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Home My WebLink About2006-03-01MINUTES OF THE REGULAR JOINT MEETING OF THE FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE & STEERING COMMITTEE Orange County Sanitation District Wednesday, March 1, 2006, 7:00 p.m. A joint meeting of the Finance, Administration and Human Resources Committee and the Steering Committee of the Orange County Sanitation District was held on March 1, 2006, at 7:00 p.m., in the Sanitation District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: FAHR COMMITTEE MEMBERS: DIRECTORS PRESENT: Darryl Miller, Chair Mike Duvall, Vice Chair Bill Dalton Rich Freschi Phil Luebben Joy Neugebauer James W. Silva Mark Waldman Jim Ferryman, Vice Board Chair DIRECTORS ABSENT: Steve Anderson, Board Chair STAFF PRESENT: Jim Ruth, Interim General Manager Lisa Tomko, Director of Human Resources Lorenzo Tyner, Director of Finance Bob Ghirelli, Director of Public Affairs Jeff Reed, Human Resources Manager Mike White, Controller Lilia Kovac, Committee Secretary Penny Kyle, Board Secretary Paul Loehr, Human Resources Supervisor OTHERS PRESENT: Brad Hogin, General Counsel (2) APPOINTMENT OF CHAIR PRO TEM FILED No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR Chair Miller had no report. (5) REPORT OF T HE GENERAL MANAGER Jim Ruth, Interim General Manager, had no report. IN THE OFFICE OF Tl-lE SECRETARY ORANGE f"'f".' "·-• • • • ·-' -"'" n1sTR!CT MAR 2 2 2006 BY _--t-,/_<~•-_,_._,. Minutes of the Regular Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting March 1, 2006 Page2 (6) REPORT OF DIRECTOR OF FINANCE/TREASURER Director of Finance, Lorenzo Tyner, reported that the Sanitation District has held its bond rating at a strong "AA" rating, with a high quality rating by all standards. (7) REPORT OF DIRECTOR OF HUMAN RESOURCES/PUBLIC INFORMATION OFFICE Lisa Tomko, Director of Human Resources, reported that the workers' compensation notification process report will be submitted to the FAHR Committee in April. She also reported that the regular OSHA Incidence Rates and Workers' Compensation Claims and Costs Report was not included in the committee package, as no substantive change occurred since the last update. The report will be provided in April. (8) REPORT OF GENERAL COUNSEL Brad Hagin, General Counsel, had no report. (9) CONSENT CALENDAR ITEMS a. Approve minutes of the February 8, 2006, Finance, Administration and Human Resources Committee meeting. b. FAHR06-11 Receive and file Employment Status Report as of February 9, 2006. c. FAHR06-12 Recommend to the Board of Directors to approve SAFETY-POL-101, 102, 107, 202, and 402, and 405 as provided for in Resolution No. OCSD 02-5, regarding the District's Injury and Illness Prevention Program Policy. MOTION: It was moved, seconded and duly carried to approve the recommended actions for items specified as 9(a), (b), and (c) under Consent Calendar. Director Freschi abstained on Item 9(a). END OF CONSENT CALENDAR (10) ACTION ITEMS No items to be considered (11) INFORMATIONAL PRESENTATIONS a. FAHR06-13 Draft Independent Rate Study Lorenzo Tyner, Director of Finance, reported to the Committee members that the draft rate study completed by Bartle Wells Associates has been made available to the Board and the public. A February scoping meeting Minutes of the Regular Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting March 1, 2006 Page 3 which was attended by industry members, will be followed up with a meeting in April. A key sheet will be provided to the committee for definition of key information contained in the study report. b. FAHR06-14 Parcel Review-Top Commercial and Industrial Users Increases Lorenzo Tyner discussed the results of the non-residential parcel review previously presented to the FAHR Committee and provided a list of users with the largest total dollar impact. c. FAHR06-15 General Manager and Executive Management Team Purchase Approvals Lorenzo Tyner presented a volume summary of purchases at the Executive Management Team level. A breakdown will be prepared for purchases approved by EMT in $10,000 increments. Similar size agencies will be surveyed for comparison and consistency, and recommendations will be submitted for consideration if a change is warranted. d. FAHR06-16 2006-07 and 2007-08 Budget Assumptions Lorenzo Tyner informed the committee members that budget assumptions may still be subject to revision due to two upcoming CIP Oversight workshops scheduled in March that may alter the overall plan. Budget assumptions may be reconsidered after all Board members have an opportunity to attend a CIP Oversight workshop. e. FAHR06-17 COP Series 2006 Debt Repayment Lorenzo Tyner presented the debt repayment savings calculation based on the accelerated repayment of debt. f. FAHR06-18 Labor Relations Program Update/Employee Compensation Overview. Paul Loehr, Human Resources Supervisor, summarized the update on the preparation process for the 2007 labor negotiation process, which included the following Phase 1 items: 1) Review of collective bargaining agreements; 2). Providing employment and labor relations training; 3). Reestablishing the labor/management committee; and, 4). Timeline detail. In addition, an overview of employee compensation program was provided. (12) CLOSED SESSION There was no closed session. \. Employment Practices Training Syllabus Audience: Course Length: Instructor( s ): OCSD Managers ·and Supervisors 2½ hours Division 550 staff / Distributed at 2U ofe FAHR Meeting Introduction Purpose of Today's Training Participants' Expectations Class Agenda Working Together: Everyone's_Role Is Important Human Resources' Role Provide coaching and consultation to assist managers/ supervisors Develop, implement and communicate OCSD policies Outline MOUs and Policy Manual (Rules of Conduct) Supervisors' & Managers' Roles Ensure policy is followed and report issues appropriately Responsible for training employee on specific OCSD policies (provide list) Leaves of Absence Policies Dl0.00, Dl 1.00, D20.00, F30.00 MOU Articles 27 & 28 Paid v. Unpaid Summary of Leave Types & Procedures for Each Use of District Property Policy F40.00 Vehicles (Policy F41.00) Computers (Policies E90.00 to E98.00) Safety (Safe Bulletins) Reporting Procedures: missing property, incidents 5 min. JO min. 20 min. JO min. What to Report t0 Humam. Resources 15 min. Summary: Resolve or Report Checklist (job aid) Complaints (Discuss examples of each.) Wages, Discrimination, Harassment, Retaliation, Allegations of Wrongdoing Disclosure of Medical Information Communications to Report (Discuss examples for each.) Lawyers, Compliance Agencies ( examples: subpoenas, summons, OSHA) Signs of Substance Abuse Signs of Workplace Violence Outside Employment (Conflict of Interest) Policy, FERA, Title VII Apply Your Learning: Quiz (individual,followed by whole group discussion) Break 10 min. 10 min. H ldept\hr\550\0pen\Agenda Reports\MANAGERS\2006\02-February\Employment Practices Training Syllabus doc Performance Management Probationary Period (MOU Article 23) Potential Outcomes: approved, probationary.period extended, released Performance Reviews Performance Improvement Plan (PIP) Discipline Discipline (Policy F70.00, MOU Article 10) Problem Solving Procedure (Policy FS0.00, MOU Article 12) Conflict Resolution Apply Your Learning: Case Study (small groups,followed by debrief) Question & Answer Summarize & Close 10 min. 15 min. 15 min. 20min. 5min. H:ldeptllu\550\0pen\Agenda Reports\MANAGBRS\2006\02-February\Employment Practices Training Syllabus.doc 2007 CONTRACT NEGOTIATIONS Pre~aratiQn Timeline - Phase 4 -Last quarter of calendar year 2006 Phase Objectives: • Research and analysis will be done on available options for meet and confer issues and future organizational needs, focusing on cost containment. • Staff will develop a user-friendly contract costing model that will be broken down into salary and total compensation costs to include: 1) salary related direct costs (salary, overtime, and special pay types); 2) mandatory salary related costs (worker's compensation, unemployment, retirement, etc.); and 3) benefit costs (medical, dental, vision, etc.). • Particular attention will be given to areas where unfunded liabilities may exist. OCTOBER'06 NOVEMBER '06 DECEMBER '06 M T w T F M T w T F M T w T 2 3 4 5 6 1 2 3 9 10 11 12 13 6 7 8 9 10 4 5 6 7 16 17* 18 19 20 13 14 15 16 17 11 12 13-14 23 24 25 26 27 20 21 * 22 23 24 18 19 * 20 21 30 31 27 28 29 30 25 26 27 28 Phase 5 -First quarter of 2007 Phase Objectives: • Based on direction from the FAHR committee, a draft proposal and plan for collective bargaining will be developed. • All pre-negotiation research and analysis will be completed during this timeframe. • Towards the end of this phase, the LMC will adjourn until contract negotiations are completed. JANUARY'07 FEBRUARY '07 MARCH '07 M T w T F M T I w T F M T w T 1 2 3 4 5 1 2 1 8 9 10 11 12 5 6 7 8 9 5 6 7 8 15 16 * 17 18 19 12 13 14 15 16 12 13 14 ** 15 22 23 24 25 26 19 20 * 21 22 23 19 20 21 22 29 30 31 26 27 28 26 27 28 29 Phase 6 -Second quarter of 2007 Phase Objectives: • Staff will meet with the FAHR committee to finalize the contract proposal for submittal. • A comprehensive review of costs associated with the proposal will be provided. • Staff will support and implement any further direction provided by the FAHR committee, including collective bargaining. M 2 9 16 23 30 APRIL'07 MAY '07 T w T F M T w 3 4 5 6 1 2 10 11 12 13 7 8 9 17 18 19 20 14 15 16 ' 24 25 26 27 21 22 23 28 29 30 • Labor Management Committee Meeting (dates are tentative) ** Update to FAHR Committee JUNE '07 T F M T w T 3 4 10 11 4 5 6 7 17 18 H 12 13-14 24 25 18 19 20 21 31 25 26 27 28 ..... F 1 8 15 22 29 F 2 9 16 23 30 F 1 8 15 22 29 1, II - ROLL CALL JOINT FINANCE, ADMINISTRATION AND HUMAN RESOURCES AND STEERING COMMITTEES Meeting Date: March 1, 2006 Time: 7:00 p.m. Adjourn: __ _ COMMITTEE MEMBERS Darryl Miller (Chair) Mike Duvall (Vice Chair) Bill Dalton Richard Freschi Phil Luebben Joy Neugebauer James W. Silva Mark Waldman Steve Anderson (Board Chair) Jim Ferryman (Board Vice Chair) OTHERS I Brad Hog in, General Counsel I I STAFF Jim Ruth, Interim General Manager Bob Ghirelli, Director of Technical Services Lorenzo Tyner, Director of Finance!Treasurer David Ludwin, Director of Engineering Jim Herberg, Director of Operations & -Management Lisa Tomko, Director of Human Resources Patrick Miles, Director of Information Technoloav Nick Arhontes, Director of Regional Assets & Services Lilia Kovac, Committee Secretary Jeff Reed c: Lenora Crane AGENDA REGULAR JOINT MEETING OF THE FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE & STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, MARCH 1, 2006, AT 7:00 P.M. (1) ROLL CALL ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California 92708 www.ocsd.com (2) APPOINTMENT OF CHAIR PRO TEM, IF NECESSARY (3) PUBLIC COMMENTS (4) REPORT OF COMMITTEE CHAIR (5) REPORT OF GENERAL MANAGER (6) REPORT OF DIRECTOR OF FINANCE (7) REPORT OF Dl~ECTOR OF HUMAN RESOURCES/ PUBLIC INFORMATION OFFICE (8) REPORT OF GENERAL COUNSEL (9 ) CONSENT CALENDAR ITEMS Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. Approve minutes of the February 8, 2006, Finance, Administration and Human Resources Committee meeting. b. FAHR06-11 Receive and file Employment Status Report as of February 9, 2006. Book Page 11 Book Page 1 March 1 , 2006 Page 2 c. FAHR06-12 Recommend to the Board of Directors to approve SAFETY-POL-101, 102, 107, 202, and 402, and 405 as provided for in Resolution No. OCSD 02-5, regarding the District's Injury and Illness Prevention Program Policy. Book Page 16 END OF CONSENT CALENDAR d. Consideration of items deleted from Consent Calendar, if any. (10) ACTION ITEMS No items to be considered (11) INFORMATIONAL ITEMS a. FAHR06-13 Draft Independent Rate Study Book Page 106 (Lorenzo Tyner - 1 O minutes) b. FAHR06-14 Parcel Review -Top Commercial and Industrial Users Increases Book Page 124 (Lorenzo Tyner - 5 minutes) c. FAHR06-15 General Manager and Executive Management Team Purchase Approvals Book Page 140 (Lorenzo Tyner - 5 minutes) d. FAHR06-16 2006-07 and 2007-08 Budget Assumptions Book Page 143 (Lorenzo Tyner - 1 O minutes) e FAHR06-17 COP Series 2006 Debt Repayment Book Page 145 (Lorenzo Tyner - 5 minutes) f. FAHR06-18 Labor Relations Program Update/Employee Compensation Overview Book Page 148 (Paul Loehr -20 minutes) H :\dept\agenda\FAH R\FAH R2006\0306\03.030106 FAH R Agenda.doc Book Page 2 March 1 , 2006 Page 3 (12) CLOSED SESSION 1 During the course of conducting the business set forth on this' agenda as a regular meeting of the Committee, : 1 the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, : ! pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, [ /. 54957 or 54957.6, as noted. ! ~ i j Reports relating to (a). purchase and sale of real property; (b) matters of pending or potential litig~tion; (e) ·1 j empl9yee actions or ne'goliations with empl0yee representatives; or which are exempt from public;: disclosure l ! under the California Public Records Ae,t, mgy be review~d by the Committee during a, permitted closed session q ! and a,fe not available for public Inspection. At such time as final actions are taken ·by the Committee on any of \ I these subjects, the minutes will reflect all required disclosures of information. I : ................................. ••Ob••'··-··-·· .............................................................................................. Houu••···-·····-·······••, ............... H••1••····· .......... u.,_,, .......... ,u .. ,........ , ........ ·••· .. uo,o,HOOHOO-••-·J a. Convene in closed session. b. Reconvene in regular session. c. Consideration of action, if any, on matters considered in closed session. (13) OTHER BUSINESS, COMMUNICATIONS OR SLJPPLEMENTALAGENDA ITEMS, IF ANY (14) MATTERS WHICH~ DIRECTOR MAY WISH TO RLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT (15) FUTURE MEETING GATES The next Finance, Administration and Human Resources Committee Meeting is scheduled for April 12, 2006, at 5 p.m. (16) ADJOURNMENT H:\dept\agenda\FAHR\FAHR2006\0306\03.030106 FAHR Agenda.doc BookPage3 March 1 , 2006 Page4 Agenda P0stinq: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the District's Administrative offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Board Secretary. Items Not Posted: In the event any matter not listed on this agenda is proposed to be submitted to the Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or because there is a need to take immediate action, which need came to the attention of the Committee subsequent to the posting of agenda, or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. Public Comments: Any member of the public may address the Finance, Administration and Human Resources Committee on specific agenda items or matters of general interest. As determined by the Chair, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to three minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Committee except as authorized by Section 54954.2(b). Consent Calendar: All matters placed on the consent calendar are considered as not requiring discussion or further explanation, and unless a particular item is requested to be removed from the consent calendar by a Director of staff member, there will be no separate discussion of these items. All items on the consent calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All items removed from the consent calendar shall be considered in the regular order of business. The Committee Chair will determine if any items are to be deleted from the consent calendar. Items Continued: Items may be continued from this meeting without further notice to a Committee meeting held within five (5) days of this meeting per Government Code Section 54954.2(b)(3). Meeting Adjournment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955 (posted within 24 hours). A0commodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Board Secretary's office at (714) 593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Notice to Committee Members: For any questions on the agenda or to place any items on the agenda, Committee members should contact the Committee Chair or Secretary ten days in advance of the Committee meeting. Committee Chair: Committee Secretary: Interim General Manager: Director of Finance: Director of Human Resources: And Public Information Office Darryl Miller Lilia Kovac Jim Ruth Lorenzo Tyner Lisa Tomko (949) 453-5300 (714) 593-7124 lkovac@ocsd.com (714) 593-7110 jruth@ocsd.com (714) 593-7550 ltyner@ocsd.com (714) 593-7145 ltomko@ocsd.com H:\dept\agenda\FAHR\FAHR2006\0306\03.030106 FAHR Agenda.doc BookPage4 MINUTES OF THE REGULAR JOINT MEETING OF THE FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE & STEERING COMMITTEE Orange County Sanitation District Wednesday, February 8, 2006, 5:00 p.m. A joint meeting of the Finance, Administration and Human Resources Committee and the Steering Committee of the Orange County Sanitation District was held on February 8, 2006, at 5:00 p.m., in the Sanitation District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: FAHR COMMITTEE MEMBERS: DIRECTORS PRESENT: Darryl Miller, Chair Mike Duvall, Vice Chair Bill Dalton Phil Luebben Joy Neugebauer James W. Silva Mark Waldman Steve Anderson, Board Chair DIRECTORS ABSENT: Jim Ferryman, Vice Board Chair Rich Freschi STAFF PRESENT: Jim Ruth, Interim General Manager Lisa Tomko, Director of Human Resources Lorenzo Tyner, Director of Finance Bob Ghirelli, Director of Public Affairs Jeff Reed, Human Resources Manager Mike White, Controller Lilia Kovac, Committee Secretary Penny Kyle, Board Secretary Sonja Morgan Juanita Skillman Sue Walker OTHERS PRESENT: Brad Hogin, General Counsel Richard Kikuchi Sherish Patel Ed Soong Dan Duncan Ani Tawfik (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR Chair Miller announced to the committee that there would not be a quorum available in March to attend the meeting on the regular schedule. The Directors agreed that March 1, 2006 would be the best possible date to hold the March 2006 meeting. The meeting will be scheduled to start at 7:00 p.m. due to OMTS Committee beginning at 5:00 p.m. the same date. Book Page 5 Minutes of the Regular Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting Page 2 February 8, 2006 (5) REPORT OF THE GENERAL MANAGER Jim Ruth, Interim General Manager, reported that progress was being made in streamlining the performance appraisal process, as well as succession planning. (6) REPORT OF DIRECTOR OF FINANCE/TREASURER Director of Finance, Lorenzo Tyner, advised that a report of purchases at the Executive Management (EMT} level will be provided to the FAHR committee in March. (7) REPORT OF DIRECTOR OF HUMAN RESOURCES/PUBLIC INFORMATION OFFICE Lisa Tomko, Director of Human Resources, reported on the progress of the recruitment for the Public Information Manager position. (8) REPORT OF GENERAL COUNSEL Brad Hogin, General Counsel, had no report. (9) CONSENT CALENDAR ITEMS a. Approve minutes of the December 14, 2005, Finance, Administration and Human Resources Committee meeting. b. FAHR06-01 Item pulled for discussion. c. FAHR06-02 Receive and file OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. d. FAHR06-03 Recommend to the Board of Directors to receive and file report of General Manager approved purchases in amounts exceeding $50,000 in accordance with Board purchasing policies. e. FAHR06-04 Item pulled for discussion. MOTION: It was moved, seconded and duly carried to approve the recommended actions for items specified as 9(a), (c), and (d) under Consent Calendar. END OF CONSENT CALENDAR b. FAHR06-01 Receive and file Employment Status Report as of February 18, 2006. MOTION: Staff answered questions that Directors had on hiring freeze and current employment status. It was moved, seconded and duly carried to approve. Book Page 6 Minutes of the Regular Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting Page 3 February 8, 2006 e. FAHR06-04 Recommend to the Board of Directors to receive and file the FY 2005-06 Quarterly and Mid-Year Consolidated Financial Reports for the period ended December 31, 2005. MOTION: Staff answered questions that Directors had on the financial report, in particular the increases on chemicals and utilities. It was moved, seconded and duly carried to recommend approval to the Board of Directors. (10) ACTION ITEMS a. FAHR06-05 Recommend to the Board of Directors to approve the FY 2006-07 and FY 2007-08 Budget Assumptions and direct staff to prepare the FY 2006-07 -2007-08 Budget incorporating these parameters. MOTION: Lorenzo Tyner, Director of Finance, presented detailed information on the budget assumptions, and provided answers to the Directors' questions. It was moved, seconded and duly carried to recommend approval to the Board of Directors. b. FAHR06-06 Recommend to the Board to (1) Approve a Purchase Order Contract with Lance, Soll & Lunghard, Certified Public Accountants, as the District's contracted internal auditors for FY 2005-06, for the period of March 1, 2006 through February 28, 2007, for an amount not to exceed $58,670, with an option to renew the contract for two one-year periods based on approval by the FAHR Committee; and, MOTION: (2) Direct Lance, Soll & Lunghard to perform specific internal auditing assignments as the FAHR Committee deems necessary. Directors were introduced to the agency's representatives, Mr. Kikuchi and Mr. Patel, who answered questions about the auditing firm's background and processes. Directors gave the auditors the order of priorities to follow, as well as added cell phone usage to the audit list. It was moved, seconded and duly carried to recommend approval to the Board of Directors. c. FAHR06-07 Recommend to the Board to (1) Approve an agreement with Cambridge Integrated Services, Inc. for workers' compensation third-party administration services, for a reduced amount to be determined at the February 8, 2006 FAHR Committee meeting; -or- Book Page 7 Minutes of the Regular Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting Page4 February 8, 2006 MOTION: Direct staff to initiate a bid proposal process for workers' compensation third-party administration services. Staff recommended approval of the revised pricing agreement with Cambridge Integrated Services Group, Inc. as third-party administrator for Workers' Compensation as provided in Flat Fee Option B. It was moved, seconded and duly carried to recommend approval to the Board of Directors of the revised pricing agreement with Cambridge Integrated Services Group, Inc. for third-party administration of Workers' Compensation as provided in Flat Fee Option B. d. FAHR06-08 (1) Recommend that the Board of Directors Adopt Resolution No. MOTION: OCSD06-02, a Resolution of the Board of Directors of the Orange County Sanitation District Authorizing the Execution and Delivery by the District of an Installment Purchase Agreement, a Trust Agreement, a Standby Certificate Purchase Agreement, a Purchase Contract and a Remarketing Agreement in connection with the execution and delivery of Orange County Sanitation District Certificates of Participation, Series 2006, Authorizing the Execution and Delivery of such Certificates Evidencing Principal in an Aggregate Amount of Not to Exceed $200,000,000, Authorizing the Distribution of an Official Statement in Connection Therewith and Authorizing the Execution of Necessary Documents and Certificates and Related Actions. (2) Recommend that the Orange County Sanitation District Financing Corporation to adopt Resolution No. FC-03, Authorizing the Execution and Delivery by the Corporation of an Installment Purchase Agreement and a Trust Agreement in connection with the execution and delivery of Orange County Sanitation District Certificates of Participation, Series 2006; Authorizing the Execution and Delivery of such Certificates Evidencing Principal in an Aggregate Amount of Not to Exceed $200,000,000 and; Authorizing the Execution of Necessary Documents and Certificates and Related Actions. Staff and independent financial advisor, Mr. Ed Soong of Public Resources Advisory Group, answered questions from the Directors. It was moved, seconded and duly carried to recommend approval to the Board of Directors. (11) INFORMATIONAL PRESENTATIONS a. FAHR06-09 District Rate Model The Director of Finance gave a presentation on the rate model used by the Sanitation District, which identifies the allocation of funds received by ratepayers. Book Page 8 FAHR COMMITTEE Meeting Date 03/01/06 AGENDA REPORT I tem Number FAHR06-11 Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: Richard Spencer, Human Resources Supervisor SUBJECT: EMPLOYMENT STATUS REPORT AS OF FEBRUARY 9, 2006 GENERAL MANAGER'S RECOMMENDATION Receive and file the Employment Status Report. SUMMARY The number of full-time equivalent (FTE) employees at OCSD is 598.50; actual headcount is 610. PRIOR COMMITTEE/BOARD ACTIONS NIA PROJECT/CONTRACT COST SUMMARY NIA BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. ~ Not applicable (information item) ADDITIONAL INFORMATION NEW HIRES: 5 Total Job Title Division Administrative Assistant Engiheering & Construction Senior Contracts Administrator (2) Contracts, Purchc1.sl,ng & Materials Manag~melit Accounting Assistant II Accounting Intern Environmental C0mpliance Services H:\dept\agenda\FAHR\FAHR2006\0306\05.06-11 .EmplOyment Status.doc Page 1 Book Page 11 To Bel. of Dir. Item Number SEPARATIONS: 7 Total Job Title Division Reason Office Assistant Information Technology Administration Term for Cause Sr. Maintenance Supervisor Electrical & Instrumentation Maintenance Retirement Maintenance Worker Collection Facilities O&M Term for Cause Plant Operator Plant Operations, Plant 1 Term for Cause Senior Engineer Engineering Administration Retirement Source Control Inspector II Source Control Retirement Plant Operator Plant Operations, Plant 2 Retirement PROMOTIONS: 1 Total Name Former Job Title Current Job Title Division Darius Ghazi Buyer Senior Buyer Contracts, Purchasing & Materials Manaqement RECRUITMENT STATUS: All current recruitments have been reviewed and approved by the General Manager through the Position Analysis process. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. February 9, 2006 Employment Status Report 2. FY 2005/06 Staffing Report (year to date performance compared to budgeted FTE's) 3. Vacant positions not filled H:\dept\agenda\FAHR\FAHR2006\0306\05,06-11 Employment Status.doc Page 2 Book Page 12 - AGENDA REPORT TRANSMITTAL FORM As soon as the review of the Agenda Report is complete, call the contact person for pickup. Committee Name: _ _:,.F..,_A..:.:.H..:..:R....:,.._ _____ Meeting Date: ------'-'-M=a:.:....:rc=h.:....1..:...:.'""2=-=0c...=0--=6 __ _ Subject of Agenda Report: -----=E.:..:.m .. o=lo:c..Jy:.:..:mc..:..:e=n=t-=S=ta=t=u=-s ..:..R=e""p=o'"""rt __________ _ Report Type--Action (A) or Information (1): ill_Approximate Presentation Time: N/A minutes Originator/Contact Name: --=-R.:.:.ic:a.ch-=-=a=-=-r=d--=S'-"p'-=e"-'n=ce""r'---____ Telephone Ext. : __ .....:7.....:1-=6...;.4 ___ _ Presentation Support Needed: PowerPoint__ Other (specify) _________ _ (Send copy of this page to Dionne Kardos in Communications) REVISIONS DATE TO REQUIRED REVIEWED COMMENTS Division Manager Department Head General Manager Please complete the following section (required by Committee Secretary): 1. I will / will not attend the meeting 2. I will / will not eat dinner 3. The following person(s) will attend the meeting to assist with this presentation: (Please indicate if from an outside agency) H:\dept\agenda\FAHR\FAHR2006\0306\05.06-11.Employment Status.doc Page 3 Book Page 13 ll:J 0 0 ~ ~ CQ Cl) -a. ~ DIV 110 General Management Ad min General Management Totals 210 Finance Administration 220 Accounting 230 Conlracts, Purch. & Materials Mgmt Finance Totals 310 Public Affairs Administration 320 Board Services 330 Public Information Office 340 Legislative-Advocacy & Grants Public Affairs Totals 410 Regional Assets & Services Admin 420 Collection Facilities O&M 430 Facilities Maintenance Svcs Regional Assets & Services Totals 51 0 Human Resources Admin 520 Employee Development/Training 530 Safety & Health 540 Workforce Support Services 550 Employee & Labor Relations Human Resources Totals 610 Technical Services Admin 620 Environmental Assessment 630 Environmental Sciences Lab 640 Source Control 660 Environmental Compliance Svcs Technical Services Totals 710 Engineering Admin 740 Planning 750 Project Management Office 760 Engineering & Construction Engineering Totals 810 O&M Administration 820 O&M Process Engineering 830 Operations, Plant No. 1 840 Operations, Plant No. 2 850 Mech Main! & Power Production 860 Electrical & Instrumentation Main! Operations & Maintenance Totals 910 IT Administration 930 IT Customer & Network Support 940 IT Programming & Database Sys 950 IT Process Controls Integration Information Technology Totals GRAND TOTAL FTEs I AUTHORIZED FTE REG 0.50 0.75 3.00 . . 3.00 -. 2.00 . - 20.00 . . 27.00 0.50 . 49.00 0.50 . 3.00 . . 5.00 0.50 . 6.00 -- 1.00 -- 15.00 0.50 . 8.00 . . 24.00 . . 30.00 . . 62.00 . . 2.00 1.00 . 3.00 . . 8.00 . . 8.00 9.50 . 4.00 0.50 . 25.00 11.00 . 2.00 . . 15.00 -. 36.00 1.00 . 40.00 -. 18.00 . . 111.00 1.00 - 3.00 -. 16.00 . . 15.00 . 0.75 64.00 . . 98.00 . 0.75 5.00 . . 14.00 0.50 . 42.00 0.50 0.75 46.50 . . 58.00 0.50 . 54.00 0.50 . 219.50 2.00 0.75 3.00 . - 17.00 . . 12.00 -. 13.00 . . 45.00 . . 627.50 15.00 1.50 AUTHORIZED FTE 644.00 EMPLOYMENT STATUS REPORT ACTUAL FTE Recruitments \/~·1c;~·i!lG!e~~ TOTAL REG 0.50 0.75 LOA TOTAL 3.00 3.00 . . . 3.00 -. 3.00 3.00 . . . 3.00 -- 2.00 2.00 -. -2.00 - 20.00 17.00 --1.00 18.00 1.00 ::.oo 27.50 23.00 0.50 . -23.50 4.00 ,LOO 49.50 42.00 0.50 . 1.00 43.50 5.00 6.00 3.00 1.00 -. . 1.00 1.00 2 (l(j 5.50 5.00 0.50 -. 5.50 -- 6.00 6.00 -. -6.00 . . 1.00 1.00 ---1.00 -- 15.50 13.00 0.50 --13.50 1.00 2 00 8.00 7.00 -. -7.00 -1 00 24.00 23.00 . . -23.00 -I 00 30.00 27.00 ---27.00 -3.()i.) 62.00 57.00 . . . 57.00 . 5.00 3.00 2.00 1.00 --3.00 -- 3.00 3.00 ---3.00 -. 8.00 8.00 ---8.00 -- 17.50 6.00 8.50 --14.50 . c\OO 4.50 2.00 0.50 --2.50 2.00 2 DO 36.00 21.00 10.00 . . 31.00 2.00 5.00 2.00 2.00 ---2.00 -- 15.00 15.00 ---15.00 -- 37.00 34.00 1.50 --35.50 1.00 1 50 40.00 39.00 -. -39.00 -1.UO 18.00 18.00 ---18.00 - 112.00 108.00 1.50 -. 109.50 1.00 2.50 3.00 2.00 -- -2.00 -I UG 16.00 16.00 ---16.00 -- 15.75 13.00 . 0.75 -13.75 1.00 2 00 64.00 60.00 --1.00 61.00 -3.00 98.75 91.00 -0.75 1.00 92.75 1.00 6.00 5.00 5.00 ---5.00 -- 14.50 10.00 0.50 -. 10.50 2.00 ·l ()() 43.25 39.00 0.50 0.75 1.00 41.25 1.00 2 00 46.50 46.00 0.50 . -46.50 1.00 . 58.50 58.00 0.50 --58.50 -- 54.50 45.00 0.50 --45.50 8.00 ,!.DO 222.25 203.00 2.50 0.75 1.00 207.25 12.00 15.00 3.00 2.00 ---2.00 -'I 00 17.00 15.00 --1.00 16.00 1.00 1.00 12.00 11.00 ---11.00 -1 (IQ 13.00 12.00 . . -12.00 1.00 I CC 45.00 40.00 . -1.00 41.00 2.00 4.00 578.00 15.00 1.50 4.00 I =1 ACTUALFTE I+ I Recruitments I+ V~lCZll'IC!QS O:::~~--~ r::nuitn:.:ntc; 1 598.50 24.00 21.50 a, 0 0 ~ ~ IQ Cl) -a. UI STAFFING REPORT 700.00 - - ~ • • • -• • - •----·----• -• • • - - - - APR MAY Authorized FTE 629.00 629.00 Actual FTE 592.00 594.50 Difference** 37.00 34.50 Recruitments 30.00 31.00 Vacancies 7.00 3.50 * Authorized FTE as of July; actual FTE as of June **Difference = Recruitments + Vacancies JUN 629.00 601.00 28.00 23.00 5.00 JUL* SEP OCT NOV 644.00 644.00 644.00 644.00 606.00 597.50 595.50 595.50 38.00 46.50 48.50 48.50 20.00 36.50 38.50 38.50 18.00 10.00 10.00 10.00 • • • • • II DEC FEB MAR 644.00 644.00 644.00 598.50 601.00 598.50 45.50 43.00 45.50 36.50 16.50 24.00 9.00 26.50 21.50 J --+-Authorized FTE -II-Actual FTE ] FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: James Matte, Safety and Health Supervisor Meeting Date To Bel. of Dir. 03/01/2006 03/22/2006 Item Number Item Number FAHR06-12 SUBJECT: SAFETY POLICY, INJURY AND ILLNESS PREVENTION PROGRAM POLICY GENERAL MANAGER1S RECOMMENDATION Approve revisions to: • SAFETY-POL-101, Injury and Illness Prevention Program Policy • SAFETY-POL-102, Personal Protective Equipment Program • SAFETY-POL-107, Hazard Communication Program • SAFETY-POL-202, Accident Investigation Program • SAFETY-POL-402, Workers' Compensation Benefits Approve the new policy, Safety and Health Training Programs, SAFETY-POL-405, as provided for in Resolution No. OCSD 02-5 regarding the District's Injury and Illness Prevention Program. SUMMARY The District is submitting one new Safety and Health policy and revising five (5) of its Safety and Health Policies to reflect modifications brought about by regulatory changes, and internal administrative decisions. PRIOR COMMITTEE/BOARD ACTIONS Approval of Resolution No. OCSD 02-5 regarding the District's Injury and Illness Prevention Program. PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. 1Z! Not applicable (information item) Book Page 16 ADDITIONAL INFORMATION The written Injury and Illness Prevention Program Policy (SAFETY-POL-101) is being revised to update policy requirements in accordance with revised workplace procedures and to remove obsolete definitions. These changes are designed to make the policy more effective as a best management practice. There are no increased administrative or material costs associated with these changes. OCSD is revising its written Personal Protective Equipment Policy (SAFETY-POL-102) to establish a risk based program for the use of personal protective equipment as is done in practice. These revisions also mandate the use of electrically safe fabrics by personnel exposed to electrical currents which have the potential to provide an electrical arc. There are no increased administrative costs associated with these changes. OCSD is revising its written Hazard Communication Policy (SAFETY-POL-107) to add specific requirements for the Environmental Sciences Laboratory to ensure consistency with OCSD's Chemical Hygiene Program Policy (SAFETY-POL-113). These changes are considered a best management practice and go beyond what is required in Cal- OSHA regulations. There are no increased administrative or material costs associated with these changes. OCSD is revising its written Accident Investigation Policy (SAFETY-POL-202) to establish a root cause investigation model and define levels of property damage which will trigger an investigation as is done in current practice. These changes are considered a best management practice and go beyond what is required in Cal-OSHA regulations. There are no increased administrative or material costs associated with these changes. OCSD is revising its written Workers' Compensation Benefits Policy (SAFETY-POL- 402) to clarify the time limits for sick-industrial leave and formally establish an approval system for employees charging to the sick-industrial charge number. These changes are considered a best management practice and will improve the administration of workers' compensation. There are no increased administrative or material costs associated with these changes. OCSD is adding a new administrative policy regarding Safety and Health Training (SAFETY-POL-405). In April 2005, the administration of Safety and Health was transferred from the Employee Development Division to the Safety and Health Division. This new policy outlines roles and responsibilities for Safety and Health training. This policy is a best management practice. There are no increased administrative costs associated with these changes. These documents are presented for your review and adoption represents the Districts revised written Safety and Health Policies that conforms to applicable regulations found in the California Code of Regulations. H:\deptlagenda\FAHR\FAHR2006\0306\05.06-12.Safety & Health Policies.doc Revised: 8/20/01 Book Page 17 Page 2 ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. Injury and Illness Prevention Program Policy (SAFETY-POL-101) Rev 4 2. Personal Protective Equipment Program Policy (SAFETY-POL-102) Rev 1 3. Hazard Communication Program (SAFETY-POL-107) Rev 1 4. Accident Investigation Policy (SAFETY-POL-202), Rev 2 5. Workers' Compensation Benefits Policy (SAFETY-POL-402), Rev 1 6. Safety and Health Training Policy (SAFETY-POL-405) Rev 0 H:ldept\agenda\FAHR\FAHR2006\0306\05.06-12.Safety & Health Policies.doc Revised: 8/20/01 Book Page 18 Page 3 Injury and Illness Prevention Program SAFETY-POL-101 Contents 1 . Purpose ................................................................................................. 4 2. Definitions ............................................................................................ 4 3. Requirements ....................................................................................... 5 3.1 3.2 3.3 3.4 3.5 3.1.1 3.1.2 3.1.3 3.1.4 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 3.2.7 Program Responsibilities .......................................................................... 6 Administration ...................................................................................... 6 Management and Supervision ............................................................. ? Employee ............................................................................................. 7 Employee Safety Rules ....................................................................... 8 Hazard Awareness and Analysis ............................................................ 10 Pre-Use Analysis ............................................................................... 10 Comprehensive Safety and Health Surveys ...................................... 10 Periodic Self Inspections of Work Areas ........................................... 11 Routine Hazard Analysis ................................................................... 11 Employee Reports of Hazards .......................................................... 11 Incident and Accident Investigations ................................................. 12 Pattern Analysis ................................................................................ 12 Hazard Prevention and Control .............................................................. 12 3.3.1 Professional Expertise ....................................................................... 12 3.3.2 Written Safety and Health Policies and Procedures .......................... 13 3.3.3 Process Controls and Personal Protective Equipment ...................... 13 3.3.4 Emergency Preparedness and Planning ........................................... 13 3.3.5 Preventative Maintenance ................................................................. 14 Safety Training ....................................................................................... 14 3.4.1 Training Profiles ................................................................................ 14 3.4.2 Employee Training ............................................................................ 15 Safety Communication ........................................................................... 15 3.5.1 3.5.2 3.5.3 3.5.4 3.5.5 3.5.6 3.5.7 3.5.8 3.5.9 3.5.10 3.5.11 Signage ............................................................................................. 15 SafetyLine ......................................................................................... 15 Safety Awareness for Everyone (SAFE) Bulletins ............................. 15 Memorandums .................................................................................. 16 Safety Intranet ................................................................................... 17 Verbal Communication ....................................................................... 17 Safety Committee .............................................................................. 17 Safety Suggestion Box ...................................................................... 17 Rewards and Recognition Programs ................................................. 17 Post Incident Safety Stand Down ...................................................... 17 Safetygram ........................................................................................ 18 BookPage20 Injury and Illness Prevention Program SAFETY-POL-101 3.6 Safety Policy Enforcement and Discipline .............................................. 18 3.6.1 Safety Policy Enforcement ................................................................ 19 3.6.2 Discipline for Safety Policy Infractions ............................................... 19 3.7 Accident and Incident Investigations ...................................................... 19 3.8 Recordkeeping ....................................................................................... 19 3.8.1 Inspection Records ............................................................................ 19 3.8.2 Training Records ............................................................................... 19 3.8.3 Exposure Monitoring and Medical Records ....................................... 20 3.9 Integration of Safety Compliance Initiatives ........................................... 20 3.10 Coordination of Contractor Programs ..................................................... 20 4. References .......................................................................................... 20 5. Attach men ts ....................................................................................... 22 1 . Purpose ............................................................................................... 24 2. Requirements ..................................................................................... 24 2.1 Written Compliance Programs ............................................................... 24 Book Page 21 Injury and Illness Prevention Program SAFETY-POL-101 Process Program Administrator Red Tag Supervisor actions and; • Assumes significant responsibility for the preparation and administration of the assigned budget(s) A series of actions or operations directed toward a result. The person assigned the task of maintaining and auditing the Injury and Illness Prevention Program A red colored tag placed by an employee prohibiting the use tools or equipment because of the belief that the use of the tool or equipment will result in an accident or injury. Employee who: • Supervises, assigns and reviews the work of subordinates in assigned sections or work units and; • Works under direction or general direction of higher level supervisory or management staff, exercising discretion in selecting appropriate resources to use in accomplishing assigned work and; • Assumes responsibility for recommending a variety of personnel actions in such areas as performance evaluation, training, selection and disciplinary measures and; • Ensures that appropriate policies and procedures are followed by subordinates and; • Monitors, coordinates and assists in developing the budget for assigned area Safety Committee A committee made up of employees representing OCSD management and represented employees who meet to set safety goals and objectives and to solve safety related issues 3. Req uirements The required elements listed below are the ten elements of the Injury and Illness Prevention Program as required by the California Occupational Safety and Health Administration (Cal- OSHA). Specific details of each element may be found in specific referenced standard operating procedures, where applicable. Rev. d 1 Hard Copy Is Uncontrolled Date 06/24/2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc Book Page 23 5 of 31 Injury and Illness Prevention Program SAFETY-POL-101 3.1 Program Responsibilities This section outlines the responsibilities for the implementation and maintenance of this Injury and Illness Prevention Program . 3.1.1 Administration 1. The Safety and Health Division (Safety) shall be responsible for maintaining the written Injury and Illness Prevention Program. A. The Safety and Health Supervisor shall be the IIPP Program Administrator. 2. The Executive Management team (EMT) shall ensure that OCSD's safety programs have sufficient resources to maintain a safe and healthful workplace. Resources include but are not limited to: A. A competent safety staff. B. An adequate budget to maintain and improve the safety and emergency response program. C. An adequate budget for required controls to minimize safety and health risks to OCSD personnel, suppliers and the public. D. An adequate budget for required personal protective equipment as determined by Safety. E. Time for OCSD staff to attend required safety training at a frequency and duration determined by Safety. 3. The Safety and Health Division, in coordination with affected divisions, shall be responsible for ensuring that safety policy, safety procedures, safety programs and safe work practices are developed. 4. Safety and Health Division personnel shall have the authority to ensure that unsafe operations are stopped and that unsafe tools and equipment are removed from service in accordance with SAFETY-SOP-101.2, Red Tag Authority or if they believe, in their professional judgment, an imminent danger exists. 5. OCSD's General Manager shall be responsible for ensuring Rev. a .1 Hard Copy Is Uncontrolled Date 06t2412004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc Book Page 24 6 of 31 lniury and Illness Prevention Program SAFETY-POL-101 OCSD managers and supervisors comply with the provisions of this IIPP and other safety and health programs. 6. The Manager over the Safety and Health Division shall be responsible for ensuring the IIPP and other safety and health programs are implemented. 7. A copy of this IIPP shall be available to all employees either in an electronic or hard copy format. 3.1.2 Management and Supervision 3.1.3 Employee 1. Management and supervision shall ensure employees are provided with the proper tools and personal protective equipment. 2. Management and supervision shall ensure employees follow safe work practices, including but not limited to the wearing of personal protective equipment. 3. Management and supervision shall ensure employees are appropriately disciplined for infractions of safety rules, policies, procedures and programs. 4. Management and supervIsIon shall ensure periodic inspections of work areas are completed and documented in accordance with SAFETY-SOP-101 .1, Periodic Workplace Inspections. 5. Management and Supervision shall ensure that unsafe operations are stopped and that unsafe tools and equipment are removed from service in accordance with SAFETY- SOP-101.2, Red Tag Authority. 6. Management and supervision shall ensure identified hazards are reported, documented and corrected. 1. Employees shall comply with safe work practices, policies, procedures and safety programs. 2. Employees shall conduct daily inspections of their work area to check for unsafe conditions. This includes but is not Rev.~ 1 Hard Copy Is Uncontrolled Date Get:M/-2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc Book Page 25 7 of 31 Injury and Illness Prevention Program SAFETY-POL-101 limited to: A. Personal protective equipment B. Safety equipment such as fire extinguishers, safety showers and eyewashes C. Tools and equipment D. Vehicles. 3. Employees shall correct unsafe conditions as soon as possible, including the replacement of personal protective equipment. 4. Employees shall report unsafe conditions that cannot be corrected to supervision immediately and submit a CMMS request. 5. Employees shall attend safety training at the scheduled time. 6. Employees escorting contractors, vendors or visitors shall ensure that the proper personal protective equipment is used at all times and all safe work practices are observed. 3.1.4 Employee Safety Rules OCSD has established a set of generic safety rules that apply to all OCSD employees, visitors and contractors. Violators of these rules can be subject to disciplinary action, contract termination or removal from the site. 1. Maintain work area(s) in an orderly manner. 2. Obey all posted safety and traffic control signs and markings. 3. Oil, grease, paint and other slippery substances are to be cleaned up immediately. 4. Report all unsafe conditions to supervision or Maintenance (through the Computerized Maintenance Management System(CMMS System)) 5. Report all accidents to your supervisor, regardless of severity of the accident. Rev. d 1 Hard Copy Is Uncontrolled Date 06/24/2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc Book Page 26 8 of 31 lniury and Illness Prevention Program SAFETY-POL-101 6. Aisles and walkways are to be kept clear of tripping hazards and obstructions at all times. 7. Do not operate tools or equipment that you have not been trained to operate. 8. Engaging in horseplay or scuffling with fellow employees is prohibited at all times. 9. Pay close attention to your surroundings and do not read while walking. 10. Employees using prescription medication shall inform their supervisor of the medication use, type and possible effects when they report to work. 11. Walk only in designated walkways and roadways. Do not take shortcuts through process or storage areas. 12. Do not block access to safety equipment, electrical panels, fire extinguishers, etc. 13. Do not disconnect or over ride any machines interlock device. 14. Do not walk around barricades, tape or other devices being used to block access to unsafe conditions. 15. Do not smoke or use open flames in any area which has been designated a "NO SMOKING" area. 16. Observe all CAUTION" and" DANGER" signs throughout the plant. 17. Ladders are to be properly secured prior to use. When a ladder cannot be secured, a fellow employee must hold it. 18. Operation of equipment or machinery without proper guards and/or signaling devices is prohibited. 19. The unauthorized removal of guards or disconnecting of signaling devices is prohibited. 20. Personal protective equipment, safety glasses, hard hats, hearing protection, etc, shall be worn in all areas where required. 21. Extension cords shall not be used for installations for Rev. a .1 Hard Copy Is Uncontrolled Date Gel24/-2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc Book Page 27 9 of 31 Injury and Illness Prevention Program SAFETY-POL-101 periods longer than one (1) week. 22. Extension cords shall be inspected for defects prior to use. 23. Always use the proper tool for the job. 3.2 Hazard Awareness and Analysis OCSD has developed procedures for identifying and evaluating work place hazards, including scheduled periodic inspections to identify unsafe conditions and work practices. Inspection guidelines may be found in SAFETY -SOP-101 .1 , Periodic Workplace Inspection Procedures. 3.2.1 Pre-Use Analysis Engineering, Operation and Maintenance, Process Engineering, Facilities Maintenance, Purchasing or any other division proposing any process change that has the potential to impact the safety and health of OCSD employees, contractors or visitors shall, in coordination with Safety, conduct a pre-use analysis to determine the impact on safety. Pro use aRalysis shall be oonduotoa in aooordanoo 1A'ith S,A,FETY SOP 101 .a Pro Use Analysis. 3.2.2 Comprehensive Safety and Health Surveys The Safety and Health Division, in coordination with management and supervision, shall determine the scope and frequency for any comprehensive safety, health or industrial hygiene surveys. Survey scope and frequency shall be based upon: 1. Regulatory requirements. 2. Literature review for new information on recognized hazards. 3. Whenever new substances, processes, procedures, or equipment are introduced to the workplace that represent a new occupational safety and health hazard. 4. Employee input when applicable. Rev. J .1 Hard Copy Is Uncontrolled Date 06/24t2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc BookPage28 1 o of 31 Injury and Illness Prevention Program SAFETY-POL-101 5. The best judgment of Safety. The frequency of inspections shall not exceed one inspection per calendar quarter. 3.2.3 Periodic Self Inspections of Work Areas 1 . Division management and supervision shall be responsible for conducting periodic inspections of each work area to identify and evaluate hazards. 2. Periodic inspections shall be conducted in accordance with SAFETY-SOP-101.1, Periodic workplace Inspections. & Whenever new substances, processes, procedures, or equipment are introduced to the workplace that represent a new occupational safety and health hazard, supervision and/or management shall contact Safety to assist in a pre- Use Assessment. in aocordanoo 1.¥ith SP.rETY §>OP 101.8, Pro Use Analysis. 4. Whenever a manager/supervisor is made aware of a new or previously unrecognized hazard, Safety shall be contacted. 5. Division management and supervision shall not rely on periodic inspections performed by other divisions or committees as a substitute for required inspections. 3.2.4 Routine Hazard Analysis The Safety Division routinely conducts hazard analysis of OCSD operations and construction activities for jobs the Safety Division deems hazardous and all confined space entries. 3.2.5 Employee Reports of Hazards Employees are encouraged to report known and potential safety and health hazards. Mechanisms for reporting these hazards include: 1 . Reports to management and supervision 2. Reports through CMMS 3. Electronic mail (e-mail) to SafotyLino or Safety and Health staff Rev.~ ,1 Hard Copy Is Uncontrolled Date 06/24/2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc BookPage29 11 of 31 Injury and Illness Prevention Program SAFETY-POL-101 4. Safety Suggestion boxes 5. Safety and Health committee meetings 6. Reports to an employee's bargaining unit representative 7. Face to face meetings with Safety and Health staff. 3.2.6 Incident and Accident Investigations Incident and accident investigations are conducted on all incidents requiring a Property Disposition Report, all motor vehicle accidents and all Cal-OSHA recordable injuries. Other incidents may be investigated at the discretion of Safety. Accident investigations shall be conducted in accordance with SAFETY-POL-202, Accident Investigation and Reporting. Incident and accident investigations are conducted on all incidents involving $ 1,000.00 of property damage, all motor vehicle accidents and all Cal-OSHA recordable injuries. Other incidents may be investigated at the discretion of Safety. Accident investigations shall be conducted in accordance with SAFETY-POL-202, Accident Investigation and Reporting. 3.2. 7 Pattern Analysis Cal-OSHA logs and accident investigations shall be periodically reviewed by Safety to determine if any accidents or near misses have similarities. 3.3 Hazard Prevention and Control Accidents are prevented through the timely recognition and correction of hazards before someone is injured or property is damaged. 3.3.1 Professional Expertise OCSD will ensure that safety and emergency response division staff is adequately trained in the hazards inherent to a wastewater treatment plant. This includes providing staff with the resources necessary to perform assigned jobs, including but not limited to the following: Rev.~ ,1 Hard Copy Is Uncontrolled Date 06/2412004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc BookPage30 12 of 31 lniury and Illness Prevention Program SAFETY-POL-101 1 . Annual professional development 2. Certification maintenance as required by the certification authority. 3. Professional memberships. 4. Reference materials, such as: A. Books B. Codes, laws, regulations and consensus standards C. Internet access in accordance with established OCSD policy. 3.3.2 Written Safety and Health Policies and Procedures OCSD will develop and maintain safety policies, procedures and programs to ensure compliance with applicable Federal OSHA and Cal-OSHA requirements. Safety Policies and Procedure titles may be found in SAFETY-SOP-000.1 Control of Polices, Procedures, Programs. 3.3.3 Process Controls and Personal Protective Equipment OCSD shall use engineering controls to reduce employee exposures to physical and chemical hazards. Personal protective equipment shall be used when engineering controls are not feasible, have not been installed, or when emergency situations dictate such use. OCSD shall provide all required personal protective equipment, exoept as noted in SAFETY SOP 102.8, Employee Procured Personal Proteoti',e Equipment. 3.3.4 Emergency Preparedness and Planning OCSD has developed an Integrated Emergency Response Plan designed to prepare OCSD and employees for all types of emergencies, including but not limited to: 1. Medical emergencies 2. Fires Rev. ~ 1 Hard Copy Is Uncontrolled Date 06/24/2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc Book Page 31 13 of 31 Injury and Illness Prevention Program 3. Earthquakes 4. Floods 5. High water flows 6. Utility outages 7. Hazardous materials spills 8. Threatened or actual terrorist activities 9. Tsunamis 10. Workplace violence incidents 3.3.5 Preventative Maintenance SAFETY-POL-101 The operations and facilities maintenance divisions have developed a preventative maintenance program to ensure critical equipment does not fail and that safety related equipment is properly maintained. The CMMS system tracks the scheduled maintenance of these items. 3.4 Safety Training Safety training is required for all OCSD employees. New employees shall receive a New Employee Safety Orientation to familiarize them with the hazards of a wastewater treatment plant and OCSD safety policies and procedures. Safety training is typically based on job classification, hazards that will be anticipated in a job and the employee's actual job duties. 3.4.1 Training Profiles The Safety and Health Division shall meet with the manager or supervisor of each employee to determine which safety training classes shall be attended by each employee. Once a safety training profile has been developed for an employee, the training listed on the profile is mandatory. The Safety and Health Division and manager/supervisor shall use the following criteria to determine safety training requirements: 1. Job description 2. Actual job duties Rev. 31 Hard Copy Is Uncontrolled Date 06i24/2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc BookPage32 14 of 31 Injury and Illness Prevention Program SAFETY-POL-101 3. The anticipated job tasks of the employee 4. Anticipated future job tasks 5. Regulatory requirements 6. OCSD requirements based on : i. Previous job task requirements ii. Best industry practices. 3.4.2 Employee Training Employees shall receive safety training before they are required to perform a task and at the frequency specified in specific safety policies and procedures. 3.5 Safety Communication 3.5.1 Signage 3.6.2 SafetyLiRe OCSD utilizes several methods to communicate safety and health requirements, safety warnings and safety tips to all employees. OCSD posts hazard-warning signs where necessary to communicate safety and health requirements, safety warnings and safety tips to all employees. Signage is posted in accordance with Title 8 CCR §3340. Accident Prevention Signs. SafetyLine is a short tip on a variety of safety lopiss that aff.ect OCSD staff both -01'.l al'.ld off the job. 8af.et'y,LiRe is distributed to all OCSO employees v.iith e mail aosounts on payday. 3.5.3 Safety Awareness for Everyone (SAFE) Bulletins SAFE bulletins are issued on specific safety related items explaining how something should be done, or explaining how specific components of a safety program are to be implemented. Requirements and guidelines for developing SAFE Bulletins may be found in SAFETY-POL-103, Safety Awareness for Everyone Rev. 31 Hard Copy Is Uncontrolled Date 06/24/2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc Book Page 33 15 of 31 Injury and Illness Prevention Program SAFETY-POL-101 (SAFE) Bulletins. 1. SAFE Bulletins shall be considered OCSD policy for items not covered by specific policies. 2. A list of SAFE Bulletins may be found in SAFE Bulletin 000, List of SAFE Bulletins. 3. SAFE Bulletins shall be reviewed at least every 3 years. 4. SAFE Bulletins greater than three (3) years old shall not be considered OCSD policy. 3.5.4 Memorandums The Safety and Health Division will periodically issue memorandums regarding specific safety, health and hazardous waste issues. 1 . Memorandums shall be limited to a single topic. 2. Memorandums may be issued for the following reasons: To clarify an existing policy To implement a new policy on an emergency basis Memorandums implementing new requirements shall only be in force until: A new policy has been developed; or A SAFE bulletin has been developed; or A Ninety (90) day time period has elapsed To provide information To offer recommendations policy 3. A memorandum shall not revoke or supercede an adopted policy, unless authorized by the Director of Human Resources and the General Manager by signature. 4. E-mail shall not replace a memorandum. Rev. ~ 1 Hard Copy Is Uncontrolled Date 06,124/2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-an 1.doc BookPage34 16 of 31 lniury and Illness Prevention Program SAFETY-POL-101 3.5.5 Safety Intranet The Safety and Health Division maintains an intranet site where employees can go to obtain information on safety and health issues. Employees oan aooess the Safety Intranet site by following the instructions in attachment ,A,. 3.5.6 Verbal Communication Safety and Health Division staff is available for contact regarding concerns over safety and health issues. 1. Verbal communication shall not be used to change OCSD policy. 3.5. 7 Safety Committee OCSD has agreed to form a labor-management safety committee to address work related safety concerns. In addition, subject specific safety sub committees may be formed at any time with the concurrence of the Labor-Management Safety Committee to address specific safety concerns. Safety Committees shall be governed in accordance with SAFETY- SOP-000. 7, Safety Committees. 3.5.8 Safety Suggestion Box There are Safety Suggestion Boxes located around both Plant 1 and Plant 2. The purpose of the boxes is to allow employees to submit suggestions to Safety either by identifying themselves or anonymously. 3.5.9 Rewards and Recognition Programs The Safety and Health Division has developed a rewards and recognition program for employees who go above and beyond safe work practices and consistently display a positive safety attitude. 3.5.10 Post Incident Safety Stand Down A Safety Stand Down is a procedure in which all managerial personnel shall order a review of pertinent safety requirements for their employees. The review shall be a minimum of 30 Rev. d .4 Hard Copy Is Uncontrolled Date 06/24/2004 02/22/2005 h:\dept\agenda\tahr\tahr2006\0306\05.06-12.satety & health policies-att 1.doc Book Page 35 17 of 31 Injury and Illness Prevention Program SAFETY-POL-101 3.5.11 Safetygram minutes to discuss safety issues that affect their specific work group or to discuss an incident that may have occurred on a OCSD job site. The Safety Stand Down shall occur no later than the next work shift following an incident. A Safety Stand Down shall occur when any of the following conditions occur: 1; An injury to an OCSD employee that requires a report be made to Cal-OSHA. 2. A fatality that occurred to any persons on any OCSD job site. 3. Any accident that results in the overnight hospitalization of 2 or more employees, OCSD personnel or contractor personnel. 4. OCSD's General Manager, in consultation with the Safety and Health Division determines the need for a Safety Stand Down. A. Department and Division Managers and Supervisors may call for a Safety Stand Down at any time for their respective department and/or division. The Safety and Health Division shall be responsible for disseminating information regarding any incident requ iring a Safety Stand Down and any additional information requested by management. Safetygrams are developed by the Safety and Health Division for use by management and supervision as safety tailgate meeting topics. The topics are designed to be approximately five (5) minutes in length. 3.6 Safety Policy Enforcement and Discipline All employees, including managers and supervisors, are responsible for complying with safe and healthful work practices. All employees are responsible for complying with safety rules, Rev. a 1 Hard Copy Is Uncontrolled Date 0612412004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc BookPage36 18 of 31 Injury and Illness Prevention Program SAFETY-POL-101 policies and procedures. 3.6.1 Safety Policy Enforcement Each employee has a responsibility to ensure that work is performed in a safe manner. Employees shall report violations of safety rules and policies in accordance with established OCSD procedures. 3.6.2 Discipline for Safety Policy Infractions Employees who violate safety rules, policies and procedures are subject to disciplinary action, up to and including termination. Discipline shall be implemented in accordance with established OCSD policies, and bargaining unit MOUs where appropriate. Supervision and management shall be responsible for disciplining workers for failure to comply with safe and healthful work practices. 3. 7 Accident and Incident Investigations All accidents and near misses shall be investigated promptly. Accident and incident investigation shall be conducted in accordance with Safety-POL-202, Accident Investigation and Reporting. 3.8 Recordkeeping Records shall be maintained in accordance with specific Cal- OSHA requirements. Records not mentioned below are maintained in accordance with specific policies and procedures. 3.8.1 Inspection Records Records of safety inspections shall be kept 12 months after the last item found deficient has been corrected. Copies of safety inspections shall be kept in the Safety and Health Office at Plant No. 1. 3.8.2 Training Records Employee safety training records shall be maintained in Training Server, an electronic database. These records are retained for Rev. ~ .1 Hard Copy Is Uncontrolled Date OO~G4 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-au 1.doc Book Page37 19 of 31 Injury and Illness Prevention Program SAFETY-POL-101 the length of OCSD employment, plus five (5) years. 3.8.3 Exposure Monitoring and Medical Records Exposure monitoring and medical records shall be retained in accordance with SAFETY-POL-403, Access to Employee Medical Records and Title 8 California Code of Regulations, §3204. Access to Employee Exposure and Medical Records. 3.9 Integration of Safety Compliance Initiatives One goal of OCSD's safety and health program is to ensure that safety programs are not in conflict with one another. A second goal is to ensure that OCSD's overall mission can be accomplished while providing a safe and healthful work environment and achieving overall compliance with all applicable regulations and laws. 3.1 O Coordination of Contractor Programs OCSD requires all contractors that conduct business with the OCSD to have a safety program in place and conform to OCSD, state and federal requirements as required by approved purchase orders, contracts and specifications. Project Managers, Resident Engineers and Construction Inspectors who represent OCSD assigned to a project are responsible for enforcing the safety and health requirements of the contract. 4. References Title 8 California Code of Regulations, §3203. Injury and Illness Prevention Program Title 8 California Code of Regulations, §3204. Access to Employee Exposure and Medical Records Title 8 California Code of Regulations, §3340. Accident Prevention Signs California Labor Code, Sections 142.3, 4558 and 6401.7 California Government Code, Section 11346. California Code of Regulations, Title 8, Division 1, Department of Rev.~ .1 Hard Copy Is Uncontrolled Date 06/24/2004 02/22/2005 20 of 31 h:\dept\agenda\fahr\fahr2006\0306\05 .06-12.safety & health policies-att 1 .doc BookPage38 lniury and Illness Prevention Program SAFETY-POL-101 Industrial Relations California Code of Regulations, Title 22, Division 4.5 Hazardous Waste Management SAFETY-SOP-000.1 , Control of Polices, Procedures, Programs SAFETY-SOP-000.7, Safety Committees SAFETY-SOP-101.1 , Periodic Workplace Inspections SAFETY-SOP-101.2, Red Tag Authority SAFETY-POL-102, Personal Protective Equipment SAFETY-POL-103, Safety Awareness for Everyone (SAFE) Bulletins SAFETY-POL-104, Permit Required Confined Spaces SAFETY-POL-105, Hazardous Energy Control SAFETY-POL-106, Hearing Conservation SAFETY-POL-107, Hazard Communication Program SAFETY-POL-108, Contractor Safety Programs SAFETY-POL-109, Respiratory Protection Program SAFETY-POL-110, Radiation Safety Program SAFETY-POL-111, Chemical Hygiene Plan SAFETY-POL-112, Integrated Emergency Response Program SAFETY-POL-113 Exposure to Pathogens Program SAFETY-POL-114 Hazardous Waste Management SAFETY-POL-115 Backflow Prevention SAFETY-POL-201, Fire Prevention SAFETY-POL-202, Accident Investigation and Reporting SAFETY-POL-203, Ergonomics SAFETY-POL-204, Fall Protection SAFETY-POL-205, Electrical Safety Rev. ~ 1 Hard Copy Is Uncontrolled Date 06/24/2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc Book Page 39 21 of 31 Injury and Illness Prevention Program SAFETY-POL-101 SAFETY-POL-301, Vehicle Safety Operations (including carts and bicycles) SAFETY-POL-302, Marine Safety SAFETY-POL-303, Crane Safety SAFETY-POL-304, Forklift Operation SAFETY-POL-401, Medical Examinations SAFETY-POL-402, Workers' Compensation Benefits and Leave SAFETY-POL-403, Access to Employee's Medical Records SAFETY-POL-404, Return to Work Programs 5. Attach ments Attaohmont A: Acooss to Safety Intranet S-ito Attachment 8 A: OCSD Safety and Health Programs Attachment A: Access to Safety Intranet Site 1. ,A.fter logging into tho OCSD's oomputor neti.•.iork, open the Internet by placing the cursor over the "Internet Explorer" ioon and double cliok with the left button on the mouse. 2. Tho Internet Explorer opens to the OCSD's home page 3. Using the mouse, move the cursor O'.«orihe Department's pull down menu. Select "Safety. Double slick on «safety". 4. Select the spooifjo topic you ,,..,ish to view by placing the cursor over tho topic and double olioking on the button. Rev. d ,1 Hard Copy Is Uncontrolled Date 00/24/2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-au 1.doc Book Page40 22 of 31 Injury and Illness Prevention Program SAFETY-POL-101 Attachment 8 A: OCSD Safety and Health Programs Contents 1. Purpose ............................................................................................... 24 2. Requirements ..................................................................................... 24 2.1 Written Compliance Programs ......................................................................... 24 Rev. d .1 Hard Copy Is Uncontrolled Date 00/24/-2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc Book Page41 23 of 31 1. Purpose To promote a safe work environment for all employees and to ensure the OCSD meets the safety-related legal requirements for written compliance programs. 2. Requirements It is the OCSD's policy to provide a safe work environment for its employees. The OCSD is committed to ensuring compliance with all safety-related legal requirements and providing the necessary training to meet these requirements. 2.1 Written Compliance Programs The written compliance programs, which are detailed in specific Safety Policies, Procedures or Safety Programs (SPs), covered by this policy are: 1. Injury and Illness Prevention Program This program is mandated by Cal-OSHA CCR Title8, §3203, Injury and Illness Prevention Program. To meet the intent of this regulation, the OCSD has developed SAFETY-POL-101, Injury and Illness Prevention Program and SAFETY-SP-101 OCSD Safety and Health Program. The program includes information on safety commitment and responsibilities, hazard recognition, hazard assessment and control, safety communications, safety training, accident reporting and investigation, safety committees, and recordkeeping. 2. SAFETY-POL-102, Personal Protective Equipment Program This program is mandated by Cal-OSHA, California Code of Regulations (CCR), Title 8, Section (§) 3380, Personal Protective Devices. To meet the intent of this regulation, the OCSD has developed SAFETY-POL-102 Personal Protective Equipment. This program includes the requirements for selection, use, and care for devices designed for head, eye, body, hand, and foot protection. 3. SAFETY-POL-103, Safety Awareness For Everyone (SAFE) Rev. 4 Hard Copy Is Uncontrolled Date 02/22/2006 24 of 31 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc Book Page42 Injury and Illness Prevention Program SAFETY-POL-101 Bulletins SAFE bulletins are bulletins issued on specific safety related items explaining how something should be done, or explaining how specific components of a safety program are to be implemented. SAFE Bulletins shall be considered OCSD policy for items not covered by specific policies. SAFE Bulletins shall be reviewed at least every 3 years. SAFE Bulletins older than 3 years old shall not be considered OCSD policy. The policy for the development of SAFE Bulletins may be found in SAFETY-POL-103, Safety Awareness for Everyone (SAFE) Bulletins 4. SAFETY-POL-104, Permit Required Confined Spaces This program is mandated by Cal-OSHA CCR Title 8, § 5157, Permit-Required Confined Spaces. To meet the intent of the regulation, the OCSD has developed SAFETY-POL- 104, Permit Required Confined Spaces and SAFETY-SP- 104 Permit Required Confined Spaces. This program includes the requirements for the entrant, attendant, entry supervisor, and rescue team for confined space entry activities. 5. SAFETY-POL-105, Hazardous Energy Control This program is mandated by Cal-OSHA CCR Title 8, § 3314 Cleaning, Repairing, Servicing and Adjusting Prime Movers, Machinery and Equipment. To meet the intent of this regulation, the OCSD has developed SAFETY-POL-105, Hazardous Energy Control Programs and SAFETY-SP-105 Hazardous Energy Control. This program includes the requirements for working on or around equipment that is energized or has the potential to contain residual energy. 6. SAFETY-POL-106, Hearing Conservation This program is mandated by Cal-OSHA CCR Title 8, § 5097, Hearing Conservation. To meet the intent of this regulation, the OCSD has developed SAFETY-POL-106, Hearing Conservation Programs and SAFETY-SP-106 Hearing Conservation. This program includes the requirements for designating areas where hearing protection is required and the selection, use, and care for hearing protection devices. Rev.~ 1 Hard Copy Is Uncontrolled Date 06/24/2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc BookPage43 25 of 31 Injury and Illness Prevention Program SAFETY-POL-101 7. SAFETY-POL-107, Hazard Communication Program This program is mandated by Cal-OSHA, California Code of Regulations (CCR), Title 8, Section (§) 5194, Hazard Communication. To meet the intent of this regulation, the OCSD has developed SAFETY-POL-501, Hazard Communication. This program includes the requirements for training, use, labeling, Material Safety Data Sheets (MSDS) and employee training and education. 8. SAFETY-POL-108 Contractor Safety Programs This program is mandated by Cal-OSHA, California Code of Regulations (CCR), Title 8, Subchapter 4, Construction Safety Orders. To meet the intent of this regulation, the OCSD has developed SAFETY-POL-108, Contractor Safety Programs. This program includes the requirements for Contractor oversight for safety and health related issues by the OCSD during the completion of contracts. 9. SAFETY-POL-109, Respiratory Protection This program is mandated by Cal-OSHA CCR Title 8, § 5144, Respiratory Protection. To meet the intent of this regulation, the OCSD has developed SAFETY-POL-109 Respiratory Protection Program. This program includes the duties of the program administrator, supervisor, and respiratory user. Also defined in the program are the requirements for the selection, inspection, use, maintenance, and storage of respiratory protection devices. 10. SAFETY-POL-110 Radiation Safety Program This program is mandated by CCR Title 17, Division 1, Chapter 5, Subchapter 4, Radiation and Cal-OSHA Title 8, § 5076, Radiation and Radioactivity, Administrative Procedures. To meet the intent of the regulation, the OCSD has developed SAFETY-POL-110 Radiation Safety Program. This program includes the requirements for nuclear gauge users, contractors, service representatives, and visitors who enter into restricted areas where radioactive materials are used or stored. 11. SAFETY-POL-111, Chemical Hygiene Plan This program is mandated by Cal-OSHA CCR Title 8, § 5191, Occupational Exposure to Hazardous Chemicals in Rev. ~ 1 Hard Copy Is Uncontrolled Date 06/24/2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-an 1.doc BookPage44 26 of 31 Injury and Illness Prevention Program SAFETY-POL-101 Laboratories. To meet the intent of this regulation, the OCSD has developed SAFETY-POL-111 Chemical Hygiene Plan and Appendix B of the Laboratory Operating Procedures Manual. This program includes the duties of the Chemical Hygiene Officer, supervisor, and laboratory employee. 10. SAFETY-POL-112, Integrated Emergency Response Program This program is mandated by Cal-OSHA CCR Title 8, § 3220 Emergency Action Plan, § 3221 Fire Prevention Plan, § Hazardous Waste Operations and Emergency Response; CCR Title 19, § 2620 et seq. and Health and Safety Code § 25500 et seq. Minimum Standards for Business, § 2400 et seq. Standardized Emergency Management Systems; Title 22, § 66265.30 through 37, Preparedness and Prevention Plan, § 66265.50 through 56, Contingency Plan and Emergency Procedures; 40 Code of Federal Regulations (CFR) Part 112, Spill Prevention Control and Countermeasure Plan. To meet the intent of all the regulations, the OCSD has developed SAFETY-POL-112, Integrated Emergency Response Plan and SAFETY-SP- 112 Integrated Emergency Response Plan. This plan is divided into Volumes I and II. Volume I, Emergency Preparedness, contains the specific plans for preparing for an emergency. Volume II, Emergency Procedures, contains the specific plans and procedures to be implemented in response to an emergency. 13. SAFETY-POL-113, Exposure to Pathogens Program (Bloodborne Pathogens) This program is mandated by Cal-OSHA, California Code of Regulations (CCR), Title 8, Section (§) 5193, Bloodborne Pathogens for our Emergency Medical Team. Other aspects of the program are voluntary, but follow best industry practices. To meet the intent of the regulation referenced above, the OCSD has developed SAFETY-POL-113 Exposure to Pathogens and SAFETY-SOP-113-1 Exposure Control Plan. 14. SAFETY-POL-114, Hazardous Waste Management This program is mandated by Cal-EPA, California Code of Regulations (CCR), Title 22, Division 4.5 Hazardous Waste Management. To meet the intent of this regulation, the Rev.~ 1 Hard Copy Is Uncontrolled Date 06/24/2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc Book Page45 27 of 31 Injury and Illness Prevention Program SAFETY-POL-101 OCSD has developed SAFETY-POL-502 Hazardous Substance Management. This program includes the requirements for identification, packaging, labeling and disposal of hazardous waste. Requirements for training employees are also included 15. SAFETY-POL-115 Backflow Prevention Program This program is mandated California Department of Health Services Regulations, found in Titles 17 and 22 of the California Code of Regulations that require specific actions and practices be performed when safeguarding potable water systems. 16. SAFETY-POL-201, Fire Prevention Programs This program is mandated by Cal-OSHA, California Code of Regulations (CCR), Title 8, Sections (§) 3220, Emergency Action Plan, 3221, Fire Prevention Plan and 6150-6184, Fire Protection. To meet the intent of this regulation, the OCSD has developed SAFETY-POL-201 Fire Prevention. This program includes the requirements for the training of employees on evacuations, and fire systems maintenance, testing and upkeep. 17. SAFETY-POL-202, Accident Investigations This program is mandated by Cal-OSHA, California Code of Regulations, Title 8, Sections §330, Definitions, §3203. Injury and Illness Prevention Program; Title 8 California Code of Regulations, Chapter 7, Subchapter 1. Occupational Injury or Illness Reports and Records and Title 8 California Code of Regulations Chapter 3.2. , Subchapter 2, Article 3. Reporting Work-Connected Injuries, §342. Reporting Work- Connected Fatalities and Serious Injuries. To meet the intent of this regulation, the OCSD has developed SAFETY- POL-202 Accident Investigation. This program includes the requirements for the training of employees and supervisors on reporting and documenting industrial near misses and accidents. 18. SAFETY-POL-203, Ergonomics This program is mandated by Cal-OSHA, California Code of Regulations (CCR), Title 8, Section (§) 5110, Ergonomics. Rev. 3 _1 Hard Copy Is Uncontrolled Date 06.l24/2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-au 1.doc Book Page46 28 of 31 Injury and Illness Prevention Program SAFETY-POL-101 To meet the intent of this regulation, the OCSD has developed SAFETY-POL-203 Ergonomics. This program includes the requirements for evaluation of workstations, the selection, use, and care for devices designed to reduce hazards in the work place that can lead to repetitive motion and cumulative trauma injuries. 19. SAFETY-POL-204, Fall Protection This program is mandated by Cal-OSHA, California Code of Regulations (CCR), Title 8, Chapter 4, Subchapter 4, Construction Safety Orders and Subchapter 7, General Industry Safety Orders. To meet the intent of this regulation, the OCSD has developed SAFETY-POL-204, Fall Protection. This program includes the requirements for use of fixed, portable and personal fall protection equipment. 20. SAFETY-POL-205, Electrical Safety This program is mandated by Cal-OSHA, California Code of Regulations (CCR), Title 8, Sections (§) 2299-2974, Electrical Safety Orders. To meet the intent of this regulation, the OCSD has developed SAFETY-POL-205 Electrical Safety. This program includes the requirements for electrical installations, work practices when working on electrical equipment and the required personal protective equipment. 21. SAFETY-POL-301, Vehicle Safety This program is mandated by Cal-OSHA, as a general requirement of the OCSD's Injury and Illness Prevention Program. To meet the intent of this regulation, the OCSD has developed SAFETY-POL-301, Vehicle Safety. This program includes the requirements for vehicle inspection, vehicle maintenance and driver surveillance. 22. SAFETY-POL-302, Marine Safety This program is mandated by Cal-OSHA, as a general requirement of the OCSD's Injury and Illness Prevention Program. To meet the intent of this regulation, the OCSD has developed SAFETY-POL-302, Marine Safety. 23. SAFETY-POL-303, Crane Safety This program is mandated by Cal-OSHA, California Code of Regulations (CCR), Title 8, Chapter 4, Subchapter 7, Group Rev.~~ Hard Copy Is Uncontrolled Date 06,124/2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc BookPage47 29 of 31 Injury and Illness Prevention Program SAFETY-POL-101 13, Cranes and Other Hoisting Equipment. To meet the intent of this regulation, the OCSD has developed SAFETY- POL-303, Crane Safety. This program includes the requirements for training of personnel, inspection and maintenance of cranes. 24. SAFETY-POL-304, Forklift Operation This program is mandated by Cal-OSHA, California Code of Regulations (CCR), Title 8, Article 25, Industrial Trucks. To meet the intent of this regulation, the OCSD has developed SAFETY-POL-304, Forklift Operation. This program includes the requirements for training of personnel, inspection and maintenance of forklifts. 25. SAFETY-POL-401, Medical Programs This program is mandated by several different Cal-OSHA standards in California Code of Regulations (CCR), Title 8, Chapter 4, subchapter 7, General Industry Safety Orders. To meet the intent of this regulation, the OCSD has developed SAFETY-POL-401, Medical Examinations. This program includes the requirements for conducting medical surveillance on employees exposed to potentially hazardous work environments. 26. SAFETY-POL-402, Workers' Compensation Benefits and Leave Program. This program is represents the OCSD's compliance with the requirements of the California Code of Regulations, Title 8, Chapter 4.5 and 8, relating to Workers' Compensation. 27. SAFETY-POL-403, Access to Employee Medical Records This program is mandated by Cal-OSHA, California Code of Regulations (CCR), Title 8, Section (§) 3204, Access to Employee Medical Records. To meet the intent of this regulation, the OCSD has developed SAFETY-POL-403, which instructs employees how to access their occupationally related medical files. 28. SAFETY-POL-404, Return to Work Programs This program is a best industry practiced designed to return injured employees back to work on restricted duty. This program results in unspecified costs savings to the OCSD in Rev. 3 ,1 Hard Copy Is Uncontrolled Date 06/24/2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc BookPage48 30 of 31 Injury and Illness Prevention Program SAFETV-POL-101 terms of reduced workers compensation benefits, reduced disability payments and reduced costs associated with hiring temporary employees and overtime. 29.SAFETY-POL-405, Safety and Health Training Administration This program is a best industry practice that explains how the safety and health training program is managed and implemented. Rev. a 1 Hard Copy Is Uncontrolled Date 06/24/2004 02/22/2005 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 1.doc BookPage49 31 of 31 Personal Protective Equipment Policy SAFETY-POL-102 Contents 1 . Purpose ................................................................................................. 4 2. Definitions ............................................................................................ 4 3. Requirements ....................................................................................... 5 3.1 General .................................................................................................... 5 3.2 Safety and Health Division ....................................................................... 5 3.3 Management and Supervision .................................................................. 6 3.4 Purchasing and Warehouse ..................................................................... 6 3.4.1 Purchasing .......................................................................................... 6 3.4.2 Warehouse .......................................................................................... 7 3.5 Employees ............................................................................................... 7 3.6 Contractors and Visitors ........................................................................... 7 4. Personal Protective Equipment Usage .............................................. 8 4.1 Safety Glasses ......................................................................................... 8 4.2 Eye and Face Protection .......................................................................... 8 4.3 Head Protection ....................................................................................... 9 4.4 Gloves .................................................................................................... 10 4.5 Uniforms .................................................................................................. 10 4.6 Footwear ................................................................................................ 10 4. 7 Electrical Safety Equipment ................................................................... 11 4.8 Respiratory Protection ............................................................................ 12 4.9 Hearing Protection .................................................................................. 12 4.10 Other Personal Protective Equipment ...................................................... 12 5. Personal Protective Equipment Requirements ............................... 12 5.1 Eye and Face Protection ........................................................................ 13 5.2 Head Protection ..................................................................................... 13 5.3 Uniforms and Apparel. ............................................................................ 13 5.4 Footwear ................................................................................................ 13 5.5 Electrical Safety Equipment ................................................................... 14 5.6 Respiratory Protection ............................................................................ 15 5.7 Hearing Protection .................................................................................. 15 5.8 High Visibility Clothing ............................................................................ 15 5.9 Other Personal Protective Equipment .................................................... 15 6. Training Program ............................................................................... 15 6.1 Personal Protective Equipment Training Program ................................. 15 Rev. 1 Hard Copy Is Uncontrolled Date March 22, 2006 2 of 18 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 2.doc Book Page 51 Personal Protective Equipment Policy SAFETY-POL-102 6.2 Program Administration and Review ...................................................... 16 6.2.1 Program Administration and Review Process ................................... 16 7. References .......................................................................................... 17 8. Attachments ....................................................................................... 18 Rev. 1 Hard Copy Is Uncontrolled Date March 22, 2006 3 of 18 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 2.doc BookPage52 Number: SAFETY-POL-102 ~ Orange County Sanitation District Revision Number: 1 ~ '!JO Personal Protective Equipment Policy Date: March 22, 2006 1. Purpose 2. Definitions Approved by: Lisa Tomko Employees at the Orange County Sanitation District ( district) may be exposed to a variety of physical and chemical hazards that cannot be controlled by engineering methods. In these instances, employees, contractors and visitors are required to wear personal protective equipment in accordance with this document and the District's written Personal Protective Equipment Program (SAFETY-SP-102.1). SAFE Bulletins supplement this information. The purpose of this Personal Protective Equipment Policy is to establish a program that will protect employees from potentially harmful environments that cannot be controlled utilizing engineering controls and establishing the requirements for the selection, use, care and maintenance of personal protective equipment. This policy also establishes the training requirements for users of personal protective equipment. This program applies to all District employees, contractors and visitors on District sites. Construction Site An area delineated by the contractor and/or Construction Management or an area where physical delineation is not feasible, the construction site shall be defined as the area within 25 feet of any construction work that is in progress. Plant Process An area, structure or pipe within OCSD facilities where Area wastewater, biosolids, digester gas, or grit are collected, treated, stored, transported or discharged. Rev. O Hard Copy Is Uncontrolled Date March 22, 2006 4 of 18 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 2.doc BookPage53 Personal Protective Equipment Policy SAFETY-POL-102 3. Requirements 3.1 General The District shall establish a Personal Protective Equipment Program that will protect employees from potentially harmful environments that cannot be controlled utilizing engineering controls. This program shall establish the requirements for the selection, use, care and maintenance of personal protective equipment. This policy also establishes the training requirements for users of personal protective equipment. 1. Personal protective equipment shall be provided to employees at no cost to the employee within the requirements of this program. 2. Personnel shall wear personal protective equipment when working in areas posted to wear specific personal protective equipment and when required by the personal protective equipment program. 3. Non-district personnel shall wear safety glasses and head protection at all times when in plant process areas, construction sites and pump stations. 4. Personal protective equipment shall be selected based on a workplace survey of potential and known hazards. 3.2 Safety and Health Division 1. Specify personal protective equipment based on the hazards an employee may be reasonably expected to be exposed to in a work environment. 2. Coordinate with appropriate divisional management- supervision and identify areas, processes and specific job activities in which personal protective equipment is used or necessary due to unmitigated physical or chemical hazards. 3. Document each process and job task and the associated hazards Rev. 1 Hard Copy Is Uncontrolled Date March 22, 2006 5 of 18 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 2.doc Book Page 54 Personal Protective Equipment Policy SAFETV-POL-102 4 .. Assess the identified hazards that may require PPE for a process and/or job task. 5. Mandate appropriate personal protective equipment as controls a process and/or job task. 6. Communicate PPE requirements to affected departments and personnel. 7. Initiate the appropriate paperwork so the Purchasing- Warehouse Division may order and stock non-stock PPE in the warehouse. a. Substitution of PPE is NOT allowed without the written permission of the Safety and Health Division Supervisor. 3.3 Management and Supervision 1 . Review each process with a representative from the Safety and Health Division to identify the hazards of each process and/or job task. 2. Notify the Safety and Health Division of new or changed operations and/or chemicals. 3. Ensure annual budgets provide for the purchase of required personal protective equipment. 4. Ensure employees wear personal protective equipment as specified by posted signage or the requirements of SAFETY-SP-102 3.4 Purchasing and Warehouse 3.4.1 Purchasing 1. Procure personal protective equipment specified by the Safety and Health Division. 2. Notify the Safety and Health Division if specified equipment is no longer available prior to re-ordering stock equipment. Rev. 1 Hard Copy Is Uncontrolled Date March 22, 2006 6 of 18 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 2.doc BookPage55 Personal Protective Equipment Policy SAFETY-POL-102 3.4.2 Warehouse 3.5 Employees 3. Notify the Safety and Health Division of personnel protective equipment being procured by other Divisions 1. Stock and distribute personal protective equipment specified by the Safety and Health Division. 2. Notify the Safety and Health Division if specified equipment is no longer available prior to re-ordering stock equipment. 3. Notify the Safety and Health Division of personnel protective equipment being requested to be stocked by other Divisions 1. Employees shall comply with the requirements of this personal protective equipment policy and related documents. 2. Employees shall conduct inspections of their personal protective equipment before and after use to check for unsafe conditions. 3. Employees shall not use damaged or modified personal protective equipment. 4. Employees escorting contractors, vendors or visitors shall ensure that the proper personal protective equipment is used at all times and all safe work practices are observed 3.6 Contractors and Visitors 1. Contractors and visitors shall wear head Protection and safety glasses at all times while in plant process areas. 2. Contractors and visitors shall wear hard hat, safety glasses, closed toe shoes, long pants and tops/shirts with sleeves while on construction sites. Rev. 1 Hard Copy Is Uncontrolled Date March 22, 2006 7 of 18 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 2.doc BookPage56 Personal Protective Equipment Policy SAFETY-POL-102 4. Personal Protecti ve Equipment Usage Personal protective equipment shall be purchased and used in accordance with the requirements of this section. 4.1 Safety Glasses 1. This section applies to all District employees, contractors, and visitors. 2. Safety glasses with side shields shall be worn at all times in the areas designated below and where posted. a. Safety goggles meeting the impact requirements of ANSI Z 87 .1 may be worn in lieu of safety glasses with side shields. b. Safety glasses with side shields shall be worn at all times while on construction sites. 3. Safety glasses with side shields shall be worn at all times in the following circumstances: a. A district employee is a visitor to a site that requires the wearing of safety glasses. b. While performing any work that has the potential to pose a foreseeable hazard to the eye. c. Visitors shall wear safety glasses at all times while in plant process areas or as designated above. 4. As required when included in a job/site specific safety plan. 4.2 Eye and Face Protection Safety goggles and face shields provide greater protection against liquid splashed or flying debris than safety glasses alone. Safety goggles must meet the ANSI Z 87.1 standard for impact. Face shields shall always be worn in conjunction with safety glasses or goggles. Safety goggles shall be worn : 1. In all areas posted as "Safety Goggles and/or Face Rev. 1 Hard Copy Is Uncontrolled Date March 22, 2006 8 of 18 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 2.doc Book Page 57 Personal Protective Equipment Policy SAFETY-POL-102 Shields Required". 2. Chemical Bulk storage and distribution areas. 3. Areas where liquid splashes are likely when working with hazardous materials, waste water or sludge. 4. Maintenance on solids handling equipment. 5. Maintenance on methane gas, air, and water lines. 6. Maintenance on charged steam lines. 7. Grinding or chipping activities. 8. Consolidation of hazardous waste. 9. When working around cryogenic liquids. 10. Wastewater sample collection. 11.Laboratory work involving chemicals or wastewater 4.3 Head Protection Head protection shall be worn on construction sites or any area where there is a risk of head injury due to overhead or electrical hazards. In addition, visitors must wear head protection at all times while in plant process areas. 1. All hard hats purchased for district employee use shall be marked with the ANSI Z-89.1 rating and meet the class E rating for electrical shock. Hard hats shall be worn in the following areas: A. Construction sites. B. During electrical work when the hard hat is an integral part of electrical personal protective equipment. C. During welding operations if the hard hat is an integral part of the welding hood. D. Area within a 10 foot radius where work is being preformed on an elevated work platforms such as aerial lifts, scissor lifts and catwalks. Rev. 1 Hard Copy Is Uncontrolled Date March 22, 2006 9 of 18 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 2.doc Book Page 58 Personal Protective Equipment Policy SAFETY-POL-102 4.4 Gloves 4.5 Uniforms 4.6 Footwear E. Area within a 25 foot radius of a non construction work crane operation. 2. Hard hats or bump caps may be worn in the following areas: A. Confined space entry when designated in the job hazard analysis (JHA). B. Plant Tunnels and pump rooms Gloves shall be worn when employees are exposed to the following hazards: 1 . Working with chemicals. 2. Working with materials that may pose a hazard due to sharp edges, burrs, or other factors that may cut the hand. 3. Working with sludge or raw sewage. 4. Working with biosolids when they can come into contact with the hand 5 .. Performing work that may cause the hand to come into contact with blood or other potentially infectious materials Uniforms shall be worn in accordance with the requirements outlined in specific Memorandums of Understanding (MOU) and shall meet the requirements of section 5.4 of this document. 1. Footwear shall be worn by employees as designated in SAFETY-SP-102. 2. Footwear, when required, shall meet the requirements of ANSI Z 41 American National Standard for Personal Protection, Protective Footwear. Rev. 1 Hard Copy Is Uncontrolled Date March 22, 2006 1 0 of 18 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 2.doc Book Page 59 Personal Protective Equipment Policy SAFETY-POL-102 3. Employees in shops, plant process areas, construction sites, laboratories shall wear footwear that: a. Completely enclose the foot. b. Have slip resistant soles c. Have a heel less than 1 inch in height. 4.7 Electrical Safety Equipment 1 . Employees who may be exposed to electrical hazards on a routine basis shall be wear the following: a. Flame retardant long-sleeve shirt (minimum arc rating of 4) or coveralls (minimum arc rating of 4) worn over untreated cotton T-shirt (or an untreated natural fiber long-sleeve shirt). b. Untreated natural fiber pants. 2. Employees who may be exposed to electrical switching hazards shall wear the following: a. Multilayer flame retardant flash jacket and flame retardant bib overalls worn over either flame retardant coveralls (minimum arc rating of 4) or; b. Flame retardant long-sleeve shirt and flame retardant pants (minimum arc rating of 4), worn over untreated natural fiber long-sleeve shirt and pants, worn over an untreated cotton T-shirt; or c. Insulated flame retardant coveralls (with a minimum arc rating of 25, independent of other layers) worn over untreated natural fiber long- sleeve shirt with untreated denim cotton blue jeans ("regular weight," minimum 12 oz/yd2 fabric weight), worn over an untreated cotton T-shirt. 3. Additional personal protective equipment shall be worn in accordance based on the job hazard analysis and shall include arc-rated face shields or flash suit hoods, flame retardant hardhat liners, safety glasses or safety goggles, hard hat, hearing protection, leather gloves, voltage-rated Rev. 1 Hard Copy Is Uncontrolled Date March 22, 2006 11 of 18 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 2.doc Book Page 60 Personal Protective Equipment Policy SAFETY-POL-102 gloves, and voltage-rated tools. 4.8 Respiratory Protection Respiratory equipment shall be issued in accordance with the provisions of SAFETY-POL-109, Respiratory Protection Program. Cal-OSHA prohibits facial hair in places on the face and neck where it can interfere with the seal of a respirator on the face of the user. Therefore, employee's whose job classifications require the use of respiratory protective equipment shall be prohibited from wearing of facial hair from all areas of the face and body, which may interfere with the seal of respiratory protective equipment. Employees, who may be required to infrequently wear respiratory protective equipment and have the ability to shave prior to respiratory protection use, may have facial hair as long as it is removed prior to being fit tested or having to wear a respirator. 4.9 Hearing Protection Hearing protection shall be used in all areas designated "High Noise Areas". 4.1 O Other Personal Protective Equipment Other personal protective equipment used by OCSD employees shall be used in accordance with applicable OCSD policies, Cal- OSHA, US Coast Guard or other applicable state and federal laws, and site specific requirements. 5. Personal Protective Equipment Requirements Personal Protective equipment purchased for use by OCSD employees shall meet the requirements established below, or in accordance with applicable Cal-OSHA, US Coast Guard or other applicable state and federal law. Rev. 1 Hard Copy Is Uncontrolled Date March 22, 2006 12 of 18 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 2.doc Book Page 61 Personal Protective Equipment Policy SAFETY-POL-102 5.1 Eye and Face Protection Safety glasses, goggles and welding lenses shall meet the requirements of ANSI Z 87.1. Practice for Occupational and Educational Eye and Face Protection. 5.2 Head Protection 1. Hardhats shall meet the requirements of ANSI Z 89 .1, American National Standard for Head Protection, Type I or II, Class E. 2. Bump caps shall meet the requirements of ANSI Z 89.1, American National Standard for Head Protection, Class I, Type C. 5.3 Uniforms and Apparel 5.4 Footwear Uniforms for each employee who is exposed to the hazards of flames or electric arcs shall not increase the extent of injury that would be sustained by the employee. Uniforms for these work tasks shall not be made from the following types of fabrics, either alone or in blends, unless it can demonstrated that the fabric has been treated with flame retardant: 1. Acetate 2. Nylon 3. Polyester 4. Rayon Footwear shall meet the requirements of ANSI Z 41 American National Standard for Personal Protection, Protective Footwear. 5.5 Electrical Safety Equipment Equipment used for electrical protection shall meet the Rev. 1 Hard Copy Is Uncontrolled Date March 22, 2006 13 of 18 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 2.doc Book Page 62 Personal Protective Equipment Policy SAFETY-POL-102 following requirements: 1. American Society for Testing and Materials (ASTM). a. ASTM D 120-02, Standard Specification for Rubber Insulating Gloves, 2002. ASTM D 1048, Standard Specification for Rubber Insulating Blankets, 1999. b. ASTM D 1049, Standard Specification for Rubber Covers, 1998. c. ASTM D 1051-02, Standard Specification for Rubber Insulating Sleeves, 2002. d. ASTM F 696-02, Standard Specification for Leather Protectors for Rubber Insulating Gloves and Mittens, 2002. ASTM F 712, Standard Test Methods for Electrically Insulating Plastic Guard Equipment for Protection of Workers, 1995. e. ASTM F 1117-98, Standard Specification for Dielectric Overshoe Footwear, 1998. f. ASTM F 1506-02, Standard Performance Specification for Textile Material for Wearing Apparel for Use by Electrical Workers Exposed to Momentary Electric Arc and Related Thermal Hazards, 2002a. g. ASTM F 1891-02, Standard Specification for Arc and Flame Resistant Rainwear, 2002a. h. ASTM F 1959, Standard Test Method for Determining the Arc Thermal Performance Value of Materials for Clothing, 1999. i. ASTM F 2178-02, Standard Test Method for Determining the Arc Rating of Face Protective Products, 2002. 5.6 Respiratory Protection Respiratory protection shall meet the requirements of ANSI Z 88.2, for Respiratory Protection. Rev. 1 Hard Copy Is Uncontrolled Date March 22, 2006 14 of 18 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 2.doc Book Page 63 Personal Protective Equipment Policy SAFETY-POL-102 5.7 Hearing Protection Hearing protection shall have a minimum noise reduction rating of 25 decibels. 5.8 High Visibility Clothing Other personal protective equipment purchased for use by OCSD employees shall meet the requirements established in accordance with applicable Cal-OSHA, US Coast Guard or other applicable state and federal law. 5.9 Other Personal Protective Equipment Other personal protective equipment purchased for use by OCSD employees shall meet the requirements established in accordance with applicable Cal-OSHA, US Coast Guard or other applicable state and federal law 6. Training Program This section outlines the requirements the district has established to provide effective training to employees who are required to use personal protective equipment. 6.1 Personal Protective Equipment Training Program 1 . The Safety and Health Division shall establish a Personal Protective Equipment Training Program. 2. Training shall be provided prior to requiring the employee to use personal protective equipment in the workplace. 3. Retraining shall be administered annually, and when the following situation(s) occur. A. Changes in the workplace or the type of personal protective equipment render previous training obsolete. B. If the employee cannot demonstrate knowledge of or use the personal protective equipment. Rev. 1 Hard Copy Is Uncontrolled Date March 22, 2006 15 of 18 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-au 2.doc Book Page 64 Personal Protective Equipment Policy SAFETY-POL-102 C. Any other situation arises in which retraining appears necessary to ensure safe personal protective equipment use. 6.2 Program Administration and Review The district has designated a program administrator who is qualified by appropriate training and experience to administer and oversee the personal protective equipment program and conduct the required evaluations of program effectiveness. 6.2.1 Program Administration and Review Process This Personal Protective Equipment Program shall be evaluated annually to ensure that it is effective. The following steps shall be followed to conduct this program review: 1 . The Safety and Health Division shall determine if regulations or national consensus standards have changed since the last annual program review. A. Review Federal OSHA Standards, interpretations and documents. B. Review consensus standards. 2. The Safety and Health Division shall convene a Safety Sub Committee to review the current Personal Protective Equipment Program, proposed changes to State and Federal Regulations and national consensus standards and recommend changes to the District's Personal Protective Equipment Program as required. 3. The Safety and Health Division shall have 30 days to make minor program changes, and 60 days in the case of major program re-writes. 4. Personal Protective Equipment Program reviews shall start by February 15 of each year Rev. 1 Hard Copy Is Uncontrolled Date March 22, 2006 16 of 18 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 2.doc Book Page 65 Personal Protective Equipment Policy SAFETY-POL-102 7. References Title 8, California Code of Regulations, Subchapter 7, General Industry Safety Orders, Group 2, Safe Practices and Personal Protection, Article 10 Personal Safety Devices and Safeguards Title 8, California Code of Regulations Section 5144, Respiratory Protection. ANSI Z 41 American National Standard for Personal Protection, Protective Footwear ANSI Z 87.1. Practice for Occupational and Educational Eye and Face Protection ANSI Z 88.2, for Respiratory Protection. ANSI Z 89.1, American National Standard for Head Protection ANSI/ISEA 107-1999, American National Standard for High- Visibility Apparel. ASTM D 120-02, Standard Specification for Rubber Insulating Gloves, 2002. ASTM D 1048, Standard Specification for Rubber Insulating Blankets, 1999. ASTM D 1049, Standard Specification for Rubber Covers, 1998. ASTM D 1051-02, Standard Specification for Rubber Insulating Sleeves, 2002. ASTM F 696-02, Standard Specification for Leather Protectors for Rubber Insulating Gloves and Mittens, 2002. ASTM F 712, Standard Test Methods for Electrically Insulating Plastic Guard Equipment for Protection of Workers, 1995. ASTM F 1117-98, Standard Specification for Dielectric Overshoe Footwear, 1998. ASTM F 1506-02, Standard Performance Specification for Textile Material for Wearing Apparel for Use by Electrical Workers Exposed to Momentary Electric Arc and Related Thermal Hazards, 2002a. ASTM F 1891-02, Standard Specification for Arc and Flame Resistant Rainwear, 2002a. ASTM F 1959, Standard Test Method for Determining the Arc Thermal Performance Value of Materials for Clothing, 1999. Rev. 1 Hard Copy Is Uncontrolled Date March 22, 2006 17 of 18 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 2.doc Book Page 66 Personal Protective Equipment Policy SAFETV-POL-102 ASTM F 2178-02, Standard Test Method for Determining the Arc Rating of Face Protective Products, 2002. Memorandum of Understanding Between the Orange County Sanitation District and the International Union of Operating Engineers Local 501 for the Operations and Maintenance Unit Memorandum of Understanding Between the Orange County Sanitation District and the Employees in the Supervisor Group Memorandum of Understanding Between the Orange County Sanitation District and the Employees in the Professional Group SAFETY-POL-101, Injury and Illness Prevention Program SAFETY-POL-106, Hearing Conservation Program SAFETY-POL-109, Respiratory Protection Program SAFETY-SP-102.1 Personal Protective Equipment Program 8. Attac hments None Rev. 1 Hard Copy Is Uncontrolled Date March 22, 2006 18 of 18 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-an 2.doc Book Page 67 Hazard Communication Program SAFETY-POL-107 Contents 1 . Purpose ................................................................................................. 3 2. Definitions ............................................................................................ 3 3. Requirements ....................................................................................... 4 3.1 Hazardous Materials Procurements ......................................................... 5 3.2 Container Labels ...................................................................................... 5 3.3 Material Safety Data Sheets (MSDS) ....................................................... 5 4. Responsi bi I ities .................................................................................... 5 4.1 Safety and Health Division ....................................................................... 5 4.2 Employee Development Division .............................................................. 6 4.3 Environmental Service Laboratories ................................................ 6 4.4 Purchasing ............................................................................................... 5 4.5 Warehouse ............................................................................................... 7 4.6 Hazardous Materials Using Divisions ....................................................... 7 4.7 Contractors, Consultants, Visitors and Volunteers ................................... 8 5. Program Administration and Review ................................................. 8 6. References ............................................................................................ 8 7. Attachments ......................................................................................... & Rev. 1 Hard Copy Is Uncontrolled Date: January 10, 2006 2 of 8 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 3.doc Book Page 69 Hazard Communication Program SAFETY-POL-107 Health hazard Label A substance which is statistically significant evidence based on at least one study conducted in accordance with established scientific principles that acute or chronic health effects may occur in exposed employees. The term "health hazard" includes substances which are carcinogens, toxic or highly toxic agents, reproductive toxins, irritants, corrosives, sensitizers, hepatotoxins, nephrotoxins, neurotoxins, agents which act on the hematopoietic system, and agents which damage the lungs, skin, eyes, or mucous membranes. Any written, printed, or graphic material displayed on or affixed to containers of hazardous substances. Material Safety Data Written or printed material concerning a hazardous substance Sheet (MSDS) which is prepared in accordance to the California Code of Regulations, Title 8, Section 5194 (g). Physical hazard Trade secret A substance which is a combustible liquid, a compressed gas, explosive, flammable, an organic peroxide, an oxidizer, pyrophoric, unstable (reactive) or water-reactive material. Any confidential formula, pattern, process, device, information, or compilation of information which gives its user an opportunity to obtain a business advantage over competitors who do not know or use it. A trade secret shall not include chemical identity information which is readily discoverable through qualitative analysis. 3. Requirements This policy is based on a simple concept -that employees have both a need and a right to know the hazards and the identities of the chemicals they are exposed to in the workplace. Employees also need to know what protective measures are available to prevent adverse effects from occurring and where to obtain this information. By making job-specific hazard information available to employers and employees, and implementing recommended precautions for safe use, the result will be a reduction in illnesses and injuries caused by chemical exposure. Together, the District's and each employee's actions will prevent the occurrence of adverse health effects from the use of chemicals in the workplace. Rev. 1 Hard Copy Is Uncontrolled Date: January 10, 2006 4 of 8 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-au 3.doc Book Page 71 Hazard Communication Program SAFETY-POL-107 3.1 Hazardous Materials Procurements It is the policy of the District to reduce the use of hazardous materials/substances whenever feasible. Therefore, any hazardous material/substance being considered for use at any District facility shall be evaluated to ensure it is appropriate and the safest feasible alternative. All procurement of hazardous materials/substances shall be performed in accordance with the provisions of the District's written Hazard Communication Program (HCP: SAFETY-SP- 107.1 ). 3.2 Container Labels All containers of hazardous materials/substances shall be labeled and comply with the provisions of BCCR 5194, Hazard Communication, subpart (f) and the District's HCP. 3.3 Material Safety Data Sheets (MSDS) Every hazardous material/substance used or stored by or for the District must have a current and corresponding material safety data sheet (MSDS). Each MSDS shall contain the information required in 8 CCR, section 5194, Hazard Communication, subpart g, Material Safety Data Sheets. The District shall manage all MSDS in accordance with the provisions of the HCP. 4. Responsibilities 4.1 Safety and Health Division The Safety and Health Division shall be responsible for the following: Rev. 1 Hard Copy Is Uncontrolled Date: January 10, 2006 5 of 8 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 3.doc Book Page 72 Hazard Communication Program SAFETY-POL-107 • Develop a written Hazard Communication Program that will comply with the requirements of 8 CCR, Section 5194, Hazard Communication, and best industry practice. • Evaluate all MSDS for hazardous materials/substances prior to purchase. • Evaluate all MSDS related to contract work in accordance with the provisions of the District's HCP. • Manage the District's electronic MSDS database. • Oversee the activities of the District's Chemical Safety Subcommittee. • Provide training in accordance to the provisions of the District's HCP. • Maintain all incident reports submitted in relation to provisions of the HCP. • Procure contractor services, on an as needed basis, in accordance with District requirements. • Conduct program administration/review in accordance with the provisions of the District's HCP. 4.2 Employee Development Division The Employee Development Division shall be responsible for the following: • Maintain the District's Training Records Management System database. 4.3 Environmental Science Laboratories The Environmental Science Laboratories shall be responsible for the following: • Complying with the provisions of the District's Laboratory Safety and Chemical Hygiene Program • Manage chemical mixtures in accordance with the provisions Rev. 1 Hard Copy Is Uncontrolled Date: January 1 0, 2006 6 of 8 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 3.doc Book Page 73 Hazard Communication Program SAFETY-POL-107 4.4 Purchasing 4.5 Warehouse of the District's HCP. The Purchasing Division shall be responsible for: • Selecting vendors and establishing contracts or purchase orders to procure hazardous materials/substances. • Procuring only those hazardous materials/substances for which an approved MSDS is on file with the Safety and Health Division Office. The Warehouse shall be responsible for: • Ensuring all packages of hazardous materials/substances are labeled at the time of delivery form the vendor. • Not accepting packages of hazardous materials/substances that are damaged, leaking or unlabeled or have damaged labels. 4.6 Hazardous Materials Using Divisions Divisions responsible for using hazardous materials/substances shall be responsible for: • Ensuring an approved MSDS is in the MSDS database prior to submitting a procurement request or procuring the material. • Ensuring appropriate personal protective equipment, as recommended by the MSDS, is available for use by employees. • Ensuring employees have access to MSDS during working hours. • Ensuring employees receive training on the hazards of Rev. 1 Hard Copy Is Uncontrolled Date: January 1 0, 2006 7 of 8 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 3.doc Book Page 74 Hazard Communication Program SAFETY-POL-107 hazardous materials they work with or may be exposed to. • Conducting inspections of hazardous materials storage areas for leaking or damaged containers. • Ensuring hazardous materials storage areas, for projects they are coordinating and/or overseeing, meet all applicable regulatory and District requirements. 4.7 Contractors, Consultants, Visitors and Volunteers Contractors, consultants, visitors and volunteers shall not bring hazardous materials onto any District facility unless an MSDS has been provided to the Safety and Health Division Office. Additionally, they shall comply with the provisions of the District's HCP. 5. Program Administration and Review The Hazard Communication Program shall be managed and administered by the Safety and Health Division. Tflis Hazard Communication Program shall be evaluated annually to ensure that it is effective. Program reviews shall minimally occur in November of each calendar year. 6. References Title 8, California Code of Regulations, Section 5194, Hazard Communication SAFETY-POL-101 Injury and Illness Prevention Program SAFETY-SP-107.1 Hazard Communication Program 7. Attachments None Rev. 1 Hard Copy Is Uncontrolled Date: January 10, 2006 8 of 8 h:\dept\agenda\fahr\fahr2006\0306\05.06-12.safety & health policies-att 3.doc Book Page 75 Accident Investigation and Reporting SAFETY-POL-202 Contents 1. Purpose ................................................................................................. 3 2. Definitions ............................................................................................ 3 3. Requirements and Responsibilities ................................................... 5 3.1 General Requirements ............................................................................. 5 3.1 .1 Safety and Health Division Responsibilities ........................................ 6 3.1 .2 Manager and Supervisor Responsibilities ........................................... 7 3.1 .3 Employee Responsibilities .................................................................. 7 3.2 Accidents In Which Personnel Are Injured or Equipment is Damaged ..... 7 3.2.1 Off Site Accidents ................................................................................ 9 3.2.2 On Site .............................................................................................. 11 3.3 Near Miss Accidents ............................................................................... 12 3.4 Safety-Health Investigation Team .......................................................... 13 3.5 Employee Training ................................................................................. 14 3.6 Program Administration .......................................................................... 14 4. References .......................................................................................... 15 5. Attachments ....................................................................................... 15 Rev. 2 Date: March 22, 2006 2 of 15 Book Page 77 Hard Copy Is Uncontrolled Accident Investigation and Reporting SAFETY-POL-202 Lost workdays Manager Near Miss Recordable Injury Reportable Injury Serious Injury or Illness Rev.2 Date: March 22, 2006 The number of days (consecutive or not) after, but not including, the day of injury or illness during which the employee would have worked but could not do so; that is, could not perform all or any part of his normal assignment during all or any part of the workday or shift, because of the occupational injury or illness. Employee who : • manages, plans, supervises and coordinates the operations and activities of one or more major District divisions and works under general direction or administrative direction of a Department Director or the General Manager, exercising discretion in applying general goals and policy statements and in resolving organizational and service delivery problems and; • Organizes and directs the work of subordinate staff, and; • Assumes significant responsibility for a variety of personnel activities in such areas as selection, training and disciplinary actions and; • Assumes significant responsibility for the preparation and administration of assigned budget(s) Any potentially hazardous situation that has not resulted in a personal injury or property damage and/or an observed breaking of a District policy, procedure or regulatory requirement as they relate to safety and health. Any occupational injuries or illnesses which result in fatalities, regardless of the time between the injury and death, or the length of the illness; or lost workday cases, other than fatalities, that result in lost workdays; or nonfatal cases without lost workdays which result in transfer to another job or termination of employment, or require medical treatment (other than first aid) or involve loss of consciousness or restriction of work or motion. This category also includes any diagnosed occupational illnesses which are reported to the employer but are not classified as fatalities or lost workday cases. Any serious injury or illness, or death, of an employee occurring in a place of employment or in connection with any employment. Means any injury or illness occurring in a place of employment or in connection with any employment which requires inpatient hospitalization for a period in excess of 24 hours for other than medical observation or in which an employee suffers a loss of 4 of 15 Book Page 79 Hard Copy Is Uncontrolled Accident Investigation and Reporting SAFETY-POL-202 Supervisor Vehicle any member of the body or suffers any serious degree of permanent disfigurement. Employee who: •Supervises, assigns and reviews the work of subordinates in assigned sections or work units, and; •Works under direction or general direction of higher level supervisory or management staff, exercising discretion in selecting appropriate resources to use in accomplishing assigned work, and; •Assumes responsibility for recommending a variety of personnel actions in such areas as performance evaluation, training, selection and disciplinary measures, and; •Ensures that appropriate policies and procedures are followed by subordinates, and; •Monitors, coordinates and assists in developing the budget for assigned area Is a device by which any person or property may be propelled, moved, or drawn upon a highway, including devices moved exclusively by human power or used exclusively upon stationary rails or tracks. This includes electric carts and bicycles. 3. Requi rements and Responsi biliti es 3.1 General Requirements Rev. 2 Date: March 22, 2006 1. Accident/incident investigations shall be fact-finding. Root cause determination is the primary goal. 2. The Safety and Health Division shall be immediately notified by the responsible manager/supervisor of all accidents/incidents that : A. Require an outside agency to respond to a medical aid situation. B. Involve a vehicle and an injury while the driver is on 5 of 15 Book Page BO Hard Copy Is Uncontrolled Accident Investigation and Reporting SAFETY-POL-202 district business. C. Involve a vehicle that is on district property. D. Involve more than $2,§00 1000.00 in property damage. E. Is a Cal-OSHA reportable or recordable injury (1) Including contractors hired by OCSD. F. Involve a response of the district's emergency medical unit. G. Require any report to be made to any regulatory authority. 3. Completion of these Accident/Incident Investigation reportsform involving district staff shall be returned to the Safety and Health Division Office no later than three (3) days following the accident/incident by the supervisor/manager of the person(s) injured. 4. Completed accident/incident investigation reports for accidents involving contractor personnel or visitors shall be submitted to the Safety and Health Division office with in five (5) business days of the accident/incident by the division responsible for managing the contractor or visitor. A. If the incident, in the opinion of the Safety and Health Division, had the potential to lead to an imminent danger situation, the Safety and Health Division may stop all work on a jobsite until an incident report has been received. (1) Work shall be stopped in accordance with the requirements of "safety stand downs" as specified in SAFETY-POL-101, Injury, Illness Prevention Programs. 3.1.1 Safety and Health Division Responsibilities Rev.2 Date: March 22, 2006 1 . The Safety and Health Division shall be responsible for developing and implementing the Accident/Incident Investigation and Reporting Program. 2. The Safety and Health Division shall be responsible for maintaining accident reports and OSHA recordkeeping 6 of 15 Book Page 81 Hard Copy Is Uncontrolled Accident Investigation and Reporting SAFETY-POL-202 activities. 3. The Safety and Health Division shall be responsible for coordinating the activities for supplemental accident/incident investigations as outlined in section 3.1. 4. The Safety and Health Division shall be responsible for notifying Cal-OSHA of all reportable accidents. 5. The Safety and Health Division shall be responsible for conducting training for employees on proper accident investigation techniques. 3.1.2 Manager and Supervisor Responsibilities 1 . Managers and supervisors shall be responsible for conducting accident/incident investigations in accordance with established procedures. 2. Managers and supervisors shall be responsible for ensuring all accident and incident reports are completed and returned to the Safety and Health Division within 3 days of the accident. (Five days for contractor or visitor accidents/incidents) 3. Managers and/or supervisors shall be responsible for ensuring all recommended corrective actions are addressed and completed. 3.1.3 Employee Responsibilities Rev.2 Date: March 22, 2006 1. Employees shall report all accidents and incidents to their manager/supervisor on the same shift the accident or incident occurred. A. The manager/supervisor shall document the accident or incident and forward the report to the Safety and Health Division. 2. Employees shall report all near miss accidents/incidents to either their manager/supervisor or the Safety and Health Division on the same shift the accident or incident occurred. 3. Employees shall fully cooperate with managers, supervisors and Safety and Health personnel who are conducting the 7 of 15 BookPage82 Hard Copy Is Uncontrolled Accident Investigation and Reporting SAFETY-POL-202 accident/incident investigation. A. Employees may have bargaining unit representation present during accident investigations. 4. Employees shall promptly complete and return all paperwork regarding the incident/accident as required. 3.2 Accidents in Which Personnel Are Injured or Equipment is Damaged Rev. 2 Date: March 22, 2006 1 . If the accident is serious and the employee is unable to leave the scene of the accident, help shall be summoned, using the extension 222 emergency number. A. The Control Center shall notify: (1) The Medical Unit Team if the accident/incident is at Plant 1 or Plant 2. (2) Outside Medical services as required (911 ). (3) Safety and Health Division personnel. (4) The appropriate management personnel. B. Notification shall be by : (1) Land telephone. (2) Cellular telephone (including Nextel). (3) Mobile radio. 2. The Control Center shall dispatch personnel to meet outside medical services at the front gate as necessary and escort them to the accident site. 3. The employee or another employee shall notify their supervisor of an accident. 4. After the injured person is tended to, an accident/incident investigation shall be started by the supervisor as soon as possible. A. The supervisor shall complete the Accident Report form. 8 of 15 Book Page 83 Hard Copy Is Uncontrolled Accident Investigation and Reporting SAFETY-POL-202 5. The accident investigation shall be conducted in accordance with SAFETY-SOP-202.1, Accidents In Which Personnel Are Injured. 6. The supervisor/manager may contact the Safety and Health Division for assistance with the accident investigation. 7. The accident scene shall be preserved until the accident investigation has been completed. 3.2.1 Off Site Accidents Employees and Passengers Rev. 2 Date: March 22, 2006 1. If safe, stop immediately and determine possible damage. Avoid obstructing traffic if possible. The vehicle shall be moved to a safe location as soon as possible. 2. Aid the injured and see to it that they receive medical attention as soon as possible by local EMS personnel (911 ). 3. If the vehicle is equipped with a radio, call the Control Center and have the Control Center call the local police. If the vehicle does not have a radio, call the police from a nearby telephone and call your supervisor. Request assistance in the investigation process if necessary. Note: A police report is needed when the accident involves the public or non-district property. If the police do not respond, the employee should obtain all pertinent information available from the other driver and the accident scene and then go to the police department with local jurisdiction to file a report. 4. Identify as many witnesses as possible and obtain their name, address, and home and work phone numbers. 5. Using the camera in the vehicle accident photo pack, take pictures of each vehicle involved and the road conditions. (See SAFETY-SOP-202.2) 6. Do not discuss the accident with anyone other than the police and District personnel. A. Provide only your name, agency name and address, and work telephone number. 9 of 15 Book Page 84 Hard Copy Is Uncontrolled Accident Investigation and Reporting SAFETY-POL-202 Supervisor B. Obtain a business card from the police officer and ask them to record the accident case number on the card. 7. The driver, and each employee passenger, and each employee witness should assist in completion of the Vehicle Accident Report (unless involved parties are incapacitated or deceased) during the shift in which the accident occurred. 8. The Safety and Health Division must be notified of the accident as soon as possible. 9. Conduct an accident investigation (at the accident scene if possible) and determine actions to prevent accident recurrence. A. The accident investigation shall be conducted in accordance with SAFETY-SOP-202.2, Investigating On/Offsite Vehicle Accidents. Division Manager 10. Complete and sign the Vehicle Accident Report. 11. The completed and approved Vehicle Accident Report must be delivered to the Safety and Health Division and the appropriate Division Manager before the end of the shift. If the accident occurs during evening, weekend, or holiday hours, the Vehicle Accident Report shall be distributed at the beginning of the next week day shift. 12. Determine if participation in the investigation at the scene of the accident is warranted. This decision is based on personal injury and the severity of the equipment/property damage. 13. Review and approve the Vehicle Accident Report. 14. Ensure that actions to prevent accident recurrence are Safety and Health completed and documented. Rev. 2 Date: March 22, 2006 15. Send written verification of completion to the Safety and Health Division. 16. Track completed and outstanding actions to prevent accident recurrence and forward completed items to the Safety and Health Division. 17. Participate in the investigation at the scene of the accident 10 of 15 Book Page 85 Hard Copy Is Uncontrolled Accident Investigation and Reporting SAFETV-POL-202 3.2.2 On Site Employee Supervisor Rev.2 Date: March 22, 2006 if the accident resulted in personal injury and/or significant equipment/property damage. 18. Review the Vehicle Accident Report and determine if an additional investigation is warranted. 19. Forward copies of the Vehicle Accident Report to the Fleet Services Supervisor. 20. Distribute completed and outstanding actions and recommendations to prevent accident recurrence. 1. Stop immediately and determine possible damage. Move the vehicle to the side of the road if possible. Avoid obstructing traffic if possible. A. Call for assistance if traffic/crowd control is required. 2. Aid the injured and see to it that they receive medical attention as soon as possible. A. Notify the Control Center who will notify the Medical T earn via 222 reporting 3. Call the Control Center and have the Control Center call the Safety and Health Division. 4. Call your supervisor. Request assistance in the investigation process if necessary. A. The accident investigation shall be conducted in accordance with SAFETY-SOP-202.2, Investigating Vehicle Accidents. 5. Identify as many witnesses as possible and obtain their name. 6. The driver, and each employee passenger, and each employee witness should assist in completion of the Vehicle Accident Report during the shift in which the accident occurred. 7. The supervisor shall conduct an accident investigation (at the accident scene if possible) and determine actions to 11 of 15 Book Page 86 Hard Copy Is Uncontrolled Accident Investigation and Reporting SAFETY-POL-202 Division Manager prevent accident recurrence. 8. The supervisor shall complete and sign the Vehicle Accident Report. 9. The completed and approved Vehicle Accident Report must be delivered to the Safety and Health Division and the appropriate Division Manager before the end of the shift. 10. The division manager shall review and approve the Vehicle Accident Report. 11. The division manager shall ensure that actions to prevent accident recurrence are completed and documented. 12. The division manager shall send written verification of completion to the Safety and Health Division. Safety and Health 13. The division manager shall track completed and outstanding actions to prevent accident recurrence and forward completed items to the Safety and Health Division. 14. The Safety and Health Division shall participate in the investigation at the scene of the accident if the accident resulted in personal injury and/or significant equipment/property damage. 15. The Safety and Health Division shall review the Vehicle Accident Report and determine if an additional investigation is warranted. 16. The Safety and Health Division shall distribute completed and outstanding actions and recommendations to prevent accident recurrence . 3.3 Near Miss Accidents Rev. 2 Date: March 22, 2006 1. The employee shall notify their supervisor of a near miss accident. 2. The employee and supervisor shall conduct an investigation into the causes of the near miss accident. A. The near miss shall be documented on the accident 12 of 15 Book Page 87 Hard Copy Is Uncontrolled Accident Investigation and Reporting SAFETY-POL-202 report form. 3. The accident investigation shall be conducted in accordance with SAFETY-SOP-202.1. 4. The supervisor/manager may contact the Safety and Health Division for assistance with the Near Miss Accident Investigation. 5. The near miss scene shall be preserved until the near miss accident investigation has been completed. 3.4 Safety-Health Investigation Team Rev. 2 Date: March 22, 2006 1 . The Safety and Health Division shall coordinate the formation of a Safety-Health Investigation Team for all accidents 2. The members of the Safety-Health Investigation Team shall receive training in conducting an accident investigation. A. Training shall be conducted at least biennially. 3. The Safety and Health Division shall ensure that team members have the proper equipment to conduct a thorough investigation. 4. The team shall conduct investigations on all accidents/incidents that meet the following criteria: A. Accidents resulting in injuries. (District employees, visitors, contractors, etc.) B. Property damage of more than $5,000.00. C. Issues reported to any regulatory agency. D. As requested by executive management. E. As requested by of legal counsel. F. To supplement investigations lacking in proper information and/or details. G. As requested by the Safety and Health Supervisor for training purposes. 13 of 15 Book Page BB Hard Copy Is Uncontrolled Accident Investigation and Reporting SAFETY-POL-202 5. The team shall be made up of a cross section of District employees as determined by the Safety and Health Supervisor. 6. Safety and Health Investigation Team may request meetings with all involved parties and witnesses in order to collect factual data of the accident. A. As a result, Safety and Health Investigation Team may determine corrective action as a measure to prevent future accidents. B. Managers/supervisors are responsible for implementation of corrective actions recommended by the Safety and Health Investigation Team. C. Safety and Health Investigation Team may recommend disciplinary action of involved parties but shall not determine the type or magnitude of the action. This shall remain the responsibility of the employee's manager/supervisor. 7. Each bargaining unit shall be represented on the team. 3.5 Employee Training 1 . The Safety and Health Division shall be responsible for developing and implementing an Accident Investigation Process Training Program. 2. All managers and supervisors shall attend the Accident Investigation Process Training Program. A. Non-management personnel may attend Accident Investigation Process Training Program training with their supervisor's permission. 3. Training shall be conducted as an initial course and as required. 3.6 Program Administration Rev. 2 Date: March 22, 2006 1. The Safety and Health Division shall be responsible for 14 of 15 Book Page 89 Hard Copy Is Uncontrolled Accident Investigation and Reporting SA FETY-POL-202 reviewing the Accident Investigation and Reporting Program every two years. 4. References 8 California Code of Regulations, §3203. Injury and Illness Prevention Program 8 California Code of Regulations, §330, Definitions 8 California Code of Regulations, Chapter 7, Subchapter 1 . Occupational Injury or Illness Reports and Records 8 California Code of Regulations Chapter 3.2. , Subchapter 2, Article 3. Reporting Work-Connected Injuries, §342. Reporting Work-Connected Fatalities and Serious Injuries. California Vehicle Code, Division 1, Section 670 SAFETY-POL-101 Injury and Illness Prevention Program SAFETY-POL-108 Contractor Safety Program SAFETY-SOP-202.1 , Accident Investigation-Personnel and Property s In '/ilhioh District Personnel /\.re Injured. SAFETY-SOP-202.2, Investigating Contractor Accidents \/ehiolo /\.ooidents S/\.FET¥ SOP 202.3 ln11estigating Contractor ,'\ooidonts SAFETY SOP 2-02.4 , Safety Health ln1.iestigation Team 5. Attach men ts None Rev.2 Date: March 22, 2006 15 of 15 Book Page 90 Hard Copy Is Uncontrolled Workers' Compensation Benefits Program SAFETY-POL-402 Contents 1. Purpose ................................................................................................. 3 2. Definitions ............................................................................................ 3 3. General-Workers' Compensation ....................................................... 3 4. Requirements ....................................................................................... 5 4.1 Safety and Health Division ....................................................................... 5 4.2 Purchasing Division .................................................................................. 5 4.3 Human Resources Department ................................................................ 5 4.4 Employee Development Division .............................................................. 5 4.5 Employees ................................................................................................ 6 4.6 Supervisors and Managers ...................................................................... 7 5. Program Administration and Evaluation ........................................... 8 6. References ............................................................................................ 8 7. Attachments .......................................................................................... 8 2 of 8 Book Page 92 Workers' Compensation Benefits Program SAFETY-POL-402 2. Medical evaluation of WC claims shall be performed by a Medical Network (MN) that will be established by the TPA (January 2005). The MN shall be established and function under the requirements of the California Labor Code, Section 4616. Patient (employee) rights shall comply with the requirements under California Labor Code, Section 4616.3 3. The District may authorize Sick-Industrial (SI) leave for medical treatment directly related to an industrial injury/illness when the TPA has accepted the claim for benefits and authorized the treatment appointments. 4. Sick industrial leave may be authorized when the TPA has delayed or denied a claim and the TPA has scheduled the injured/ill employee for a medical appointment. 5. Sick industrial leave time periods in general will be utilized for medical treatment procured using a pre-designated physician, a referral from that pre-designated physician or from a physician in the District's medical network. All other physician visits shall utilize regular sick time. 6. Sick industrial leave time periods will be determined on a case by case basis and must meet the procedures defined below. 7. The leave is available to be used until the case is closed, awarded or settled. 8. Sick industrial leave shall not be authorized for any employee who has: • Received a Findings and Award from the Workers' Compensation Review Board; • Engaged in a Stipulated Settlement; • A claim which has been deemed closed by the TPA; or, A Settlement which includes future medical expenses. 4 of 8 Book Page 94 Workers' Compensation Benefits Program SAFETY-POL-402 4. Requirements 4.1 Safety and Health Division 1. Manage the District's Workers' Compensation Program. 2. Develop a written WCP program/procedure document. 3. Review and approve all timecards with SI coding. a. Submit timecards to the Finance -Payroll division by the close of business on Friday. 4. Act as the District's liaison with the TPA. 5. Conduct at least an annual review of the District's WCP. 6. Recommend action to the Director of Human Resources regarding WC settlements issued by the TPA. 7. Provide training, as appropriate, to staff related to the District's Workers' Compensation policy/program. 4.2 Purchasing Division 1 . Act as the District liaison for all contract related issues with the TPA. 4.3 Human Resources Department 1. Upon hire, notify employees of their right to designate a physician for treatment related to an injury/illness under Workers' Compensation. 2. Meet with appropriate employee groups to discuss issues related to Workers' Compensation provisions 4.4 Employee Development Division 1. Provide traiAing., as appropriate, to staff: related to the o,striot's VVorkei:s1 Compensation policy/prQgram. 2. Maintain employee training records for at least the duration of the individual's employment with the District 5 of 8 Book Page 95 Workers' Compensation Benefits Program SAFETY-POL-402 4.5 Employees 1. Immediately report any work related injury/illness to your supervisor. 2. Complete the Workers' Compensation Claim Form and submit it to the Safety and Health Division no later than one business day following a reported WC incident. A. Employees are not required to return to work the next business day in the event of a medical emergency or if they are incapacitated. 3. During the initial visit with the treating physician, inform him/her of the District's Early Return to Work (ERTW) (SAFETY-POL-404) program. Request that the physician take this into account when determining the treatment process and to contact the District's Safety and Health Division for assistance. 4. Employees must request the time off in advance of all non- emergency medical appointments. A. Requests must provide the information about the appointment including: schedule date and time and treatment type, (i.e., doctor visit, physical therapy, etc.). 5. Employees shall submit medical certification of the appointment satisfactory to the Safety and Health Division which includes : A. The date of injury; B. Physician's name, signature, and telephone number; C. Time in and time out for each appointment documented on the appropriate form. 6. Appointments are to be scheduled at the beginning or end of the employee's work shift whenever possible. 7. Appointments may be scheduled by the employee, the Safety and Health Division or the TPA. 8. Employees shall report to work and work a minimum of five hours on the day of the appointment. 9. A maximum of two and one half hours of SI leave including transportation time and treatment time shall be authorized 6 of 8 Book Page 96 Workers' Compensation Benefits Program SAFETY-POL-402 5. Program Administration and Evaluation 6. References 1. The District's WCP shall be managed and administered by the Safety and Health Division. 2. The Safety and Health Division shall at least annually evaluate the District's WCP to ensure that it is in compliance with state and federal laws and regulations. California Senate Bill 899 and all referenced California Labor Code Sections SAFETY-POL-404, Early Return to Work Program SAFETY-SOP-402 Workers' Compensation Program Workers' Compensation Claim Form 7. Attachments None Book Page 98 8 of 8 Safety and Health Training Program SAFETY-POL-405 Contents 1 . Purpose ................................................................................................. 3 2. Definitions ............................................................................................ 3 3. General-Early Return to Work ............................................................. 4 4. Responsibilities .................................................................................... 4 4.1 Supervision/Management. ........................ Error! Bookmark not defined. 4.2 Safety and Health Division ....................... Error! Bookmark not defined. 4.3 Employees ............................................... Error! Bookmark not defined. 4.4 Employee Development Division .............................................................. 5 4.5 Human Resources Department.. .............. Error! Bookmark not defined. 5. Permanent Restrictions ....................................................................... 6 6. Program Administration and Evaluation ........................................... 6 7. References ............................................................................................ 7 8. Attachments ......................................................................................... 7 2 of 7 Book Page 100 Number: SAFETY-POL-405 ~ Orange County Sanitation District Revision Number: 0 Safety and Health Training Program Date: March 22, 2006 1. Purpose 2. Definitions Employee Manager Supervisor Approved by: Lisa L. Tomko The purpose of this policy is to establish administrative and technical guidelines for providing employee training related to occupational/environmental safety and health disciplines. Effective implementation of this policy will ensure all affected employees will receive safety and health training that meets regulatory requirements and supports the organization's endeavor to promote best management practices. An employee as is defined in Division 4 of the California Labor Code, or the employee's designated representative. An employee who : • Manages, plans, supervises and coordinates the operations and activities of one or more major OCSD divisions and works under general direction or administrative direction of a Department Director of the General Manager, exercising discretion in applying general goals and policy statements and in resolving organizational and service delivery problems and; • Organizes and directs the work of subordinate staff, and; • Assumes significant responsibility for a variety of personnel activities in such areas as selection, training and disciplinary actions and; • Assumes significant responsibility for the An employee who: preparation and administration of the assigned budget(s) 3 of 7 Book Page 101 Safety and Health Training Program SAFETY-POL-405 • Supervises, assigns and reviews the work of subordinates in assigned sections or work units and; • Works under direction or general direction of higher level supervisory or management staff, exercising discretion in selecting appropriate resources to use in accomplishing assigned work and; • Assumes responsibility for recommending a variety of personnel actions in such areas as performance evaluation, training, selection and disciplinary measures and; • Ensures that appropriate policies and procedures are followed by subordinates and; • Monitors, coordinates and assists in developing the budget for assigned area 3. General Background In the first quarter of 2005, the Human Resources Director commissioned a consultant to conduct a study of the Human Resources Department's organizational structure. As a result of that study's recommendations and a desire to increase the effectiveness of the Department's service to the organization, it was decided to return primary responsibility for safety and health related training back to the Safety and Health Division (530). This directive became effective in April 2005. This policy will define the roles and responsibilities for applicable organizational members in order to effectively provide this service to all applicable District employees 4. Responsibilities 4.1 Safety and Health Division The Safety and Health Division (S&H) shall be responsible for the following: 1 . Developing S&H training profiles and curricula for courses taught by District staff. 2. Establishing a S&H training course catalogue (with course descriptions), S&H training profiles for each District job 4 of 7 Book Page 102 Safety and Health Training Program SAFETY-POL-405 classification and an annual course calendar. 3. Coordinating and scheduling all S&H training courses taught by District staff and contractors (including approval of contractor-provided training curricula). 4. Instructing specified S&H courses as determined by the S&H Division. 5. Acting as the District's liaison for contractors providing S&H training. 6. Controlling budget expenditures for all resources (i.e., supplies, training aids, contractor services, etc.) required for S&H training. 7. Coordinating applicable recordkeeping, including maintaining training records for at least the duration of an employee's employment with the District, and compiling/evaluating performance metric data. 8. Providing periodic performance management updates to Executive Management staff and the Board. 4.2 Contracting, Purchasing and Materials Management Division 1 . Acting as the District liaison for all contract related issues related to contractors providing S&H training services. 4.3 Employee Development Division 4.4 Employees 1. Maintaining the District's Training Records Management System database. 2. Coordinating management of the S&H training budget with the S&H Division 1. Attending S&H training classes at their original date, time and location. 2. Informing their respective supervisor, within one business day, when the employee is aware of a known scheduling conflict. 5 of 7 Book Page 103 Safety and Health Training Program SAFETY-POL-405 4.5 Supervisors and Managers 1. Scheduling applicable staff using the District's Training Records Management System database. 2. Notifying the S&H Division, no later than 30 minutes prior to the scheduled start of S&H training class, of an employee who will be absent. 5. Permanent Restrictions If after the ninety-day (90) Early Return to Work accommodation, the employee is unable to return to full/unrestricted duty, the supervisor will work with the Safety and Health Division, the employee and the medical authority to determine if a time extension if appropriate. If approved, a written confirmation detailing the length of the time extension, and any job assignment modifications, will be issued by the Safety and Health Division to the employee and supervisor within five (5) business days. If the time extension is not granted, the employee will be advised of his/her right to apply for a permanent accommodation under the provisions of the American with Disabilities Act. The Safety and Health Division will provide assistance to the employee during this process. During the transition period, the employee will continue to work under conditions of the existing modified work assignment unless the medical authority does not approve. At which time, a revised modified assignment will be completed in a manner consistent with the original. 6. Program Administration and Evaluation The Safety and Health Division shall at least annually review and revise, as necessary, the following elements related to S&H Training: 1. Training catalogue 2. Performance management metrics 3. Contract training services 6 of 7 Book Page 104 Safety and Health Training Program SAFETY-POL-405 4. Annual training calendar 7. References SAFETY-POL-101, Injury and Illness Prevention Program Safety and Health Training Catalog Safety and Health Training Profiles 8. Attachments None Book Page 105 7 of 7 FAHR COMMITTEE Meeting Date To Bd. of Dir. 03/01/06 AGENDA REPORT Item Number Item Number FAHR06-13 Orange County Sanitation District FROM: Lorenzo Tyner, Director of Financeffreasurer SUBJECT: DRAFT INDEPENDENT RATE STUDY GENERAL MANAGER'S RECOMMENDATION Informational item. SUMMARY At a February 2006 Finance, Administration and Human Resources (FAHR) Committee Meeting, staff presented introductory information regarding the District's Rate model. The information was provided in anticipation of the draft findings of independent consultant Bartle Wells Associates, engaged by the District. The draft report has been distributed to all Board members and has been made available to the public for review. The major elements of the review included: 1) Review the fees and charges levied by OCSD and make recommendations regarding the fees and charges based on applicable legal and regulatory standards. 2) Review the appropriate allocation of costs for operating, maintaining refurbishing, and replacing facilities to serve existing users and the costs of expanding facilities to serve future users. 3) Review that the allocation and amount of costs of providing service is adequately based on appropriate costs of service principals and applicable legal standards. 4) Review that the allocation of costs, including non-assignable costs, between flow, bio-chemical demand (BOD), and suspended solids (SS) is appropriate. 1) Review that the costs of providing full secondary treatment and the groundwater replenishment system are appropriate and allocated equitably. The following is an excerpt of the Bartle Wells study summarizing their findings: H:ldept\agenda\FAH R\FAH R2006\0306\06.06· 1 3. RateStudy .doc Revised: 01/04/06 Book Page 106 Page 1 "Findings and Recommendations Alternative Rate Structures As discussed previously, and based on our review, we find that the District's current system of rates and charges is well within the standards of public wastewater agency practice. We do not believe that any major changes are warranted. Therefore, we would not recommend any major changes to the rate structure because of the disruptions these changes could cause to various user classes. However, the District may wish to consider the following two alternatives for addressing the property tax credit issue: Continue current rates: The District could continue with its current rate structure. This includes higher Permit User unit charges combined with property tax credits. Other user classes do not receive an actual property tax credit, but pay lower unit charges. Eliminate property tax credits: The District could eliminate the current system for Permit Users and establish uniform unit charges that are net of property tax revenues. The same unit charges would then apply to all users. Permit Users would no longer receive a credit for property taxes. Other Recommendations • The District may want to re-examine the CIP allocation of full secondary treatment to see if some portion of these costs might equitably be allocated to flow. • The District needs to update its CFCC with each update in the CIP. Ideally, these would be at the same rate of change and would automatically apply. An alternative method would be to establish an annual adjustment to the CFCC that is based on the change in the ENR Construction Cost Index for Los Angeles. In addition, the projection of future growth has been lowered. The District should factor the lower growth projection into determination of the CFCC. If implemented, these recommendations would have no impact on service charge unit rates. • If the CFCC is reviewed or updated, the District should consider a supplemental 'buy-in' component of the capacity fee as at present the capacity fees only ask new customers to buy into new facilities required to serve them. They are however served by existing facilities for which they not have contributed. The Di$trict is not required to charge new connections the maximum cost of providing capacity but they are permitted to do so by law. If the charge is reviewed, the District may want to examine the allocation of costs between residential and commercial that derives a lower fee for commercial users. The District could derive an average cost of capacity that would be used to calculate fees for all customer classes in the same way. Non-residential customers appear to receive a break under the current methodology. • We suggest that the current SCFCC be confirmed by Carollo Engineers during their upcoming rate and charge review. We would also recommend that industries should have the option of purchasing needed capacity in excess of the 25,000 gpd currently permitted by the District's grandfather clause. If additional capacity is purchased, H:ldept\agenda\FAH RIFAH R2006\0306\06.06-13. Rate Study.doc Revised: 01/04/06 Book Page 107 Page2 then the user would not be subject to an additional SCFCC charge. This option may be preferable for some industries wishing to fund more capacity on a one-time basis rather than pay a supplemental annual fee. • Debt service allocation is annually adjusted by the weighted average of the CIP allocation. This can cause abrupt changes in allocations for this cost category. The District could adopt a capital allocation for a five or ten-year period to eliminate abrupt shifts. More importantly, this method does not accurately reflect the proper allocation of debt actually used." Next Steps There will be a minimum 60 day review period where public comment will be accepted. These comments, and those of staff, will be forwarded to Bartle Wells for incorporation into their final report. The final report is due to the Board May 1, 2006 and will be discussed at the May 24, 2006 Board meeting. PRIOR COMMITTEE/BOARD ACTIONS None. PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. IZ! Not applicable (information item) ADDITIONAL INFORMATION None. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1 . Orange County Sanitation District Review of Rates and Charges -Draft Report H:\deptlagenda\FAH R\FAH R2006\0306\06.06-13. RateStudy.doc Revised: 01/04/06 Book Page 108 Page 3 ORANGE COUNTY SANITATION DISTRICT REVIEW OF RATES AND CHARGES DRAFT REPORT February 2006 BARTLE WELLS ASASOCIATES Independent Public Finance Advisors 1889 Alcatraz Avenue Berkeley CA 94703 Tel. 510-653-3399 Book Page 109 ,._ •'• TABLE OF CONTENTS lntrod uction ........................................................................................................................ 1 Scope ........................................................................................................................ l Bartle Wells Associates ........................................................................................... 2 Approach .................................................................................................................. 2 Current Rate and Charge System .................................................................................... 3 General ..................................................................................................................... 3 Service Charges ....................................................................................................... 3 Capital Facilities Capacity Charges (CFC.Cs) and SCFCCs ................................... .4 Cost Allocation ........................................................................................................ 6 Property Tax Revenues ............................................................................................ 6 Findings and Recommendations ....................................................................................... 8 Alternative Rate Structures ...................................................................................... 8 Other Reco1nmendations .......................................................................................... 8 Appendix A-Validated Capital Improvement Program Appendix B-Permit U er Rates: QC D Staff Report Appendix C -Ordinance O I (partial) and Ordinance 26 Appendix D -Bartle Wells Associates Scope and Resumes Appendix E -Settlement Agreement Book Page 11 O INTRODUCTION Bartle Wells Associates has been retained by Orange County Sanitation District (District or OCSD) to prepare an independent review of the District's rates and charges and to make recommendations for adjustments, if any, as appropriate. Our review is iniended to satisfy the requirements of a Settlement Agreement between the District and a major wastewater user regarding changes to the method of setting and collecting revenues for users. Scope The settlement agreement outlines the scope of the review required: • Review the fees and charges levied by OCSD and make recommendations regarding the fees and charges based on applicable legal and regulatory standards. • Review the appropriate allocation of costs for operating, maintaining, refurbishing, and replacing facilities to serve existing users and the costs of expanding facilities to serve future users. • Review that the allocation and amount of costs of providing service is adequately based on appropriate cost of service principals and applicable legal standards. • Review that the allocation of costs, including non-assignable costs, between flow, biochemical demand (BOD), and suspended solids (SS) is appropriate. • Review that the costs of providing full secondary treatment and the groundwater replenishment system are appropriate and allocated equitably. This report is not intended as a rate study, but rather as a review of the appropriateness and equity of the current rate structure. We are also not reviewing the level of operating budgets or the costs of the capital improvement program. The determination of these costs is by District staff and consultants and is approved by the District's Board of Directors. Bartle Wells Associates' scope of work is included in our proposal in Appendix D. Our review is based on documents and records supplied by the District. Our review does not include any further research to determine the accuracy of the material supplied to us. For reference purposes we have included a number of documents, including sections of Ordinance 01 and all of 26, as Appendix C to this report. Book Page 111 Bartle Wells Associates Bartle Wells Associates is an independent public finance advisor formed in 1964 expressly to provide independent advice to public agencies without conflict of interest of any kind. The firm is owned and managed by its principal consultants and has advised over 450 public agency clients in the western United States and completed over 2,000 financing assignments. Bartle Wells Associates specializes in three professional services -utility rate studies, financing plans, and bond marketing. Rate studies are designed to maintain the financial health of a utility enterprise and provide equity to all customers. BWA has completed hundreds of utility rate studies. The firm is very familiar with the requirements that Proposition 218 and the State Water Resources Control Board's Revenue Program Guidelines place on service charges. The firm is also very familiar with the requirements that Government Code 66000 ff place on the determination of impact fees for new growth. Thomas Gaftney, a principal of the firm, is managing this project. Tom is a registered California civil engineer and a nationally Certified Independent Public Finance Advisor. Sophia Skoda., PE, senior consultant and Bryan Antman, senior financial analyst are assisting Tom on this project. Both Sophia and Bryan are also nationally Certified Public Finance Advisors. Resumes are enclosed in Appendix D. Approach We have used the following approach to satisfy the requirements of the Settlement Agreement: • Review the allocation of capital improvement costs between current users and future users. This allocation is used to determine the revenues needed from each class to support capital projects. • Review the allocation of operation and maintenance costs among the parameters of flow, BOD, and SS. Determine the impact to service charges for high, low, and domestic strength users. • Examine property tax collections in relation to service charges. Determine if a property tax credit system is equitable and should continue for Permit Users. Relate the District's property tax credit plan to mainstream public agency practice. • Make recommendations as appropriate to establish or preserve equity and provide sufficient funding for wastewater services. 2 Book Page 112 CURRENT RATE AND CHARGE SYSTEM General The vast majority of wastewater agencies collect revenues from several sources. A service charge proportional to flow and strength is collected from all users. Revenues from the charge are used to pay for operation and maintenance, replacements, and capital improvements to serve existing users. Capacity charges are a one-time charge levied as a new user connects to the wastewater system. These charges should represent the cost of facilities required to serve the new user, and revenues from the charge may only be used to pay such costs. Capacity charge revenues may directly fund project design and construction, may pay a share of annual debt service, and/or may reimburse a previous capital expense funded by current users. Many wastewater agencies receive a share of the one-percent property tax levied by the county. Revenues from property taxes are generally not restricted to any certain use. Most agencies use all or some of property tax revenues as a credit against expenses and then determine the level of service charge to fund the balance of expenses. Other revenues include permits and fees such as plan checking, interest earnings on general reserves. and funds from rents and use of property. Usually, all such revenues are credited against operating expenses and then the net revenue requirement is used to determine the level ofrequired service charge. Service Charges The District's service charges are fundamentally based on a detennination of the revenue requirement to fund District activities on behalf of existing users. The current rate structure identifies five component costs that must be funded each year from revenues generated from existing users: • Operations and maintenance of the collection system • Operations and maintenance of the treatment plants • Capital Improvement Program (CIP) for the collection system (replacement and upgrade projects only) • CIP for the treatment plants (replacement and upgrade projects only) • Debt service on Certificates of Participation (COPs) (replacement and upgrade projects only) Adjustments are made to the collection system and treatment plant CIP line items to deduct projects allocable to new growth; these costs are recovered through the District's Capital Facilities Capacity Charges (CFCC) charged to new connections. The CIP line items are also adjusted downward to exclude debt-financed projects, which are accounted for separately under the debt service expense, to avoid double counting. 3 Book Page 113 Gross costs of the District's activities are offset by non-service charge related revenues. These revenues include interest income ($21 million in FY 2004/05) and other revenues. Most notably, revenues used to offset cost of service include contributions from reserves ($185 million) and property taxes collected from customers ($28 million; fiscal year 2004/05's property tax revenues were adversely affected by temporary state-mandated ERAF transfers). Each of the five component costs of wastewater service is allocated among the three components of wastewater: flow, biological oxygen demand (BOD). and suspended solids (SS). This allocation is made based on a detailed review of how each wastewater component contributes to the O&M or capital cost of District activities. Consistent with standard industry practice, non-assignable costs that cannot be directly assigned to flow, BOD, or SS (such as administrative costs) are allocated on a weighted average basis among the three cost centers. The resultant allocations generate unit rates per unit of flow, BOD. and SS. which can then be used to calculate user rates. Table 1 below shows total system loadings used in unit cost derivations for fiscal year 2004/05. Single family dwelling system loadings are also shown. Table 1 • OCSD 2004/05 System Loadings Flow BOD ss Total System 91,250 173,514 177,014 MG lbs lbs Average Residence 253 206 219 gpd mg/I mg/I Unit rates per unit of flow, BOD, and SS are applied to standard flow and loading factors developed for most customers. The District maintains a I isting of standard flow and loading factors for various categories of customer, including single-and multi.family residences and commercial customers, creating a single flat wastewater service charge for each customer category. For users with unusually high flows and/or strength of wastewater, known as "Permit Users". service charges are calculated individually based on measured wastewater flows and strengths. There are approximately 425 Permit Users but only about 335 receive the property tax credit. Large industrial flow does not vary much from month to month therefore as steady users of the plant, this group should receive some financial benefit in terms of treatment costs. Note that some permit users have expressed that they believe flows from their group are relatively steady and that therefore capital facilities could be sized closer to average flows rather than total flows thereby reducing capital cost portion of rates. BW A reviewed 4 Book Page 114 2004/05 permit user flow data. We found a great variation in flow from month to month for many large users. Variability of 40% in flow volumes was common. This variation is greater than or about the same as that for residential and small commercial users. In addition, capital fucilities costs are not proportional to flow, and such differences are difficult to quantify. In short, we are not able to develop any meaningful relationship between fluctuations in uses among the various user classes. Table 2 shows total system costs, loadings, and subsequent unit cost derivations for fiscal year 2004/05. 5 Book Page 115 ·•:.·--.-.. ,·.·.•. : ;,•.· . ··•:-:-:•·•:•:-:~·-·. .4 •-· Table 2 • OCSD Calculation of FY 2004-05 Charges A.. § 1< _Q g E Q ti Ref Descrletion CollO&M CoUCIP JointO&M JointCIP COPs Egutty:Adj SFI Total 1 Budget Requirements: $22,605,790 $62,058,000 $86,614,140 $169,165,600 $41,917,000 $2,638,000 $1,876,000 $386,874,530 2 Remove interfund budgets 12,638,000) (1,876,000) (4,514,000) 3 Remove Fluctuating CIP With Capacity (62,058,000) I 169,165,600) (2.31,223.600) 4 Add Avg "Cash-funded" CIP W/o Capactty 9,877,061 32,550,843 42.427.904 5 Requirements for Rate Setting 22,605,790 9,877,061 86,614,140 32,550,843 41,917,000 0 0 193,564,834 6 Reduce for Interest Income (4,677,628) < 12,750,874 ! p, 159,498) !20.588.000) 7 Net Requirements for Smooth Rate Setting 22.605.790 5,199.433 86.614. 140 19,799,969 38,757,502 0 0 172.976.834 llJ No Capacity NoCap.actty No Copaci(y 0 B Allocation Parameters: 04-05 Budget Validated CIP 03-04 Actual Vafil!aled CIP ComboVCIP 0 9 Flow 50% 90% 12% 35% 50% ~ ~ 10 BOD 10% 34% 33% 27% 11 ss 50¾ 541111/0 32% 23% \Q Resuttant l'D -a. Weighted -a. 12 Anocation to Parameters: CollO&M CollCIP Joint O&M Joint CIP COPS Total Average% 0) 13 Flow 11,296,561 4,679,490 10,393,697 6,929,989 19,378,751 52,678,488 30% 14 BOD 0 519,943 29,448,808 6,533,990 10,464,526 46,967,266 27% 15 ss 11,309,229 0 46,771,636 6,335,990 8,914,225 73,331.080 42% 16 22,605,790 5,199.433 86.614, 140 19,799,969 38.757,502 172,976,834 100% District Loadings: Flow, million gallons 91,250 91,250 91,250 91,250 91,250 BOD, 1000 lbs 173,514 173,514 173,514 173,514 173.514 SS, 1000 lbs 177,014 177,014 177,014 177,014 177,014 17 Parameter Rates: Coll O&M CollCIP Joint O&M Joint CIP COPs Proposed Rates Would Raise 18 Flow$perMG $123.80 $51.28 $113.90 $75.95 $212,37 0,000002 0.15 $577.30 $52,678,488 19 BOD S per 1000 lb $0,00 $3,00 $169,72 $37,66 $60.31 D.000001 $270.68 $46,967,266 20 SS S per 1000 lb $63.89 $0.00 $264,23 $35.79 $50.36 0,000001 S414.27 $73,331,080 21 $172,976,834 6 Currently adopted permit user charges for 2003/04 through 2007/08 are shown in Table 3 below. Table 3 • ocso Adopted Charges for Permit Users 2003/04 2004/05 2005/06 2006/07 2007/08 Flow $316.38 $577,30 $637.55 $711.27 $773.32 BOD 216.13 270.68 288.50 311 .21 330,53 ss 207.35 414.27 432.14 454.19 473.50 Capital Facilities Capacity Charges (CFCCs) and Supplemental Facilities Capital Charges (SCFCCs) The District imposes a Capital Facilities Capacity Charge (CFCC) on new development (including expanded use of existing users) connecting to the wastewater system in order to recover capital costs associated with providing capacity for new users. The CFCC is a one-time charge imposed on new development or expansion of existing users that places an additional demand for capacity on the District's wastewater system. The CFCC is calculated similarly to the service charge described above, with capital costs of capacity allocated among flow, BOD, and SS cost components in order to develop unit rates. The base CFCC is set to equal the capital costs required to support the flows and loadings typical of an average 3-bedroom single-family residence. Other residential CFCCs are based on a multiple of this base charge, by number of bedrooms. Commercial and industrial development CFCCs are developed in units ofCFCC per 1,000 square feet, with three categories representing low, average, and high demand wastewater users. Table 4 shows the derivation of the current CFCC charges. 7 Book Page 117 ;, Table 4 • OCSO Calculation of CFCC Commercial Residential / Industrial Additional Capacity Projects $548.416,000 $287,584,000 Adjust Wet Weather Flow Facilities 35,184,000 (35,184 ,000) Additional Capacity Adjusted for WW 583,600,000 252,400,000 New EDUs in 2020 202,000 106,000 CFCC per EDU 2,890 ~ New Non-Res 1000 sq ft in OCSD 126,000 New Non-Res 1000 sq ft o/s OCSD 115,000 Total New Non-Res 1000 sq ft 241,000 CFCC per 1000 sq ft 1Q§£ Use Catego!):'. SFR Factor Res Rates Non Res Rates Commercial/ Industrial Low Demand $170 Average Demand 1,050 High Demand 2.490 Single Family Residential 5+ Bedrooms 1.39 $4,020 4 Bedrooms 1.19 3,440 3 Bedrooms 1.00 2,890 2 Bedrooms 0.81 2,340 1 Bedrooms 0.62 1,790 Multi-Family Residential 4+ Bedrooms 1.08 3,120 3 Bedrooms 0.89 2,570 2 Bedrooms 0.70 2,020 1 Bedrooms 0.50 1,450 Studio 0.32 920 Appendix A contains tables showing the allocation of projects between existing customers and new growth, as well as between the cost components of flow, BOD, and SS. Table A-I allocates the total cost of projects from the District's Validated CJP between four categories: • Replacement/rehabilitation • Improvements/upgrades • Additional capacity 8 Book Page 118 • Support The portion of project costs allocated to additional capacity is collected through CFCCs, while the other three components are collected through service charges, as described above. Table A-2 shows the allocation of project costs between flow. BOD, and SS, as well as showing allocation between existing users and additional capacity. This allocation of costs between the three components of wastewater allows the project costs to be distributed to ihe respective unit costs. Bartle Wells Associates has reviewed allocation of project costs and found them to be reasonable. As an example, project 1-17 Santa Ana Trunk Sewer Rehabilitation, intended to rehabilitate the existing Santa Ana trunk sewer, is al located I 00% to existing customers, while the related project 2-51 Santa Ana River Relief Sewer, intended to expand capacity, is allocated 100% to additional capacity. The CIP includes allocation of full secondary treatment and ground water replenishment costs. These two projects account for about $735 million of the CIP. Based on the Validated CIP in Appendix A, secondary treatment costs are allocated 48.3% to current users and the remainder to future users. Current users' share of costs are allocated 93% to BOD and 7% to SS. The logic for this allocation is based on the function of secondary treatment which is essentially for the removal of BOD. However, many California sanitation agencies recognize that facility sizing is often a function of flow and therefore allocate some percentage of costs to flow. Groundwater replenishment costs are allocated 36% to existing users and 64% to future users. The share allocated to current users reflects that the project will postpone the need to construct an additional ocean outfall that would otherwise bee needed for effluent disposal. One half of groundwater replenishment costs are paid for by the water district. The District also imposes a Supplemental Capital Facilities Capacity Charge (SCFCC) on Permit Users based on the expected flows and loadings in excess of the base loadings allowed for commercial/industrial CFCCs (25,000 gpd). The supplemental charge is equal to the unit cost of flow, BOD, and SS capacity, plus cost of funds. The concept of a supplemental capital charge for capacity use above the base level capacity is equitable. The theory is that a customer is using capacity beyond the level funded in the amount charged as a CFCC. If not collected as an initial capacity charge, then some other users must be funding the capital costs of the facilities being used. A supplemental charge should be collected to make up the difference. An SCFCC could be determined based on a reasonable lease of the excess fac.ilities used. To review the equity of the current SFCC we calculated the amount of the current SCFCC in comparison to the District's CFCC. For a single family dwelling the CCFC is about $2,800 and this provides an average capacity of 250 gpd, with strength of 232.6 ppm of BOD and 250 ppm ofSS. Based on the current SCFCC rates, this daily capacity would be charged about $180 per year. Another reasonable method of determining the 9 Book Page 119 SCFCC would be to capitalize the CFCC at some reasonable level. Often a capitalization rate of 8% to l 0% is used. For a CFCC of $2,800 this would indicate an annual SC FCC in the range of $220 to $280 per year. This indicates that current level ofSCFCC appears reasonable. Cost Allocation As discussed in the section on existing rates and fees, the District uses five categories in its cost allocation. Each category in turn has its costs allocated to Flow, BOD and SS. Allocations to the categories may vary year by year. O&M allocations for collection system and treatment and disposal vary based on actual expenditures in previous years while the CIP cost categories vary based on specific projects and their costs. The debt service allocation is calculated as a weighted average of the CIP allocations. The allocation for 2004/05 is shown in Table 5. The O&M treatment and disposal category includes the District's unassignable costs. Based on our research, we understand that when a person at the District works on a specific piece of equipment or part of the plant or collection system, their time is tracked and allocated to that piece of equipment or to the collection system. These items already have Flow, BOD, and SS allocations and therefore these costs can be allocated to these categories. Up to 2/3rds of non-capital costs however, such as administrative costs, cannot be so directly allocated and so are "unassignable". These costs are given the weighted average allocation of those O&M costs that are assignable. Based on our review of the District's rate model for the past several years, Flow, BOD, and SS cost allocations are based on actual historical allocations. Table 5 • OCSD 2004/05 Cost Allocation O&M CIP Collection Treatment and Collection Treatment and System Disposal System Disposal Debt Service Flow 50% 12% 90% 35% 50% BOD 34% 10% 33% 27% ss 50% 54% 32% 23% The District staff report of October 13, 2004 and included as Appendix B details the methodology for detennining the allocation of each cost category among Flow, BOD, and SS. BWA reviewed the allocations and the reasoning behind them and believe them to be within the acceptable range used in engineering practice. BW A also believes that the explanations of the allocations used are based on sound principles. 10 Book Page 120 Property Tax Revenues OCSD receives a portion of the County's I percent general property tax levy collected from properties located within the District's service area. The District's last rate study indicates that these property tax funds were subtracted from the District's total revenue requirements prior to derivation of unit costs of service. However, beginning in 1998/99, Permit Users' property tax payments were also deducted from their calculated service charge, even though total property tax revenues had already been deducted when determining unit rates used to calculate service charges, resulting in a double-counting of the Permit Users' property tax payment. Recent corrective action eliminates the property tax adjustment to unit costs so that Permit Users no longer receive excess credit for property tax payments. OCSD derived 2004/05 unit rates of$577.30/MG, $270.68/1,000 lbs BOD, and $414.27/1,000 lbs ofSS based on the cost of service, net of contributions from reserves, interest income, and other non-property tax revenues. The calculations assumed no off-setting contribution from property tax. Therefore, these unit rates reflect the cost of service to al I District customers as reflected in calculated charges for Permit Users. Consistent with District Ordinance O I, the District credits Pennit Users for tax payments reducing the net amount due on a given invoice. The invoice amount due, plus the tax payments made, equal the full cost of servic.e. Residential and commercial customers would continue to pay lower unit charges in lieu of individual property tax credits. These lower unit charges are determined by deducting property taxes from gross revenue requirements. The benefit of the District's new approach in using net cost of service unit rates is that Permit Users receive credit for only what they themselves have paid in taxes. However, this approach to property tax credits is not consistent across the District's user base. Because of the impact of Proposition I 3 on assessed values, there is wide variation in individual tax levies. At present, the District credits only Permit Users with their actual property tax paid while other District users receive an average property tax credit based on total tax revenues. An alternative approach would be to subtract all property tax revenues from total cost of service revenue requirements, before calculating unit costs of service. This would treat property tax revenues in the same way as interest and other income is treated at present, and would apply to all classes of users. This approach has the benefit of treating all customers uniformly by spreading the benefit of property taxes equally. It would also simplify Permit User billing practices by eliminating the property tax credit system. Perhaps most importantly, it would allow the District to easily demonstrate that the same unit costs apply to all classes of customers. 11 Book Page 121 :: •. :;, : However, based on our analysis, most of the large Pennit Users would benefit from this approach. At present, large Permit User property tax credit per unit of wastewater flow is less than the average residential property tax per unit of flow, as shown in Table 6. On average, the 334 Pennit Users who receive the property tax credit, pay $0.009 in property taxes per I 00 gal Ions of wastewater flow. An average single family residence pays $0.065 per 100 gallons of wastewater flow. Table 6 • OCSD 2003/04 Property Tax Contributions per Unit of Wastewater Flow Annual Wastewater Property Tax Property Tax Flow, gallons per 100 gallons Single Family Residence $60 92,345 $0.065 Kimberly-Clark 36,000 459,000,000 0.008 Allstyle Apparel 6,600 390,000,000 0.002 House Foods 3,400 84,000,000 0.004 334 Tax Credited Permit Users 495,502 5,528,849,900 0.009 FINDINGS AND RECOMMENDATIONS Alternative Rate Structures As discussed previously, and based on our review, we find that the District's current system ofrates and charges is well within the standards of public wastewater agency practice. We do not believe that any major changes are warranted. Therefore, we would not recommend any major changes to the rate structure because of the disruptions these changes could cause to various user classes. However, the District may wish to consider the following two alternatives for addressing the property tax credit issue: Continue current rates: The District could continue with its current rate structure. This includes higher Permit User unit charges combined with property tax credits. Other user classes do not receive an actual property tax credit, but pay lower unit charges. Eliminate property tax credits: The District could eliminate the current system for Permit Users and establish unifonn unit charges that are net of property tax revenues. The same unit charges would then apply to all users. Permit Users would no longer receive a credit for property taxes. Other Recommendations • The District may want to re-examine the CIP allocation of full secondary treatment to see if some portion of these costs might equitably be allocated to flow. 12 Book Page 122 • The District needs to update its CFCC with each update in the CIP. Ideally, these would be at the same rate of change and would automatically apply. An alternative method would be to establish an annual adjustment to the CFCC that is based on the change in the ENR Construction Cost Index for Los Angeles. In addition, the projection of future growth has been lowered. The District should factor the lower growth projection into determination of the CFCC. If implemented, these recommendations would have no impact on service charge unit rates. • If the CFCC is reviewed or updated, the District should consider a supplemental 'buy-in' component of the capacity fee as at present the capacity fees only ask new customers to buy into new facilities required to serve them. They are however served by existing facilities for which they not have contributed. The District is not required to charge new connections the maximum cost of providing capacity but they are permitted to do so by law. If the charge is reviewed, the District may want to examine the allocation of costs between residential and commercial that derives a lower fee for commercial users. The District could derive an average cost of capacity that would be used to calculate foes for all customer classes in the same way. Non-residential customers appear to receive a break under the current methodology. • We suggest that the current SCFCC be confirmed by Carollo Engineers during their upcoming rate and charge review. We would also recommend that industries should have the option of purchasing needed capacity in excess of the 25,000 gpd currently permitted by the District's grandfather clause. If additional capacity is purchased, then the user would not be subject to an additional SCFCC charge. This option may be preferable for some industries wishing to fund more capacity on a one-time basis rather than pay a supplemental annual fee. • Debt service allocation is annually adjusted by the weighted average of the CIP allocation. This can cause abrupt changes in allocations for this cost category. The District could adopt a capital allocation for a five or ten-year period to eliminate abrupt shifts. More importantly, this method does not accurately reflect the proper allocation of debt actually used. 13 Book Page 123 FAHR COMMI TTEE Meeting Date To Bel. of Dir. 03/01/06 AGENDA REPORT Item Number Item Number FAHR06-14 Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance/Treasurer SUBJECT: PARCEL REVIEW -TOP COMMERCIAL AND INDUSTRIAL USERS GENERAL MANAGER'S RECOMMENDATION Informational item. SUMMARY In June of 2004, the Board directed staff to review all non-residential parcels (46,000) to ensure proper charging. All parcels were reviewed and the results of that study were shared with the Finance, Administration and Human Resources (FAHR) Committee at its October 2005 meeting. Following the October 2005 staff report, committee members requested information on the top 15% of users impacted by any changes implemented as a result of the study. Attached are the 245 commercial and industrial users (top 15%) that were most impacted by the results of the study. The information provided includes the parcel number, the use type change and the dollar impact. The information is presented in two reports that are differentiated by the way they are sorted: one by total dollar impact, and one by city. Of the 245 changes, 135 are due to change in use from "Store" to "High Demand Center." Store to High Demand Center 135 Average Demand Center to High Demand Center 49 Low Demand Center to High Demand Center 28 Other 33 Total 245 PRIOR COMMITTEE/BOARD ACTIONS June 2004 and October 2005. H:ldeptlagenda\FAHRIFAHR2006\0306\06.06-14.Top Commercial Ind Users.doc Revised: 01/04/06 Book Page 124 Page 1 PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT B This item has been budgeted. (Line item: ) • ~ This item has been budgeted, but there are insufficient funds. This item has not been budgeted. Not applicable (information item) ADDITIONAL INFORMATION See attachments. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. June 9, 2004 FAHR Agenda Report 2. October 12, 2005 FAHR Agenda Report 3. Parcels with Changes in Square Footage, Use Codes, and Rates: a) Sorted by total dollar impact and; b) Sorted by city. H:\deptlagenda\FAHRIFAHR2006\0306\06.06-14.Top Commercial Ind Users.doc Revised: 01/04/06 Book Page 125 Page2 FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Mike Duvall, Director Blake P. Anderson, General Manager Gary G. Streed, Director of Finance Meeting Date To Bd. of Dir. 06/09/04 06/23/04 Item Number Item Number FAHR04-60 SUBJECT: PROPOSAL FOR CONTRACTUAL SERVICES TO REVIEW AND TO COLLECT SEWER SERVICE USER CHARGES ASSESSED NON-RESIDENTIAL PARCELS GENERAL MANAGER'S RECOMMENDATION That the FAHR Committee recommend the Board of Directors direct staff to proceed to evaluate non-residential parcels to determine if they have been undercharged for annual sewer service user fees and, if so, to collect the proper charges on the property tax bill on a going forward basis. SUMMARY In December 2003, the FAHR Committee reviewed a staff report and consultant's proposal and a verbal presentation from the consultant's representative. The Committee voted to move the proposal directly to the Board without a Committee recommendation. At the January 2004 Board meeting, the Directors again heard from the consultant's representative. After considerable discussion, the Board referred the proposal and alternatives to the FAHR Committee for a recommendation. At the March 2004 FAHR Committee meeting, the Committee asked Director Mike Duvall to accept the recommendation of the consultant to visit his business. Director Duvall did spend several hours at the site as he briefly reported at the last Committee meeting. Subsequent to that visit and the Committee meeting, Director Duvall also interviewed staff. Attached to this agenda report is Director Duvall's report and recommendation to the Committee. Also attached is a matrix that staff developed in an attempt to summarize the pros and cons of the three alternatives. PRIOR COMMITTEE/BOARD ACTIONS N/A Book Page 126 PROJECT/CONTRACT COST SUMMARY The original Revenue Enhancement Group proposal for this work was $2.5 million, plus 15% of any identified undercharges over $3.5 million. The proposal is for undercharges to be calculated for the current tax year and for the prior four tax yea rs, for a total of five years. An additional amount of $90 per parcel would be charged if the number of parcels reviewed exceeds 28,608, in addition to the 15%. The first $1 million would be due when the contract is signed. The work was originally proposed to be completed by August 1, 2004. Because the scope of the project is recommended to increase to include all non-residential parcels, the number of parcels has been established as 46,500. Staff has not received a revised proposal, but at the January 2004 Board meeting, the consultant's representative stated that the price was now $90 per parcel. This was verbally confirmed by the consultant at the March Committee meeting. Assuming the revised parcel count of 46,500, the total cost would be $4,185,000. No competitive proposals have been solicited from other potential consultants. However, staff has discussed a hypothetical project of this type with two other "direct assessment" firms. One firm said it would definitely submit a proposal if asked and the other said it would not, because of its work for property owners and the potential for a conflict of interest. A private citizen who seems to review these fees as a hobby has also suggested he would like to help us. Subsequent to an article in the Orange County Register, three additional consulting firms contacted the District and asked to be considered if an RFP was issued. The consultant has told the Directors, and claims in their proposal, that there are recoverable undercharges of at least $3.5 million. This would be the total of alleged undercharges for five years, not the annual undercharge or recovery. One of the other consultants that staff contacted estimated that statistically there could be as much as $1 million per year, but it had no real data. The other reported that it seldom came across undercharges while researching for refund clients. The cost for staff to complete the review of the non-residential parcels that have not already been reviewed, including site visits is estimated to be a maximum of 2,902 person days, or about 11 person years. To complete the work in nine months with staff and temporary employees would require an additional 13.5 employees for the nine months. Staff estimates the review could be completed in-house for under $750,000 or approximately $16 per parcel. BUDGET IMPACT IZ] This item has been budgeted. (Line item: 2004-05 Collection System O&M) 0 This item has been budgeted, but there are insufficient funds. 0 This item has not been budgeted. (See Additional Information below) 0 Not applicable (information item) H:ldeptlagenda\FAHRIFAHR2004\0604104-60.Non-resident User Fee.doc Revised: 06104/03 Book Page 127 Page 2 ADDITIONAL INFORMATION Please see attached memo from Director Duvall. ALTERNATIVES 1. Direct staff to conduct a formal RFP process, compare the results to the costs to complete the process in-house and return to FAHR with a recommendation. 2. Direct staff to improve the database in house over an extended time period using fewer temporary employees. 3. Direct staff to improve the database in-house over an extended time period using a combination of additional FTEs and temporary employees. Two additional FTEs would ensure that the database was reviewed and updated annually. 4. Direct staff to determine the feasibility of agreements with all or several firms that process refund requests to also process undercharge adjustments on a contingency basis. 5. Authorize the consultant's work but do not go back four years to collect past undercharges. CEQA FINDINGS N/A ATTACHMENTS 1. Memo from Director Mike Duvall 2. Matrix Comparing Alternatives GGS H:\dept\agenda\FAHR\FAHR2004\0604\04-60,Non-resident User Fee.doc Revised: 06/04/03 Book Page 128 Page 3 FAHR COMMITTEE Meeting Date To Bd. of Dir. 10/12/05 10/26/05 AGENDA REPORT Item Number Item Number OMTS05-86 Orange County Sanitation District FROM: Michael D. White, Controller Originator: Angela Brandt, Accounting Supervisor SUBJECT: RESULTS OF NON-RESIDENTIAL PARCEL REVIEW PROJECT GENERAL MANAGER'S RECOMMENDATION Approve the results of the non-residential parcel review project, direct staff to use the corrected database on a "going-forward" basis, and provide direction to staff on the collection of past charges. SUMMARY In June of 2004, the Committee and Board directed staff to (1) review all non-residential parcels as to property use and square footage to determine as to whether non- residential parcels were being billed correctly; and (2) to correct the non-residential parcel database for any errors uncovered in order to collect the proper charges on the property tax bill in the future. All non-residential properties totaling 46,232 were reviewed. Adjustments were made to 1,628 parcels for a total net increase in fees of $2,984,000 for fiscal year 2005-06. Square footage adjustments were made to 51 parcels, use code adjustments were made to 1,514 parcels, and both use code and square footage adjustments were made to 63 parcels. Also in June 2004, the Committee and Board decided that they would wait to receive the results of the in-house review before making a determination as to whether any errors resulting in under or overcharges would be billed or refunded for prior years. PRIOR COMMITTEE/BOARD ACTIONS In June 2004, the Committee and Board directed staff to improve the database in-house over an extended time period using temporary employees and to determine at a later date as to whether to bill or provide refunds for under/overcharged parcels. PROJECT/CONTRACT COST SUMMARY N/A Page 1 Book Page 129 BUDGET IMPACT D This item has been budgeted. D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. IZI Not applicable (information item) ADDITIONAL INFORMATION Results of the Review of All Non-Residential Parcels Revenue Section staff of the Accounting Division had specific reports generated from the database of all non-residential parcels in the Sanitation District's service area from contracted computer programmers. A total of 46,232 non-residential parcels were identified to be reviewed over the course of 10 months for accurate use code and square footage information. The project began on September 8, 2004, and was completed on May 5, 2005; two months ahead of schedule. The original estimated cost was $696,600 not including mileage reimbursement. The final cost of the project, including mileage reimbursement, was $495,175.28. All 46,232 non-residential properties were reviewed. Numerous properties were reviewed multiple times to ensure the accuracy of the information. The site inspector's notes and calculations were compared to the data currently in the Sanitation District's database, the data obtained from RealQuest, Switchboard, and aerial maps, before determining if an adjustment to the original data was warranted. Adjustments were made to 1,628 parcels, resulting in an increase in fees of $3,174,929 for 1,563 parcels and a decrease in fees of $190,589 for 65 parcels, for a total fiscal year 2005-06 net increase of $2,984,340. Square footage adjustments were made to 51 parcels. Use Code adjustments were made to 1,514 parcels, while both use code and square footage adjustments were made to 63 parcels. Of the total net fee increase of $2,984,340, a total of $58,321 has been rebated backed to the property owners based on claims submitted documenting actual water usage was less than the amount that would normally be expected to be discharged by the class of property in question. An additional 22 rebate claims have been submitted for refunds that are currently being reviewed. The amount of rebates is expected to increase significantly once the database of the revised 1,628 parcels is made available to firms specializing in utility cost recovery services. The need for a Laundromat and Nightclub use code was also identified during this project and was included in the adoption of Ordinance OCSD-26 for fiscal year 2005-06. Page 2 Book Page 130 Consideration of Prior Year CorrecJions Adjustments have been made on a going forward basis. The Board also has the option of pursuing refunds back four years as the State law requires the Sanitation District to make refunds back four years because the user fees are collected on the property tax bill. Following are obstacles or detriments to consider in enforcing collection of unbilled or under-billed parcels for up to four years ago: • Staff would have to determine who the property owner was for each year invoiced. • Staff would also have to verify what improvements existed on the property and the use code for those improvements for each prior year invoiced. • Prior years' charges that apply to prior owners would have to be directly invoiced. This would require locating the current mailing address for prior property owners. It would also require a procedure and a practice to collect amounts invoiced but unpaid. It is expected that this collection process would incur additional legal costs. • The decision to pursue undercharged parcels back for up to four years may cause hardship to our customers. The user did nothing to cause the undercharge. They paid what we billed . It was the Sanitation District's reliance on incorrect data that caused the error. • The potential exists for class action lawsuits and higher legal fees if the Sanitation District decides to bill for four years back. • The billing and collection of all past undercharges are subject to rebate if the property owner can substantiate that the property sewer use was less than the underlying basis used in calculating the sewer service user fee based on actual water consumption. Maintenance of the Non-Residential Parcel Database Staff is committed to maintaining the accuracy of the non-residential parcel database by reviewing with in-house resources 20 percent of all non-residential parcels to ensure the accuracy of site use and building square footage. Under this program, all non- residential parcels will be reviewed at least once every five years. The number of non-residential parcels for fiscal year 2005-06 is 46,695. Revenue Section staff will review 20 percent, or 9,339 of these parcels during the current year using the same procedures identified during the parcel review project. Page 3 Book Page 131 FUTURE ALTERNATIVES FOR CONSIDERATION Direct staff to analyze the 65 parcels overcharged in FY 2004-05 and provide rebates for each year of overcharges back for a period of four years; and 1. Direct staff to collect the additional fees on the 1,563 parcels undercharged in FY 2004-05 for a specific number of years up to four; or 2. Direct staff to solicit water consumption data on the 1 ,563 parcels undercharged in FY 2004-05, and to collect past undercharges based on the correct user charge fee or fee as calculated by water consumption, which ever is less, for a specific number of past years up to four; or 3. Direct staff to focus solely on maintaining the accuracy of the database and to collect the adjusted fees only on a "going-forward" basis. ATTACHMENTS 1. Staff Report to FAHR dated June 9, 2004 • Memo from Director Mike Duvall • Matrix Comparing Alternatives MW Page 4 Book Page 132 Parcels w ith Changes in Square Footage, Use Codes, and Rates Difference Parcel Current New Current between Number SqFtg. SqFtg. Fee New Fee Existi ng and Percent Notes City New Fee Change 1 37471132 271,911 271,911 $57,071 $92,792 $35,721 63% Average Demand Center to High Demand Center Orange 2 37471129 136,147 136,147 $10,896 $46,462 $35,566 326% Low Demand Center to High Demand Center Orange 3 09623216 0 312,000 $0 $32,978 $32,978 N/A Governement Vacant to Apartments Westminster 4 13311106 107,023 107,023 $8,565 $36,523 $27,958 326% Low Demand Center to High Demand Center Garden Grove 5 40847116 8,735 8,735 $303 $23,742 $23,438 7726% Store to Laundromat Santa Ana 6 41248313 84,160 84 ,160 $6,735 $28,720 $21 ,985 326% Low Demand Center to High Demand Center Costa Mesa 7 24224501 30,546 60,546 $1,061 $20,662 $19,601 1848% Store to High Demand Center Costa Mesa 8 19511154 0 257,240 $0 $19,422 $19,422 N/A Mixed Use to Light Industrial Huntington Beach 9 40001205 73,915 73,915 $5,915 $25,224 $19,309 326% Low Demand Center to High Demand Center Santa Ana 10 14611227 140,383 140,383 $29,465 $47,907 $18,442 63% Average Demand Center to High Demand Center Huntington Beach 11 15317101 135,432 135,432 $28,426 $46,218 $17,792 63% Average Demand Center to High Demand Center Huntington Beach OJ 12 41903110 66,802 66,802 $5,346 $22,797 $17,451 326% Low Demand Center to High Demand Center Costa Mesa 0 0 13 37538133 65,649 65,649 $5,254 $22,403 $17,149 326% Low Demand Center to High Demand Center Orange ~ 14 02918034 28,428 143,591 $4,164 $21,032 $16,868 405% Sq. Footage updated Fullerton 'lt 15 15909105 63,681 63,681 $5,096 $21,732 $16,635 326% Low Demand Center to High Demand Center Huntington Beach IQ CD 16 35420122 124,415 124,415 $26,113 $42,458 $16,344 63% Average Demand Center to High Demand Center Anaheim -.a. 17 22212151 53,159 53,159 $1,846 $18,141 $16,295 883% Store to High Demand Center Los Alamitos C,.) c.., 18 28104110 114,721 11 4,721 $24,079 $39,150 $15,071 63% Average Demand Center to High Demand Center Fullerton 19 10723110 53,669 53,669 $3,323 $18,315 $14,992 451 % Office to High Demand Center Huntington Beach 20 09918303 48,208 48,208 $1,674 $16,451 $14,777 883% Store to High Demand Center Garden Grove 21 09806703 0 42,927 $0 $14,649 $14,649 N/A Vacant to High Demand Center Garden Grove 22 14207406 53,708 53,708 $4,298 $18,328 $14,030 326% Low Demand Center to High Demand Center Garden Grove 23 28724106 103,203 103,203 $21,661 $35,219 $13,558 63% Average Demand Center to High Demand Center Fullerton 24 09960420 43,552 43,552 $1,513 $14,863 $13,350 883% Store to High Demand Center Garden Grove 25 37513108 49,491 49,491 $3,961 $16,889 $12,929 326% Low Demand Center to High Demand Center Orange 26 14121119 41,361 41,361 $1,436 $14,115 $12,678 883% Average Demand Center to High Demand Center Costa Mesa 27 08908102 28,700 28,700 $997 $1 3,001 $12,004 1204% Store to High Demand Center Garden Grove 28 13154120 91,362 91,362 $19,176 $31,178 $12,002 63% Average Demand Center to High Demand Center Garden Grove 29 19511512 0 154,800 $0 $11,687 $11,687 N/A Vacant to Light Industrial Huntington Beach 30 14302103 86,999 86,999 $18,260 $29,689 $11,429 63% Average Demand Center to High Demand Center Westminster 31 09845312 86,862 86,862 $18,231 $29,643 $11,411 63% Average Demand Center to High Demand Center Westminster 32 25507712 40,241 40,241 $2,491 $13,733 $11,241 451% Office to High Demand Center Anaheim 33 07256311 4,152 4,152 $144 $11,285 $11,141 7726% Store to Laundromat Anaheim 34 36353101 81,358 81,358 $17,076 $27,764 $10,688 63% Average Demand Center to High Demand Center Anaheim 35 13528119 80,622 80,622 $16,922 $27,513 $10,591 63% Average Demand Center to High Demand Center Anaheim 2/22/2006 C:\Documerlls:Jaril'd Settings\crane\Local Settings\Temporary Internet Files\OLK3\Top15% 05-06 Difference Parcel Current New Current between Number SqFtg. SqFtg. Fee New Fee Existing and Percent Notes City New Fee Change 36 26823103 80,153 80,153 $16,823 $27,353 $10,530 63% Average Demand Center to High Demand Center Anaheim 37 12733331 34,114 34,114 $1 ,185 $11 ,642 $10,457 883% Store to High Demand Center Anaheim 38 13936205 59,656 59,656 $2,072 $12,521 $10,449 504% Store to Average Demand Center Costa Mesa 39 16701324 78,156 78,156 $16,404 $26,672 $10,267 63% Average Demand Center to High Demand Center Fountain Valley 40 41817401 33,480 33,480 $1 ,163 $11,425 $10,263 883% Store to High Demand Center Costa Mesa 41 37553202 38,594 38,594 $3,089 $13,171 $10,082 326% Low Demand Center to High Demand Center Orange 42 41030143 32,192 32 ,192 $1,118 $10,986 $9,868 883% Store to High Demand Center Santa Ana 43 14149107 31,850 31,850 $1 ,106 $10,869 $9,763 883% Store to High Demand Center Costa Mesa 44 09830304 44,756 44,756 $5,542 $15,273 $9,732 176% Store to Hi9h Demand Center Westminster 45 03222429 44,539 44,539 $5,515 $15,199 $9,685 176% Store to High Demand Center Fullerton 46 32033105 31 ,391 31,391 $1,090 $10,712 $9,622 883% Store to High Demand Center Brea 47 10108075 1,680 29,800 $573 $10,170 $9,596 1674% Square footage updated. Garden Grove a:, 48 41816209 36 ,680 36,680 $2 ,936 $12,517 $9,582 326% Low Demand Center to High Demand Center Costa Mesa 0 49 15352103 31,060 31 ,060 $1,079 $10,600 $9,521 883% Store to High Demand Center Huntington Beach 0 50 38618149 30 ,749 30,749 $1,068 $10,493 $9,425 883% Store to High Demand Center Orange "" ~ 51 41248312 36,071 36,071 $2,887 $12,310 $9,423 326% Low Demand Center to High Demand Center Costa Mesa (Q 52 09938119 33,328 33,328 $2,063 $11 ,374 $9,310 451% Office to High Demand Center Garden Grove CD 53 10722073 70,162 70,162 $14,726 $23,943 $9!217 63% Average Demand Center to High Demand Center Westminster ~ ~ 54 13417315 29 ,800 29,800 $1,035 $10,170 $9,135 883% Store to High Demand Center Cypress 55 06653002 29,751 29,751 $1,033 $10,153 $9,120 883% Store to High Demand Center Buena Park 56 39027405 29,648 29,648 $1,030 $10,118 $9,088 883% Store to Hi9h Demand Center Orange 57 09917347 41,220 41 ,220 $5,104 $14,067 $8,963 176% Store to High Demand Center Garden Grove 58 09859411 41 ,022 41,022 $5,079 $13,999 $8 ,920 176% Store to High Demand Center Westminster 59 10855325 28,969 28,969 $1 ,006 $9,886 $8,880 883% Store to High Demand Center Westminster 60 23141103 28,688 28,688 $996 $9,790 $8,794 883% Store to High Demand Center Garden Grove 61 37539138 27,058 42,000 $5,679 $14,333 $8,654 152% Average Demand Center to High Demand Center Orange 62 01807006 28,021 28,021 $973 $9,562 $8,589 883% Store to High Demand Center La Habra 63 10825311 30,104 30,104 $1 ,864 $10,273 $8,410 451 % Auto Repair Shoe to High Demand Center Santa Ana 64 10825348 43,480 43,480 $1,510 $9,914 $8,404 557% Store to High Demand Center Santa Ana 65 09857104 27,142 27,142 $943 $9,262 $8,320 883% Store to High Demand Center Garden Grove 66 19527135 27,050 27,050 $939 $9,231 $8,292 883% Store to High Demand Center Westminster 67 14416202 26,736 26,736 $929 $9,124 $8,195 883% Store to High Demand Center Fountain Valley 68 50016204 26,480 26,480 $920 $9,037 $8,117 883% Store to High Demand Center Tustin 69 39613101 26,428 26,428 $918 $9,019 $8,101 883% Store to High Demand Center Santa Ana 70 40163101 46,124 46,124 $1 ,602 $9,681 $8,079 504% Store to Average Demand Center Tustin 71 34645111 30,729 30,729 $2,459 $10,487 $8,027 326% Low Demand Center to High Demand Center Anaheim 2/22/2006 C:\DocumerRS){iiil'd Settings\crane\Local Settings\Temporary Internet Files\OLK3\Top15% 05-06 Difference Parcel Current New Current between Number SqFtg. SqFtg. Fee New Fee Existing and Percent Notes City New Fee Change 72 39832610 26,027 26,027 $904 $8,882 $7,978 883% Average Demand Center to High Demand Center Santa Ana 73 16739123 60,728 60,728 $12,746 $20,724 $7,978 63% Average Demand Center to High Demand Center Fountain Vallet 74 13930415 36,376 36,376 $4,504 $12,414 $7,910 176% Store to High Demand Center Costa Mesa 75 06949120 30,150 30,150 $2,413 $10,289 $7,876 326% Low Demand Center to High Demand Center Buena Park 76 34124157 59,325 59,325 $12,452 $20,245 $7,794 63% Average Demand Center to High Demand Center Yorba Linda 77 38630108 29,730 29,730 $2,379 $10,146 $7,766 326% Low Demand Center to High Demand Center Orange 78 15724114 25,109 25,109 $872 $8,569 $7,697 883% Average Demand Center to High Demand Center Fountain Valley 79 10722075 58,473 58,473 $12,273 $19,954 $7,682 63% Average Demand Center to High Demand Center Westminster 80 23148128 0 8,400 $0 $7,610 $7,610 N/A Sguare footage uedated. Santa Ana 81 42312307 12,261 26,712 $1,518 $9,116 $7,598 500% Store to High Demand Center Newport Beach 82 07250134 24,684 24,684 $857 $8,424 $7,566 883% Store to High Demand Center Anaheim 83 24427116 57,526 57,526 $12,074 $19,631 $7,557 63% Average Demand Center to High Demand Center Cypress a, 84 39341123 50,494 50,494 $4,041 $11 ,513 $7,472 185% Low Demand Center to High Demand Center Orange 0 85 08652139 16,577 25,679 $1,327 $8,763 $7,437 561 % Low Demand Center to High Demand Center Los Alamitos 0 86 38326117 17,220 48,429 $3,614 $11 ,042 $7,428 206% Average Demand Center to High Demand Center Orange ~ ~ 87 15324309 24,228 24,228 $841 $8,268 $7,427 883% Store to High Demand Center Huntington Beach tQ 88 04710003 14,084 24,304 $872 $8,294 $7,422 851% Office to High Demand Center Newport Beach CD 89 37424211 24,208 24,208 $841 $8,261 $7,420 883% Store to High Demand Center Orange -.a. $4,126 $11,372 $7,246 176% Store to High Demand Center Huntington Beach (o) 90 93719233 33,324 33,324 UI 91 09057426 23,400 23,400 $813 $7,985 $7,173 883% Store to High Demand Center Anaheim 92 24101131 23,120 23,120 $803 $7,890 $7,087 883% Store to High Demand Center Cteress 93 41908524 23,090 23,090 $802 $7,880 $7,078 883% Store to High Demand Center Costa Mesa 94 34938117 10,100 10,100 $2,120 $9,151 $7,031 332% Average Demand Center to High Demand Center Anaheim 95 29630202 22,512 22,512 $782 $7,682 $6,901 883% Store to High Demand Center Brea 96 03303144 7,594 7,897 $264 $7,155 $6,891 2613% Store to Restaurant Brea 97 34645118 26,220 26,220 $2,098 $8,948 $6,849 326% Low Demand Center to High Demand Center Anaheim 98 24448118 22,304 22,304 $775 $7,611 $6,837 883% Store to Hlgh Demand Center Cypress 99 40122125 51 ,877 51,877 $10,888 $17,704 $6,815 63% Average Demand Center to High Demand Center Tustin 100 40505210 2,500 2,500 $87 $6,795 $6,708 7726% Store to High Demand Center Santa Ana 101 15114129 50,826 50,826 $10,668 $17,345 $6,677 63% Average Demand Center to High Demand Center Huntington Beach 102 42528318 8,261 8,261 $873 $7,484 $6,611 757% Mix of Forms to Restaurant Newport Beach 103 15347121 21 ,477 21,477 $746 $7,329 $6,583 883% Store to High Demand Center Huntington Beach 104 09955423 50,009 50,009 $10,496 $17,066 $6,570 63% Average Demand Center to High Demand Center Westminster 105 07149130 21,362 21,362 $742 $7 ,290 $6,548 883% Store to High Demand Center Anaheim 106 14603109 21,362 21,362 $742 $7,290 $6,548 883% Store to High Demand Center Huntington Beach 107 37548101 24,741 24,741 $1,980 $8,443 $6,463 326% Low Demand Center to High Demand Center Orange 2/22/2006 C:\DocumerffSJaiii'd Settings\crane\Local Settings\Temporary Internet Files\OLK3\Top15% 05-06 Difference Parcel Current New Current between Number SqFtg. SqFtg. Fee New Fee Existing and Percent Notes City New Fee Change 108 44223112 7,497 5,720 $464 $6,875 $6,411 1381 % Auto Repair Shop to Car Wash Newport Beach 109 18804102 20,788 20,788 $722 $7,094 $6,372 883% Store to High Demand Center Santa Ana 110 20311106 20,542 20,542 $713 $7,010 $6,297 883% Store to High Demand Center Westminster 111 37424102 23,820 23,820 $1,906 $8,129 $6,222 326% Low Demand Center to High Demand Center Orange 112 09449121 47,321 47,321 $9 ,932 $16,149 $6,21 7 63% Average Demand Center to High Demand Center Orange 113 15336244 20,025 20,025 $695 $6,834 $6,138 883% Store to High Demand Center Huntington Beach 114 13445128 46,717 46,717 $9,805 $15,943 $6,137 63% Average Demand Center to High Demand Center Cypress 115 13622127 19,856 19,856 $690 $6,776 $6,086 883% Store to Hi9h Demand Center Buena Park 116 14305131 46,010 46,010 $9,657 $15,701 $6,044 63% Average Demand Center to High Demand Center Westminster 117 13526117 19,532 19,532 $678 $61665 $5,987 883% Store to High Demand Center Anaheim 118 23306208 19,500 19,500 $677 $6,655 $5,977 883% Store to High Demand Center Anaheim 119 39850516 19,478 19,478 $676 $6,647 $5,971 883% Store to High Demand Center Santa Ana OJ 120 06657101 19,449 19,449 $675 $6,637 $5,962 883% Store to High Demand Center Buena Park 0 121 44029109 22 ,817 22,817 $1,826 $7,787 $5,960 326% Low Demand Center to High Demand Center Neweort Beach 0 122 03228409 19,423 19,423 $675 $6,628 $5,954 883% Store to High Demand Center Fullerton ~ ~ 123 09806239 19,263 19,263 $669 $6 ,574 $5,905 883% Store to High Demand Center Garden Grove lQ 124 02865124 44,768 44,768 $9,396 $15,278 $5,881 63% Average Demand Center to High Demand Center Fullerton (I) 125 12702160 19,014 19,014 $660 $6 ,489 $5 ,828 883% Store to High Demand Center Anaheim ..... $5,774 (.) 126 26234163 22,104 22,104 $1,769 $7,543 326% Low Demand Center to Hi9h Demand Center Cypress 0) $651 $6,394 $5,743 883% Store to High Demand Center Anaheim 127 12627145 18,737 18,737 128 37530116 45,613 45,613 $9,91 8 $15,566 $5,648 57% Entertainment Center to High Demand Center Orange 129 50017128 18,332 18,332 $637 $6,256 $5,619 883% Store to High Demand Center Tustin 130 24121201 18,300 18,300 $636 $6,245 $5,609 883% Store to High Demand Center C~press 131 11920035 31,541 31 ,541 $1,095 $6,620 $5 ,525 504% Store to Average Demand Center Costa Mesa 132 12817154 6,337 6,337 $220 $5,741 $5,521 2509% Store to High Demand Center Anaheim 133 09623067 17,770 17,770 $617 $6,064 $5 ,447 883% Store to High Demand Center Westminster 134 35408207 17,728 17,728 $616 $6,050 $5,434 883% Store to High Demand Center Anaheim 135 41213126 17,692 17,692 $614 $6,038 $5,423 883% Store to High Demand Center Santa Ana 136 3860111 0 20,660 20,660 $1,653 $7,050 $5,397 326% Low Demand Center to High Demand Center Orange 137 38619105 17,530 17,530 $609 $5,982 $5,373 883% Store to High Demand Center Orang.e 138 41 004 14 7 17,527 17,527 $609 $5,981 $5,373 883% Store to High Demand Center Santa Ana 139 13527141 17,460 17,460 $606 $5,958 $5,352 883% Store to High Demand Center Anaheim 140 13125416 22,658 22,658 $2,395 $7,732 $5,337 223% Mix of Forms to High Demand Center Stanton 141 37530117 7,743 7,743 $1,684 $7,015 $5,332 317% Entertainment Center to Restaurant Orange 142 13345419 17,374 17,374 $603 $5,929 $5,326 883% Store to High Demand Center Garden Grove 143 14114164 28,481 18,401 $989 $6,280 $5,290 535% Store to High Demand Center Costa Mesa 2/22/2006 C:\Documents:>fliid Settings\crane\Local Settings\Temporary Internet Files\OLK3\Top15% 05-06 Difference Parcel Current New Current between Number SqFtg. SqFtg. Fee New Fee Existing and Percent Notes City New Fee Change 144 15734101 17,220 17,220 $598 $5,876 $5,278 883% Store to High Demand Center Huntington Beach 145 37553103 20,158 20,158 $1,613 $6,879 $5,266 326% Low Demand Center to High Demand Center Orange 146 15910243 46,479 46,479 $10,598 $15,861 $5,264 50% Average Demand Center to High Demand Center Huntington Beach 147 30301105 171090 17,090 $594 $5,832 $5,239 883% Store to High Demand Center La Habra 148 23132319 6,000 6,000 $208 $·5,436 $5,228 2509% Store to High Demand Center Garden Grove 149 26331263 39,714 39 ,714 $8,336 $13,553 $5,217 63% Average Demand Center to High Demand Center La Palma 150 35621110 17,010 17,010 $591 $5,805 $5,214 883% Store to High Demand Center Anaheim 151 09709055 23,968 23,968 $2,968 $8,179 $5,212 176% Store to High Demand Center Westminster 152 01945108 16,984 16,984 $590 $5,796 $5,206 883% Store to High Demand Center La Habra 153 50011103 16,956 16,956 $589 $5,786 $5,198 883% Store to High Demand Center Tustin 154 42232213 16,936 16,936 $588 $5,780 $5,191 883% Store to High Demand Center Costa Mesa 155 14225328 16,858 16,858 $585 $5,753 $5 ,167 883% Store to High Demand Center Huntington Beach ta 156 37539103 18,487 18,487 $1,145 $.6,309 $5,164 451% Office to High Demand Center Orange 0 157 12817155 19,760 19,760 $1,581 $6,743 $5 ,162 326% Low Demand Center to High Demand Center Anaheim 0 158 10113136 16,800 16,800 $583 $5 ,733 $5 ,150 883% Store to High Demand Center Santa Ana ~ ~ 159 09822233 16,770 16,770 $582 $5,723 $5,141 883% Store to High Demand Center Garden Grove (Q 160 24224261 67,916 67,916 $5,128 $10,255 $5,128 100% Light Industrial to Food Processing Plant Los Alamitos C1) 161 25314119 16,397 16,397 $569 $5,596 $5,026 883% Store to High Demand Center Anaheim ~ $5,548 $4,983 c.., 162 07049236 16,256 16,256 $565 883% Store to High Demand Center Anaheim ...... 163 03221219 18,922 18,029 $1,171 $6,153 $4,981 425% Office to High Demand Center Fullerton 164 37264229 16,228 16,228 $564 $5,538 $4,974 883% Store to High Demand Center Orange 165 15304118 5,997 5,997 $462 $5,433 $4,971 1076% Financial Bldgs to Restaurant Huntington Beach 166 34938120 37,705 37,705 $7,914 $12,867 $4,953 63% Average Demand Center to High Demand Center Anaheim 167 33724171 16,131 16,131 $560 $5,505 $4,945 883% Store to High Demand Center Placentia 168 29636425 16,081 16,081 $558 $5,488 $4,929 883% Store to High Demand Center Brea 169 41923101 67,300 16,500 $711 $5,631 $4,919 692% Mini-Warehouse to High Demand Center Costa Mesa 170 12641011 16,000 16,000 $556 $5,460 $4,904 883% Store to High Demand Center Stanton 171 25009117 15,941 15,941 $554 $5,440 $4,886 883% Store to High Demand Center Anaheim 172 09936221 15,800 15,800 $549 $5,392 $4,843 883% Store to High Demand Center Garden Grove 173 37471121 8,542 8,542 $2,915 $7,739 $4,824 165% High Demand Center to Restaurant Orange 174 07224216 18,425 18,425 $1,475 $6,288 $4,813 326% Low Demand Center to High Demand Center Fullerton 175 13920323 36,600 36,600 $7,682 $12,490 $4,808 63% Average Demand Center to High Demand Center Costa Mesa 176 27629324 15,642 15,642 $543 $5,338 $4,795 883% Store to High Demand Center Buena Park 177 12854416 15,600 15,600 $542 $5,324 $4,782 883% Store to High Demand Center Anaheim 178 42521306 36,119 36,119 $7,581 $12,326 $4,745 63% Average Demand Center to High Demand Center Costa Mesa 179 01918263 15,406 15,406 $535 $5,257 $4,722 883% Store to High Demand Center La Habra 2/22/2006 C:\Documerff!Diliii'd Settings\crane\Local Settings\Temporary Internet Files\OLK3\Top15% 05-06 Difference Parcel Current New Current between Number SqFtg. SqFtg. Fee New Fee Existing and Percent Notes City New Fee Change 180 01801026 15,390 15,390 $534 $5,252 $4,717 883% Store to High Demand Center La Habra 181 11763123 15,387 15,387 $534 $5,251 $4,717 883% Store to High Demand Center Neweort Beach 182 15745108 5,392 5,392 $187 $4,885 $4,698 2509% Store to Restaurant Huntington Beach 183 14120219 15,247 15,247 $530 $5,203 $4,674 883% Store to High Demand Center Costa Mesa 184 14222117 0 13,650 $0 $4,658 $4,658 NIA Square footage updated. Huntington Beach 185 14315312 15,184 15,184 $527 $5,182 $4,654 883% Store to High Demand Center Fountain Valley 186 29636122 15,156 15,156 $526 $5,172 $4,646 883% Store to High Demand Center Brea 187 09916249 15,144 15,144 $526 $5,168 $4,642 883% Store to High Demand Center Garden Grove 188 10825347 15,100 15,100 $524 $5,153 $4,629 883% Store to High Demand Center Santa Ana 189 11737328 15,080 15,080 $524 $5,146 $4,622 883% Store to High Demand Center Costa Mesa 190 14659107 35,160 35,160 $7,380 $11 ,999 $4,619 63% Average Demand Center to High Demand Center Huntington Beach 191 14802119 14,945 14,945 $519 $5,100 $4,581 883% Store to High Demand Center Huntington Beach O'J 192 15305110 26,000 26,000 $903 $5,457 $4,554 504% Store to Average Demand Center Huntington Beach 0 193 03302203 20,871 20,871 $2,584 $7,122 $4,538 176% Store to High Demand Center Fullerton 0 194 14207208 14,725 14,725 $511 $5,025 $4,514 883% Store to High Demand Center Huntington Beach ~ ~ 195 07255113 14,712 14,712 $5 11 $5,021 $4,510 883% Store to High Demand Center Anaheim IQ 196 09918159 34 ,312 34,312 $7,202 $11 ,709 $4,508 63% Average Demand Center to High Demand Center Garden Grove ct) 197 39025145 17,174 17,174 $1,374 $5,861 $4,486 326% Low Demand Center to High Demand Center Orange ~ $507 $4,983 $4,476 C,J 198 01941106 14,602 14,602 883% Store to High Demand Center La Habra 00 199 03223221 14,580 14,580 $506 $4,976 $4,469 883% Store to High Demand Center Fullerton 200 14121118 33,980 33,980 $7,132 $11 ,596 $4,464 63% Average Demand Center to High Demand Center Costa Mesa 201 20344249 14,466 14,466 $502 $4,937 $4,434 883% Store to High Demand Center Westminster 202 19531702 14,457 14,457 $502 $4 ,934 $4,432 883% Store to High Demand Center Westminster 203 12723160 14 ,442 14,442 $502 $4 ,928 $4,427 883% Store to High Demand Center Anaheim 204 09807061 5,064 5,064 $176 $4 ,588 $4,412 2509% Store to Restaurant Garden Grove 205 26357103 14,300 14,300 $497 $4 ,880 $4,383 883% Store to High Demand Center Buena Park 206 40215205 14,150 14,150 $491 $4,829 $4,337 883% Store to High Demand Center Tustin 207 35819206 6,222 6,222 $1,306 $5 ,637 $4,331 332% Average Demand Center to High Demand Center Anaheim 208 13443110 32,465 32,465 $6.,814 $11 ,079 $4,265 63% Average Demand Center to High Demand Center Cypress 209 09629056 13,880 13,880 $482 $4,737 $4,255 883% Store to High Demand Center Westminster 210 12623243 13,867 13,867 $482 $4 ,732 $4,251 883% Store to High Demand Center Anaheim 211 26712104 13,853 13,853 $481 $4,727 $4,246 883% Store to High Demand Center Anaheim 212 39049128 13,846 13,846 $481 $4,725 $4,244 883% Store to High Demand Center Orange 213 07955137 13,741 13,741 $477 $4,689 $4,212 883% Store to High Demand Center Stanton 214 02520068 13,718 13,718 $476 $4,681 $4,205 883% Store to High Demand Center Huntington Beach 215 10152326 13,650 13,650 $474 $4,658 $4,184 883% Store to High Demand Center Garden Grove 2/22/2006 C:\DocumerflS'.>iliid Settings\crane\Local Settings\Temporary Internet Files\OLK3\Top15% 05-06 Difference Parcel Current New Current between Number SqFtg. SqFtg. Fee New Fee Existing and Percent Notes City New Fee Change 216 12604218 13,610 13,610 $473 $4,645 $4,172 883% Store to High Demand Center Anaheim 217 39845306 13,602 13,602 $472 $4,642 $4,169 883% Store to High Demand Center Santa Ana 218 12818119 31,500 31,500 $6,612 $10,750 $4,138 63% Average Demand Center to High Demand Center Anaheim 219 41109303 13,496 13,496 $469 $4,606 $4,137 883% Store to High Demand Center Santa Ana 220 08652140 36,497 36,497 $8,322 $12,455 $4,133 50% Supermarket to High Demand Center Los Alamitos 221 19524109 13,459 13,459 $467 $4,593 $4,126 883% Store to High Demand Center Westminster 222 13142223 13,445 13,445 $467 $4,588 $4,121 883% Store to High Demand Center Stanton 223 37539137 15,741 15,741 $1,260 $5,372 $4,112 326% Low Demand Center to High Demand Center Orange 224 26713106 13,333 13,333 $463 $4,550 $4,087 883% Store to High Demand Center Anaheim 225 01703319 13,250 13,250 $460 $4,522 $4,062 883% Store to High Demand Center La Habra 226 23126113 13,206 13,206 $459 $4,507 $4,048 883% Store to High Demand Center Orange 227 13453116 13,200 13,200 $458 $4,505 $4,046 883% Store to High Demand Center Cypress OJ 228 45918502 13,185 13,185 $458 $4,500 $4,042 883% Store to High Demand Center Newport Beach 0 229 07976263 13,181 13,181 $458 $4,498 $4,040 883% Store to High Demand Center Stanton 0 230 14617113 13,179 13,179 $458 $4,497 $4,040 883% Store to High Demand Center Huntington Beach ~ ~ 231 14213111 30,750 30,750 $6,454 $10,494 $4,040 63% Average Demand Center to High Demand Center Huntington Beach CQ 232 19811101 13,100 13,100 $455 $4,471 $4,016 883% Store to High Demand Center Garden Grove ct> 233 09957338 30,352 30,352 $6,371 $10,358 $3,987 63% Average Demand Center to High Demand Center Westminster ...i,. $452 $4,437 $3,986 Co) 234 41822111 13,002 13,002 883% Store to High Demand Center Costa Mesa CD 13402117 13,000 13,000 $451 $4,436 $3,985 883% Store to High Demand Center Cypress 235 236 13142222 12,989 12,989 $451 $4,433 $3,982 883% Store to High Demand Center Stanton 237 16508117 12,918 12,918 $449 $4,408 $3,960 883% Store to High Demand Center Huntington Beach 238 01918252 0 114,000 $0 $3,959 $3,959 N/A Square footage updated. La Habra 239 40135105 29,991 29,991 $6,295 $10,235 $3,940 63% Average Demand Center to High Demand Center Tustin 240 09806214 12,810 12,810 $445 $4,372 $3,927 883% Store to High Demand Center Garden Grove 241 13109167 85,788 85,788 $2,979 $6,866 $3,886 130% Store to High Demand Center Stanton 242 04311234 12,609 12,609 $438 $4,303 $3,865 883% Store to High Demand Center Seal Beach 243 12658155 12,590 12,590 $437 $4,296 $3,859 883% Store to High Demand Center Anaheim 244 42519304 29,328 29,328 $6,156 $10,008 $3,853 63% Average Demand Center to High Demand Center Costa Mesa 245 34132129 29,248 29,248 $6,139 $9,981 $3,842 63% Average Demand Center to High Demand Center Placentia Total Commercial and Industrial Count is 1634 2/22/2006 C:\Documeras:liliii'd Settings\crane\Local Settings\Temporary Internet Files\OLK3\Top15% 05-06 FAHR COMMITTEE Meeting Date To Bel. of Dir. 03/01/06 AGENDA REPORT Item Number Item Number FAHR06-15 Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance/Treasurer SUBJECT: GENERAL MANAGER AND EXECUTIVE MANAGEMENT TEAM (EMT) PURCHASE APPROVALS GENERAL MANAGER'S RECOMMENDATION Informational item. SUMMARY At the December Finance, Administration and Human Resources (FAHR) Committee Meeting, the Committee members requested additional information regarding purchases approved by the District's General Manager and Executive Management Team (EMT). Specifically, the Committee was interested in the number of approvals initiated each month by the General Manager and the EMT over $25,000 in determining whether each approval should be reported to the Committee for review. Staff has reviewed the number of approvals over two periods of time: January 2005 through June 2005, and September 2005 through December 2005. The General Manager and EMT approved items over $25,000 in nearly 600 instances, or 50 times per month. EMT approvals were primarily in the technical areas of Engineering and Operations where a large volume of purchases are required for day-to-day operations. As the District moves to full secondary and the CIP escalates, it is anticipated that the number of approvals will increase. Although no change in the approval levels is recommended at this time, staff will review the approval levels at other similar agencies for consistency and report back to this Committee and General Manager if a change is warranted. Also, note that a reduction in the approval levels of the EMT would require a corresponding allocation of time spent by the General Manager. During the period January 1, 2005 through June 30, 2005, the General Manager and the EMT approved 455 purchases over $25,000. H:ldeptlagenda\FAH R\FAHR2006\0306\06.06· 15.EMT Approvals.doc Revised: 01/04/06 Book Page 140 Page 1 Total Director Only GM Reviewed Manager Approvals Under $SOK Over $SOK General Man.aqer 131 3 128 Director of Enqineerinq 78 74 4 Director of Technical Services 17 6 11 Director of Reqional Assets 55 44 11 Director of Operations & Maint. 110 72 38 Director of Information Services 19 13 6 Director of Public Affairs 34 32 2 Director of Human Resources 4 3 1 Director of Finance 7 5 2 Total 455 252 203 During the period September 1, 2005 through December 31, 2005, the General Manager and the EMT approved 126 purchases over $25,000. Total Director Only GM Reviewed Manager Approvals Under $SOK Over $SOK General Manaqer 30 0 30 Director of Enqineerinq 30 2 28 Director of Technical Services 21 7 14 Director of Reqional Assets 15 8 7 Director of Operations & Maint. 12 4 8 Director of Information Services 8 6 2 Director of Public Affairs 5 2 3 Director of Human Resources 3 1 2 Director of Finance 2 2 0 Total 126 32 94 Approximately 32 purchases in the stated range were approved monthly: Month Approvals September October November December Total H:\dept\agenda\FAHRIFAHR2006\0306\06.06-15. EMT Approvals.doc Revised: 01/04/06 28 15 42 41 126 Book Page 141 Page2 PRIOR COMMITTEE/BOARD ACTIONS None. PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. [gl Not applicable (information item) ADDITIONAL INFORMATION None. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS None. H:\dept\agenda\FAHRIFAH R2006\0306\06 .06-15. EMT Approvals.doc Revised: 01/04/06 Book Page 142 Page 3 FAHR COMMI TTEE Meeting Date To Bd. of Dir. 03/01/06 AGE NDA RE PORT Item Number Item Number FAHR06-16 Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance/Treasurer SUBJECT: 2006-07 and 2007-08 Budget Assumptions GENERAL MANAGER'S RECOMMENDATION Informational item. SUMMARY At the February 2006 Finance, Administration and Human Resources (FAHR) Committee Meeting, staff presented the proposed Budget Assumptions, Fiscal Policy Statements, and Budget Calendar for preparation of the FY 2006-07 and FY 2007-08 Budget years. It was noted during the meeting that the CIP Oversight Committee would meet the following day and that items discussed during that meeting might impact the budget assumptions and/or fiscal policy. FAHR Committee members directed staff to report back any changes recommended by the CIP Oversight Committee. During the CIP Oversight Committee meeting, staff presented various scenarios with the intent to provide a comprehensive review of the GIP and investigate ways to level the impact of upcoming rate increases. While the CIP Oversight Committee and staff discussed the various scenarios which included a range of short-term rate increases, the Committee recommended no changes to the current CIP. However, the GIP Oversight Committee will continue to meet to discuss to overall program and bring forth any recommendations to the full Board. To allow all Board members the opportunity to hear this information more fully, two meetings have been calendared (March 15, and March 29), where staff will give the complete presentation. Therefore, staff is not recommending any additional changes to the budget assumptions as a result of the CIP Oversight meeting at this time. The two additional meetings may yield new recommendations. PRIOR COMMITTEE/BOARD ACTIONS None. H:\deptlagenda\FAHR\FAHR2006\0306\06.06-16.Budget Assumptions.doc Revised: 01/04/06 Book Page 143 Page 1 PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. [gJ Not applicable (information item) ADDITIONAL INFORMATION None. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS None. H:\dept\agenda\FAHRIFAHR2006\0306\06.06-1B.Budget Assumptions.doc Revised: 01104/06 Book Page 144 Page2 FAH R COMM ITTEE AGE N'DA REPORT Orange County Sanitation District FROM: Michael D. White, Controller SUBJECT: COP SERIES 2006 DEBT REPAYMENT GENERAL MANAGER'S RECOMMENDATION This is an Informational item only. SUMMARY Meetirfg D_ate To El.cl. of Dir. 03/01/06 03/22/06 Item Number ~terr, Number 'FAHR06-17 On March 7, the Sanitation District is scheduled to issue $200 million of certificates of participation (COP). This debt issue is a variable rate debt issue that will be traded daily and is scheduled to mature in 2036. As an additional hedge against rising interest rates, staff has been directed by the Finance, Administration and Human Resources Committee to implement an accelerated rate management program (ARM) whereby the District will budget and make annual debt service payments in accordance with a fixed rate debt amortization schedule. The fixed rate to be used for budgeting will be the "going fixed-rate" on the date of issuance for certificates of participation of similar size, roughly estimated to be 4.62 percent. The estimated variable rate is currently at 3.10 percent. The actual difference between the projected higher annual interest rate cost of the fixed rate calculation and the actual variable interest rate paid will be used to pay down on the outstanding principal debt. As shown on the attached schedule, staff projects the debt, originally scheduled to be retired in 2036, to actually be retired six years earlier in 2030, saving the District approximately $83,730,000 in future interest payments. PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. [:g) Not applicable (information item) ALTERNATIVES None. Book Page 145 CEQA FINDINGS N/A ATTACHMENTS 1. COP, Series 2006 -Calculation of Debt Service Savings through ARM Program Spreadsheet. H:ldeptlagenda\FAHR\FAHR2006\0306\06.06-17.COP Series 2006 Deb!Repay.doc Revised: 8/20/01 Book Page 146 Page2 Orange County Sanitation District Certificates of Participation, Series 2006 Calculation of Debt Service Savings through Accelerated Rate Management (ARM) Program Budgeted Fixed Rate Schedule Projected Actual Accelerated Rate Management {ARM} Schedule Cal AA Assumed Revenue Debt Variable Debt Date Principal MMDYTM Interest Service Principal Rate Interest Service Savings Total» 200,000,000 172,618,882 372,618,882 200,000,000 82,787,963 282,787,963 83,729,603 3/8/2006 2/1/2007 3,210,000 4.62% 8,290,333 11,500,333 5,750,000 3.10% 5,562,778 11,312,778 2,009 2/1/2008 3,360,000 4.62% 9,091,698 12,451,698 6,225,000 3.10% 6,021,750 12,246,750 1,184 2/1/2009 3,515,000 4.62% 8,936,466 12,451,466 6,420,000 3.10% 5,828,775 12,248,775 1,468 2/1/2010 3,680,000 4.62% 8,774,073 12,454,073 6,620,000 3.10% 5,629,755 12,249,755 636 2/1/2011 3,850,000 4.62% 8,604,057 12,454,057 6,820,000 3.10% 5,424,535 12,244,535 3,612 2/1/2012 4,025,000 4.62% 8,426,187 12,451,187 7,035,000 3.10% 5,213,115 12,248,115 165 2/1/2013 4,210,000 4.62% 8,240,232 12,450,232 7,255,000 3.10% 4,995,030 12,250,030 298 2/1/2014 4,405,000 4.62% 8,045,730 12,450,730 7,475,000 3.10% 4,770,125 12,245,125 3,704 tD 2/1/2015 4,610,000 4.62% 7,842,219 12,452,219 7,710,000 3.10% 4,538,400 12,248,400 152 0 2/1/2016 4,825,000 4.62% 7,629,237 12,454,237 7,945,000 3.10% 4,299,390 12,244,390 4,645 0 ~ 2/1/2017 5,045,000 4.62% 7,406,322 12,451,322 8,195,000 3.10% 4,053,095 12,248,095 1,721 ~ 2/1/2018 5,280,000 4.62% 7,173,243 12,453,243 8,450,000 3.10% 3,799,050 12,249,050 1,383 (Q 2/1/2019 5,525,000 4.62% 6,929,307 12,454,307 8,705,000 3.10% 3,537,100 12,242,100 3,324 ct) """' 2/1/2020 5,780,000 4.62% 6,674,052 12,454,052 8,980,000 3.10% 3,267,245 12,247,245 2,313 ~ 2/1/2021 6,045,000 4.62% 6,407,016 12,452,016 9,255,000 3.10% 2,988,865 12,243,865 3,046 ..... 2/1/2022 6,325,000 4.62% 6,127,737 12,452,737 9,545,000 3.10% 2,701,960 12,246,960 292 2/1/2023 6,615,000 4.62% 5,835,522 12,450,522 9,840,000 3.10% 2,406,065 12,246,065 3,823 2/1/2024 6,925,000 4.62% 5,529,909 12,454,909 10,145,000 3.10% 2,101,025 12,246,025 3,101 2/1/2025 7,245,000 4.62% 5,209,974 12,454,974 10,460,000 3.10% 1,786,530 12,246,530 2,974 2/1/2026 7,575,000 4.62% 4,875,255 12,450,255 10,785,000 3.10% 1,462,270 12,247,270 3,059 2/1/2027 7,925,000 4.62% 4,525,290 12,450,290 11,115,000 3.10% 1,127,935 12,242,935 2,973 2/1/2028 8,295,000 4.62% 4,159,155 12,454,155 11,460,000 3.10% 783,370 12,243,370 2,409 2/1/2029 8,675,000 4.62% 3,775,926 12,450,926 11,820,000 3.10% 428,110 12,248,110 908 2/1/2030 9,075,000 4.62% 3,375,141 12,450,141 1,990,000 3.10% 61,690 2,051,690 10,198,011 2/1/2031 9,495,000 4.62% 2,955,876 12,450,876 3.10% 12,247,135 2/1/2032 9,935,000 4.62% 2,517,207 12,452,207 3.10% 12,245,627 2/1/2033 10,395,000 4.62% 2,058,210 12,453,210 3.10% 12,249,253 2/1/2034 10,875,000 4.62% 1,577,961 12,452,961 -3.10% 12,246,858 2/1/2035 11,375,000 4.62% 1,075,536 12,450,536 3.10% 12,247,749 2/1/2036 11,905,000 4.62% 550,011 12,455,011 3.10% 12,245,771 Prepared by Public Resources Advisory Group FAKR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: Paul Loehr, Human Resources Supervisor Meeting Date 03/01/06 Item Number FAHR06-18 SUBJECT: OCSD LABOR RELATIONS PROGRAM UPDATE/ EMPLOYEE COMPENSATION OVERVIEW GENERAL MANAGER'S RECOMMENDATION Response to the FAHR Committee request for information on the OCSD Labor Relations Program (Update No. 2). SUMMARY This agenda report is an informational item in preparation for 2007 collective bargaining agreement negotiations. No action is associated with this report. Phase one of the preparation process for 2007 contract negotiations is underway. The Human Resources Department is currently reviewing collective bargaining agreements to identify issues and formulate improvements. One of the topics under review is employee compensation, which is expected to be a significant point of interest. To assist with the analysis, a reference table has been developed to outline the Memorandum of Understanding (MOU) provisions and organizational policies that address compensation (see attached Employee Compensation Table). Subsequent phase one steps will include soliciting feedback from management staff on collective bargaining agreement analysis, providing employment and labor related training to management staff, and re-establishing the Labor Management Committee (LMC). Human Resources staff will provide an in- depth overview of the LMC including a review of the first meeting. In addition, a Labor Relations calendar will be provided and reviewed during the FAHR Committee meeting in preparation for 2007 contract negotiations. Phase one will be completed by March 31, 2006. Future status updates on the Labor Relations Program will be provided to the FAHR Committee throughout the preparation process. PRIOR COMMITTEE/BOARD ACTIONS An informational agenda report was provided to the FAHR Committee on 12/12/05 outlining the OCSD Labor Relations Program. PROJECT/CONTRACT COST SUMMARY NIA H:ldeptlagenda\FAHRIFAHR2006\0306\06.06-18. Labor Relations Update.doc Page 1 Book Page 148 To Bd. of Dir. Item Number BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. [8] Not applicable (information item) ADDITIONAL INFORMATION 2007 Contract Negotiations Update Human Resources staff provided a Labor Relations Program Overview at the December 2005 FAHR Committee meeting. As part of that overview, six phases were outlined in preparation for 2007 contract negotiations. The timeline of each phase was broken down into quarterly periods beginning in calendar year 2006. The first phase of 2007 contract negotiations has started and will end March 31, 2006. During this phase, Human Resources staff began the task of completing a comprehensive review of current collective bargaining agreements to identify issues and formulate improvements. This is the first of three goals identified under phase one. This task will transition into phase two, where feedback will be solicited from managers and EMT members and a status report will given to the FAHR Committee. The second goal outlined in phase one is to develop and provide employment and labor related training to management staff. Currently, Human Resources staff has developed a fundamental training syllabus that is being reviewed by managers. The training will be fully developed by mid March with actual training being provided later that month. The final goal of phase one is to re-establish the LMC. The first meeting of the re-established LMC will occur on March 1 , 2006. At the initial meeting, a representative from the Federal Mediation and Conciliation Service (FMCS) will give a 2-hour presentation on the purpose and benefits of having a LMC, along with ways to develop a successful program. The LMC was initially established at the OCSD in early 1998 and continued through the end of 1999. The mission of the committee was to review and discuss OCSD related issues in a team forum to ensure that the interests of both labor and management were considered prior to changing or implementing new programs and processes. The re-establishment of the LMC is a voluntary process of working together with the common goal of anticipating and resolving mutual problems and improving the day-to-day working relationship. This cooperative effort is being put into place to aid contract administration and will not replace collective bargaining. The committee is designed to foster frequent and timely feedback through open communication; sharing of information and expertise; collaborative problem solving; and consensus recommendations. Regular meetings with employees and their designated labor representatives will facilitate ongoing communication and establish a way to share ideas for improving agency efficiency and effectiveness. The LMC will also promote a joint understanding of issues affecting the OCSD. This understanding will H:\deptlagenda\FAHRIFAHR2006\0306\06.06-18.Labor Relations Update.doc Page 2 Book Page 149 facilitate the implementation of any resulting OCSD management decisions. Meeting in a forum where every group is represented will provide an opportunity for advanced discussion on operational problems and plans, which capitalizes on the skill and knowledge of all employees. Finally, the LMC will provide a way for employee groups to express employment concerns without activating formal conflict resolution processes, such as, grievance and problem solving procedures, which, ultimately may increase employee morale and reduce absenteeism, improve quality and productivity, and increase overall job satisfaction. Employee Compensation Overview One of the many topics addressed through MOU collective bargaining agreements and organizational policy is employee compensation. With contract negotiations quickly approaching, this topic will become a significant point of interest. Compensation includes the following information based upon an employee's particular group. o Salary Structure Range Adjustments o Merit Pay Step System o Holiday Pay o Shift Differential o Acting Pay o Call-Back Pay o Standby Pay o Overtime o Overtime for Extraordinary Services o Substitution Pay o Relief Operator Pay o Plant Operator's Grade V Certificate Pay o Variable Special Pay o Severance Pay The compensation types are summarizec;l in the attached Compensation Table along with references to applicable MOU provisions and organizational policies. Information regarding employee applicability is also identified. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. Employee Compensation Table H:\deptlagenda\FAHR\FAHR2006\0306\06.06-18.Labor Relations Update.doc Page 3 Book Page 150 EMPLOYEE COMPENSATION TABLE COMPENSATION DESCRIPTION REFERENCE(S) APPLICABILITY TYPE Salary Structure On an annual basis through July 7, 2006, the MOU Article 13 All Employees Range salary ranges for all OCSD positions are Policy C10.10 Adjustments updated based on the results of an annual market study. Associated increases shall not exceed 4.00%. (Similar to CPI or COLA). Merit Pay Step The pay system is divided into six (6) steps MOU Article 13 All Employees, System with an approximate 4.6% difference between Policy C10.10 Except EMT each step. Employees hired on or before a specific date in 2002 (depending on the bargaining unit) become eligible for merit adjustments in July, through 2006. Employees hired after a specific date in 2002 (depending on the bargaining unit), become eligible for merit adjustments after one (1) year of service at steps two (2) through five (5) and after six (6) months of service at step one (1 ). Merit adjustments are contingent upon performance review ratings. Employees may receive a salary adjustment to the next pay step by earning a Satisfactory or higher performance review rating. However, if an employee's salary is at step five (5) or step six (6) of the salary range, the employee must receive an Above Average or Outstanding performance review rating to receive a salary adjustment to step six (6) or to maintain the step six (6) salary. Holiday Pay The OCSD provides 11 paid observed MOU Article 16 All Employees, holidays and one floating holiday each Policy C190.00, Except EMT calendar year. When an employee's work D30.00, D51 .00 schedule requires work on an observed holiday, the employee may opt to be paid at two (2) and one half (1/2) times the regular rate of pay for the holiday or to be paid at one (1) and one half (1 /2) times the regular rate and receive an equivalent amount of Holiday Compensatory Time Off equivalent to the number of hours in the shift. Shift Differential It is OCSD policy to compensate employees MOU Article 26 All Employees, for shift work outside normal business hours Policy C190.00 Except EMT at an hourly rate above their normal hourly rate. Employees who are regularly assigned to work a night shift that consists of 50% or more of their hours between 6:00 p.m. and 6:00 a.m. and who actually work that shift, shall receive a shift differential of $2.50 per hour. Page 1 of 4 H:\dept\agenda\FAHR\FAHR2006\0306\06.06-18.Labor Relations Update-Att 1.doc Book Page 151 EMPLOYEE COMPENSATION TABLE COMPENSATION DESCRIPTION REFERENCE($) APPLICABILITY TYPE Acting Pay Employees who are assigned by District's MOU Article 35 All Employees, management to perform the duties of an C190.00 Except EMT open, budgeted position at a higher level for a period of at least 100 consecutive hours will be eligible for a one ( 1) step salary increase or the first step of the range for the higher level classification, whichever is greater. The higher rate of pay begins with the 101 st hour and continues until the assignment ends or the six (6) month limitation has been reached at which time a determination will be made as to whether the position should or should not be posted. Call Back Pay If an employee is called back to work by MOU Article 18 Non Exempt District management without prior notice, after Policy C190.00 Employees completing his/her normal work shift and leaving the work station, or when prior notice is given but the work begins on the same day at least three (3) hours after completion of the regular shift, the employee will receive a minimum of three (3) hours of call back pay. The hours will be paid at the rate of one (1) and one half (1/2) times the regular hourly rate. Standby Pay Standby is time during which an employee is MOU Article 19 Non Exempt required to be available for immediate return Policy C190.00 Employees to work. Standby assignments will first be made on a voluntary basis. An employee placed on standby will be compensated at the rate of two hundred dollars per week, and will receive Call Back Pay when he/she is actually called to work. Overtime Overtime is the number of hours, which are MOU Article 22 Non Exempt counted as time worked, in excess of 40 Policy C190.00, Employees hours during a workweek. Employees who F20.00 qualify for overtime compensation shall be paid one (1) and one half (1 /2) times their regular rate of pay. Page 2 of 4 H:\dept\agenda\FAHR\FAHR2006\0306\06.06-18.Labor Relations Update-Att 1.doc Book Page 152 EMPLOYEE COMPENSATION TABLE COMPENSATION DESCRIPTION REFERENCE(S) APPLICABILITY TYPE Overtime for When services are required beyond what is MOU Article 22 Exempt Extraordinary normally expected, exempt employees will be Policy C40.00, Employees Services eligible to receive additional compensation for F20.10 the performance of such extraordinary service. Employees will be eligible to receive additional compensation at their regular rate of pay for performing extraordinary service of at least four (4) hours. Employees will be eligible to receive additional compensation at one (1) and one half (1 /2) times their regular rate of pay for work required by a major facilities failure or necessity to protect public health and safety caused by an emergency or work which becomes necessary to cover a regularly assigned shift which falls on an otherwise non-work day or shift. Substitution Pay If a Senior Plant Operator is assigned to MOU Article 35 Non Exempt perform the work of an Operations Supervisor Operations & because of the absence of the regularly Maintenance assigned Operations Supervisor and the Department unavailability of an alternate Operations Employees Supervisor for an entire shift, the Senior Plant Operator will be paid Substitution Pay equal to a one (1) step salary increase or the first step of the Operations Supervisor pay range, whichever is greater. If an employee in any of the "Lead" classifications is assigned to perform the work of a Maintenance Supervisor because of the absence of the regularly assigned Maintenance Supervisor and the unavailability of an alternate Maintenance Supervisor for a period of at least two (2) weeks, the "Lead" worker will be paid Substitution Pay equal to a one (1) step salary increase or the first step of the Maintenance Supervisor pay range, whichever is greater. Relief Operator When Plant Operators, Senior Plant MOU Article 49 Non Exempt Pay Operators or Power Plant Operators are Operations & assigned to Relief Operator positions, they will Maintenance be entitled to $1.25 per hour premium. Department Employees Page 3 of 4 H:\dept\agenda\FAHR\FAHR2006\0306\06.06-18.Labor Relations Update-Att 1.doc Book Page 153 EMPLOYEE COMPENSATION TABLE COMPENSATION DESCRIPTION REFERENCE($) APPLICABILITY TYPE Plant Operator Employees who perform duties involving the MOU Article 52 Plant Operators Grade Five (5) operation and control of wastewater through Policy C170.00 with Grade Five Certificate Pay the treatment plant are eligible to receive a (5) Certification 1.375% increase, upon obtainment of a California Wastewater Treatment Plant Operator's Grade Five (5) Certificate. Variable Special Employees may receive additional Policy C190.00 EMT members, Pay compensation in the form of a one-time lump Managers and sum payment for assuming the responsibilities Exempt of another position for an extended period of Confidential time due to a leave of absence or unusual Employees circumstances. Severance Pay Full-time, regular employees separated from Policy C180.00, Full-Time, Regular employment by action of OCSD, except for C190.00 Employees and disciplinary cause, are entitled to eight (8) EMT members hours pay for each full calendar month of continuous employment not to exceed one hundred sixty (160) hours pay or as may be determined bv the General Manaqer. Page 4 of 4 H:\dept\agenda\FAHR\FAHR2006\0306\06.06-18.Labor Relations Update-Att 1.doc Book Page 154 ORANGE COUNTY SANITATION DISTRICT (714) 962-2411 www.ocsd.com Mailing Address: P.O. Box 8127 Fountain Valley, California 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018