
28.72
41.73
55.19
69.13
83.55
98.48
113.93
129.93
Debt Service Coverage Ratio w/o CFCC
Before Rate Adjustment
4.20
4.15
4.02
3.78
3.77
3.75
3.51
3.51
3.49
3.53
3.31
After Rate Adjustment
4.20
4.15
4.19
4.13
4.30
4.48
4.39
4.59
4.77
5.06
4.98
Target Coverage
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
Required Coverage
1.25
1.25
1.25
1.25
1.25
1.25
1.25
1.25
1.25
1.25
Cash Reserves
Wastewater Fund Working Cash
Beginning Balance
$964,225,022
$992,008,699
$964,903,926
$893,542,767
$855,236,335
$809,360,256
$782,492,679
$762,490,962
$700,247,633
$656,592,594
$625,598,205
Plus: Revenue
327,459,387
335,486,676
336,448,278
337,412,766
338,380,147
339,350,431
340,323,625
341,299,739
342,278,781
343,260,760
344,245,685
Plus: Additional Revenue with Rate Adjustment
0
0
11,775,690
24,032,224
36,787,971
50,061,994
63,874,084
78,244,783
93,195,414
108,748,111
124,925,848
Plus Misc Revenue
134,383,982
149,962,527
149,207,091
138,032,756
142,720,069
146,594,281
150,933,509
157,240,964
161,581,953
166,316,882
168,820,258
Plus: Debt Proceeds
0
0
0
0
0
0
0
0
0
0
0
Less: Expense
(182,579,269)
(201,144,702)
(209,891,777)
(216,188,530)
(222,674,186)
(229,354,412)
(236,235,044)
(243,322,095)
(250,621,758)
(258,140,411)
(265,884,623)
Less: Capital Funded Through Rates
(186,115,267)
(250,243,747)
(296,774,641)
(262,289,719)
(280,904,588)
(273,020,900)
(274,887,925)
(329,086,513)
(323,690,343)
(325,733,191)
(260,462,524)
Less: Equity Purchase/Self Insurance Fund
(3,269,700)
(7,190,000)
(7,350,000)
(3,850,000)
(3,850,000)
(3,850,000)
(3,850,000)
(3,850,000)
(3,850,000)
(3,850,000)
(3,850,000)
Less: Debt Service
(67,846,455)
(68,568,134)
(68,611,384)
(68,572,384)
(68,626,384)
(68,499,884)
(72,652,634)
(72,651,634)
(72,649,634)
(71,141,384)
(74,731,442)
Interest Earnings
5,751,000
14,592,608
13,834,583
13,017,455
12,390,793
11,850,014
11,493,667
10,881,429
10,100,548
9,544,845
9,631,947
Ending Balance
$992,008,699
$964,903,926
$893,541,767
$855,136,335
$809,360,256
$782,491,679
$762,490,962
$700,247,633
$656,592,594
$625,598,205
$668,293,354
Target Balance
530,575,102
547,681,180
555,145,550
561,161,477
567,303,124
573,586,906
579,590,739
585,603,049
591,722,035
598,097,312
604,172,824
Page17cf17
Target Balance Calculation
50% Next Year Operating Expense
91,289,635
100,572,351
104,945,889
108,094,265
111,337,093
114,677,206
118,117,522
121,661,048
125,310,879
129,070,206
132,942,312
10% Next Year Operating Expense
18,257,927
20,114,470
20,989,178
21,618,853
22,267,419
22,935,441
23,623,504
24,332,210
25,062,176
25,814,041
26,588,462
100% Next Year AVG COP Svc.
22,781,248
19,266,567
18,515,692
17,726,192
16,898,192
16,027,442
15,116,317
14,055,817
12,942,317
11,773,192
10,508,221
50% average ten-year CIP Balance
153,752,792
153,752,792
153,752,792
153,752,792
153,752,792
153,752,792
153,752,792
153,752,792
153,752,792
153,752,792
153,752,792
Debt Svc @ 10% Outstanding COP
81,978,500
78,975,000
75,817,000
72,505,000
69,022,000
65,377,500
61,135,500
56,681,500
52,005,000
47,245,500
41,874,000
Self Funded Insurance @ $100M
100,000,000
100,000,000
103,500,000
107,122,500
110,871,788
114,752,300
118,768,631
122,925,533
127,227,926
131,680,904
136,289,735
Repl & Refurb
62,515,000
75,000,000
77,625,000
80,341,875
83,153,841
86,064,225
89,076,473
92,194,149
95,420,945
98,760,678
102,217,301
*Reserve Reduction (in accordance
with Board action allowing a $40M reduction
to total reserves)
0
0 Removed
Target Reserve Balance
530,575,102
547,681,180
555,145,550
561,161,477
567,303,124
573,586,906
579,590,739
585,603,049
591,722,035
598,097,312
604,172,824
*Reserve Reduction (in accordance
with Board action allowing a $40M reduction
to total reserves)
Notes
10/29/2022 19Do�57 oC San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 3 - Capital Plan
Page 1 of 7
vrojecc ana name I FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 i o[al
11-33 Edinger Pump Station Replacement
11-34 Slater Pump Station Rehabilitation
1-23 Santa Ana Trunk Sewer Rehabilitation
1-24 Greenville Trunk Improvements
2-49 Taft Branch Improvements
2-72B Newhope-Placentia Trunk Replacement, Segment B
2-73 Yorba Linda Pump Station Removal and Dosing Station Installation
2-78 Santa Ana Canyon South River Trunk Rehabilitation
3-60 Knott - Miller Holder -Artesia Branch Rehabilitation
3-62 Westminster Blvd Force Main Replacement
3-64B Los Alamitos Trunk Sewer Rehabilitation
3-64C Los Alamitos Sub -Trunk and Westside Relief Interceptor Rehabilitation
3-66 Interstate 405 Widening Project Impacts on OCSD Sewers
3-67 Seal Beach Pump Station Replacement
3-68 Los Alamitos Sub -Trunk Extension
5-66 Crystal Cove Pump Station Rehabilitation
5-67 Bay Bridge Pump Station Replacement
5-68 Newport Beach Pump Station Pressurization Improvements
6-20 Fairview Trunk Rehabilitation
7-63 MacArthur Pump Station Rehabilitation
7-64 Main Street Pump Station Rehabilitation
7-65 Gisler -Red Hill Interceptor and Baker Force Main Rehabilitation
7-66 Sunflower and Red Hill Interceptor Repairs
7-68 MacArthur Force Main Improvements
7-69 North Trunk -Yorba Street Sub -Trunk Improvements
Equipment Equipment Purchases
FE10-21 Area 02 Craig Regional Park Manhole Improvements
FE17-03 Battery Storage System at Plant No. 1
FE17-05 Plant 1 ICS Network Extension
FE18-06 CenGen Instrument Air Compressors Replacement at Plant No. 1
FE18-08 West Trunk Bypass Sewer Realignment
FE18-11 Headworks Explosive Gas Monitoring Systems at Plant No. 1 and No.
2
$653,065 $1,215,193 $932,542 $1,852,613 $7,634,876 $3,453,562 $1,456,768 $17,198,619
1,606,374 1,458,981 7,458,939 12,931,486 3,880,275 27,336,055
2,200,761 1,545,729 1,274,915 15,283,398 18,833,312 11,675,617 3,665,465 54,479,197
543,619 2,425,601 1,088,843 1,100,575 10,674,040 12,244,802 11,658,673 6,998,798 1,822,313 48,557,264
908,635 1,630,432 8,469,720 8,682,681 2,914,405 281,031 22,886,904
1,605,022 1,605,022
65,408 238,718 407,599 407,599 3,646,246 4,580,429 1,920,000 11,265,999
99,337 360,193 503,976 503,976 505,907 1,951,957 3,797,881 3,812,488 2,579,968 14,115,683
186,776 697,296 708,453 3,925,008 10,913,605 6,575,862 5,310,000 28,317,000
5,482,851 2,043,590 428,374 7,954,815
14,213,386 839,496 129,366 15,182,248
2,930,426 15,876,397 18,493,912 18,592,885 522,080 56,415,700
71,348 71,348
1,199,571 11,577,544 25,564,010 23,848,046 13,291,693 4,403,044 79,883,908
176,219 1,175,487 2,099,842 2,083,813 2,083,813 15,961,806 28,764,604 52,345,584
100,943 369,259 450,188 451,913 3,083,315 4,990,871 2,086,511 2,370,000 13,903,000
2,500,810 5,275,140 12,934,273 23,080,645 23,624,408 14,101,299 9,843,724 2,934,970 94,295,269
1,148,196 1,101,915 259,162 2,509,273
604,157 859,273 1,636,246 7,311,129 6,806,200 1,959,346 19,176,351
50,828 203,387 293,967 302,069 947,694 3,385,234 2,555,821 1,590,000 9,329,000
134,639 710,670 1,130,083 1,130,083 1,678,885 26,458,639 31,242,999
9,688,401 18,268,938 12,465,155 2,029,322 42,451,816
3,325,654 307,066 3,632,720
312,173 5,024,553 754,452 472,280 6,563,458
101,207 328,649 437,910 437,910 3,519,473 4,168,853 1,860,000 10,854,002
6,949,700 7,851,002 14,800,702
150,404 11,556 161,960
1,486 1,486
91,844 91,844
388,316 351,021 147,200 886,537
0
15,818 15,818
10/29/2022 20 oaft- OC San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 3 -Capital Plan
Page 2 of 7
rrolecc ana name I FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 i o[ai
FE18-12
Erosion Control at Santa Ana River and Hamilton Ave
51,425
FE18-13
Redhill Relief Sewer Relocation at State Route 55
2,535,656
279,204
174,476
FE18-14
Plant Water Pipeline Replacement in Kinnison, Lindstrom, and Scott
Tunnels at Plant No. 2
707,753
199,631
FE18-15
Plant Boiler System Relief at Plant No. 2
49,219
21,607
FE18-16
Truck Loading Basement Drain Modifications at Plant No. 1
119,493
19,983
FE18-19
12KV Distribution B and East RAS Pump Station Roofing
Replacement
82,085
FE18-20
DAFT Air Compressors Replacement at Plant No. 1
543,146
428,211
126,230
FE19-01
Pump Station Portable Generator Connectors
1,470,229
362,585
328,050
FE19-02
Cengen Plant Water Pipe Replacement at Plant No. 1
197,983
2,850,342
550,351
FE19-03
Trickling Filter Sludge and Scum Pumps Replacement at Plant No. 1
593,722
921,145
1,170,277
FE19-04
Sunflower Pump Replacement at Plant No. 1
1,732,102
1,369,851
332,305
FE19-06
EPSA Motor Cooling Improvements at Plant No. 2
1,036,119
38,046
FE19-08
Secondary Treatment VFD Replacements at Plant No. 2
469,550
1,287,126
840,262
FE19-10
Digesters C, D, F, G and I Gas Balance Lines Replacement at Plant No.
2
1,754,988
163,823
156,706
FE19-11
Primary Clarifiers Nos. 6-31 Lighting and Alarm Improvements at
Plant
No. 1
12,079
17,940
80,918
FE19-12
Rebuild Shop Fume Extractor Installation at Plant No 1
399,458
36,383
FE19-13
VFD Replacements at Seal Beach Pump Station
208,296
65,577
FE20-01
Wastehauler Station Safety and Security Improvements
176,706
885,754
243,878
FE20-02
Digester C, D, F, and G Mechanical Rehabilitation at Plant No. 2
364,793
2,172,081
1,104,456
FE20-03
Return Activated Sludge Discharge Piping Replacement at Activated
Sludge Plant No. 1
516630
3,151,866
855,593
FE20-04
Cengen Cooling Water Pipe Replacement at Plant No. 2
253:719
998,739
2,681,158
FE20-05
Plant Water Piping Replacement at Secondary Clarifiers 1-26 at Plant
No.1
911,695
268,380
268,159
FE20-06
Thickening and Dewatering Building Pipe Support Improvements at
Plant
No. 1
870,461
309,245
FE20-07
Santa Ana Trunk Rehabilitation at Plant No. 1
597,011
50,672
FE20-08
Olive Sub -Trunk Siphon Rehabilitation at Santa Ana River
211911
2,266,894
162,102
FE20-09
CenGen Smoke Detection Improvements at Plant No. 1 and No. 2
117:904
405,360
64,964
FE20-10
Adolfo Lopez Chemical Dosing Station Installation
164,119
685,089
86,269
FE21-01
Plasma Cutting Fume Extractor installation at Plant No. 1 Rebuild
Shop
222,842
36,915
FE21-02
Lighting Improvements Boiler and Sludge Dewatering Areas at Plant
No.1
232,764
38,026
FE21-04
Thickening and Dewatering Facility Handrail Installation at Plant No.
1
145,722
37,444
3,036
FE21-05
Warehouse Stations and Demolition at Plant No. 2
291,508
1,652,322
219,191
FE21-06
Chemical Dosing Station Installation at Westside Pump Station
187,356
264,827
56,258
IT16-09
iPACS Enhancements
664
IT18-09 Records Management Information System
IT19-01 IT Safety VPP Systems (IT19-01)
149,696
65,871
48,651
1,019,096 2,530
6,276
42,780 12,831
51,425
2,989,336
907,384
70,826
139,476
82,085
1,097,587
2,160,864
3,748,372
2,685,144
3,434,258
1,074,165
2,662,809
2,075,517
159,588
435,841
273,873
1,306,338
3,641,330
4,524,089
4,955,242
1,448,234
1,179,706
647,683
2,640,907
588,228
941,753
259,757
270,790
186,202
2,163,021
508,441
56,275
0
0
10/29/2022 2,)Drr4t57 OC San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 3 -Capital Plan
Page 3 of 7
vrojecc ana name I FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 i 01al
IT19-05 IT PI & P2 Data Refresh (IT19-05)
IT20-05 Client Management Modernization (ICE-69_IT20-05) 6520005
IT20-06 Nintex Workflow Cloud Implementation (ICE-75_IT20-06) 6520006
IT20-07 Professional Services for Valo/SharePoint (ICE-74_IT20-07) 6520007
IT20-08 Field Computer for Nerissa and Interface with LIMS(ICE-68_IT20-07)
6520008
IT20-09 ITSM Migration (ICE-70_IT20-09) 6520009
IT20-10 Digitize Quality Assurance Tracking Processes /TNI/ELAP
StandardslCE-76_IT20-10)6520010
IT20-12 Web -based Cloud Proxy Security with an Isolation Platform (ICE-
78 6520012)
IT21-01 Access Network Equipment Obsolescence Replacement (ICE-79_IT21-
01)6521001
IT21-02 Hyper Converged Infrastructure for Plant 1 ICS network (ICE-80 IT21-
02)6521002
IT21-03 Door Access Control System for P2 Construction Management
Trailers (ICE-83_IT21-036521003
IT21-04 Databridge Scale Management Software (ICE - 84_IT21-04)
IT21-051D Edwards Server Migration and Upgrade (ICE - 86_IT21-05)
IT21-06 Dig -Smart Fusion (ICE -89_16521006_T21-06)
IT21-07 Advanced Email Security (ICE - 90_16521007_T21-07)
1-117B Outfall Low Flow Pump Station
1-120 Process Control Systems Upgrades
1-120A Control Room Reconfiguration at Plant No. 1 and Plant No. 2
1-124 Digester Gas Facilities Replacement
1-127 Natural Gas Pipelines Replacement at Plant Nos. 1 and 2
1-128 Project Management Information System
1-133 Laboratory Rehabilitation/Replacement at Plant No 1
1-135 Central Generation Engine Overhauls at Plant No. 1 and 2
1-135A Central Generation Engine Overhaul at Plant No. 1
1-135B Engine and Generator Overhauls at Plant No. 1 and 2
1-136 Power Building Structural Seismic Improvements at Plant No. 1 and 2
1-137 120-inch Ocean Outfall Rehabilitation
1-36-2 GWRS Final Expansion Coordination
1-98 Electrical Power Distribution System Improvements
M-FE Small Construction Projects Program
M-MC-IT Information Technology Capital Program
M-RESEARCH Research Program
M-SM-CAP Operations & Maintenance Capital Program
M-STUDIES Planning Studies Program
P1-101 Sludge Dewatering and Odor Control at Plant 1
1,070,000 1,070,000
71,603 71,603
0
27,835 27,835
77,822 77,822
0
89,317 89,317
0
1,009,193 1,009,193
139,321 139,321
0
35,946 35,946
68,628 68,628
0
0
19,862,966 15,084,374 14,757,711 1,459,625 51,164,676
7,399,012 6,560,418 5,520,288 4,781,569 6,528,988 30,790,275
302,051 679,900 2,414,697 368,945 3,765,593
146,143 902,218 25,642,216 28,641,424 28,855,782 29,017,652 28,071,955 15,317,316 353,603 156,948,309
78,826 78,826
670,937 670,937
923,219 2,672,251 2,745,896 2,745,896 6,865,716 21,479,548 21,586,207 20,900,267 20,081,000 100,000,000
71,165 71,165 72,304 1,028,970 5,955,937 5,976,457 1,698,637 14,874,635
0
1,423,029 8,281,455 6,213,391 6,925,238 1,156,887 24,000,000
215,186 523,480 960,224 2,079,332 1,438,535 147,523 5,364,280
38,022 686,862 2,314,826 2,378,620 2,378,620 4,866,988 8,399,741 10,183,630 13,634,227 20,086,463 64,967,999
272,061 272,061
2,119,310 5,283,711 5,550,105 5,792,820 3,883,910 1,661,830 24,291,686
3,040,666 3,029,015 3,040,666 3,040,666 3,040,666 3,052,316 3,029,015 3,017,365 24,290,375
418,281 418,281 424,973 436,685 436,685 438,358 435,012 435,012 436,685 438,358 4,318,330
253,856 253,856 257,918 265,026 265,026 266,042 264,011 264,011 2,089,746
998,441 998,441 1,014,416 1,042, 372 1,042, 372 1,046, 366 1,038, 379 1,038, 379 1,042, 372 1,042, 372 10, 303, 910
1,803,657 1,803,659 1,832,517 1,883,020 1,883,020 1,890,235 1,875,805 1,875,805 14,847,718
0
10/29/2022 22 rraft57 OO San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 3 - Capital Plan
Page 4 of 7
vrolecc ana name I FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 i o[ai
P1-105 Headworks Rehabilitation at Plant 1
P1-126 Primary Sedimentation Basins No. 3-5 Replacement at Plant No. 1
P1-127 Central Generation Rehabilitation at Plant No. 1
P1-128A Headquarters Complex at Plant No. 1
P1-129 Return Activated Sludge Piping Replacement at Activated Sludge Plant
No. 1
P1-132 Uninterruptable Power Supply Improvements at Plant 1
P1-133 Primary Sedimentation Basins No. 6-31 Reliability Improvements at
Plant No. 1
P1-134 South Perimeter Security and Utility Improvements at Plant No.1
P1-135 Digester Ferric Chloride Piping Replacement at Plant No. 1
P1-136 12.47 kV Switchgear Replacement at Central Generation at Plant No.
1
P1-137 Supports Buildings Seismic Improvements at Plant No. 1
P1-138 Industrial Control System and IT Data Center Relocation at Plant No. 1
P1-140 Activated Sludge-1 and Secondary Clarifier Rehabilitation
P1-141 Administrative Facilities and Power Building 3A Demolition
P2-119 Central Generation Rehabilitation at Plant No. 2
P2-122 Headworks Modifications at Plant No. 2 for GWRS Final Expansion
P2-123 Return Activated Sludge Piping Replacement at Plant 2
P2-124Interim Food Waste Receiving Facility
P2-127 Collections Yard Relocation
P2-128 TPAD Digester Facility at Plant No.2
P2-128ATPAD Perimeter Wall
P2-129 Digester P, 0, R, and S Replacement
P2-133 B/C-Side Primary Sedimentation Basins Rehabilitation at Plant No. 2
P2-135 Sodium Bisulfite Station Rehabilitation at Plant No. 2
P2-136 Activated Sludge Aeration Basin Rehabilitation at Plant No. 2
P2-137 Digesters Rehabilitation at Plant No. 2
P2-138 Operations and Maintenance Complex at Plant No. 2
P2-139 Emergency Overflow Wingwalls Rehabilitation at Plant No. 2
P2-140 Truck Loading Bay Odor Control Improvements at Plant No. 2
P2-98A A -Side Primary Clarifiers Replacement at Plant 2
P2-988 B/C-Side Primary Clarifiers Interim Repair at Plant 2
PS17-03 Active Fault Location Study at Plant No. 2
PS18-06 Go/No-Go Lights and Signage
PS18-09 Ocean Outfall Condition Assessment and Scoping Study
PS19-03 Laboratory Rehabilitation Feasibility Study
34,978,473 77,053,946 38,199,385 35,716,381 25,793,517 20,396,147 28,689,509 260,827,358
2,729,469 3,209,282 5,426,802 5,778,971 4,657,459 17,353,718 50,373,386 50,307,339 17,573,189 11,218,474 168,628,089
316,114 1,555,021 1,664,845 6,645,842 11,702,420 21,884,242
61,197,824 20,767,264 3,160,783 85,125,871
0
1,931,268 3,016,195 658,489 5,605,952
2,629,590 5,359,565 2,164,631 1,325,470 11,479,256
3,738,937 395,278 4,134,215
89,718 125,953 215,671
116,610 620,407 917,016 1,725,909 2,718,663 2,718,663 2,729,119 1,411,613 12,958,000
769,029 1,604,316 2,392,194 4,936,630 4,968,870 4,872,965 2,840,724 1,258,507 23,643,235
219,007 348,263 1,118,009 2,696,326 911,655 406,741 5,700,001
1,096,587 3,480,928 5,021,352 6,081,208 8,740,959 23,171,695 46,932,491 69,684,749 52,561,716 44,380,768 261,152,453
62,055 202,542 541,015 3,213,458 3,270,930 1,620,000 8,910,000
83,594 1,488,701 2,814,117 2,814,117 14,471,620 15,018,247 36,690,396
4,930,161 965,602 5,895,763
1,233,062 97,580 1,330,642
10,140 16,899 2,741,215 2,009,722 170,558 4,948,534
168,067 1,296,029 378,996 1,843,092
10,444,998 9,502,649 12,986,772 27,365,504 57,515,733 63,336,895 62,705,249 62,290,170 43,092,505 27,041,661 376,282,136
10,598,838 21,393,098 19,071,238 2,136,826 53,200,000
297,610 1,811,097 2,716,091 2,695,357 2,695,357 22,754,201 26,430,316 59,400,029
330,662 3,219,097 6,133,298 6,156,797 15,839,854
167,537 431,386 581,128 2,752,130 738,913 288,713 4,959,807
297,355 2,392,285 1,704,046 3,010,558 14,536,946 23,615,192 7,773,508 12,208,734 65,538,624
1,843,646 1,486,783 8,989,585 11,258,867 10,731,550 6,063,725 40,374,156
832,402 2,370,340 2,560,121 2,589,540 8,651,512 23,309,476 22,722,610 9,631,772 11,131,169 83,798,942
117,241 224,545 234,118 1,523,041 2,271,054 4,369,999
95,012 287,368 372,342 416,596 2,706,318 2,522,364 1,200,000 7,600,000
30,540,734 35,935,487 29,809,992 16,726,884 15,237,784 5,515,434 133,766,315
0
0
99,262 99,262
55,300 55,300
12,593 12,593
10/29/2022 23 oaft- OC San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 3 - Capital Plan
Page 5 of 7
vrotecc ana name I FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 i 01ai
PS20-01 Collections Yard Relocation Feasibility Study
69,513
69,513
PS20-02 Collection System Flow Level Monitoring Study
197,168
302,937
113,391 6,751
620,247
PS20-03 Truck Loading Bay Odor Control Improvements Study at Plant No. 2
160,469
160,469
PS20-04 Power Generation Overhaul Feasibility Study
0
PS20-05 Cen Gen Pressure Vessel Integrity Assessment at Plant Nos. land 2
233,863
233,863
PS20-07 College Pump Station Wet Well Condition Assessment Study
67,425
67,425
PS20-08 Euclid Trunk Sewer Hydraulic Modeling and Odor Control Analyses
205,952
205,952
PS20-09 Thickening & Dewatering Plant Water Study at Plant No. 1
258,320
70,192
328,512
PS21-01 Exterior Lighting Study at Plant Nos. 1 and 2
301,867
221,877
523,744
PS21-02 Public Announcement and Fire System at Plant Nos. 1 and 2
307,605
151,009
458,614
PS21-03 Process Model for Denitrification Alternatives at Activated Sludge 1
9,698
9,698
PS21-04 Energy and Digester Gas Master Plan
782,721
285,741
1,068,462
PS21-05 CAD Design Manual Update for 3D Design
468,372
210,392
678,764
PS21-06 Regional Urban Runoff Optimization Study
117,587
673,604
177,140
968,331
RE19-01 Primary Scum Equipment Evaluation at Plant No. 1
15,405
15,405
RE20-01 Co -Thickened Sludge Density Meter Trial atl Plant No. 1
1,931
1,931
RE20-02 Chemical Resilience Study at Plant No.l and 2
22,396
22,396
RE20-04 Holding Digester 6 Solids Shredder Study at Plant No. 1
17,649
17,649
RE20-06 Co -Thickened Sludge Pump Trial at Plant No. 1
15,000
15,000
RE21-01 Supercritical Water Oxidation Demonstration at Plant No. 1
5,690,537
1,182,571
6,873,108
SC18-05 Pl Laboratory HVAC Boiler Burner Replacement At Plant No.l
0
SC19-03 Return Activated Sludge Pump Station Elevator Rehabilitation at
Plant No. 2
189,949
173,044
362,993
SC19-06 EPSA Standby Power Generator Control Upgrades at Plant No. 2
141,326
440,448
2,007,955 474,025 364,093
3,427,847
SC20-02 Ocean Outfall Booster Station Elevator Rehabilitation
299,953
77,076
4,790
381,819
SP-100 EAM Software and Process Implementation
383,372
383,372
389,506 1,388,238
2,544,488
SP-195 Capital Improvement Program Management Services
324,865
324,865
X-006 Waste Si estream Pump Station Rehabilitation at Plant No. 1
1,010,181 1,877,528 11,669,291 2,730,000
17,287,000
X-007 Waste Sidestream Pump Station 2A Upgrade at Plant No. 2
202,213 479,790 522,463 3,328,711
3,626,823 1,530,000 9,690,000
X-014 Trickling Filter Solids Contact Basins Odor Control at Plant No. 2
117,817 117,817
X-015 Trickling Filters Rehabilitation at Plant No. 1
326,129 1,311,545 4,179,121 5,816,795
X-017 Primary Sedimentation Basins No. 6-31 Rehabilitation at Plant No. 1
0
X-018 Activated Sludge - 2 Rehabilitation at Plant No. 1
0
X-022 15th Street Pump Station and Force Main Rehabilitation
0
X-023 Lido Pump Station Rehabilitation
228,325 557,934
557,934 795,655 7,707,443 9,847,291
X-024 Rocky Point Pump Station Rehabilitation
82,553 82,553
10/29/2022 24Drraft57 OC San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 3 -Capital Plan
Page 6 of 7
vrolecc ana name I FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 i 01ai
X-025 Bitter Point Pump Station Rehabilitation
X-030 Headworks Rehabilitation at Plant 2
X-031 Trickling Filter Solids Contact Facility Rehabilitation at Plant No. 2
X-036 City Water Pump Station Rehabilitation at Plant No. 2
X-037 Plant Water Pump Station and 12 KV Distribution Center A Demolition
at Plant No. 2
X-038 City Water Pump Station Rehabilitation at Plant No. 1
X-039 Plant Water Pump Station Rehabilitation at Plant No. 1
X-040 College Pump Station Replacement and Force Main Rehabilitation
X-041 A Street Pump Station and Force Main Rehabilitation
X-044 Steve Anderson Lift Station Rehabilitation
X-052 Activated Sludge RAS/WAS/PEPS/Vaporizers Rehabilitation at Plant No.
2
X-059 Plantwide Miscellaneous Tunnels Rehabilitation
X-061 Imperial Relief Interceptor/ Miller Holder Trunk Rehabilitation
X-065 Tustin -Orange Interceptor Rehabilitation
X-066 Tustin -Orange Interceptor/ Orange Park Acres Trunk Rehabilitation
X-068 North Trunk - Panorama Heights -Tustin-Orange Rehabilitation
X-071 Bolsa Chica / Edinger/ Springdale Trunk Sewer Rehabilitation
X-078 AirJumpers Additions/Rehabilitations
X-084 Tustin Avenue Sewer Improvements
X-085 Hoover -Western Sub -Trunk and Lampson Branch Improvements
X-086 Santa Ana River Interceptor Improvements
X-095 Southern California Edison Substation and Service Center Replacement
at Plant 2
X-096 Bushard Diversion Structure Improvements
X-098 Effluent Pump Station Annex Rehabilitation
X-100 Flood Wall along Brookhurst Street
X-102 Wastehauler Facility Improvements
X-104 Central Generation Facilities and Power Bldg. 2 Seismic Upgrades
X-105 OOBS Seismic Improvements at Plant No. 2
X-107 DAFTs Seismic Improvements at Plant No. 2
X-108 Lateral Spreading Mitigation at Plant No. 2
X-109 Lateral Spreading Mitigation at Plant No. 1
X-110 Solids Processing Facilities Seismic Improvements at Plant No. 1
X-112 Southwest Corner Stormwater Drainage Modifications at Plant No. 1
X-114 Activated Sludge Facility Replacement at Plant No. 2
X-115 Short Outfall Rehabilitation at Plant No. 2
365,469
365,469
898,266
4,377,482
5,275,748
0
403,977
702,489
697,126
1,848,279
5,662,081
4,126,047
13,439,999
55,825
193,680
228,430
764,786
1,590,796
675,483
3,509,000
63,354
330,948
472,981
472,981
2,094,588
3,856,884
7,291,736
455,209
690,935
771,202
5,666,957
2,976,696
10,560,999
48,532
303,036
535,298
537,349
1,424,215
0
0
187,007
1,352,431
2,053,294
2,037,620
5,283,956
11,388,788
11,432,424
33,735,520
18,047
214,102
660,967
889,501
889,501
10,334,552
16,344,044
29,350,714
0
0
110,431
265,180
279,392
280,462
935,465
60,432 267,526
383,911
385,382
1,403,775
3,317,707
2,155,267
1,650,000
9,624,000
256,263 587,505
590,399
592,661
2,393,659
4,699,126
4,655,664
3,197,723
16,973,000
63,413
541,957
1,110,332
1,164,330
10,935,620
13,815,652
16,791
54,833
70,082
70,350
212,056
140,679
792,474
1,050,816
3,427,407
9,199,982
9,235,231
23,846,589
0
459,116
1,383,695
1,695,230
1,903,759
5,441,800
111,185
269,484
271,572
1,560,959
1,626,852
803,535
78,412
4,721,999
105,558
909,288
1,732,098
1,738,734
4,485,678
489,621
1,743,266
1,754,664
1,761,386
5,748,937
12,600
70,594
85,657
1,135,511
1,304,362
291,087 953,319
1,025,700
1,152,150
6,663,256
6,663,256
6,335,233
5,130,000
28,214,001
257,186 841,445
905,302
1,093,830
8,825,891
8,459,345
4,530,000
24,912,999
389,911
389,911
0
0
34,832
141,349
240,022
240,941
657,144
27,873
93,658
99,521
634,779
855,831
0
125,076
919,360
1,550,002
1,555,963
1,561,925
5,712,326
10/29/2022 255
Draft57 OO San
Orange County Sanitation District
Page 7 of 7
Cost of Service Rate Study
Revenue Requirement
Exhibit 3 - Capital Plan
Project and Name
FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
FY 2025-26
FY 2026-27
FY 2027-28
FY 2028-29
FY 2029-30
FY 2030-31
FY 2031-32
Total
X-116 Outfall Land Section Rehabilitation at Plant No. 2
0
X-118 84-inch Interplant Pipeline Rehabilitation at Plant 1
0
X-119 Thickening, Dewatering and Truck Loadout Rehabilitation at Plant 1
0
X-120 Digester Rehabiliation/Replacement at Plant 1
0
X-121 Lido Pump Station Replacement
0
X-122 MacArthur Pump Station Replacement Project
0
X-124 Electric Vehicle Fleet Services Building
242,986
511,167
534,362
530,283
2,826,877
5,197,000
2,638,324
12,480,999
X-125 66-inch Interplant Pipeline Rehabilitation at Plant 1
83,905
359,560
514,587
4,793,650
449,916
639,382
6,841,000
X-126 Lake Ave and Atlanta Int Rehabilitation
24,772
339,881
564,047
564,047
4,943,684
2,522,570
8,959,001
X2-72 Continegncy Reserve for 2-72
10,000,000
10,000,000
X2-79 Fullerton -Brea Int and Rollings Hills or Subtrunk Rehabilitation
282,781
587,581
596,101
1,756,180
4,177,468
3,799,889
1,856,017
243,983
13,300,000
XP2-130 Food Waste Receiving Facility at Plant No. 2
0
XP2-131 Digester I,1, and K Replacement at Plant No. 2
277,729
1,196,447
2,179,777
2,188,160
2,937,725
8,779,838
XP2-132 Digester Demolition at Plant No. 2
0
Actual
203,320,511
203,320,511
0
Total
1$203,320,511 $284,617,363 $339,320,433 $314,119,320
$327,669,835
$341,596,649
$340,375,184
$394,464,743
$372,701,187
$344,553,245
$354,767,515 $3,617,505,985
Capital Projects
$0 $284,617,363 $329,320,433 $311,961,390
$321,793,493
$322,826,459
$324,753,539
$353,913,646
$308,176,430
$251,753,302
$249,061,975 $3,058,178,030
Renewal and Replacement Projects
203,320,511 0 10,000,000 2,157,930
5,876,342
18,770,190
15,621,645
40,551,097
64,524,757
92,799,943
105,705,540
559,327,955
$203,320,511 $284,617,363 $339,320,433 $314,119,320
$327,669,835
$341,596,649
$340,375,184
$394,464,743
$372,701,187
$344,553,245
$354,767,515 $3,617,505,985
10/29/2022 26Drraft57 OC San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 4 - Existing Debt
Page 1 of 4
Total Principal and Interest
2010A Build
2010C Build
2011A
2012A
2012E
2014A
2015A
2016A
2017A
2018A
2021A
2022A
America
America
Refunding
Refunding
Refunding
Refunding
Refunding
Refunding
Fiscal Year
Bonds
Bonds
of
(Partial
(Partial
(Remain
(Partial 2011A
(2012A and
Total Interest
Acq./Const.
Acq./Const.
(Partial 2009A)
Payments
20076)
20076)
2007A)
and 2018A)
Partial 2012B)
per Fiscal Year
FY 2021-22
$2,984,334
$6,724,010
$2,019,050
$3,735,900
$8,446,150
$11,049,000
$6,375,500
$11,389,800
$3,290,750
$2,356,278
$8,844,836
$0
$67,215,608
FY 2022-23
2,986,574
6,724,010
0
0
0
11,046,750
6,375,500
11,391,550
3,290,750
0
22,672,000
4,081,000
68,568,134
FY 2023-24
2,986,574
6,724,010
0
0
0
11,044,000
6,375,500
11,396,050
3,290,750
0
22,713,500
4,081,000
68,611,384
FY 2024-25
2,986,574
6,724,010
0
0
0
11,049,750
6,375,500
11,392,550
3,290,750
0
22,672,250
4,081,000
68,572,384
FY 2025-26
2,986,574
6,724,010
0
0
0
11,052,500
6,375,500
11,390,800
3,290,750
0
22,725,250
4,081,000
68,626,384
FY 2026-27
2,986,574
6,724,010
0
0
0
11,051,250
6,375,500
11,390,050
18,405,750
0
7,485,750
4,081,000
68,499,884
FY 2027-28
2,986,574
6,724,010
0
0
0
0
21,615,500
11,394,550
18,365,000
0
7,486,000
4,081,000
72,652,634
FY 2028-29
2,986,574
6,724,010
0
0
0
0
21,658,500
11,388,300
18,323,500
0
7,489,750
4,081,000
72,651,634
FY 2029-30
2,986,574
6,724,010
0
0
0
0
20,776,250
11,391,050
19,204,500
0
7,486,250
4,081,000
72,649,634
FY 2030-31
2,986,574
12,459,010
0
0
0
0
10,228,000
11,411,550
0
0
7,490,250
26,566,000
71,141,384
FY 2031-32
2,986,574
23,382,068
0
0
0
0
3,702,250
11,413,050
0
0
7,485,750
25,761,750
74,731,442
FY 2032-33
2,986,574
23,476,472
0
0
0
0
3,702,250
11,415,550
0
0
7,487,500
38,146,500
87,214,846
FY 2033-34
12,576,574
13,967,040
0
0
0
0
20,882,250
11,408,050
0
0
7,489,500
0
66,323,414
FY2034-35
12,696,056
13,897,232
0
0
0
0
20,883,250
11,415,050
0
0
7,486,000
0
66,377,588
FY 2035-36
12,919,416
13,834,528
0
0
0
0
20,881,250
11,409,800
0
0
7,486,500
0
66,531,494
FY2036-37
13,151,453
13,758,096
0
0
0
0
20,879,250
11,411,800
0
0
0
0
59,200,599
FY 2037-38
13,399,607
13,667,936
0
0
0
0
0
11,411,000
0
0
0
0
38,478,543
FY2038-39
13,658,823
13,574,048
0
0
0
0
0
11,414,000
0
0
0
0
38,646,871
FY 2039-40
13,937,832
13,481,016
0
0
0
0
0
0
0
0
0
0
27,418,848
FY 2040-41
0
22,698,216
0
0
0
0
0
0
0
0
0
0
22,698,216
FY 2041-42
0
13,457,728
0
0
0
0
0
0
0
0
0
0
13,457,728
FY 2042-43
0
10,305,640
0
0
0
0
0
0
0
0
0
0
10,305,640
FY 2043-44
0
2,583,168
0
0
0
0
0
0
0
0
0
0
2,583,168
Totals $128,176,409 $265,058,288 $2,019,050 $3,735,900
$8,446,150 $66,293,250 $203,461,750 $205,234,550 $90,752,500 $2,356,278 $174,501,086 $123,122,250 1 $1,273,157,461
10/29/2022 Draft OC San
27 of 57
Orange County Sanitation District
Page 2 of 4
Cost of Service Rate Study
Revenue Requirement
Exhibit 4 - Existing
Debt
Interest
2010A Build
2010C Build 2011A 2012A
2012E 2014A
2015A
2016A
2017A
2018A 2021A
2022A
America
America
Refunding
Refunding
Refunding
Refunding
Refunding
Refunding
Fiscal Year
Bonds
Bonds
of
(Partial
(Partial
(Remain
(Partial 2011A
(2012A and
Total Interest
Payments
Acq./Const.
Acq./Const.
2007B)
2007B)
(Partial 2009A)
2007A)
and 2018A)
Partial 2012B)
per Fiscal Year
FY 2021-22
$2,984,334
$6,724,010 $2,019,050 $3,735,900
$276,150 $2,804,000
$6,375,500
$6,524,800
$3,290,750
$2,356,278 $3,374,836
$0
$40,465,608
FY2022-23
2,986,574
6,724,010
2,391,750
6,375,500
6,281,550
3,290,750
6,402,000
4,081,000
38,533,134
FY 2023-24
2,986,574
6,724,010
1,959,000
6,375,500
6,026,050
3,290,750
5,588,500
4,081,000
37,031,384
FY 2024-25
2,986,574
6,724,010
1,504,750
6,375,500
5,757,550
3,290,750
4,732,250
4,081,000
35,452,384
FY 2025-26
2,986,574
6,724,010
1,027,500
6,375,500
5,475,800
3,290,750
3,835,250
4,081,000
33,796,384
FY 2026-27
2,986,574
6,724,010
526,250
6,375,500
5,180,050
3,290,750
2,890,750
4,081,000
32,054,884
FY2027-28
2,986,574
6,724,010
0
6,375,500
4,869,550
2,535,000
2,661,000
4,081,000
30,232,634
FY2028-29
2,986,574
6,724,010
0
5,613,500
4,543,300
1,743,500
2,419,750
4,081,000
28,111,634
FY2029-30
2,986,574
6,724,010
0
4,811,250
4,201,050
914,500
2,166,250
4,081,000
25,884,634
FY 2030-31
2,986,574
6,724,010
0
4,013,000
3,841,550
0
1,900,250
4,081,000
23,546,384
FY 2031-32
2,986,574
6,287,068
0
3,702,250
3,463,050
0
1,620,750
2,956,750
21,016,442
FY2032-33
2,986,574
5,581,472
0
3,702,250
3,065,550
0
1,327,500
1,816,500
18,479,846
FY 2033-34
2,986,574
4,837,040
0
3,702,250
2,648,050
0
1,019,500
0
15,193,414
FY2034-35
2,551,056
4,457,232
0
2,843,250
2,210,050
0
696,000
0
12,757,588
FY2035-36
2,184,416
4,064,528
0
1,941,250
1,749,800
0
356,500
0
10,296,494
FY2036-37
1,796,453
3,658,096
0
994,250
1,266,800
0
0
0
7,715,599
FY2037-38
1,384,607
3,237,936
0
0
861,000
0
0
0
5,483,543
FY2038-39
948,823
2,804,048
0
0
439,000
0
0
0
4,191,871
FY 2039-40
487,832
2,356,016
0
0
0
0
0
0
2,843,848
FY 2040-41
0
1,893,216
0
0
0
0
0
0
1,893,216
FY 2041-42
0
1,027,728
0
0
0
0
0
0
1,027,728
FY 2042-43
0
510,640
0
0
0
0
0
0
510,640
FY 2043-44
0
103,168
0
0
0
0
0
0
103,168
Totals $48,176,409 $108,058,288 $2,019,050 $3,735,900
$276,150 $10,213,250 $75,951,750 $68,404,550 $24,937,500 $2,356,278 $40,991,086 $41,502,250 1 $426,622,461
10/29/2022 Draft OC San
28 of 57
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 4 - Existing Debt
Principal
Page 3 of 4
2010A Build
2010C Build 2011A
2012A 2012E 2014A
2015A
2016A
2017A
2018A 2021A
2022A
America
America
Refunding
Refunding
Refunding
Refunding
Refunding
Refunding
Fiscal Year
Bonds
Bonds
of
(Partial
(Partial
(Remain
(Partial 2011A
(2012A and
Total Interest
Acq./Const.
Acq./Const.
(Partial 2009A)
Payments
20076)
20076)
2007A)
and 2018A)
Partial 2012B)
per Fiscal Year
FY 2021-22
$0
$0
$8,170,000 $8,245,000
$0
$4,865,000
$0
$5,470,000
$0
$26,750,000
FY 2022-23
0
0
8,655,000
0
5,110,000
0
16,270,000
0
$30,035,000
FY 2023-24
0
0
9,085,000
0
5,370,000
0
17,125,000
0
31,580,000
FY 2024-25
0
0
9,545,000
0
5,635,000
0
17,940,000
0
33,120,000
FY 2025-26
0
0
10,025,000
0
5,915,000
0
18,890,000
0
34,830,000
FY 2026-27
0
0
10,525,000
0
6,210,000
15,115,000
4,595,000
0
36,445,000
FY 2027-28
0
0
0
15,240,000
6,525,000
15,830,000
4,825,000
0
42,420,000
FY 2028-29
0
0
0
16,045,000
6,845,000
16,580,000
5,070,000
0
44,540,000
FY 2029-30
0
0
0
15,965,000
7,190,000
18,290,000
5,320,000
0
46,765,000
FY 2030-31
0
5,735,000
0
6,215,000
7,570,000
0
5,590,000
22,485,000
47,595,000
FY 2031-32
0
17,095,000
0
0
7,950,000
0
5,865,000
22,805,000
53,715,000
FY2032-33
0
17,895,000
0
0
8,350,000
0
6,160,000
36,330,000
68,735,000
FY 2033-34
9,590,000
9,130,000
0
17,180,000
8,760,000
0
6,470,000
0
51,130,000
FY2034-35
10,145,000
9,440,000
0
18,040,000
9,205,000
0
6,790,000
0
53,620,000
FY 2035-36
10,735,000
9,770,000
0
18,940,000
9,660,000
0
7,130,000
0
56,235,000
FY2036-37
11,355,000
10,100,000
0
19,885,000
10,145,000
0
0
0
51,485,000
FY 2037-38
12,015,000
10,430,000
0
0
10,550,000
0
0
0
32,995,000
FY 2038-39
12,710,000
10,770,000
0
0
10,975,000
0
0
0
34,455,000
FY 2039-40
13,450,000
11,125,000
0
0
0
0
0
0
24,575,000
FY 2040-41
0
20,805,000
0
0
0
0
0
0
20,805,000
FY 2041-42
0
12,430,000
0
0
0
0
0
0
12,430,000
FY 2042-43
0
9,795,000
0
0
0
0
0
0
9,795,000
FY 2043-44
0
2,480,000
0
0
0
0
0
0
2,480,000
Totals
$80,000,000 $157,000,000
$56,080,000
$127,510,000
$136,830,000 $65,815,000
$133,510,000
$81,620,000
$846,535,000
10/29/2022 Draft OC San
29 of 57
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 4 - Existing Debt
Page 4 of 4
Principal Balance
2010A Build
2010C Build
2011A
2012A
2012E
2014A
2015A
2016A
2017A
2018A
2021A
2022A
America
America
Refunding
Refunding
Refunding
Refunding
Refunding
Refunding
Fiscal Year
Bonds
Bonds
of
(Partial
(Partial
(Remain
(Partial 2011A
(2012A and
Total Interest
Payments
Acq./Const.
Acq./Const.
2007B)
2007B)
(Partial 2009A)
2007A)
and 2018A)
Partial 2012B)
per Fiscal Year
FY2021-22
80,000,000
157,000,000
0
0
8,170,000
56,080,000
127,510,000
136,830,000
65,815,000
0
133,510,000
81,620,000
846,535,000
FY 2022-23
80,000,000
157,000,000
0
0
0
47,835,000
127,510,000
131,965,000
65,815,000
0
128,040,000
81,620,000
819,785,000
FY 2023-24
80,000,000
157,000,000
0
0
0
39,180,000
127,510,000
126,855,000
65,815,000
0
111,770,000
81,620,000
789,750,000
FY 2024-25
80,000,000
157,000,000
0
0
0
30,095,000
127,510,000
121,485,000
65,815,000
0
94,645,000
81,620,000
758,170,000
FY 2025-26
80,000,000
157,000,000
0
0
0
20,550,000
127,510,000
115,850,000
65,815,000
0
76,705,000
81,620,000
725,050,000
FY 2026-27
80,000,000
157,000,000
0
0
0
10,525,000
127,510,000
109,935,000
65,815,000
0
57,815,000
81,620,000
690,220,000
FY 2027-28
80,000,000
157,000,000
0
0
0
0
127,510,000
103,725,000
50,700,000
0
53,220,000
81,620,000
653,775,000
FY 2028-29
80,000,000
157,000,000
0
0
0
0
112,270,000
97,200,000
34,870,000
0
48,395,000
81,620,000
611,355,000
FY 2029-30
80,000,000
157,000,000
0
0
0
0
96,225,000
90,355,000
18,290,000
0
43,325,000
81,620,000
566,815,000
FY 2030-31
80,000,000
157,000,000
0
0
0
0
80,260,000
83,165,000
0
0
38,005,000
81,620,000
520,050,000
FY 2031-32
80,000,000
151,265,000
0
0
0
0
74,045,000
75,595,000
0
0
32,415,000
59,135,000
472,455,000
FY 2032-33
80,000,000
134,170,000
0
0
0
0
74,045,000
67,645,000
0
0
26,550,000
36,330,000
418,740,000
FY 2033-34
80,000,000
116,275,000
0
0
0
0
74,045,000
59,295,000
0
0
20,390,000
0
350,005,000
FY 2034-35
70,410,000
107,145,000
0
0
0
0
56,865,000
50,535,000
0
0
13,920,000
0
298,875,000
FY 2035-36
60,265,000
97,705,000
0
0
0
0
38,825,000
41,330,000
0
0
7,130,000
0
245,255,000
FY 2036-37
49,530,000
87,935,000
0
0
0
0
19,885,000
31,670,000
0
0
0
0
189,020,000
FY 2037-38
38,175,000
77,835,000
0
0
0
0
0
21,525,000
0
0
0
0
137,535,000
FY 2038-39
26,160,000
67,405,000
0
0
0
0
0
10,975,000
0
0
0
0
104,540,000
FY 2039-40
13,450,000
56,635,000
0
0
0
0
0
0
0
0
0
0
70,085,000
FY 2040-41
0
45,510,000
0
0
0
0
0
0
0
0
0
0
45,510,000
FY 2041-42
0
24,705,000
0
0
0
0
0
0
0
0
0
0
24,705,000
FY 2042-43
0
12,275,000
0
0
0
0
0
0
0
0
0
0
12,275,000
FY 2043-44
0
2,480,000
0
0
0
0
0
0
0
0
0
0
2,480,000
10/29/2022 Draft OC San
30 of 57
Orange County Sanitation District
Page 1 of 4
Cost of Service Rate Study
Revenue Requirement
Exhibit 5 - EDU Definitions
factor per sgft
Concentrations
Ibs/Year
APNs (Parcels)
EDUs
% Rate
Revenue
BOD, mgl
SS, mgl
Flow, gpd
BOD I
TSS
Gal per Year
000-CONVERSION-C/I, RURAL PC LIEN DATE
12
9
100.00%
3,144
238
327
175
1,163
1,598
585,479
001- VACANT LAND PARCEL
6,275
0
0.00%
0
0
0
0
0
0
0
002-ONE RESIDENCE
451,281
451,297
100.00%
154,794,891
238
327
175
57,255,572.55
78,666,270
28,826,599,599
003 - TWO OR MORE RESIDENCES
8,615
13,257
70.00%
4,547,185
238
327
122
1,172,534.35
1,611,003
590,338,663
004- MISCELLANEOUS IMPROVEMENTSONLY
1,508
239
100.00%
82,088
238
327
122
21,167.28
29,083
10,657,142
005 - COMMON AREA PARCEL
865
0
0.00%
0
0
0
0
-
0
0
006 - "HOLD" PARCEL
254
0
0.00%
0
0
0
0
-
0
0
007-MOBILEHOME
19,552
126
50.00%
43,218
238
327
88
8,038.42
11,044
4,047,120
008 - EQUIVALENT TO VACANT
91
0
0.00%
0
0
0
0
-
0
0
010-DUPLEX ONLY
5,851
8,219
70.00%
2,819,117
238
327
122
726,935.74
998,773
365,992,070
011-TRIPLEX ONLY
2,333
4,881
70.00%
1,674,269
238
327
122
431,725.89
593,170
217,362,063
012-04-UNITS ONLY
6,987
19,502
70.00%
6,689,203
238
327
122
1,724,873.73
2,369,890
868,426,287
013-APARTMENTS ONLY
4,436
26,317
70.00%
9,026,794
238
327
122
2,327,643.40
3,198,065
1,171,904,171
014- 17-25 UNITS ONLY
604
8,664
70.00%
2,971,786
238
327
122
766,302.95
1,052,862
385,812,373
015 - 26-40 UNITS ONLY
386
8,632
70.00%
2,960,776
238
327
122
763,463.84
1,048,961
384,382,960
016 - 41-99 UNITS ONLY
628
26,889
70.00%
9,222,824
238
327
122
2,378,191.63
3,267,515
1,197,353,811
017 - 100 OR MORE UNITS
502
63,024
70.00%
21,617,232
238
327
122
5,574,205.88
7,658,678
2,806,458,720
018 - DEVELOPED WITH A MIX OF FORM TYPES
647
5,080
70.00%
1,742,457
238
327
122
449,308.85
617,328
226,214,597
019 -SF WITH 1 OR 2 RENTAL UNITS
50
95
85.00%
32,465
238
327
122
8,371.39
11,502
4,214,765
020-AMUSEMENT PARKS
35
5,345
144.00%
1,833,229
247
358
239
961,075.71
1,392,976
466,244,004
021-AUTOMOBILE DEALERSHIP
187
1,467
41.00%
503,054
248
366
68
75,339.21
111,186
36,401,725
022-AUTO REPAIR SHOP
594
1,245
41.00%
427,114
248
366
68
63,966.19
94,402
30,906,614
023 - AUTOMOTIVE SERVICE
442
1,074
41.00%
368,514
248
366
68
55,190.03
81,450
26,666,227
024 - USED CAR LOT
130
130
41.00%
44,555
248
366
68
6,672.66
9,848
3,224,034
026-AIRPORT AND RELATED BUILDINGS
145
456
53.00%
156,358
265
314
97
35,693.01
42,293
16,139,495
028 - BOWLING ALLEYS
7
227
112.00%
77,750
676
582
103
48,076.09
41,391
8,521,873
029 - CONVENTIONAL CAR WASH
76
1,054
796.00%
361,617
20
199
2712
174,186.76
1,733,158
1,043,608,868
030 - COIN OPERATED CAR WASH
54
162
151.00%
55,414
20
199
479
4,714.46
46,909
28,245,853
032-CEMETERY AND RELATED BUILDINGS
63
205
101.00%
70,343
766
1063
68
32,539.05
45,155
5,090,128
033-CHURCH BUILDINGS
835
2,816
20.00%
965,915
242
349
35
72,655.49
104,780
35,975,403
034-DORMITORY
16
617
97.00%
211,702
254
328
173
82,613.63
106,682
38,973,608
035 - ENTERTAINMENT CENTER
23
474
144.00%
162,668
247
358
239
85,278.99
123,603
41,371,163
10/29/2022 3 Drraft� OC San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 5 - EDU Definitions
036- FINANCIAL BUILDINGS
037- FRATERNAL BUILDINGS
038- FUNERAL HOME
039 - GOLF COURSE
040 - HEALTH CLUB
042 - HOSPITAL
043 - HIGH DEMAND HOTEL/MOTEL
044- LUMBER/CONST. MATERIALSYARD
045 - MARINAS
047 - SUPERMARKET
048 -CONVENIENCE MARKET
050 - SINGLE MEDICAL BLDGS TO 3 STORIES
051- SMALL MEDICAL CENTER
052 - MEDICAL CENTER COMPLEX
053 - HIGH RISE MEDICAL
054 - CONVERTED RESIDENCE TO IVIED OFFICE
055-MOBILEHOME PARK
056- LOW DEMAND HOTEL/MOTEL
057 - MOTORCYCLE/SMALL VEHICLEBLDGS
058 - NURSERIES
060 - NURSING HOME
061- CONVALESCENT HOSPITALS
062 -CONVERTED RES USED ASNURSING HOME
063 - LOW RISE RETIREMENT BUILDING(S)
064- HIGH RISE RETIREMENT BUILDING(S)
065 - SINGLE OFFICE BLDGS TO 3STORIES
066 - SMALL OFFICE CENTER
067-OFFICE COMPLEX
068 - HIGH RISE OFFICE
069 - CONVERTED RESIDENCE TOOFFICE
071 - PARKING GARAGE
072 - PAVED PARKING LOT
073 - RECREATION
Page 2 of 4
factor per sgft
APNs (Parcels)
EDUs
% Rate
Revenue
Concentrations
BOD, mgl SS, mgl
Flow, gpd
Ibs/Year
BOD
I
TSS
Gal per Year
237
564
27.00%
193,396
248
366
68
28,963.76
42,745
13,994,453
73
368
51.00%
126,342
249
349
86
24,026.53
33,676
11,562,304
16
119
101.00%
40,937
766
1063
68
18,936.48
26,279
2,962,260
234
349
41.00%
119,620
248
366
68
17,914.68
26,439
8,655,857
51
306
29.00%
104,913
174
273
59
9,564.78
15,007
6,586,859
45
3,826
97.00%
1,312,215
238
327
175
485,362.37
666,863
244,366,550
77
8,305
97.00%
2,848,710
174
273
195
858,377.20
1,346,764
591,128,009
29
54
17.00%
18,677
238
327
31
1,223.74
1,681
616,118
101
34
53.00%
11,586
265
314
97
2,644.79
3,134
1,195,908
116
4,467
151.00%
1,532,293
768
1057
103
1,076,431.78
1,481,495
167,949,185
140
581
151.00%
199,444
248
366
68
29,869.49
44,082
14,432,075
961
5,504
124.00%
1,888,028
248
360
205
852,432.61
1,237,402
411,870,781
28
429
124.00%
147,155
248
360
205
66,439.64
96,445
32,101,714
29
1,413
124.00%
484,707
248
360
205
218,842.34
317,674
105,738,288
58
2,284
124.00%
783,384
248
360
205
353,693.12
513,426
170,894,288
32
72
124.00%
24,589
248
360
205
11,101.79
16,116
5,364,065
328
12,200
50.00%
4,184,429
254
328
90
849,490.47
1,096,980
400,753,575
354
12,184
70.00%
4,179,073
174
273
195
1,259,244.30
1,975,711
867,188,194
11
23
41.00%
7,954
248
366
68
1,191.23
1,758
575,567
31
26
10.00%
8,918
256
390
16
324.39
494
151,840
48
1,488
102.00%
510,434
249
355
179
202,040.15
288,049
97,227,909
65
1,916
102.00%
657,289
249
355
171
248,540.95
354,346
119,605,519
19
81
102.00%
27,658
249
355
179
10,947.68
15,608
5,268,359
41
1,544
70.00%
529,610
174
273
195
159,582.88
250,380
109,897,970
29
766
70.00%
262,681
174
273
195
79,151.30
124,186
54,508,149
3,507
16,473
41.00%
5,650,085
248
357
69
858,621.71
1,236,000
414,861,175
152
1,522
41.00%
522,199
248
357
69
79,356.59
114,235
38,342,807
70
937
41.00%
321,378
248
357
69
48,838.55
70,304
23,597,377
191
6,226
30.00%
2,135,504
248
357
69
324,524.37
467,158
156,800,789
309
327
41.00%
112,275
248
357
69
17,061.96
24,561
8,243,846
66
56
17.00%
19,208
254
328
31
1,343.14
1,734
633,639
876
5
17.00%
1,784
254
328
31
124.73
161
58,840
44
552
143.00%
189,492
247
358
239
99,341.56
143,985
48,193,296
10/29/2022 3Drraft7 OC San
Orange County Sanitation District
Page 3 of 4
Cost of Service Rate Study
Revenue Requirement
Exhibit 5 - EDU Definitions
factor per sgft
Concentrations
Ibs/Year
APNs (Parcels)
EDUs
% Rate
Revenue
BOD, mgl
SS, mgl
Flow, gpd
BOD I
TSS
Gal per Year
074 - RECREATION VEHICLE PARK
8
1
27.00%
343
356
403
38
41.21
47
13,870
076- RESTAURANT -LOW DEMAND
543
5,341
300.00%
1,831,846
553
402
331
2,977,749.48
2,164,657
645,231,612
077- RESTAURANT -COFFEE SHOP
397
6,557
600.00%
2,249,163
553
402
662
7,312,237.31
5,315,587
1,584,447,148
078- RESTAURANT -DINNER HOUSE
206
6,078
600.00%
2,084,639
553
402
662
6,777,352.77
4,926,756
1,468,546,057
079 - RESTAURANT - CONVERSION FROM SFR
5
47
600.00%
16,188
553
402
662
52,629.42
38,259
11,403,971
081 - PRE-SCHOOLS, NURSERY ORCHILDCARE
148
642
82.00%
220,151
254
328
138
68,529.77
88,495
32,329,440
082 - PRIVATE SCHOOLS
145
4,486
82.00%
1,538,764
254
328
138
478,995.11
618,545
225,969,580
083 - AUTOMOTIVE SERVICE STATION
244
257
41.00%
88,218
248
366
68
13,211.84
19,498
6,383,580
084 - MARINE SERVICE STATION
1
1
41.00%
343
248
366
68
51.37
76
24,820
085-COMBIN:SERVICESTATION/RESTAURANT
4
44
100.00%
15,009
248
366
68
2,247.80
3,317
1,086,073
086-COMBIN:SERVICESTATION/CONVENIENCE
229
231
41.00%
79,225
248
366
68
11,865.07
17,511
5,732,856
088 - LOW DEMAND CENTER
770
7,834
53.00%
2,686,982
577
529
55
757,267.72
694,271
157,262,887
089- AVERAGE DEMAND CENTER
677
21,669
139.00%
7,432,460
577
529
138
5,255,736.81
4,818,518
1,091,466,490
090-HIGH FLOW CENTER
1,063
32,423
226.00%
11,121,253
577
529
224
12,765,083.87
11,703,170
2,650,943,491
092-SKATING RINKS
5
212
112.00%
72,754
676
582
103
44,986.84
38,731
7,974,279
094- DEPARTMENT STORE
41
1,048
23.00%
359,378
248
366
38
30,076.85
44,388
14,532,263
095 - DISCOUNT STORE
72
1,019
23.00%
349,570
248
366
38
29,256.07
43,176
14,135,686
096- UNATTACHED SINGLE STORE
1,144
2,344
23.00%
803,959
248
366
38
67,284.53
99,299
32,509,938
097-STRIP STORE
243
494
23.00%
169,460
248
366
38
14,182.39
20,930
6,852,520
098-STORE WITH OFFICES OR LIVING UNITS
750
2,316
82.00%
794,391
254
328
138
247,282.34
319,325
116,657,322
099 - STORE WITH OFFICES UPSTAIRS
44
305
82.00%
104,533
254
328
138
32,539.73
42,020
15,350,863
100- DRIVE-IN THEATER
10.00%
256
390
16
-
0
0
101- UNATTACHED THEATER
27
278
51.00%
95,367
249
349
86
18,135.94
25,419
8,727,568
103- CHEMICAL TANK AND BULKSTORAGE
1
1
100.00%
494
238
327
175
182.69
251
91,980
104 - FOOD PROCESSING PLANT
26
1,630
100.00%
559,226
238
327
175
206,846.60
284,197
104,141,549
105 - COLD STORAGE PLANT
7
259
100.00%
88,989
238
327
175
32,915.39
45,224
16,571,989
106 - FACTORY
31
760
100.00%
260,631
238
327
175
96,402.24
132,452
48,535,866
107- LIGHT INDUSTRIAL -SINGLETENANT
1,664
16,676
50.00%
5,719,715
238
327
52
628,638.28
863,717
316,502,012
108- LIGHT INDUSTRIAL- MULTI TENANT
690
6,475
50.00%
2,220,801
238
327
52
244,082.13
335,357
122,888,614
109 - RESEARCH AND DEVELOPMENT
28
552
50.00%
189,399
238
327
52
20,816.28
28,601
10,480,424
110 - WAREHOUSE - SINGLE TENANT
3,574
14,164
17.00%
4,858,336
530
572
17
388,739.33
419,545
87,889,142
111- WAREHOUSE - MULTI TENANT
1,804
5,380
17.00%
1,845,493
530
572
17
147,666.94
159,369
33,385,664
112-STEEL BUILDING
116
179
7.00%
61,507
530
572
7
2,026.48
2,187
458,162
10/29/2022 3Dr0aft7 OC San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 5 - EDU Definitions
113 - MINI -WAREHOUSE
114 - INDUSTRIAL PARK
115 - RECREATIONAL VEHICLE STORAGE YARD
116-TRUCK TERMINAL
118 - GOVERNMENTAL USEVACANT/DEVELOPED
119 - PUBLIC UTILITY
120 - WATER MUTUAL OR COMPANY
121 - PARCEL OF MINIMAL OR NO VALUE
122 - SUBSURFACE PARCELS
124 - OIL/MINERAL RIGHTS
125 - MINERAL RIGHTS EQUIPMENT
126 - VACANT COMMON AREA-IMPSALLOCATED
127 -
128 -
222 - OFFICE CONDO W/OUT INDIVIDUAL BATHROOMS
223 - LAUNDROMAT
224 - NIGHTCLUB
225 - UNITED STATES POST OFFICE
333 - IRVINE RANCH WATER DISTRICT
555 - OPEN AIR FACILITIES
666 - UNASSIGNED VACANT
777 - SEPTIC TANK
888 -CONVERSION -COMPOSITE PROPERTY
999 - Manually Calculated Fee
Total
Total per Day Ibs and Gallons
Total per mg and liter
Total per EDU ( mg/L, GPD)
Page 4 of 4
factor persgft
APNs (Parcels)
EDUs
% Rate
Revenue
Concentrations
BOD, mgl SS, mgl
Flow, gpd
Ibs/Year
BOD
TSS
Gal per Year
167
707
7.00%
242,358
530
572
7
7,985.06
8,618
1,805,323
703
7,295
50.00%
2,502,070
238
327
52
274,995.73
377,830
138,452,758
12
16
17.00%
5,322
530
572
17
425.85
460
96,280
20
280
17.00%
96,053
530
572
17
7,685.66
8,295
1,737,633
7,512
5,577
82.00%
1,913,026
248
357
137
577,217.14
830,913
278,894,626
50
53
100.00%
18,247
238
327
175
6,749.05
9,273
3,397,960
22
139
100.00%
47,525
238
327
175
17,578.45
24,152
8,850,265
1,251
0
0.00%
0
0
-
0
0
18
0
0.00%
0
0
0
0
9
0
0.00%
0
0
0
0
0
0
0
20
0
0.00%
0
0
0
0
0
0
0
260
270
3825
0
0
6
0
21.00%
0
-
0
0
1800.00%
59
667
200.00%
228,937
288
274
350
204,938.40
194,976
85,267,486
39
363
35.00%
124,572
405
354
-
0
0
6,489
0
0.00%
0
0
0
1
0
1133.00%
0
0
0
317
0
0.00%
0
0
0
0
1,832
0
0.00%
0
-
0
0
13
1
100.00%
343
206
219
253
158.76
169
92,345
1,514
31,803
100.00%
10,908,514
0
0
0
556,613
923,111
$316,627,199
123,424,683
151,870,431
52,333,583,290
338,150
416,083
143,379,680
55,984,494,456,898 68,887,268,582,863
198,104,162,676
283
348
143
10/29/2022 3 Drraft7 OC San
Orange County Sanitation District Page 1 of 5
Cost of Service Rate Study
Revenue Requirement
Exhibit 6 - Revenue at Present Rates
EDU Forecast
FY 2020-21
FY 2021-22
FY 2022-23
FY 2023-24
FY 2024-25
FY 2025-26
FY 2026-27
FY 2027-28
FY 2028-29
FY 2029-30
FY 2030-31
FY 2031-32
000 - CONVERSION-C/I, RURAL PC LIEN DATE
9
9
9
9
9
9
9
9
9
9
9
9
As General Users
001- VACANT LAND PARCEL
0
0
0
0
0
0
0
0
0
0
0
0
As General Users
002 - ONE RESIDENCE
451,297
451,297
451,599
452,954
454,313
455,676
457,043
458,414
459,790
461,169
462,552
463,940
As General Users
003 -TWO OR MORE RESIDENCES
13,257
13,257
13,266
13,306
13,346
13,386
13,426
13,466
13,507
13,547
13,588
13,628
As General Users
004- MISCELLANEOUS IMPROVEMENTSONLY
239
239
239
240
241
242
242
243
244
245
245
246
As General Users
005 - COMMON AREA PARCEL
0
0
0
0
0
0
0
0
0
0
0
0
As General Users
006 - "HOLD" PARCEL
0
0
0
0
0
0
0
0
0
0
0
0
As General Users
007-MOBILEHOME
126
126
126
126
127
127
128
128
128
129
129
130
As General Users
008 - EQUIVALENT TO VACANT
0
0
0
0
0
0
0
0
0
0
0
0
As General Users
010 - DUPLEX ONLY
8,219
8,219
8,225
8,249
8,274
8,299
8,324
8,349
8,374
8,399
8,424
8,449
As General Users
011 -TRIPLEX ONLY
4,881
4,881
4,885
4,899
4,914
4,929
4,943
4,958
4,973
4,988
5,003
5,018
As General Users
012 - 04-UNITS ONLY
19,502
19,502
19,515
19,574
19,632
19,691
19,750
19,810
19,869
19,929
19,988
20,048
As General Users
013-APARTMENTS ONLY
26,317
26,317
26,335
26,414
26,493
26,573
26,652
26,732
26,812
26,893
26,974
27,054
As General Users
014 - 17-25 UNITS ONLY
8,664
8,664
8,670
8,696
8,722
8,748
8,774
8,801
8,827
8,854
8,880
8,907
As General Users
015 - 26-40 UNITS ONLY
8,632
8,632
8,638
8,664
8,690
8,716
8,742
8,768
8,794
8,821
8,847
8,874
As General Users
016-41-99 UNITS ONLY
26,889
26,889
26,907
26,987
27,068
27,150
27,231
27,313
27,395
27,477
27,559
27,642
As General Users
017-100 OR MORE UNITS
63,024
63,024
63,066
63,255
63,445
63,636
63,826
64,018
64,210
64,403
64,596
64,790
As General Users
018 - DEVELOPED WITH A MIX OF FORM TYPES
5,080
5,080
5,083
5,099
5,114
5,129
5,145
5,160
5,176
5,191
5,207
5,222
As General Users
019 - SF WITH 1 OR 2 RENTAL UNITS
95
95
95
95
95
96
96
96
96
97
97
97
As General Users
020-AMUSEMENT PARKS
5,345
5,345
5,348
5,364
5,380
5,397
5,413
5,429
5,445
5,462
5,478
5,494
As General Users
021 - AUTOMOBILE DEALERSHIP
1,467
1,467
1,468
1,472
1,476
1,481
1,485
1,490
1,494
1,499
1,503
1,508
As General Users
022 - AUTO REPAIR SHOP
1,245
1,245
1,246
1,250
1,254
1,257
1,261
1,265
1,269
1,272
1,276
1,280
As General Users
023 - AUTOMOTIVE SERVICE
1,074
1,074
1,075
1,078
1,082
1,085
1,088
1,091
1,095
1,098
1,101
1,104
As General Users
024 - USED CAR LOT
130
130
130
130
131
131
132
132
132
133
133
134
As General Users
026- AIRPORT AND RELATED BUILDINGS
456
456
456
458
459
460
462
463
464
466
467
469
As General Users
028-BOWLING ALLEYS
227
227
227
228
228
229
230
230
231
232
232
233
As General Users
029 - CONVENTIONAL CAR WASH
1,054
1,054
1,055
1,058
1,061
1,065
1,068
1,071
1,074
1,077
1,081
1,084
As General Users
030 - COIN OPERATED CAR WASH
162
162
162
162
163
163
164
164
165
165
166
166
As General Users
032 - CEMETERY AND RELATED BUILDINGS
205
205
205
206
206
207
208
208
209
210
210
211
As General Users
033-CHURCH BUILDINGS
2,816
2,816
2,818
2,826
2,835
2,843
2,852
2,860
2,869
2,878
2,886
2,895
As General Users
034 - DORMITORY
617
617
618
619
621
623
625
627
629
631
633
634
As General Users
035 - ENTERTAINMENT CENTER
474
474
475
476
477
479
480
482
483
485
486
488
As General Users
036 - FINANCIAL BUILDINGS
564
564
564
566
568
569
571
573
574
576
578
580
As General Users
037 - FRATERNAL BUILDINGS
368
368
369
370
371
372
373
374
375
376
378
379
As General Users
038 - FUNERAL HOME
119
119
119
120
120
121
121
121
122
122
122
123
As General Users
10/29/2022 35Dra 57 OC San
Orange County Sanitation District Page 2 of 5
Cost of Service Rate Study
Revenue Requirement
Exhibit 6 - Revenue at Present Rates
EDU Forecast
FY 2020-21
FY 2021-22
FY 2022-23
FY 2023-24
FY 2024-25
FY 2025-26
FY 2026-27
FY 2027-28
FY 2028-29
FY 2029-30
FY 2030-31
FY 2031-32
039 - GOLF COURSE
349
349
349
350
351
352
353
354
355
356
357
359
As General Users
040-HEALTH CLUB
306
306
306
307
308
309
310
311
312
313
313
314
As General Users
042 - HOSPITAL
3,826
3,826
3,828
3,840
3,851
3,863
3,874
3,886
3,898
3,909
3,921
3,933
As General Users
043 - HIGH DEMAND HOTEL/MOTEL
8,305
8,305
8,311
8,336
8,361
8,386
8,411
8,436
8,462
8,487
8,512
8,538
As General Users
044 - LUMBER/CONST. MATERIALSYARD
54
54
54
55
55
55
55
55
55
56
56
56
As General Users
045 - MARINAS
34
34
34
34
34
34
34
34
34
35
35
35
As General Users
047-SUPERMARKET
4,467
4,467
4,470
4,484
4,497
4,511
4,524
4,538
4,551
4,565
4,579
4,592
As General Users
048-CONVENIENCE MARKET
581
581
582
584
585
587
589
591
592
594
596
598
As General Users
050- SINGLE MEDICAL BLDGS TO 3 STORIES
5,504
5,504
5,508
5,525
5,541
5,558
5,575
5,591
5,608
5,625
5,642
5,659
As General Users
051 - SMALL MEDICAL CENTER
429
429
429
431
432
433
434
436
437
438
440
441
As General Users
052 - MEDICAL CENTER COMPLEX
1,413
1,413
1,414
1,418
1,423
1,427
1,431
1,435
1,440
1,444
1,448
1,453
As General Users
053 - HIGH RISE MEDICAL
2,284
2,284
2,285
2,292
2,299
2,306
2,313
2,320
2,327
2,334
2,341
2,348
As General Users
054 - CONVERTED RESIDENCE TO MED OFFICE
72
72
72
72
72
72
73
73
73
73
73
74
As General Users
055 - MOBILEHOME PARK
12,200
12,200
12,208
12,244
12,281
12,318
12,355
12,392
12,429
12,466
12,504
12,541
As General Users
056 - LOW DEMAND HOTEL/MOTEL
12,184
12,184
12,192
12,229
12,265
12,302
12,339
12,376
12,413
12,450
12,488
12,525
As General Users
057-MOTORCYCLE/SMALLVEHICLEBLDGS
23
23
23
23
23
23
23
24
24
24
24
24
As General Users
058-NURSERIES
26
26
26
26
26
26
26
26
26
27
27
27
As General Users
060 - NURSING HOME
1,488
1,488
1,489
1,494
1,498
1,503
1,507
1,512
1,516
1,521
1,525
1,530
As General Users
061 - CONVALESCENT HOSPITALS
1,916
1,916
1,918
1,923
1,929
1,935
1,941
1,947
1,952
1,958
1,964
1,970
As General Users
062 - CONVERTED RES USED ASNURSING HOME
81
81
81
81
81
81
82
82
82
82
83
83
As General Users
063 - LOW RISE RETIREMENT BUILDING(S)
1,544
1,544
1,545
1,550
1,554
1,559
1,564
1,568
1,573
1,578
1,583
1,587
As General Users
064- HIGH RISE RETIREMENT BUILDING(S)
766
766
766
769
771
773
776
778
780
783
785
787
As General Users
065 - SINGLE OFFICE BLDGS TO 3STORIES
16,473
16,473
16,484
16,533
16,583
16,632
16,682
16,732
16,783
16,833
16,883
16,934
As General Users
066 - SMALL OFFICE CENTER
1,522
1,522
1,523
1,528
1,533
1,537
1,542
1,546
1,551
1,556
1,560
1,565
As General Users
067 - OFFICE COMPLEX
937
937
938
940
943
946
949
952
955
957
960
963
As General Users
068 - HIGH RISE OFFICE
6,226
6,226
6,230
6,249
6,268
6,286
6,305
6,324
6,343
6,362
6,381
6,400
As General Users
069 - CONVERTED RESIDENCE TOOFFICE
327
327
328
329
330
331
331
332
333
334
335
337
As General Users
071- PARKING GARAGE
56
56
56
56
56
57
57
57
57
57
57
58
As General Users
072 - PAVED PARKING LOT
5
5
5
5
5
5
5
5
5
5
5
5
As General Users
073 - RECREATION
552
552
553
554
556
558
559
561
563
565
566
568
As General Users
074 - RECREATION VEHICLE PARK
1
1
1
1
1
1
1
1
1
1
1
1
As General Users
076- RESTAURANT -LOW DEMAND
5,341
5,341
5,344
5,360
5,376
5,392
5,409
5,425
5,441
5,457
5,474
5,490
As General Users
077 - RESTAURANT- COFFEE SHOP
6,557
6,557
6,562
6,581
6,601
6,621
6,641
6,661
6,681
6,701
6,721
6,741
As General Users
078- RESTAURANT -DINNER HOUSE
6,078
6,078
6,082
6,100
6,118
6,137
6,155
6,174
6,192
6,211
6,229
6,248
As General Users
079 - RESTAURANT- CONVERSION FROM SFR
47
47
47
47
48
48
48
48
48
48
48
49
As General Users
081 - PRE-SCHOOLS, NURSERY ORCHILDCARE
642
642
642
644
646
648
650
652
654
656
658
660
As General Users
10/29/2022 36Dra 57 OC San
Orange County Sanitation District Page 3 of 5
Cost of Service Rate Study
Revenue Requirement
Exhibit 6 - Revenue at Present Rates
EDU Forecast
FY 2020-21
FY 2021-22
FY 2022-23
FY 2023-24
FY 2024-25
FY 2025-26
FY 2026-27
FY 2027-28
FY 2028-29
FY 2029-30
FY 2030-31
FY 2031-32
082 - PRIVATE SCHOOLS
4,486
4,486
4,489
4,503
4,516
4,530
4,543
4,557
4,571
4,584
4,598
4,612
As General Users
083 - AUTOMOTIVE SERVICE STATION
257
257
257
258
259
260
260
261
262
263
264
264
As General Users
084 - MARINE SERVICE STATION
1
1
1
1
1
1
1
1
1
1
1
1
As General Users
085- COM BI N:SERVICESTATION/RESTAURANT
44
44
44
44
44
44
44
44
45
45
45
45
As General Users
086- COMBIN:SERVICESTATION/CONVENIENCE
231
231
231
232
233
233
234
235
235
236
237
237
As General Users
088 - LOW DEMAND CENTER
7,834
7,834
7,839
7,863
7,886
7,910
7,934
7,957
7,981
8,005
8,029
8,053
As General Users
089 - AVERAGE DEMAND CENTER
21,669
21,669
21,684
21,749
21,814
21,879
21,945
22,011
22,077
22,143
22,209
22,276
As General Users
090-HIGH FLOW CENTER
32,423
32,423
32,445
32,543
32,640
32,738
32,836
32,935
33,034
33,133
33,232
33,332
As General Users
092-SKATING RINKS
212
212
212
213
214
214
215
215
216
217
217
218
As General Users
094- DEPARTMENT STORE
1,048
1,048
1,048
1,052
1,055
1,058
1,061
1,064
1,067
1,071
1,074
1,077
As General Users
095 - DISCOUNT STORE
1,019
1,019
1,020
1,023
1,026
1,029
1,032
1,035
1,038
1,041
1,045
1,048
As General Users
096 - UNATTACHED SINGLE STORE
2,344
2,344
2,345
2,353
2,360
2,367
2,374
2,381
2,388
2,395
2,402
2,410
As General Users
097-STRIP STORE
494
494
494
496
497
499
500
502
503
505
506
508
As General Users
098 - STORE WITH OFFICES OR LIVING UNITS
2,316
2,316
2,318
2,325
2,331
2,338
2,345
2,353
2,360
2,367
2,374
2,381
As General Users
099 - STORE WITH OFFICES UPSTAIRS
305
305
305
306
307
308
309
310
310
311
312
313
As General Users
101-UNATTACHED THEATER
278
278
278
279
280
281
282
282
283
284
285
286
As General Users
103- CHEMICALTANK AND BULKSTORAGE
1
1
1
1
1
1
1
1
1
1
1
1
As General Users
104 - FOOD PROCESSING PLANT
1,630
1,630
1,631
1,636
1,641
1,646
1,651
1,656
1,661
1,666
1,671
1,676
As General Users
105-COLD STORAGE PLANT
259
259
260
260
261
262
263
264
264
265
266
267
As General Users
106-FACTORY
760
760
760
763
765
767
770
772
774
776
779
781
As General Users
107- LIGHT INDUSTRIAL - SINGLETENANT
16,676
16,676
16,687
16,737
16,787
16,837
16,888
16,939
16,989
17,040
17,091
17,143
As General Users
108 - LIGHT INDUSTRIAL - MULTI TENANT
6,475
6,475
6,479
6,498
6,518
6,537
6,557
6,577
6,596
6,616
6,636
6,656
As General Users
109 - RESEARCH AND DEVELOPMENT
552
552
553
554
556
558
559
561
563
564
566
568
As General Users
110 - WAREHOUSE - SINGLE TENANT
14,164
14,164
14,174
14,216
14,259
14,302
14,345
14,388
14,431
14,474
14,518
14,561
As General Users
111- WAREHOUSE - MULTI TENANT
5,380
5,380
5,384
5,400
5,416
5,433
5,449
5,465
5,482
5,498
5,515
5,531
As General Users
112-STEEL BUILDING
179
179
179
180
181
181
182
182
183
183
184
184
As General Users
113 - MINI -WAREHOUSE
707
707
707
709
711
713
716
718
720
722
724
726
As General Users
114 - INDUSTRIAL PARK
7,295
7,295
7,300
7,321
7,343
7,365
7,388
7,410
7,432
7,454
7,477
7,499
As General Users
115 - RECREATIONAL VEHICLE STORAGE YARD
16
16
16
16
16
16
16
16
16
16
16
16
As General Users
116-TRUCK TERMINAL
280
280
280
281
282
283
284
284
285
286
287
288
As General Users
118 - GOVERNMENTAL USEVACANT/DEVELOPED
5,577
5,577
5,581
5,598
5,615
5,631
5,648
5,665
5,682
5,699
5,716
5,734
As General Users
119 - PUBLIC UTILITY
53
53
53
53
54
54
54
54
54
54
55
55
As General Users
120 - WATER MUTUAL OR COMPANY
139
139
139
139
139
140
140
141
141
142
142
142
As General Users
121- PARCEL OF MINIMAL OR NO VALUE
0
0
0
0
0
0
0
0
0
0
0
0
As General Users
122 - SUBSURFACE PARCELS
0
0
0
0
0
0
0
0
0
0
0
0
As General Users
10/29/2022 3�OT 57 oC San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 6 - Revenue at Present Rates
124 - OIL/MINERAL RIGHTS
126 - VACANT COMMON AREA-IMPSALLOCATED
222 - OFFICE CONDO W/OUT INDIVIDUAL BATHROOMS
223-LAUNDROMAT
224-NIGHTCLUB
225 - UNITED STATES POST OFFICE
333 - IRVINE RANCH WATER DISTRICT
555 - OPEN AIR FACILITIES
666 - UNASSIGNED VACANT
777-SEPTIC TANK
888 - CONVERSION -COMPOSITE PROPERTY
999 - Manually Calculated Fee
Total EDUs
APN and Permitee Summary
General Users
Permitted Users
Total APN and Permitees
General Users
General User Rate $/EDU
General User Revenue
Less Assumed Rebates
Net General User Revenue
Page 4 of 5
EDU Forecast
FY 2020-21 1 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32
0
0
0
0
0
0
0
0
0
0
0
0
As General Users
0
0
0
0
0
0
0
0
0
0
0
0
As General Users
0
0
0
0
0
0
0
0
0
0
0
0
As General Users
0
0
0
0
0
0
0
0
0
0
0
0
As General Users
667
667
668
670
672
674
676
678
680
682
684
686
As General Users
363
363
363
365
366
367
368
369
370
371
372
373
As General Users
0
0
0
0
0
0
0
0
0
0
0
0
As General Users
0
0
0
0
0
0
0
0
0
0
0
0
As General Users
0
0
0
0
0
0
0
0
0
0
0
0
As General Users
0
0
0
0
0
0
0
0
0
0
0
0
As General Users
1
1
1
1
1
1
1
1
1
1
1
1
As General Users
31,803
31,803
31,825
31,920
32,016
32,112
32,208
32,305
32,402
32,499
32,596
32,694
As General Users
923,111
923,111
923,730
926,501
929,281
932,069
934,865
937,669
940,482
943,304
946,134
948,972
924944
920967
923730
926501
929281
932069
934865
937670
556,619
556,619
556,992
558,663
560,339
562,020
563,706
565,397
567,093
568,795
570,501
572,213
As General Users
308
308
308
309
310
311
312
313
314
315
316
317
As General Users
556,927
556,927
557,300
558,972
560,649
562,331
564,018
565,710
567,407
569,109
570,817
572,529
2020-211 2022-22
$343 $347 347
$316,627,199 $320,319,644 $320,534,310 $321,495,913 $322,460,401 $323,427,782 $324,398,065 $325,371,259 $326,347,373 $327,326,415 $328,308,395 $329,293,320
(12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) (12,000,000) As Flat
10/29/2022 38Dra 57 OC San
Orange County Sanitation District
Cost of Service Rate Study
Revenue Requirement
Exhibit 6 - Revenue at Present Rates
EDU Forecast
FY 2020-21
FY 2021-22
FY 2022-23
FY 2023-24
FY 2024-25
FY 2025-26
FY 2026-27
FY 2027-28
FY 2028-29
FY 2029-30
FY 2030-31
FY 2031-32
Permit User
Flow - $/1,000,000 Gallons
$1,545.35
$1,601.28
BOD-$/1,000 Ibs
$664.69
$667.99
SS-$/1,000 Ibs
$756.86
$777.00
Million Gallons of Flow
2,806.05
2,806
2,806
2,806
2,806
2,806
2,806
2,806
2,806
2,806
2,806
2,806
Thousand Ibs of BOD
11,450.13
11,450
11,450
11,450
11,450
11,450
11,450
11,450
11,450
11,450
11,450
11,450
Thousand Ibs of SS
2,651.91
2,652
2,652
2,652
2,652
2,652
2,652
2,652
2,652
2,652
2,652
2,652
13,954,229
14, 202,366
14, 202,366
14, 202,366
14, 202,366
14, 202,366
14, 202,366
14, 202,366
14, 202,366
14, 202,366
14, 202,366
14, 202,366
Property Tax Credit
0
0
0
0
0
0
0
0
0
0
0
0
Net Permit User Revenue
$13,954,229
$14,202,366
$14,202,366
$14,202,366
$14,202,366
$14,202,366
$14,202,366
$14,202,366
$14,202,366
$14,202,366
$14,202,366
$14,202,366
Wastehauler
Inside OCSAN Boundries
# of Discharges
7150
7,171
5,145
5,145
5,145
5,145
5,145
5,145
5,145
5,145
5,145
5,145
Inside OCSAN - $/Gallon
$0.08
$0.09
Gallons
10,823,720
10,856,191
7,788,238
7,788,238
7,788,238
7,788,238
7,788,238
7,788,238
7,788,238
7,788,238
7,788,238
7,788,238
977,057
700,941
700,941
700,941
700,941
700,941
700,941
700,941
700,941
700,941
700,941
Inside OCSAN Wastehauler Revenue 865,898
Outside OCSAN Boundries
# of Discharges
790
792
568
568
568
568
568
568
568
568
568
568
Outside OCSAN - $/Gallon
$0.18
$0.20
Gallons
757,547
759,820
545,095
545,095
545,095
545,095
545,095
545,095
545,095
545,095
545,095
545,095
151,964
109,019
109,019
109,019
109,019
109,019
109,019
109,019
109,019
109,019
109,019
Outside OCSAN Wastehauler Revenue 136,358
Total Wastehauler Revenue
$1,002,256
$1,129,021
$809,960
$809,960
$809,960
$809,960
$809,960
$809,960
$809,960
$809,960
$809,960
$809,960
Page 5 of 5
As Flat
As Flat
As Flat
As Property Tax
As Wastehaulers
As Wastehaulers
As Wastehaulers
As Wastehaulers
10/29/2022 39Dra 57 oc San
Orange County Sanitation District
Cost of Service Rate Study
Development of Distribution Factors
Exhibit 7 - Volume Distribution Factor
Page 1 of 2
Customer Class
FY 2023-24
Annual Flow
(1,000 Gal)
4.0%
Inflow and
Infiltration M
Total Annual
Flow at Plant
(1,000 Gal)
Avg. Daily
Flow At
Plant (MGD)
Volume All
% of
Total
Volume -WH
% of
Total
General Users
52,560,962
3,153,658
55,714,620
152.64
94.92%
94.93%
Permitted Users
2,806,046
168,363
2,974,409
8.15
5.07%
5.07%
Wastehaulers
8,333
167
8,500
0.02
0.01%
Total Billed Volume
55,375,341
3,322,187
58,697,528
160.82
100.00%
100.00%
IRWD
2,075,755
41,515
2,117,270
5.80
SAWPA
5,110,000
102,200
5,212,200
14.28
Total Including IRWD and SAWPA
62,561,096
3,465,902
66,026,998
180.90
Inflow Volume At Treatment Plants [2]
65,948,000
180.68
Distribution Factor
(VOL-1)
(VOL-2)
[1] Inflow and Infiltration assigned to General and Permitted Users.
All customers attributed
2% for Urban Dry
Weather Runoff
[2] 2021 data from P1-P2 Influent.xlsx File Provided by OC San
[3] 2021 Avg Daily Flow in MGD, contract capacity = 17 MGD
Urban Dry Weather Run Off
1,350,500
0
1,350,500
3.70
2.1 %
10/29/2022 REA7 OC San
Orange County Sanitation District
Page 2 of 2
Cost of Service Rate Study
Development of Distribution Factors
Exhibit 8 - Strength Distribution Factors
Biological Oxygen Demand
Total Suspended Solids
Daily Flow
Avg. Factor
Calculated
%of
Avg. Factor
Calculated
%of
Customer Class
(MGD)
(mg/1)
Pounds l�
Total
(mg/1)
Pounds l
Total
General Users
152.64
283
131,313,501
91.8%
348
161,577,388
98.2%
Permitted Users
8.15
461
11,450,126
8.0%
107
2,651,906
1.6%
Wastehaulers
0.02
5,000
354,450
0.2%
5,000
354,450
0.2%
Totals
160.82
292
143,118,077
1.00
336
164,583,744
100.00%
IRWD
5.80
138
2,436,809
1.7%
170
3,001,866
1.8%
SAWPA
14.28
39
1,709,665
1.2%
93
4,027,037
2.4%
180.90
267
147,264,551
311
171,612,647
Concentration At Treatment Plant [2]
180.68
262
144,216,821
318
174,710,659
Distribution Factor
(BOD)
(TSS)
[1]
[2] 2021 data from PI-P2 Influent.xlsx File Provided by OC San
10/29/2022 4'Pb"7 OC San
Orange County Sanitation District
Cost of Service Rate Study
Functionalization and Allocation
Exhibit 9 - Allocation of Plant In Service
6/30/2020
Original Cost
Treatment Plant Structures and Improvement
Structures and Improvements $345,477,114
Electrical 47,006,877
Land 35,317,555
Ground Water Replenishment System 208,568,242
Total - Treatment Plant Structures and Improvement
Wastewater Treatment
Pretreatment
Headworks
Influent Metering and Diversion
Bar Screen
Blower
Boiler
Foul Air Scrubber
Air Quality
Wet Well
Grit Removal
Primary Basin
Secondary Basin
Digester
Primary Clarifiers
Secondary Clarifiers
Trickling Filter
Aeration Basin
Chemical Feed System
Polymer Feed
Chlorination
Sludge Handling
Belt Press
Solids Handling
Effluent Distribution
Dissolved Air Flotation
Secondary Treatment
Activated Sludge Clarifier
Return Activated Sludge Pump
SCADA
Instrumentation and Telemetry
Monitoring/Sampling Equipment
Control Equipment
Instrument & Testing Equipment
Water Supply
Methane Collection
Gas Compressor
Chopper Pump
Centrifuge
Pumps
Valves
$636,369,788
$5,434,618
35,943,851
34,714,461
115,103,066
45,588,757
8,967,007
117,949,630
14,136,779
144,717
62,903,321
72,138,907
2,425,324
206,792,971
150,783,220
182,700,680
136,815,816
124,727,870
14,469,082
2,017,438
5,093,783
56,844,197
7,187,547
19,565,030
103,072,258
45,582,781
35,045,994
17,305,256
3,614,786
1,608,549
10,951,109
9,113,895
38,876,860
8,784,876
14,368,367
13,197,089
2,800,759
592,132
576,672
10,324,045
1,308,439
Wastewater Concentration
Biological Total
Volume All Volume-WH Oxygen Suspended
Demand Solids
Basis
Page 1 of 5
$121,173,840 $0 $116,809,403 $107,493,871 As Treatment Less Interplant Collection
16,487,355 0 15,893,514 14,626,008 As Treatment Less Interplant Collection
12,387,402 0 11,941,233 10,988,921 As Treatment Less Interplant Collection
208,568,242 0 0 0 100%(VOL-1)
$358,616,839 $0 $144,644,149 $133,108,801
$4,075,963
$0
$271,731
$1,086,924
Headworks
26,957,888
0
1,797,193
7,188,770
Headworks
26,035,846
0
1,735,723
6,942,892
Headworks
86,327,299
0
5,755,153
23,020,613
Headworks
34,191,568
0
2,279,438
9,117,751
Headworks
8,070,306
0
896,701
0
Interplant
88,462,223
0
5,897,482
23,589,926
Headworks
10,602,584
0
706,839
2,827,356
Headworks
108,538
0
7,236
28,943
Headworks
47,177,491
0
3,145,166
12,580,664
Headworks
0
0
21,641,672
50,497,235
Primary Sedimentation
0
0
1,697,726
727,597
Secondary Sedimentation
0
0
51,698,243
155,094,728
Digestion
0
0
45,234,966
105,548,254
Primary Sedimentation
0
0
127,890,476
54,810,204
Secondary Sedimentation
0
0
136,815,816
0
Trickling Filters
0
0
124,727,870
0
Aeration Equipment and Structures
0
0
3,617,270
10,851,811
Sludge Thickening
0
0
504,360
1,513,079
Sludge Thickening
0
0
1,273,446
3,820,337
Sludge Thickening
0
0
14,211,049
42,633,148
Sludge Thickening
0
0
1,796,887
5,390,660
Sludge Thickening
0
0
4,891,257
14,673,772
Solids Handling
103,072,258
0
0
0
Effluent Disposal
0
0
13,674,834
31,907,946
Primary Sedimentation
0
0
24,532,196
10,513,798
Secondary Sedimentation
0
0
17,305,256
0
Activated Sludge Process
0
0
3,614,786
0
Activated Sludge Process
1,447,694
0
160,855
0
Interplant
9,855,998
0
1,095,111
0
Interplant
8,202,506
0
911,390
0
Interplant
34,989,174
0
3,887,686
0
Interplant
7,906,389
0
878,488
0
Interplant
12,931,530
0
1,436,837
0
Interplant
0
0
3,299,272
9,897,817
Digestion
2,520,683
0
280,076
0
Interplant
532,919
0
59,213
0
Interplant
519,005
0
57,667
0
Interplant
9,291,640
0
1,032,404
0
Interplant
1,177,595
0
130,844
0
Interplant
10/29/2022 42DW57 OC San
Orange County Sanitation District
Cost of Service Rate Study
Functionalization and Allocation
Exhibit 9 - Allocation of Plant In Service
ascription
6/30/2020
Sluice gate
78,327
Knife Gate Valve
58,240
High Strength BOD
9,405
Ocean Outfall Booster Station
25,516,205
Outfall
72,134,035
Surge Sturcture
53,010
Wastehauler Facilities
2,224,344
Air Compressor
2,457,295
Interplant Interceptor
5,762,020
Tunnel & Piping
29,548,004
Bypass
390,568
Lift Station
83,004,862
Pump Stations
42,746,807
Collection Line
70,798,481
Flow Meter
1,415,253
Force Main
929,394
Total - Wastewater Treatment
$2,076,698,187
Revenue Area 14
Trunkline
$26,162,942
Pump Station
7,186,481
Telemetry
19,644
Misc. Equipment
6,139
Total - Revenue Area 14
$33,375,206
Revenue Area 15
Land
$3,974,869
Trunk
366,775,089
Pump Station
118,421,602
Diversion Sewer
3,425,917
Siphon
11,291,496
Interceptor
94,171,908
Force Main
48,138,759
Wet Well
52,030
Manhole
12,382,651
Gates and Valves
60,327,214
Telemetry
287,646
Flowmeter
1,172,378
Misc. Equipment
43,686
Generator
116,167
Odor Control
19,164
JOS Outfall
98,475
Total - Revenue Area 15 $720,699,050
Original Cost Plant Before General Plant $3,467,142,232
Volume All I Volume -WH
(VOL-1)
70,494
52,416
0
25,516,205
72,134,035
53,010
2,001,910
2,211,566
5,185,818
26,593,204
351,512
74,704,376
38,472,127
63,718,633
1,273,727
(VOL-2)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Wastewater Concentration
Biological Total
Oxygen Suspended
Demand Solids
(BOD)
(TSS)
Basis of Classificai
7,833
0
Interplant
5,824
0
Interplant
2,351
7,054
Sludge Thickening
0
0
Effluent Disposal
0
0
Effluent Disposal
0
0
Effluent Disposal
222,434
0
Interplant
245,730
0
Interplant
576,202
0
Interplant
2,954,800
0
Interplant
39,057
0
Interplant
8,300,486
0
Interplant
4,274,681
0
Interplant
7,079,848
0
Interplant
141,525
0
Interplant
92,939
0
Interplant
$0
$23,546,647
$2,616,294
$0
Collection
0
6,467,833
718,648
0
Collection
5,823
4,688
5,072
4,061
As All Others
1,820
1,465
1,585
1,269
As All Others
$7,643
$30,020,634
$3,341,599
$5,330
$1,178,238
$948,614
$1,026,292
$821,724
As All Others
0
330,097,580
36,677,509
0
Collection
0
106,579,442
11,842,160
0
Collection
0
3,083,325
342,592
0
Collection
0
10,162,346
1,129,150
0
Collection
0
84,754,717
9,417,191
0
Collection
0
43,324,883
4,813,876
0
Collection
39,022
0
2,601
10,406
Headworks
0
11,144,386
1,238,265
0
Collection
0
54,294,492
6,032,721
0
Collection
85,265
68,648
74,269
59,465
As All Others
0
1,055,141
117,238
0
Collection
12,949
10,426
11,279
9,031
As All Others
34,434
27,724
29,994
24,015
As All Others
14,373
0
958
3,833
Headworks
98,475
0
0
0
Effluent Disposal
$1,197,719,822 $675,572,358 $875,536,267 $718,313,886
Page 2 of 5
10/29/2022 457 OC San
Orange County Sanitation District
Cost of Service Rate Study
Functionalization and Allocation
Exhibit 9 - Allocation of Plant In Service
Description 6/30/2020
General Plant
Lab Equipment
$6,325,142
Portable Office Space
7,580,302
Portable Equipment
3,354,812
Ocean Monitoring Vesse
1,300,000
Vactor Truck
1,156,316
Underground Storage Tank
1,084,429
Plans
238,542
Misc. Equipment
132,268,127
Office Equipment
154,852
Office Furnishings
1,618,021
Security Equipment
357,610
IT Equipment
44,193,843
Vehicles
12,054,324
HVAC
6,860,455
Software
4,235,131
Generators
30,472,891
Total General Plant
$253,254,799
Wastewater Concentration
Biological Total
Volume All Volume-WH Oxygen Suspended
Demand Solids
Basis
$1,874,911
$1,509,514
$1,633,122
$1,307,596
As All Others
2,246,968
1,809,062
1,957,198
1,567,075
As All Others
994,440
800,636
866,197
693,540
As All Others
385,348
310,249
335,654
268,749
As All Others
342,757
275,958
298,555
239,045
As All Others
321,449
258,802
279,994
224,184
As All Others
70,709
56,929
61,590
49,314
As All Others
39,207,171
31,566,186
34,151,003
27,343,766
As All Others
45,901
36,956
39,982
32,012
As All Others
479,617
386,146
417,765
334,493
As All Others
106,004
85,345
92,333
73,929
As All Others
13,100,024
10,546,994
11,410,641
9,136,185
As All Others
3,573,166
2,876,801
3,112,369
2,491,988
As All Others
2,033,589
1,637,268
1,771,337
1,418,261
As All Others
1,255,386
1,010,727
1,093,491
875,528
As All Others
9,032,833
7,272,447
7,867,956
6,299,655
As All Others
Page 3 of 5
Total Original Cost Plant in Service
$3,720,397,032
$1,272,790,093
$736,022,378
$940,925,355
$770,669,205
Accumulated Depreciation
Depreciation of Structures and Improvement
Structures and Improvements
$239,669,264
$84,062,428
$0
$81,034,669
$74,572,167
As Treatment Less Interplant Collection
Electrical
28,325,492
9,934,981
0
9,577,143
8,813,368
As Treatment Less Interplant Collection
Land
0
0
0
0
0
As Treatment Less Interplant Collection
Ground Water Replenishment System
69,522,747
69,522,747
0
0
0
100% (VOL-1)
Total- Depreciation of Structures and Improvement
$337,517,504
$163,520,157
$0
$90,611,812
$83,385,534
Depreciation of Wastewater Treatment
Pretreatment
$2,219,260
$1,664,445
$0
$110,963
$443,852
Headworks
Headworks
27,433,246
20,574,935
0
1,371,662
5,486,649
Headworks
Influent Metering and Diversion
12,201,596
9,151,197
0
610,080
2,440,319
Headworks
Bar Screen
27,949,705
20,962,279
0
1,397,485
5,589,941
Headworks
Blower
13,261,665
9,946,249
0
663,083
2,652,333
Headworks
Boiler
2,709,752
2,438,777
0
270,975
0
Interplant
Foul Air Scrubber
49,045,554
36,784,165
0
2,452,278
9,809,111
Headworks
Air Quality
12,976,046
9,732,035
0
648,802
2,595,209
Headworks
Wet Well
144,555
108,416
0
7,228
28,911
Headworks
Grit Removal
18,837,416
14,128,062
0
941,871
3,767,483
Headworks
Primary Basin
46,657,814
0
0
13,997,344
32,660,470
Primary Sedimentation
Secondary Basin
2,421,693
0
0
1,695,185
726,508
Secondary Sedimentation
Digester
104,567,175
0
0
26,141,794
78,425,381
Digestion
Primary Clarifiers
59,360,420
0
0
17,808,126
41,552,294
Primary Sedimentation
Secondary Clarifiers
57,495,919
0
0
40,247,143
17,248,776
Secondary Sedimentation
Trickling Filter
36,118,744
0
0
36,118,744
0
Trickling Filters
Aeration Basin
42,305,724
0
0
42,305,724
0
Aeration Equipment and Structures
Chemical Feed System
6,382,079
0
0
1,595,520
4,786,560
Sludge Thickening
Polymer Feed
1,852,014
0
0
463,004
1,389,011
Sludge Thickening
Chlorination
5,014,990
0
0
1,253,748
3,761,243
Sludge Thickening
Sludge Handling
25,754,640
0
0
6,438,660
19,315,980
Sludge Thickening
Belt Press
6,728,134
0
0
1,682,033
5,046,100
Sludge Thickening
Solids Handling
7,737,501
0
0
1,934,375
5,803,125
Solids Handling
Effluent Distribution
44,325,301
44,325,301
0
0
0
Effluent Disposal
10/29/2022 44cor57 OC San
Orange County Sanitation District
Cost of Service Rate Study
Functionalization and Allocation
Exhibit 9 - Allocation of Plant In Service
Dissolved Air Flotation
Secondary Treatment
Activated Sludge Clarifier
Return Activated Sludge Pump
SCADA
Instrumentation and Telemetry
Monitoring/Sampling Equipment
Control Equipment
Instrument & Testing Equipment
Water Supply
Methane Collection
Gas Compressor
Chopper Pump
Centrifuge
Pumps
Valves
Sluice gate
Knife Gate Valve
High Strength BOD
Ocean Outfall Booster Station
Outfal I
Surge Sturcture
Wastehauler Facilities
Air Compressor
Interplant Interceptor
Tunnel & Piping
Bypass
Lift Station
Pump Stations
Collection Line
Flow Meter
Force Main
Total - Depreciation of Wastewater Treatment
Depreciation of Revenue Area 14
Trunkline
Pump Station
Telemetry
Misc. Equipment
Total - Depreciation of Revenue Area 14
6/30/2020
14,480,801
24,186,694
5,354,771
2,146,077
1,608,549
9,403,677
7,399,264
31,292,150
6,749,708
7,316,095
9,400,643
2,800,759
431,156
569,353
9,208,732
881,220
37,526
35,056
9,405
20,413,774
32,148,089
27,830
1,982,951
1,474,200
5,601,560
23,093,660
390,568
23,893,442
15,464,926
17,128,150
1,401,957
842.186
$14,952,281
$5,055,360
$19, 644
56.139
.]G V,VJJ,YGJ
Volume All I Volume -WH
(VOL-1)
0
0
0
0
1,447,694
8,463,310
6,659,337
28,162,935
6,074,737
6,584,485
0
2,520,683
388,041
512,417
8,287,859
793,098
33,774
31,551
0
20,413,774
32,148,089
27,830
1,784,656
1,326,780
5,041,404
20,784,294
351,512
21,504,097
13,918,433
15,415,335
1,261,762
757.967
(VOL-2)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
yV
Wastewater Concentration
Biological
Total
Oxygen
Suspended
Demand
Solids
(BOD)
(TSS)
4,344,240
10,136,560
16,930,686
7,256,008
5,354,771
0
2,146,077
0
160,855
0
940,368
0
739,926
0
3,129,215
0
674,971
0
731,609
0
2,350,161
7,050,482
280,076
0
43,116
0
56,935
0
920,873
0
88,122
0
3,753
0
3,506
0
2,351
7,054
0
0
0
0
0
0
198,295
0
147,420
0
560,156
0
2,309,366
0
39,057
0
2,389,344
0
1,546,493
0
1,712,815
0
140,196
0
84.219
0
$248,184,797 5267,979,361
Basis of Classification
Primary Sedimentation
Secondary Sedimentation
Activated Sludge Process
Activated Sludge Process
Interplant
Interplant
Interplant
Interplant
Interplant
Interplant
Digestion
Interplant
Interplant
Interplant
Interplant
Interplant
Interplant
Interplant
Sludge Thickening
Effluent Disposal
Effluent Disposal
Effluent Disposal
Interplant
Interplant
Interplant
Interplant
Interplant
Interplant
Interplant
Interplant
Interplant
Interplant
$0
$13,457,053
$1,495,228
$0
Collection
0
4,549,824
505,536
0
Collection
5,823
4,688
5,072
4,061
As All Others
1,820
1,465
1,585
1,269
As All Others
$7,643
$18,013,031
$2,007,421
$5,330
Page 4 of 5
10/29/2022 46)b"#ft7 OC San
Orange County Sanitation District
Cost of Service Rate Study
Functionalization and Allocation
Exhibit 9 - Allocation of Plant In Service
Description 6/30/2020
Depreciation of Revenue Area 15
Land
$33,913
Trunk
180,474,791
Pump Station
54,354,242
Diversion Sewer
1,953,231
Siphon
3,697,139
Interceptor
70,093,970
Force Main
12,411,864
Wet Well
52,030
Manhole
6,057,388
Gates and Valves
14,961,770
Telemetry
287,646
Flowmeter
1,168,785
Misc. Equipment
23,535
Generator
7,744
Odor Control
19,164
JOS Outfall
98,475
Total - Depreciation of Revenue Area 15
$345,695,689
Depreciation of Plant Before General Plant
$1,593,922,487
Depreciation of General Plant
Lab Equipment
6,317,055
Portable Office Space
4,845,157
Portable Equipment
2,606,521
Ocean Monitoring Vesse
1,300,000
Vactor Truck
798,555
Underground Storage Tank
797,821
Plans
238,542
Misc. Equipment
90,315,500
Office Equipment
154,852
Office Furnishings
1,547,592
Security Equipment
163,153
IT Equipment
41,203,069
Vehicles
8,310,451
HVAC
5,497,336
Software
3,852,718
Generators
30,472,891
Total General Plant
$198,421,213
Total Depreciation of Capital Plant in Service
$1,792,343,701
Plus: Work In Process
$0
Original Cost Less Depreciation
$2,928,053,330
Page 5 of 5
Volume All I Volume -WH
(VOL-1) I (VOL-2)
Wastewater Concentration
Biological
Total
Oxygen
Suspended
Demand
Solids
(BOD)
(TSS)
Basis
$10,053
$8,094
$8,756
$7,011
As All Others
0
162,427,312
18,047,479
0
Collection
0
48,918,818
5,435,424
0
Collection
0
1,757,908
195,323
0
Collection
0
3,327,425
369,714
0
Collection
0
63,084,573
7,009,397
0
Collection
0
11,170,678
1,241,186
0
Collection
39,022
0
2,601
10,406
Headworks
0
5,451,649
605,739
0
Collection
0
13,465,593
1,496,177
0
Collection
85,265
68,648
74,269
59,465
As All Others
0
1,051,907
116,879
0
Collection
6,976
5,617
6,077
4,865
As All Others
2,296
1,848
2,000
1,601
As All Others
14,373
0
958
3,833
Headworks
98,475
0
0
0
Effluent Disposal
$538,295,971 $328,753,100 $375,416,010 $351,457,407
$1,872,514 $1,507,584 $1,631,034 $1,305,924 As All Others
1,436,211 1,156,311 1,250,996 1,001,638 As All Others
772,630 622,054 672,991 538,846 As All Others
385,348 310,249 335,654 268,749 As All Others
236,709 190,578 206,183 165,085 As All Others
236,492 190,402 205,994 164,933 As All Others
70,709 56,929 61,590 49,314 As All Others
26,771,493 21,554,066 23,319,034 18,670,907 As All Others
45,901 36,956 39,982 32,012 As All Others
458,740 369,338 399,581 319,933 As All Others
48,362 38,937 42,125 33,728 As All Others
12,213,493 9,833,236 10,638,437 8,517,903 As All Others
2,463,400 1,983,314 2,145,719 1,718,018 As All Others
1,629,531 1,311,956 1,419,386 1,136,463 As All Others
1,142,030 919,463 994,754 796,472 As All Others
9,032,833 7,272,447 7,867,956 6,299,655 As All Others
58,816,396 $47,353,819 $51,231,416 $41,019,582
97,112,367 $376,106,919 $426,647,426 $392,476,989
$0 $0 $0 $0 As Original Cost Plant Before General
10/29/2022
46)57f$7
OC San
Orange County Sanitation District
Cost of Service Rate Study
Functionalization and Allocation
Exhibit 10 - Allocation of Expenses
Total
Expenses
FY 2023-24
Biological Total
Volume All Volume-WH Oxygen Suspended
Demand Solids
Basis of Classification
Expenses
Total Operations & Maintenance Expense
$209,891,777
Preliminary Treatment - Plant #1
3.1%
$6,439,560
$4,829,670
$0
$321,978
$1,287,912
Headworks
Primary Treatment - Plant #1
6.4%
13,444,703
2,016,705
0
3,361,176
8,066,822
Primary Sedimentation O&M
Secondary Treatment - Plant #1
2.6%
5,413,501
0
0
5,413,501
0
Secondary Sedimentation O&M
Effluent Disposal - Plant #1
0.0%
41,555
41,555
0
0
0
Effluent Disposal
Solids Handling - Plant #1
Solids Handling
10.8%
$22,636,221
$0
$0
$5,659,055
$16,977,166
Solids Handling
Solids Disposals
8.1%
17,093,598
0
0
7,692,119
9,401,479
Solids Disposal
Co -Generation Facilities - Plant #1
8.2%
17,187,959
0
0
4,296,990
12,890,969
Digestion
Utility Units - Plant #1
1.3%
2,743,651
246,831
394,583
825,599
1,276,638
As All Others O&M
Electrical Distribution - Plant #1
0.8%
1,692,893
152,300
243,466
509,413
787,714
As All Others O&M
Miscellaneous Buildings - Plant #1
5.0%
10,528,011
947,147
1,514,103
3,168,011
4,898,750
As All Others O&M
Preliminary Treatment - Plant #2
2.5%
5,194,118
3,895,589
0
259,706
1,038,824
Headworks
Primary Treatment - Plant #2
3.4%
7,181,356
1,077,203
0
1,795,339
4,308,813
Primary Sedimentation O&M
Secondary Treatment - Plant #2
3.3%
6,881,627
0
0
6,881,627
0
Secondary Sedimentation O&M
Oxygen Generation Facility (Air Product)
0.5%
1,094,468
0
0
1,094,468
0
100%(BOD)
Effluent Disposal - Plant #2
0.7%
1,504,016
1,504,016
0
0
0
Effluent Disposal
Solids - Plant #2
Solids Handling
6.1%
$12,887,915
$0
$0
$3,221,979
$9,665,936
Solids Handling
Solids Disposals
3.7%
7,816,481
0
0
3,517,416
4,299,064
Solids Disposal
Central Generation Facility - Plant #2
3.1%
6,596,431
593,444
948,677
1,984,949
3,069,361
As All Others O&M
Utility Units - Plant #2
0.8%
1,659,356
149,283
238,643
499,321
772,109
As All Others O&M
Electrical Distribution - Plant #2
0.6%
1,311,431
117,982
188,606
394,626
610,217
As All Others O&M
Miscellaneous Buildings - Plant #2
1.7%
3,495,583
314,478
502,723
1,051,865
1,626,517
As All Others O&M
External Location
0.3%
650,543
58,526
93,559
195,757
302,702
As All Others O&M
Nerissa
0.1%
299,978
26,987
43,142
90,267
139,581
As All Others O&M
Revenue Area 13
0.0%
9,634
0
8,671
482
482
Collection O&M
Revenue Area 1
0.2%
404,290
0
363,861
20,214
20,214
Collection O&M
Revenue Area 2
2.6%
5,551,050
0
4,995,945
277,553
277,553
Collection O&M
Revenue Area 3
3.6%
7,487,637
0
6,738,874
374,382
374,382
Collection O&M
Revenue Area 14
0.0%
98,878
0
88,990
4,944
4,944
Collection O&M
Revenue Area 5
2.8%
5,827,290
0
5,244,561
291,364
291,364
Collection O&M
Revenue Area 6
0.3%
600,369
0
540,332
30,018
30,018
Collection O&M
Revenue Area 7
0.6%
1,354,052
0
1,218,647
67,703
67,703
Collection O&M
Revenue Area 11
1.1%
2,405,454
0
2,164,908
120,273
120,273
Collection O&M
Joint Revenue Areas
0.7%
1,462,451
131,569
210,325
440,070
680,488
As All Others O&M
Non Area Specific
14.7%
30,895,718
2,779,517
4,443,319
9,296,910
14,375,972
As All Others O&M
Additional Expenditures (Input on Dashboard)
$0
$0
$0
$0
$0
As All Others O&M
Total Operations & Maintenance Expense $209,891,777 1 $18,882,803 $30,185,933 $63,159,074 $97,663,967
Page 1 of 2
10/29/2022 47 of57 OC San
Orange County Sanitation District
Page 2 of 2
Cost of Service Rate Study
Functionalization and Allocation
Exhibit 10 - Allocation of Expenses
Total
Strength
Biological
Total
Volume All
Volume-WH
Oxygen
Suspended
Expenses
Demand
Solids
Description
FY 2023-24
(VOL-1)
(VOL-2)
(BOD)
(TSS)
Basis of Classification
$86,561,706
$40,955,955
$80,720,561
$88,536,419
Capital
Capital Funded Through Rates (Capital Exp less Transfer In) $296,774,641
Transfers Out
Equity Purchases (joint Operations)
$3,500,000
$314,876
$503,358
$1,053,194
$1,628,572
As Total Operations & Maintenance
Self Insurance Fund Requirements
3,850,000
346,363
553,694
1,158,513
1,791,429
As Total Operations & Maintenance
Total Transfers Out
$7,350,000
$661,239
$1,057,052
$2,211,707
$3,420,001
Transfers In
Use of Fund Balance (Policy Driven Adjustment)
($85,196,742)
($29,146,774)
($16,854,614)
($21,547,102)
($17,648,252)
As Original Cost Plant In Service
Total Transfers In
($85,196,742)
($29,146,774)
($16,854,614)
($21,547,102)
($17,648,252)
Debt Service
2010A Build America Bonds
$2,986,574
$1,046,632
$557,497
$796,622
$585,824
Original Cost Less Depreciation
2010C Build America Bonds
6,724,010
2,356,399
1,255,156
1,793,524
1,318,930
Original Cost Less Depreciation
2014A Refunding
11,044,000
3,870,321
2,061,559
2,945,813
2,166,307
Original Cost Less Depreciation
2015A Refunding
6,375,500
2,234,266
1,190,101
1,700,564
1,250,569
Original Cost Less Depreciation
2016A Refunding
11,396,050
3,993,695
2,127,275
3,039,717
2,235,362
Original Cost Less Depreciation
2017A Refunding
3,290,750
1,153,229
614,277
877,756
645,488
Original Cost Less Depreciation
2021A Refunding
22,713,500
7,959,845
4,239,879
6,058,469
4,455,307
Original Cost Less Depreciation
2022A Refunding
4,081,000
1,430,168
761,791
1,088,543
800,498
Original Cost Less Depreciation
New Low Interest Loan
0
0
0
0
0
Total Capital
New COP
0
0
0
0
0
Total Capital
Debt Issuance Costs
0
0
0
0
0
Total Capital
Total Debt Service
$68,611,384
$24,044,555
$101,003,529
$12,807,536
$68,151,862
$18,301,009
$142,845,249
$13,458,285
$185,430,420
Total Revenue Requirements $497,431,060
Less: Miscellaneous Revenues
Property Taxes
$112,081,316
$22,758,146
$15,355,998
$32,185,935
$41,781,238
As Total Revenue Requirement Less Direct!
IRWD 0&M Assessment
0
0
0
0
0
As Total Revenue Requirement Less Direct /
IRWD Capital Assessment
0
0
0
0
0
As Total Revenue Requirement Less Direct /
IRWD Solids Assessment
0
0
0
0
0
As Total Revenue Requirement Less Direct /
IRWD
16,358,057
16,358,057
0
0
0
100%(VOL-1)
SAWPA
3,138,000
3,138,000
0
0
0
100%(VOL-1)
New COP Issues
0
0
0
0
0
As Total Revenue Requirement Less Direct /
Interest Revenues
0
0
0
0
0
As Total Revenue Requirement Less Direct /
Capital Facilities Capacity Charges
0
0
0
0
0
As Total Revenue Requirement Less Direct /
General User Rebates
(12,000,000)
(2,436,604)
(1,644,092)
(3,445,991)
(4,473,313)
As Total Revenue Requirement Less Direct /
Equity Sale to 7 or 14
3,500,000
314,876
503,358
1,053,194
1,628,572
As Total Operations & Maintenance
Share of SFI Revenue
3,850,000
346,363
553,694
1,158,513
1,791,429
As Total Operations & Maintenance
Share ofJORevenue
12,058,809
12,058,809
0
0
0
100%(VOL-1)
CIP Reimbursements
10,220,909
3,187,879
1,577,973
2,711,361
2,743,696
Total Capital
Total Miscellaneous Revenues
$149,207,091
$55,725,526
$45,278,003
$16,346,932
$51,804,930
$33,663,012
$109,182,237
$43,471,622
$141,958,798
Net Revenue Requirements $348,223,968
10/29/2022 4AT t57 OC San
Orange County Sanitation District
Cost of Service Rate Study
Functionalization and Allocation
Exhibit 11 - Summary of Basis of Allocation
Description
Plontj
Revenue
Requirement
100% (VOL-1)
213
100% (VOL-2)
Oj0
100%(BOD)
Oj1
100% (TSS)
Oj0
Allocation of Plant Assets Types
Oj0
Collection
2210
Primary Sedimentation
610
Secondary Sedimentation
610
Interplant
4810
Headworks
2212
As All Others
4410
Effluent Disposal
1012
Activated Sludge Process
410
Oxygen Activated Sludge Process
Oj0
Blower Equipment and Structures
Oj0
Aeration Equipment and Structures
210
Trickling Filters
210
Sludge Thickening
1210
Digestion
411
Solids Handling
212
Solids Disposal
O12
Allocations Based on Plant In Service
Oj0
As Treatment Plant
Oj0
As Treatment Plant Structures and Improvements
Oj0
As Treatment Less Interplant Collection
610
As Revenue Area 14
0/0
As Revenue Area 15
0/0
As Collection (Rev. 14 & 15)
Oj0
As Original Cost Plant Before General
1j0
As Original Cost Plant In Service
0/1
As Orginal Cost Plant Before General Less Direct Assignment
Oj0
Original Cost Less Depreciation
O112
As Original Cost General Plant
Oj0
As Orginal Cost of Vehicles
Oj0
Allocation of Expense Types
Oj0
Secondary Sedimentation O&M
O12
Collection O&M
Oj9
Primary Sedimentation O&M
O12
As All Others O&M
O112
Allocation Based on Revenue Requirements
Oj0
As Total Operations & Maintenance
Oj10
As Total Revenue Requirement
Oj0
As Total Revenue Requirement Less Direct Assignment
O18
Allocation Based on Capital Projects
Oj0
Capital
0/1
Rehabilitation
Oj0
Total Capital
O14
Strength
Biological Total
Volume All
Volume -WH
Oxygen
Suspended
Demand
Solids
Totals
(VOL-1)
(VOL-2)
(BOD) (TSS)
100.0 %
100.00%
100.0 %
100.00%
100.0 %
100.00%
100.0 %
100.00%
0.0%
90.0%
10.0%
100.00%
30.0%
70.0%
100.00%
70.0%
30.0%
100.00%
90.0%
10.0%
100.00%
75.0%
5.0%
20.0%
100.00%
29.6%
23.9%
25.8%
20.7%
100.00%
100.0 %
100.00%
100.0 %
100.00%
100.0 %
100.00%
100.0 %
100.00%
100.0 %
100.00%
100.0 %
100.00%
25.0%
75.0%
100.00%
25.0%
75.0%
100.00%
25.0%
75.0%
100.00%
45.0%
55.0%
100.00%
40.3%
0.0%
31.5%
28.1%
100.00%
56.4%
0.0%
22.7%
20.9%
100.00%
35.1%
0.0%
33.8%
31.1%
100.00%
0.0%
89.9%
10.0%
0.0%
100.00%
0.2%
89.6%
10.1%
0.1%
100.00%
0.2%
89.6%
10.1%
0.1%
100.00%
34.5%
19.5%
25.3%
20.7%
100.00%
34.2%
19.8%
25.3%
20.7%
100.00%
34.5%
19.5%
25.3%
20.7%
100.00%
35.0%
18.7%
26.7%
19.6%
100.00%
29.6%
23.9%
25.8%
20.7%
100.00%
29.6%
23.9%
25.8%
20.7%
100.00%
100.0 %
100.00%
0.0%
90.0%
5.0%
5.0%
100.00%
15.0%
25.0%
60.0%
100.00%
9.0%
14.4%
30.1%
46.5%
100.00%
9.0%
14.4%
30.1%
46.5%
100.00%
20.3%
13.7%
28.7%
37.3%
100.00%
20.3%
13.7%
28.7%
37.3%
100.00%
29.2%
13.8%
27.2%
29.8%
100.00%
47.4%
28.6%
21.1%
2.8%
100.00%
31.2%
15.4%
26.5%
26.8%
100.00%
10/29/2022 49"1'67 OC San
Orange County Sanitation District
Cost of Service Rate Study
Functionalization and Allocation
Exhibit 12 - Allocation by Component
Classification Components
Volume
Volume All
Volume Less Collection
Total Volume
Strength Distibution
Biochemical Oxygen Demand
Total Suspended Solids
Total Strength Distibution
Net Revenue
Requirement General Users Permitted Users Wastehaulers Allocation Factor Checks
$45,278,003 I $42,977,052 $2,294,394
51,804,930 49,179,414 2,625,517
$97,082,934 $92,156,466 $4,919,911
$109,182,237 $100,176,735 $8,735,098
141,958,798 139,365,719 2,287,354
$160,987,167I $149,356,149 $11,360,615
$6,557 (VOL-1)
0 (VOL-2)
$6,557
$270,404 (BOD)
305,725 (TSS)
$ 270,404
Net Revenue Requirement $348,223,968 I $331,698,920 $15,942,363 $582,685
10/29/2022 59[0 t7 OC San
Orange County Sanitation District
Cost of Service Rate Study
Cost of Service Summary
Exhibit 13 - Summary of Cost Allocation
Description
eneral Users Permitted Users Wastehaulers
Revenues at Present Rates
$336,448,278
$321,495,913
$14,202,366
$750,000
Less: Allocated O&M Expenses
$348,223,968
$331,698,920
$15,942,363
$582,685
Balance/(Deficency) of Rates
($11,775,690)
($10,203,007)
($1,739,998)
$167,315
Required % Change in Rates 3.5%1 3.2% 12.3% -22.3%
Page 2 of 3
10/29/2022 5YR47 OC San
Orange County Sanitation District
Cost of Service Rate Study
Cost of Service Summary
Exhibit 14 - Average Unit Cost
Description
Volume (kgal)
Strength Related
BOD $/Lbs
TSS $/Lbs
Rate per EDU (doesn't account for Strength)
Volume Rate (Simple)
BOD Rate (Simple)
TSS Rate (Simple)
Total
Basic Data:
Annual Water Consumption(/Kgal)
BOD (Lbs)
TSS (Lbs)
Number of Accounts
Equivelant Residential Unit
Weighted Customer
Wastehauler Trips
Revenue Requirement
Percent Allocation of Revenue Requirement
Per unit Cost ($/MG 1 $/1,000 Ibs)
Total I General Users Permitted Users Wastehaulers
$1.75
$0.76
$0.86
$1.75
$1.75
$0.79
$0.76
$0.76
$0.76
$0.86
$0.86
$0.86
$1.63
$1.63
$1.63
$1.63
$359.08
$358.01
$389.51
$249.63
$100.11
$99.47
$120.21
$2.81
112.59
108.12
213.42
115.85
146.38
150.42
55.89
130.98
$359.08
$358.01
$389.51
$249.63
55,375,341
52,560,962
2,806,046
8,333
143,118,077
131,313,501
11,450,126
354,450
164,583,744
161,577,388
2,651,906
354,450
558,973
558,663
309
1
969,764
926,501
40,929
2,334
558,973
558,663
309
1
7,940
Total
Flow
BOD
TSS
$348,223,968 $97,082,934 $109,182,237 $141,958,798
100.0% 27.9% 31.4% 40.8%
$1,753.18 $ 762.88 $ 862.53
$1.75 $0.76 $0.86
44.88%
10/29/2022 59R47 OC San
Orange County Sanitation District
Cost of Service Rate Study
Rate Design
Exhibit 15 - Use Code Rate Calculation
General Users
% _oT EDU
Current Rate
FY 2022-23
FY 2023-24
FY 2024-25
FY 2025-26
FY 2026-27
Proposed Rates
FY 2027-28
FY 2028-29
FY 2029-30
FY 2030-31
Page 1 of 5
FY 2031-32
000 - CONVERSION-C/I, RURAL PC LIEN DATE
100%
347.00
358.00
371.00
384.00
397.00
411.00
425.00
440.00
455.00
471.00
001 - VACANT LAND PARCEL
0%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
002 - ONE RESIDENCE
100%
347.00
358.00
371.00
384.00
397.00
411.00
425.00
440.00
455.00
471.00
003 - TWO OR MORE RESIDENCES
70%
242.90
250.60
259.70
268.80
277.90
287.70
297.50
308.00
318.50
329.70
004 - MISCELLANEOUS IMPROVEMENTSONLY
100%
347.00
358.00
371.00
384.00
397.00
411.00
425.00
440.00
455.00
471.00
005 - COMMON AREA PARCEL
0%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
006 - "HOLD" PARCEL
0%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
007-MOBILEHOME
50%
173.50
179.00
185.50
192.00
198.50
205.50
212.50
220.00
227.50
235.50
008 - EQUIVALENT TO VACANT
0%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
010 - DUPLEX ONLY
70%
242.90
250.60
259.70
268.80
277.90
287.70
297.50
308.00
318.50
329.70
011- TRIPLEX ONLY
70%
242.90
250.60
259.70
268.80
277.90
287.70
297.50
308.00
318.50
329.70
012-04-UNITS ONLY
70%
242.90
250.60
259.70
268.80
277.90
287.70
297.50
308.00
318.50
329.70
013 - APARTMENTS ONLY
70%
242.90
250.60
259.70
268.80
277.90
287.70
297.50
308.00
318.50
329.70
014 - 17-25 UNITS ONLY
70%
242.90
250.60
259.70
268.80
277.90
287.70
297.50
308.00
318.50
329.70
015 - 26-40 UNITS ONLY
70%
242.90
250.60
259.70
268.80
277.90
287.70
297.50
308.00
318.50
329.70
016 - 41-99 UNITS ONLY
70%
242.90
250.60
259.70
268.80
277.90
287.70
297.50
308.00
318.50
329.70
017 - 100 OR MORE UNITS
70%
242.90
250.60
259.70
268.80
277.90
287.70
297.50
308.00
318.50
329.70
018 - DEVELOPED WITH A MIX OF FORM TYPES
70%
242.90
250.60
259.70
268.80
277.90
287.70
297.50
308.00
318.50
329.70
019 -SF WITH 1 OR 2 RENTAL UNITS
85%
294.95
304.30
315.35
326.40
337.45
349.35
361.25
374.00
386.75
400.35
020 - AMUSEMENT PARKS
144%
499.68
515.52
534.24
552.96
571.68
591.84
612.00
633.60
655.20
678.24
021 - AUTOMOBILE DEALERSHIP
41%
142.27
146.78
152.11
157.44
162.77
168.51
174.25
180.40
186.55
193.11
022-AUTO REPAIR SHOP
41%
142.27
146.78
152.11
157.44
162.77
168.51
174.25
180.40
186.55
193.11
023 -AUTOMOTIVE SERVICE
41%
142.27
146.78
152.11
157.44
162.77
168.51
174.25
180.40
186.55
193.11
024 - USED CAR LOT
41%
142.27
146.78
152.11
157.44
162.77
168.51
174.25
180.40
186.55
193.11
026-AIRPORT AND RELATED BUILDINGS
53%
183.91
189.74
196.63
203.52
210.41
217.83
225.25
233.20
241.15
249.63
028 - BOWLING ALLEYS
112%
388.64
400.96
415.52
430.08
444.64
460.32
476.00
492.80
509.60
527.52
029- CONVENTIONAL CAR WASH
796%
2,762.12
2,849.68
2,953.16
3,056.64
3,160.12
3,271.56
3,383.00
3,502.40
3,621.80
3,749.16
030 - COIN OPERATED CAR WASH
151%
523.97
540.58
560.21
579.84
599.47
620.61
641.75
664.40
687.05
711.21
032 - CEMETERY AND RELATED BUILDINGS
101%
350.47
361.58
374.71
387.84
400.97
415.11
429.25
444.40
459.55
475.71
10/29/2022 53 0aft 7 OC San
Orange County Sanitation District
Cost of Service Rate Study
Rate Design
Exhibit 15 - Use Code Rate Calculation
Page 2 of 5
Current Rate
Proposed Rates
General Users
% o EDU
FY 2022-23
FY 2023-24
FY 2024-25
FY 2025-26
FY 2026-27
FY 2027-28
FY 2028-29
FY 2029-30
FY 2030-31
FY 2031-32
033- CHURCH BUILDINGS
20%
69.40
71.60
74.20
76.80
79.40
82.20
85.00
88.00
91.00
94.20
034 - DORMITORY
97%
336.59
347.26
359.87
372.48
385.09
398.67
412.25
426.80
441.35
456.87
035 - ENTERTAINMENT CENTER
144%
499.68
515.52
534.24
552.96
571.68
591.84
612.00
633.60
655.20
678.24
036- FINANCIAL BUILDINGS
27%
93.69
96.66
100.17
103.68
107.19
110.97
114.75
118.80
122.85
127.17
037 - FRATERNAL BUILDINGS
51%
176.97
182.58
189.21
195.84
202.47
209.61
216.75
224.40
232.05
240.21
038 - FUNERAL HOME
101%
350.47
361.58
374.71
387.84
400.97
415.11
429.25
444.40
459.55
475.71
039 - GOLF COURSE
41%
142.27
146.78
152.11
157.44
162.77
168.51
174.25
180.40
186.55
193.11
040- HEALTH CLUB
29%
100.63
103.82
107.59
111.36
115.13
119.19
123.25
127.60
131.95
136.59
042 - HOSPITAL
97%
336.59
347.26
359.87
372.48
385.09
398.67
412.25
426.80
441.35
456.87
043 - HIGH DEMAND HOTEL/MOTEL
97%
336.59
347.26
359.87
372.48
385.09
398.67
412.25
426.80
441.35
456.87
044 - LUMBER/CONST. MATERIALSYARD
17%
58.99
60.86
63.07
65.28
67.49
69.87
72.25
74.80
77.35
80.07
045 - MARINAS
53%
183.91
189.74
196.63
203.52
210.41
217.83
225.25
233.20
241.15
249.63
047 - SUPERMARKET
151%
523.97
540.58
560.21
579.84
599.47
620.61
641.75
664.40
687.05
711.21
048 - CONVENIENCE MARKET
151%
523.97
540.58
560.21
579.84
599.47
620.61
641.75
664.40
687.05
711.21
050 - SINGLE MEDICAL BLDGS TO 3 STORIES
124%
430.28
443.92
460.04
476.16
492.28
509.64
527.00
545.60
564.20
584.04
051 - SMALL MEDICAL CENTER
124%
430.28
443.92
460.04
476.16
492.28
509.64
527.00
545.60
564.20
584.04
052 - MEDICAL CENTER COMPLEX
124%
430.28
443.92
460.04
476.16
492.28
509.64
527.00
545.60
564.20
584.04
053 - HIGH RISE MEDICAL
124%
430.28
443.92
460.04
476.16
492.28
509.64
527.00
545.60
564.20
584.04
054 - CONVERTED RESIDENCE TO MED OFFICE
124%
430.28
443.92
460.04
476.16
492.28
509.64
527.00
545.60
564.20
584.04
055 - MOBILEHOME PARK
50%
173.50
179.00
185.50
192.00
198.50
205.50
212.50
220.00
227.50
235.50
056 - LOW DEMAND HOTEL/MOTEL
70%
242.90
250.60
259.70
268.80
277.90
287.70
297.50
308.00
318.50
329.70
057-MOTORCYCLE/SMALL VEHICLEBLDGS
41%
142.27
146.78
152.11
157.44
162.77
168.51
174.25
180.40
186.55
193.11
058-NURSERIES
10%
34.70
35.80
37.10
38.40
39.70
41.10
42.50
44.00
45.50
47.10
060- NURSING HOME
102%
353.94
365.16
378.42
391.68
404.94
419.22
433.50
448.80
464.10
480.42
061 - CONVALESCENT HOSPITALS
102%
353.94
365.16
378.42
391.68
404.94
419.22
433.50
448.80
464.10
480.42
062 - CONVERTED RES USED ASNURSING HOME
102%
353.94
365.16
378.42
391.68
404.94
419.22
433.50
448.80
464.10
480.42
063 - LOW RISE RETIREMENT BUILDING(S)
70%
242.90
250.60
259.70
268.80
277.90
287.70
297.50
308.00
318.50
329.70
064 - HIGH RISE RETIREMENT BUILDING(S)
70%
242.90
250.60
259.70
268.80
277.90
287.70
297.50
308.00
318.50
329.70
065 - SINGLE OFFICE BLDGS TO 3STORIES
41%
142.27
146.78
152.11
157.44
162.77
168.51
174.25
180.40
186.55
193.11
066 - SMALL OFFICE CENTER
41%
142.27
146.78
152.11
157.44
162.77
168.51
174.25
180.40
186.55
193.11
10/29/2022 54 DrrgfL OC San
Orange County Sanitation District Page 3 of 5
Cost of Service Rate Study
Rate Design
Exhibit 15 - Use Code Rate Calculation
Current Rate Proposed Rates
General Users I % of EDU FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32
067 - OFFICE COMPLEX
41%
142.27
146.78
152.11
157.44
162.77
168.51
174.25
180.40
186.55
193.11
068 - HIGH RISE OFFICE
30%
104.10
107.40
111.30
115.20
119.10
123.30
127.50
132.00
136.50
141.30
069 - CONVERTED RESIDENCE TOOFFICE
41%
142.27
146.78
152.11
157.44
162.77
168.51
174.25
180.40
186.55
193.11
071- PARKING GARAGE
17%
58.99
60.86
63.07
65.28
67.49
69.87
72.25
74.80
77.35
80.07
072 - PAVED PARKING LOT
17%
58.99
60.86
63.07
65.28
67.49
69.87
72.25
74.80
77.35
80.07
073 - RECREATION
143%
496.21
511.94
530.53
549.12
567.71
587.73
607.75
629.20
650.65
673.53
074 - RECREATION VEHICLE PARK
27%
93.69
96.66
100.17
103.68
107.19
110.97
114.75
118.80
122.85
127.17
076- RESTAURANT -LOW DEMAND
300%
1,041.00
1,074.00
1,113.00
1,152.00
1,191.00
1,233.00
1,275.00
1,320.00
1,365.00
1,413.00
077 - RESTAURANT - COFFEE SHOP
600%
2,082.00
2,148.00
2,226.00
2,304.00
2,382.00
2,466.00
2,550.00
2,640.00
2,730.00
2,826.00
078 - RESTAURANT - DINNER HOUSE
600%
2,082.00
2,148.00
2,226.00
2,304.00
2,382.00
2,466.00
2,550.00
2,640.00
2,730.00
2,826.00
079 - RESTAURANT - CONVERSION FROM SFR
600%
2,082.00
2,148.00
2,226.00
2,304.00
2,382.00
2,466.00
2,550.00
2,640.00
2,730.00
2,826.00
081- PRE-SCHOOLS, NURSERY ORCHILDCARE
82%
284.54
293.56
304.22
314.88
325.54
337.02
348.50
360.80
373.10
386.22
082 - PRIVATE SCHOOLS
82%
284.54
293.56
304.22
314.88
325.54
337.02
348.50
360.80
373.10
386.22
083 - AUTOMOTIVE SERVICE STATION
41%
142.27
146.78
152.11
157.44
162.77
168.51
174.25
180.40
186.55
193.11
084 - MARINE SERVICE STATION
41%
142.27
146.78
152.11
157.44
162.77
168.51
174.25
180.40
186.55
193.11
085 - COMBIN:SERVICESTATION/RESTAURANT
100%
347.00
358.00
371.00
384.00
397.00
411.00
425.00
440.00
455.00
471.00
086-COMBIN:SERVICESTATION/CONVENIENCE
41%
142.27
146.78
152.11
157.44
162.77
168.51
174.25
180.40
186.55
193.11
088 - LOW DEMAND CENTER
53%
183.91
189.74
196.63
203.52
210.41
217.83
225.25
233.20
241.15
249.63
089 - AVERAGE DEMAND CENTER
139%
482.33
497.62
515.69
533.76
551.83
571.29
590.75
611.60
632.45
654.69
090- HIGH FLOW CENTER
226%
784.22
809.08
838.46
867.84
897.22
928.86
960.50
994.40
1,028.30
1,064.46
092-SKATING RINKS
112%
388.64
400.96
415.52
430.08
444.64
460.32
476.00
492.80
509.60
527.52
094 - DEPARTMENT STORE
23%
79.81
82.34
85.33
88.32
91.31
94.53
97.75
101.20
104.65
108.33
095-DISCOUNT STORE
23%
79.81
82.34
85.33
88.32
91.31
94.53
97.75
101.20
104.65
108.33
096 - UNATTACHED SINGLE STORE
23%
79.81
82.34
85.33
88.32
91.31
94.53
97.75
101.20
104.65
108.33
097 - STRIP STORE
23%
79.81
82.34
85.33
88.32
91.31
94.53
97.75
101.20
104.65
108.33
098 - STORE WITH OFFICES OR LIVING UNITS
82%
284.54
293.56
304.22
314.88
325.54
337.02
348.50
360.80
373.10
386.22
099 - STORE WITH OFFICES UPSTAIRS
82%
284.54
293.56
304.22
314.88
325.54
337.02
348.50
360.80
373.10
386.22
100 - DRIVE-IN THEATER
10%
34.70
35.80
37.10
38.40
39.70
41.10
42.50
44.00
45.50
47.10
101 - UNATTACHED THEATER
51%
176.97
182.58
189.21
195.84
202.47
209.61
216.75
224.40
232.05
240.21
103- CHEMICAL TANK AND BULKSTORAGE
100%
347.00
358.00
371.00
384.00
397.00
411.00
425.00
440.00
455.00
471.00
10/29/2022 D 5rrift� OC San
Orange County Sanitation District
Cost of Service Rate Study
Rate Design
Exhibit 15 - Use Code Rate Calculation
General Users
% o EDU
Current Rate
FY 2022-23
FY 2023-24
FY 2024-25
FY 2025-26
FY 2026-27
Proposed Rates
FY 2027-28
FY 2028-29
FY 2029-30
FY 2030-31
Page 4 of 5
FY 2031-32
104 - FOOD PROCESSING PLANT
100%
347.00
358.00
371.00
384.00
397.00
411.00
425.00
440.00
455.00
471.00
105 - COLD STORAGE PLANT
100%
347.00
358.00
371.00
384.00
397.00
411.00
425.00
440.00
455.00
471.00
106 - FACTORY
100%
347.00
358.00
371.00
384.00
397.00
411.00
425.00
440.00
455.00
471.00
107 - LIGHT INDUSTRIAL - SINGLETENANT
50%
173.50
179.00
185.50
192.00
198.50
205.50
212.50
220.00
227.50
235.50
108 - LIGHT INDUSTRIAL - MULTI TENANT
50%
173.50
179.00
185.50
192.00
198.50
205.50
212.50
220.00
227.50
235.50
109 - RESEARCH AND DEVELOPMENT
50%
173.50
179.00
185.50
192.00
198.50
205.50
212.50
220.00
227.50
235.50
110 - WAREHOUSE - SINGLE TENANT
17%
58.99
60.86
63.07
65.28
67.49
69.87
72.25
74.80
77.35
80.07
111 - WAREHOUSE - MULTI TENANT
17%
58.99
60.86
63.07
65.28
67.49
69.87
72.25
74.80
77.35
80.07
112 - STEEL BUILDING
7%
24.29
25.06
25.97
26.88
27.79
28.77
29.75
30.80
31.85
32.97
113-MINI-WAREHOUSE
7%
24.29
25.06
25.97
26.88
27.79
28.77
29.75
30.80
31.85
32.97
114 - INDUSTRIAL PARK
50%
173.50
179.00
185.50
192.00
198.50
205.50
212.50
220.00
227.50
235.50
115 - RECREATIONAL VEHICLE STORAGE YARD
17%
58.99
60.86
63.07
65.28
67.49
69.87
72.25
74.80
77.35
80.07
116-TRUCK TERMINAL
17%
58.99
60.86
63.07
65.28
67.49
69.87
72.25
74.80
77.35
80.07
118 - GOVERNMENTAL USEVACANT/DEVELOPED
82%
284.54
293.56
304.22
314.88
325.54
337.02
348.50
360.80
373.10
386.22
119 - PUBLIC UTILITY
100%
347.00
358.00
371.00
384.00
397.00
411.00
425.00
440.00
455.00
471.00
120 - WATER MUTUAL OR COMPANY
100%
347.00
358.00
371.00
384.00
397.00
411.00
425.00
440.00
455.00
471.00
121 - PARCEL OF MINIMAL OR NO VALUE
0%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
122 - SUBSURFACE PARCELS
0%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
124-OIL/MINERAL RIGHTS
0%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
125 - MINERAL RIGHTS EQUIPMENT
0%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
126 - VACANT COMMON AREA-IMPSALLOCATED
0%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
127 -
0%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
128 -
0%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
222 - OFFICE CONDO W/OUT INDIVIDUAL BATHROOMS
21%
72.87
75.18
77.91
80.64
83.37
86.31
89.25
92.40
95.55
98.91
223 - LAUNDROMAT
1800%
6,246.00
6,444.00
6,678.00
6,912.00
7,146.00
7,398.00
7,650.00
7,920.00
8,190.00
8,478.00
224-NIGHTCLUB
200%
694.00
716.00
742.00
768.00
794.00
822.00
850.00
880.00
910.00
942.00
225 - UNITED STATES POST OFFICE
35%
121.45
125.30
129.85
134.40
138.95
143.85
148.75
154.00
159.25
164.85
333 - IRVINE RANCH WATER DISTRICT
0%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
555 - OPEN AIR FACILITIES
1133%
3,931.51
4,056.14
4,203.43
4,350.72
4,498.01
4,656.63
4,815.25
4,985.20
5,155.15
5,336.43
666 - UNASSIGNED VACANT
0%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
777 - SEPTIC TANK
0%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
888 - CONVERSION -COMPOSITE PROPERTY
100%
347.00
358.00
371.00
384.00
397.00
411.00
425.00
440.00
455.00
471.00
999 - Manually Calculated Fee
100%
347.00
358.00
371.00
384.00
397.00
411.00
425.00
440.00
455.00
471.00
10/29/2022 5 Drraft7 OC San
Orange County Sanitation District
Page 5 of 5
Cost of Service Rate Study
Rate Design
Exhibit 15 - Use Code Rate Calculation
Current Rate
Proposed Rates
General Users
% o EDU
FY 2022-23
FY 2023-24
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32
1.753199412
$0.000020 0.001%
Permit User (industrial)
Allocated Costs
Property Tax Adj
Net Costs
Units
Biochemical Oxygen Demand (1,000lbs)
$8,735,098
$0
$8,735,098
11,450
Total Suspended Solids (1,000lbs)
2,287,354
0
2,287,354
2,652
Volume (Million Gallons)
4,919,911
0
4,919,911
2,806
Total
$15,942,363
$0
$15,942,363
Proposed Rate
Current Rate
FY 2023-24
FY 2024-25
FY 2025-26
FY 2026-27
FY 2027-28
FY 2028-29
FY 2029-30
FY 2030-31
FY 2031-32
COSA Results
5 Year Rate Transition
Biochemical Oxygen Demand (1,000lbs)
$667.99
$705.11
$744.28
$785.64
$829.29
$875.37
$906.06
$937.78
$970.60
$1,004.57
Total Suspended Solids (1,000lbs)
777.00
815.53
855.98
898.42
942.98
989.74
1,024.42
1,060.27
1,097.38
1,135.79
Volume (Million Gallons)
1,601.28
1,676.10
1,754.41
1,836.38
1,922.18
2,011.99
2,082.40
2,155.28
2,230.72
2,308.79
Biochemical Oxygen Demand %Change
5.6%
5.6%
5.6%
5.6%
5.6%
3.5%
3.5%
3.5%
3.5%
Total Suspended Solids %Change
5.0%
5.0%
5.0%
5.0%
5.0%
3.5%
3.5%
3.5%
3.5%
Volume (Million Gallons) % Change
4.7%
4.7%
4.7%
4.7%
4.7%
3.5%
3.5%
3.5%
3.5%
Wastehaulers Treatment Charge
Proposed Rate
Current Rate
FY 2023-24
FY 2024-25
FY 2025-26
FY 2026-27
FY 2027-28
FY 2028-29
FY 2029-30
FY 2030-31
FY 2031-32
In -County
Treatment
$0.040
$0.040
$0.040
$0.040
$0.040
$0.040
$0.040
$0.040
$0.040
Adminstrative
0.050
0.050
0.050
0.050
0.050
0.050
0.050
0.050
0.050
Capital Charge
NA
NA
NA
NA
NA
NA
NA
NA
NA
Total Wastehauler Charge
$0.09
0.090
0.090
0.090
0.090
0.090
0.090
0.090
0.090
0.090
Out of County
Treatment
$0.040
$0.040
$0.040
$0.040
$0.040
$0.040
$0.040
$0.040
$0.040
Adminstrative
0.050
0.050
0.050
0.050
0.050
0.050
0.050
0.050
0.050
Capital Charge
0.230
0.240
0.240
0.240
0.240
0.240
0.240
0.240
0.240
Total Wastehauler Charge
$0.20
$0.320
$0.330
$0.330
$0.330
$0.330
$0.330
$0.330
$0.330
$0.330
10/29/2022 5 J)rrgft� OC San
Orange County Sanitation District - 2022
Exhibit 1
Present and Calculated Capital Facilities Capacity Charge
Present
Calculated
$
Use Category
Ratio CFCC"'
CFCC,2,
Difference Change
2023
Single Family Residential (SFR), Per Unit*
5+ Bedrooms
1.39 $7,949
$7,739
($210) -2.6%
4+ Bedrooms
1.19 6,806
6,626
(180) -2.6%
3+ Bedrooms, *Base Charge 1.00 5,719 5,568 (151) -2.6%
2+ Bedrooms
0.81
4,633
4,511
(122)
-2.6%
1+ Bedrooms
0.62
3,545
3,452
(94)
-2.6%
Multi -Family Residential (MFR)
4+ Bedrooms
1.08
$6,177
$6,014
($163)
-2.6%
3+ Bedrooms
0.89
5,090
4,956
(134)
-2.6%
2+ Bedrooms
0.70
4,004
3,898
(106)
-2.6%
1+ Bedrooms
0.50
2,859
2,783
(76)
-2.7%
Studio
0.32
1,829
1,781
(48)
-2.6%
Non -Residential, Residential Accessory Structures, and
Accessory Dwelling Units, Per 1,000 square feet (3)
Low Demand
$360
$242
($118)
-32.8%
Average Demand
2,234
1,485
(749)
-33.5%
High Demand
5,309
3,521
($1,788)
-33.7%
NOTES:
(1) Present CFCC effective July 1, 2022.
(2) Calculated CFCC based on "Combined" methodology established in Water Environment Federation (WEF) Manual
of Practice No. 27, 4th Edition, p. 206-211.
(3) Average demand is Commercial per 1,000 sq. ft. See Exhibit 3.
Page 1 of 11
Orange County Sanitation District - 2022
Exhibit 2
Supplemental Capital Facilities Capacity Charge
Calculated Supplemental Capital Facilities Capacity Charge
Rate Years Total "'
Flow (gpd)
BOD (mg/L)
TSS (mg/L)
A Value of Existing and Future Assets, $ Per Million
$6,842
$3,319
$1,881
$1,642
B Total EDUs
1,228,758
1,228,758
1,228,758
1,228,758
C SCFCC per EDU (A - B)
$5,568
$2,701
$1,531
$1,336
D 30-Year Amortized SCFCC (2)
3.4% 30
$144
$82
$71
E EDU Basis 185 288 290
0.4481 0.4503
gpd Ibs/day (3) Ibs/day (3)
F SCFCC (D - E _ 365 Days) $0.002140 $0.500628 $0.434827
per gallon per lb. per lb.
Present and Calculated Supplemental Capital Facilities Capacity Charge
Use Category
Present
SCFCC(4)
Calculated
SCFCC
$ %
Difference Change
2022
Daily Charge (5)
FLOW
$0.001996
$0.002140
$0.000144 7.2%
BOD
$0.481210
$0.500628
$0.019418 4.0%
TSS
$0.270840
$0.434827
$0.163987 60.5%
NOTES:
(1) Calculated CFCC based on "Combined" methodology established in Water Environment Federation (WEF) Manual
of Practice No. 27, 4th Edition, p. 206-211.
(2) Bond Buyer's 20 Bond Index as of July 2022.
(3) Calculated pounds equals (annual flow (x) 748 (x) strength factor mg/I (x) 8.34) / 1,000,000
(4) Present SCFCC Ordinance No. OCSD-57, Table D, for July 1, 2022.
(5) 2.10 (i) an increase of discharge flow of 25,000 gallons per day (gpd), or 25% per day over its established
baseline whichever is less; 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 discharge or
the District.
Page 2 of 11
Orange County Sanitation District - 2022
Exhibit 3
Development of Calculated Capital Facilities Capacity Charge
Description FLOW BOD TSS TOTAL
BUY -IN (Existing)
Assets "' (RCNLD)
Sewage Collection Facilities
$503,494,522 +
$55,943,836 +
$0 =
$559,438,358
Sewage Treatment Facilities
$747,036,211 +
$675,868,426 +
$535,137,514 =
$1,958,042,151
Effluent Disposal
85,569,158 +
0 +
0 =
85,569,158
Solids Disposal Facility
0 +
3,974,804 +
11,924,411 =
15,899,214
Total Treatment
$832,605,368
$679,843,229
$547,061,925
$2,059,510,523
Managed by IRWD
23,135,681 +
2,570,631 +
0 =
25,706,312
Total Assets ")(RCNLD)
$1,359,235,570
$738,357,696
$547,061,925
$2,644,655,192
Plus: Construction Work In Progress (2)
190,381,235 +
110,980,326 +
106,322,733 =
407,684,294
Total Assets
$1,549,616,806
$849,338,022
$653,384,658
$3,052,339,486
Less: Outstanding Debt Principal (3)
($368,799,051) +
($214,986,727) +
($205,964,222) =
($789,750,000)
Plus: Reserves (4)
$449,058,744 +
$261,773,097 +
$250,787,075 =
$961,618,916
TOTAL BUY -IN (Existing)
$1,629,876,499 +
$896,124,392 +
$698,207,511 =
$3,224,208,402
INCREMENTAL (FUTURE) 6
$1,689,310,256 +
$984,761,980 +
$943,433,755 =
$3,617,505,992
TOTAL BUY -IN AND INCREMENTAL
$3,319,186,756
$1,880,886,372
$1,641,641,266
$6,841,714,393
Divided (+) by Total EDUs (6)
1,228,758
1,228,758
1,228,758
1,228,758
TOTAL CAPITAL FACILITIES CAPACITY CHARGE (7)
$2,701
$1,336
$5,568
Present Capital Facilities Capacity Charge 2023 8
$2,065
$1,990
$1,665
$5,719
$ Change
($151)
Residential Percentage EDUs (9)
65.5%
65.5%
65.5%
65.5%
$ percentage share
$2,174,657,546
$1,232,315,035
$1,075,566,947
$4,482,539,528
Total Residential EDUs
805,055
805,055
805,055
805,055
$ per EDU CFCC
$2,701
$1,531
$1,336
$5,568
Present Capital Facilities Capacity Charge 2023 (8)
$2,065
$1,990
$1,665
$5,719
$ Change
$636
($459)
($328)
($151)
Commercial/Industrial Percentage EDUs i10i
34.5%
34.5%
34.5%
34.5%
$ percentage share
$1,144,536,103
$648,575,244
$566,077,728
$2,359,189,075
Total Commercial -Industrial Square Footage (1,000 sq ft)
670,099
670,099
670,099
670,099
$ per 1,000 sq. ft. CFCC
$1,708
$968
$845
$3,521
Present Capital Facilities Capacity Charge 2023 (8)
$1,314
$1,265
$1,059
$3,638
$ Change
$394
($297)
($214)
($117)
NOTES:
(1) Asset listing as of June, 2021, service date of asset and Sept 2022 ENR, CCI for 20-City Average, See Exhibit 7.
(2) Construction work in progress as of June 2021. See Exhibit 3.
(3) Outstanding debt service principal as of June 2022. See Exhibit 5. Flow, BOD, TSS split based on % of CIP see Exhibit 8.
(4) Cash reserve levels as of June 2022. See Exhibit 6. Flow, BOD, TSS split based on % of CIP see Exhibit 8.
(5) Future projects based on Ten -Year CIP from 2021/22 to 2031/32. See Exhibit 8.
(6) Existing and future EDUs based on capacity. See Exhibit 7.
(7) Calculated CFCC based on "Combined" methodology established in Water Environment Federation (WEF) Manual
of Practice No. 27, 4th Edition, p. 206-211.
(8) Present CFCC as of July 1, 2022 Residential, 3+ Bedrooms, *Base Charge
(9) Percentage of residential EDUs see Exhibit 7.
(10) Percentage of commercial/industrial EDUs and total square footage per EDU see Exhibit 7.
Page 3 of 11
Orange County Sanitation District - 2022
Exhibit 4
Development of Construction Work in Progress
LA ENR-CCI 13,120 September 2022
June 30, 2021 ENR 2022 (2) $
CATEGORYM DATE COST FACTOR COST FLOW BOD TSS FLOW BOD TSS
Construction Work in Progress 06/01/2021 $401,200,044 1.02 $407,684,294 47% 27% 26% $190,381,235 $110,980,326 $106,322,733
TOTAL $401,200,044 $407,684,294
NOTES:
(1) Construction work in progress as of June 30, 2021 CAFR, page 29.
(2) CWIP allocated based on overall allocation for CIP. See Exhibit 8.
$190,381,235 $110,980,326 $106,322,733
Page 4 of 11
Orange County Sanitation District - 2022
Exhibit 5
Development of Debt Credit (Outstanding debt principal only)
2010A Build 2010C Build 2014A 2015A 2016A 2017A 2021A 2022A (TOTAL PRINCIPAL
Year America Bonds America Bonds Refunding Refunding Refunding Refunding Refunding Refunding (1)
FY 2022-23
0
0
0
0
0
0
0
0
0
FY 2023-24
0
0
9,085,000
0
5,370,000
0
17,125,000
0
31,580,000
FY 2024-25
0
0
9,545,000
0
5,635,000
0
17,940,000
0
33,120,000
FY 2025-26
0
0
10,025,000
0
5,915,000
0
18,890,000
0
34,830,000
FY 2026-27
0
0
10,525,000
0
6,210,000
15,115,000
4,595,000
0
36,445,000
FY 2027-28
0
0
0
15,240,000
6,525,000
15,830,000
4,825,000
0
42,420,000
FY 2028-29
0
0
0
16,045,000
6,845,000
16,580,000
5,070,000
0
44,540,000
FY 2029-30
0
0
0
15,965,000
7,190,000
18,290,000
5,320,000
0
46,765,000
FY 2030-31
0
5,735,000
0
6,215,000
7,570,000
0
5,590,000
22,485,000
47,595,000
FY 2031-32
0
17,095,000
0
0
7,950,000
0
5,865,000
22,805,000
53,715,000
FY 2032-33
0
17,895,000
0
0
8,350,000
0
6,160,000
36,330,000
68,735,000
FY 2033-34
9,590,000
9,130,000
0
17,180,000
8,760,000
0
6,470,000
0
51,130,000
FY 2034-35
10,145,000
9,440,000
0
18,040,000
9,205,000
0
6,790,000
0
53,620,000
FY 2035-36
10,735,000
9,770,000
0
18,940,000
9,660,000
0
7,130,000
0
56,235,000
FY 2036-37
11,355,000
10,100,000
0
19,885,000
10,145,000
0
0
0
51,485,000
FY 2037-38
12,015,000
10,430,000
0
0
10,550,000
0
0
0
32,995,000
FY 2038-39
12,710,000
10,770,000
0
0
10,975,000
0
0
0
34,455,000
FY 2039-40
13,450,000
11,125,000
0
0
0
0
0
0
24,575,000
FY 2040-41
0
20,805,000
0
0
0
0
0
0
20,805,000
FY 2041-42
0
12,430,000
0
0
0
0
0
0
12,430,000
FY 2042-43
0
9,795,000
0
0
0
0
0
0
9,795,000
FY 2043-44
0
2,480,000
0
0
0
0
0
0
2,480,000
TOTAL
$80,000,000
$157,000,000
$39,180,000
$127,510,000
$126,855,000
$65,815,000
$111,770,000
$81,620,000
$789,750,000
NOTES:
(1) Outstanding principal balance as of 2022 provided by OCSD. Payment date for Bonds is Feb 1st.
2010A acquisition, construction, and installation of additional improvements made to the wastewater system.
2010C acquisition, construction, and installation of additional improvements made to the wastewater system.
2014A refund $93,930,000, 2007 Series B
2015A refund $152,990,000, 2007 Series B
2016A refund $162,780,000, 2009 Series A
2017A refund $91,620,000, 2007 Series A
2021A
2022A
Page 5 of 11
Orange County Sanitation District - 2022
Exhibit 6
Summary of Reserve Funds
For the Year Ended June 30, 2022
Account #
CFCC
Total Eligible (1) CFCC
CASH RESERVES $961,618,916
TARGET RESERVES
50% Next Year Operating Expense
$100,572,351
10% Next Year Operating Expense
20,114,470
100% Next Year AUG COP Svc.
19,266,567
50% average ten-year CIP Balance
153,752,792
Debt Svc @ 10% Outstanding COP
78,975,000
Self Funded Insurance @ $100M
100,000,000
Repl & Refurb
75,000,000
TOTAL TARGET RESERVES
$547,681,180
100% $961,618,916
0%
$0
0%
0
0%
0
0%
0
0%
0
0%
0
0%
0
$0
BALANCE $413,937,736 $961,618,916
NOTES:
(1) Reserves that are not debt or CIP related levels.
Page 6 of 11
Orange County Sanitation District - 2022
Exhibit 7
Development of Equivalent Dwelling Units
Permit Rated
Capacity Dry
Weather Flow
Treatment Plant - Permit Capacity
(MGD)
MGD
Plant 1 Fountain Valley Ill
182.00
Plant 2 Huntington Beach (2)
150.00
Net (3)
332.00
332.00
SAWPA") Rights (17 mgd purchased)
(30.00)
RA 14 (4)
(10.00)
Urban Dry Weather Runoffi4l
10.00
Total
282.00
EDU
Average Household Gallons per Person Per Day (GPCD) I51
75
Number of Persons per Household (6)
3.1
Total Gallons per EDU (6)
230
EQUIVALENT
DWELLING UNITS
Total Capacity Average Daily Flow
EDU Calculation
(MGD) gallons Per EDU I6i
Total EDUs
% of
% Growth
Equivalent Dwelling Units - Existing
Residential
630,912
65.52%
Commercial
292,199
30.34%
Industrial
39,854
4.14%
Equivalent Dwelling Units - Existing
221.00 230
962,963
100.00%
78.37%
Equivalent Dwelling Units - Future
Residential
174,143
65.52%
Commercial
80,652
30.34%
Industrial
11,000
4.14%
Equivalent Dwelling Units - Future
61.00 230
265,795
100.00%
21.63%
Buildout EDU's
282.00 230
1,228,758
100.00%
Total Square Feet for Commercial and Industrial
Assumption of Square Foot per EDU
1,581.52 square feet per EDU
Total Commercial and Indusrial EDUs
423,706 EDUs
Total Square Feet (Comm/Ind EDUs X Sq. Ft. per EDU) =1,000
670,099 total square feet per 1,000
NOTES:
(1) 2017 Master Plan, Plant 1 Chapter 3, page 3-2,Table 3-2; PWWF Rated Capacity of 310 MGD,
net of Sludge Recycle to PCs (7.8 MGD) and GWRS Return to PCs (17.0 MGD). Page 8-21, combined capacity of both plants 660 mgd.
(2) 2017 Master Plan, Plant 2 Chapter 4, page 4-7,PWWF Rated Capacity of 317 MGD,
(3) 2017 Master Plan, Interplant Facilities Chapter 5, page 5-4,lnterplant Design Criteria 375 MGD
Page 8-22, Rated PWWF is Plant 1 at 320 MGD and Plant 2 at 340 MGD. Limited by conveyance by two 90" influent pipes.
(4) 2017 Master Plan, Planning Assumptions Chapter 7, page 7-5,Table 7-3; Maximum SAWPA, RA 14, Urban Runoff.
SAWPA has the rights to purchase up to 30 mgd, they currently have only purchased 17 mgd. See page 7-16.
IRWD, called Revenue Area 14, See page 7-16.
(5) 2017 Master Plan, Planning Assumptions Chapter 7, page 7-4, Table 7-2.
(6) 2020 https://www.census.gov/quickfacts/orangecountycalifornia is 3.0 pph; Table 7-3 average daily flow of 230 for 2035.
(7) 2022 average flow at plant from 2022 rate study data.
Page 7 of 11
Orange County Sanitation District - 2022
Exhibit 8
Development of Capital Improvement Plan
# Project Type
Function
Ten Year CIP Total
Eligible
FLOW
BOD TSS
FLOW
TSS
1 11-33 Edinger Pump Station Replacement
Collection
$17,198,620
100.0%
$17,198,620
90%
10% 0%
$15,478,758
$1,719,862
$0
2 11-34 Slater Pump Station Rehabilitation
Collection
27,336,055
100.0%
27,336,055
90%
10% 0%
24,602,449
2,733,605
0
3 1-23 Santa Ana Trunk Sewer Rehabilitation
Collection
54,479,198
100.0%
54,479,198
90%
10% 0%
49,031,278
5,447,920
0
4 1-24 Greenville Trunk Improvements
Collection
48,557,264
100.0%
48,557,264
90%
10% 0%
43,701,538
4,855,726
0
5 2-49 Taft Branch Improvements
Collection
22,886,903
100.0%
22,886,903
90%
10% 0%
20,598,213
2,288,690
0
6 2-72B Newhope-Placentia Trunk Replacement, Segment B
Collection
1,605,022
100.0%
1,605,022
90%
10% 0%
1,444,520
160,502
0
7 2-73 Yorba Linda Pump Station Removal and Dosing Station Installation
Collection
11,266,000
100.0%
11,266,000
90%
10% 0%
10,139,400
1,126,600
0
8 2-78 Santa Ana Canyon South River Trunk Rehabilitation
Collection
14,115,683
100.0%
14,115,683
90%
10% 0%
12,704,115
1,411,568
0
9 3-60 Knott- Miller Holder - Artesia Branch Rehabilitation
Collection
28,317,000
100.0%
28,317,000
90%
10% 0%
25,485,300
2,831,700
0
10 3-62 Westminster Blvd Force Main Replacement
Collection
7,954,815
100.0%
7,954,815
90%
10% 0%
7,159,333
795,481
0
11 3-64B Los Alamitos Trunk Sewer Rehabilitation
Collection
15,182,248
100.0%
15,182,248
90%
10% 0%
13,664,023
1,518,225
0
12 3-64C Los Alamitos Sub -Trunk and Westside Relief Interceptor Rehabilitation
Collection
56,415,700
100.0%
56,415,700
90%
10% 0%
50,774,130
5,641,570
0
13 3-66 Interstate 405 Widening Project Impacts on OCSD Sewers
Collection
71,348
100.0%
71,348
90%
10% 0%
64,213
7,135
0
14 3-67 Seal Beach Pump Station Replacement
Collection
79,883,908
100.0%
79,883,908
90%
10% 0%
71,895,517
7,988,391
0
15 3-68 Los Alamitos Sub -Trunk Extension
Collection
52,345,584
100.0%
52,345,584
90%
10% 0%
47,111,025
5,234,558
0
16 5-66 Crystal Cove Pump Station Rehabilitation
Collection
13,903,000
100.0%
13,903,000
90%
10% 0%
12,512,700
1,390,300
0
17 5-67 Bay Bridge Pump Station Replacement
Collection
94,295,270
100.0%
94,295,270
90%
10% 0%
84,865,743
9,429,527
0
18 5-68 Newport Beach Pump Station Pressurization Improvements
Collection
2,509,273
100.0%
2,509,273
90%
10% 0%
2,258,346
250,927
0
19 6-20 Fairview Trunk Rehabilitation
Collection
19,176,350
100.0%
19,176,350
90%
10% 0%
17,258,715
1,917,635
0
20 7-63 MacArthur Pump Station Rehabilitation
Collection
9,329,000
100.0%
9,329,000
90%
10% 0%
8,396,100
932,900
0
21 7-64 Main Street Pump Station Rehabilitation
Collection
31,243,000
100.0%
31,243,000
90%
10% 0%
28,118,700
3,124,300
0
22 7-65 Gisler -Red Hill Interceptor and Baker Force Main Rehabilitation
Collection
42,451,815
100.0%
42,451,815
90%
10% 0%
38,206,634
4,245,182
0
23 7-66 Sunflower and Red Hill Interceptor Repairs
Collection
3,632,720
100.0%
3,632,720
90%
10% 0%
3,269,448
363,272
0
24 7-68 MacArthur Force Main Improvements
Collection
6,563,458
100.0%
6,563,458
90%
10% 0%
5,907,112
656,346
0
25 7-69 North Trunk - Yorba Street Sub -Trunk Improvements
Collection
10,854,000
100.0%
10,854,000
90%
10% 0%
9,768,600
1,085,400
0
26 Equipment Equipment Purchases
Collection
14,800,702
100.0%
14,800,702
90%
10% 0%
13,320,632
1,480,070
0
27 FE10-21 Area 02 Craig Regional Park Manhole Improvements
Collection
161,960
100.0%
161,960
90%
10% 0%
145,764
16,196
0
28 FE17-03 Battery Storage System at Plant No. 1
Interplant
1,486
100.0%
1,486
40%
33% 27%
601
491
395
29 FE17-05 Plant 1 ICS Network Extension
Interplant
91,844
100.0%
91,844
40%
33% 27%
37,130
30,318
24,396
30 FE18-06 CenGen Instrument Air Compressors Replacement at Plant No. 1
Interplant
886,537
100.0%
886,537
40%
33% 27%
358,403
292,645
235,488
31 FE18-08 West Trunk Bypass Sewer Realignment
Collection
0
100.0%
0
90%
10% 0%
0
0
0
32 FE18-11 Headworks Explosive Gas Monitoring Systems at Plant No. 1 and No. 2
Headworks
15,818
100.0%
15,818
75%
5% 20%
11,864
791
3,164
33 FE18-12 Erosion Control at Santa Ana River and Hamilton Ave
Collection
51,425
100.0%
51,425
90%
10% 0%
46,283
5,143
0
34 FE18-13 Redhill Relief Sewer Relocation at State Route 55
Collection
2,989,336
100.0%
2,989,336
90%
10% 0%
2,690,402
298,934
0
35 FE18-14 Plant Water Pipeline Replacement in Kinnison, Lindstrom, and Scott Tunnels at Plant No. 2
Interplant
907,384
100.0%
907,384
40%
33% 27%
366,831
299,527
241,026
36 FE18-15 Plant Boiler System Relief at Plant No. 2
Interplant
70,826
100.0%
70,826
40%
33% 27%
28,633
23,380
18,813
37 FE18-16 Truck Loading Basement Drain Modifications at Plant No. 1
Interplant
139,476
100.0%
139,476
40%
33% 27%
56,386
46,041
37,049
38 FE18-19 12KV Distribution B and East RAS Pump Station Roofing Replacement
Interplant
82,085
100.0%
82,085
40%
33% 27%
33,185
27,096
21,804
39 FE18-20 DAFT Air Compressors Replacement at Plant No. 1
Interplant
1,097,587
100.0%
1,097,587
40%
33% 27%
443,725
362,313
291,549
40 FE19-01 Pump Station Portable Generator Connectors
Collection
2,160,864
100.0%
2,160,864
90%
10% 0%
1,944,778
216,086
0
41 FE19-02 Cengen Plant Water Pipe Replacement at Plant No. 1
Interplant
3,748,373
100.0%
3,748,373
40%
33% 27%
1,515,368
1,237,336
995,670
42 FE19-03 Trickling Filter Sludge and Scum Pumps Replacement at Plant No. 1
Trickling Filters
2,685,144
100.0%
2,685,144
0%
100% 0%
0
2,685,144
0
43 FE19-04 Sunflower Pump Replacement at Plant No. 1
Interplant
3,434,259
100.0%
3,434,259
40%
33% 27%
1,388,379
1,133,647
912,232
44 FE19-06 EPSA Motor Cooling Improvements at Plant No. 2
Interplant
1,074,165
100.0%
1,074,165
40%
33% 27%
434,256
354,581
285,327
45 FE19-08 Secondary Treatment VFD Replacements at Plant No. 2
Secondary Sedimentation
2,662,809
100.0%
2,662,809
0%
70% 30%
0
1,863,966
798,843
46 FE19-10 Digesters C, D, F, G and I Gas Balance Lines Replacement at Plant No. 2
Digestion
2,075,516
100.0%
2,075,516
0%
25% 75%
0
518,879
1,556,637
47 FE19-11 Primary Clarifiers Nos. 6-31 Lighting and Alarm Improvements at Plant No. 1
Secondary Sedimentation
159,588
100.0%
159,588
0%
70% 30%
0
111,711
47,876
48 FE19-12 Rebuild Shop Fume Extractor Installation at Plant No 1
Interplant
435,841
100.0%
435,841
40%
33% 27%
176,199
143,871
115,771
49 FE19-13 VFD Replacements at Seal Beach Pump Station
Collection
273,873
100.0%
273,873
90%
10% 0%
246,486
27,387
0
50 FE20-01 Wastehauler Station Safety and Security Improvements
Interplant
1,306,337
100.0%
1,306,337
40%
33% 27%
528,118
431,221
346,999
51 FE20-02 Digester C, D, F, and G Mechanical Rehabilitation at Plant No. 2
Digestion
3,641,330
100.0%
3,641,330
0%
25% 75%
0
910,332
2,730,997
52 FE20-03 Return Activated Sludge Discharge Piping Replacement at Activated Sludge Plant No. 1
Activated Sludge Process
4,524,089
100.0%
4,524,089
0%
100% 0%
0
4,524,089
0
53 FE20-04 Cengen Cooling Water Pipe Replacement at Plant No. 2
Interplant
4,955,241
100.0%
4,955,241
40%
33% 27%
2,003,272
1,635,722
1,316,246
54 FE20-05 Plant Water Piping Replacement at Secondary Clarifiers 1-26 at Plant No. 1
Secondary Sedimentation
1,448,234
100.0%
1,448,234
0%
70% 30%
0
1,013,764
434,470
55 FE20-06 Thickening and Dewatering Building Pipe Support Improvements at Plant No. 1
Sludge Thickening
1,179,706
100.0%
1,179,706
0%
25% 75%
0
294,927
884,780
56 FE20-07 Santa Ana Trunk Rehabilitation at Plant No. 1
Collection
647,683
100.0%
647,683
90%
10% 0%
582,914
64,768
0
57 FE20-08 Olive Sub -Trunk Siphon Rehabilitation at Santa Ana River
Collection
2,640,907
100.0%
2,640,907
90%
10% 0%
2,376,816
264,091
0
58 FE20-09 CenGen Smoke Detection Improvements at Plant No. 1 and No. 2
Interplant
588,228
100.0%
588,228
40%
33% 27%
237,805
194,174
156,249
59 FE20-10 Adolfo Lopez Chemical Dosing Station Installation
Interplant
941,753
100.0%
941,753
40%
33% 27%
380,726
310,872
250,155
60 FE21-01 Plasma Cutting Fume Extractor installation at Plant No. 1 Rebuild Shop
Interplant
259,757
100.0%
259,757
40%
33% 27%
105,013
85,746
68,999
61 FE21-02 Lighting Improvements Boiler and Sludge Dewatering Areas at Plant No. 1
Sludge Thickening
270,790
100.0%
270,790
0%
25% 75%
0
67,697
203,092
62 FE21-04 Thickening and Dewatering Facility Handrail Installation at Plant No. 1
Sludge Thickening
186,202
100.0%
186,202
0%
25% 75%
0
46,550
139,651
63 FE21-05 Warehouse Stations and Demolition at Plant No. 2
Interplant
2,163,021
100.0%
2,163,021
40%
33% 27%
874,452
714,012
574,557
Page 8 of 11
Orange County Sanitation District - 2022
Exhibit 8
Development of Capital Improvement Plan
# Project Type
Function
Ten Year CIP Total
Eligible
$ Eligible
FLOW
BOD TSS
FLOW
64 FE21-06 Chemical Dosing Station Installation at Westside Pump Station
Interplant
508,441
100.0%
508,441
40%
33% 27%
205,549
167,836
135,056
65 IT16-09 iPACS Enhancements
Collection
56,275
100.0%
56,275
90%
10% 0%
50,648
5,628
0
66 IT18-09 Records Management Information System
Collection
0
100.0%
0
90%
10% 0%
0
0
0
67 IT19-01 IT Safety VPP Systems (IT19-01)
Collection
0
100.0%
0
90%
10% 0%
0
0
0
68 IT19-05 IT PI & P2 Data Refresh (IT19-05)
Collection
1,070,000
100.0%
1,070,000
90%
10% 0%
963,000
107,000
0
69 IT20-05 Client Management Modernization (ICE-69_IT20-05) 6520005
Collection
71,603
100.0%
71,603
90%
10% 0%
64,443
7,160
0
70 IT20-06 Nintex Workflow Cloud Implementation (ICE-75_IT20-06) 6520006
Collection
0
100.0%
0
90%
10% 0%
0
0
0
71 IT20-07 Professional Services for Valo/SharePoint (ICE-74_IT20-07) 6520007
Collection
27,835
100.0%
27,835
90%
10% 0%
25,052
2,784
0
72 IT20-08 Field Computer for Nerissa and Interface with LIMS(ICE-68_IT20-07) 6520008
Collection
77,822
100.0%
77,822
90%
10% 0%
70,040
7,782
0
73 IT20-09 ITSM Migration (ICE-70_IT20-09) 6520009
Collection
0
100.0%
0
90%
10% 0%
0
0
0
74 IT20-10 Digitize Quality Assurance Tracking Processes /TNI/ELAP StandardslCE-76_IT20-10) 6520010
Collection
89,317
100.0%
89,317
90%
10% 0%
80,385
8,932
0
75 IT20-12 Web -based Cloud Proxy Security with an Isolation Platform (ICE-78_6520012)
Collection
0
100.0%
0
90%
10% 0%
0
0
0
76 IT21-01 Access Network Equipment Obsolescence Replacement (ICE-79_IT21-01) 6521001
Collection
1,009,193
100.0%
1,009,193
90%
10% 0%
908,274
100,919
0
77 IT21-02 Hyper Converged Infrastructure for Plant 1 ICS network (ICE-80 1T21-02) 6521002
Collection
139,321
100.0%
139,321
90%
10% 0%
125,389
13,932
0
78 IT21-03 Door Access Control System for P2 Construction Management Trailers (ICE-83_IT21-036521003
Collection
0
100.0%
0
90%
10% 0%
0
0
0
79 IT21-04 Databridge Scale Management Software (ICE - 84_IT21-04)
Collection
35,946
100.0%
35,946
90%
10% 0%
32,351
3,595
0
80 IT21-05 JD Edwards Server Migration and Upgrade (ICE - 86_IT21-05)
Collection
68,628
100.0%
68,628
90%
10% 0%
61,765
6,863
0
81 IT21-06 Dig -Smart Fusion (ICE - 89_I6521006_T21-06)
Collection
0
100.0%
0
90%
10% 0%
0
0
0
82 IT21-07 Advanced Email Security (ICE - 90_I6521007_T21-07)
Collection
0
100.0%
0
90%
10% 0%
0
0
0
83 J-117B Outfall Low Flow Pump Station
Effluent Disposal
51,164,677
100.0%
51,164,677
100%
0% 0%
51,164,677
0
0
84 J-120 Process Control Systems Upgrades
Interplant
30,790,276
100.0%
30,790,276
40%
33% 27%
12,447,690
10,163,852
8,178,733
85 J-120A Control Room Reconfiguration at Plant No. 1 and Plant No. 2
Interplant
3,765,593
100.0%
3,765,593
40%
33% 27%
1,522,329
1,243,020
1,000,244
86 J-124 Digester Gas Facilities Replacement
Digestion
156,948,308
100.0%
156,948,308
0%
25% 75%
0
39,237,077
117,711,231
87 J-127 Natural Gas Pipelines Replacement at Plant Nos. 1 and 2
Interplant
78,826
100.0%
78,826
40%
33% 27%
31,867
26,021
20,938
88 J-128 Project Management Information System
Collection
670,937
100.0%
670,937
90%
10% 0%
603,843
67,094
0
89 J-133 Laboratory Rehabilitation/Replacement at Plant No 1
Interplant
100,000,000
100.0%
100,000,000
40%
33% 27%
40,427,342
33,009,942
26,562,716
90 J-135 Central Generation Engine Overhauls at Plant No. 1 and 2
Interplant
14,874,635
100.0%
14,874,635
40%
33% 27%
6,013,420
4,910,109
3,951,107
91 J-135A Central Generation Engine Overhaul at Plant No. 1
Interplant
0
100.0%
0
40%
33% 27%
0
0
0
92 J-135B Engine and Generator Overhauls at Plant No. 1 and 2
Interplant
24,000,000
100.0%
24,000,000
40%
33% 27%
9,702,562
7,922,386
6,375,052
93 J-136 Power Building Structural Seismic Improvements at Plant No. 1 and 2
Interplant
5,364,280
100.0%
5,364,280
40%
33% 27%
2,168,636
1,770,746
1,424,898
94 J-137120-inch Ocean Outfall Rehabilitation
Effluent Disposal
64,968,000
100.0%
64,968,000
100%
0% 0%
64,968,000
0
0
95 J-36-2 GWRS Final Expansion Coordination
Interplant
272,061
100.0%
272,061
40%
33% 27%
109,987
89,807
72,267
96 J-98 Electrical Power Distribution System Improvements
Collection
24,291,686
100.0%
24,291,686
90%
10% 0%
21,862,518
2,429,169
0
97 M-FE Small Construction Projects Program
Collection
24,290,374
100.0%
24,290,374
90%
10% 0%
21,861,337
2,429,037
0
98 M-MC-IT Information Technology Capital Program
Collection
4,318,329
100.0%
4,318,329
90%
10% 0%
3,886,496
431,833
0
99 M-RESEARCH Research Program
Collection
2,089,746
100.0%
2,089,746
90%
10% 0%
1,880,772
208,975
0
100 M-SM-CAP Operations & Maintenance Capital Program
Collection
10,303,912
100.0%
10,303,912
90%
10% 0%
9,273,520
1,030,391
0
101 M-STUDIES Planning Studies Program
Collection
14,847,718
100.0%
14,847,718
90%
10% 0%
13,362,946
1,484,772
0
102 P1-101 Sludge Dewatering and Odor Control at Plant 1
Sludge Thickening
0
100.0%
0
0%
25% 75%
0
0
0
103 P1-105 Headworks Rehabilitation at Plant 1
Headworks
260,827,359
100.0%
260,827,359
75%
5% 20%
195,620,519
13,041,368
52,165,472
104 P1-126 Primary Sedimentation Basins No. 3-5 Replacement at Plant No. 1
Primary Sedimentation
168,628,090
100.0%
168,628,090
0%
30% 70%
0
50,588,427
118,039,663
105 P1-127 Central Generation Rehabilitation at Plant No. 1
Interplant
21,884,242
100.0%
21,884,242
40%
33% 27%
8,847,217
7,223,976
5,813,049
106 P1-128A Headquarters Complex at Plant No. 1
Interplant
85,125,871
100.0%
85,125,871
40%
33% 27%
34,414,127
28,100,001
22,611,743
107 P1-129 Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1
Activated Sludge Process
0
100.0%
0
0%
100% 0%
0
0
0
108 P1-132 Uninterruptable Power Supply Improvements at Plant 1
Interplant
5,605,952
100.0%
5,605,952
40%
33% 27%
2,266,337
1,850,521
1,489,093
109 P1-133 Primary Sedimentation Basins No.6-31 Reliability Improvements at Plant No. 1
Primary Sedimentation
11,479,256
100.0%
11,479,256
0%
30% 70%
0
3,443,777
8,035,479
110 P1-134 South Perimeter Security and Utility Improvements at Plant No.1
Interplant
4,134,215
100.0%
4,134,215
40%
33% 27%
1,671,353
1,364,702
1,098,160
111 P1-135 Digester Ferric Chloride Piping Replacement at Plant No. 1
Digestion
215,671
100.0%
215,671
0%
25% 75%
0
53,918
161,753
112 P1-136 12.47 kV Switchgear Replacement at Central Generation at Plant No. 1
Interplant
12,958,000
100.0%
12,958,000
40%
33% 27%
5,238,575
4,277,428
3,441,997
113 P1-137 Supports Buildings Seismic Improvements at Plant No. 1
Interplant
23,643,235
100.0%
23,643,235
40%
33% 27%
9,558,331
7,804,618
6,280,285
114 P1-138 Industrial Control System and IT Data Center Relocation at Plant No. 1
Interplant
5,700,000
100.0%
5,700,000
40%
33% 27%
2,304,358
1,881,567
1,514,075
115 P1-140 Activated Sludge-1 and Secondary Clarifier Rehabilitation
Activated Sludge Process
261,152,452
100.0%
261,152,452
0%
100% 0%
0
261,152,452
0
116 P1-141 Administrative Facilities and Power Building 3A Demolition
Collection
8,910,000
100.0%
8,910,000
90%
10% 0%
8,019,000
891,000
0
117 P2-119 Central Generation Rehabilitation at Plant No. 2
Interplant
36,690,396
100.0%
36,690,396
40%
33% 27%
14,832,952
12,111,479
9,745,966
118 P2-122 Headworks Modifications at Plant No. 2 for GWRS Final Expansion
Headworks
5,895,763
100.0%
5,895,763
75%
5% 20%
4,421,822
294,788
1,179,153
119 P2-123 Return Activated Sludge Piping Replacement at Plant 2
Activated Sludge Process
1,330,642
100.0%
1,330,642
0%
100% 0%
0
1,330,642
0
120 P2-124 Interim Food Waste Receiving Facility
Collection
4,948,534
100.0%
4,948,534
90%
10% 0%
4,453,681
494,853
0
121 P2-127 Collections Yard Relocation
Collection
1,843,092
100.0%
1,843,092
90%
10% 0%
1,658,782
184,309
0
122 P2-128 TPAD Digester Facility at Plant No.2
Digestion
376,282,135
100.0%
376,282,135
0%
25% 75%
0
94,070,534
282,211,601
123 P2-128ATPAD Perimeter Wall
Interplant
53,200,000
100.0%
53,200,000
40%
33% 27%
21,507,346
17,561,289
14,131,365
124 P2-129 Digester P, Q, R, and S Replacement
Digestion
59,400,030
100.0%
59,400,030
0%
25% 75%
0
14,850,007
44,550,022
125 P2-133 B/C-Side Primary Sedimentation Basins Rehabilitation at Plant No. 2
Primary Sedimentation
15,839,853
100.0%
15,839,853
0%
30% 70%
0
4,751,956
11,087,897
126 P2-135 Sodium Bisulfite Station Rehabilitation at Plant No. 2
Interplant
4,959,808
100.0%
4,959,808
40%
33% 27%
2,005,118
1,637,230
1,317,460
Page 9 of 11
Orange County Sanitation District - 2022
Exhibit 8
Development of Capital Improvement Plan
Project Type
Function
Ten Year CIP Total
Eligible
M
FLOW
BOD TSS
FLOW
127 P2-136 Activated Sludge Aeration Basin Rehabilitation at Plant No. 2
Activated Sludge Process
65,538,625
100.0%
65,538,625
0%
100% 0%
0
65,538,625
0
128 P2-137 Digesters Rehabilitation at Plant No. 2
Digestion
40,374,156
100.0%
40,374,156
0%
25% 75%
0
10,093,539
30,280,617
129 P2-138 Operations and Maintenance Complex at Plant No. 2
Collection
83,798,943
100.0%
83,798,943
90%
10% 0%
75,419,049
8,379,894
0
130 P2-139 Emergency Overflow Wingwalls Rehabilitation at Plant No. 2
Interplant
4,370,000
100.0%
4,370,000
40%
33% 27%
1,766,675
1,442,534
1,160,791
131 P2-140 Truck Loading Bay Odor Control Improvements at Plant No. 2
Interplant
7,600,000
100.0%
7,600,000
40%
33% 27%
3,072,478
2,508,756
2,018,766
132 P2-98A A -Side Primary Clarifiers Replacement at Plant 2
Primary Sedimentation
133,766,315
100.0%
133,766,315
0%
30% 70%
0
40,129,895
93,636,421
133 P2-988 B/C-Side Primary Clarifiers Interim Repair at Plant 2
Primary Sedimentation
0
100.0%
0
0%
30% 70%
0
0
0
134 PS17-03 Active Fault Location Study at Plant No. 2
Interplant
0
100.0%
0
40%
33% 27%
0
0
0
135 PS18-06 Go/No-Go Lights and Signage
Collection
99,262
100.0%
99,262
90%
10% 0%
89,336
9,926
0
136 PS18-09 Ocean Outfall Condition Assessment and Scoping Study
Effluent Disposal
55,300
100.0%
55,300
100%
0% 0%
55,300
0
0
137 PS19-03 Laboratory Rehabilitation Feasibility Study
Collection
12,593
100.0%
12,593
90%
10% 0%
11,333
1,259
0
138 PS20-01 Collections Yard Relocation Feasibility Study
Collection
69,513
100.0%
69,513
90%
10% 0%
62,562
6,951
0
139 PS20-02 Collection System Flow Level Monitoring Study
Collection
620,246
100.0%
620,246
90%
10% 0%
558,222
62,025
0
140 PS20-03 Truck Loading Bay Odor Control Improvements Study at Plant No. 2
Interplant
160,469
100.0%
160,469
40%
33% 27%
64,873
52,971
42,625
141 PS20-04 Power Generation Overhaul Feasibility Study
Interplant
0
100.0%
0
40%
33% 27%
0
0
0
142 PS20-05 Can Gen Pressure Vessel Integrity Assessment at Plant Nos. land 2
Interplant
233,863
100.0%
233,863
40%
33% 27%
94,545
77,198
62,120
143 PS20-07 College Pump Station Wet Well Condition Assessment Study
Collection
67,425
100.0%
67,425
90%
10% 0%
60,682
6,742
0
144 PS20-08 Euclid Trunk Sewer Hydraulic Modeling and Odor Control Analyses
Collection
205,952
100.0%
205,952
90%
10% 0%
185,357
20,595
0
145 PS20-09 Thickening & Dewatering Plant Water Study at Plant No. 1
Sludge Thickening
328,511
100.0%
328,511
0%
25% 75%
0
82,128
246,383
146 PS21-01 Exterior Lighting Study at Plant Nos. 1 and 2
Interplant
523,744
100.0%
523,744
40%
33% 27%
211,736
172,887
139,121
147 PS21-02 Public Announcement and Fire System at Plant Nos. 1 and 2
Interplant
458,614
100.0%
458,614
40%
33% 27%
185,405
151,388
121,820
148 PS21-03 Process Model for Denitrification Alternatives at Activated Sludge 1
Activated Sludge Process
9,698
100.0%
9,698
0%
100% 0%
0
9,698
0
149 PS21-04 Energy and Digester Gas Master Plan
Interplant
1,068,462
100.0%
1,068,462
40%
33% 27%
431,951
352,699
283,812
150 PS21-05 CAD Design Manual Update for 3D Design
Collection
678,763
100.0%
678,763
90%
10% 0%
610,887
67,876
0
151 PS21-06 Regional Urban Runoff Optimization Study
Collection
968,330
100.0%
968,330
90%
10% 0%
871,497
96,833
0
152 RE19-01 Primary Scum Equipment Evaluation at Plant No. 1
Sludge Thickening
15,405
100.0%
15,405
0%
25% 75%
0
3,851
11,553
153 RE20-01 Co -Thickened Sludge Density Meter Trial atl Plant No. 1
Sludge Thickening
1,931
100.0%
1,931
0%
25% 75%
0
483
1,449
154 RE20-02 Chemical Resilience Study at Plant No.l and 2
Interplant
22,396
100.0%
22,396
40%
33% 27%
9,054
7,393
5,949
155 RE20-04 Holding Digester 6 Solids Shredder Study at Plant No. 1
Digestion
17,649
100.0%
17,649
0%
25% 75%
0
4,412
13,237
156 RE20-06 Co -Thickened Sludge Pump Trial at Plant No. 1
Sludge Thickening
15,000
100.0%
15,000
0%
25% 75%
0
3,750
11,250
157 RE21-01 Supercritical Water Oxidation Demonstration at Plant No. 1
Interplant
6,873,109
100.0%
6,873,109
40%
33% 27%
2,778,615
2,268,809
1,825,684
158 SC18-05 P1 Laboratory HVAC Boiler Burner Replacement At Plant No.l
Interplant
0
100.0%
0
40%
33% 27%
0
0
0
159 SC19-03 Return Activated Sludge Pump Station Elevator Rehabilitation at Plant No. 2
Activated Sludge Process
362,992
100.0%
362,992
0%
100% 0%
0
362,992
0
160 SC19-06 EPSA Standby Power Generator Control Upgrades at Plant No. 2
Interplant
3,427,847
100.0%
3,427,847
40%
33% 27%
1,385,787
1,131,530
910,529
161 SC20-02 Ocean Outfall Booster Station Elevator Rehabilitation
Effluent Disposal
381,819
100.0%
381,819
100%
0% 0%
381,819
0
0
162 SP-100 EAM Software and Process Implementation
Collection
2,544,488
100.0%
2,544,488
90%
10% 0%
2,290,039
254,449
0
163 SP-195 Capital Improvement Program Management Services
Collection
324,865
100.0%
324,865
90%
10% 0%
292,379
32,487
0
164 X-006 Waste Sidestream Pump Station Rehabilitation at Plant No. 1
Interplant
17,287,000
100.0%
17,287,000
40%
33% 27%
6,988,675
5,706,429
4,591,897
165 X-007 Waste Sidestream Pump Station 2A Upgrade at Plant No. 2
Interplant
9,690,000
100.0%
9,690,000
40%
33% 27%
3,917,409
3,198,663
2,573,927
166 X-014 Trickling Filter Solids Contact Basins Odor Control at Plant No. 2
Trickling Filters
117,817
100.0%
117,817
0%
100% 0%
0
117,817
0
167 X-015 Trickling Filters Rehabilitation at Plant No. 1
Trickling Filters
5,816,795
100.0%
5,816,795
0%
100% 0%
0
5,816,795
0
168 X-017 Primary Sedimentation Basins No.6-31 Rehabilitation at Plant No. 1
Primary Sedimentation
0
100.0%
0
0%
30% 70%
0
0
0
169 X-018 Activated Sludge- 2 Rehabilitation at Plant No. 1
Activated Sludge Process
0
100.0%
0
0%
100% 0%
0
0
0
170 X-022 15th Street Pump Station and Force Main Rehabilitation
Collection
0
100.0%
0
90%
10% 0%
0
0
0
171 X-023 Lido Pump Station Rehabilitation
Collection
9,847,291
100.0%
9,847,291
90%
10% 0%
8,862,562
984,729
0
172 X-024 Rocky Point Pump Station Rehabilitation
Collection
82,553
100.0%
82,553
90%
10% 0%
74,298
8,255
0
173 X-025 Bitter Point Pump Station Rehabilitation
Collection
365,469
100.0%
365,469
90%
10% 0%
328,922
36,547
0
174 X-030 Headworks Rehabilitation at Plant 2
Headworks
5,275,748
100.0%
5,275,748
75%
5% 20%
3,956,811
263,787
1,055,150
175 X-031 Trickling Filter Solids Contact Facility Rehabilitation at Plant No. 2
Trickling Filters
0
100.0%
0
0%
100% 0%
0
0
0
176 X-036 City Water Pump Station Rehabilitation at Plant No. 2
Interplant
13,440,000
100.0%
13,440,000
40%
33% 27%
5,433,435
4,436,536
3,570,029
177 X-037 Plant Water Pump Station and 12 KV Distribution Center A Demolition at Plant No. 2
Interplant
3,509,000
100.0%
3,509,000
40%
33% 27%
1,418,595
1,158,319
932,086
178 X-038 City Water Pump Station Rehabilitation at Plant No. 1
Interplant
7,291,736
100.0%
7,291,736
40%
33% 27%
2,947,855
2,406,998
1,936,883
179 X-039 Plant Water Pump Station Rehabilitation at Plant No. 1
Interplant
10,561,000
100.0%
10,561,000
40%
33% 27%
4,269,532
3,486,180
2,805,288
180 X-040 College Pump Station Replacement and Force Main Rehabilitation
Collection
1,424,214
100.0%
1,424,214
90%
10% 0%
1,281,792
142,421
0
181 X-041 A Street Pump Station and Force Main Rehabilitation
Collection
0
100.0%
0
90%
10% 0%
0
0
0
182 X-044 Steve Anderson Lift Station Rehabilitation
Collection
0
100.0%
0
90%
10% 0%
0
0
0
183 X-052 Activated Sludge RAS/WAS/PEPS/Vaporizers Rehabilitation at Plant No. 2
Activated Sludge Process
33,735,521
100.0%
33,735,521
0%
100% 0%
0
33,735,521
0
184 X-059 Plantwide Miscellaneous Tunnels Rehabilitation
Interplant
29,350,713
100.0%
29,350,713
40%
33% 27%
11,865,713
9,688,653
7,796,347
185 X-061 Imperial Relief Interceptor / Miller Holder Trunk Rehabilitation
Collection
0
100.0%
0
90%
10% 0%
0
0
0
186 X-065 Tustin -Orange Interceptor Rehabilitation
Collection
0
100.0%
0
90%
10% 0%
0
0
0
187 X-066 Tustin -Orange Interceptor / Orange Park Acres Trunk Rehabilitation
Collection
935,465
100.0%
935,465
90%
10% 0%
841,918
93,546
0
188 X-068 North Trunk - Panorama Heights -Tustin-Orange Rehabilitation
Collection
9,624,000
100.0%
9,624,000
90%
10% 0%
8,661,600
962,400
0
189 X-071 Bolsa Chica / Edinger / Springdale Trunk Sewer Rehabilitation
Collection
16,973,000
100.0%
16,973,000
90%
10% 0%
15,275,700
1,697,300
0
Page 10 of 11
Orange County Sanitation District - 2022
Exhibit 8
Development of Capital Improvement Plan
# Project Type
Function
Ten Year CIP Total
Eligible
$ Eligible
FLOW
%
BOD TSS
FLOW
IN
ROD
TSS
190 X-078 Air Jumpers Additions/Rehabilitations
Collection
13,815,651
100.0%
13,815,651
90%
10% 0%
12,434,086
1,381,565
0
191 X-084 Tustin Avenue Sewer Improvements
Collection
212,056
100.0%
212,056
90%
10% 0%
190,850
21,206
0
192 X-085 Hoover -Western Sub -Trunk and Lampson Branch Improvements
Collection
23,846,588
100.0%
23,846,588
90%
10% 0%
21,461,929
2,384,659
0
193 X-086 Santa Ana River Interceptor Improvements
Collection
0
100.0%
0
90%
10% 0%
0
0
0
194 X-095 Southern California Edison Substation and Service Center Replacement at Plant 2
Collection
5,441,800
100.0%
5,441,800
90%
10% 0%
4,897,620
544,180
0
195 X-096 Bushard Diversion Structure Improvements
Headworks
4,722,000
100.0%
4,722,000
75%
5% 20%
3,541,500
236,100
944,400
196 X-098 Effluent Pump Station Annex Rehabilitation
Effluent Disposal
4,485,679
100.0%
4,485,679
100%
0% 0%
4,485,679
0
0
197 X-100 Flood Wall along Brookhurst Street
Collection
5,748,938
100.0%
5,748,938
90%
10% 0%
5,174,044
574,894
0
198 X-102 Wastehauler Facility Improvements
Interplant
1,304,362
100.0%
1,304,362
40%
33% 27%
527,319
430,569
346,474
199 X-104 Central Generation Facilities and Power Bldg. 2 Seismic Upgrades
Interplant
28,214,000
100.0%
28,214,000
40%
33% 27%
11,406,170
9,313,425
7,494,405
200 X-105 COBS Seismic Improvements at Plant No. 2
Interplant
24,913,000
100.0%
24,913,000
40%
33% 27%
10,071,664
8,223,767
6,617,569
201 X-107 DAFfs Seismic Improvements at Plant No. 2
Interplant
389,911
100.0%
389,911
40%
33% 27%
157,631
128,709
103,571
202 X-108 Lateral Spreading Mitigation at Plant No. 2
Interplant
0
100.0%
0
40%
33% 27%
0
0
0
203 X-109 Lateral Spreading Mitigation at Plant No. 1
Interplant
0
100.0%
0
40%
33% 27%
0
0
0
204 X-110 Solids Processing Facilities Seismic Improvements at Plant No. 1
Solids Handling
657,144
100.0%
657,144
0%
25% 75%
0
164,286
492,858
205 X-112 Southwest Corner Stormwater Drainage Modifications at Plant No. 1
Collection
855,832
100.0%
855,832
90%
10% 0%
770,249
85,583
0
206 X-114 Activated Sludge Facility Replacement at Plant No. 2
Activated Sludge Process
0
100.0%
0
0%
100% 0%
0
0
0
207 X-115 Short Outfall Rehabilitation at Plant No. 2
Effluent Disposal
5,712,326
100.0%
5,712,326
100%
0% 0%
5,712,326
0
0
208 X-116 Outfall Land Section Rehabilitation at Plant No. 2
Effluent Disposal
0
100.0%
0
100%
0% 0%
0
0
0
209 X-118 84-inch Interplant Pipeline Rehabilitation at Plant 1
Interplant
0
100.0%
0
40%
33% 27%
0
0
0
210 X-119 Thickening, Dewatering and Truck Loadout Rehabilitation at Plant 1
Sludge Thickening
0
100.0%
0
0%
25% 75%
0
0
0
211 X-120 Digester Rehabiliation/Replacement at Plant 1
Digestion
0
100.0%
0
0%
25% 75%
0
0
0
212 X-121 Lido Pump Station Replacement
Collection
0
100.0%
0
90%
10% 0%
0
0
0
213 X-122 MacArthur Pump Station Replacement Project
Collection
0
100.0%
0
90%
10% 0%
0
0
0
214 X-124 Electric Vehicle Fleet Services Building
Collection
12,481,000
100.0%
12,481,000
90%
10% 0%
11,232,900
1,248,100
0
215 X-125 66-inch Interplant Pipeline Rehabilitation at Plant 1
Interplant
6,841,000
100.0%
6,841,000
40%
33% 27%
2,765,635
2,258,210
1,817,155
216 X-126 Lake Ave and Atlanta Int Rehabilitation
Collection
8,959,000
100.0%
8,959,000
90%
10% 0%
8,063,100
895,900
0
217 X2-72 Continegncy Reserve for 2-72
Collection
10,000,000
100.0%
10,000,000
90%
10% 0%
9,000,000
1,000,000
0
218 X2-79 Fullerton -Brea Int and Rollings Hills Or Subtrunk Rehabilitation
Collection
13,300,000
100.0%
13,300,000
90%
10% 0%
11,970,000
1,330,000
0
219 XP2-130 Food Waste Receiving Facility at Plant No. 2
Interplant
0
100.0%
0
40%
33% 27%
0
0
0
220 XP2-131 Digester I, J, and K Replacement at Plant No. 2
Digestion
8,779,838
100.0%
8,779,838
0%
25% 75%
0
2,194,959
6,584,878
221 XP2-132 Digester Demolition at Plant No. 2
Digestion
0
100.0%
0
0%
25% 75%
0
0
0
Actual
Collection
203,320,511
100.0%
203,320,511
$3,617,505,992
90%
10% 0%
182,988,460
$1,689,310,256
20,332,051
$984,761,980
0
$943,433,755
Total
$3,617,505,992
CATEGORY
Ten Year CIP Total
$ Eligible
Collection
$1,221,084,006
$1,221,084,006
Interplant
633,270,255
633,270,255
Headworks
276,736,688
276,736,688
Primary Sedimentation
329,713,515
329,713,515
Activated Sludge Process
366,654,019
366,654,019
Oxygen Activated Sludge Process
0
0
Blower Equipment and Structures
0
0
Aeration Equipment and Structures
0
0
Trickling Filters
8,619,756
8,619,756
Secondary Sedimentation
4,270,630
4,270,630
Sludge Thickening
1,997,545
1,997,545
Digestion
647,734,632
647,734,632
Solids Handling
657,144
657,144
Solids Disposal
0
0
Effluent Disposal
126,767,802
126,767,802
Unallocated
0
0
As All Others
0
0
TOTAL
$3,617,505,992
$3,617,505,992
FLOW BOD TSS
$1,098,975,606 $122,108,401 $0
256,014,334 209,042,144 168,213,778
207,552,516 13,836,834 55,347,338
0 98,914,054 230,799,460
0 366,654,019 0
0 0 0
0 0 0
0 0 0
0 8,619,756 0
0 2,989,441 1,281,189
0 499,386 1,498,159
0 161,933,658 485,800,974
0 164,286 492,858
0 0 0
126,767,802 0 0
0 0 0
0 0 0
$1,689,310,256 $984,761,980 $943,433,755
Page 11 of 11
12/6/2022
■
• Rate assumptions are included annually with each
adopted budget
• Each budget includes a ten-year cashflow estimate
• Capital Improvement Program (CIP) Master Plan was
last completed in 2017
12/6/2022
1
• Staff engaged a qualified independent consulting firm,
HDR Engineering, to conduct a comprehensive cost of
service rate study to validate financial assumptions.
• HDR performed the revenue analysis to develop cost
based Regional Sewer Service Fees, Capacity
Charges and ancillary charges as well as cost
allocation amongst customer classes.
• HDR also evaluated the current rebate program and
recommended changes for better efficiency and to
simplify the process for both the customer and OC San.
3
Majority of OC San Revenue comes from the
General User Fees
1)
General User Fees
$ 356.5 M
69.2%
2)
Property Taxes
$ 109.8 M
21.3%
3)
Interest/Assessments
$ 18.0 M
3.5%
4)
Other Fees/Charges
$ 31.1 M
6.0%
Total Fees & Charges $ 515.4 M 100.0%
M
2
12/6/2022
Los Angeles County
$226
Fresno
$309
Oro Loma
$342
OC San
$347
IRWD
$357
Sacramento
$444
Hayward
$463
East Bay MUD
$475
Dublin San Ramon
$496
Union Sanitary
$530
City of Los Angeles
$636
City of San Diego
$687
Central Contra Costa
$690
Vallejo
$769
San Francixo
$1,270
200 400 600 800 1,000 1,200 1,400
5
5
General User Fees
9', of total revenue)
Staff recommends on average
3.5% annual increases
2022 (Current)
$351
$347
$347
2023
$359
$358
$358
2024
$367
$370
$371
2025
$373
$382
$384
2026
$379
$395
$397
2027
$385
$408
$411
6
3
12/6/2022
Industrial User O&M Fee
High Strength Dischargers
Represents $12.5M (2.4% of total revenue)
• Staff recommends annual increases of 4.7%-5.6%
over a five-year period for high strength dischargers.
CFCC
One -Time Connection Charge
Represents $12.9M (2.5% of total revenue)
Residential Capacity Charges will remain flat for
2023-24 and increase annually by the Engineering
News Record (ENR) Construction Cost Index.
Non-residential Capacity Charges will decrease by
approximately 33% in 2023-24 and then increase
annually by the ENR Construction Cost Index.
M
12/6/2022
SCFCC
Annual charge for exceeding established baselines
Represents $4.3M (.8% of total revenue)
• The SCFCC is charged to high strength industrial users
who exceed standard discharge amounts.
• Currently, there are 45 industrial dischargers who are
charged the SCFCC for one or more constituents.
• These users would see increases on average of 6.3%.
0]
• OC San processes over 2000 rebate/refund requests annually
with an additional 1200 customers locked into a reduced charge.
• Staff and our consultant evaluated our current rebate program
• Staff recommends redesigning the program and modeling it
after LA County Sanitation Districts tiered rebate program and
moving from a 3-year lock -in to a 5-year lock -in to better serve
our customers:
Average Flow divided
Customer
by Assumed Discharge
Reduction
90% or Greater
0%
70% - 89%
20%
50% - 69%
30%
30% - 49%
60%
29% or less
80%
10
5
12/6/2022
1) November Steering Committee — Rate Plan Overview
2) December Operations Committee — Rate Plan Overview
3) December Admin Committee — Rate Study and Prop. 218 Notices
4) December Board — Rate Study and Prop. 218 Notices
5) February 2023 — Mail Prop. 218 Notices
6) February Board — First Reading of the Ordinances
7) March Board — Public Hearing, Second Reading and Adoption
8) July 1, 2023 — New rate schedules go into effect
11
12
0
Administration Building
ADMINISTRATION COMMITTEE 10844 Ellis Avenue
SAIV Fountain Valley, CA 92708
(714) 593 7433
ORANGE COUNTY SANITATION DISTRICT
Agenda Report
File #: 2022-2412 Agenda Date: 12/14/2022 Agenda Item No: 9.
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
PROPOSITION 218 NOTIFICATIONS
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
A. Direct staff to prepare and mail Proposition 218 compliant notifications to affected property
owners outlining a five-year regional sewer service fee schedule with annual increases of
approximately 3.5 percent for fiscal years 2023-24 through 2027-28; and
B. Authorize the General Manager to select a service provider for preparing, printing, and mailing
the Proposition 218 compliant notifications and execute a Purchase Order for an amount not
to exceed $370,000.
BACKGROUND
The Orange County Sanitation District's (OC San) current five-year sewer fee rate schedule expires
at the end of the current fiscal year. OC San engaged HDR Engineering, Inc, an engineering
consulting firm, to provide an independent analysis of OC San's cash flow modeling and a
comprehensive cost of service study to ensure the appropriate allocation of costs and fees. This
study has been completed and presented to the Administration Committee at this meeting as a
separate agenda item. Based on this information, the Facilities Master Plan, forecasted operating
expenses, and cash flow modeling, staff recommends annual increases on average of 3.5%. It is
anticipated that this increase will be less than average inflation rates and will support OC San's
programs while maintaining appropriate reserves levels.
RELEVANT STANDARDS
• Stable rates based on a validated cost structure which minimizes unforeseen rate increases.
PROBLEM
Proposition 218 requires that OC San notify the affected property owners within OC San's service
area of proposed rate increases and to conduct a public hearing that coincides with the second
reading of the ordinance. Notices must be mailed to property owners 45 days prior to the public
hearing.
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File #: 2022-2412
PROPOSED SOLUTION
Agenda Date: 12/14/2022 Agenda Item No: 9.
With Board approval, a notice of rate changes will be mailed to every affected property owner within
OC San's service area. These rates will be scheduled for adoption through the ordinance process
that requires a public hearing, two Board meetings, and a 2/3 majority approval of the Board. The
estimated cost of mailing will not exceed $370,000 for approximately 500,000 notifications.
TIMING CONCERNS
Rate approval schedule:
• December 2022: Administration & Operations Committees - Rate Structure presentation
• December 2022: Board Meeting - Approval of Proposition 218 Notices
• February 2023: Proposition 218 45-day notices mailed for Sanitary Sewer Fees
• February 2023: Board Meeting - 1 st Reading of the Ordinance
• March 2023: Board Meeting - 2nd Reading of the Ordinance, Public Hearing & Adoption
• July 1, 2023: New rates go into effect
Due to the critical, time -sensitive nature of this procurement, staff recommends proceeding with
procurement per Section 1.07.B of OC San's Purchasing Ordinance, and that the Board of Directors
delegate to the General Manager the authority to execute a Purchase Order with a service provider
to prepare, print, and mail the notices.
RAMIFICATIONS OF NOT TAKING ACTION
Existing sewer service fees will be insufficient to support OC San's operating expenses and new
facilities included in the Facilities Master Plan.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
The Proposed Annual Single Family Residential Fee Schedule:
Current
$347
FY 2023-24
$358
FY 2024-25
$371
FY 2025-26
$384
FY 2026-27
$397
FY 2027-28
$411
CEQA
N/A
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File #: 2022-2412
FINANCIAL CONSIDERATIONS
Agenda Date: 12/14/2022 Agenda Item No: 9.
This request complies with authority levels of OC San's Purchasing Ordinance. This item has been
budgeted.
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 Building
ADMINISTRATION COMMITTEE 10844 Ellis Avenue
SAIV Fountain Valley, CA 92708
(714) 593 7433
ORANGE COUNTY SANITATION DISTRICT
Agenda Report
File #: 2022-2657 Agenda Date: 12/14/2022 Agenda Item No: 10.
FROM: James D. Herberg, General Manager
Originator: Lan C. Wiborg, Director of Environmental Services
SUBJECT:
DENALI WATER SOLUTIONS, LLC BIOSOLIDS HAULING SERVICES - SPECIFICATION NO. S-
2020-1208BD - CONTINGENCY INCREASE
GENERAL MANAGER'S RECOMMENDATION
IV:1ito] 1TAIf•1a101�7_r1[67,1■: - • i 0USX1i3.10 01 ona9 - re= on
Approve an additional 10% unit price per ton contingency (for a total of 20% unit price per ton
contingency) for Denali Water Solutions, LLC Biosolids Hauling Services Specification No. S-2020-
1208BD contract renewal to collect and haul Orange County Sanitation District's biosolids to the
Inland Empire Regional Composting Facility and alternative sites for the period between January 1,
2023 through December 31, 2023.
1 :(r]:19111ZI III]
In early November, Denali Water Solutions, LLC submitted a request for a unit price increase above
the originally approved 10% unit price per ton contingency for the Biosolids Hauling Services
Specification No. S-2020-1208BD contract renewal to Orange County Sanitation District's (OC San)
purchasing division via email communication. OC San staff responded with multiple requests for
justification and a reduction in the proposed unit price. As of 11/29/2022, Denali proffered a best and
final 20% unit price per ton contingency, which will result in an additional cost of $3.09 per ton of
biosolids.
Denali's justification for increasing the unit price per hauling each ton of biosolids from $15.45 to
$18.54 includes: increases in labor/driver costs (18.5% since September 2021), increases in vehicle
maintenance costs (parts and labor), and fuel costs above the original fuel surcharge.
In combination with the tipping fee at IERCF, the overall cost will change from $76.45 to $79.54 per
wet ton of biosolids, plus fuel surcharge.
The Inland Empire Regional Composting Facility (IERCF) is one of two local options utilized by OC
San. At this time, Denali is the sole hauler under contract for transporting biosolids from OC San to
IERCF. OC San is actively developing additional hauling options to IERCF and will continue to
review and adjust its biosolids allocations to contractor facilities to optimize cost-effectiveness,
diversification of biosolids disposal/reuse portfolio, resiliency, and price stability.
Orange County Sanitation District Page 1 of 3 Printed on 12/6/2022
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File #: 2022-2657 Agenda Date: 12/14/2022 Agenda Item No: 10.
RELEVANT STANDARDS
• Maintain and adhere to appropriate internal planning documents (Biosolids Master Plan)
• Safe, beneficial reuse of Biosolids
• Comply with environmental permit requirements
PROBLEM
The Denali contract is up for its first one-year renewal, and a unit price that is above the approved
annual contingency amount due has been requested. Denali is currently the only hauler under
contract with OC San to transport biosolids to IERCF.
PROPOSED SOLUTION
Staff recommends the Board of Directors approve the one-year renewal with Denali with the
contingency increase to maintain biosolids management diversity and sustainability.
TIMING CONCERNS
The current contract expires on December 31, 2022. Board approval is needed prior to expiration
due to the significant cost increase above the Board's previously approved 10% contingency.
RAMIFICATIONS OF NOT TAKING ACTION
If the contingency increase is not approved, OC San will not be able to deliver biosolids to IERCF
until a new hauler is obtained. OC San would temporarily lose one of its two local biosolids
management options.
aNIf] :V191iyiI►yi111i944l 0110I7_TOIIf] z&i
March 2021 - Approved a Service Contract to Denali Water Solutions, LLC to collect and haul Orange
County Sanitation District's biosolids from Reclamation Plant No. 1 and/or Treatment Plant No. 2 to
the Inland Empire Regional Composting Facility and alternative sites if needed for the period
beginning May 12, 2021 through December 21, 2022, for the unit price of $15.45 per ton of biosolids,
plus fuel surcharges, for a total amount not to exceed $600,000 per contract term, with four (4) one-
year renewal options; and approved a 10% unit price per ton contingency.
ADDITIONAL INFORMATION
N/A
CEQA
N/A
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File #: 2022-2657
FINANCIAL CONSIDERATIONS
Agenda Date: 12/14/2022 Agenda Item No: 10.
This request complies with the authority levels of OC San's Purchasing Ordinance. This item has
been budgeted and the additional contingency is available in: (Line item: Section 5, Page 5).
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 Page 3 of 3 Printed on 12/6/2022
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12/6/2022
Biosolids Portfolio
Orange County Sanitation District — Biosolids Management
Biosolids Allocations by Destination
$61.291
Allocation: 41 % (Compost)
Liberty Compost t ----!7 215 tons/day, 60 trucksPweek - "-�_._._._._. .__._.__ _.__.__._.—._._._.—._.__—_._._.—._.__..
CA Prior. 79 tonwday, 19 trucks/week
M $61.21
Allocation: Suspended (Compost) AZ
Synagro - Nursery Products
Kem County 0 tons/day, 0 truckslweek
Prior: 138 tons/day, 33 trucks/week
$6o.27/WT 1
Allocation:9% (Compost)
Synagro -- South Kem Los Angeles Current $76.45
47 tons/day, 13 trucks/week County ees Proposed: $79.54ANf $71.57/WT
Allocation: 6 % (Compost) Allocation: 3% (Compost)
IERCA--Inland Empire Counry Synagro - AZ Soils
30 tons/day, 8 trucka/week 17 tons/day, 5 trucks/week
OC San
Fail-safe Back-up ;an Diego
Landfill County Yuma $57NVT
OCWR - Prima Deshecha County Allocation: 35%(Feed and Seed
Crops)
Tule Ranch - AgTech
189 tons/day, 53 trucks/week
$94Mff
Allocation: 6%(Pellets and Biochar)
Anaergia --Rialto B'oenergy Facility
30 tons/day, 8 trucks/week
Fail safe Backup
awoat: �_ Allocation: As -needed (Landfill and Lime stabilization)
526 Toro cer day I.I. Ranch - AgTech
148Truckaper week
SClredrM FFeclive 1TH621 Revised' 2
e/302022
1
12/6/2022
Recommend to the Board of Directors to:
Approve an additional 10% unit price per ton contingency (for a
total of 20% unit price per ton contingency) for Denali Water
Solutions, LLC Biosolids Hauling Services Specification No. S-2020-
1208BD contract renewal to collect and haul Orange County
Sanitation District's biosolids to the Inland Empire Regional
Composting Facility and alternative sites for the period between
January 1, 2023 through December 31, 2023.
3
2
ACWA
APWA
AQMD
ASCE
BOD
CARB
CASA
ORANGE COUNTY SANITATION DISTRICT
COMMON ACRONYMS
Association of California
LOS
Water Agencies
American Public Works
MGD
Association
Air Quality Management
District
MOU
American Society of Civil
NACWA
Engineers
Biochemical Oxygen Demand
NEPA
California Air Resources
Board
NGOs
California Association of
Sanitation Agencies
NPDES
CCTV Closed Circuit Television I NWRI
California Environmental
CEQA
Quality Act
O & M
Capital Improvement
CIP
Program
OCCOG
California Regional Water
CRWQCB
Quality Control Board
OCHCA
CWA
Clean Water Act
OCSD
California Water Environment
CWEA
Association
OCWD
EIR
Environmental Impact Report
OOBS
EMT Executive Management Team I OSHA
EPA US Environmental Protection I PCSA
Agency
FOG Fats, Oils, and Grease I PDSA
gpd gallons per day
PFAS
GWRS Groundwater Replenishment
PFOA
System
ICS Incident Command System
PFOS
IERP Integrated Emergency
POTW
Response Plan
JPA Joint Powers Authority Ippm
LAFCO Local Agency Formation I PSA
Commission
Level Of Service RFP Request For Proposal
Million Gallons Per Day RWQC Re Tonal Water Qualit
Memorandum of SARFP
Understanding
National Association of Clean SARI
Water Agencies
National Environmental Policy SARW
Act
Non -Governmental SAWP
Organizations
National Pollutant Discharge SCADA
Elimination System
B g y
Control Board
A Santa Ana River Flood
Protection Agency
Santa Ana River
Interceptor
Santa Ana Regional Water
QCB Quality Control Board
A Santa Ana Watershed
Project Authority
Supervisory Control And
Data Acquisition
National Water Research Southern California
Institute SCAP Alliance of Publicly Owned
Treatment Works
Operations & Maintenance SCA South Coast Air Qualit
Orange County Council of SOC
Governments
Orange County Health Care SRF
Agency
Orange County Sanitation SSM
District
Orange County Water District ISSO
QMD y
Management District
WA South Orange County
Wastewater Authority
Clean Water State
Revolving Fund
P Sewer System
Management Plan
Sanitary Sewer Overflow
Ocean Outfall Booster Station 1SWRCState Water Resources
B
Occupational Safety and TDS
Health Administration
Professional
Consultant/Construction TMDL
Services Agreement
Professional Design Services TSS
Agreement
Per- and Polyfluoroalkyl
Substances WDR
Perfluorooctanoic Acid IWEF
Perfluorooctanesulfonic Acid WERF
Publicly Owned Treatment WIFIA
Works
parts per million 1WIIN
Professional Services I
WRDA
Agreement
Control Board
Total Dissolved Solids
Total Maximum Daily Load
Total Suspended Solids
Waste Discharge
Requirements
Water Environment
Federation
Water Environment &
Reuse Foundation
Water Infrastructure
Finance and Innovation Act
Water Infrastructure
Improvements for the
Nation Act
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) — Ajoint 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.