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HomeMy WebLinkAbout2006-04-12MINUTES OF THE REGULA~ JOINT MEETING OF THE FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE& STEERING COMMITTEE Orange County Sa~itation District Wednesday, April 12, 2006, 5:00 p.m. A joint meeting of the Finance, Administration and Human Resa.irces Committee and the Steering Committee of the Orange County Sanitation District was held onApril 12, 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 Rich Freschi Phil Luebben Joy Neugebauer Mark Waldman Steve Anderson, Board Chair DIRECTORS ABSENT: James W. Silva Jim Ferryman, Vice Board Chair STAFF PRESENT: Jim Ruth, Interim General Manager Lorenzo Tyner, Director of Finance Jeff Reed, Human Resources Manager Mike White, Controller Lilia Kovac, Committee Secretary Paul Loehr, Human Resources Supervisor OTHERS PRESENT: Brad Hogin, General Counsel Bob Geggie Bret Colson Keith Bozarth Robert Grantham Bob Lockhart Richard Kikuchi Shirish Patel FILED lN THE OFFICE OF THE SECRETARY ORANGE r.ntlNTV -.... -•Tll'\~i l')I TfllCT (2) APPOINTMENT OF CHAIR PRO TEM APR 26 2006 BY _ _.1.'f_.{;___, ---No appointment was necessary. (3) PUBLIC COMMENTS Bob Lockhart of Revenue Enhancement expressed interest in making comments onseveral agenda items. Due to time constraints it was recommended that a meeting be scheduled with Directors Miller and Luebben and Mr. Ruth to review his comments (4) REPORT OF THE COMMITTEE CHAIR Chair Miller had no report. (5) REPORT OF THE GENERAL MA~GER Jim Ruth, Interim General Manager, reported the completion of the performance evaluation process plan, as well as substantial progress made on the succession management program and its Minutes of the Regular Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting April 12, 2006 Page 2 scheduled implementation by July 1, 2006. The Leadership Development program is scheduled to be kicked off by the end of summer or early fall; and the two-year budget program process is progressing well. The independent review of Operations and Maintenance, Regional Assets and Services and Information Technology. , requests for proposals are being developed and the results should be presented to the Board within 90 days. (6) REPORT OF DIRECTOR OF FINANCE/TREASURER Director of Finance, Lorenzo Tyner, reported that the Sanitation District sold its stock investment in United Airlines (UAL) on sold April 5, 2006. (7) REPORT OF DIRECTOR OF HUMAN RESOURCESPUBLIC INFORMATION OFFICE Jeff Reed, Human Resources Manager, directed the attention of the committee members to the employment status reportwhich includes positions open more than 90 days. (8) REPORT OF GENERAL COUNSEL Brad Hagin, General Counsel, had no report. (9) CONSENT CALENDAR ITEMS a. Approve minutes of the March 1, 2006, Finance, Administration and Human Resources Committee meeting. b. FAHR06-19 Item pulled for discussion. c. FAHR06-20 Item pulled for discussion. d. FAHR06-21 Item pulled for discussion. e. FAHR06-22 Item pulled for discussion. Motion: It was moved, seconded and duly carriedto approve the recommended action for the item specified as 9(a) under consent calendar. END OF CONSENT CALENDAR f. FAHR06-19 Receive and file Employment Status Report as of March 1q 2006. Motion: Mr. Ruth explained the employment status to be at a newhire freeze level, as the budget process requires a thorough review of each position's criticality before hiring any new position. The agency is looking at internal resources for the operation to be optimally effective, while maintaining a safe level of service. It was moved, seconded and duly carried to receive and file . Minutes of the Regular Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting April 12, 2006 Page 3 g. FAHR06-20 Receive and file OSHA Incidence Rates and Workers' Compensation Motion: Claims and Costs Report. Directors requested that future reports be modified to include claims closed during the reporting period. It was moved, seconded and duly carried to receive and file. h. FAHR06-21 Recommend to the Board of Directors to adopt Resolution No. 06-_, amending Resolution No. OCSD 98-33, amending Human Resources Policies and Procedures Manual. Motion: Jeff Reed, Human Resources Manager, briefly reviewed the policy changes and answered Directors' questions. It was moved, seconded and duly carried to recommend approval to the Board of Directors. i. FAHR06-22 Recommend to the Board of Directors to adort Resolution No. OCSD 06- Motion: _, Adopting the Updated Records Retention Schedule and Records Series Definitions, Authorizing Destruction of Obsolete Records, and Repealing Resolution No. OCSD 05-08. Jeff Reed informed the Committee that annually the Board of Directors adopts an updated resolution to incorporate changes made in legislation for recordkeeping of public records, as well as internal departmental procedure changes. It was moved, seconded and duly carried to recommend approval to the Board of Directors. (10) ACTION ITEMS a. FAHR06-23 Approve the New Performance Appraisal System for EMT and Managers. Motion: Barry Newton of Creative Management Solutions described the streamlining features of the revised five-point Performance Appraisal System, goals and objectives-setting exercise. It was moved, seconded and duly carried to recommend approval to the Board of Directors. b. FAHR06-24 Approve implementation of a new process that will ensure the General Manager is informed on workers' compensation costs and liabilities. Minutes of the Regular Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting April 12, 2006 Page4 Motion: Jeff Reed briefly reviewed the proposed process and the required steps designed to keep the General Manager fully informed on workers' compensation costs and liabilities. It was moved, seconded and duy carried to approve. .c. FAHR06-25 Recommend to the Board of Directors to adopt Ordinance No. OCSD-27, Motion: An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Specified Revenue Areas within the District, and Repealing Ordinance No. OCSD-02: 1 ). Motion to read Ordinance No. OCSD-27 by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a unanimous vote of Directors present.) 2). Motion to introduce Ordinance No. OCSD-27, and pass to second reading and public hearing on May 24, 2006. Mike White, Controller, briefly presented the purpose of this ordinance as a housekeeping process to consolidate revenue areas and simplifying the financial reporting system by incorporating all, with the exception of Revenue Area 14, which is a full~funded revenue area through IRWD. It was moved, seconded and duly carried to recommend approval to the Board of Directors. d. FAHR06-26 Recommend to the Board of Directors to adopt Ordinance No. OCSD-28, An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Wastewater Discharge Regulations, and Repealing Ordinance No. OCSD-01 : 1 ). Motion to read Ordinance No. OCSD-28 by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a unanimous vote of Directors present.) 2). Motion to introduce Ordinance No. OCSD-28, and pass to second reading and public hearing on May 24, 2006. Mike White presented this ordinance as a proposed methodology to standardize the Sanitation District's rate structure, and remove the tax credit system; however, there was concern expressed that this move could cause extreme rate hikes for some businesses. Detailed information was not immediately available in order to address this concern. After discussion among the Directors, a substitute motion was made to delay consideration and to further discuss at a Special FAHR meetng that was subsequently scheduled for Wednesday, April 19, 2006. Minutes of the Regular Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting April 12, 2006 Page 5 e. FAHR06-27 Recommend to the Board of Directors to a::lopt Ordinance No. OCSD-29, Motion: An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Fees, Procedures, and Policies Concerning Annexations of Territory to the District and Repealing Ordinance No. OCSD-21 : 1). Motion to read Ordinance No. OCSD-29 by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a unanimous vote of Directors present.) 2). Motion to introduce Ordinance No. OCSD-29, and pass to second reading and public hearing on May 24, 2006. Mike White briefly defined the purpose of this Ordinance as a means to consistently apply the Sanitation District's policy to exempt certain open space areas from annexation fee payments It was moved, seconded and duly carried to recommend approval to the Board of Directors. f. FAHR06-28 Recommend to the Board of Directors to adopt Ordinance No. OCSD-30, An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Sanitary Sewer Service Charges; Establishing Capital Facilities Capacity Charges; Adopting Miscellaneous Charges and Fees Relating to Industrial Charges, Source Control Permittees and Wastehaulers, and Repealing Ordinance No. OCSD-26: 1 ). Motion to read Ordinance No. OCSD-30 by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a unanimous vote of Directors present.) 2). Motion to introduce Ordinance No. OCSD-30, and pass to second reading and public hearing on May 24, 2006. Lorenzo Tyner presented the proposed rate fees for consideration by the committee; however, the Directors agreed to consider this item at the Special FAHR Committee meeting scheduled for April 19, 2006. (11) INFORMATIONAL ITEMS a. FAHR06-29 2006/07 and 2007/08 Budget Development Lorenzo Tyner reported the budget in overview format that identifies the CIP reduction program and the proposed rate increas~ and the Sanitation District's debt service as it relates to the Cl P program. r , . f r r l f I L L L ROLL CALL JOINT FINANCE, ADMINISTRATION AND HUMAN RESOURCES AND STEERING COMMITTEES Meeting Date: April 12, 2006 Time: 5:00 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 Hogin, General Counsel I I STAFF Jim Ruth, Interim General Manager Bob Ghirelli, Director of Technical Services Lorenzo Tyner, Director of Financen-reasurer David Ludwin, Director of Engineering Jim Herberg, Director of Operations & --Management Lisa Tomko, Director of Human Resources Patrick Miles, Director of Information Technology Nick Arhontes, Director of Regional Assets & Services Lilia Kovac, Committee Secretary Jeff Reed, Human Resources Manager Paul Loehr, Human Resources Supervisor Sue Walker, Safety and Health Specialist c: Lenora Crane April 12, 2006 Page2 b. FAHR06-19 Receive and file Employment Status Report as of March 16, 2006. (Book Page 11) c. FAHR06-20 Receive and file OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. (Book Page 16) d. FAHR06-21 Recommend to the Board of Directors to adopt Resolution No. 06-_, amending Resolution No. OCSD 98-33, amending Human Resources Policies and Procedures Manual. (Book Page 18) e. FAHR06-22 Recommend to the Board of Directors to adopt Resolution No. OCSD 06-_, Adopting the Updated Records Retention Schedule and Records Series Definitions, Authorizing Destruction of Obsolete Records, and Repealing Resolution No. OCSD 05-08.(Book Page 39) END OF CONSENT CALENDAR f. Consideration of items deleted from Consent Calendar, if any. (10) ACTION ITEMS a. FAHR06-23 Approve the New Performance Appraisal System for EMT and Managers. (Book Page, 61) (Barry Newton -15 minutes) b. FAHR06-24 Approve implementation of a new process that will ensure the General Manager is informed on workers' compensation costs and liabilities. (Book Page 72) (Sue Walker - 5 minutes) c. FAHR06-25 Recommend to the Board of Directors to adopt Ordinance No. OCSD-27, An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Specified Revenue Areas within the District, and Repealing Ordinance No. OCSD-02: (Book Page 74) 1 ). Motion to read Ordinance No. OCSD-27 by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a unanimous vote of Directors present.) 2). Motion to introduce Ordinance No. OCSD-27, and pass to second reading and public hearing on May 24, 2006. (Lorenzo Tyner -15 minutes) H:\dept\agenda\FAHR\FAHR2006\0406\03.041206 FAHR Agenda.doc Book Page 2 April 12, 2006 Page4 b. FAHR06-30 Labor relations program update I benefits program overview. (Book Page 267) (Paul Loehr -20 minutes) c. FAHR06-31 Review for properties utilizing septic tanks (Book Page 274) (Lorenzo Tyner-5 minutes) d. FAHR06-32 Guidance to Contracted Internal Auditors on Scope of Work (Book Page 278) (Mike White-10 minutes) (12) CLOSED SESSION ·i During the· c~urse of conducting the business set forth on this agenda as a regular meeting of the Committee, .. i :j the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, i j pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 1 .: 54957 or 54957.6, as noted. l ' ' ' : j Reports relating to (a) purchase and sale of real pr0perty; (b) matters of pending or potential litigati0n; (c) l j employee actions or negptiations with employee represer,tatives; or which are exempt from public disclosure i i under the California Public Records Act, may be reviewed by the Committee during a permitted closed session l l and are not available for public inspection. At such time as final actions are taken by the Committee on any of [ ) these subjects, the minutes will reflect all required disclosures of information. ~ ~ ........... ,,~n•-••·•• ..... ,,,,uoooOuo-•·••,.._•~oo ... • •--••••••·•• .... •.••••• .. ••-•·•-•·•--·• ........ •H•·•••-~••••• .. ••·•••·•·•·• .. ·•-.•·••'-•••••••••• .... •••·•••••u ........... , ......... ,,_O<HO-·••••••~•••••••o•Oo, .. ,,,.. ou oooo • ,OoOO+••• .. •• .. ••-••----••U••O-On·OOO .. O ~ 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 SUPPLEMENTALAGENDA ITEMS, IF ANY (14) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT (15) FUTURE MEETING DATES The next Finance, Administration and Human Resources Committee Meeting is scheduled for May 10, 2006, at 5 p.m. (16) ADJOURNMENT H:\dept\agenda\FAHR\FAHR2OO6\O4O6\O3. 041206 FAHR Agenda.doc Book Page4 L L L L MINUTES 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 Hagin, General Counsel (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 had no report. (5) REPORT OF THE GENERAL MANAGER Jim Ruth, Interim General Manager, had no report. Book Page 7 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 Hogin, 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 Book Page 8 r r \ r j r , l f { { l I L ( L L 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 C. 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. FAHR06-15 General Manager and Executive Management Team Purchase Approvals Lorenzo Tyner presented a volume summary of purchases at the Executive Management T earn 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 e. 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. 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. (12) 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. CLOSED SESSION There was no closed session. Book Page 9 SEPARATIONS: 8 Total Job Title Division Reason Intern Public Information Office Term for Cause Intern Environmental Assessment Term for Cause Instrumentation Technician II Electrical & Instrumentation Maintenance Resignation Utilities Management Specialist O&M Administration Resignation Information Technology Analyst II Customer & Network Support Retirement Construction Inspector Engineering & Construction Retirement Principal Financial Analyst Regional Assets & Services Administration Retirement Principal Laboratory Analyst Laboratory-Organic Section Retirement PROMOTIONS: 4 Total Name Former Job Title Current Job Title Division Rohit Desai Info. Tech Analyst II Info. Tech Analyst Ill Process Controls Integration Ryan McMullin Intern Laboratory Assistant Environmental Sciences Laboratory Y.J. Shao Engineer Senior Engineer Process Engineering Mark Tomko Engineer Senior Engineer Process Engineering 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. March 16, 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:\deptlagenda\FAHRIFAHR200610406\06.06-19.Employment Status Report.doc Page2 Book Page 12 I January-February February 2006 2006 Data Change OCSD Workers' Compensation Claim Count (report period) 2 1 1 OCSD Workers' Compensation Claim Cost (report period) $1,600 800.00 800.00 Total Open Claims 28 Total OCSD Workers' $1,782,271* Compensation Claim Cost * The February 2006 Agenda report of approximately $45,500.00 was for cases incurred in the fiscal year. The $1,7282,271.00 amount represents all open claims. Future reports will report the amount of all open claims. 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. 1Z! Not applicable (information item) ADDITIONAL INFORMATION The reporting period ends February 28, 2006. ALTERNATIVES NIA CEQA FINDINGS NIA ATTACHMENTS NIA Revised: 06/04103 Book Page 17 Page2 r- r r r- l ( ' ?. L L I L;. l. FAHR COMMITTEE Meeting Date To Bel. of Dir. 04/12/06 04/26/06 AGENDA REPORT Item Number Item Number FAHR06-21 Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: Paul Loehr, Human Resources Supervisor SUBJECT: CHANGES AND ADDITIONS TO HUMAN RESOURCES POLICIES AND PROCEDURES AS AUTHORIZED BY RESOLUTION 98-33. GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 06-XX, amending Resolution No. OCSD 98-33, amending Human Resources Policies and Procedures Manual. SUMMARY Policy Number and Subject From To Reason for Change D10.00, Leave of Absence with Pay Current Language Revised Language Include Manager Administrative Leave to match Manager benefits. D90.00, Tuition Reimbursement Program Current Language Revised Language Revision of Organizational Units Affected. D120.00, Professional and Technical Current Language Revised Language Revision of membership processing fees. Memberships and Fees F100.00, Smoking Current Language Revised Language Updated General lnfonnation to include signage throughout both Plants. PRIOR COMMITTEE/BOARD ACTIONS • Human Resources Policies and Procedures Manual revisions were presented at the December 2005 FAHR Committee and Board of Directors meetings. 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) H:\deptlagenda\FAHR\FAHR2006\0406\06.06-21.HR Policy Procedure Update.doc Page 1 Book Page 18 ADDITIONAL INFORMATION The attached policy revisions are forwarded for approval to maintain consistent language with the Memorandums of Understanding (MOU), address new legislation, or to clarify procedures. Additional verbiage is highlighted; deleted verbiage is struck. Changes and additions to the Human Resources Policies and Procedures Manual will be done on a quarterly basis. The next quarterly update is scheduled for June 2006. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. D10.00 Leave of Absence with Pay 2. D90.00 Tuition Reimbursement Program 3. D120.00 Professional and Technical Memberships and Fees 4. F100.00 Smoking Policy 5. Resolution No. OCSD 06-XX H:ldeptlagenda\FAHR\FAHR2006\0406106.06-21.HR Polley Procedure Update.doc Page2 Book Page 19 4.1.1 Vacation leave begins to accrue after a new employee has completed six months of continuous service. After the first six months of service, the employee's account will be credited with 40 hours. After that time, the employee will accrue vacation hours consistent with the above chart. Vacation leave may only be utilized in increments of one-half hour or more. Vacation leave is accrued for all paid hours, including hours actually worked and hours in a paid-leave payroll status. A full-time, regular employee will be granted pro rata vacation leave credit during any pay period in which he/she is absent without pay for one (1) full working day. A part-time, regular employee will not be granted vacation leave credit during any period he/she is absent without pay on his/her regular working day. Employees may have a maximum accumulation of 200 hours as of the last day of the final pay period in December of each year. In the event an employee accrues vacation leave in excess of 200 hours, it must be used prior to said December date, all other remaining hours in excess of 200 will be paid to the employee in the first pay period in January at the employee's then current hourly rate of compensation. 4.1.2 Management shall make a reasonable effort, considering the operational needs of OCSD, to accommodate all employee requests for vacation leave. Vacation leave should normally be requested at least two weeks in advance to increase the likelihood of submitted dates being approved. However, in the event unforeseen circumstances prevent such advance notification, employees may request vacation leave with as little as one day's notice. Preference among employees who request time off at least six months in advance shall be based on seniority. Requests received less than six months in advance shall be scheduled in the order received. Further guidelines for vacation leave are outlined in applicable Memorandums of Understanding (MOU). 4.2 Sick Leave. Sick leave is an insurance or protection provided by OCSD to be granted to employees in circumstances of adversity to promote the health and welfare of the individual employee. It is not an earned right to take time off from work. Sick leave is defined as the absence from duty of an employee because of a bona fide illness, injury, or pregnancy, or to attend to the illness or injury of a family member as hereinafter defined. Temporary employees are not entitled to sick leave benefits. 4.2.1 Sick-Leave Accrual. Full-time employees hired prior to November 27, 1981, accrue paid sick leave at the rate of three and one-half (3.5) hours for each biweekly pay period of continuous service (ninety-one [91] hours per year). Full- time employees hired on or after November 27, 1981, accrue paid sick leave at the rate of three (3.0) hours for each biweekly pay period of continuous service (seventy-eight [78] hours per year), beginning with the first day of employment. Part-time employees receive pro-rated sick leave according to OCSD Policy D51 .00. 4.2.2 Sick-Leave Credit. A full-time, regular employee shall be granted pro rata sick- leave credit during any pay period in which he/she is absent without pay. A part- time, regular employee shall not be granted sick-leave credit during any period he/she is absent without pay on his/her regular working day. In the event an employee is required to work part-time by direction of his/her physician, sick- leave credit shall be prorated, except that sick leave shall continue to accrue if an employee is absent due to an injury arising out of or in the course of his/her employment and is entitled to Workers' Compensation benefits. 4.2.3 Annual Payoff. Employees may elect annually to be paid for any unused sick leave hours accrued through the end of October at their current hourly rate according to the following payoff schedule or as specified in a MOU. Page 2 of9 Book Page 21 r L l. L Accrued Sick Leave Hours Rate of Payoff 0-100 0% 101-240 25% 241-560 35% Over 560 (mandatory) 50% 4.2.4 Employees who separated for any reason other than retirement or death shall be compensated for any accrued and unused sick leave according to the above schedule. 4.2.5 Employees who retire or decease shall be paid a percentage of all accrued and unused sick leave as follows: Bargaining Unit Rate of Payoff Orange County Employees Association Employees 50% Supervisor/Professional Group Employees with 75% less than 20 years of service Supervisor/Professional Group Employees with 20 100% years or more of service 4.2.6 Sick Leave Incentive Plan. The Sick Leave Incentive Plan applies to Executive Management, Management, Supervisory and Professional Groups. The Plan will be administered on an individual Group basis. If the average sick leave usage of employees in a Group is under 40 hours per year, calculated on annualized actual time off during the period November 1 to October 31 exclusive of catastrophic illness or injury requiring absence in excess of 200 hours or industrial injury leave in excess of 80 hours, the annual payoff for unused sick leave will be made according to the following table or as otherwise stipulated in a prevailing MOU. Accrued Sick Leave Hours Rate of Payoff 0-100 10% 101-240 40% 241-560 50% Over 560 (mandatory) 60% 4.2.7 Permissible Uses. Sick leave may be applied only when: a. The employee is physically or mentally unable to perform his or her normal functions due to illness, injury, or a medical condition. b. The absence is for the purpose of obtaining professional diagnosis or treatment for a medical condition of the employee or the absence is due to medical and dental office appointments of an employee when approved by the employee's supervisor. c. The absence is for other medical reasons of the employee, such as pregnancy or obtaining a physical examination. Page 3 of9 Book Page 22 d. The absence is for the care of the employee's parent, father-in-law, mother- in-law, brother, sister, spouse, domestic partner, child, step-child, grandchild, grandparent, legal guardian, or any family member with whom the employee resides. e. The absence is due to a job-related injury. 4.2.8 General Provisions. To qualify for sick-leave pay, the employee must notify OCSD at or in advance of the time the employee is scheduled to report for duty. Minimum charge to the employee's sick-leave account shall be one-half (.5) hour and thereafter in one-half (.5) hour increments. 4.2.9 Human Resources, along with the division management, shall be responsible for control of abuse of the sick-leave privilege. If notified in advance by a manager or supervisor, the employee may be required, at any time, to furnish a certificate issued by a licensed physician or nurse, or other satisfactory evidence of illness; however, for absences of ten (10) consecutive working days or more, a request for leave and a medical statement, on prescribed forms, stating expected date of return must be submitted to Human Resources. Upon return to work, a written doctor's release must be submitted to Human Resources. For absences of one or more working days in an unpaid status, a request for leave and a medical statement, on prescribed forms, stating expected date of return must be submitted to Human Resources. 4.2.10 If the need for leave is due to the employee's serious health condition, as defined in the Family and Medical Leave Act ("FMLA") or the California Family Rights Act ("CFRA"), the certification requirement shall comply with provisions of these Acts. 4.3 Personal Leave. Personal leave is provided to allow employees time off with pay for vacation, personal business and non-job-related illness or injury. Personal leave is accrued by full-time employees for all paid hours, including hours actually worked and hours in a paid-leave payroll status, on a biweekly basis as follows: Personal Leave Hours Biweekly Annual Years of Service 0 through 1 2.31 80* 2 through 4 5.38 140 5 through 10 6.92 180 11 7.23 188 12 7.54 196 13 7.85 204 14 8.15 212 15 and over 8.46 220 *Only 60 hours may be taken in the first year; the 20 additional hours shall be credited to the accrual balance following successful completion of one year's service. Regular part-time employees accrue personal leave on a pro-rated basis according to OCSD Policy D51.00. 4.3.1 Scheduled Time Off. Management shall make a reasonable effort, considering the operational needs of OCSD, to accommodate all employee requests for personal leave. Personal leave off should normally be requested at least two weeks in advance to increase the likelihood of submitted dates being approved. However, in the event unforeseen circumstances prevent such advance notification, employees may request scheduled time off with as little as one day's notice. Preference among employees who request time off at least six months in advance shall be based on seniority. Requests received less than six months in Page 4 of9 BookPage23 r r r L L I L L t L, advance shall be scheduled in the order received. Personal leave may only be reported in one-half (.5) hour or one-hour increments. 4.3.2 Unscheduled Time Off. Personal leave that is classified as unscheduled time off provides income protection to an employee who is unable to work due to the following: 4.3.3 4.3.4 a. The employee is physically or mentally unable to perform his or her normal functions due to illness, injury, or a medical condition. b. The absence is for the purpose of obtaining professional diagnosis or treatment for a medical condition of the employee or the absence is due to medical and dental office appointments of an employee when approved by the employee's supervisor. c. The absence is for other medical reasons of the employee, such as pregnancy or obtaining a physical examination. d. The absence is for the care of the employee's parent, father-in-law, mother- in-law, brother, sister, spouse, domestic partner, child, step-child, grandchild, grandparent, legal guardian, or any family member with whom the employee resides. e. The absence is due to a job-related injury. Unscheduled time off must be accounted for by completion of an Unscheduled Time Off Report upon the employee's return to work. Employees may be required to submit medical documentation for their injury or illness. It is the responsibility of OCSD management to control the potential abuse of unscheduled time off privileges. Tardiness less than 15 minutes shall not be deducted from the employee's pay, but numerous occurrences will be addressed through the progressive discipline procedure. Tardiness of one hour or more shall be considered an unscheduled occurrence. An employee's attendance record shall be reviewed with an employee after five separate occurrences of unscheduled time off to address problems that could potentially lead to disciplinary action. • The accumulation of the sixth and seventh occurrence within a calendar year shall result in a verbal warning. • The eighth occurrence shall result in a written warning. • Employees who are charged with ten occurrences of absence within a twelve-month period shall be subject to termination. • Absences of multiple consecutive days involving the same injury or illness shall be considered a single occurrence. OCSD also has the right to discipline employees on the basis of total absences away from work. Employees must notify their supervisor prior to the start time of their shift when they are unable to report for work. Employees returning from an extended leave should notify their supervisor as soon as possible to facilitate personnel scheduling. Human Resources, along with the division management, shall be responsible for control of abuse of the unscheduled leave privilege. The employee may be required, at any time, to furnish a certificate issued by a licensed physician or nurse, or other satisfactory evidence of illness; however, for unscheduled absences of ten ( 10) consecutive working days or more, a request for leave and a medical statement, on prescribed forms, stating expected date of return must be submitted to Human Resources. Upon return to work, a written doctor's release must be submitted to Human Resources. For absences of one or more working days in an unpaid status, a request for leave and a medical statement on prescribed forms, stating expected date of return must be submitted to Human Resources. Page 5 of9 Book Page 24 4.3.5 Personal Leave and Workers' Compensation Leave. Employees who are injured in the course of their employment are placed on Workers' Compensation Leave, and receive wage loss benefits to which they are entitled under the Workers' Compensation Act. Employees may request to receive prorated Personal Leave pay to supplement their Workers' Compensation payments in an amount such that the sum of both is equal to the employee's regular base pay. 4.3.6 Personal Leave Payoff. Employees (or their estate) who separate, retire or die shall be paid in full at their current rate of pay for all Personal Leave hours accrued. 4.3. 7 Maximum Accrual. Employees may have a maximum accumulation of 400 hours of Personal Leave as of the last day of the final pay period in December of each year. In the event an employee accrues personal leave in excess of 400 hours, it must be used prior to said December date, all other remaining hours in excess of 400 will be paid to the employee in the first pay period in January at the employee's then current hourly rate of compensation. 4.3.8 Sick Leave Bank. Employees who elected to bank sick leave accrued prior to the implementation of Personal Leave provisions may elect to use such time off for absence due to a bon fide illness, injury, or pregnancy, or to attend to the illness or injury of an immediate family member. Employees who retire or die shall be paid at the 50 percent rate for all Banked Sick Leave hours; an employee who separates shall be compensated for Banked Sick Leave as follows. Banked Sick Leave Hours Rate of Payoff 0-100 0 percent 101 -240 25 percent 241 -560 35 percent Over560 50 percent 4.3.9 If the need for leave is due to the employee's own serious health condition, as defined in the Family and Medical Leave Act ("FMLA") or the California Family Rights Act ("CFRA"), the certification requirement shall comply with the provisions of these Acts. 4.4 Jury Duty Leave. Any full-time, including probationary, employee who is called for jury duty shall be entitled to his/her regular pay for those hours of absence due to performance of the jury duty for a period up to twenty-two (22) working days. 4.4.1 Prior to jury duty service, each employee must complete OCSD's Leave-of- Absence Form and submit it to Human Resources with a copy of the summons. To be entitled to receive regular pay for such jury leave, employees must report for work during their regularly scheduled work shift when they are relieved from jury duty service, unless there is less than one-half (½) of their regular shift remaining. Employees are not compensated for jury duty occurring on scheduled days off. 4.4.2 An employee serving jury duty must obtain an attendance slip from the court to be submitted to Payroll with his/her time sheet in order to be eligible for regular pay for those hours of absence due to jury duty. 4.5 Witness Leave. Any full-time, including probationary, employee who is required to be absent from work by a subpoena properly issued by a court, agency or commission legally empowered to subpoena witnesses, which subpoena compels his/her presence as Page 6 of9 Book Page 25 l L a witness, except in a matter wherein he/she is named as a defendant or plaintiff or as an expert witness, shall , upon request on Leave-of-Absence Forms approved by Human Resources, be entitled to the time necessary to comply with such subpoena. An employee's regular pay will be reduced by the amount of witness leave pay received, exclusive of mileage. 4.5.1 An employee so subpoenaed must submit a copy of the subpoena with his/her time sheet in order to be eligible for pay for such absence. To be entitled to receive regular pay for such witness leave, the employee must report for work at OCSD for time not actually retained on witness service of one (1) hour or more prior to and/or upon completion of each day's service, exclusive of travel time. 4.6 Military Leave. A request for military leave shall be made upon Leave-of-Absence Forms approved by Human Resources and shall state the date when it is desired to begin the leave-of-absence and the date of anticipated return. A copy of the orders requiring such military service shall be submitted with the request. 4.7 4.6.1 Provisions of the Military and Veterans Code of the State of California, Sections 395-395.5 shall govern military leave. In general, current law provides that an employee having one year or more service with a public entity is entitled to military leave with pay not exceeding thirty (30) days per year if the employee is engaged in military duty ordered for purposes of active military training or encampment. An employee who is required to attend scheduled service drill periods or perform other inactive duty reserve obligations is entitled to military leave without pay, not exceeding seventeen (17) calendar days per year, although the employee may, at his or her option , elect to use vacation or personal leave time to attend the scheduled reserve drill periods or to perform other inactive drill period obligations. Employees who participate in weekend military drill duty are not eligible for leave with pay for such activity, but may have their regular work schedule changed to accommodate the required time off. Bereavement Leave. Using the prescribed forms, approved by Human Resources, any full-time employee, whether probationary or regular, shall receive a maximum of 36 hours off with pay for the death or funeral of an immediate family member. Immediate family member is defined as the employee's father, father-in-law, mother, mother-in-law, brother, sister, husband, wife, domestic partner, child, step-child, step parent, grandchild, grandparent, foster parent, foster child, legal guardian, or any family member with whom the employee resides or who is identified in the employee's Memorandum of Understanding (MOU), if applicable. Employees must submit a leave-of-absence form for approval by the supervisor and Human Resources. 4.8 Administrative Leave. No more than forty (40) hours of administrative leave shall be granted to employees in the Manager Group in any calendar year on January 1st. 4.8.1 Employees who are hired or promoted into the Manager Group shall be granted administrative leave on a pro-rata basis in accordance with the following schedule: Percentage of Leave Month of Hire/Promotion Granted January -September 100% October -December 50% 4.8.2 Administrative leave shall only be used in full day increments. 4.8.3 Any unused administrative leave, within the calendar year granted, will not be carried over to the next calendar year. 4.8.4 Any unused administrative leave, within the calendar year granted, is not subject to cash out or eligible for any mandatory payout. Page 7 of9 Book Page 26 4.8.5 Employees who cease to be part of the Manager Group for any reason will not receive payment of any unused administrative leave. 5.0 PROCEDURE 6.0 EXCEPTIONS 6.1 Section 4.1, Vacation, including Subsection 4.1.1 of this policy does not apply to employees covered under the provisions of Personal Leave in the Operations and Maintenance Memorandum of Understanding and employees in the Confidential Group. 6.2 Section 4.2, Sick Leave, including Subsections 4.2.1 through 4.2.8, of this policy does not apply to employees covered under the provisions of Personal Leave in the Operations and Maintenance Memorandum of Understanding and employees in the Confidential Group. 6.3 Section 4.3, Personal Leave, including Subsections 4.3.1 through 4.3.9, of this policy applies only to those employees covered under the provisions of Personal Leave in the Operations and Maintenance Memorandum of Understanding and employees in the Confidential Group. 6.4 Section 4.8 of this policy, Administrative Leave, including all associated subsections, applies exclusively to employees in the Manager Group. 6.5 Vacation leave is not accrued for overtime hours worked. 6.6 If any conflict is found to exist between this policy and an existing Memorandum of Understanding, the M.O.U. provision shall prevail. 7.0 PROVISIONS AND CONDITIONS 7.1 Accrued balances of vacation leave, compensatory leave, and personal leave may be cashed out at the employee's request on an annual basis in December of each calendar year. 7.2 Employees may have a maximum accumulation of 200 hours of vacation as of the last day of the final pay period in December of each year. 7.3 In the event an employee accrues vacation leave in excess of 200 hours, it must be used prior to the December date, all other remaining hours in excess of 200 will be paid to the employee in the first pay period in January at the employee's then current hourly rate of compensation. 7.4 Employees are not eligible to schedule vacation leave until the completion of six months continuous service. 7.5 Employees may not maintain a negative balance of vacation, sick, compensatory, or personal leave accruals. Page 8 of9 Book Page 27 l l L 8.0 RELATED DOCUMENTS 8.1 California Labor Code, Section 233 8.2 Local 501, Operations and Maintenance Unit MOU 8.3 Administrative and Clerical Unit MOU 8.4 Engineering Unit MOU 8.5 Technical Services Unit MOU 8.6 Professional Group MOU 8. 7 Supervisor Group MOU 8.8 Personal Leave Unscheduled Time Off Report Form 8.9 Policy B100.00, Employee Separation 8.10 Policy 05~111 ~ ~~rb_je,f&f~ '~lifit& Employee~ Page 9 of9 BookPage28 4.2 Employees may be reimbursed for the following: 4.2.1 Specific, job-related Associate, Baccalaureate, and Graduate degree program courses. 4.2.1.1 Requests for reimbursement of courses above the Bachelor degree level require special approval by the Department Head, Human Resources and the General Manager. Such requests will be subject to a more extensive process, including an analysis to determine the value to OCSD of the proposed courses or degree program. 4.2.2 Specific, job-related courses through accredited colleges or universities. 4.2.3 Specific, job-related courses offered through an institution of study approved by the ED Division. 4.2.3.1 The employee's Division Manager is responsible for determining whether or not the course is "job-related." 4.3 When an employee successfully completes a course with a grade of "C" or better and within the guidelines of this policy, ·OCSD will reimburse the employee for eligible expenses incurred, based on the number of hours worked per week, not to exceed $5,250 per calendar year. Reimbursements are paid through payroll. Examples of eligible and ineligible expenses are: Eligible Expenses • Tuition • Registration fees • Laboratory fees • Parking fees • Health fees • Application fees • Required textbooks and materials per the course syllabus • Supplies required per the course syllabus not to exceed $100.00 per course 5.0 PROCEDURE Ineligible Expenses • Travel • Optional student fees • Doctoral dissertation fees • Masters thesis fees • Supplemental textbook costs • Supplies and materials used for the course and retained by the employee after course completion (i.e., paper, pencils, notebooks, diskettes, etc.) • Graduation or diploma fees 5.1 To participate in the Tuition Reimbursement Program, employees must submit a completed Tuition Reimbursement Application and a copy of the course description which includes the course cost, course start/end date, and number of units for each course to the ED Division or HR Department NO LATER THAN one day prior to the course start date. Tuition Reimbursement Applications received in the ED Division on or after the course start date will not be approved. 5.1.1 The Director of Human Resources (or designee) will sign completed applications. A copy of the approved application will be forwarded to the employee to be re- submitted upon course completion. 5.1 .2 Incomplete applications will be returned to the employee with explanation(s) attached. Page 2 of4 Book Page 30 l L L L L 5.2 Upon course completion, the employee must complete and submit a Request for Tuition Reimbursement along with (1) an official record of the final grade, (2) itemized receipts for eligible expenses, (3) a copy of the course syllabus (if requesting reimbursement for required textbooks, materials and/or supplies) and (4) a copy of the original approved Tuition Reimbursement Application for each course to the ED Division within 60 calendar days following the course end date. 5.2.1 The Director of Human Resources (or designee) will sign completed requests. Copies of the approved request will be forwarded to the employee and submitted to the Accounting Division for reimbursement. 5.2.2 Incomplete requests will be returned to the employee with explanation(s) attached. 6.0 EXCEPTIONS 6.1 If an employee terminates employment or gives notice of termination prior to the completion of a course, no reimbursement will be made. 6.2 This policy does not apply to interns or temporary employees. 7.3 Reimbursement may be authorized whenever the employee's manager and HR Manager (or designee) determines that there is substantial benefit to be derived by OCSD when an employee takes a course that does not meet the requirements of this policy. 7.0 PROVISIONS AND CONDITIONS 7.1 This policy does not apply to student interns or temporary employees. 7.2 7.3 Requests for Tuition Reimbursement received in the ED Division more than 60 days after the course end date will not be approved. Tuition Reimbursement Applications received in the ED Division on or after the course start date will not be approved. 7.3.1 Reimbursement requests must be received by payroll by the second-to-last pay period of the calendar year to be applied to an employee's reimbursement limit for that calendar year. 7.3.2 Reimbursement requests received by payroll on or after the last pay period of the calendar year will be applied to the employee's reimbursement limit for the following year. 7.4 Employees who voluntarily terminate employment with OCSD and received reimbursement through the Tuition Reimbursement Program within 36 months of resignation, shall be subject to the following: 7.4.1 Should an employee voluntarily terminate employment with OCSD 1-12 months after receiving reimbursement, he/she shall repay OCSD 100% of the funds received through this program within the twelve-month period prior to the date of his/her voluntary termination. 7.4.2 Should an employee voluntarily terminate employment with OCSD 13-24 months after receiving reimbursement, he/she shall repay OCSD 66% of all funds received through this program within the twenty-four month period prior to the date of his/her voluntary termination. Page 3 of 4 Book Page 31 7.4.3 Should an employee voluntarily terminate employment with OCSD 25-36 months after receiving reimbursement, he/she shall repay OCSD 33% of all funds received through this program within the thirty-six month period prior to the date of his/her voluntary termination. 7.5 Reimbursement will be at the discretion of OCSD provided the employee meets the criteria specified in this policy. 8.0 RELATED DOCUMENTS 8.1 Fair Labor Standards Act, as amended. 8.2 Sections 127 and 132-J8 of the Internal Revenue Code. 8.3 Tuition Reimbursement Pre-Approval Application 8.4 Request for Tuition Reimbursement Forms Page 4 of4 BookPage32 l L L L L ~ Orange County Policy Number: D120.00 . . Sanitation District Effective Date: April 26, 2006 0GtebeF 24, 2002 Subject: PROFESSIONAL AND TECHNICAL Supersedes: October 24, 2002 MEMBERSHIPS AND FEES NIA Approved by: Lisa L Tomko 1.0 PURPOSE 1.1 This policy provides the guidelines for budgeting, approving and paying of employee membership in professional and/or technical organizations. This program encourages employees to update and maintain professional and/or technical capabilities that are pertinent and beneficial to the Orange County Sanitation District (OCSD). The OCSD ~ will pay the professional and/or technical organization membership fees associated with acquiring and maintaining OCSD District approved memberships. 2.0 ORGANIZATIONAL UNITS AFFECTED 2.1 This policy applies to all ~ OCSD qualifying regular, full-time employees. 3.0 DEFINITIONS 4.0 s..o 3.1 Qualifying Employees -Regular, full-time employees who have completed their initial probationary period. 3.2 Regular Full-time Employees -Employees who regularly work an BO-hour, biweekly, full benefit pay period . POLICY 4.1 The 9istfiet OCSD shall pay for membership fees associated with acquiring and maintaining ~ OCSD-approved professional and/or technical associations that are deemed pertinent and beneficial to the OCSD District and employees. 4.2 All paid membership fees must be budgeted. 4.3 OCSD approved city, county, state and federal technical and professional licenses, certifications and registrations are not eligible for payment through the Professional and Technical Memberships and Fees policy. These reimbursements are processed through the Certification Reimbursement Program. REQUIREME-N+S 5.1 All paid membeFship fees must be budgeted. Page 1 of2 Book Page33 5.2 District OCSD approved city, county, state and federal technical and professional licenses, certifications and registrations are Rot eligible for payment through the Professional and Technical Memberships and Fees policy. These reimbursements are processed ti:irough the Certification Reimbursement Program. 5.0 PROCEDURE 5.1 Budgeting Membership Fees 5. 1.1 Each division shall determine if the requested membership is pertinent and beneficial to the District OCSD and employee. 5.1.2 Membership fees shall be approved and budgeted by each department and/or division prior to payment. 5.2 Processing Membership Fees for Payment 5.2.1 Once budgeted, a payment request voucher and photocopy of the membership invoice shall be forwarded through the General Services Administration Di\'ision to the finance Department for direct payment. 5.2.1.1 The General Services Administration Division shall screen and verify membership approval all payment request \'ouchers. 5.2.1 A photocopy of the membership invoice and an authorized payment request voucher is required for the Finance Department to process the payment request. 5.3 Upon non-approval, a copy of the payment request voucher will be forwarded back to the employee with a status indicating the reason(s) for non-approval. 6.0 EXCEPTIONS 7.0 PROVISIONS AND CONDITIONS 7.1 This policy does not apply to student interns, part-time employees, or temporary employees. 7.2 Payment will be at the discretion of the District OCSD provided the employee meets the criteria specified in this policy. 8.0 RELATED DOCUMENTS 8.1 Policy 0100.00 Certification Reimbursement Program Page 2 of2 BookPage34 within 20 feet of any area designated non smoking; or within 20 feet of a plant process component. Smoking is permitted within OCSD facilities-in all designated areas, parking lots and road'.uays, aml in any open area that is a distance greater than 20 feet from a process area or building. 4.2.2 Failure to comply with the requirements of this policy shall result in disciplinary action, which includes, but is not limited to: 4.2.2.1 Progressive disciplinary action for OCSD employees, which may result in termination for repeated violations. 4.2.2.2 Removal of contractor personnel from an OCSD public building, facility or vehicle and/or termination of the contract. 4.2.2.3 Removal of a member of the general public from the impacted OCSD public building or vehicle. 4.2.2.4 Prohibition from coming on to OCSD sites. 4.3 LOCATING DESIGNATED SMOKING AREAS 4.3.1 All designated smoking areas shall be clearly marked. 4.3.2 All designated smoking areas shall be located outdoors and at least 20 feet from a main entrance, exit, and/or operable window of an OCSD building; within 20 feet of a building ventilation system intake or plant process component. No OCSD employee, contractor, or member of the general public shall smoke any tobacco product in an OCSD public building or vehicle. 4.3.3 Ash trays will be provided where necessary and will be maintained by OCSD. 5.0 PROCEDURE 5.1 Maps of designated smoking areas shall be maintained by the Human Resources Department and the information shall be posted on OCSD's intranet. 5.2 Employees are required to contact their immediate supervisor if there are any concerns regarding this policy. RECORDK-E-E~ A database within the Computer Maintenance Management System (CMMS) shall be implemented to properly mainta-iR-the location of all designated smoking areas at OCSD. 6.0 EXCEPTIONS 7 .0 PROVISIONS AND CONDITIONS 8.0 RELATED DOCUMENTS 8.1 Code of Federal Regulations, Title 49 (Subpart D) 8.2 California Government Code, Sections 7597-7598 8.3 California Labor Code, Sections 6400-6413.5 Page 2 of3 Book Page36 L L 8.4 Policy F41.00, Vehicle Usage 8.5 Policy F70.00, Discipline 8.6 Local 501, Operations and Maintenance Unit MOU 8. 7 Administrative and Clerical Unit MOU 8.8 Engineering Unit MOU 8.9 Technical Services Unit MOU 8. 10 Professional Group MOU 8.11 Supervisor Group MOU Page 3 of3 Book Page 37 r l l L L L I L;:; RESOLUTION NO. OCSD 06-XX AMENDING RESOLUTION NO. OCSD 98-33 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT AMENDING THE HUMAN RESOURCES POLICIES AND PROCEDURES ***************************** The Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: That Exhibit "A" of Resolution No. OCSD 98-33 is hereby amended by amending Policy No. D10.00, Leave of Absence with Pay, set forth in Attachment No. 1, attached hereto and incorporated herein by reference. Section 2: That Exhibit "A" of Resolution No. OCSD 98-33 is hereby amended by amending Policy No. D90.00, Tuition Reimbursement Program, set forth in Attachment No. 2, attached hereto and incorporated herein by reference. Section 3: That Exhibit "A" of Resolution No. OCSD 98-33 is hereby amended by amending Policy No. D120.00, Professional and Technical Memberships and Fees, set forth in Attachment No. 3, attached hereto and incorporated herein by reference. Section 4: That Exhibit "A" of Resolution No. OCSD 98-33 is hereby amended by amending Policy No. F100. 00, Smoking, set forth in Attachment No. 4, attached hereto and incorporated herein by reference. Section 5: That all other terms and conditions of Resolution No. OCSD 98-33, as previously recommended, shall remain in full force and effect. Section 6: That all future amendments to Resolution No. OCSD 98-33 be made by Resolution. PASSED AND ADOPTED at a regular meeting held April 26, 2006. Chair ATTEST: Board Secretary Book Page 38 operational needs from various departments. These changes have been reviewed with and approved by General Counsel's office. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS Resolution No. OCSD 06-xx Exhibit "A" -Appendix A -Records Retention Schedule Exhibit "B" -Appendix B -Record Series Definitions H:\deptlagenda\FAHRIFAHR2006\0406\06.06-22.Retention Schedule.doc Page2 BookPage40 Revised: 8/10198 r r r L L RESOLUTION NO. OCSD 06-XX ADOPTING THE UPDATED RECORDS RETENTION SCHEDULE AND RECORD SERIES DEFINITIONS FOR THE DISTRICT'S RECORDS MANAGEMENT PROGRAM, AND AUTHORIZING DESTRUCTION OF OBSOLETE RECORDS A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ADOPTING THE UPDATED RECORDS RETENTION SCHEDULE AND RECORD SERIES DEFINITIONS, AND AUTHORIZING DESTRUCTION OF OBSOLETE RECORDS, AND REPEALING RESOLUTION NO. OCSD 05-08 WHEREAS, it is necessary to establish a policy to maintain a Records Management Program ("Program") that provides for the identification, access, and protection of all records generated or received by the District; and WHEREAS, said Program ensures that all District records are created, received, maintained, and destroyed in a cost-effective manner, in accordance with operating requirements for District business and applicable statutes and regulations; and WHEREAS, the Board of Directors of District is authorized, by the provisions of California Government Code Sections 60200 through 60204, inclusive to destroy records under certain conditions; and WHEREAS, it is desirable and appropriate to authorize the destruction of records on a routine basis that have been retained for a certain period of time, that are copies of originals on file with the District, or that have been preserved in conformance with all applicable statutes. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1 : Adoption of Updated Records Retention Schedule and Definitions of Record Series. The Board of Directors of District hereby adopts changes to the Records Retention Schedule, set forth in Exhibits "A" and "B" attached hereto and incorporated herein by reference. Section 2: Authorization for Destruction of Records. The destruction of certain records, papers, and documents is hereby authorized, pursuant to BookPage41 California Government Code Sections 60200 et seq., after such records have been retained for the minimum time set forth on the Records Retention Schedule. Section 3: Destruction of Records After Preservation. Any record not expressly required by law to be filed and preserved, may be destroyed at any time after it is preserved in conformance with the requirements of California Government Code Section 60203. Section 4: Destruction of Duplicates. Pursuant to California Government Code Section 60200, any duplicate record, paper, or document, the original or a permanent photographic copy of which is in the files of any office or Department of the District, may be destroyed after confirmation with Records Management that such original or permanent photographic copy remains on file in the District. Section 5: Retention of Records Not Mentioned. All records, papers, and documents not mentioned in this Resolution shall be retained indefinitely. Section 6: Resolution No. OCSD 05-08 is hereby repealed. PASSED AND ADOPTED at a regular meeting held April 26, 2006. Chair ATTEST: Board Secretary Book Page42 IF'" r I l L ORANGE COUNTY SANITATION DISTRICT Date Issued: 11/17/2000 Revision 6 RECORDS MANAGEMENT PROCEDURE MANUAL Exhibit A Revised 4/26/2006 DRAFT Subject: Records Retention Schedule Additions in Gray Italic Changes in Bold 1.1 Introduction It is the policy of the Orange County Sanitation District (OCSD) to maintain a records and information management program that provides for the identification, access and protection of all records generated or received by OCSD in the conduct of OCSD business. Retention Code Record Series Office of Record Media Official Duplicate Citation V H C 100 Abandonment Secretary to Board Paper LO 2 CAGC X of Directors 60203 101 Accident Records Safety & Health Paper 6 CL 102 Accounting Reports Accounting Paper-FIS-2 1 H:/220 103 Accounts Payable Files Accounting Paper-Fi$-7 1 AB474 H:!220 104 Accounts Receivable Accounting Paper-FIS-6 1 X Files 1-1:1220 105 Administrative Records Originating Division Paper 3 1 X Electronic 106 Agenda Reports Secretary to Board EDMS Paper LO 3 X X of Directors Internet 107 Air Quality Files Environmental Paper 5 1 Compliance (ECS) 108 Annexation Files A -Board Secretary Paper LO 1 X X B-Eng Planning Electronic 109 Annual Report, Accounting Paper-FIS-LO 1 X Financial H:!220 110 Annual Report, Originating Division Paner 20 AR CAGC X Operational 60203 111 Association Files Originating Division Paper SU SU 112 Audit Records, Environmental Paper LO 5 Environmental Compliance (ECS) 113 Audit Records, Financial Accounting Paper-FIS- H:1220 CL+6 CL AB474 X 114 Audit Records, Internal Originating Division Paper 3 1 115 Banking Records Accounting Paper-FIS-6 1 f·{:/220 116 Bids, Awards, Sole Contracts, Purchasing H:ldept 230 CL+6 1 Sources & Materials Mgmt internet 117 Bids, Board Review Secretary to Board Paper CL+6 1 Required, Awarded of Directors 118 Bids, Board Review Secretary to Board H:ldept 230 CL+6 1 CAGC Required, Unawarded of Directors internet 60201(d) 119 Bids, Unawarded Contracts, Purchasing Pape, CL+6 1 CAGC & Materials Mgmt 60201(d) Page 1 of 7 Book Page43 Retention Code Record Series Office of Record Media Official Duplicate Citation V H C 120 Biosolids Management Environmental Paper Elect 5 1 40 CFR Records Assessment (EAD) H: & N: Drive 503.17 121 Board Administration Secretary to Board Paper 2 1 Files of Directors 122 Bonds, Revenue Accounting Paper EX+2 EX X X 123 Budget Files, Approved Accounting Paper-FIS-6 1 f-i:1220 124 Budget Files, Accounting Paper-FIS'.-1 1 Preliminary H:/220 125 Cash Receipts Accounting Paper-Fis-4 1 H:1220 126 Certificate of Insurance Contracts, Purchasing Paper EX+2 1 X & Materials Mgmt 127 Certificate of Insurance, Secretary to Board Paper EX+2 1 X Board Approved of Directors 128 Chain of Custody Environmental Paper 10 1 Records, Laboratory Sciences Lab 129 Chain of Custody, Source Control Paper CL+3 1 Source Control 130 Check Registers Accounting Fape1-F!S-7 1 AB474 H:/220 131 Check Requests Accounting Papff 4 1 132 Checks, Cancelled Accounting Paper 2 1 133 Checks, Copies Accounting Paper 2 1 134 Chemical Inventory Originating Division Paper 2 1 Records 251 City/County Utility Engineering Paper 15 1 Requests Planning & Design 135 Claim Files Accounting/Risk Paper-FIS-CL+6 1 CAGC X X Management H:l22D 60201(d) 136 Complaint Files Originating Division Eic'!ClYOf1ic 2 1 137 Compliance Records Originating Pap0r 5 1 Division Electronic 138 Computer Maintenance Information Paper 2 1 TBpc.:: Technology Electronic 139 Computer System Information P,1per 2 Administration Records Technology Electronic 140 Confined Space Safety & Health Peper 3 1 8CCR Records 5156-5159 CAEC 141 Conflict of Interest Secretary to Board Paper 4 4 17001, CA Filings of Directors GC 81000(e) 142 Contracts/Agreements Purchasing Pt,per CL+6 CL X Originating Div 143 Contracts/ Agreements, Secretary to Board Paper CL+6 1 X X Board Approval of Directors Page 2 of 7 Book Page44 Retention Code Record Series Office of Record Media Official Duplicate Citation V H C Crane Inspection 8 CCR 144 Originating Division Paper 4 1 5022(d), 8 Records CCR 5031 145 Deferred Compensation Workforce Support Paper LO 1 X Records Services 146 Delegation of Authority Originating Paper 10 1 X Records Division Electromc 147 Delivery Receipts Contracts, Purchasing Paper 4 1 & Materials Mgmt 252 DOT Random Drug & Safety & Health Paper 5 1 49 CFR X Alcohol Test Records 382 148 Drawings, Field Markup Engineering Paper CL+6 RE X X (As Built) Planning & Design 150 Drawings, Bid Set Engineering Paper CL+6 RE X Planning & Design 248 Drawings, Conformed Engineering EDMS ss RE X X Planning & Design Paper 249 Drawings, Record Engineering EDMS LO RE X X Planning & Design Paper 151 Drawings, Shop Engineering Paper LO RE X Planning & Design 254 E-mail Backup Tapes Information Elect10nic 3 weeks RE Technology 152 Easements Secretary to Board Paper LO 1 X X of Directors 153 Employee Benefit Plans Workforce Support Paper TE+7 1 and Program Files Services 154 Environmental Impact Engineering Paper LO 1 X Report Planning & Design EDMS 155 EOC Activation Records Safety & Health Paper CL+2 CL X 156 Equipment Maintenance Originating Division Paper LE 1 Records 157 Equipment Ownership "1cch:micsl frllalnL & Pa~r, EDMS LO 1 O&MUbra')' COROM 158 Expense Reports Accounting Paper-FIS· 7 1 AB474 H:1220 159 Financial Planning Accounting Paper-FIS-2 1 Records H:/220 I 160 Financial Statements Accounting Paper-FIS-10 1 H:/220 161 Fixed Asset Records Accounting Paper-FIS-10 1 X H:/220 162 Flow Records Originating Division Paper LO 2 L 163 Formation Files Secretary to Board Paper LO 1 CAGC X X of Directors 4700 164 General Ledger Accounting Paper-FIS-LO 1 X H:/220 165 Grant Recotds and TS/ADM/N/L&G Paper CL+A 1 X Agreements - Page 3 of 7 Book Page 45 Retention Code Record Series Office of Record Media Official Duplicate Citation V H C 166 Grievances/Complaints Employee & Labor Paper CL+2 CL X Records Relations 167 Hazardous Waste Safety & Health Paper 3 1 22 CCR Records Electronic 66262 168 Historical Subject Files Communications Paper LO 1 X Administration 169 1-9 Forms Workforce Support Paper TE+3 TE 8 USC Services 1234A 29CFR 170 Incident Records Originating Division Paper CL+7 CL 1904.2, 29 CFR 1904.6 171 Industrial Hygiene Files Safety & Health Paper TE+30 3 172 Inspection Records, Construction Paper CL+6 1 Construction Daily Management Expedition 173 lnpection records, Construction Paper LO 1 Construction Specialty Management 174 Inspection Reports, Collection Facilities CMMS 10 1 Manhole Maintenance 175 Insurance Policies Accounting Paper LO EX 176 Investment Records Accounting Paper-FIS-SA+6 SA H:1220 246 IT Backup Tapes Information Electronic 3 SU X Technology 177 Job Descriptions Workforce Support Paper Jnrranec CL+10 CL Services Intemer 178 Journal Entries Accounting FfS-H:!220 6 1 179 Laboratory Records Environmental Paper 10 2 Sciences Lab 253 Laboratory Data Backup Environmental E!ectronfc 10 SU Dates Sciences Lab LIJl!!SITaoe 180 Legislation Files TA!/idmin!L&A Paper 3 1 Electrooi:: H:Dr 243 Line Maintenance Files Collection Facilities Electronic LO AR Maintenance H:!Dr 181 Litigation Files Records Paper CL+6 CL CAGC X Management 60201(d) 182 Logs (Diaries) Originating Division Paper CL+6 CL+2 183 Logs, Control Center Operations -Plant 1 Paper CL+30 Cl X &2 184 Master Plans/Strategic Secretary to Board Paper SU+10 1 OCSD X Plans of Directors RES 98-16 185 Material Safety Data Safety & Health r:-aper TE+30 1 X Sheets Electronic 29CFR 186 Medical Files Safety & Health Paper TE+30 1 1910.1001, X 8CCR 3204 187 Meeting Minutes, Originating Division Paper-Internet• 2 1 X X Administrative E!ectronic Page 4 of 7 BookPage46 Retention Code Record Series Office of Record Media Official Duplicate Citation V H C 188 Meeting Minutes, Board Secretary to Board Paper-Jnternet-LO 1 CAGC X X of Directors Electronic 60201(d) 189 Meeting Minutes, Board Secretary to Board Paper-Internet LO 1 CAGC Committees of Directors Elec1ra11Jc 60201(d) 190 Monthly Reports Originating Division Paper-Intranet 2 AR Electronic 191 Operating Journals Originating Division Paper 2 1 192 Operating Records Originating Division Paper 5 AR Electromc 193 Opinions Secretary to Board Paper LO 1 X of Directors 194 Ordinances Secretary to Board Paper LO SU CAH&S X X of Directors 6491.3 195 OSHA Compliance Safety & Health Paper SU SU X Records 196 Payroll Records Accounting Paper-FIS-7 1 29 CFR, X H:/220 516.5 197 Permits Originating Division Paper EX+1 1 198 Permits, AQMD Environmental Paper EX 1 X Compliance (ECS) 199 Permits, Building and 0 igmatmg Paper LO CL+6 CAH&S Construction Division 19850, 158 Permits, Encroacf,n1ent Engmee1ir1g Paper CL+6 1 P~D 200 Permits, NPDES Secretary to Board Pape, 10 SU 40 CFR X of Directors 125.30(h) 201 Permittees Files Source Control Paper CL+3 1 202 Personnel Files Workforce Support Paper JDE TE+7 TE 29 CFR X Services 1627.3 203 Petty Cash Records Accounting Paper 4 1 204 Policies/Procedures Secre aryto Paper SU+10 SU X Administrative General Manage r Intranet 205 Policies/Procedures, Mechanical Maint. & Paper SU+10 SU X Manuals, SOP -0& M O&M Library 247 Problem Reports for Collection Facilities Paper 6 AR Collection Systems Maint. O&M Library 206 Project Files Originating Division PaperED ,S CL+6 CL X Electronic H:Dr 207 Proof of Publication, Secretary to Board Paper LO 1 Ordinances of Directors 245 Public Comment Files Originating Division Paper 2 CL L 250 Public Record Requests Records Paper LO CL X Management 208 Public Relations Communications Pape, SU 1 Records Administration 209 Publications Communications Paper SU 1 X Administration 210 Purchase Order Files Contracts, Purchasing JDE CL+6 CL (OA and OB) & Materials Mgmt 256 Purchase Order Files Contracts, Purchasing JDE CL+2 CL (OP and OS) & Materials Mgmt Page 5 of 7 Book Page47 Retention Code Record Series Office of Record M~dia Official Duplicate Citation V 1t C 211 Purchase Requisition Contracts, Purchasing Paper CK+6 CL Files (OA and OB) & Materials Mgmt 257 Purcahse Requisition Contracts, Purchasing Paper CL+2 CL Files (OP and OS) & Materials Mgmt 212 Rate Advisory Secretary to Board Paper 3 1 Committee Records of Directors 213 Real Estate Records Secretary to Board Paper SU 1 X of Directors 214 Recorded Documents Secretary to Board ,Paper LO 1 X X of Directors 215 Records Destruction Records Paper LO 1 Certificates Management 216 Records Management Records Paper 3 1 Files Management Image 200(i 217 Records Retention Records Paper SU+10 1 X Schedules Management fnraoet 218 Recruitment Records Workforce Support Paper /ntr,uK,i CL+2 CL 29CFR Services C/VJCA 1627.3 219 Reference Files Originating Division Paper SU SU Electronic 258 Reporis. Design Engineering Paper LO 1 Planning 8. Design 220 Reports, Financial Accounting Papei. FIS-4 1 f-!:/220 221 Reports, General Originating Division Paper 3 1 Electronic 222 Reports, Technical Originating Division Paper SU 1 Efectronic 244 Research/Reference Originating Division Paper AR AR X Materials Electronic 223 Resolutions, Board Secretary to Board Paper Jnteme, LO SU X X of Directors Efer::troni~ 224 Risk Management Accounting/Risk Paper-FIS-CL+5 1 Reports Management /-i:1220 225 Salary Deduction Workforce Support Paper TE+7 1 X Records for Benefits Services 226 Security Clearance Information Technology/ Eiectroniu TE+3 1 Records, Computer Human Resources Paper 227 Sewer Line Records Engineering Paper SU SU X Planning & Design Electronic Video 260 Sewer Line Videos O&M Vid€:O LP' 228 Software Application Information Paper LO 1 Files Technology Electronic 229 Specifications Secretary to Board Paper LO 1 of Directors 230 Speeches/Presentation Originating Division Elect1anic 3 1 X J-l:Dr 231 Subject Files Originating Division Paper AR AR 232 Submittals/Design Engineering Paper SU SU Planning & Design EDMS 233 Tax Records, Employee Accounting Paper-FIS--CL+4 1 29CFR X f-!:/220 516.5 Page 6 of 7 BookPage48 [ l l L L L Retehtion Code Reco11d Series Office of Record Media Official Duplicate Citation V H C 235 Training Records Emp. Development Paper 3 CL Safety and Health Electronic 234 Tax Records, Vendor Accounting Paper-FIS-CL+6 1 26CFR H:/220 1.6041.1 237 Travel Records Originating Division Paper 7 1 AB474 238 Trial Balance Records Accounting Paper-FIS-3 1 H:/220 239 Underground Storage ECS Paper LO 1 23CCR Tanks Files 2772 255 Video Surveillance Information Electronic SU+3 SU Tapes Technology Video months 240 Warehouse Records Contracts Purchasing & Paper CL+2 1 Materials Mgmt 241 Wastehauler Files O&M & Source Paper 3 1 Control 242 Work Orders Originating Division Electronic CL+10 CL CMMS 252 Workers Compensation Safety & Health Paper TE+30 CL X Files RETENTION PERIOD EVENT Code: All retention periods are listed in years (unless otherwise specified) and are in addition to the c1,1rrent ye~u. Life of LO Organization, Closed, LP Plant, Sale, AR Annual Review CL Completed LE Equipment SA Disposition SU Superseded Closed Plus Terms of the C/+A Agreement SettlemenUP AU After Audit EX Expired RE Revised ST/PD aid TE Termination V Vital H Historical C Confidential Page 7 of 7 Book Page49 [ r ' [ [ L L L. Record Series with Definitions ORANGE COUNTY SANITATION DISTRICT Appendix B RECORDS MANAGEMENT Date Issued: 11/17/2000 PROCEDURE MANUAL Revision: 6 Revised: 04/26/2006 Exhibit B Subject: Record Series with Definitions Additions in Gray Italic Changes in BOLD 1.1 INTRODUCTION It is the policy of the Orange County Sanitation District (OCSD) to maintain a records and information management program that provides for the identification, access and protection of all records generated or received by OCSD in the conduct of OCSD business. RECORD SERIES WITH DEFINITIONS 1100 I jAbandonment Records regarding abandonment, condemnation, i demolition, or relocation. [10·1- i Accident Records Records related to accidents during which OCSD property is damaged. Does not include records on employee injury. 1102 \Accounting Reports !Reports summarizing accounting transactions. r !Accounts Payable Files Records relating to payment of financial obligations (money owed by the organization). Includes vendor and I contractor invoices, bills, statements and any non- discharged debt. !104 ! !Accounts Receivable r=rds related to accounting for money owed to the ' IFiles nization includes user fees. r /Administrative Records Records of a general nature including copies of memos, letters, chronological files, calendars, day timers, phone messages, etc. that pertain to general administrative activities and duties of the Division. r !Agenda Reports Records related to information provided to an official Board of Directors or board committee for consideration I and action at official proceedings of the board committee including board agendas. 107 IAir Quality Files ,. Records related to South Coast Air Quality Management I District (AQMD) regulations, emissions monitoring and violations. 108 !Annexation Files r ~cords regarding the annexation of property to the rganization. I A) Final with Board approval B) Back up information JAnnual Reports, Financial !Records relating to the published annual financial reports, describing the financial status of the organization. --- H:\dept\agenda\F AHR \F AHR2006\0406\06.06-22.Retention Schedule-Exhibit R doc Page 1 4/6/2006 1 Book Page 50 Record Series with Definitions [110 Annual Reports, Records relating to the published annual technical and Operational operational status and performance reports of the organization. r -r ssociation Files Records related to membership or the activities of professional or industry associations of which the I '' organization is a member or has a business interest. F2 !Audit Records, r ecords documenting the review of compliance activities !Environmental with established environmental quality standards. I Audit Records, Financial Records relating to the review and monitoring of any accounting or financial records to ensure compliance with GAAP standards and the organization's procedures. [114 Audit Records, Internal Records related to internal reviews of OCSD activities to ensure compliance with procedures and standards. Does not include financial or environment audit records. !!Banking Records !Records related to bank transactions including deposit of ~unds, bank statements, bank reconciliation's, and wire und transfers. I Bids, and Sole Sources, The successful proposals submitted by vendors to obtain Awarded contracts with OCSD, where OCSD selects that bid or proposal. Includes bid packages and sole sources. r Bids, and sole sources, !The successful proposals requiring board approval, Board Review Required, submitted by vendors to obtain contracts with OCSD, Awarded !where OCSD selects that bid or proposal. Includes bid I packages and sole sources. ~!Bids, Board Review Proposals, requiring board approval, submitted by Required, Unawarded vendors to obtain contracts with OCSD, where OCSD j(ReJQctedJ does not award that bid or proposal. Includes bid packages. I 'Bids, Unawarded The unsuccessful proposals submitted by vendors to obtain contracts with OCSD, where bid is not awarded to that vendor. Includes bid packages_ j120lBiosolids Management i Records [Records related to biosolids hauling, use, and EMS iactivities. j""i21" !Board Administrative Records relating to board members, appointments to the Files board/ directors list. r Bonds,Revenue f~onds, revenue records rel ating to interest bearing certificates (negotiable instruments) issued by OCSD to r aise revenues, including certificates of participation and any non-<lischarged debt. 123 Budget Files, Approved Records relating to internal planning and financial management. Includes budge vs. cost reports, summaries, worksheets, goals and objectives and milestones. ~ Budget Files, Preliminary Records related to projected income and records that are "working copies" preliminary worksheets and drafts I developed in preparation of a budget of authorized expenditures. )1251Cash Receipts !Records related to cash payment received. H:\dept\agenda\F AHR \F AHR2006\0406\06.06-22.Retention Schedule-Exhibit B.doc Page 2 4/6/2006 2 Book Page 51 Record Series with Definitions r 143 Contracts/ Agreements, Records relating to obligations defined in contracts and Board Approval Required agreements requiring board approval. Includes promissory agreements, contracts and pending contracts for services, leases and software licenses. ---144 !Crane Inspection Records related to periodic inspection, annual Records certifications, quadrennial proof load test reports, and I permit to operate cranes and derricks. !145jDeferred Compensation !Records of employee contributions and OCSD payments. r Delegation of Authority Records specifying the person(s) having the temporary Records authority to approve specified activities or documents during the absence of the individual normally authorized to perform the activities or approve documents. i147 !Delivery Receipts Records documenting receipt of shipped items. May include delivery shipment receipts and registered mail receipts which may be filed with Purchase Orders. 1252 DOT Random Drug & Records of tests done by outside contractor in I Alcohol Test Records compliance with DOT required Random Drug & Alcohol ' Testing 148 Drawings, Field Markup Records that graphically depict specifications. Copy of (As-Built) conformed drawings marked up by contractors and/or inspectors during construction to show how facility or component is actually constructed. ~fDrawings, Bid Set Documents l/St1alfy including advertisement or invitation to bidders, instructions to bidders, bid form, form of contract, forms of bonds, conditions of contract, specifications, drawings, addenda and any other information necessary to completely describe the work by which candidate conscructors can adequately prepare !proposals or bids for consideration. 1248 !Drawings, Conformed Set All tlrn written and graphic doc11ments concerning I execution of a particular construction contract These include the agreement between the owner and the contractor, all conditions of the contract including general and supplementary conditions. the specifications and drawings, any changes to the specifications and drawings, any changes to the original contract and any other items specifically itemized as being part of the contract documents. r Drawings, Record Construction documents Llpdated to show the progress of the work, usually based on data furnished by the contractor to tile designer. Record Drawings shall be s am edb a professional enr:ineer. p y ~ !Drawings, Shop jorawings created by a contractor, subcontractor, vendor, 1manufacturer, or other entity tl1at if/11strate construction. 1materials. dimensions, installation an other pertinent vnformation fo he incorporation of an element or item iinto the con truction. r:-·----------1254 E-mail Back up Tapes IE-mail messages on the Exchange Server ~ rEasements --r ecords relate~ to the right of access to, and I I maintenance of, sewer related properties. --------------- H:\dept\agenda\FAHR\FAHR2006\0406\06.06-22.Retention Schedule-Exhibit B.doc Page 4 4/6/2006 4 Book Page 53 r r r ,- ' r r l L J L r ' L L L Record Series with Definitions r JEmployee Benefit Plans iand Program Files I Records related to all employee benefits plans, and programs including health insurance, tuition reimbursement, thrift plans, beneficiary designations, eligibility. ! ...... -,Environmental Impact jRecords, internal and external, used to prepare the draft Report land final EIR published by the District and EIRs submitted from outside sources for review by the District. r,iss 1 1ss IEOC A-ct-iv_a_t-io_n_R_e_c_o-rd-s-~iRecords related to documenting activit-ie_s_o_f -em-e-rg_e_n_c_y_ 1operations center (EOC) during a declared emergency. Records !vehicles (excluding crane records) includes daily r Equipment Maintenance !Records regarding maintaining OCSD equipment and !maintenance reports, service checklist, preventative maintenance schedules, service logs and test records. 157 Equipment Ownership Records related to ownership of equipment including correspondence, drawings, operating instructions, warranties and registrations. r58 !Expense Reports --jRecords relating to the reimbursement of District !employees, Members of the Board of Directors, and Contractors for expenses incurred for travel or other jcosts when conducting the organizations business. !159 ____ !Financial Planning Records related to the budgeting and planning of the ! j organizations revenues and expenses. ~ !Financial Statements !Records stating the-f-in-_a_n_c_i_a_l p_o_s_i-ti_o_n_a_n_d_c_o_n_d_i-ti_o_n_o_f_t_h_e 1 l I organization. !161 !Fixed Asset Records 'Records relating to the acquisition, depreciation and l accruals of fixed assets. ;162 !Flow Records -----!Records related to tracking influent and effluent. ~.163--,Formation Files IRecords documenting the terms under which_O_C_S_D_w_a_s_1 ltormed, organized, re-organized or consolidated. ~ !General Ledg_e_r ______ !S_u_m_m-ary of all financial accounts. Records relating to j I !the postings to the General Ledger. I Grant Records and Documents related to awarded grants including Agreements applications, agreements. progress & financial reports anc' compliance paperwork 1166 !Grievance -·------,R-e-co-r-ds-in-clude_s_a_r_b-it-ra-t-io_n_b_e_t_w_e_e_n_e_m_p_lo_y_e_r_a_n_d __ _ iemployee, grievances, union requests, employee rights, I !employee rights information, appeals, sexual harassment I information and civil rights information. 1 167.-,H-a-z-ar_d_o_u_s_W_a_st_e ____ jRecords regarding the storage, transportation, or Records !handling of hazardous waste. 168 Historical Subject F-ile_s __ ~ords retained for the life of the organization due to r enduring value, rather than solely for business or gal purposes. Records that document the origination, !significant events, and strategic planning of the 1organization. 169 tg Forms Forms required by the federal government under the requirements of the Immigration Reform/Control Act of 1986. H:\dept\agenda\F AHR\F AHR2006\0406\06.06-22.Retention Schedule-Exhibit B.doc Page 5 4/6/2006 5 Book Page 54 Record Series with Definitions r r .--172 r i 1175 I i ,- Incident Records Industrial Hygiene Files ---!Inspection Records, !construction Daily 1Progress ilnspection Records, 1Construction Specialty Inspection Reports, Manhole Insurance Policies Investment Records IT Backup Tapes Includes records regarding unscheduled maintenance, or deliberate property damage such as theft, arson, vandalism, or other loss of OCSD assets. Does not include safety organizations' accident reports. rReports and documentation prepared by staff and !certified industrial tiygienist; includes ergonomics of the workplace, air sampling, noise testing, and workplace 1contaminants. Records related to inspection of the daily progress of construction activities to ensure quality and compliance with specifications and standards. Records relates to specialty inspection of construction activities to ensure compliance with specifications. !includes welding, vibration analysis, soils analysis and tile driving inspections, photos, NETA reports, Jab certificates and coordination studies. Records related to the comprehensive evaluation of the wear condition of the manhole structure including frame and cover replacement records. r ecords related to insurance policies purchased by OCSD, including the policies and any amendments. !Records relating to investments including the purchase of !stocks, bonds or other equities, ownership and account !statements. !computer tapes used for Disaster Recovery purposes 1177 Job Descriptions !Records describing the duties and responsibility of each 1 ~ob position and the expectations for performance. 1178 Journal Entries -----IAccount postings with supporting documentation. ~··--179 Laboratory Records Records related to laboratory activities including data logs, lab equipment maintenance and sterilization, QA and QC records. /253 Laboratory Data Backup i Tapes !Statistical laboratory data housed on the chromium and erbium servers ~ Legislation Files Records regarding local, state and federal legislation, I session bills, annual legislative agenda, lobbying files and I summaries of bills that may affect OCSD's operations or organization. ---1243 Line Maintenance Files !Records of maintenance and inspection of sewer lines. r Litigation Files Records related to possible or actual litigation or government investigations. Includes court proceedings records, pleadings, discovery, work product, exhibits and final judgments. -1182 Logs -:., -'s) A document listing activities, items, individuals and t noting the same information about each entity. Log I entries generally occur in chronological order. I r ;Logs, Control Center Bound notebooks describing activities, items or individuals regarding plant operations. Log entries l generally occur in chronological order. H:\dept\agenda\F AHR\F AHR2006\0406\06, 06-22,Retention Schedule-Exhibit B, doc Page 6 4/6/2006 6 BookPage55 L L L L Record Series with Definitions 1239 jUnderground Storage 1Tank Files jRecords related to the maintenance of underground 1storage tanks. Includes permit. 1255 !Video Surveillance Tapes 'Video surveillance tapes from various security cameras on site at OCSD plants 1240 !Warehouse Records Records related to managing the warehouse, including sales orders, stock out, shipping records, ABC. 1241 'Waste Hauler Files r ecords related to transporting waste to or from OCSD I plants. Includes manifests and waste-hauler schedules. I 1242 !Work Orders Records related to requesting repairs, alterations, improvements, maintenance or other services; records related to the completion of the work requests. j252--!Workers Compensation Records relating to employee work related injuries i --!Files H:\dept\agenda\F AHR\F AHR2006\0406\06.06-22.Retention Schedule-Exhibit B. doc Page 11 4/6/2006 11 Book Page 60 ADDITIONAL INFORMATION N/A ALTERNATIVES NIA CEQA FINDINGS N/A ATTACHMENTS 1. Highlights of PA Program Changes 2. EMT & Mgmt Mid-Year Planner 3. EMT & Mgmt Annual Planner 4. Sample Objectives and Measures 5. Performance Enterprise Form H:ldeptlagenda\FAHRIFAHR2006\0406\06.0&-23.Performance Appraisal System.doc R811ised: 06/04/03 Book Page 62 Page2 r f [ L L Highlights of Changes Being Made In EMT and Mid-Management Forms and Processes: April 4, 2006 I. Evaluations to be conducted on annual and semi-annual basis as opposed to 4x/year. 2. Main Appraisal Form is to be completed by the supervisor and completed once per year. 3. 4. Annual Self-Planner (initiated by employee) has replaced full self-evaluation with existing District form; no scoring is needed; critical ideas in response to four questions provided to supervisor prior to preparation of Annual Appraiser. Use of Self Planner (not available in Performance Now; being used for General Manager) (First Draft Only Shown) Currently, you have to fill out and rate yourself in all of the categories in the Knowledge Point Form. New format will focus on answering a few open-ended questions in Word format. This feature is not available in Performance Now. Mid-Year Planner ( initiated by employee) has several open-ended questions leading to modification of goals as needed. Use of Mid-Year Planner ( allows the employee and supervisor to think about how that goals, objectives, and work methods will be updated given changes in Board priorities, departmental work plans, systems needs (not available in Performance Now: being used for General Manager) 5. Length of Performance Preparation Calendar Cycle will be shortened; current 10 week cycle to be replaced by 6 to 8 week cycle given time savings through use of Self-Planner; 4 weeks time saving should be achieved with Mid-Year Planner at mid-year cycle. 6. Performance cycle will dovetail with fiscal year as part of a focal point process to have better District-wide planning; annual reviews to be completed in June with payroll changes effective first payroll period in July for regular employees. The Mid-Year Planner is completed in December. 7. The current process requires assignment of ratings as part of sub-definitions of each factor. Only a single rating will be required for each element under new form design. We will be able to retain and refine the sub-definitions for view purposes in writing comments. 8. Although 10 performance elements (factors) for rating purposes is not unusual, we are refining 5 elements so that we can put more attention into the performance goals and measurements, which are more objective. Goal attainment will carry a heavier weighting than the Performance Competencies. 9. We are incorporating major ideas from the Dashboard into the sample goals and objectives of the form. We are asking the Laboratory, Engineering and Human Resources Departments have been providing examples of objectives that will be integrated with the Strategic Plan objectives at the District-wide level. 10. Our training session will focus on areas of concern in using current forms based on feedback provided with more hands-on exercises in assigning ratings, writing comments, setting measures, and coaching employees. Book Page 63 EMT AND MID-MANAGEMENT PERFORMANCE EVALUATION CALENDAR OVERVIEW (BASED ON FOCAL POINT CYCLE) T HE INSTRUMENTS/TIMING WHO IS INVOLVED/PROCEDURES ANNUAL SELF PLANNER Completi,,n and Review: First and Second Weeks of MAY ANNUAL PERFORMANCE APPRAISAL Completion of Draft Reviews and Recommended Increases by Supervisor: Third and Fourth Weeks of MAY Advance Review and Approval of Draft Evaluation and Increases by Manager: First and Second Weeks of JUNE Employee and Supervisor Interviews and Comments To Manager (and HR as needed): Third and Fourth Weeks of JUNE ' Evaluations Filed and Pay Increases Effective First Payroll Period In JULY MID-YEAR PLANNER Completion and Review: First and Second Weeks of DECEMBER Employee initiates and supervisor reviews and identifies goals and areas for individual development. Supervisor prepares the evaluation after reviewing the Annual Self Planner. Supervisor reviews draft evaluation with Manager and addresses any concerns or questions. HR provides latest rating and increase table. Supervisor's key steps are to select goals, weight the goals, and assign the ratings. Any appeals of recommended actions or evaluations can be considered prior to any payroll changes in the first two weeks of July. Employee completes; Manager reviews. Goals, development and accomplishments shared, as well as any modifications of priorities or work plans. 2 Book Page 64 Note To FAHR Committee: This form is completed by the employee. Mid-Manager provides to EMT; EMT provides to General Manager. 2. Suggest at least three new goals, or changes-to existing goals that should be shared with the General Manager and other management representatives in planning for' the new Fiscal Year: 3. Describe what the General Manager, Board of Directors, and/or other members of Management might do to assist you in performing your job more effectively: Mid-Manaqer's Siqnature (in providinq to EMT): Date: EMT Member's Signature (in providing to General Manager): Date: 04/04/06 Draft Version 1.2 Book Page 67 r • u r I i I L ( I L l L. Orange County Sanitation District Performance Review (Performance Enterprise Software) -Draft- Employee Name: Job Title: Department/Division: Employee Number: Review Period Start: Review Period End: Last Review End Date: Reviewer: Reviewer Title: RATINGS Low= High= Does not meet job expectations Marginally meets job expectations Meets job expectations Exceeds job expectations Far exceeds job expectations Current Goals (See Sample For Laboratory/Board and General Manager examples to be integrated from Strategic Planning Process) Section Weight: 60% Performance Competencies Section Weight: 40% A. Organization/Planning/Budgeting Weight: 10% Factor 1 Establishes specific goals, steps, and outcomes. Factor 2 Prioritizes and schedules work activities efficiently. Low Factor 3 Plans for additional resources and balances quantity and quality needs. Factor 4 Works within approved budget and initiates cost savings measures. High Overall • • • • • Book Page 69 1 B. Communications/Interfaces Expresses ideas clearly, orally and in writing. Demonstrates effective listening skills. Uses proper methods to involve or keep others informed. Works effectively with all stakeholders. Overall C. Job Knowledge/Critical Thinking Competency: Job Knowledge Shows understanding of statutes, policies, and goals. Pursues professional education, training and/or certification. Identifies opportunities, problems, and alternative solutions. • • • • • Adopts realistic solutions given understanding ofresources, impacts, and time requirements. Overall D. Managing People Delegates or shares tasks to assure proper workload. Considers current competencies and development needs. Sets expectations and evaluates progress at regular intervals. Provides adequate guidance and recognition for results. Overall E. Leadership Exhibits confidence in self and others. Displays willingness to make difficult and sensitive decisions. • • • • • • • • • • Promotes teamwork and inspires respect and trust by building consensus for actions taken. Displays and encourages original thinking and creativity. Overall • • • • • Low High Summary • • • • • Book Page 70 2 ,. r I Development Plans Future Goals Employee Comments Employee Acknowledgment I have reviewed this document and discussed the contents with my manager. My signature means that I have been advised of my performance status and does not necessarily imply that I agree with the evaluation. Employee Signature/Date Reviewer Comments Reviewer Signature/Date Second Level Reviewer Comments Reviewer Signature/Date 3 Book Page 71 ADDITIONAL INFORMATION Report Process: The monthly report of workers' compensation status will be developed by Safety and Health staff for the Director of Human Resources by the 10th of each month. The report will compare the total incurred value of each claim to its value the previous month. Any changes will be noted and a change in value greater than $7,500 will warrant notice to the Director of Human Resources along with the rationale for the change as provided by the third party administrator, Cambridge Integrated Services. The monthly report will also list all open claims that carried a total incurred value greater than $50,000. Claims which represented potential problems in development will also be highlighted. The identification of these claims is based on staff knowledge of the claimant as well as the type of claim and the recovery pattern expected. This report is designed for visibility only with no expectation of concurrence or objection. The visibility provided can be easily modified to provide similar information to the Board of Directors at the discretion of the Directqr of Human Resources or General Manager. This information should be forwarded to the General Manager at this point. Settlement Process: The current settlement process is derived from whether or not the claim is litigated. All litigated claims are reviewed with legal counsel and the General Manager for settlement concurrence. All non-litigated claims are reviewed by a Safety & Health Specialist for settlement concurrence. A process change for settlement based on type of settlement rather than litigation status is warranted. The Workers' Compensation function should review all settlement proposals. For those settlements structured as a Stipulation within current reserve levels or a Findings & Award, the appropriate concurrence level is the Workers' Compensation function. For those settlements structured as a Stipulation in excess of the current reserve levels or a Compromise & Release, the appropriate concurrence level is the General Manager (or his designee), as these settlements normally involve funds over and above the established reserves. ALTERNATIVES NIA CEQA FINDINGS N/A ATTACHMENTS N/A H:ldept\agenda\FAHRIFAHR2006\0406\06.06-24.Workers' Comp Report Process.doc Revised: 06104/03 Book Page 73 Page2 • -_) ,- r • G ,_ = FAHR COMMITTEE Meeting Date To Bel. of Dir. 04/12/06 04/26/06 AGENDA REPORT Item Number Item Number FAHR0S-25 Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance/Treasurer Originator: Mike White, Controller SUBJECT: ESTABLISHING SPECIFIED REVENUE AREAS GENERAL MANAGER'S RECOMMENDATION Adoption of Ordinance No. OCSD-27, An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Specified Revenue Areas within the District, and Repealing Ordinance No. OCSD-02: a. Motion to read Ordinance No. OCSD-27 by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a unanimous vote of Directors present.) b. Motion to introduce Ordinance No. OCSD-27, and pass to second reading and public hearing on May 23, 2006. SUMMARY Ordinance No. OCSD-02 established specified Revenue Areas, Nos. 1, 2, 3, 5, 6, 7, 11, 13, and 14, within the District. Since the adoption of this ordinance, the Board has approved the consolidation of Revenue Areas No. 1, 2, 3, 5, 6, 7, 11, and 13 into on consolidated revenue area. Revenue Area 14 continues to be fully funded through existing contracts with the Irvine Ranch Water District and it is necessary to maintain separate accounting records in order to accurately charge them for operations, maintenance and capital improvements. Staff is now recommending that Ordinance No. OCSD-02 be repealed and replaced with Ordinance No. OCSD-27, establishing specified Revenue Areas to consist of the Consolidated Revenue Area and Revenue Area 14. PRIOR COMMITTEE/BOARD ACTIONS On April 26, 2000, the Board of Directors approved consolidation of Revenue Areas 1, 2, 3, 5, 6, 11 and 13 beginning with fiscal year 2000-01 into one Financially Consolidated Revenue Area because of the variance in rates and abilities to pay among the Revenue Areas, the previous consolidation of the individual Districts into one District, and a shift in our service paradigm to a regional focus and mission. The consolidation of Revenue Areas simplified the bookkeeping and rate-setting practices for the District. Basically, this change combined the assets and liabilities for these H:ldeptlagenda\FAHR\FAHR2006\0406106,06--25.Ord 27.doc Revised: 06/04/03 Book Page 74 Page 1 seven Revenue Areas into one Revenue Area and allowed for the adoption of one financial plan, including one user fee rate. On November 20, 2002, the Board approved consolidation of Revenue Area 7 into the one Financially Consolidated District. The consolidation of Revenue Area 7 was delayed until this time because the Sanitation District and the Irvine Ranch Water District (IRWD) were in the process of transferring the former Sewer Maintenance District service area from RA 7 to RA 14 in order to establish a single agency as the provider of water and local sewer service, to simplify the public's contact with utility providers and to remove local sewer service from the OCSD responsibilities. This pending transfer of facilities, assets, liabilities and property taxes was the major reason that RA7 was not included in the financial plan and program consolidation of 2000. PROJECT/CONTRACT COST SUMMARY Not applicable. 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) ATTACHMENTS Ordinance No. OCSD-27 H:\dept\agenda\FAHR\FAHR2006\0406\06.06-25.Ord 27.doc Revised: 06/04/03 Book Page 75 Page2 I ' Regulations as a Reenactment of the Regulations Adopted and In Effect By Predecessor Districts. PROJECT/CONTRACT COST SUMMARY Not applicable. 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. IZI Not applicable (information item) ATTACHMENTS Ordinance No. OCSD-28 H:ldept\agenda\FAHRIFAHR2006\0406\06.06-26.Ord 28.doc Revised: 06/04/03 Book Page 84 Page2 lj I r ' . . r- r l r f l [ L ORDINANCE NO. OCSD 01 OCSD- AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ADOPTING WASTEWATER DISCHARGE REGULATIONS AS A RE ENACTMENT OF THE REGULATIONS ADOPTED AND IN ~GT BY PREDECESSOR SANIT,l\TION DISTRICTS, AND REPEALING ORDINANCE NO. OCSD-01 WHEREAS, the Boards of Directors of former County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California (the APredecessGF"Predecessor Districts=], predecessors-in-interest to the Orange County Sanitation District (the ADistriet:::"District"), previously, by duly adopted Ordinances, established Wastewater Discharge Regulations, as authorized by law; and, WHEREAS, the Board of Directors of the District has determined that it is necessary, for the im-mee+ate-preservation of the public health and safety, and in order to continue the provision of sanitary sewer services, to continue the provisions of those Ordinances in effect without interruption; and, WHEREAS, the District is, concurrently-A~established by Ordinance No. OCSD 02 . estabHffiiflgtwo separate revenue areas based upon numerous facteFS;- including but--Aot-+im~ted to, geographiE:al features, Predecessor Districts bouneiaries, drainage areas-:----aAEl--ee~e intention that fees and charges, including aRnexatiOfl-fees-:-Woukl continue at the same rate within a revenue area as existed in-t:Ae P-Fedecess0f---Distnct ffi<Gept to the extent of any individual adjustments based upon ap-preveti--studies--anEI-Feportswith the intention of adopting one financial plan and one user fee for all prior ~evenue areas excludin Revenue Area No. 14 which shall remain full funded throu h G0ntracts with Irvine Ranch Water District; and, TheWHEREAS~ Board of Directors of Orange County Sanitation District does hereby FIND: A. A.---That a comprehensive 30-year Master Plan of Capital Facilities entitled, A-Gol1ec-tion"Collection, Treatment and Disposal Facilities Master Plan -1989", hereinafter the AMa&tef''Master Plan===:, which includes detailed financial and engineering reports, has been prepared, approved and adopted by the Boards of Directors of the Predecessor Districts identifying the required future development of District facilities, including the financial projections for providing sewer service to all properties within the District=:s service areas; and, B. B. That the District is required by federal and state law, including the Clean Water Act (33 U.S.C. 1251, et seq.), the General Pretreatment Regulations (40 C.F.R. 403), and the Porter-Cologne Water Quality Control Act (Water Code Sections 2-0Q0--3001 64070-~ 2162881 BookPage85 13000 et seq.), to implement and enforce a program for the regulation of wastewater discharges to the District=:s sewers; and, C. That the District is required by federal, state and local law to meet applicable standards of treatment plant effluent quality; and, C. D. That the adoption of this Ordinance is statutorily exempt under the California Environmental Quality Act pursuant to the provisions of Public Resources Code Section 21080(b)(8) and California Code of Regulations Section 15273(a). NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: Section 1. Section I: Wastewater Discharge Regulations governing the use of District sewerage facilities are hereby enacted to provide: ARTICLE 1 GENERAL PROVISIONS 101. 4Q.:h-PURPOSE AND POLICY 20B0-30Q2 64070.:..--1 21il2filU A. A. The purpose of this Ordinance is to provide for the maximum C. public benefit from the use of District's facilities. This shall be accomplished by regulating sewer use and wastewater discharges, by providing equitable distribution of costs in compliance with applicable Federal, State and local Regulations, and by providing procedures that will allow the District to comply with requirements placed upon the District by other regulatory agencies. The revenues to be derived from the application of this Ordinance shall be used to defray all costs of providing sewerage service by the District, including, but not limited to, administration, operation, monitoring, maintenance, financing, capital construction, replacement and recovery, and provisions for necessary reserves. ---B~. --This Ordinance shall be interpreted in accordance with the definitions set forth in Section 102. The provisions of the Ordinance shall apply to the direct or indirect discharge of all liquid wastes carried to facilities of the District. To comply with Federal, State, and local policies and to allow the District to meet applicable standards of treatment plant effluent quality, sludge quality, and air quality, provisions are made in this Ordinance for the regulation of wastewater discharges to the public sewer. This Ordinance establishes quantity and quality limits on all wastewater discharges which may adversely affect the District's sewerage systems, processes, effluent quality, sludge quality, air emission characteristics, or inhibit the District's Book Page 86 2090-3006 6407-0~ ~ Categorical Pretreatment Standard, local limit, or other discharge requirement. 11. 15. Composite Sample shall mean a collection of individual samples obtained at selected intervals based on an increment of either flow or time. The resulting mixture (composite sample) forms a representative sample of the wastestream discharged during the sample period. Samples will be collected when manufacturing, processing, or other industrial wastewater discharge occurs. 12. 16. Connection Permit shall mean a permit issued by the governing District, upon payment of a capital facilities connection charge, authorizing the permittee to connect directly to a District sewerage facility or to a sewer which ultimately discharges into a District sewerage facility. --~17-.-RESERVED 14. 18. Cyanide, (Amenable) shall mean those cyanides amenable to chlorination as described in 40 CFR 136.3. 15. 19. Department Head shall mean that person duly designated by the General Manager to direct the Technical Services Department, including the Source Control Division Laboratory and perform those delegated duties as specified in this Ordinance. 16. 20. Development shall mean parcel of land on which dwelling units, commercial or industrial buildings or other improvements are built. 17. 21 . Discharger shall mean any person who discharges or causes a discharge of wastewater directly or indirectly to a public sewer. Discharger shall mean the same as User. 22. District shall mean the Orange County Sanitation District. 23. District Sewerage Facility or System shall mean any property belonging to the District used in the treatment, reclamation, reuse, transportation, or disposal of wastewater, or sludge. 19. 24. Division Head shall mean that person duly designated by the General Manager to implement the District's Source Control Program and perform the duties as specified in this Ordinance. Book Page 90 l t disposal of wastewater to the District's sewerage facilities duly authorized under the laws of the State of California to construct and/or maintain public sewers. 35. 42. Major Violation shall mean a discharge over the permitted discharge limit, as determined by the result of a composite sample analysis, as follows: g), at-a discharge exceeding a mass emission limit by 20% or more, or !;tl bt--a discharge exceeding a concentration limit by 20% or more, or ~ Gj-a pH discharge less than 5.0. 36. 43. Mass Emission Rate shall mean the weight of material discharged to the sewer system during a given time interval. Unless otherwise specified, the mass emission rate shall mean pounds per day of a particular constituent or combination of constituents. 37. -------,----May shall mean permissive. 38. 45 . Medical Waste shall mean the discharge of isolation wastes, infectious agents, human blood and blood byproducts, pathological wastes, sharps, body parts, fomites, etiologic agents, contaminated bedding, surgical wastes, potentially contaminated laboratory wastes, and dialysis wastes. ------L+4e6-. -Milligrams Per Liter (mg/L) shall mean a unit of the concentration of water or wastewater constituent. It is 1 gram of the constituent in 1,000 liters of water. It has replaced the unit formerly used, parts per million, to which it is approximately equivalent in reporting the results of water and wastewater analysis. 2-0Q0-3009 640::Z0=·• 2.16.2aB..1 39. 47. Minor Violation shall mean a discharge over the permitted discharge limit as determined by the result of a composite sample analysis, as follows: g), at-a discharge exceeding a mass emission limit by less than 20%, or !;tl bt--a discharge exceeding a concentration limit by less than 20%, or Book Page 93 ~ Gt-a pH discharge equal to or greater than 5.0, but less than 6.0, or gl dt-a pH discharge greater than 12.0. 40. 48. National Pollutant Discharge Elimination System (NPDES) shall mean the permit issued to control the discharge to surface waters of the United States as detailed in Public Law 92-500, Section 402. 41. 49. New Construction shall mean any structure planned or under construction for which a connection permit has not been issued. 42. 50. New Source shall mean those sources that are new as defined by 40 CFR 403.3(k) as revised. 43. 51. Non-Compatible Pollutant shall mean any pollutant which is not a compatible pollutant as defined herein. 44. 52. Normal Working Day shall mean the period of time during which production or operation is taking place or any period during which discharge to the sewer is occurring. 45. 53. RESERVED 46. 54. Ordinance shall mean that document entitled "Wastewater Discharge Regulations" containing District requirements, conditions, and limits for connecting and discharging to the sewer system, as may be amended and modified. -----5~5t-. -Q!:! shall mean both acidity and alkalinity on a scale ranging from 0 to 1414 where 7 represents neutrality, numbers less than 7 increasing acidity, and more than 7 increasing alkalinity, and is the logarithm of the reciprocal of the quantity of hydrogen ions in moles per liter of solution. 2090-30010 6407-0:J ~ 47. 56. Pass Through shall mean discharge through the District=:s sewerage facilities to waters of the U.S. which, alone or in conjunction with discharges from other sources, is a cause of a violation of the District=) NPDES permit. BookPage94 ( [ I I 48. 57. Permittee shall mean a person who has received a permit to discharge wastewater into the District's sewerage facilities subject to the requirements and conditions established by the District. 49. 58. Person shall mean any individual, partnership, firm, association, corporation or public agency, including the State of California and the United States of America. 50. 59. Pesticides shall mean those compounds classified as such under Federal or State law or regulations including, but not limited to those listed in Section 209.B.4 51. 60. Pollutant shall mean any constituent or characteristic of wastewaters on which a discharge limit may be imposed either by the District or the regulatory bodies empowered to regulate the District. 52. 61. Polychlorinated Biphenyls (PCB) shall mean those compounds classified as such under Federal or State law including, but not limited to those listed in Section 209.B.3 53. 62. Pretreatment shall mean the reduction of the amount of pollutants, the elimination of pollutants, or the alteration of the nature of pollutant properties in wastewater to a level authorized by the District prior to discharge of the wastewater into the District's system. The reduction or alteration can be obtained by physical, chemical or biological process, or process changes by other means. ------e6n3~. -Pretreatment Facility shall mean any works or devices that the General Manager determines are appropriate to treat, restrict, or prevent the flow of industrial wastewater prior to discharge into a public sewer. 2-090--30011 64070::::'1 2..1.6.2.aU 54. 64 . Priority Pollutants shall mean the most recently adopted list of toxic pollutants identified and listed by EPA as having the greatest environmental impact. They are classified as non-compatible pollutants and may require pretreatment prior to discharge in order to prevent: fil at-interference with the District's operation; or !ll ht-sludge contamination; or ~ Sf-pass through into receiving waters or into the atmosphere. Book Page 95 { [ L L 73. 84. Standard Methods shall mean procedures described in the current edition of Standard Methods for the Examination of Water and Wastewater, as published by the American Public Health Association, the American Water Works Association and Water Pollution Control Federation. 74. 85. Suspended Solids shall mean any insoluble material contained as a component of wastewater and capable of separation from the liquid portion of said waste by laboratory filtration as determined by the appropriate testing procedure and expressed in terms of milligrams per liter. 86. Tax Credit shall mean that portion of the basic levy on the ruscharger's County of Orange Ad Valorem Tax Bill allocated to the Q.is.trict. The basic levy does not include taxes for bonded indebtedness. 75. 87. Total Organic Carbon (TOC) shall mean the measure of total organic carbon in domestic or other wastewater as determined by the appropriate testing procedure. 76. 88. Unpolluted Water shall mean water to which no pollutant has been added either intentionally or accidentally. 77. 89. User shall mean any person who discharges or causes a discharge of wastewater directly or indirectly to a public sewer. User shall mean the same as Discharger or Industrial User. ---9-0-. -Waste shall mean sewage and any and all other waste substances, liquid, solid, gaseous or radioactive, associated with human habitation or of human or animal nature, including such wastes placed within containers of whatever nature prior to and for the purpose of disposal. 2090-30015 6407-0=q 21.62ll8.1 78. 91. Waste Manifest shall mean that receipt which is retained by the generator of hazardous wastes as required by the State of California or the United States Government pursuant to RCRA, or the California Hazardous Materials Act, or that receipt which is retained by the generator for recyclable wastes or liquid non-hazardous wastes as required by the District. 79. 92. Wastehauler shall mean any person carrying on or engaging in vehicular transport of waste as part of, or incidental to, any business for the purpose of discharging said waste into the District's system. Book Page 99 Q., D. No user shall increase the contribution of flow, pollutants, or change the nature of pollutants where such contribution or change does not meet applicable standards and requirements or where such contribution would cause the District to violate any Federal, State, or local regulatory permit. 202. 202. PROHIBITION ON DILUTION No user shall increase the use of water or in any other manner attempt to dilute a discharge as a partial or complete substitute for treatment to achieve compliance with this Ordinance and the user's permit or to establish an artificially high flow rate for permit mass emission rates. 203. PROHIBITION ON SURFACE RUNOFF AND GROUNDWATER A. A. No person shall discharge groundwater, surface runoff, or subsurface drainage directly or indirectly to the District's sewerage facilities except as provided herein. Pursuant to Section 305, et seq., the District may approve the discharge of such water only when no alternate method of disposal is reasonably available or to mitigate an environmental risk or health hazard. B. 8. The discharge of such waters shall require a Special Purpose Discharge Permit from the District. C. C. If a permit is granted for the discharge of such water into a public sewer, the user shall pay the applicable charges established herein and shall meet such other conditions as required by the District. 203. 204 . PROHIBITION ON UNPOLLUTED WATER ---~-,No person shall discharge unpolluted water such as single pass cooling water directly or indirectly to the District's sewerage facilities except as provided herein. Pursuant to Section 305, et seq., the District may approve the discharge of such water only when no alternate method of disposal or reuse is reasonably available or to mitigate an environmental risk or health hazard. ---B>-. --The discharge of such waters shall require a Special Purpose Discharge Permit from the District. ---C~. --If a permit is granted for the discharge of such water into a public sewer, the user shall pay the applicable charges established herein and shall meet such other conditions as required by the District. 204. 205. PROHIBITION ON RADIOACTIVE WASTES No person shall discharge radioactive waste unless: 2-0QQ-30020 6407-G::;-1· 216288..1 Book Page 104 D. obtained; or Local Discharge Limits as specified in Table I, whichever are more stringent. No Wastehauler shall discharge directly or indirectly to the sewerage facilities any material defined as hazardous waste by RCRA or 40 CFR 261. E. Upon request by the District, each Wastehauler shall provide a waste manifest documenting the source of all wastewater to be discharged into the sewerage facilities. 208. 209. LIMITS ON WASTEWATER STRENGTH AND CHARACTERISTICS A. A No person shall discharge wastewater in excess of either the permitted mass emission rates established in accordance with Section 210 or the concentration limits set forth in Table I or the discharge permit. Further, no person shall discharge wastewater in excess of any applicable Federal or State discharge regulations. B. No person shall discharge wastewater: 1. 1. Having a temperature higher than 140 degrees Fahrenheit, (60 degrees Centigrade), or which causes the temperature at the treatment plant to exceed 104 degrees Fahrenheit (40 degrees Centigrade). -----2,..,.... --Having a pH less than 6.0 or greater than 12.0. 3. 3. Containing polychlorinated biphenyls (PCBs) in excess of the limit as shown in Table I. PCBs include, but are not limited to the following: Aroclors 1016, 1221, 1228, 1232, 1242, 1248, 1254, 1260, and 1262. 4. 4. Containing pesticides in excess of the limit as shown in Table I. Pesticides include, but are not limited to the following: DDT (dichlorodiphenyltrichloro-ethane, both isomers), ODE ( dichlorodiphenyl-ethylene), DOD ( dichlorodiphenyldichloroethane ), Aldrin, Benzene Hexachloride (alpha [a], beta [J3], and gamma isomers), Chlordane, Endrin, Endrin aldehyde, 2,3,7,8-tetrachlorodibenzo-p-dioxin (TCDD), toxaphene, a-endosulfan, J3-endosulfan, Endosulfan sulfate, Heptachlor, Heptachlor epoxide, Dieldrin, Demeton, Guthion, Malathion, Methoxychlor, Mirex, and Parathion. -------Having a maximum Biochemical Oxygen Demand (BOD) greater than 15,000 pounds per day; or exceeding a 30-day BOD average 2090-3002 2 640'7-0_ 21628.8..1 Book Page 106 discharges to the District=:s sewerage facilities if deemed by the General Manager appropriate to comply with the objectives presented in the Introduction and Summary of this Ordinance and the prohibitions and limitations in Article 2. ---8 ....... --The discharge permit shall be in one of six forms and is dependent upon the type of discharger, volume, and characteristics of discharge. The six discharge permits are: 1. -----+1 -. --Class I Wastewater Discharge Permit. 2. -----~--Class II Wastewater Discharge Permit. 3. -----a-,--RESERVED 4. -----~4-. -~Special Purpose Discharge Permit. 5. ------.+---Wastehauler Discharge Permit. 6. 6. --Transportable Treatment Unit Discharge Permit. 302. CLASS I WASTEWATER DISCHARGE PERMITS A. No user requiring a Class I permit shall discharge wastewater without obtaining a Class I Wastewater Discharge Permit. ---Bt-c-. --Class I Wastewater Discharge Permits shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use, and fees established by the District. The conditions of Wastewater Discharge Permits shall be enforced by the District in accordance with this Ordinance and applicable State and Federal Regulations. 2-090-30026 64070~ 2lii2l!lL1 ---+.C-. --All Class I users proposing to discharge directly or indirectly into the District=:s sewerage facilities shall obtain a Wastewater Discharge Permit by filing an application pursuant to Section 302.1 and paying the applicable fees pursuant to Section 302.3. For purposes of this Ordinance, a Class I user is any user: -+-1-. --Subject to Federal Categorical Pretreatment Standards; or 2. 2. Discharging wastewater which averages 25,000 gallons per day or more of regulated process water; or 3. 3. Discharging wastewater determined by the District to have a reasonable potential for adversely affecting the District=~s operation or Book Page 11 O D. 10. 11. Production records, if applicable. 11. 12. 13. 14. -------+1~2-. -Waste manifests, if applicable. -----+1-a3.,...... -Landscaped area in square feet, if applicable. ------+-+-,---Tons of cooling tower capacity, if applicable. -----a1"---"5,__ -EPA Hazardous Waste Generator Number, if applicable. 15. 16. Any other information as specified. B. Applicants may be required to submit site plans, floor plans, mechanical and plumbing plans, and details to show all sewers, spill containment, clarifiers, pretreatment equipment, and appurtenances by size, location, and elevation for eyaluation. C. Applicants may also be required to submit information related to the applicant's business operations, processes, and potential discharge as may be requested by the District to properly evaluate the permit application. After evaluation of the data, the District may issue a Wastewater Discharge Permit, subject to terms and conditions set forth in this Ordinance and as otherwise determined by the General Manager to be appropriate to protect the District's sewerage facilities. E. The permit application may be denied if the applicant fails to establish to the District's satisfaction that adequate pretreatment equipment is included within the applicant's plans to ensure that the discharge limits will be met or if the applicant has, in the past, demonstrated an inability to comply with applicable discharge limits. 302.2 302.2 Class I Permit Conditions, and Limits 2080-30028 6407-0_, 2.16288.1 A,..,..,..._ --A Class I permit shall contain all of the following conditions or limits: 1. -------+,---Mass emission rates and concentration limits regulating non-compatible pollutants. 2. -----~--Requirements to notify the District in writing prior to modification to processes or operations through which industrial wastewater may be produced. rl3-,-. --1Location of the user's on-site sampling point. Book Page 112 r r ' l l L L L I L C. 2()90--30031 64070:::=1 21628lL1 recover the cost of conveying, treating, and disposing of sewage in District facilities are exclusive of any fees levied by local sewering agencies. The charge for use shall be based on the total maintenance, operation, capital expenditures, and reserve requirements for providing wastewater collection, treatment, and disposal. ---B~. --A discharger who is issued a Class I Wastewater Discharge Permit under the provisions of this Ordinance shall pay a charge for use in accordance with the formula contained herein and the unit charge rates adopted annually by Ordinance of the Board of Directors. These fees shall be invoiced on a quarterly basis. The quarterly invoice shall be based upon an estimate of the annual use as determined by the District. Annually, the District shall compute the charge for use based upon actual use for the preceding 12-12-month period on an annual reconciliation statement. The charge for use is payable within forty-five (45) days of invoicing by the District. A credit to the permittee will be allowed against this permit charge for use, equal to the annual ad valerem tax basic le~ocated to the District fuF the propeFty for which a permit has been issued by the District. A credit w#l-alsewill be allowed for any sanitary sewer service charge adopted by the Board of Directors by separate Ordinance and levied against the permitted property. Current property tax bills shall be supplied by the permittee to the District by May 31 of each year for use in determining the ad valorem tax credit afl€11er--#le~ sanitary sewer service credit. including the special assessment. If the tax bills are not supplied, the District will endeavor to obtain the data. Data obtained by the District will be considered correct and will not be adjusted before the next annual reconciliation statement. There shall be a fee levied for District administrative costs when aa valorem property tel)( or-the sanitary sewer service charge data afeis obtained by the District. The amount of the fee shall be adopted by the District's Board of Directors. D. In order for the District to determine actual annual water use, the user shall provide to the District copies of its water bills. If these water bill copies are not received by July 31 of each year for the 12-month period ended closest to June 30, the District will endeavor to obtain the water use data. Data obtained by the District will be considered correct and will not be adjusted before the next annual reconciliation statement. There shall be a fee levied for District administrative costs when water use data is obtained by the District. The amount of the fee shall be adopted by the District's Board of Directors. E. The charge for use shall be computed by the following formula: Charge for Use= V0V + BoB + S0 S Tax Credit Special Assessment Book Page 115 Where V = total annual volume of flow, in millions of gallons B = total annual discharge of biochemical oxygen demand, in thousands of pounds S = total annual discharge of suspended solids, in thousands of pounds V0 ,B0,S0 = Unit Charge rates established and adopted by Ordinance of the District's Board of Directors, based upon the funding requirements of providing sewerage service, in dollars per unit as described in Paragraph F below: E. F. The Unit Charge rates in the charge-for-use formula shall be determined by the following method: -----An Operations and Maintenance component of the Unit Charge for the total annual operation and maintenance funding requirements of the sewerage system shall be levied at a rate to be determined from time to time by the Board of Directors. This Charge shall be allocated among the three wastewater charge parameters of flow, biochemical oxygen demand and suspended solids in accordance with the General Manager's determination as to the costs associated with each parameter and pursuant to applicable requirements of State and Federal Regulatory Agencies. The operation and maintenance costs as distributed to flow, 2090-30032 640-10::'l- 21628§..1 biochemical oxygen demand and suspended solids shall be divided by the projected annual total flow volume and weights of biochemical oxygen demand and suspended solids to be treated by the sewerage system in the budgeted year. 1. -----,&---A Capital Facilities Replacement Service component of the Unit Charge for capital replacement and capital improvement shall be levied at a rate to be determined from time to time by the Board of Directors. This charge shall be allocated among wastewater charge parameters of flow, biochemical oxygen demand, and suspended solids in accordance with the General Manager's determination of which portion of the charge predominantly relates to each parameter. The capital facilities charge distributed to biochemical oxygen demand, and suspended solids shall be divided by the projected annual weights of biochemical oxygen demand and suspended solids to be treated by the sewerage system in the budgeted year. 2. --------The Unit Charge rates for each respective wastewater component in (1) and (2) above shall be summed. The Book Page 116 operation, capital expenditures, and reserve requirements for providing wastewater collection, treatment, and disposal. -----eBtc----. ---,A discharger who is issued a Class II Wastewater Discharge Permit under the provisions of this Ordinance shall pay a charge for use in accordance with the formula contained herein and the Unit Charge rates adopted annually by Ordinance of the Board of Directors. These fees shall be invoiced on a quarterly basis. The quarterly invoice shall be based upon an estimate of the annual use as determined by the District. Annually, the District shall compute the charge for use based upon actual use for the preceding l212-month period on an annual reconciliation statement. The charge for use is payable within forty-five (45) days of invoicing by the District. A credit to the permittee wi-1+-ae allowed against this permit charge for use, equal to the annual ad valorem tax basic levy allocated to the District for the property for vvhich a permit has been issHed by the .Qi.strict. A credit will alsowill be allowed for any sanitary sewer service charge adopted by the Board of Directors by separate Ordinance and levied against the permitted property. 2090-30038 640-10 -1 216288 1 C. Current property tax bills shall be supplied by the permittee to the District by May 31 of each year for use in determining tf:l.e.-ad valorem--tax credit and/or theany sanitary sewer service credit. including the special assessment. If the tax bills are not supplied, the District will endeavor to obtain the data. Data obtained by the District will be considered correct and will not be adjusted before the next annual reconciliation statement. There shall be a fee levied for District administrative costs when ad valorem f'}FOperty tax Gf sanitary sewer service charge data is obtained by the District. The amount of the fee shall be adopted by the District's Board of Directors. D. In order for the District to determine actual annual water use, the user shall provide to the District copies of its water bills. If these water bill copies are not received by July 31 of each year for the 12-month period ended closest to June 30, the District will endeavor to obtain the water use data. Data obtained by the District will be considered correct and will not be adjusted before the next annual reconciliation statement. There shall be a fee levied for District administrative costs when water use data is obtained by the District. The amount of the fee shall be adopted by the District's Board of Directors. E. The charge for use shall be computed by the following formula: Charge for Use= V0V + B0B + SoS Tax Credit Special Assessment Where V = total annual volume of flow, in millions of gallons B = total annual discharge of biochemical oxygen demand, in thousands of pounds Book Page 122 f L L S = total annual discharge of suspended solids, in thousands of pounds V0 ,B0,S0 = Unit Charge rates adopted annually by Ordinance of the District's Board of Directors, based upon the funding requirements of providing sewerage service, in dollars per unit as described in Paragraph F below. ---F-. --The unit charge rates in the charge for use formula shall be established G. 2-0BG--J0039 64070;:;-1 216288..1 annually and shall be determined by the following method: -----An Operations and Maintenance component of the Unit Charge for the total annual operation and maintenance funding requirements of the sewerage system shall be levied at a rate to be determined from time to time by the Board of Directors. This charge shall be allocated among the three wastewater charge parameters of flow, biochemical oxygen demand and suspended solids in accordance with the General Manager's determination as to the costs associated with each parameter and pursuant to applicable requirements of State and Federal Regulatory Agencies. The operation and maintenance costs as distributed to flow, biochemical oxygen demand and suspended solids shall be divided by the projected annual total flow volume and weights of biochemical oxygen demand and suspended solids to be treated by the sewerage system in the budgeted year. 2. ----------A Capital Facilities Replacement component of the Unit Charge for capital replacement and capital improvement shall be levied at a rate to be determined from time to time by the Board of Directors. This charge shall be allocated among the three wastewater charge parameters of flow, biochemical oxygen demand and suspended solids in accordance with the General Manager's determination of which portion of the charge predominantly relates to each parameter. The capital facilities charge distributed to biochemical oxygen demand and suspended solids shall be divided by the projected annual weights of biochemical oxygen demand and suspended solids to be treated by the sewerage system in the budgeted year. --------The unit charge rates for each respective wastewater component in (1) and (2) above shall be summed. The Unit Charge rates so determined will be expressed in dollars per million gallons for V 0, and in dollars per thousand pounds for Bo and So. Other measurements of the organic content of the wastewater of a discharger, such as COD or TOC, may be used instead of BOD. Book Page 123 r [ l l the alternatives for water disposal, or other data as needed by the District for review. B. B. The permit application may be denied when the applicant has failed to establish to the District=) satisfaction that adequate pretreatment equipment is included within the applicants' plans to ensure that the discharge limits will be met or that the applicant has, in the past, demonstrated an inability to comply with applicable discharge limits. 305.2 ~05.2 Special Purpose Discharge Permit Conditions and Limits -- A. A. Discharge conditions and limits shall be no less stringent than Section 205, Limits on Radioactive Wastes; Section 209, Limits on Wastewater Strength and Characteristics; Section 210, Mass Emission Rate Determination, and Table I, Local Discharge Limits. B. Monitoring requirements for the discharge shall be for those non-compatible pollutants known to exist in the discharge. At least one analysis prior to sewer discharge shall be performed for all constituents contained in the most current Environmental Protection Agency (EPA) "Priority Pollutant" list, excluding asbestos. C. The District may specify and make part of each Special Purpose Discharge Permit specific pretreatment requirements or other terms and conditions determined by the General Manager to be appropriate to protect the District's Sewerage Facility, the Local Sewering Agency, to comply with Regulatory Agencies' requirements, to ensure compliance with this Ordinance, and to assess user charges. 305.3 d05.3 Special Purpose Discharge Permit Fee The special purpose discharge permit fee shall be paid by the applicant in an amount adopted by Ordinance of the Board of Directors. Payment of permit fees must be received by the District prior to issuance of either a new permit or a renewed permit. Each permittee shall also pay delinquent invoices in full prior to permit renewal. 305.4 J.05.4 Special Purpose Discharge Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by the District during the life of the permit based on: :1090-30041 64070~1 2.162l!lU +1~. --The discharger's current or anticipated operating data; Book Page 125 r- r r= l r r f [ [ l l I u b A. l\. No Wastehauler shall discharge wastewater without a Wastehauler Discharge Permit. B. Any person required to obtain a Wastehauler Discharge Permit shall complete and file with the District prior to commencing discharge, an application in a form prescribed by the District. This application shall be accompanied by the applicable fees. The applicant shall submit, in units and terms appropriate for evaluation, the following information: .L 1. Name, address, telephone number, and description of the industries, or clients using the applicant's services. 2. 2. (Whichever is applicable) Name, address of any and all principals/owners/major shareholders of the company; Articles of Incorporation; most recent Report of the Secretary of State; Business License. 3. 3. Name and address of leaseholder of the vehicle or trailer, if applicable. 4. Number of trucks and trailers and the license numbers and tank hauling capacity of each. 5., 5. A copy of the applicant's Orange County Health Department Permit. C. Other information related to the applicant's business operations and potential discharge may be requested to properly evaluate the permit application. D --After evaluation of the data furnished, the District may issue a Wastehauler discharge permit, subject to terms and conditions set forth in this Ordinance and as otherwise determined by the General Manager to be appropriate to protect the District's system. 306.2 306.2 Wastehauler Discharge Permit Conditions and Li mits The issuance of a Wastehauler permit may contain any of the following conditions or limits: :!090-30043 6407-0:::1- 2.1.62ll.8..1 ---..--Limits on discharge of heavy metals and other priority pollutants. ---B1-. --Requirements for maintaining and submitting waste hauling records and waste manifests. Book Page 127 6. EPA and State Identification Number. B. B. Applicants may be required to submit mechanical and plumbing plans, and details to show all spill containment, clarifiers and appurtenances by size, location, and elevation for evaluation. C. C. Applicants may be required to submit other information related to the applicant's business operations and potential discharge may be requested to properly evaluate the permit application. D. D. After evaluation of the data furnished, the District may issue a Wastehauler discharge permit, subject to terms and conditions set forth in this Ordinance and as otherwise determined by the General Manager to be appropriate to protect the District's system. E. E. The permit application may be denied if the applicant fails to establish to the District-:s satisfaction that adequate pretreatment equipment is included within the applicants' plans to ensure that the discharge limits will be met or if the applicant has, in the past, demonstrated an inability to comply with applicable discharge limits. 307.2 307.2 TTU Discharge Permit Conditions and Limits The issuance of a TTU permit may contain any of the following conditions or limits: A. A. Mass emission rates or concentrations regulating heavy metals and other priority pollutants. B. B. Limits on rate and time of discharge or requirements for flow regulation and equalization. C. C. Requirements to notify the District in writing 72 hours prior to the discharge of any waste to the sewer. D. D. Requirements for the user to construct and maintain, at his own expense, pH control, flow monitoring, or sampling facilities. E. E. Requirements for submission of technical reports, discharge reports, waste hauling records, and waste manifests. F. F. Requirements to self-monitor. G. G. Requirements for maintaining plant records relating to wastewater discharge and waste manifests as specified by District. 2090-30046 64010=1 21.62aB.:t Book Page 130 L L L The review of the plans and procedures shall in no way relieve the user of the responsibility of modifying the facilities or procedures in the future, as necessary to produce an acceptable discharge, and to meet the requirements of this Ordinance or any requirements of other Regulatory Agencies. B. The drawing shall depict as a minimum the manufacturing process (waste generating sources), spill containment, monitoring or metering facilities, and pretreatment facilities. C. The applicant or user shall submit a schematic drawing of the pretreatment facilities, piping and instrumentation diagram, and wastewater characterization report. D. E. Users and applicants may also be required to submit for review site plans, floor plans, mechanical and plumbing plans, and details to show all sewers, spill containment, clarifiers, and appurtenances by size, location, and elevation for evaluation. The District may require the drawings be prepared by a California Registered Chemical, Mechanical, or Civil Engineer. 402. 4-Gb--PRETREATMENT FACILITIES A. All users shall provide wastewater acceptable to the District, under the limits established herein before discharging to any public sewer. Any facilities required to pretreat or transport wastewater shall be provided and maintained by a qualified operator and in proper operating condition at the user's expense. B. All users may also be required by the District to submit waste analysis plans, contingency plans, and meet other necessary requirements to ensure proper operation of the pretreatment facilities and compliance with permit limits and this Ordinance. C. No user shall increase the use of water or in any other manner attempt to dilute a discharge as a partial or complete substitute for treatment to achieve compliance with this Ordinance and the user's Permit. 403. 403. SPILL CONTAINMENT FACILITIES/ACCIDENTAL SLUG CONTROL PLANS A. 2090-3oo49 All users shall provide spill containment for protection against discharge of prohibited materials or other wastes regulated by this Ordinance. Such protection shall be designed to secure the discharges and to prevent them from entering into the system in accordance with reasonable engineering Book Page 133 standards. Such facilities shall be provided and maintained at the user's expense. B. The General Manager may require any industrial user to develop and implement an accidental discharge/slug control plan. At least once every two years the District shall evaluate whether each significant industrial user needs such a plan. Any user required to develop and implement an accidental discharge/control slug plan shall submit a plan which addresses, at a minimum, the following: 1. Description of discharge practices, including non-routine batch discharges. 2--c-2... Description of stored chemicals. 3. Procedures for immediately notifying the POTW of any accidental of slug discharge. Su_ch notification must also be given for any discharge which would violate any of the prohibited discharges in Article 2 of this Ordinance. 4. Procedures to prevent adverse impact from any accidental or slug discharge. Such procedures include, but are not limited to, inspection and maintenance of storage areas, handling and transfer of materials, loading and unloading operations, control of plant site run-off, worker training, building of containment structures or equipment, measures for containing toxic organic pollutants (including solvents), and measures and equipment for emergency response. 404. 404 . MONITORING/METERING FACILITIES A. The District may require the user to construct and maintain in proper operating condition at the user's sole expense, flow monitoring, constituent monitoring and/or sampling facilities. B. The monitoring or metering facilities may be required to include a security closure that can be locked with a District provided hasp lock during sampling or upon termination of service. C. The location of the monitoring or metering facilities shall be subject to approval by the District. D. The user shall provide immediate, clear, safe and uninterrupted access to the District to the user's monitoring and metering facilities. 2090-30050 6407-0-=1- ~ Book Page 134 self-monitoring requirement and frequency of reporting may be set forth in the user's permit as directed by the District. The analyses of wastewater constituents and characteristics and the preparation of the monitoring report shall be done at the sole expense of the user. Failure by the user to perform any required monitoring, or to submit monitoring reports required by the District constitutes a violation of this Ordinance, may result in determining whether the permittee is in significant non- compliance, and be cause for the District to initiate all necessary tasks and analyses to determine the wastewater constituents and characteristics for compliance with any limits and requirements specified in the user's permit or in this Ordinance. The user shall be responsible for any and all expenses of the District in undertaking such monitoring analyses and preparation of reports. 501.1 501.1 Inspection and Sampling Conditions 501.2 .A.. The District may inspect and sample the wastewater generating and disposal facilities of any user to ascertain whether the intent of this Ordinance is being met and the user is complying with all requirements. B. The District shall have the right to place on the user's property or other locations as determined by the District, such devices as are necessary to conduct sampling or metering operations. Where a user has security measures in force, the user shall make necessary arrangements so that personnel from the District shall be permitted to enter without delay for the purpose of performing their specific responsibilities. C. In order for the District to determine the wastewater characteristics of the discharger for purposes of determining the annual use charge and for compliance with permit requirements, the user shall make available for inspection and copying by the District all notices, self-monitoring reports, waste manifests, and records including, but not limited to, those related to production, wastewater generation, wastewater disposal, and those required in the Federal Pretreatment Requirements without restriction but subject to the confidentiality provision set forth in Section 103 herein. All such records shall be kept by the user a minimum of three (3) years. Right of Entry Persons or occupants of premises where wastewater is created or discharged shall allow the District, or its representatives, reasonable access to all parts of the wastewater generating and disposal facilities for the purposes of inspection and sampling during all times the discharger's facility is open, operating, or any other reasonable time. No person shall interfere with, delay, resist or refuse entrance to 2090--30052 640-'70=1• 2162.8lL1 Book Page 136 6. Violates a Probation Order. 7. Refuses reasonable access to the permittee's premises for the purpose of inspection and monitoring. 8. Does not make timely payment of all amounts owed to the District for user charges, non-compliance sampling fees, permit fees, or any other fees imposed pursuant to this Ordinance. 9. Violates any condition or limit of its discharge permit or any provision of the District's Ordinance. B. Notice/Hearing When the General Manager has reason to believe that grounds exist for permit suspension, he shall give written notice thereof by certified mail to the permittee setting forth a statement of the facts.and grounds deemed to exist, together with the time and place where the charges shall be heard by the General Manager's designee. The hearing date shall be not less than fifteen (15) calendar days nor more than forty-five (45) calendar days after the mailing of such notice. 1. At the suspension hearing, the permittee shall have an opportunity to respond to the allegations set forth in the notice by presenting written or oral evidence. The hearing shall be conducted in accordance with procedures established by the General Manager and approved by the District's General Counsel. 2. After the conclusion of the hearing , the General Manager's designee shall submit a written report to the General Manager setting forth a brief statement of facts found to be true, a determination of the issues presented, conclusions, and a recommendation. Upon receipt of the written report, the General Manager shall make his determination and should he find that grounds exist for suspension of the permit, he shall issue his decision and order in writing within thirty (30) calendar days after the conclusion of the hearing by his designee. The written decision and order of the General Manager shall be sent by certified mail to the permittee or its legal counsel/representative at the permittee's business address. C. Effect 1. Upon an order of suspension by the General Manager becoming final, the permittee shall immediately cease and desist its discharge and shall have no right to discharge any industrial wastewater, directly or Book Page 144 r r r f r f ' ,- i f L L I L 2. 3. indirectly to the District's system for the duration of the suspension. All costs for physically terminating and reinstating service shall be paid by the permittee. Any owner or responsible management employee of the permittee shall be bound by the order of suspension. An order of permit suspension issued by the General Manager shall be final in all respects on the sixteenth (16th) day after it is mailed to the permittee unless a request for hearing is filed with the Steering Committee pursuant to Section 618 no later than 5:00 p.m. on the fifteenth (15th) day following such mailing. 605. PERMIT REVOCATION A. Grounds The General Manager may revoke any permit when it is determined that a permittee: 2-0QG--3Q061 64070=4- 216.2a!U 1. Knowingly provides a false statement, representation, record, report, or other document to the District. 2. 3. Refuses to provide records, reports, plans, or other documents required by the District to determine permit terms, conditions, or limits, discharge compliance, or compliance with this Ordinance. Falsifies, tampers with, or knowingly renders inaccurate any monitoring device or sample collection method. 4. Fails to report significant changes in operations or wastewater constituents and characteristics. 5. Fails to comply with the terms and conditions of an ECSA, permit suspension, or probation order. 6. Discharges effluent to the District's sewerage system while its permit is suspended. 7. Refuses reasonable access to the permittee's premises for the purpose of inspection and monitoring. 8. Does not make timely payment of all amounts owed to the District for user charges, non-compliance sampling fees, permit fees, or any other fees imposed pursuant to this Ordinance. Book Page 145 L industrial wastewater directly or indirectly to the District's system. All costs for physical termination shall be paid by the permittee. 2. Any owner or responsible management employee of the permittee shall be bound by the order of revocation. 3. Any future application for a permit at any location within the District by any person subject to an order of revocation will be considered by the District after fully reviewing the records of the revoked permit, which records may be the basis for denial of a new permit. 4. An order of permit revocation issued by the General Manager shall be final in all respects on the sixteenth (16th) day after it is mailed to the permittee unless a request for hearing is filed with the Steering Committee pursuant to Section 618 no later than 5:00 p.m. on the fifteenth (15th) day following such mailing. 606. WASTEHAULER NON-COMPLIANCE WITH PERMIT CONDITIONS A Wastehauler's non-compliance with permit requirements shall be determined by an analysis of a sample of the discharge for any constituent or conditions specified in the Wastehauler's discharge permit or this Ordinance. If the discharge of a Wastehauler is found by the analysis to be in excess of the concentration limits specified in the Wastehauler's discharge permit or in this Ordinance, the Wastehauler shall, after receiving a demand from the District, identify in writing, all sources of the discharge. Even if it is established to the satisfaction of the General Manager that the origin of the discharge is septic waste or sanitary waste, the District may still elect not to accept waste from that particular source. If the discharge is from an industrial source(s) and exceeds permit concentration limits or limits specified in this Ordinance, the following shall apply: A. First Violation B. 209G--30063 64070_:;'1, 2.1.628lU 1. The permittee shall pay a non-compliance sampling fee. 2. The Wastehauler permit for disposal privileges shall be suspended for five (5) days. Second Violation 1. The permittee shall pay a non-compliance sampling fee. Book Page 147 610. PUBLISHED NOTICES FOR SIGNIFICANT NON-COMPLIANCE r In accordance with Federal Regulations, the District shall annually cause to be published the names of all industrial users in significant non-compliance. Upon a minimum of a thirty (30)-day notification to the user, said publication shall be made in the newspaper of the largest daily circulation published in the District's service area. r r r L L L I L;. 611. PUBLIC NUISANCE Discharge of wastewater in any manner in violation of this Ordinance or of any order issued by the General Manager, as authorized by this Ordinance, is hereby declared a public nuisance and shall be corrected or abated as directed by the General Manager. Any person creating a public nuisance is guilty of a misdemeanor. 612. TERMINATION OF SERVICE A. The District, by order of the General Manager, may physically terminate sewerage service to any property as follows: 1 . On a term of any order of emergency suspension or revocation of a permit; or 2. Upon the failure of a person not holding a valid discharge permit to immediately cease discharge, whether direct or indirect, to the District's sewerage facilities. B. All costs for physical termination shall be paid by the user as well as all costs for reinstating service. 613. EMERGENCY SUSPENSION ORDER A. B. 2-090-30065 6407-0=~ 2162.8lLI. The District may, by order of the General Manager, suspend sewerage service or Wastehauler discharge service when the General Manager determines that such suspension is necessary in order to stop an actual or impending discharge which presents or may present an imminent or substantial endangerment to the health and welfare of persons, or to the environment, or may cause interference to the District's sewerage facilities, or may cause the District to violate any State or Federal Law or Regulation. Any discharger notified of and subject to an Emergency Suspension Order shall immediately cease and desist the discharge of all industrial wastewater to the sewerage system. As soon as reasonably practicable following the issuance of an Emergency Suspension Order, but in no event more than five (5) days following the Book Page 149 r [ including, but not limited to, the full amount of said fines or penalties to which it has been subjected. C. Ordinance Pursuant to the authority of California Government Code Sections 54 739 - 54740, any person who violates any provision of this Ordinance; any permit condition, prohibition or effluent limit; or any suspension or revocation order shall be liable civilly for a sum not to exceed $25,000.00 per violation for each day in which such violation occurs. Pursuant to the authority of the Clean Water Act, 33 U.S.C. Section 1251 et seq., any person who violates any provision of this Ordinance, or any permit condition, prohibition, or effluent limit shall be liable civilly for a sum not to exceed $25,000.00 per violation for each day in which such violation occurs. The General Counsel of the District, upon order of the General Manager, shall petition the Superior Court to impose, assess, and recover such penalties, or such other penalties as the District may impose, assess, and recover pursuant to Federal and/or State legislative authorization. D. Administrative Civil Penalties 2090-3GG67 64070-...:::1· 2.162filLJ. 1. Pursuant to the authority of California Government Code Sections 54740.5 and 54740.6, the District may issue an administrative complaint to any person who violates: a) any provision of this Ordinance; b) any permit condition, prohibition, or effluent limit; or c) any suspension or revocation order. 2. The administrative complaint shall be served by personal delivery or certified mail on the person and shall inform the person that a hearing will be conducted, and shall specify a hearing date within sixty (60) days following service. The administrative complaint will allege the act or failure to act that constitutes the violation of the District's requirements, the provisions of law authorizing civil liability to be imposed, and the proposed civil penalty. The matter shall be heard by the General Manager or his designee. The person to whom an administrative complaint has been issued may waive the right to a hearing, in which case a hearing will not be conducted. 3. At the hearing, the person shall have an opportunity to respond to the allegations set forth in the administrative complaint by presenting written or oral evidence. The hearing shall be conducted in accordance with the procedures established by the General Manager and approved by the District-:s General Counsel. Book Page 151 4. After the conclusion of the hearing, the General Manager's designee shall submit a written report to the General Manager setting forth a brief statement of the facts found to be true, a determination of the issues presented, conclusions, and a recommendation. 5. Upon receipt of the written report, the General Manager shall make his determination and should he find that grounds exist for assessment of a civil penalty against the person, he shall issue his decision and order in writing within thirty (30) calendar days after the conclusion of the hearing by his designee. 6. If, after the hearing or appeal, if any, it is found that the person has violated reporting or discharge requirements, the General Manager or Steering Committee may assess a civil penalty against that person. In determining the amount of the civil penalty, the General Manager or Steering Committee may take into consideration all relevant circumstances, including but not limited to the extent of harm caused by the violation, the economic benefit derived through any non- compliance, the nature and persistence of the violation, the length of time over which the violation occurs, and corrective action, if any, attempted or taken by the person involved. 7. Civil penalties may be assessed as follows: a) In an amount which shall not exceed two thousand dollars ($2,000.00) for each day for failing or refusing to furnish technical or monitoring reports; b) In an amount which shall not exceed three thousand dollars ($3,000.00) for each day for failing or refusing to timely comply with any compliance schedules established by the District; c) In an amount which shall not exceed five thousand dollars ($5,000.00) per violation for each day of discharge in violation of any waste discharge limit, permit condition, or requirement issued, reissued, or adopted by the District; d) In any amount which does not exceed ten dollars ($10.00) per gallon for discharges in violation of any suspension, revocation, cease and desist order or other orders, or prohibition issued, reissued, or adopted by the District; 8. An order assessing administrative civil penalties issued by the General Manager shall be final in all respects on the thirty-first (31st) day after its is served on the person unless an appeal and Book Page 152 A. General Any user, permit applicant or permittee affected by any decision, action or determination made by the Division Head may file with the General Manager a written request for an appeal hearing. The request must be received by the District within fifteen (15) days of mailing of notice of the decision, action, or determination of the District to the appellant. The request for hearing shall set forth in detail all facts supporting the appellant's request. B. Notice The General Manager shall, within fifteen (15) days of receiving the request for appeal, and pursuant to Section 107, designate a Department Head or other person to hear the appeal and provide written notice to the appellant of the hearing date, time and place. The hearing date shall not be more than thirty (30) days from the mailing of such notice by certified m_ail to the appellant unless a later date is agreed to by the appellant. If the hearing is not held within said time due to actions or inactions of the appellant, then the staff decision shall be deemed final. C. Hearing At the hearing, the appellant shall have the opportunity to present information supporting its position concerning the Division Head's decision, action or determination. The hearing shall be conducted in accordance with procedures established by the General Manager and approved by the District's General Counsel. D. Written Determination After the conclusion of the hearing, the Department Head (or other designee) shall submit a written report to the General Manager setting forth a brief statement of facts found to be true, a determination of the issues presented, conclusions, and a recommendation whether to uphold, modify or reverse the Division Head's original decision, action or determination. Upon receipt of the written report, the General Manager shall make his determination and shall issue his decision and order within thirty (30) calendar days of the hearing by his designee. The written decision and order of the General Manager shall be sent by certified mail to the appellant or its legal counsel/representative at the appellant's business address. The order of the General Manager shall be final in all respects on the sixteenth (16th) day after it is mailed to the appellant unless a request for hearing is filed with the Steering Committee pursuant to Section 618, no later than 5:00 p.m. on the fifteenth day following such mailing. 618. APPEALS TO THE STEERING COMMITTEE :!G90-30070 6407-0=1- 21.628lL1 Book Page 154 r I L l L A. General Any user, permit applicant, or permittee adversely affected by a decision, action, or determination made by the General Manager may, prior to the date that the General Manager's order becomes final, file a written request for hearing before the Steering Committee of the Joint Boards of Directors accompanied by an appeal fee in the amount established by a separate resolution of the District's Board of Directors. The request for hearing shall set forth in detail all the issues in dispute for which the appellant seeks determination and all facts supporting appellant's request. No later than sixty (60) days after receipt of the request for hearing, the Steering Committee shall either set the matter for a hearing, or deny the request for a hearing. A hearing shall be held by the Steering Committee within sixty-five (65) days from the date of determination granting a hearing, unless a later date is agreed to by the appellant and the Steering Committee. If the matter is not heard within the required time, due to actions or inactions of the appellant, the General Manager's order shall be deemed final. B. Granting Request for Hearing The Steering Committee shall grant all requests for a hearing on appeals concerning permit suspension, revocation, or denial. Whether to grant or deny the request for a hearing on appeals of other decisions of the General Manager shall be within the sole discretion of the Steering Committee. C. Appeal Fee Refund The appeal fee shall be refunded if the Steering Committee denies a hearing or reverses or modifies, in favor of the appellant, the order of the General Manager. The fee shall not be refunded if the Steering Committee denies the appeal. D. Written Determination After the hearing, the Steering Committee shall make a determination whether to uphold, modify, or reverse the decision, action, or determination made by the General Manager. The decision of the Steering Committee shall be set forth in writing within sixty-five (65) days after the close of the hearing and shall contain a finding of the facts found to be true, the determination of issues presented, and the conclusions. The written decision and order of the Steering Committee shall be sent by certified mail to the appellant or its legal counsel/representative at the appellant's business address. Book Page 155 The order of the Steering Committee shall be final upon its adoption. In the event the Steering Committee fails to reverse or modify the General Manager's order, it shall be deemed affirmed. 618.1 Appeal of Charges and Fees Any user, permit applicant, or permittee affected by any decision, action, or determination by the District, relating to fiscal issues of the District in which the user, applicant, or permittee is located, including but not limited to the imposition and collection of fees, such as connection charges, sewer use charges, special purpose discharge use charges and Wastehauler fees, may request that the District reconsider imposition of such fees or charges. Following review of such a request, the District shall notify the user, permit applicant, or permittee by certified mail of the District=:s decision on the reconsideration request. Any user, permit applicant, or permittee adversely affected by the District's decision on the reconsideration request may file an appeal which shall be heard by the Board of Directors of the District in which the appellant's property is located. The notice of appeal must be received by the District within thirty (30) days of the mailing of the District's decision on the reconsideration request. Notwithstanding the foregoing, appeals of non-compliance sampling fees shall be made pursuant to the appeal procedures set forth in Sections 617 and 618. 619. PAYMENT OF CHARGES A. Except as otherwise provided, all fees, charges and penalties established by this Ordinance are due and payable upon receipt of notice thereof. All such amounts are delinquent if unpaid forty-five (45) days after date of invoice. 8 . Any charge that becomes delinquent shall have added to it a penalty in accordance with the following: 1. Forty-six (46) days after date of invoice, a basic penalty often percent (10%) of the base invoice amount, not to exceed a maximum of $1,000.00; and 2. A penalty of one and one-half percent (1.5%) per month of the base invoice amount and basic penalty shall accrue from and after the forty-sixth (46th) day after date of invoice. C. Any invoice outstanding and unpaid after ninety (90) days shall be cause for immediate initiation of permit revocation proceedings or immediate suspension of the permit. 2090-30072 64070-__cc~ 2162filL1 Book Page 156 shall, within ten (10) days of filing such action, apply for and obtain the issuance of an amendment to its permit. D. Permit Amendments The District shall review and examine Permittee's account to determine whether previously incurred fees and charges have been paid in accordance with time requirements prescribed by this Ordinance. The District may thereafter issue an amendment to the User's permit in accordance with the provisions of Article 3 and Section 621 (E) of this Ordinance. E. Security An amendment to a waste discharge permit issued pursuant to Sections 621 (B), (C), and (D), may be conditioned upon the Permittee depositing financial security in an amount equal to the average total fees and charges for two (2) calendar quarters during the preceding year. Said deposit shall be used to guarantee payment of all fees and charges incurred for future services and facilities furnished by District and shall not be used by the District to recover outstanding fees and charges incurred prior to the Permittee filing and receiving protection from creditors in the United States Bankruptcy Court. F. Return of Security In the event the Permittee makes payment in full within the time prescribed by this Ordinance of all fees and charges incurred over a period of two (2) years following the issuance of an amendment to the permit pursuant to Sections 621(8), (C), and (D), the District shall either return the security deposit posted by the Permittee or credit their account. 622. JUDICIAL REVIEW A. Purpose and Effect Pursuant to Section 1094.6 of the California Code of Civil Procedure, the District hereby enacts this part to limit to ninety (90) days following final decisions in adjudicatory administrative hearings the time within which an action can be brought to review such decisions by means of administrative mandamus. B. Definitions 2090-30074 64010::'I· 216.2l!8..1 As used in this Section, the following terms and words shall have the following meanings: Book Page 158 r.: I I r ( l l L L L L C. 1. Decision shall mean and include adjudicatory administrative decisions that are made after hearing, or after revoking, suspending, or denying an application for a permit or a license. 2. Complete Record shall mean and include the transcript, if any exists, of the proceedings, all pleadings, all notices and orders, any proposed decision by the General Manager, the final decision, all admitted exhibits, all rejected exhibits in the possession of the District or its offices or agents, all written evidence, and any other papers in the case. 3. Party shall mean a person whose permit has been denied, suspended, or revoked. Time Limit for Judicial Review Judicial review of any decision of the District or its officer or agent may be made pursuant to Section 1094.5 of the Code of Civil Procedure only if the petition for writ of mandate is filed not later than the ninetieth (90th) day following the date on which the decision becomes final. If there is no provision for reconsideration in the procedures governing the proceedings or if the date is not otherwise specified, the decision is final on the date it is made. If there is provision for reconsideration, the decision is final upon the expiration of the period during which such reconsideration can be sought; provided that if reconsideration is sought pursuant to such provision the decision is final for the purposes of this Section on the date that reconsideration is rejected . D. Preparation of the Record The complete record of the proceedings shall be prepared by the District officer or agent who made the decision and shall be delivered to the petitioner within ninety (90) days after he has filed written request therefor. The District may recover from the petitioner its actual costs for transcribing or otherwise preparing the record. E. Extension If the petitioner files a request for the record within ten (10) days after the date the decision becomes final, the time within which a petition, pursuant to Section 1094.5 of the Code of Civil Procedure, may be filed shall be extended to not later than the thirtieth (30th) day following the date on which the record is either personally delivered or mailed to the petitioner or the petitioner's attorney of record, if appropriate. 2090--30075 64070=1- 21.628lLI. Book Page 159 This additional language will bring consistency to making decisions regarding the annexation and annexation fees for those areas outside of Orange County. PRIOR COMMITTEE/BOARD ACTIONS On January 28, 2004, the Board adopted Ordinance No. OCSD-21, An Ordinance of the Board of Directors of Orange County Sanitation District, Adopting Fees, Procedures and Policies Concerning Annexations of Territory to the District; and Repealing Ordinance No. OCSD-03. PROJECT/CONTRACT COST SUMMARY Not applicable. 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. i:gj Not applicable (information item) ATTACHMENTS Ordinance OCSD-29 H:ldept\egenda\FAHRIFAHR2006\0406106,06-27.Ord 29,doc Revised: 06/04/03 Book Page 163 Page2 ,- 1 r r ' r" I r I ' I ( ~ l ( L L I 6 L ORDINANCE NO. OCSD-29 AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ADOPTING FEES, PROCEDURES, AND POLICIES CONCERNING ANNEXATIONS OF TERRITORY TO THE DISTRICT, AND REPEALING ORDINANCE NO. OCSD-03 WHEREAS, the Board of Directors of the Orange County Sanitation District ("District") has previously adopted Ordinance No. OCSD-21, adopting fees, procedures, and policies concerning annexations of territory to the District, which Ordinance is presently in full force and effect; and WHEREAS, for purposes of continued efficiency and effectiveness of the District's operations, preservation of the public health and safety, and in order to continue the provision of wastewater collection, treatment and disposal services, it is the intent, by adoption of this Ordinance, to continue said procedures and policies in effect, without interruption; and WHEREAS, the Board of Directors of the District has received a management report, including financial needs of the District, and wishes to reaffirm the policy of imposing annexation fees when new territory is annexed to the District, and to adopt findings supporting the amount of the fees adopted pursuant to this Ordinance. The Board of Directors of the Orange County Sanitation District does hereby FIND: A. That a comprehensive 30-year Master Plan of Capital Facilities, entitled "Collection, Treatment and Disposal Facilities Master Plan -1989", hereinafter referred to as the "Master Plan", which includes detailed financial and engineering reports, was prepared, approved, and adopted by the Boards of Directors of the Predecessor Districts in 1989, setting forth and identifying the required future development of District facilities, including the financial projections for providing sewer service to all properties within the individual service areas of each of the nine Predecessor Districts; and B. That the financial and engineering reports of the Master Plan were made available to the public, both prior to and subsequent to the adoption of the Master Plan, and were subject to noticed public hearings, all in accordance with the provisions of the California Constitution and Government Code Section 66016, and other provisions of law; and C. That the District, in 1997, as part of its maintenance and updating of its Master Plan, undertook a comprehensive evaluation and study of its operational and financial needs for the next 20 years, including a detailed assessment of all types and categories of users; the demands on the system and capacity needs of the system to provide necessary service to the multiple categories of users; the total costs of the existing and future facilities in the system; and alternate methodologies for establishing fair and equitable charges to connect to and gain access to the system. These comprehensive planning, engineering, and financial studies led to the development of an updated Comprehensive Master Plan of Capital Facilities, which was approved and D. That the properties upon which the fees established by this Ordinance are levied, will, subsequent to payment of an additional Capital Facilities Capacity Charge, be allowed to discharge wastewater to the District's collection, treatment and disposal facilities; that the costs of operating and maintaining said facilities have constantly increased due in part to increased regulatory requirements to upgrade the treatment process; and that Book Page 164 said costs will exceed the amounts of any ad valorem tax revenues derived from said property; and E. That the District will not receive any tax exchange from said annexed properties because of an agreement with the County of Orange under which there is no tax exchange for newly-annexed property; and F. That the annexation fees established here are an incident but not a condition of development, payable only on request to receive service by the property owner for the benefit of those persons on the property that use the service. The fees are not an incident of property ownership, nor are they a property-related service having a direct relationship to property ownership. Accordingly, the provisions of California Constitution Article XIIID are not applicable. G. That the annexation fees imposed by authority of this Ordinance do not exceed the estimated amount required to provide access to the sewer service for which the fee is levied, as provided in California Government Code Section 66013; and H. That the fees established by this Ordinance will not necessarily result in an expansion of facilities to provide for growth outside the existing service area. The collection of these annexation fees will not result in any specific project, and will not result in a direct physical change in the environment; and I. That the fees adopted by this Ordinance are established upon a rational basis between the fees charged each property that is annexing, and the service and facilities provided to each annexed property by the District, a portion of which is necessary to replace the loss of ad valorem property taxes to the State General Fund as a result of State legislative action on September 2, 1992, and in subsequent years; and J. That all fees and charges established herein have been approved by the District's Board of Directors at a noticed public meeting, all in accordance with applicable provisions of law; and K. That the adoption of this Ordinance is statutorily exempt under the California Environmental Quality Act from further environmental assessment pursuant to the provisions of California Public Resources Code Section 21080(b)(8), and 14 California Code of Regulations Section 15273(a). NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, does hereby ORDAIN: Section 1: That the purpose of this Ordinance is to establish fees required to be paid by property owners for the annexation of property to the District. Said fees are in lieu of property taxes not allocated to the District while the property was outside of the District, and in lieu of future property tax allocations through a Tax Exchange Agreement. Revenues derived under the provisions of this Ordinance may be used for the acquisition, construction, and reconstruction of the wastewater collection, treatment and disposal facilities of the District; to repay principal and interest on debt instruments; or to repay federal or state loans issued for the construction and reconstruction for said sewerage facilities, together with costs of administration and provisions for necessary reserves. Book Page 165 r - r ' I L : I L L . f Ll, L Section 2: That the proponents of any application for annexation of any territory to the District are requesting that the annexed property become a part of the District's jurisdiction, and that by doing so, they become entitled to receive the benefits of having access to the use of the extensive capital facilities system and to receive the District's service, and shall, as a condition to securing approval of the Board of Directors of the District to such annexation, agree to and comply with the following requirements: A. Payment of all administrative costs incurred by the District in processing the annexation. B. Payment of annexation acreage fees, as follows: Beginning January 1, 2004, the sum to be paid for annexation of territory to the District for which no tax exchange is negotiated between all affected agencies is hereby fixed: Consolidated Revenue Area Nos. 1-13: $4,235/acre Revenue Area No. 14: N/A C. The annexed territory shall be subject to the terms and conditions of all Ordinances and Resolutions pertaining to fees for connection to the District's facilities and use of said facilities, including but not limited to, industrial discharge permit fees, capital facilities capacity charges, and sewer service user fees. D. The annexed territory shall be annexed into an appropriate local sewering agency, or obtain the written approval of the designated local sewering agency, such as a city, for the purpose of obtaining access to and use of the local sewer system, including pumping stations and force mains, which connects to the District's facilities and system. E. The territory, upon annexation, shall be subject to all ad valorem taxes required for the retirement of the existing and future bonds of the District, and all other applicable ad valorem taxes of the District. F. In the case of territory outside of the District's adopted sphere of influence that is provided service pursuant to District Resolution 99-05, Section 2 (as the same may be amended from time to time), the following areas shall not be subject to fees equivalent to annexation fees: • That portion of land that is subject to a permanent easement for open space preserve or dedication for open space preserve. This exception shall not apply to areas that are internal to developments. Portions of property to be used for public and private parks intended for recreation purposes shall be subject to the fees. Individual open space areas that are surrounded or substantially surrounded by development shall be subject to the fees. • Land that is designated for use as a golf course. except that all portions of golf course land which are utilized for access road , parking, and clubhouse shall be included. • Land designated for use as a flood control or water quality basin . Book Page 166 If the use of any portion of territory previously exempted from payment of the fees hereunder is changed to a non-exempt use. the then-owner of that portion of the territory shall pay the fees equivalent to annexation fees at the amount then in effect for that portion of the territory that is no longer exempt. Section 3: The General Manager is hereby authorized and directed to establish procedures and fees for processing annexation of territory to the District. Said procedures may include provisions for collection by the District of fees charged by other local and state agencies involved in the annexation process for submittal to said agencies by the District on behalf of the annexation proponent. The District's Staff is hereby directed to provide the proponents of any proposed annexation a copy of procedures and fee schedules established pursuant to the authority of this Section. Section 4: That the Staff be directed to transmit to the Orange County Local Agency Formation Commission a certified copy of this Ordinance. Section 5: If any of the provisions of this Ordinance, or the application to any persons or circumstance are held invalid by order of Court, the remainder of this Ordinance, or the application of such provision to other persons or other circumstances, shall not be affected. Section 6: That the provisions of this Ordinance shall become effective thirty (30) days after adoption and shall apply to all annexations to the District on or after said date. Section 7: That Ordinance No. OCSD -21 is repealed effective upon the effective date of this Ordinance. Section 8: That the Secretary of the Board shall certify to the adoption of this Ordinance and shall cause a summary to be published in a newspaper of general circulation as required by law. PASSED AND ADOPTED by the affirmative vote of not less than two-thirds of the Board of Directors of the Orange County Sanitation District at a regular meeting held ____ ,2006. ATTEST: Secretary, Board of Directors Orange County Sanitation District BRADLEY R. HOGIN GENERAL COUNSEL Chair, Board of Directors Orange County Sanitation District Book Page 167 Staff has re-evaluated every project in the Validated Capital Improvement Program and many newly proposed projects as a part of the 2006-07 and 2007-08 budget preparation process. Approximately $4 7 4 million of budgeted construction costs will be delayed or deferred. In addition, the Sanitation District contracted with Carollo Engineers to complete a Revenue Program and Rate Analysis study. The result of these efforts was to reduce projected 2006-07 and 2007-08 single family residential rate (SFR) increases, the basis for all sewer service charges, from 20.0% to 14.625%. PROJECT/CONTRACT COST SUMMARY Without a Board action (by 2/3 majority), the SFR rate for 2006-07 will remain at $151.00 per year. The $173 rate recommended for 2006-07 will generate approximately $167.6 million of user fees; an annual increase of $21.0 million over the prior year. There are no extraordinary costs associated with the recommendation. BUDGET IMPACT [81 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. D Not applicable (information item). Applies to future budget periods ADDITIONAL INFORMATION Rate Increase Chronology June 2003 1) 1 n June 2003, the Board approved a revised Capital Improvement Plan (GIP). 2) To support this GIP, staff recommended a five-year plan which included rate increases averaging 20%. 3) The Board directed staff to issue a Proposition 218 public notice stating the rates would increase by an amount not to exceed a total of 20% annually increase over the next five year period. 4) While the increases were tentatively approved and noticed, the Board chose not to implement the full 20% increase for 2003/04. 5) The Board did discussed alternatives between 10-20%. 6) Ultimately, the Board acted to implement a 15% increase in 2003/04. H:ldeptlagenda\FAHRIFAHR2006\0406\06.06-2B.Ord 30.doc Revised: 06/04/03 Book Page 169 Page2 l Results of Rate Review Using flow, growth, capital improvement program, and Operation and Maintenance assumptions provided by the Sanitation District, Carollo developed an independent rate model. The results of their study closely matched the in-house model developed by District staff, calling for SFR annual rate increases approximating 14.25-14.50 percent over the next two years. In addition, the Carollo rate model developed proposed revised capital facility capacity charges (CFCC) that increases the benchmark 3-bedroom, SFR from $2,890 to $4,360, or 50.9 percent, and the average demand for commercial industrial from $1,050 to $1,306, or 24.4 percent. These increases are reflective of the increase in the GIP program in June 2005 from $1.94 billion to 2.38 billion. The CFCC SFR increase was more substantial than the Commercial/Industrial rate due to the nature of the GIP program. The majority of the CIP program is due to the increase in treatment standards that is concentrated on improved flow treatment as opposed to increased BOD and TSS treatment, two variables that impact Commercial/Industrial customers more so than flow. The previous CFCC rates have not been increased over the last two and one-half years. It has generally been the practice of the Sanitation District not to update CFCC rates until the completion of an Interim Strategic Plan Update, which generally occurs only once in approximately five years. With the implementation of this new rate ordinance, staff is also recommending that these fees be adjusted annually to reflect the current value of the facilities or the current cost of capital projects. It is recommended that annual cost escalator be based on a commonly accepted price indicator; the Engineering News Record Construction Cost Index for Los Angeles. ALTERNATIVES None. CEQA FINDINGS N/A ATTACHMENTS 1. Capital Improvement & Rehabilitation, Refurbishment, Replacement Program 2. Revenue Program and Rate Update Report from Carollo Engineers 3. Ordinance No. OCSD-30 LT:lc H:\dept\agenda\FAHRIFAHR2006\0406106.06-28.Ord 30.doc Revised: 06/04/03 Book Page 171 Page4 r r [ l l l Comparative Treatment Costs Partial Total (O&M. ~ance. Lab) Cost/MG Cost/MG San Diego ................... $ 1,621 City of Los Angeles ....... $ 1,261 Modesto ..................... $ 1,252 OCSD ........................ $1,246 ....... $ 731 LA County San District .................... $ 767 rov2J/1lJ08 Book Page 174 CIP Oversight Workshop March 29, 2006 Questions? 3 f l Orange County Sanitation District Revenue Program and Rate Update FINAL April 2006 Book Page 175 L Orange County Sanitation District Revenue Program and Rate Update Final Report TABLE OF CONTENTS 1.0 INTRODUCTION ......................................................................................................... 1 1. 1 Purpose and Scope ........................................................................................... 1 1.1.1 Purpose ................................................................................................ 1 1.1.2 Scope of Work .................................................................................... 1 1.2 Background ....................................................................................................... 1 1.3 Project Findings and Recommendations ........................................................... 2 2.0 ASSUMPTIONS AND DATA ....................................................................................... 2 2.1 Flow and Growth Assumptions .......................................................................... 2 2.1.1 Flows .................................................................................................. 2 2.1.2 Equivalent Dwelling Units ................................................................... 3 2.2 User Rate Categories ........................................................................................ 4 2.3 Capital Facility Capacity Charge (CFCC) Categories ....................................... 4 2.4 Capital Improvement Program .......................................................................... 5 2.5 Functional Allocation ......................................................................................... 6 2.6 Operations and Maintenance Expenditures ...................................................... 8 2. 7 Existing Financial Information ........................................................................... 8 3.0 REVENUE REQUIREMENT ANALYSIS ..................................................................... 9 3.1 Introduction ........................................................................................................ 9 3.2 Funding Sources ................................................................................................. 9 3.3 Findings and Recommendations ..................................................................... 12 4.0 RATE STRUCTURE ANALYSIS ............................................................................... 14 4.1 Introduction ...................................................................................................... 14 4.2 Revenue Needs ............................................................................................... 15 4.3 Functional Allocation ....................................................................................... 16 4.4 Unit Costs ........................................................................................................ 19 4.5 Customer Category Rates ............................................................................... 21 4.6 Findings and Recommendations ...................................................................... 21 5.0 CAPITAL FACILITIES CAPACITY CHARGE ANALYSIS .......................................... 22 5.1 Introduction ....................................................................................................... 22 5.2 Methodology .................................................................................................... 23 5.2.1 Approach and Assumptions ............................... -.............................. 23 5.2.2 CFCC Calculation ............................................................................. 24 5.3 Findings and Recommendations ..................................................................... 27 APPENDIX A APPENDIX B DRAFT -April 6, 2006 Project Calculations User Categories H:\Client\Ocsd_PHXVl/\7408A00\Rpt\Revenue Program & Rate.doc Book Page 176 Table 2.1 Table 2.2 Table 2.3 Table 2.4 Table 2.5 Table 3.1 Table 3.2 Table 3.3 Table 4.1 Table 4.2 Table 4.3 Table 4.4 Table 4.5 Table 4.6 Table 4.7 Table 4.8 Table 4.9 Table 4.10 Table 4.11 Table 5.1 Table 5.2 Table 5.3 Table 5.4 Table 5.5 Table 5.6 LIST OF TABLES Summary of Total Projected Treatment Plant Flows ......................................... 3 Historical and Projected Equivalent Dwelling Units ........................................... 3 Operation and Maintenance Cost Allocation to Billable Constituents ............... 6 Capital Cost Allocations to Billable Constituents ............................................... 7 CIP Billable Constituents Cost Breakdown (Millions of Dollars) ........................ 8 Outstanding Certificates of Participation Debt at July 1, 2005 ........................ 10 FY 2006/07 Reserve Requirements (Millions of Dollars) ................................ 11 Revenue Requirements ................................................................................... 13 Sewer Service Charges ................................................................................... 15 Expenditures and Off-Setting Revenues ......................................................... 16 Allocation Percentage Basis ............................................................................ 17 Functional Allocation of Costs ......................................................................... 18 Total Flow and Load Information ..................................................................... 19 Flow and Load per EDU .................................................................................. 19 Total Annual Flow and Loads .......................................................................... 20 Unit Cost Calculation ....................................................................................... 20 Annual Charge per EDU Calculation ............................................................... 20 Proposed Industrial User Sewer Service Charges ......................................... 21 Projected Sewer Service Charges .................................................................. 22 CIP Billable Constituents Cost Breakdown ..................................................... 24 Expansion Expenditure Allocation ................................................................... 25 Residential CFCC Calculation ......................................................................... 25 Commercial-Industrial CFCC Calculation ........................................................ 26 Supplemental Capital Facilities Capacity Charge Calculation ......................... 27 Recommended CFCC and SCFCC ................................................................. 28 DRAFT -April 6, 2006 H:\Client\Ocsd_PHXWl7408AOO\Rpt\Revenue Program & Rate.doc Book Page 177 ii r l r r f ' I f l L I L Orange County Sanitation District DRAFT REPORT 1.0 1.1 1.1.1 INTRODUCTION Purpose and Scope Purpose The purpose of this report is to present the findings of a study of the District's sewer service and capital facilities capacity charges (CFCC). The study evaluated the District's wastewater utility revenue needs, and developed sewer service rates and wastewater capital facilities capacity charges to equitably distribute costs among utility customers. 1.1.2 Scope of Work The scope of work includes the following: • Perform a revenue requirement analysis; • Evaluate the District's sewer service charges; • Evaluate the District's wastewater capital facilities capacity charges. 1.2 Background The Orange County Sanitation District is a public agency responsible for regional wastewater collection, treatment, and disposal. The District provides service to an area of approximately 471 square miles with a population of approximately 2.5 million people in the northern and central portion of the County, treating approximately 243 mgd of wastewater. The District owns sanitary sewerage facilities with a replacement value of approximately $5.38 billion. On July 17, 2002, the Board of Directors approved Resolution No. OCSD-14, "Establishing the Policy for Level of Treatment of Wastewater Discharged into the Ocean." This resolution established the District's policy to treat all wastewater discharges into the ocean to secondary treatment standards. Implementation of full secondary treatment standards is scheduled to be completed on or before December 31, 2012. The wastewater system must also meet other demands, including service to a growing population, odor control improvements, and air quality protection needs. Over the next 16 years, the District's overall Capital Improvements Plan (CIP) is projected to total $1.88 billion. All capital costs presented within this report are stated in 2006 dollars, unless otherwise denoted. DRAFT -April 6, 2006 H:\Client\Ocsd_PHXIM7408A00\Rpt\Revenue Program & Rate.doc Book Page 178 1 1.3 Project Findings and Recommendations It is recommended that the District increase the annual sewer service charge from $151 to $172.50 per equivalent dwelling unit (EDU) in FY 2006/07. It is also recommended that the District implement annual increases between 14.25 percent and 11. 75 percent in subsequent years. This projection should be revisited on a periodic basis, as the District updates its operational and capital projections. It is further recommended that the District increase the Residential Capital Facilities Capacity Charge from $2,890 to $4,363 per EDU and Commercial-Industrial Capital Facilities Capacity Charge from $1,050 to $1,307 per 1,000 square feet in FY 2006/07. In subsequent years, it is recommended that the CFCC be increased with inflation. Finally, it is recommended that the District increase the Supplemental Capital Facilities Capacity Charge to $0.001344 per gallon, $0.754730 per lbs. of 8.O.D., and $0.091720 per lbs. of T.S.S. The basis for these recommendations is presented within the report herein. The project calculations are presented in Appendix A of this report. 2.0 ASSUMPTIONS AND DATA 2.1 Flow and Growth Assumptions According to the Interim Strategic Plan Update (June 2002), the population of the District's service area is projected to grow to 2. 7 million by the year 2020. Average flow rates at both treatment plants are projected to increase to a total combined flow of 278 million gallons a day by 2020. The average yearly influent flow to the District has remained relatively stable for the preceding five years. The wastewater flow for Fiscal Year 2000-01 was 246 mgd (average annual basis) and for Fiscal Year 2004-05 was 243 mgd (average annual basis). The highest flows of 500 mgd (peak hour wet weather basis) were recorded during El Nino storm periods in December 1997 and February 1998. There were no sewer failures or overflows during these events. 2.1.1 Flows Projected flows treated by the District are presented within Table 2.1 . DRAFT -April 6, 2006 H:\Client\Ocsd_PHXW17408A00\Rpt\Revenue Program & Rate.doc Book Page 179 2 F I r ,- t r l r r L t L L ·L L Table 2.1 Summary of Total Projected Treatment Plant Flows Revenue Program and Rate Update Orange County Sanitation District Flow (mgd) Flow Source 2005 2010 2015 2020 Service Area Flows 233 238 242 246 -Irvine Ranch Water District (IRWD) 13.5 14.0 15.0 15.0 -Santa Ana Watershed Protection Agency (SAWPA) 9.50 12.0 15.0 17.0 Total District Flows 256 264 272 278 Source: Orange County Sanitation District, Nov 2004 Board Agenda Report. 2.1.2 Equivalent Dwelling Units The District provided customer growth figures. Two methods were used to estimate growth. One method projects growth based on.historic growth rates. The other method projects growth based on projections provided by the Center for Demographic Research at the California State University at Fullerton. The number of customers or connections to a sewer system is often expressed in Equivalent Dwelling Units. An Equivalent Dwelling Unit (EDU) is a measurement of the demand on sewer and treatment facilities in terms of flow and strength that is equivalent to that produced by a single-family home. Biological Oxygen Demand (BOD) and Total Suspended Solids (TSS) measure influent strength. Both residential and commercial sewer service charges, as well as CFCCs, are based on EDUs. The historical number of customers served by the District for the Fiscal Years 2000-01 through 2004-05, identified in Equivalent Dwelling Units ("EDUs"), are set forth in Table 2.2 below. Table 2.2 Historical and Projected Equivalent Dwelling Units Revenue Program and Rate Update Orange County Sanitation District Fiscal Years 2000-01 through 2009-10 Fiscal Year Historical EDUs 2000-01 883,603 2001-02 898,031 2002-03 897,757 2003-04 884,169 2004-05 893,501 (1) EDU growth during the projection period is estimated at approximately 0.4% per annum. Source: Orange County Sanitation District. DRAFT -April 6, 2006 3 H:\Client\Ocsd_PHXIM7408A00\Rpt\Revenue Program & Rate.doc Book Page 180 The District calculates the number of EDUs based on the annual revenues divided by the current single-family residential (3-bedroom house) annual sewer service charge. Based on projected revenues for FY 2006/07 of $147.2 million and a current annual sewer service charge of $151 per EDU, the District is assumed to serve 975, 123 EDUs. This EDU count is used as the basis for the analysis presented within this study. 2.2 User Rate Categories Users are billed a flat wastewater service charge based on the property use classification maintained by the County Assessor. The District maintains a listing of average flow and wastewater strength discharges for each property type, which is used to develop the user rates. The single family residential (SFR) sewer service charge is based on typical flow and loadings for an average 3-bedroom home and serves as the base rate to calculate rates for other users. Multi-family residential users are charged 70 percent per unit of the SFR rate. Commercial and the majority of industrial users are charged a percentage of the SFR rate as specified in Ordinance No. OCSD-26 (OCSD-26), the Fees and Charges Ordinance. These use factors are based on the average flow and strength characteristics for the type of property, charged on a per 1,000 square-foot basis. Users with unusually high flows and/or strength of wastewater, known as "Permit Users," pay individually calculated charges, based on measured wastewater flows and strengths. The District currently has 30 different residential and commercial use codes. See Appendix B for a complete listing of user rate categories, contained in OCSD-26. 2.3 Capital Facility Capacity Charge (CFCC) Categories The Capital Facility Capacity Charge is a one-time charge imposed when a building or structure is newly connected to the District's system, or when an existing structure or category of use is expanded or increased. The current base charge is $2,890, calculated based on the flow and wastewater loadings for an average 3-bedroom home. Adjustments to the base charge are delineated in OCSD-26. The rates for each size of SFR and MFR are determined as a relative percentage higher or lower than the base (3 bedroom SFR) of 1.0, depending on the unit's size. Commercial and industrial CFCCs are classified as "Low," "Average," or "High" demand connections, based on the property type. Significant commercial-industrial users and special purpose dischargers are subject to a Supplemental Capital Facilities Capacity Charge for discharges in excess of baselines established for flow, BOD, and TSS. A full description of the baselines and supplemental CFCC rates are described in sections 3.07 -3.10 of OCSD-26. A "Significant Commercial-Industrial User" (SCIU) is an entity that discharges commercial or industrial flow in an amount greater than 25,000 gpd, or BOD greater than 150 pounds DRAFT -April 6, 2006 H:1Client\Ocsd_PHXIM7408A00\Rpt\Revenue Program & Rate.doc Book Page 181 4 r l l t l, L L L per day, or TSS greater than 150 pounds per day, or who is required to obtain a Waste Discharge Permit due to having federally or District regulated or significant discharges. A "special purpose discharger" (SPD) is an entity who discharges an amount greater than 25,000 gpd (excluding domestic, industrial, or commercial) and who is required to obtain a Special Purpose Discharge Permit as prescribed in Section 305 of Ordinance No. OCSD-01. 2.4 Capital Improvement Program The District developed the current Capital Improvement Program ("CIP") in combination with the Interim Strategic Plan. The District expects to meet future demands on the Wastewater System through the CIP. This program has been developed to satisfy anticipated regulatory requirements, increased population, additional treatment requirements, conservation, energy, and other resource-savings considerations, odor control improvements, and air quality protection needs. Over the next 16 years, the District's CIP will accomplish: • Major rehabilitation of the existing headworks, primary treatment, secondary treatment, outfall pumping, and solids handling facilities at both treatment plants. • Replace and rehabilitate 17 of the District's outlying pumping stations, and 44 trunk sewer improvement projects. • Fund cooperative projects to help cities upgrade their sewer systems. • Disinfect the District's ocean discharge to reduce bacterial levels below State bathing standards. • Reclaim 70 millions of gallons per day of the District's effluent, or nearly one-third of the total daily flow (Groundwater Replenishment System). • Achieve full secondary treatment standards. In preparation of each year's Budget, the District conducts an Annual CIP Validation Study to ensure that the scopes of the projects were necessary, and that the cost estimates were accurate. As a result of the completion of the CIP Validation Study and the Secondary Treatment Peer Review in the spring of 2003, a revised CIP was developed to meet secondary treatment standards as quickly as possible, while providing for increased flows and rehabilitation and refurbishment of existing facilities. Implementation of full secondary treatment standards is scheduled to be completed on or before December 31, 2012. The CIP, as included within this study, totals $1 .71 billion in 2006 dollars ($1.86 billion in nominal dollars) between FY 2006/07 and FY 2020/21. Of this total, $1.36 billion will be undertaken for replacemenUrehabilitation and treatment upgrades, while $0.35 billion will be undertaken to provide capacity for projected growth. The CIP expenditures over the next DRAFT -April 6, 2006 5 H:\Client\Ocsd_PHXVV\7408A00\Rpt\Revenue Program & Rate.doc Book Page 182 five years are projected to total $1 .40 billion in 2006 dollars; an annual average of $281 million. 2.5 Functional Allocation In addition to the breakdown between replacement and expansion projects, it is also necessary to allocate these costs to billable constituents that can be measured both at the treatment facilities and for each user to enable the capital and O&M project costs to be charged to existing and future users. To accomplish this, the costs for each project were broken into the costs associated with treatment of the billable constituents: flow and strength (Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS)). An example of these allocations are shown later in the report in Table 4.4. The allocation of O&M expenditures by unit process are illustrated in Table 2.3. Table 2.3 Operation and Maintenance Cost Allocation to Billable Constituents Revenue Program and Rate Update Orange County Sanitation District Allocation Percentages (%) Treatment Process Flow BOD TSS Collection and Diversion 90 5 5 lnterplant 90 5 5 Headworks 75 5 20 Primary Sedimentation 15 25 60 Activated Sludge Process -100 - Oxygen Activated Sludge -100 - Blower Equipment and Structures -100 - Aeration Equipment and Structures -100 - Trickling Filters -100 - Secondary Sedimentation -100 - Sludge Thickening !1l -25 75 Digestion -25 75 Solids Handling -20 80 Solids Disposal -45 55 Effluent Disposal 100 -- Non-Assignable Costs <2l 32 33 34 Source: 1998 Determination of Financial Rates and Charges Report. (1) Allocation of sludge thickening was changed to reflect co-thickening process. (2) Percentage based on weighted average for all other allocated costs. DRAFT -April 6, 2006 H:\Client\Ocsd_PHXVll\740BA00\Rpt\Revenue Program & Rate.doc Book Page 183 6 r r [ L L For the capital related costs, the allocation basis is illustrated below in Table 2.4. Table 2.4 Capital Cost Allocations to Billable Constituents Revenue Program and Rate Update Orange County Sanitation District Allocation Percentages (%) Unit Process Flow BOD TSS Collection and Diversion 90 10 - lnterplant 90 10 - Headworks 75 5 20 Primary Sedimentation -30 70 Activated Sludge Process -100 - Oxygen Activated Sludge -100 - Blower Equipment and Structures -100 - Aeration Equipment and Structures -100 - Trickling Filters --100 0 Secondary Sedimentation -70 30 Sludge Thickening <1> -25 75 Digestion -25 75 Solids Handling -20 80 Solids Disposal -45 55 Effluent Disposal 100 -- Non-Assignable Costs <2> 44 37 19 Source: 1998 Determination of Financial Rates and Charges Report. (1) Allocation of sludge thickening was changed to reflect co-thickening process. (2) Percentage based on weighted average for all other allocated costs. Table 2.5 presents the replacement and expansion CIP costs broken into the billable constituents from FY 2006/07 to FY 2020/21. These capital expenditures are stated in 2006 dollars. DRAFT -April 6, 2006 7 H:\Client\Ocsd_PHXIM7408A00\Rpt\Revenue Program & Rate.doc Book Page 184 Table 2.5 CIP Billable Constituents Cost Breakdown (Millions of Dollars) Revenue Program and Rate Update Orange County Sanitation District Flow BOD TSS Total CIP Costs Replacement $499 $528 $333 $1,360 Expansion $158 $174 $ 23 $ 354 2.6 Operations and Maintenance Expenditures The revenue requirement analysis uses the District's FY 2005/06 budgets as the basis for forecasting future revenue needs. Expenditures are assumed to increase commensurate with cost inflation and projected cost increases associated with increases in wastewater flows due to growth and higher treatment standards. Revenues and expenses are projected for future fiscal years using the following annual escalation factors, as agreed upon with the District: • General Cost Inflation: 4% • Power & Chemicals: 7% • Labor Inflation: 6% • FY 2005/06 Construction Cost Inflation: 5% • Customer Growth: 0.4% • FY 2005/06 Fund Earnings: 4% This analysis incorporates the District's proposed FY 2006/07 and FY 2007/08 operating budgets. 2. 7 Existing Financial Information The background financial information supplied by the District included: existing debt service and future payments, current reserve ending fund balance, other future non-treatment alternative-related expenses, other future revenues, future property taxes, and other miscellaneous financial information. The District also provided revenues and expenses associated with providing service to Irvine Ranch Water District (IRWD), Santa Ana Watershed Project Authority (SAWPA), and other miscellaneous items. DRAFT -April 6, 2006 8 H:\Client\Ocsd_PHXWl7408A00\Rpt\Revenue Program & Rate.doc Book Page 185 r r l f i l ! L f '-- L L L L 3.0 REVENUE REQUIREMENT ANALYSIS 3.1 Introduction The revenue requirement analysis determines the amount of rate revenue needed in a given year to meet a utility's expected financial obligations. At least two separate tests must be met in order for rates to be sufficient: 1) Cash Flow Test -A utility must generate annual utility revenues adequate to meet general cash needs. 2) Bond Coverage Test -Annual rate revenues must satisfy debt coverage obligations on Certificates of Participation. The cash flow test identifies projected cash requirements in each given year. Cash requirements include operations and maintenance expenses, debt service payments, policy-driven additions to working capital, miscellaneous capital outlays, replacement funding, and rate funded capital expenditures. These expenses are compared to total annual projected revenues. Shortfalls are then used to estimate needed rate increases. The bond coverage test measures the ability of a utility to meet both legal and policy-driven revenue obligations. Because the District has variable rate COPs, it is required to collect sufficient funds through rates to meet all ongoing operational and maintenance expenses, as well as 2.00 times the total debt service requirements due in a year. A certificate of participation (COP) is a debt instrument where the purchaser receives a share in an installment sale arrangement with the District. Revenues must be sufficient to satisfy both tests. If revenues are found to be deficient through one or both of the tests, then the greater deficiency (shortfall) drives the rate increase. 3.2 Funding Sources Over the next ten years, the District projects $1.69 billion in future wastewater treatment improvements and in future collection system capital improvements, as stated in 2006 dollars. The District expects to fund these improvements through a combination of revenues, reserves, and COPs. The District expects to issue approximately $1.0 billion in certificates of participation over the next ten years. Payments with respect to any such indebtedness are expected to be executed and delivered as Additional Obligations under the Master Agreement on a parity with the Installment Payments. Current Revenues Sewer Service Charges -User charges can be increased to accumulate reserves to cash fund capital projects. The District established a Capital Improvement Reserve to fund annual increments of the capital improvement program with a target level at one half of the DRAFT -April 6, 2006 9 H:\Client\Ocsd_PHXVVl7408A00\Rpt\Revenue Program & Rate.doc Book Page 186 average annual capital improvement program through the year 2020. The Capital Replacement/Renewal Reserve was established to provide thirty percent of the funding to replace or refurbish the current collection, treatment, and disposal facilities. Further, for this analysis, we have used a "rate smoothing" strategy for meeting future rate requirements. Projected rate increases in FY 2006/07 are designed to both flatten annual rate increases and allow for the accumulation of reserves. This approach is designed to reduce long-term costs to the customers by reducing the District's debt requirements and helping maintain their current bond rating. Capital Facilities Capacity Charges -CFCCs are a one-time charge imposed on new development or expansion of existing users that increase demand on the system. They provide for equitable cost recovery of growth-related costs. New Debt The District can issue Certificates of Participation (COPs) to fund capital-related projects. By issuing debt, the Utility is legally required to maintain a 1.25x coverage ratio on the maximum outstanding annual debt service. This means that rates must cover annual cash operating expenses plus 125 percent of the maximum annual outstanding debt service payments. This coverage requirement is delineated within The Master Agreement for District Obligations, dated August 1, 2000. However, because some of the District's outstanding COPs are variable rate, a more stringent coverage ratio of 2.00x is imposed. Currently the District has Senior Obligations Outstanding payable on a parity with the Installment Payments under the Installment Purchase Agreement. Table 2.6 below describes the District's outstanding certificates of participation as of July 1, 2005. Table 3.1 Outstanding Certificates of Participation Debt at July 1, 2005 Revenue Program and Rate Update Orange County Sanitation District Principal Issue Outstanding Final Amount Date Balance Maturity 1992 Certificates $160,600,000 12/3/92 $100,275,000 8/1/13 1993 Certificates 46,000,000 9/2/93 42,050,000 8/1/16 Series 2000 Certificates 218,600,000 8/13/00 199,000,000 8/1/30 Series 2003 Certificates 280,000,000 8/26/03 280,000,000 2/1/33 Series 2006 Certificates 200,000,000 3/1/06 200,000,000 2/1/36 Total Long-Term Debt $905,200,000 $821,325,000 DRAFT -April 6, 2006 H:\Client\Ocsd_PHXVV\7408A00\Rpt\Revenue Program & Rate.doc Book Page 187 10 r f [ L L L L Reserves The District maintains eight separate categories for its reserve funds. The following table delineates the projected reserve requirements for FY 2006/07. Increases to the Capital Improvement Program Reserve and Debt Service Required Reserves are attributable principally to the funding of projected CIP cash flow and the Reserve Fund for the Certificates. Table 3.2 FY 2006/07 Reserve Requirements (Millions of Dollars) Revenue Program and Rate Update Orange County Sanitation District Cash Flow Requirements Reserve Operating Expenses $65 Certificate of Participation Payments 58 Operating Contingencies Reserve 13 Capital Improvement Program Reserve 85 Catastrophe and Self Insurance 57 Capital Replacement and Refurbishment 53 Debt Service Required Reserves 92 Less: Adjustment to Reserves (40} Total $382 FY 2006/07 Projected Reserve Requirements. • The Cash Flow Requirements Reserve was established to fund operation, maintenance, and certificates of participation debt service expenses for the first half of the fiscal year, prior to the receipt of the first installment of the property tax allocation and sewer service user fees which are collected as a separate line item on the property tax bill. The level of this reserve is established as the sum of an amount equal to six months operations and maintenance expense and the total of certificates of participation debt service expenses due in the subsequent fiscal year. • The Operating Contingency Reserve was established to provide for non-recurring expenditures that were not anticipated when the annual budget and Sewer Service Charges were adopted. The level of this reserve is equal to ten percent of the District's annual operating budget. DRAFT -April 6, 2006 11 H:\Client\Ocsd_PHXWl7408A00\Rpt\Revenue Program & Rate.doc Book Page 188 • The Capital Improvement Reserve was established to fund annual increments of the capital improvement program with a target level at one half of the average annual capital improvement program through the year 2020. Levels higher and lower than the target can be expected while the long-term financing and capital improvement programs are being finalized. • The Catastrophic Loss, or Self-Insurance Reserve is established for property damage including fire, flood and earthquake, general liability, and workers' compensation. The level of reserve in this fund is maintained at a level to fund the District's non-reimbursed costs, which are estimated to be $57 million. • The Short-Term Capital Fund Reserve was created for specific short-term capital improvements such as the GWRS. • The Capital Replacement/Renewal Reserve was established to provide thirty percent of the funding to replace or refurbish the current collection, treatment, and disposal facilities. The current replacement value of these facilities is estimated to be approximately $5.38 billion. The initial reserve level for this fund was established at $50 million and is augmented by interest earnings and a portion of the annual Sewer Service Charges. • Debt Service Reserves are controlled by a trustee pursuant to the provisions of certificates of participation issues and is not available for the general needs of the District. • The Rate Stabilization Reserve accumulates all available funds that exceed the targets for all other reserves. The Rate Stabilization Reserve is a separate fund from the Rate Stabilization Account established under the Trust Agreement. These funds are applied to future years' needs and must be maintained at specified levels. There is currently no established target for this reserve. • Adjustments to the total reserves reflect ability of one reserve to support the requirements of other reserves. Not all reserves will be fully utilized at any given point. 3.3 Findings and Recommendations The results of the revenue requirements are summarized in Table 3. Annual rate increases are shown expressed on a percentage basis. DRAFT -April 6, 2006 12 H:\Client\Ocsd_PHXVV\7408A00\Rpt\Revenue Program & Rate.doc Book Page 189 r----"""-I Table 3.3 Revenue Requirements Revenue Program and Rate Update Orange County Sanitation District FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 ~o Revenues 2007 2008 2009 2010 2011 ~~ 3: "Tl User Charges $ 147,243,628 $168,898,748 $193,738,687 $222,231,836 $253,799,868 lr --i :s_, Other Operating Revenues 29,914,489 l"ll )> 26,056,728 24,950,157 25,758,603 27,586,547 :I:"C ~ ::::!. Non-Operating Revenues 55 ,560,000 58,338,000 61 ,254,900 64,317,645 67,533,527 -.J CJ) .i,._ 0 Intra-District Revenues ~N oO 90 Self-Insurance 2,599.000 2,599,000 2,599,000 ~CJ) 2,599,000 2.599,000 ;,:J Total Revenues $316,735,029 $353,846,885 ~ $ 231,459,356 $254,785,905 $283,351,191 "' :::, C: Expenditures "' "ll OJ a cc Ongoing Operating Expenses 0 iil 0 3 :I;' Qo Operating Expenses $ 129,308,110 $138 t 502 I 130 $147,292,361 $156,650,748 $166,614,622 ~ ;,:J O> (D Reserve Contributions (Q Cl. 0 CD 0 '""' Other Operating Expenses cc 0 Debt Service 57,786,240 70,669,047 87,907,206 102,721,906 114,608,054 Miscellaneous Capital Replacement Funding ---1,157,625 Rate Funded Capital Improvements 9,101 ,807 49,328,619 49,069,438 31,606,403 52,069,197 Bond Coverage Requirements 32,392,585 --19,246,819 52,662,367 43,169,890 Policy Driven Rate Increase 20,982,217 17,755,182 3,686,504 1,051,482 ------1,607,607 Total Expenditures $ 249,570,958 $276,254,977 $308,359,954 $344,692,906 $381,069,370 Revenues Surplus (Deficiency)· $ (18,111,602) $ (21,469,072) $ (25,008,763) $ (27,957,877) $ (27,222,485) Projected Rate Increase 14.25% 14.25% 14.25% 13.75% 11.75% * Surplus (Deficiency) before rate increase ..... (,) At the direction of the District, rate increases have been levelized (smoothed), to allow for gradual increase, eliminating significant rate spikes. Rate levelization provides two significant benefits. First, increasing rates over a multi-year period can help reduce rate shock to a utility's customers and allow them to better plan for projected increases. Second, by increasing rates over time in anticipation of large capital expenditures, the District will temporarily generate excess cash reserves through FY 2011/12, which can be used to cash fund a greater portion of the GIP, thus reducing the magnitude and costs of borrowing. Further, bond rating agencies (Moody's, Fitch ICBA, and Standard and Poor's) have placed increasingly greater weight on good business practices when assigning credit ratings. These business practices include, among others, balancing cash and debt financing, as well as the implementation of proactive rate increases, which demonstrate a municipality's commitment to meeting its stated and require level-of-service and environmental objectives. 4.0 RATE STRUCTURE ANALYSIS 4.1 Introduction Sewer service charges are developed to equitably allocate costs to users to operate, service debt, and perform repairs and replacements for wastewater collection and treatment systems. The overall procedure used to develop sewer service charges is as follows: • Revenue Needs. Define the annual revenue that must be recovered from sewer service charges and permit users. • Functional Allocation. Determine the percentage allocation of O&M and capital costs to the billable constituents: flow, Biochemical Oxygen Demand (BOD}, and Total Suspended Solids (TSS}, based upon the existing allocation methodology. • Unit Costs. Develop unit costs for each billable constituent by dividing the total cost allocated to that constituent by the total wastewater flow or loadings of that constituent. • Customer Category Rates. Develop rates for each customer category, by applying unit costs to estimated flows and related loadings for each category. The District collects Sewer Service Charges from property owners through the semi-annual property tax bill distributed by the County throughout the District, except in Revenue Area No. 14. Pursuant to the IRWD Agreement, the District receives payments from the Irvine Ranch Water District (the "IRWD"), which directly collects fees from customers through a monthly billing procedure in Revenue Area No. 14. In May 2005, the Board adopted Ordinance No. OCSD-26 increasing the FY 2005-06 single family residential rate 31 percent, from $115.00 to $151.00 per year. This increase was necessary in order to meet the District's cash flow needs due to the addition of disinfection treatment and other operating requirements. DRAFT -April 6, 2006 14 H:\Client\Ocsd_PHXVll\7408A00\Rpt\Revenue Program & Rate.doc Book Page 191 Table 4.2 Expenditures and Off-Setting Revenues Revenue Program and Rate Update Orange County Sanitation District FY 2006 Expenditures 2007 Ongoing Operating Expenses Operating Expenses $ 129,308,110 Reserve Contributions Other Operating Expenses Debt Service 57,786,240 Miscellaneous Capital - Replacement Funding - Rate Funded Capital Improvements 9,101,807 Bond Coverage Requirements 32,392,585 Policy Driven Rate Increases 20,982,217 Less Off-Setting Revenues Other Operating Revenues (26,056,728} Non-Operating Revenues (55,560,000} Intra-District Revenues - Self-Insurance (2,599 000) Total Revenue Needs: $ 165,355,230 In FY 2006/07, $165 million must be recovered through sewer service charges and permit user charges to cover the District's annual expenditures. 4.3 Functional Allocation The District's existing allocation methodology was used as the basis to develop sewer service charges. Bartle Wells Associates reviewed the District's allocation and concurred that the allocation was reasonable. Their findings are documented in the January 2006 draft report, "Review of Rates and Charges Report," which will be finalized in May 2006. This study does not modify the District's existing allocations. To develop sewer service charges, unit rates per unit of flow, BOD, and TSS are applied to standard flow and loading factors developed for most customer categories. Users with unusually high flows and/or strength of wastewater, known as "Permit Users," are charged based on measured wastewater flows and strengths. DRAFT -April 6, 2006 16 H:\Client\Ocsd_PHX\M7408A00\Rpt\Revenue Program & Rate.doc Book Page 193 [ L L L Table 4.3 presents a summary of the allocation percentage basis: Table 4.3 Allocation Percentage Basis Revenue Program and Rate Update Orange County Sanitation District Description Flow BOD TSS Treatment Expenditures 24% 31% 46% Plant-in-Service 55% 30% 15% GIP 44% 37% 19% Non-Assignable Costs 32% 33% 34% Table 4.4 illustrates how expenditures and offsetting revenues are allocated to flow, BOD, and TSS, based on the allocation percentage listed above. DRAFT -April 6, 2006 17 H:\Client\Ocsd_PHXWl7408A00\Rpt\Revenue Program & Rate.doc Book Page 194 lXJ 0 0 ~ ~ CQ Cl) -.a. co u, ~o ~~ ~ "Tl 0 -I [, ,,, )> :c "C >< -, s: = --SO) t- o, N ~o 90 Al 0) ~ f ::, C: (I) ~ (C iil 3 !IO ~ i::,_ 0 n ..... 00 Table 4.4 presents the allocation of costs to billable constituents: Table 4.4 Functional Allocation of Costs Revenue Program and Rate Update Orange County Sanitation District Functional Allocation Expenditures Flow BOO TSS Ongoing Operating Expenses Operating Expenses $129,308,110 24% 31% 46% As Treatment Expenditures Reserve Contributions --32% 33% 34% As All Others Other Operating Expenses New Debt Service 57,786,240 44% 37% 19% AsCIP Miscellaneous Capital --44% 37% 19% As CIP Rate Funded Capital Improvements --44% 37% 19% As CIP Replacement Funding 9,101,807 55% 30% 15% As Plant-in-Service Bond Coverage Requirements 32,392,585 44% 37% 19% AsCIP Policy Driven Rate Increases 20,982,217 32% 33% 34% As All Others Less Off-Setting Revenues 32% 33% 34% Other Operating Revenues (26,056,728) As All Others 32% 33% 34% Non-Operating Revenues (55,560,000) As All Others Intra-District Revenues --32% 33% 34% As All Others Self-Insurance (2,599,000) 32% 33% 34% As All Others Subtotals: $165,355,230 $ 53,521,546 $ 55,175,631 $ 56,658,053 [ L L 4.4 Unit Costs Residential and Commercial Sewer Service Charges Calculation Residential and commercial sewer service charges are calculated on a EDU base charge. Each residential and commercial category has a defined flow and strength (BOD and TSS) assumption. To develop sewer service charges, unit rates per unit of flow, BOD, and TSS are applied to standard flow and loading factors developed for most customer categories. a) EDU Defined Equivalents Calculation. The number of existing users was determined using a fee-based approach. The number of EDUs was determined by taking the total revenue and dividing by the Single Family Residential rate of the same year. The projected number of customers served by the District for the Fiscal Year 2006-07, identified in EDUs, is 975, 123. The following table presents flow and load information from the District's plants. Table 4.5 Total Flow and Load Information Revenue Program and Rate Update Orange County Sanitation District Description Flow (mgd) BOD Load TSS Load (ppd) (ppd) Plant 1 and 2 220 433,939 466,026 The flows and loadings per EDU treated by the District in FY 2004/05 are as follows: Table 4.6 Flow and Load per EDU Program and Rate Update Orange County Sanitation District BOD TSS Flow Concentration Concentration (flow-gpdltotal (BOD-mglUtotal (TSS-m gll/total Description EDUs) EDUs) EDUs) EDU Equivalent Calculations 226 236 253 (w/o SAWPA and IRWD) b) Total Annual Flow and Loads Calculation. Based on these flows and loadings, the totals are as follows: DRAFT -April 6, 2006 19 H:\Client\Ocsd_PHXVl/\7408A00\Rpt\Revenue Program & Rate.doc Book Page 196 Table 4.7 Total Annual Flow and Loads Revenue Program and Rate Update Orange County Sanitation District Description Flow (mgd) BOD Load (lbs) TSS Load (lbs) Customer Information 80,464,880 158,387,684 170,099,310 Total Annual Flow and Loads c) Unit Cost Calculation. The unit cost was calculated by taking the cost allocations for flow, BOD and TSS, and dividing it by the total annual flow and loads. Table 5 presents the unit cost per flow, BOD and TSS. Table 4.8 Unit Cost Calculation Revenue Program and Rate Update Orange County Sanitation District Flow BOD TSS Cost Allocation $53,521 ,529 $55,175,615 $56,658,043 Total Flow (1,000 gal) Total B.O.D. (lbs) Total T.S.S. (lbs) Total Annual Flow and Loads 80,464,880 158,387,684 170,099,310 = $ / 1,000 gals $/lbs B.O.D $/lbs B.O.D Unit Costs $0.67 $0.35 $0.33 d) Annual Charge per EDU Calculation. Table 4.9 Annual Charge per EDU Calculation Revenue Program and Rate Update Orange County Sanitation District Flow BOD TSS Equivalent Dwelling Unit Gal/Day B.O.D. (mg/I) T.S.S. (mg/I) Defined Flows and Loads 226 236 253 1,000 GalNr. B.O.D. (lbs)/ Yr. T.S.S. (lbs)/ Yr. 83 164 176 Annual Charge per EDU $54.89 $57.19 $58.73 Total: $170.81 DRAFT -April 6, 2006 20 H:\Client\Ocsd_PHXW\7408A00\Rpt\Revenue Program & Rate.doc Book Page 197 r I r I L L L 4.5 Customer Category Rates The single family residential (SFR) sewer service charge is based on typical flow and loadings for an average 3-bedroom home and serves as the base rate to calculate rates for other users. Users are charged a percentage of the SFR rate as specified in Ordinance No. OCSD-26 (OCSD-26), the Fees and Charges Ordinance. These use factors are based on the average flow and strength characteristics for the type of property, charged on a per 1,000 square-foot basis. Eg. 1: Multi-family residential with factor 0. 7 Annual cost $170.81 X 0.7 = $119.57 Eg. 2: Neighborhood shopping center with factor 1.39 Annual cost $170.81 X 1.39 = $237.43 Eg. 3: Take-out restaurant with factor 3.0 Annual cost $170.81 X 3.0 = $512.43 Industrial User Sewer Service Charges The District's industrial users are charged individually based on the measured quantity of each of the billable constituents. The calculation of the charges is based on the user's flows and loads. Table 4.10 presents the unit costs that are recommended. Table 4.10 Proposed Industrial User Sewer Service Charges Revenue Program and Rate Update Orange County Sanitation District $ I 1,000 gals $/lbs 8.0.D $/lbs 8.0.D Unit Costs $0.67 $0.35 $0.33 4.6 Findings and Recommendations It is recommended that the District adopt a sewer service charge of $170.81 per EDU per year for FY 2006/07. In subsequent years, we recommend that the District increase sewer service charges between 11.25 percent and 14.25 percent annually, as illustrated in Table 4.11. DRAFT -April 6, 2006 21 H:\Client\Ocsd_PHXIM740BA00\Rpt\Revenue Program & Rate.doc Book Page 198 Table 4.11 Projected Sewer Service Charges Revenue Program and Rate Update Orange County Sanitation District Annual Single Family Percentage Fiscal Year Residence Rate Increase 2006-07 $172.50 14.25% 2007-08 $197.00 14.25% 2008-09 $225.25 14.25% 2009-10 $256.25 13.75% 2010-11 $286.25 11.75% 5.0 CAPITAL FACILITIES CAPACITY CHARGE ANALYSIS 5.1 Introduction Capital Facilities Capacity Charges (formerly known as connection fees) are one-time fees paid at the time property is developed and connected to the Wastewater System. The fees are levied to pay a portion of the District's capital costs and for access to capacity in the Wastewater System. Currently, the District has Capital Facilities Capacity Charges of $2,890 per residential unit {three-bedroom) and $1,050 per 1,000 square feet for commercial and industrial users. Under the current industrial use ordinance, additional CFCCs, referred to as Supplemental Capital Facilities Capacity Charges, can be imposed on industrial users who place larger than average demands on the Wastewater System. Capital Facilities Capacity Charges are reviewed annually to reflect the changes in the value of the Wastewater System to which a new customer is connecting. CFCCs are designed to recover capital costs of providing capacity for new users. They may fund future capacity expansion projects. The underlying premise is to charge each new user the estimated reasonable cost of providing capital facilities necessary to provide wastewater service (i.e., require growth to pay for growth). Absent such charges, existing customers would be required to bear the burden of all capital costs, including capacity- related costs, through rates. Consequently, new customers would receive the benefit of sewer availability, without themselves paying for that capacity. Similar to the District's sewer service charges, the base CFCC is equal to the capital costs required to support the wastewater flows and loadings estimated for an average 3-bedroom single-family residence, or per Equivalent Dwelling Unit (EDU). Other residential rates are calculated relative to this base charge, based upon the assumed flows and loading. Commercial and industrial CFCCs are calculated in units of CFCC per 1,000 square feet. Permit Users are subject to a supplemental charge based on the expected flows and loadings in excess of the maximum allowed for under base commercial/industrial CFCCs. The supplemental charge is equal to the unit cost of flow, BOD, and SS capacity. Permit DRAFT -April 6, 2006 H:\Client\Ocsd_PHXWl740BA00\Rpt\Revenue Program & Rate.doc Book Page 199 22 r- 1 r r [ [ L L L L L I L Users are also subject to increases in CFCCs if flows and/or loadings significantly exceed the amount of capacity previously allocated and paid for, at the same rate as the supplemental charges described above. Pursuant to an agreement with the IRWD, the IRWD is not required to pay Capital Facilities Capacity Charges. In exchange, the IRWD provides funding to the District for the construction costs of certain wastewater collection, transmission, treatment, and disposal facilities to be used by the IRWD and is obligated to make certain payments to the District for certain services arising from the Wastewater System (including any standby or availability charges). 5.2 Methodology The CFCC, as calculated for this study, evaluates future expansion related capital expenditures only. These costs will be incurred to provide available capacity for new system users. As expressed in the formula below, the CFCC is calculated by dividing the future expansion CIP costs by the total number of future connections expressed in EDUs. CFCC = Cost of Added Capacity with New Facilities Future Users (EDUs) 5.2.1 Approach and Assumptions The following assumptions were used in calculating the CFCC alternatives: • • • • Future Facilities. The cost of future expansion facilities are projected to total $354 million through FY 2020/21, stated in 2006 dollars. The CIP used within this analysis represents the District's projected expenditures at this point in time. Flow and Load Basis. All CFCC calculation alternatives included in this report are based upon EDU flow of 226 gallons per day (gpd). Strength characteristics are assumed to equal to 0.45 lb/day BOD and 0.48 lb/day TSS, commensurate with single-family residential strength assumptions. Available Remaining EDUs. The Center for Demographic Research projects the population with the District's service area to increase from 2.28 million in 2005 to 2.47 million by 2020. This growth rate equates to roughly 78, 120 new EDUs through the planning period ending in FY 2021/22. Additionally, SAWPA is projected to purchase an additional 4 mgd of treatment capacity, beyond its current 13 mgd ownership. This additional capacity requirement equates to roughly 14,252 new EDUs. In total, 92,372 new EDU are projected to connect through the planning period. Residential and Commercial EDUs. Based upon the District's customer billing records, approximately 58 percent of the current EDU are residential and 42 percent are commercial/industrial. This same percentage split between residential and commercial is assumed to continue for all new EDUs connecting to the wastewater system. DRAFT -April 6, 2006 23 H:\Client\Ocsd_PHXIM740BA00\Rpt\Revenue Program & Rate.doc Book Page 200 5.2.2 CFCC Calculation A/location to Billable Constituents The total expansion cost as calculated in the Capital Improvement Program was allocated to billable constituents -flow, BOD, and TSS. To accomplish this, project expenditures were assigned to treatment unit processes. Based on the capital allocation for each unit process, projected expenditures were assigned to the three billable constituent categories. For example, headwork projects are allocated 75 percent to flow, 5 percent to BOD, and 20 percent to TSS. Consequently, all headwork-related expenditures would be allocated to the flow, BOD, and TSS according to the same percentages. The allocation percentages for the headwords and all other unit processes were previously presented in Table 2.4. Table 5.1 presents the expansion CIP costs breakdown based on the allocation for all projects. Table 5.1 CIP Billable Constituents Cost Breakdown Revenue Program and Rate Update Orange County Sanitation District Total CIP Costs Flow BOD TSS Expansion Cost $354,307,038 $157,512,922 $174,074,367 $22,719,749 Percentage 100% 44% 49% 6% Allocation These capital expenditures are then allocated to residential and commercial-industrial customer categories. Residential users and commercial-industrial users are treated differently on two accounts. First, residential CFCCs are recovered on an EDU basis. Commercial-industrial CFCCs are recovered on a 1,000 square foot basis. Additionally, residential users are assumed to be responsible for a majority of the District's inflow and infiltration (l&I). During wet weather events, non-point source water enters the wastewater collection system and must be treated with all other wastewater flows at the treatment facilities. The District experiences a 2.0 peaking factor during wet weather. Much of the inflow and infiltration (l&I) enters the sewer system through the laterals connecting users to the collection systems. Based on the length of the laterals, is assumed that 99.9 percent of the length of the laterals within the District's service area connect residential units to the sewer system. The flow cost component of the CFCC is divided by the 2.0 peaking factor. A base line factor of 1.0 is attributable to treating new wastewater flows discharged by future users. This cost is allocated between residential and commercial-industrial users based on a pro rata share of projected wastewater flows -58 percent residential and 42 percent commercial-industrial. The flow cost component attributable to 1&1, or the incremental sizing DRAFT -April 6, 2006 24 H:\Client\Ocsd_PHXl/ll\7408A00\Rpt\Revenue Program & Rate.doc Book Page 201 r r r l L L L requirements to treat for peak flows (2.0 less the base line of 1.0), is allocated wholly to residential. Consequently, half of the District's flow-related expansion costs are assumed to be attributable to providing additional capacity for future users wastewater discharges, and half of the flow-related costs are assumed to be attributable to providing additional capacity necessary to treat l&I during wet weather events as new users connect to the system. The 8.0.D. and T.S.S. cost components are allocated to residential and commercial- industrial based on a pro rata share of projected loadings. The allocation of costs is presented in Table 5.2 below. This allocation methodology was adopted by the District during its last Rate Advisory Committee process. Table 5.2 Expansion Expenditure Allocation Revenue Program and Rate Update Orange County Sanitation District Total Flow 8.0.0. T.S.S. Expansion Expenditures $354,307,038 $157,512,922 $174,074,367 $22,719,749 Residential Total Flow 8.0.D. T.S.S. Allocated Expenditures $234,962,303 $120,234,541 $101,482,519 $13,245,243 Percentage Share of Total Expenditures 66% 76% 58% 58% Commercial-Industrial Total Flow 8.0.D. T.S.S. Allocated Expenditures $119,344,735 $37,278,381 $72,591,848 $9,474,506 Percentage Share of Total Expenditures 34% 24% 42% 42% Residential Capital Facilities Capacity Charge Calculation. Unit costs per EDU for flow, BOD, and TSS were developed by dividing the costs for each functional cost category by the number of projected EDUs. The calculation is shown below in Table 5.3: Table 5.3 Residential CFCC Calculation Revenue Program and Rate Update Orange County Sanitation District Expansion Projects EDUs CFCC per EDU Total Flow $234,962,303 53,851 $4,363 $120,234,541 53,851 $2,233 B.0.0. T.S.S. $101,482,519 $13,245,243 53,851 53,851 $1,884 $246 Commercial-Industrial Capital Facilities Capacity Charge Calculation. DRAFT -April 6, 2006 25 H:\Client\Ocsd_PHXVl/\7408A00\Rpt\Revenue Program & Rate.doc Book Page 202 Unit costs per 1,000 square feet for flow, BOD, and TSS were developed by dividing the costs for each functional cost category by the number of projected 1,000 square feet of future commercial-industrial users. The calculation is shown below in Table 5.4: Table 5.4 Commercial-Industrial CFCC Calculation Revenue Program and Rate Update Orange County Sanitation District Total Flow 8.0.D. T.S.S. Expansion Projects 1,000 sq ft $119,344,735 $37,278,381 $72,591,848 $9,474,506 CFCC per 1,000 sq ft 91,340 $1,307 91,340 $408 91,340 $795 91,340 $104 The CFCC methodology presented within this report reflects an update to the District's Capital Improvement Program and growth projections only. No change to the CFCC methodology is proposed. 5.2.3 Supplemental Capital Facilities Capacity Charge As discussed above, permit users that exceed designated flow and loading discharges are subject to a supplemental capital facilities capacity charge (SCFCC). The SCFCC is intended Jo recover the cost of providing capacity to these customers, not recovered through the initial CFCC that is imposed upon the industrial user at the time it is connected to the wastewater system. The initial industrial CFCC is collected at the time of building permit application, by the local cities and sanitary districts that are tributary to the OCSD system. It is based on the square footage of the new improvements on the site. Since there are 23 cities/sanitary districts spread over the 471 square mile OCSD service area, this is the most expeditious way for both the industry to pay and OCSD to collect the CFCC. However, since the costs that the CFCC is meant to pay for are incurred and accounted for based on the flow and strength of the wastewater treated, there has to be an adjustment to reconcile the difference between the levied square footage charge and the actual costs incurred that are related to the flow and strength of the treated wastewater. In addition, industrial users typically have a higher flow and strength wastewater than the initial square footage charge is meant to compensate for. The SCFCC reconciles these differences. It is commensurate with a rental rate, in which the user is required to pay an equitable rental charge for capacity used within the system beyond the initially purchased capacity. The alternative would be for each industry to apply directly to OCSD for an up-front CFCC charge based on the anticipated flow and strength of the wastewater that they will discharge into the system. For an industry that has a high flow and/or strength discharge into the system, an up front fee could be in the millions of dollars. In addition, since industrial flows and strengths can vary considerably from year to year, based on the business climate, an up-front fee would not accurately capture the actual impact on the system. Thus, most of the time the industry would be either over paying or under paying. DRAFT -April 6, 2006 26 H:\Client\Ocsd_PHXIM7408A00\Rpt\Revenue Program & Rate.doc Book Page 203 Table 5.6 Recommended CFCC and SCFCC Revenue Program and Rate Update Orange Countv Sanitation District Total Flow 8.O.D. T.S.S. Per EDU Residential CFCC $4,363 $2,233 $1,884 $246 Per 1,000 sq ft Commercial- Industrial CFCC $1,307 $408 $795 $104 Per Gallon Per lbs. Per lbs. SCFCC $0.001344 $0.754730 $0.091720 This analysis assumes that the CFCC and SCFCC will be escalated each year to reflect the current value of the facilities or the current cost of capital projects. The District can apply an annual cost escalator based on such commonly accepted price indicators as the Engineering News Record Construction Cost Index for Los Angeles, or the Consumer Price Index (CPI). DRAFT -April 6, 2006 28 H:\Client\Ocsd_PHXW\7408A00\Rpt\Revenue Program & Rate.doc Book Page 205 Appendix A PROJECT CALCULATIONS l L Book Page 206 r-r- JMPTIONS equirement -Senior equirement -Junior scalation OJ @! ~ ~ r-r-r-r-r- FYE 2007 r--I -I· ., 200% 100% of annual debt service on all senior debt -pg. 21 2006 Official Statement of annual debt service on all junior debt -pg. 21 2006 Official Statement 975,123 FY 2006107 Revenues d1v1ded by $151 per EDU 58% Based on EDUs from b1tl1ng ,nformat,on 42% Based on EDUs from b1tl1ng information Alternative A Annual Cost Inflation Added FY 2006 FY 2007 FY 2008 FY 2009 2007 2008 2009 2010 5.61% 5.61% 5.61% 5.61% isumed to increase annually with General Cost Inflation I\) Q ..... FY 2006 FY 2007 FY 2008 FY 2009 RS 2007 2008 2009 2010 11 Cost Inflation 4.0% 4.0% 4.0% 4.0% Jction Cost lnflatiO"n 5.0% 5.0% 5.0% 5.0% 1er Demand Growth 0.4% 0.4% 0.4% 0.4% arnings 4.0% 4.0% 4.0% 4.0% :ost Inflation 6.0% 6.0% 6.0% 6.0% e 0&M Inflation 7.0% 7.0% 7.0% 7.0% of 0.4% annually per 2006 Official Statement FY 2006 FY 2007 FY 2008 FY 2009 2007 2008 2009 2010 975,123 979,024 982,940 986,872 3,900 3,916 3,932 3,947 979,024 982,940 986,872 990,819 Charge $4,363 $4,581 $4,810 $5,051 $1,307 $1,312 $1,317 $1,322 -J FY 2010 2011 5.61% FY 2010 2011 4.0% 5.0% 0.4% 4.0% 6.0% 7.0% FY 2010 2011 -:, 990,819 3,963 994,782 $5,303 $1,328 --, :-7 FY 2011 2012 5.61% FY 2011 2012 4.0% 5.0% 0.4% 4.0% 6.0% 7.0% FY 2011 2012 994,782 3,979 998,762 $5,569 $1,333 -:, --, ---:, --, FY 2012 FY 2013 FY 2014 2013 2014 2015 5.61% 5.61% 5.61% FY 2012 FY 2013 FY 2014 2013 2014 2015 4.0% 4.0% 4.0% 5.0% 5.0% 5.0% 0.4% 0.4% 0.4% 4.0% 4.0% 4.0% 6.0% 6.0% 6.0% 7.0% 7.0% 7.0% FY 2012 FY 2013 FY 2014 2013 2014 2015 998,762 1,002,757 1,00E 3,995 4,011 1,002,757 1,006,768 1,01( $5,847 $6,139 $ $1,338 $1,344 $ 2003 Acquisition I Construction Principal Payments $ $ $ $ $ $ $ $ s Interest Payments 14.221.250 14,221,250 14,221,250 14.221.250 14,221,250 14.221.250 14.221 .250 14,221,250 14,221,250 Total Annual Payments $ 14,221,250 $ 14,221,250 $ 14,221,250 $ 14,221 ,250 $ 14,221,250 $ 14,221,250 $ 14,221,250 $ 14,221 ,250 $ 14,221,250 2006 Certificates of Participation Principal Payments $ 6,160,000 $ 6,340,000 $ 6,555,000 $ 6,755,000 $ 8,965,000 $ 7,175,000 $ 7,420,000 $ 7,645,000 S 7,885;000 Interest Payments 6.121,000 5,938,392 5.717.822 5,522,664 5,310,566 5,101,057 4,857.345 4.633.485 4.393,413 Total Annual Payments $ 12,281 ,000 $ 12,278,392 $ 12,272,822 $ 12,277,664 $ 12,275,566 $ 12,276,057 $ 12,277,345 $ 12,278,485 $ 12,278,413 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY2011 FY 2012 FY2013 FY2014 Total Senior COP Debt 2007 2008 2009 2010 2011 2012 2013 2014 2015 Principal Payments $ 19,625,000 $ 20,605,000 $ 21,615,000 $ 22,865,000 $ 24,030,000 $ 24,770,000 $ 25,890,000 $ 41,185,000 $ 28,185,000 Interest Payments 34,511,854 33,641.8t2 3~ 535,390 31 502,548 30.363193 29.408,561 28330152 26.481 998 25 31§,§14 Total Annual Payments $ 54,136,854 $ 54,246,812 $ 54,150,390 $ 54,367,548 $ 54,393,193 $ 54,178,561 $ 54,220,152 $ 67,666,998 $ 53,501,614 Junior Debt Principal Payments Interest Payments Total Annual Payments $ s $ $ $ $ $ $ $ OJ Junior Debt 0 Principal Paymenls 0 ~ Interest Payments ~ Total Annual Payments $ $ s $ $ s $ $ $ (Q CD Junior Debt N -a. Principal Payments N Interest Payments Total Annual Payments $ $ $ $ $ $ $ s $ FY 2006 FY 2007 FY 2008 FY 2009 FY2010 FY2011 FY 2012 FY 2013 FY2014 Total Junior Debt 2007 200B 2009 2010 2011 2012 2013 2014 2015 Principal Payments $ s s $ $ $ $ $ $ Interest Payments Total Annual Payments $ s $ $ s $ $ $ $ Pre!1l'lfillllY Caro[I.QJ:11.q][leers __ P~aP.? "''F!?nn6 r-r-r-r- FUTURE DEBT SERVICE Certificates of Participation Principal Payments Interest Payments Total Annual Payments Added Reserve Requirement Alternate Loans [Traditional Structure] Principal Payments Interest Payments Total Annual Payments Added Reserve Requirement Alternate Loans [Level Principal Payments] Principal Payments Interest Payments Total Annual Payments Added Reserve Requirement IJJ Debt Assumptions 0 Certificates of Participation 0 :,.,, Debt Proceeds ~ Term of Bond (Q Interest Rate CD Issuance Costs I\) Reserve Requirement """ w Alternate Loans [Traditional Structure] Debt Proceeds Debt Payments Term of Bond Interest Rate Issuance Costs Reserve Requirement Alternate Loans [Level Prlnclpal Payments] Debt Proceeds Term of Bond Interest Rate Issuance Costs Reserve Requirement Prepared by Carollo Engineers r--' $ $ $ $ s s $ $ $ $ r-. FY 2006 2007 844,386 $ .2,805,000 3,649,386 $ $10,200,000 $ $ $0 $ $ $0 FY 2006 2007 100,000,000 $ 30years 5.00% 2.00% t0.00% $ $ 20years 2.50% 0.00% 0.00% $ 20 years 2.50% 0.00% 0.00% ~ - FY 2007 FY 2008 2008 2009 3,841,954 $ 8,044,883 12,580,281 25,711,933 16,422,235 $ 33,756,816 $25,500,000 $22,950,000 $ $ $0 $0 $ $ $0 $0 FY 2007 FY 200B 2008 2009 250,000,000 $ 225,000,000 30 years 30 years 5.00% 5.00% 2.00% 2.00% 10.00% 10.00% $ $ 2D years 20 years 2.50% 2.50% 0.00% 0.00% 0.00% 0.00% $ 20years 20years 2.50% 2.50% 0.00% 0.00% 0.00% 0.00% Page 3 $ $ $ $ $ $ $ $ $ $ -j FY 2009 2010 11,824,669 36,529,689 48,354,358 $17,850,000 $0 $0 FY 2009 2010 175,000,000 30 years 5.00% 2.00% 10.00% 20years 2.50% 0.00% 0.00% 20 years 2.50% 0.00% 0.00% -, ,--, ---, --, --, --, --, -:-, FY 2010 FY2011 FY2012 FY 2013 FY2014 2011 2012 2013 2014 2015 $ 15,160,155 $ 18,029,127 $ 19,774,969 $ 20,763,717 $ 21,801,903 45,054,705 51,309,198 53,212,741 52,223,993 51,185,807 $ 60,214,861 $ 69,338,325 $ 72,987,710 $ 72,987,710 $ 72,987,710 $15,300,000 $10,200,000 $0 $0 $0 $ $ $ $ s $ $ $ $ $ $0 $0 $0 $0 $0 $ $ $ s $ $ $ $ $ $ $0 $0 $0 $0 $0 FY 2010 FY2011 FY 2012 FY 2013 FY2014 2011 2012 2013 2014 2015 $ 150,000,000 $ 100,000,000 s $ $ 30 years 30 years 30years 3D years 30 years 5.00% 5.00% 5.00% 5.00% 5.0p% 2.00% 2.00% 2.00% 2.00% 2.00% 10.00% 10.00% 10.00% 10.00% 10:00% $ $ $ $ $ $ $ $ $ $ 20 years 20years 20years 20years 20years 2.50% 2.50% 2.50% 2.50% 2.50% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% $ $ $ $ $ 20 years 20years 20years 20years 20yelirs 2.50% 2.50% 2.50% 2.50% 2.50% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 4/6/2006 r---r-r-r--r- RESERVE REQUIREMENT Operating Fund Cash Flow Reserve -50% Operating Expenditures -Annual Debt Service Operating Contingency -1 D% Operating Expenditures Capital Improvement Reserve -50% Annual Average CIP Self-Insurance -$57 Million Certificate of Participation Reserve -10% of Outstanding COPs Capital Replacement Reserve Adjustments Ending Fund Balance OJ 0 0 FUND RESERVES ~ ~ (Q OPERATING & CAPITAL RESERVES Cl> ~ -a. Operating & Capital Fund (JI Beginning Balance IRWD Equity Payments Grants Developer Contributions CFCC Revenues 1 Bond Proceeds less: Use of Funds plus cash flow Ending Fund Balance Prepared by Carollo Engineers r- 50% 10% 50% 10% --~ I FY 2006 2007 $ 64,654,055 57,786,240 12,930,811 84,779,357 57,000,000 92,007,543 53,060,000 (40,000,000) $ 382,218,005 FY 2006 2007 $ 510,000,000 9,833,783 9,127,000 12,046,775 100,000,000 (258,789,553) 53,646,417 $ 435,864,422 435,864,422 FY 2007 2008 $ 69,251,065 $ 70,669,047 13,850,213 77,707,846 57,000,000 117,879,323 54,121,000 (40,000,000) $ 420,478,494 $ FY2007 2008 $ 435,864,422 $ 15,387,230 10,715,000 12,601,557 250,000,000 (304,089,715) 17,755,182 $ 438,233,676 $ 438,233,676 Page 2 ---J FY 2008 2009 73,646,180 $ 87,907,206 14,729,236 71,435,458 57,000,000 140,689,570 55,203,000 (40,000,000) 460,610,651 $ FY 2008 2009 438,233,676 $ 11,998,036 6,700,000 13,185,621 225,000,000 (256,883,657) 22,933,324 461.167,000 $ 461 ,167,000 ~ FY 2009 2010 78,325,374 $ 102,721,906 15,665,075 67,059,727 57,000,000 157,390,151 56,307,000 (40,000,000) 494,469,232 $ FY 2009 2010 461,167,000 $ 12,030,146 6,700,000 13,800,548 175,000,000 (207,530,694) 53,713,849 514,880,849 $ 514,880,849 --, -I ~ • FY 2010 FY2011 2011 2012 83,307,311 $ 83,307,311 $ 114,608,054 123,516,886 16,661,462 16,661,462 61,906,900 58,529,000 57,000,000 57,000,000 170,763,241 178,098,016 57,433,000 58,582,000 (40,000,000) (40.000,00C) 521,679,968 $ 535,694,674 $ FY2010 FY2011 2011 2012 514,880,849 s 561,796,485 $ 13,002,553 10,394,534 6,700,000 6,700,000 14,448,004 15,129,747 150,000,000 100,000,000 (184,150,557) (158,326,092) 46,915,636 80,657.211 561,796,485 $ 616,351,885 $ 561,796,485 616,351,885 --, --, --, FY 2012 2013 92,361,902 127,207,862 18,472,380 56,613,313 57,000,000 173,895,821 59,754,000 (40.000,00Q) 545,305,279 FY2012 2013 616,351,885 7,614,898 6,700,000 15,847,628 (101,209,133) 82,518,374 627,823,652 627,823,652 4/612006 Input Alternative j Alternative A ... Collection, Treatment FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY: or Other Total Budget ue to FYOS 2006 2007 2008 2009 2010 2011 2012 2013 20 lehab. 2 Collection $ s s s s-$ s $ s $ $ 2 Collection s $ s $ $ $ $ $ $ $ $ 1 Collection s 565,222 $ 361,156 s 164,066 $ $ $ $ $ $ s $ CFS) 3 Other s 3,767,000 $ 436,017 s 3,067,963 $ 263,000 $ $ $ $ $ s $ 2 Collection s $ $ $ $ $ $ $ $ $ $ 2 Collection $ 110,352 $ 110,352 $ $ $ $ $ $ $ s $ Iements 2 Collection s $ s $ $ $ $ $ $ $ $ 2 Collection $ $ s $ $ $ $ $ $ $ $ 2 Collection s $ s $ $ $ $ $ $ s $ 2 Collection s $ s $ $ $ $ $ $ s $ trunk 2 Collection $ $ s $ $ $ $ $ $ $ $ MH Rehab 2 Collection $ 8,255,225 $ $ $ $ $ $ $ 8B,901 $ 238,199 s 473,930 $ t 2 Collection $ $ s $ $ $ $ $ $ $ $ 1tion 2 Collection s 9,671,352 $ 3,260,460 s 5,069,540 $ 1,341,352 $ $ $ -$ $ $ $ ion 2 Collection s 9,655,097 $ 4,063,489 s 4,590,511 $ 1,001,097 $ $ $ $ $ s $ ,mtation 2 Collection s 53,229 $ 1,409 s 51,820 $ $ $ $ $ $ s $ nt 2 Collection s 650,000 $ s $ 340,000 $ 310,000 $ $ $ $ s $ unk Sewer 2 Collection $ 3,211,331 $ $ $ 3,211,331 $ $ $ $ $ s $ 2 Collection $ 3,294,000 $ 1,055,781 $ 1,300,219 $ 936,000 $ $ $ $ $ s $ 0hase 1 2 Collection $ 2,329,956 $ 156,315 s 178,6B5 $ 1,994,956 $ $ $ $ $ $ $ h"A" 2 Collection s 7,218,167 $ 2,591,514 s 4,626,653 $ $ $ $ $ $ $ $ 2 Collection s 5,276,195 $ 5,252,190 s 26,005 $ $ $ $ $ $ s $ 2 Collection $ 14,731,335 $ 8,311,087 s 6,420,248 $ $ $ $ $ $ s $ 2 Collection $ 4,175,552 $ s $ $ $ $ $ $ s $ 2 Collection $ 19,251 $ 15,568 s 3,683 $ $ $ $ $ $ s $ 2 Collection $ $ s $ $ $ $ $ $ $ $ OJ 1 Treatment s 160,000 $ 1,000 s 49,000 $ 110,000 $ $ $ $ $ $ $ G Update 2 Collection s 553,650 $ 4,706 s 548,945 $ $ $ $ $ $ s $ 0 3 Other s 310,000 $ 20,000 $ 114,000 $ 176,000 $ $ $ $ $ s $ ~ 1 Treatment s 3,138,289 $ 33,093 S· 361,907 $ 2,743,289 $ $ $ $ $ s $ ind2 1 Treatment $ 142,328 $ 73,4B2 $ 68,846 $ $ $ $ $ $ s $ 1 Treatment s 19,105,552 $ 17,316,369 $ 1,787,183 $ $ $ $ $ $ $ $ an 1 Treatment $ 27,231,450 $ 25,705,630 $ 1,525,820 $ $ $ $ $ $ $ $ N 1 Treatment $ 3,489,069 $ 3,326,985 s 160,084 $ $ $ $ $ $ $ $ .... 3 Other s 169 $ 169 s $ $ $ $ $ $ s $ ., 1 Treatment $ 6,137,338 $ 5,998,253 s 139,086 $ $ $ $ $ $ s $ 1 Treatment s 7,166,049 $ 3,943,801 s 1,703,199 $ 1,519,049 $ $ $ $ $ s $ 3 Other $ 2,165,035 $ 1,500,426 $ 664,609 $ $ $ $ $ $ s $ 1 Treatment $ 1,652,000 $ 319,751 s 1,168,249 $ 164,000 $ $ $ $ $ $ $ IP1 &P2 1 Treatment s 808,797 $ 60,507 s B5,493 $ 662,797 $ $ $ $ $ $ $ 1 Treatment s 577,000 $ $ 177,000 $ 400,000 $ $ $ $ $ $ $ 1 Treatment s 200,000 $ s 50,000 $ 150,000 $ $ $ $ $ $ $ 1 Treatment $ 100,000 $ 54,000 $ 6,000 $ 40,000 $ $ $ $ $ s $ ,t 1 Treatment $ 100,000 $ s 2,000 $ 98,000 $ $ $ $ $ $ $ 1 Treatment $ 90,927,296 $ 77,403,504 $ 7,300,496 $ 6,223,296 $ $ $ $ $ -$ $ ,riflers 1 Treatment s 45,730,677 $ 3B,625,011 s 7,105,666 $ $ $ $ $ $ s $ de 1 Treatment s 9,546,958 $ 7,542,843 s 2,004,116 $ $ $ $ $ $ s $ 1 Treatment $ 15,821,864 $ 14,645,648 s 350,352 $ 272,928 $ 552,936 $ $ $ $ $ $ No2 1 Treatment s 1,084,845 $ 86,498 $ 998,348 $ $ $ $ $ $ s $ g Station 1 Treatment $ 150,000 $ $ $ 150,000 $ $ $ $ $ s $ 1 Treatment s 440,000 $ $ 140,000 $ 300,000 $ $ $ $ $ -s $ 3 Other s 592,000 $ 592,000 $ $ $ $ $ $ $ $ $ l Study 3 Other $ 13,000 $ $ 13,000 $ $ $ $ $ $ $ $ 3 Other s 250,000 $ s $ $ 20,000 $ $ $ $ s 230,000 $ ogram 3 Other s 1,183,000 $ 60,000 s 220,000 $ 50,000 $ 853,000 $ $ $ $ s $ ~ Study 1 Treatment $ 500,000 $ B0,000 $ 50,000 $ 150,000 $ 150,000 $ 70,000 $ $ $ s $ ligestion 1 Treatment $ -$ $ $ $ $ $ $ $ $ $ 3 Other s $ s $ $ $ $ $ $ s $ 3 Other s 21,000 $ s $ 21 ,000 $ $ $ $ $ s $ ~nt 1 Treatment s $ s $ $ $ $ $ $ s $ 1c Digestion 1 Treatment s $ s $ $ $ $ $ $ s $ 1 Treatment $ $ $ $ $ $ $ $ $ s $ 3 Other $ 250,000 $ $ 250,000 $ $ $ $ $ $ s $ ,rine lines) 2 Collection $ 100,000 $ s 50,000 $ 50,000 $ $ $ $ $ $ $ r--~-r·~ r--r-,..._ ~-~ r-,........ __ ---,,,~ ,.....__--, -7 -;i -, -7 .. J -·-:, ' l t I I i. I I j J ... , .......... -•-•-w\ool·--or(ABR) 1 Treatment $ 455 000 s 136 000 s 319 000 s $ $ s s $ s s ffluent 1 Treatment $ s s s s $ $, s s s $ 1 Treatment $ 280.000 $ 150.000 $ 130 000 s s s s -s -s $ $ 1 Treatment $ 1.469 777 s 258.676 s 917 324 s 293,777 s s ~ s s $ s s 1 Treatment $ 412,138 s 55,070 s 41 ,930 s 214,029 s 101,109 $ ~ -s $ $ s 2 Collection $ 396,342 s 124,135 s 176,865 $ 95,342 s s s $ s s s lacements 2 Collection $ 6,842,668 s s 192,731 $ 158,840 s 61,124 s s s s s s 3 Other $ 600,000 s 215,000 s 130,000 s 130,000 s 125,000 s s s s s s ring 3 Other $ $ s $ s s s s -s s s 'rotection 1 Treatment $ 4,412,418 s 317,088 s 556,912 $ 2,984,300 $ 554,118 s s s s s s 1 Treatment $ 3,620,000 s 306,410 s 2,281,590 $ 505,000 $ 527,000 s s $ s s s 1 Treatment $ 6,764,864 $ 35,482 s 177,518 s 1,247,941 s 4,586,051 s 717,872 s s s s $ , Treatment $ 62,140,701 s 39,266,742 s 10,227,258 s 9,516,730 $ 3,129,971 s s s s s s 1 Treatment $ 13,487,242 s 25,077 s 777,923 s 2,874,718 $ 9,809,524 $ s s $ s $ 2 Collection $ 35.422,762 s s 639,000 s 361,040 $ 3,838,176 $ 2,717,995 $ 7,376,708 $ 10,054,440 s 10,435,403 $ $ Jandonment 2 Collection $ 8,317,353 s 981 ,354 s 347,646 s 2,264,273 $ 4,724,080 $ $ s s s $ 1 Treatment $ 46,928,330 s 4,433,451 s 17,352,549 s 19,819,413 s 5,322,917 $ $ s s s s 1ch B 2 Collection $ 11,788,691 s 556,104 $ 610,848 $ 631,719 s 8,461,274 $ 1,528,747 $ $ $ $ s 2 Collection $ 83,004,524 $ 24,104,949 $ 7,958,051 s 40,733,142 s 10,208,382 s s $ s $ s 1 Treatment $ 250,050,943 s 103,686,203 s 74,278,797 s 48,782,467 s 23,303,476 $ s .$ s s s 1 Treatment $ 558,000 s s 176,000 s 172,000 s 210,000 s $ s s s s 2 Collection $ 247,078 s 136,1 99 $ 110,879 $ $ s s s s -s s 1 Treatment $ 3,789,000 s $ 52,000 s 1,350,000 s 2,387,000 s s s s s s 1 Treatment $ 1,995,000 s 529,879 $ 101,121 $ 600,000 s s s s s 764,000 s s t No.1 1 Treatment $ 4,357,725 s 24,676 s 293,324 $ 315,048 s 3,724,677 s s s s s s 1 Treatment $ 2,901,000 s 1,223,000 s 100,000 $ 500,000 $ 500,000 s 578,000 s s s s s ~I l Treatment $ 3,150,000 s 480,000 s 270,000 s 1,400,000 $ 1,000,000 s s s $ s s I Planl2 1 Treatment $ 17,420,116 $ 2,783,311 s 839,724 s 5,450,196 $ 6,553,178 s 1,793,706 s s s s $ and Prot, 2 Collection $ 9,485,029 $ 6,619,950 $ 179,996 s 415,795 $ 1,059,857 s 1,209,431 s s s s s ~on 1 Treatment $ 56,205,019 s 3,503,535 s 3,824,348 s 1,010,813 $ s s 13,906,141 s 24,110,565 $ 9,849,617 s s 2 Collection $ 3,425,865 s 344,196 s 118,804 s 150,974 $ 207,381 $ 1,358,565 s 1,245,945 s s s -s 0 2 Collection $ 71,364,430 $ 2,685,621 $ 3,311,379 s 21,258,515 s 26,801,421 $ 17,307,494 $ s s $ $ :Trver 2 Collection $ 22,692,204 s 1,610,274 $ 130,726 s 7,355 s 23,156 s 18,659,897 s 2,260,796 s $ $ $ 2 Collection $ s s ~ s $ s $ $ $ s leHRohab 2 Collection $ s $ s $ s $ $ s s s hab, 2 Collection $ s $ $ $ s s $ s s s C'D 3 Other $ 650,000 s 23,686 $ 461,314 $ 90,000 s $ s s s 75,000 s $: ~abllltallon 3 Other $ 1,175,000 s $ 5,000 $ 170,000 s 175.000 s 100,000 s 100,000 s 625,000 s s $ 2 Collection $ s $ $ s s s s s s $ ....,Collections 2 Collection $ 5,399,957 s 1,433,547 s 159,453 $ 151,711 s 145,622 s 147 052 s 151,702 s 151,702 s 150,207 s 149,511 $ 2 Collection $ 18,692,134 s 419,472 $ 82,834 $ 289,670 s 2,160,255 s 4.829,558 s 8,097.458 s 2,812,887 $ s s lion 2 Collection $ 656,000 s 306,474 s 349,526 s $ s s $ s ~ s Campus Dr 2 Collection $ $ s $ $ ' s s s $ s 2 Collection $ 277,423 s 277,423 s $ $ $ s s s s s ant 2 1 Treatment $ 18,199,530 $ 2,687,924 $ 289,076 s 449,194 s 427,330 s 431,220 $ 441,907 s 434,904 s 427,541 $ 420,501 $ 2 Collection $ 979,000 $ 9,386 s 2,697 s $ 50,000 s 30,000 s 140,000 $ 140,000 $ 340,000 s 266,917 $ !Works 1 Treatment $ 18,230,119 $ 974.546 s 303,727 s 481,441 s 441.409 $ 444,705 $ 458.767 s 458,767 $ 458,767 s 457,009 $ 2 Collection $ 4,157,000 $ 567,000 $ 494,000 $ 695,000 s 410,000 $ 410,000 $ 410,000 s 410,000 $ 410,000 s 351,000 $ 1 Treatment $ 272,216 s 272,216 $ s s s $ s s $ $ ant 1 1 Treatment $ 18,197,830 $ 2,457,026 $ 1,000,974 $ 730,864 s 786,195 s 1,148,054 s 1,184,354 $ 1,184,354 s 1,184,356 s 1,179,818 $ 1 Treatment $ 5,046,434 s 210,148 $ 156,852 $ 829,600 s 624,483 s 2,598,760 !S 626,591 s ~ $ $ D at Pl 1 Treatment $ 23,145,366 s 1,719 $ 2,000 $ 378,222 s 727,172 s 1,388,454 $ 1,436,289 $ 10,330,881 s 5,716,071 $ 203,582 s 2 Colleclion $ 2,797,056 s s 32,000 $ 333,171 $ 319,994 s 794,380 s 862,472 s 455,039 s s s :lvements 1 Treatment $ 5,550,256 s s $ $ 34,521 s 644,642 s 558,522 s 2,577,479 $ 1,735,092 $ s 2 Collection $ 7,873,290 s s $ 55,301 s 373,257 s 1,112,099 s 908,723 s 4,327,769 $ 1,096,141 s $ 2 Collection $ 7,299,000 s 930,614 s 425,386 $ 435,000 $ 875,000 s 3,447,000 s 1,186,000 s s s s 2 Collection $ 23,050,000 s 13,510 s s $ 274,000 s 650,000 s 1,200,000 s 2,320,000 s 10,500,000 $ 8,092,490 s ation 2 Collection $ 32,978,652 s 3,222,725 s 505,275 s 1,777,536 s 1,164,396 s 15,799,819 $ 7,194,740 $ 3,314,161 $ s s 3 Other $ 5,100,000 s 630,000 s 220,000 s 750,000 $ 750,000 $ 750,000 $ 750,000 s 750,000 s 500,000 $ s 1 Treatment $ 6,859,000 $ 277,000 $ 105,000 s 1,955,000 $ 1,918,000 s 1,478,000 $ 1,126,000 s s s s ,n 2 Collection $ 7,919,248 $ 395,153 $ 494,412 s 290,487 $ 1,170,869 $ 4,192,416 $ 1,375,911 s s $ $ No. 1 1 Treatment $ 3,194,889 $ $ s s 136,539 $ 613,923 s 1,419,033 $ 1,025,394 $ s $ ant No. 2 1 Treatment $ 5,024,194 $ 388,886 $ 1,272,868 s 299,329 s 2,801,618 $ 261,493 $ s -$ $ $ t Collection $ 10,942,677 $ 835,548 $ 637,452 s 408,800 $ 688,892 $ 6,806,990 $ 1,564,995 s $ $ $ ant 2 1 Treatment $ 51,696,202 $ $ 235,000 s 462,547 s 1,478,176 s 2,081,175 $ 1,473,601 $ 13,509,659 $ 21,430,047 $ 11,025,997 s r Jumper 2 Collection $ 5,246,000 $ 294,197 $ 549,803 s 371,000 s 196,000 $ 1,286,000 $ 1,617,000 s 932,000 $ s s 1 Treatment $ 45,286,082 s $ 341,000 $ 1,589,091 s 1,842,001 $ 1,705,872 $ 3,187,606 s 15,380,532 $ 13,057,925 $ a, 102,055 $ 1tion 2 Collection $ 192,419 s 122,068 $ 70,351 $ s s s s $ s $ it No.1 1 Treatment $ 14,400,000 s $ $ s s s 169,499 $ 187,540 $ 937,356 $ 466,524 $ 1 Treatment $ 13,558,246 s 355,899 $ 1,000,101 $ 541.586 s 4,074,415 s 6,053,757 s 1,532,488 $ s $ $ gerPS 2 Collection $ 144,000 $ 16,528 $ 127,472 $ s s $ s $ $ s 1 TrP.;;dmP.nt $ n 47R 7flfl $ !'107 Rfl!i $ ? ?R7 13!i $ 1 1:-17 ?n7 ~ 14nnR !'lfl4 s 41fi!'I fi!'lfi ~ $ s s i; ~ ...................... ~ .... ,.~1 ... ,-... -,, .......... , ...... ..,. ~ ................. -,, ...... ,,, ...... -, ... , , ...... , ......... ~ . .... , .......... , ...... , -Treatment $ 54,917,218 s 625,159 $ 1,537.841 s 1,864,781 s 1,491,894 $ 1,906,791 s 17,052,601 s 20,812,997 $ 9,625,154 s $ ant 1 1 Treatment $ 134,683,627 s 484,415 $ 3,137,585 $ 5,536,991 $ 3,948,347 $ 1,777,910 $ 19,288,626 s 57,789,343 $ 25,585,136 s 17,135,274 $ 1 Treatment $ 259,177,566 s 18,700,457 $ 26,417,543 s 27,959,081 s 72,299,163 $ 62,025,327 $ 28,691,885 s 9,583,065 $ 13,501,045 s $ nt No. 1 1 Treatment $ 275,845,123 $ 8,008,522 $ 7,010,478 s 7,405,388 $ 53,078,804 $ 42,910,213 $ 34,571,304 s 44,605,342 $ 36,486,833 s 41,768,239 $ 1 Treatment $ 246,998,227 s 4,106,862 $ 5,522,138 s 6,917,156 $ 51,096,876 $ 74,002,857 s 59,642,346 s 9,263,076 $ 36,446,916 s $ nt at Plant No. 2 1 Treatment $ 5,000,000 s $ s 400,000 $ 600,000 $ 3,500,000 s 500,000 s $ $ $ 2 Collection $ 2,000,000 s $ s 150,000 $ 300,000 $ 1,200,000 s 350,000 s $ $ $ 2 Collection $ 2,500,000 s $ s 2,500,000 $ $ s $ $ $ $ 3 Other $ 150,000 $ $ $ 150,000 s $ s $ $ $ $ 3 Other $ 250,000 $ $ s 150,000 s 100,000 $ $ $ $ s $ 2 Collection $ 2,000,000 s $ .s 150,000 $ 300,000 $ 1,200,000 $ 350,000 s $ s $ 2 Collection $ s $ s $ $ $ $ $ $ $ 2 Collection $ 2,000,000 s $ s 150,000 $ 300,000 $ 1,200,000 s 350,000 s $ $ $ ,nt No. 2 1 Treatment $ 2,600,000 s $ 67,000 s 2,533,000 s $ s $ $ $ $ 3 Other $ $ $ -$ s $ s s $ $ $ 3 Other $ s $ s s $ $ s $ s $ 3 Other $ 19,978,600 s $ 1,978,600 s 3,400,000 $ 3,400,000 $ 3,400,000 $ 3,400,000 s 3,400,000 $ 1,000,000 s $ 3 Other $ s $ s $ $ $ s $ s $ 2 Collection $ 1,840,000 s $ s 276,000 s 368,000 $ 552,000 s 460,000 s 184,000 $ -$ $ 2 Collection $ 9,190,000 s $ $ 1,378,500 s 1,838,000 $ 2,757,000 ,; 2,297,500 $ 919,000 $ $ -$ 2 Collection $ 3,570,000 s $ $ s 535,500 $ 714,000 s 1,071,000 $ 892,500 $ 357,000 s $ 2 Collection $ 860,000 $ $ $ s 129,000 $ 172,000 $ 258,000 s 215,000 $ 86,000 $ $ 2 Collection $ 100,000 $ $ $ 100,000 $ $ s s $ s $ 2 Collection $ 9,210,000 s $ s $ $ 1,381,500 s 1,842,000 s 2,763,000 $ 2,302,500 s 921,000 $ 2 Collection $ 330,000 s $ $ s $ s 49,500 s 66,000 $ 99,000 s 82,500 $ 2 Collection $ 1,540,000 s $ s 700,000 s 840.000 $ s s $ s $ 2 Collection $ $ $ s s $ s $ $ $ $ 1 Treatment $ s $ $ s $ $ $ $ s $ J Olher $ 498.000 $ s $ 498,000 $ $ $ $ s s $ 1 Trealment s 721,086,267 s -s $ $ $ $ s 777,649 $ 2,332.948 s 54,898,935 s 6, 2 Collection $ 190,198,049 $ $ s $ $ $ $ 205,117 $ 615,352 $ 14,480,473 $ 1E 3 Other $ 15,979,684 a, $ -$ $ -$ $ $ s 17,233 $ 51,699 $ 1,216,592 $ 0 0 s 3,514,560,481 $ 479,TTB,760 s 251,120,847 $ 287,891,360 $ 364,020,884 $ 32.0,_!;_85,6SB $ 261,311,563 _$_ 266,816,313 $ 213,542,317 $ 162,672,395 $ 9f i&REVENUES Q) tQ CD ~ s 2,011,599,343 $ 149,704,191 $ 83,987,120 $ 129,385,465 $ 137,819,013 $ 145,556,129 $ 129,322,558 $ 144,781,549 $ 101,110,703 $ 101,167,606 $ BE -.a. 722,301,001 82,952,331 57,873,433 47,698,218 118,784,250 120,479,450 100,914,091 79,767,534 76,817,199 30,600,541 00 663,518,858 214,249,147 86,359,117 75,174,040 89,663,892 51,611,868 24,953,405 36,749,772 32,532,284 29,992,222 117,141,279 32.873 091 22,901.176 15,633,637 17 753 730 6 938 lli!1 6 121 510 5 519 459 3,082,131 912 026 $ 3,514,560,481 $ 479,778,760 $ 251,120,847 $ 267,891,360 $ 364,020,884 $ 324,585,638 $ 261,311,563 $ 266,818,313 $ 213,542,317 $ 162,672,395 $ 9E $ 1,533,861,474 $ 264,793,477 $ 165,368,405 $ 169,493, 728 $ 170,987,135 $ 149,238,217 $ 73,541,273 $ 45,012,136 $ 39,232,340 $ 41,126,540 $ 4, 1,297,570,429 130,577,921 61,151,610 68,750,511 148,858,616 144,581,120 129,426,936 103,349,024 102,088,948 78,074,388 3, 683,128,579 84,407 ;16,1 24 600,832 29.647.121 44 175.134 30 766,301 58~43,353 118,457 rn;i 72 221 Qi1~ 43,47J,46Z ___ H $ 3,514,560,481 $ 479,778,760 $ 251,120,847 $ 267,891,360 $ 364,020,884 $ 324,585,638 $ 261,311,563 $ 266,818,313 $ 213,542,317 $ 162,672,395 $ 9E $ 800,304,987 $ $ $ 111,392.273 $ 114,874,468 $ 118,985, 132 $ 64,163,197 $ 38,082,380 $ 28,911,425 $ 30,820,345 $ 3, 782,452,117 52,653,674 104,095.496 108,838,203 98,391,373 65,599,071 67,451,469 43,925,466 21 466,641,409 23 628,707 39 913.007 27 909 571 52 308 805 99.48Q.523 59.134.039 36.239.619 ___ 1, $ 2,049,398,514 $ $ $ 187,674,654 $ 258,882,971 $ 255,732,906 $ 214,863,375 $ 203,161,975 $ 155,496,932 $ 110,985,429 $ 7, $ 157,512,922 $ $ $ 58,101,455 $ 51,132,459 $ 21,686,202 $ 3,137,486 $ 1,910,320 $ 4,930,737 $ 3,622,485 $ 174,074,367 16,096,837 40,427,432 27,443,369 20,052,609 26,225,198 20,611,354 21.460,605 22 719 749 6 018,414 6 975 472 1,090 §1§ 1,083,627 5.767 122 3164.455 167.060 ___ 1 $ 354,307,038 $ $ -$ 80,216,706 $ 94,535,363 $ 50,220,188 $ 24,273,722 $ 33,902,641 $ 28,706,546 $ 25,250,141 $ $ 2,403,705,552 $ $ $ 267,891,360 $ 353,418,334 $ 305,953,095 $ 239,137,097 $ 237,064,615 $ 184,203,478 $ 136,235,570 $ 71 ca/arion Factor: nla nla 1 00 1.03 1.06 1 09 1 13 1 16 1.19 1.. L L L Book Page 224 Appendix B USER CATEGORIES 7 MOBILEHOME 50% $85.41 55 MOBILE HOME PARK 50% $85.41 107 LIGHT INDUSTRIAL -SINGLE TENANT 50% $85.41 108 LIGHT INDUSTRIAL -MUL Tl TENANT 50% $85.41 109 RESEARCH AND DEVELOPMENT 50% $85.41 114 INDUSTRIAL PARK 50% $85.41 37 FRATERNAL BUILDINGS 51% $87.11 101 UNA TT ACHED THEATER 51% $87.11 26 AIRPORT AND RELATED 53% $90.53 45 MARINAS 53% $90.53 88 CONVENIENCE SHOPPING CENTER 53% $90.53 3 TWO OR MORE SFR 70% $119.57 10 DUPLEX ONLY 70% $119.57 11 TRIPLEX ONLY 70% $119.57 12 04-UNITS ONLY 70% $119.57 13 5 TO 16 UNITS 70% $119.57 14 17 TO 25 UNITS 70% $119.57 15 26-40 UNITS ONLY 70% $119.57 16 41-99 UNITS ONLY 70% $119.57 17 100 OR MORE UNITS 70% $119.57 18 A MIX OF FORMS 70% $119.57 56 MOTELS AND MOTOR HOTELS 70% $119.57 63 LOW RISE RETIREMENT BUILDING 70% $119.57 64 HIGH RISE RETIREMENT BUILDING 70% $119.57 81 PRE-SCHOOLS, NURSERY OR CARE 82% $140.07 82 PRIVATE SCHOOLS 82% $140.07 98 STORE WITH OFFICES OR LIV QTR 82% $140.07 99 STORE W/ OFFICE UPSTAIRS 82% $140.07 118 GOVERNMENTAL USE 82% $140.07 19 SFR WITH 1 OR 2 RENTALS 85% $145.19 34 DORMITORY 97% $165.69 42 HOSPITAL 97% $165.69 43 HOTEL 97% $165.69 000 CONVERSION-RURAL 100% $170.81 2 ONE RESIDENCE 100% $170.81 4 MISC IMPROVEMENT 100% $170.81 85 COMBIN: SERV STN/RESTAURANT 100% $170.81 103 CHEMICAL TANK AND BULK STORAGE 100% $170.81 104 FOOD PROCESSING PLANT 100% $170.81 105 COLD STORAGE PLANT 100% $170.81 106 FACTORY 100% $170.81 119 PUBLIC UTILITY 100% $170.81 120 WATER MUTUAL OR COMPANY 100% $170.81 888 CONVERSION-COMPOSITE PROP 100% $170.81 32 CEMETERY & RELATED 101% $172.52 38 FUNERAL HOME 101% $172.52 60 NURSING HOME 102% $174.23 61 CONVALESCENT HOSPITALS 102% $174.23 62 CONVERTED RES USED AS NURSING 102% $174.23 28 BOWLING ALLEYS 112% $191.31 92 SKATING RINKS 112% $191 .31 50 SINGLE MEDICAL BLDGS TO 3 STORIES 124% $211.81 51 SMALL MEDICAL CENTER 124% $211.81 52 MEDICAL CENTER COMPLEX 124% $211 .81 53 HIGH RISE MEDICAL 124% $211.81 54 CONVERTED RESIDENCE TO MEDICAL 124% $211 .81 89 NEIGHBORHOOD SHOPPING CENTER 139% $237.43 Prepared by Carollo Engineers page2 4/6/2006 Book Page 226 20 AMUSEMENT PARKS 144% $245.97 35 ENTERTAINMENT CENTER 144% $245.97 73 RECREATION 144% $245.97 30 COIN OPERATED CAR WASH 151% $257.93 47 SUPERMARKET 151% $257.93 48 CONVENIENCE MARKET 151% $257.93 224 NIGHTCLUB 200% $341.62 90 COMMUNITY SHOPPING CENTER 226% $386.03 76 RESTAURANT -TAKE OUT 300% $512.43 77 RESTAURANT -COFFEE SHOP 600% $1,024.87 78 RESTAURANT-DINNER HOUSE 600% $1,024.87 79 RESTAURANT -CONVERSION FROM SFR 600% $1,024.87 29 CONVENTIONAL CAR WASH 796% $1,359.66 223 LAUNDROMAT 1800% $3,074.60 r [ L Prepared by Carollo Engineers page3 4/6/2006 Book Page 227 ' I L L L L ORDINANCE NO. OCSD-30 ADOPTING REVISED TABLE A RE RESIDENTIAL USER FEES, REVISED TABLE B RE PROPERTY USE CLASSIFICATIONS FOR COMMERCIAL OR INDUSTRIAL USERS, AND REVISED TABLE E RE ADMINISTRATIVE FEES AND CHARGES RELATING TO PERMITEES, AND REAFFIRMING ALL OTHER CHARGES AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ESTABLISHING SANITARY SEWER SERVICE CHARGES; ESTABLISHING CAPITAL FACILITIES CAPACITY CHARGES; ADOPTING MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL CHARGES, SOURCE CONTROL PERMITTEES AND WASTEHAULERS; AND REPEALING ORDINANCE NO. OCSD-26. --WHEREAS, the Board of Directors of the Orange County Sanitation District ("District") has previously adopted Ordinance No. OCSD-;M26XX, establishing annual Sanitary Sewer Service Charges for all uses, establishing Capital Facilities Capacity Charges to be imposed when properties either newly- connect to the District's system, or expand the use of the property previously connected to the District; establishing miscellaneous industrial discharger fees, source control/non-compliance sampling fees, and wastehauler charges, which Ordinance is presently in full force and effect; and WHEREAS, for purposes of improved efficiency and effectiveness of the District's operations, it is the intent, by the adoption of this Ordinance, to re enact the existing Ordinance that establishes sanitary sewer service charges and capital facilities fees, and to provide for increases in certain miscellaneous charges and fees. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: Section I. Fees and Charges Ordinance -Adopted ARTICLE I: ARTICLE II: TABLE OF CONTENTS RECITAL OF FINDINGS Section 1.01, Findings -Declaration of Intent SANITARY SEWER SERVICE CHARGES Section 2.01, Purpose and Scope Section 2.02, Annual Sanitary Sewer Service Charge WS&S -BRH:pj:201660:04/20/05 1 Book Page 228 I ARTICLE Ill: Section 2.03 A Exemptions 8. Application for Rebate C. Application for Refund D. Limitation Period E. Determination F. Administrative Fee Section 2.04, Annual Charge Based on Fiscal Year Section 2.05, Method of Collection Section 2.06, Credit for Industrial Permittees Table A Annual Sewer Service Charges for Residential Users Table 8 Annual Sewer Service Charges Property Use Classifications for Commercial or Industrial Users CAPITAL FACILITIES CAPACITY CHARGES Section 3.01, Purpose and Scope Section 3.02, Definitions Section 3.03, Connection Permits: Required Section 3.04, Capital Facilities Capacity Charge: Payment Section 3.05, Capital Facilities Capacity Charge: Time of Payment Section 3.06, Capital Facilities Capacity Charge: Schedule of Amounts Section 3.07, Supplemental Capital Facilities Capacity Charge: Significant Commercial -Industrial Users -Special Purpose Dischargers - Definitions Section 3.08, Supplemental Capital Facilities Capacity Charge: New Significant Commercial - Industrial Users Section 3.09, Supplemental Capital Facilities Capacity Charge: New Special Purpose Dischargers Section 3.10, Supplemental Capital Facilities Capacity Charge: Existing Significant Commercial - Industrial Users -Special Purpose Dischargers Table C Supplemental Capital Facilities Capacity Charges Section 3.11, Capital Facilities Capacity Charge: Replacement Section 3.12, Capital Facilities Capacity Charge: Remodeled Section 3.13, Payment of Capital Facilities Capacity Charge: Off-Site Sewers Not Part of Master Plan WS&S -BRH:pj:201660:04/20/05 2 Book Page 229 f [ l I L L L L ARTICLE IV: ARTICLEV: Relative to Reimbursement Agreements Section 3.14, No Refund or Transfer Section 3.15, Baseline Transferability Table D Capital Facilities Capacity Charges MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL DISCHARGERS, SOURCE CONTROL PERMITTEES AND WASTEHAULERS Section 4.01, Purpose and Scope Section 4.02, Administrative Fees and Charges Relating to Permittees Section 4.03, Industrial Discharger, Source Control, and Non-Compliance Sampling Fees Section 4.04, Special Purpose Discharge Permittees; Charges for Use Section 4.05, Class I and Class II Permittees -Charges for Use Section 4.06, Wastehauler Charges for Use Section 4.07, Administrative Appeals Table E Administrative Fees and Charges Relating To Permittees Table F Industrial Discharger, Source Control and Non-Compliance Sampling Fees Table G Class I and Class II Permittees and Special Purpose Discharge Permittees Charges For Use Table H Wastehauler Charges for Use MISCELLANEOUS Section 5.01, Application of Ordinance Section 5.02, Exceptions Section 5.03, Severability Section 5.04, Effective Date Section 5.05, Repeal Section 5.06, Certification and Publication ARTICLE I RECITAL OF FINDINGS Section 1.01. Findings -Declaration of Intent. The Board of Directors of District has previously adopted Master Plans, as more particularly described in Findings B, C, D, and E below, setting forth the financial and WS&S -BRH:pj:201660:04/20/05 3 Book Page 230 engineering needs of the District, and hereby adopts the following Findings supporting the amounts of charges and fees adopted pursuant to this Ordinance. A. That the former County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California (the "Predecessor Districts"), were nine individual County Sanitation Districts, organized pursuant to the County Sanitation District Act (California Health & Safety Code Section 4700 et seq.). By action of the Board of Directors of the Predecessor Districts, pursuant to specific legislation enacted by the California State Legislature in 1996, an application was submitted to the Orange County Local Agency Formation Commission to legally consolidate the nine Predecessor Districts into one single Sanitation District for all purposes. The application was approved, with an effective date of July 1, 1998. As of July 1, 1998, the Predecessor Districts ceased to exist, and one single consolidated County Sanitation District, known as the Orange County Sanitation District, came into existence in place of the Predecessor Districts. The District was formed to carry on the functions of the Predecessor Districts. B. That a comprehensive 30-year Master Plan of Capital Facilities, entitled "Collection, Treatment and Disposal Facilities Master Plan - 1989", hereinafter referred to as the "Master Plan", which includes detailed financial and engineering reports, was prepared, approved, and adopted by the Boards of Directors of the Predecessor Districts in 1989, setting forth and identifying the required future development of District Facilities, including the financial projections for providing sewer service to all properties within the individual service areas of each of the nine Predecessor Districts. C. That the financial and engineering reports of the Master Plan were made available to the public, both prior to and subsequent to the adoption of the Master Plan, and were subject to noticed public hearings, all in accordance with the provisions of the California Constitution and Government Code Section 66016, and other provisions of law. D. That the District, in 1997, as part of its maintenance and updating of its Master Plan, undertook a comprehensive evaluation and study of its operational and financial needs for the next 20 years, including a detailed assessment of all types and categories of users; the demands on the system and capacity needs of the system to provide necessary service to the multiple categories of users; the total costs of the existing and future facilities in the system; and alternate methodologies for establishing fair and equitable charges to connect to and gain access to the system. These comprehensive planning, engineering, and financial studies led to the development of an updated Comprehensive Master Plan of Capital Facilities, which was approved and adopted by OCSD Resolution No. 99-21 of the Board of Directors on October 27, 1999. E. That in support of this Ordinance and the revised charges for WS&S -BRH:pj:201660:04/20/05 4 Book Page 231 ,=::: I r [ l L ! I L..a L L sewer service and/or Capital Facilities Capacity Charges as provided for on Tables A, C, D and G herein, the Board of Directors finds that the Capital Improvement Program ("CIP") Validation Study for Fiscal year 2003-04 and the Secondary Treatment Peer Review, as approved by the Board of Directors, has resulted in the development of a Capital Improvement Program that provides for the implementation of secondary treatment standards, thereby improving effluent quality in a reasonably short period of time, consistent with the goals and policies of the Board of Directors, the member agencies, and the public, while also providing for the construction of necessary improvements to accommodate projected increased flows and the rehabilitation and refurbishment of existing facilities. The Board further finds that programming annual adjustments in sewer service charges over a period of years is appropriate and ensures adequate revenues to finance the improvements and programs necessary to implement secondary treatment standards, accommodate increased flows, rehabilitate and refurbish existing facilities, and retire any necessary or prudent debt incurred to finance such improvements in a reasonable manner and over a reasonable period of time. The Board of Directors also finds that such Sanitary Sewer Service Charges and Capital Facilities Capacity Charges are reasonably related to, and do not exceed the cost of providing sewer services. F. That the financial requirements of the District, as shown in reports prepared by Staff and Consultants relating to the Strategic Plan and the CIP validation studies, are based on current, reliable information and data relating to population projections, wastewater flow, and capital facilities' needs, and are expected to be realized in each year as described in the reports. G. That the revenues derived under the provisions of this Ordinance will be used for the acquisition, construction, reconstruction, maintenance, and operation of the sewage collection, wastewater treatment and disposal facilities of the District; to repay principal and interest on debt instruments; to repay federal and state loans issued for the construction and reconstruction of said sewerage facilities, together with costs of administration and provisions for necessary reserves; and to assist in the payment of costs to the District to provide all regulatory administration and laboratory services related to the industrial dischargers, source control permittees, and wastehauler users of the District's systems. H. That the owners or occupants of properties upon which all fees and charges established by this Ordinance are levied, discharge wastewater to the District's collection, treatment and disposal facilities. The costs of operating and maintaining said facilities have constantly increased due in part to increased regulatory requirements to upgrade the treatment process. I. That the need for upgraded and improved treatment of all wastewater collection, treatment and disposal facilities is required to protect the public health and safety, and to preserve the environment without damage. WS&S -BRH:pj:201660:04/20/05 5 Book Page 232 J. That the Sanitary Sewer Service Charges established and levied by this Ordinance are to allow the District to recover the reasonable costs to provide a service to individual properties which have been improved for any of numerous types of uses. The basis for the respective charge is the request of the owner of property or a structure thereon, for the benefit of him/her/itself, or the occupants of the property, to receive a service based upon actual use, consumption, and disposal of water to the District's system in lieu of disposal by other means. K. That the Sanitary Sewer Service Charges established by this Ordinance are not imposed as a condition of approval of a development project, as defined in California Government Code Section 66001, and do not exceed the estimated reasonable cost to provide the sewer service for which the fee is levied, as provided in Government Code Sections 66013 and 66016 and California Constitution Article XIIID. L. That the Sanitary Sewer Service Charges adopted herein will not necessarily result in an expansion of facilities to provide for growth outside the existing service area. The adoption of these Sanitary Sewer Service Charges will not result in any specific project, nor result in a direct physical change in the environment. M. That the Sanitary Sewer Service Charges adopted herein are established upon a rational basis between the fees charged each customer and the service and facilities provided to each customer of the District, a portion of which are necessary to replace the loss of ad valorem property taxes to the State General Fund as a result of state legislative action on September 2, 1992, and in subsequent years. N. That the Board of Directors has previously, by duly adopted Ordinances, commencing in 1969, and most recently by Ordinance No. OCSD- 2§.4, established Capital Facilities Capacity Charges, formerly known commonly as "connection charges" or "fees", to be paid by all persons obtaining a permit to connect to the District's system. Said Charges are required as a financial payment to have access to and use of the District's wastewater collection, treatment and disposal facilities in existence at the time of connecting to the system, and for future facilities to be constructed. 0. That the Sanitary Sewer Service Charges and Capital Facilities Capacity Charges established here, are an incident but not a condition of development, payable only on request to receive service by the property owner for the benefit of those persons on the property that use the service. The charges are not an incident of property ownership, nor are they a property- related service having a direct relationship to property ownership. Accordingly, the provisions of California Constitution Article XIIID are not applicable. WS&S -BRH:pj:201660:04/20/05 6 Book Page 233 r r r r L L [ L L L L P. That the District's previous and present Capital Facilities Capacity Charges Ordinances, include[d] authority for the District to levy an excess or supplemental capacity charge upon commercial and industrial users who discharge quantities or high strength wastewater greater than the established base line of authorized discharge. Q. That the Capital Facilities Capacity Charges re-enacted by this Ordinance are non-discriminatory, as applied to all users of the system, and are established upon a rational basis between the fees charged each category of property that is connecting, and the service and facilities provided to each connected property or structure, by the District, within a given category. R. That the miscellaneous charges and fees re-enacted by this Ordinance without change are established upon a rational basis between the fees charged to each industrial discharger, source control permittee, or wastehauler and the service and facilities provided to each. S. That the District is required by federal and state law, including the Federal Water Pollution Control Act, also known as the Federal Clean Water Act (33 U.S.C. 1251, et seq.), the General Pretreatment Regulations (40 C.F.R. 403), and the Porter-Cologne Water Quality Control Act (California Water Code Sections 13000 et seq.) to implement and enforce a program for the regulation of wastewater discharges to the District's sewers. T. That the District is required by federal, state and local law, to meet applicable standards of treatment plant effluent quality. U. That pursuant to these requirements, the Board of Directors has adopted an oGrdinance No. OCSD 01_, as amended, E~stablishing Wastewater Discharge Regulations. V. That the District incurs additional costs in conducting non- compliance sampling of those industrial wastewater dischargers who violate the District's Wastewater Discharge Regulations and in administering the industrial, wastehauler, and special discharge permit programs. W. That the oGrdinance_ No OCSD 01 , as amended, ~stablishing Wastewater Discharge Regulations, provides that the Board of Directors is to establish various fees and charges to recover those costs to the District which are made necessary by industrial dischargers and wastehaulers who violate the District's Wastewater Discharge Regulations. X. That the industrial discharger, source control, and wastehauler fees and charges hereby established by this Ordinance do not exceed the estimated reasonable costs to the District of industrial discharger, WS&S -BRH:pj:201660:04/20/05 7 Book Page 234 source control, or wastehauler use of the District's facilities and for the administration and implementation of permit and fee processing, non-compliance sampling, and related services associated with the District's Source Control Program. Y. That all fees and charges established herein have been approved by the District's Board of Directors at a noticed public meeting, all in accordance with applicable provisions of law. Z. That the adoption of this Ordinance is statutorily exempt under the California Environmental Quality Act pursuant to the provisions of Public Resources Code Section 21080(b)(8) and California Code of Regulations Section 15273(a). AA. That each of the Findings set forth in previous Ordinances Nos. OCSD-05, OCSD-06, OCSD-11, OCSD-13, OCSD-15, OCSD-18, OCSD-19, OCSD-20, OCSD-22, and OCSD-24 are reaffirmed and readopted hereat, except to the extent that they have been specifically superseded or otherwise amended by specific Findings herein. ARTICLE II SANITARY SEWER SERVICE CHARGES Section 2.01. Purpose and Scope. The purpose of this Ordinance is to establish Sanitary Sewer Service Charges required to be paid by property owners for the services and facilities furnished by the District in connection with its sanitation treatment works and sewage collection system. Revenues derived under the provisions of this Ordinance shall be used for the acquisition, construction, reconstruction, maintenance, and operation of the wastewater collection, treatment and disposal facilities of the District; to repay principal and interest on debt instruments; or to repay federal and state loans issued for the construction and reconstruction of said sewerage facilities, together with costs of administration and provisions for necessary reserves. Section 2.02 . Annual Sanitary Sewer Service Charge. Commencing with the effective date of this Ordinance, the owner of each parcel of real property located within the District which is improved with structures designed for residential, commercial, or industrial use and which, at the request of the owner or the owner's predecessor-in-interest, is connected to the District's system, shall pay an annual Sanitary Sewer Service Charge based on the respective class of users, in the sum or sums, as set forth in Tables A and B of this Ordinance, below. The annual Sanitary Sewer Service Charges for residential users are set forth in Table A. The applicable single family residential rate shown in Table A is multiplied by the applicable percentage figure shown on Table B with respect to the particular use classification to arrive at the WS&S-BRH:pj:201660:04/20/05 8 Book Page 235 error has been made by the District, or the County Tax Collector. Such proof shall include, but not be limited to, proof that: (1) The owner's parcel of property is not connected to the District's system; or (2) The property has not been classified in the proper land use category; or (3) A clerical error has been made. D. Limitations Period. Applications for rebates and refunds shall be deemed to be governed by the provisions of California Revenue & Taxation Code Sections 5096 and 5097, allowing for refunds for a period of four (4) years from the date of payment of the second installment of the bill claimed to be either inequitable or incorrect. E. Determination. All applications for rebates or refunds of the Sanitary Sewer Service Charge will be determined by the General Manager of the District, or his designee, who, based on the submitted proof, may grant a full or partial rebate or refund. F. Administrative Fee. At the time of filing the application for rebate or refund, the property owner shall pay District an administrative fee for the processing of such application. The amount of the fee shall be equal to the total of all fees and charges imposed on the District by any other public entity, such as the Orange County Tax Collector, the Orange County Auditor, or the Orange County Recorder, in connection with the rebate or refund. Section 2.04. Annual Charge Based on Fiscal Year. The Sanitary Sewer Service Charges established by this Ordinance shall be effective as of July 1 of each year, as set forth in Tables A and B, attached hereto, for the District's fiscal year, and shall remain in effect until such time as the rates adopted herein are changed by District Ordinance. There shall be no proration of such charges in any fiscal year. Section 2.05. Method of Collection. A. Pursuant to the authority granted by California Health & Safety Code Section 5473, and except as otherwise provided in Subparagraph 2.05B below, all sanitary sewer service charges established herein shall be collected on the County Tax Roll in the same manner, by the same persons, and at the same time as, together with, and not separately from, its general taxes. The County Tax Collector is authorized and hereby ordered to make said collections in accordance with the terms and conditions of agreements between the County of Orange and the District. WS&S -BRH:pj:201660:04/20/05 10 Book Page 237 I L L L L L 8. In the event District determines that, due to billing or payment error, or to inequity in the amount billed, a property owner has underpaid annual Sanitary Sewer Service Charges payable to District, District, within four (4) years after the date of mailing of the tax bill, may: (1) collect the amount of any deficiency directly on the County Tax Roll; (2) off-set the amount of any deficiency against any amounts that District determines is owing, by District, to the property owner, as a rebate or refund under this Ordinance; or (3) submit, directly to the property owner, a bill for the amount of any deficiency, which shall be due and payable within thirty (30) days of the invoice date and which, if not paid, shall become a lien on said property. Section 2.06. Credit for Industrial Permittees. A credit shall be allowed to all dischargers permitted pursuant to Article 3 of District Ordinance No. OCSD 01 , as amthe District's Wastewater Discharge Regulations ended, in an amount equal to the annual Sanitary Sewer Service Charge established by Section 2.02 of this Ordinance, in the same manner as credit is allowed for ad valorem taxes pursuant to Sections 302:6(8), and 303.6(8) of District Ordinance No. OCSD 01, as amended. TABLE A ANNUAL SEWER SERVICE USER FEES RESIDENTIAL USERS FISCAL YEAR 2003-04 2004-05 SFR MFR 0 $100.00 $ 70.00 $115.00 $ 80.50 SFR = SINGLE FAMILY RESIDENTIAL MFR= MUL Tl FAMILY RESIDENTIAL 2005-06 $151.00 $105.70 2006-07 $172.50 $120.75 2007 08 $217.00 $151.90 All properties located within Revenue Area No. 14 pay no annual service fees. District costs relating to providing service to these properties are billed by the DistrictOCSD directly to the Irvine Ranch Water District, the local agency providing the local sewer service. WS&S -BRH:pj:201660:04/20/05 11 Book Page 238 Assessor Use Code 1 5 6 8 121 122 124 125 126 201 666 777 112 113 58 100 44 71 72 110 111 115 116 33 94 95 96 97 74 36 40 68 21 22 23 24 39 57 83 TABLE B ANNUAL SEWER SERVICE CHARGES PROPERTY USE CLASSIFICATIONS FOR COMMERCIAL OR INDUSTRIAL USERS Description Vacant Land Parcel Common Area Parcel "Hold" Parcel Equivalent to Vacant Parcel of Minimal or No Value Subsurface Parcels Oil/Mineral Rights Mineral Rights Equipment Vacant Comm. Area-IMP Allee. Homeowners Exemption Add'I. Unassigned Vacant Septic Tank Property Steel Building Mini-Warehouse Nurseries (Plants) Drive-In Theater Lumber/Constr. Material Yard Parking Garage Paved Parking Lot Warehouse-Single Tenant Warehouse -Multi Tenant Recreational Vehicle Storage Truck Terminal Church Buildings Department Store Discount Store Unattached Single Store Strip Store Recreational Vehicle Park Financial Buildings Health Club High Rise Office Automobile Dealership Auto Repair Shop Automotive Service Used Car Lot Golf Course Motorcycle/Small Vehicle Building Automotive Service Station Percentage of SFR Per 1,000 SF or Unit 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 7% 7% 10% 10% 17% 17% 17% 17% 17% 17% 17% 20% 23% 23% 23% 23% 27% 27% 29% 30% 41% 41% 41% 41% 41% 41% 41% WS&S -BRH:pj:201660:04/20/05 12 Book Page 239 r I r r l f ' l L Assessor Use Code 84 86 65 66 67 69 7 55 107 108 109 114 37 101 26 45 88 3 10 11 12 13 14 15 16 17 18 63 64 56 81 82 98 99 118 19 34 42 43 0 2 TABLE B (CONTINUED) ANNUAL SEWER SERVICE CHARGES PROPERTY USE CLASSIFJCATIONS FOR COMMERCIAL OR INDUSTRIAL USERS Description Marine Service Station Percentage of SFR Per 1,000 SF or Unit 41% Com bin. -Service Station/Convenience Single Office Bldgs. to 3 Stories Small Office Center Office Complex Converted Residence to Office Mobile Home Mobile Home Park Light Industrial -Single Tenant Light Industrial -Multi Tenant Research and Development Industrial Park Fraternal Buildings Unattached Theater Airport and Related Buildings Marinas Low Flow Shopping Center Two or More Residences Duplex Only Triplex Only 04-Units Only 5 to 16 Units 17 to 25 Units 26 to 40 Units Only 41-99 Units Only 100 or More Units Developed with a Mix of Forms Low Rise Retirement Building High Rise Retirement Building Motels Pre-Schools, Nursery or Care Private Schools Store with Offices or Living Quarter Store with Office Upstairs Governmental Use Vacant/Develop. SFR with 1 or 2 rental units Dormitory Hospital Hotel Conversion-Cf 1, Rural PC One Residence 41% 41% 41% 41% 41% 50% 50% 50% 50% 50% 50% 51% 51% 53% 53% 53% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 82% 82% 82% 82% 82% 85% 97% 97% 97% 100% 100% WS&S -BRH:pj:201660:04/20/05 13 Book Page 240 Assessor Use Code 4 85 103 104 105 106 119 120 888 32 38 60 61 62 28 92 50 51 52 53 54 89 20 35 73 30 47 48 224 90 76 77 78 79 29 223 TABLE B (CONTINUED) ANNUAL SEWER SERVICE CHARGES PROPERTY USE CLASSIFICATIONS FOR COMMERCIAL OR INDUSTRIAL USERS Description Miscellaneous Improvement Comb. Serv. Stn./Restaurant Chemical Tank and Bulk Storage Food Processing Plant Percentage of SFR Per 1,000 SF or Unit 100% Cold Storage Plant Factory Public Utility Water Mutual or Company Conversion-Composite Prop. Cemetery & Related Buildings Funeral Home Nursing Home Convalescent Hospitals Converted Res. Used as Nursing Bowling Alleys Skating Rinks Single Medical Bldgs. to 3 Stories Small Medical Center Medical Center Complex High Rise Medical Converted Residence to Medical Average Flow Shopping Center Amusement Parks Entertainment Center Recreation Coin Operated Car Wash Supermarket Convenience Market Nightclub High Flow Shopping Center Restaurant -Take Out Restaurant -Coffee Shop Restaurant -Dinner House Restaurant -Conversion from SF Conventional Car Wash Laundromat 100% 100% 100% 100% 100% 100% 100% 100% 101% 101% 102% 102% 102% 112% 112% 124% 124% 124% 124% 124% 139% 144% 144% 144% 151% 151% 151% 200% 226% 300% 600% 600% 600% 796% 1,800% NOTE: Multiply the Table A Single Family Residential Rate by the percentage figure above in order to determine the rate per 1,000 square feet for the commercial or industrial user. WS&S -BRH:pj:201660:04/20/05 14 Book Page 241 f f f f j r L ' h L L ARTICLE Ill CAPITAL FACILITIES CAPACITY CHARGES Section 3.01 . Purpose and Scope. The purpose of this Ordinance is to impose Capital Facilities Capacity Charges when properties, either newly- connect to the District's system, or expand the use of the property previously connected to the District. Revenues derived under the provisions of this Ordinance will be used for the acquisition, construction, and reconstruction of the wastewater collection, treatment and disposal facilities of the District; to repay principal and interest on debt instruments; or to repay federal or state loans for the construction and reconstruction of said sewerage facilities, together with costs of administration and provisions for necessary reserves. Section 3.02 . Definitions. A. "Actual construction costs" include the cost of all activities necessary or incidental to the construction of a District facility, such as financing, planning, designing, acquisition of the property or interests in the property, construction, reconstruction, rehabilitation, and repair. B. "Capital Facilities Capacity Charge" means a one-time, non- discriminatory charge imposed at the time a building or structure is newly connected to the District's system, directly or indirectly, or an existing structure or category of use is expanded or increased. Said charge is to pay for District facilities in existence at the time the charge is imposed, or to pay for new facilities to be constructed in the future, that are of benefit to the property being charged. This charge does not apply to temporary facilities or operations that are regulated under the provisions of a Special Purpose Discharge Permit. C. "Connection fee" means a fee equal to the cost necessary to physically connect a property to the District's system, including but not limited to, installation of meters, meter boxes, pipelines, and appurtenances to make the connection and which fee does not exceed the actual cost of labor, materials, and overhead for the installation of those facilities. D. "Non-discriminatory" means that the Capital Facilities Capacity Charge does not exceed an amount determined on the basis of the same objective criteria and methodology applicable to comparable public or non- public users, and is not in excess of the proportionate share of the cost of the District's facilities of benefit to the person or property being charged, based upon the proportionate share of use of those facilities. E. "Public agency" means the United States or any of its agencies, the State or any of its agencies, the Regents of the University of WS&S -BRH:pj:201660:04/20/05 15 Book Page 242 California, a county, city, district, school district, local or regional public authority, or any other political entity, subdivision or public corporation of the State. F. The Supplemental Capital Facilities Capacity Charge, as provided for in Sections 3.07, 3.08, 3.09, and 3.10 of this Ordinance, is an annual charge payable to the District on a quarterly or annual basis, as determined by the District. Said charge is required to be paid by dischargers that exceed the maximum quantity of flow or constituents (BOD or SS) allowed as a base use for which the CFCC is paid. Section 3.03. Connection Permits: Required. A. Connection permits are required of each and every dwelling unit, and each commercial or industrial building, and structure connecting directly or indirectly to the District's sewerage system facilities. Included are the connections of laterals to local municipal sewerage facilities, and the connection of local municipal sewerage facilities and laterals to the District's facilities. Multiple detached structures on a single parcel of property shall each be required to obtain a connection permit. B. Except as authorized by the issuance of a Special Purpose Discharge Permit under Sections 305 -305.6 of Ordinance f\Jo. OCSD 01 the District's Wastewater Discharge Regulations, or as amended, or as authorized pursuant to a special extra territorial service agreement approved by the Board of Directors, no permit shall be valid unless the real property to be served by use of the permit is included within the boundaries of the District and within the boundaries of a local sewering agency authorized to maintain public sewering facilities. However, a permit, as authorized above, may be issued for property to be served outside the boundaries of a local sewering agency if a local sewering agency makes application for the issuance of such permit. There will be a non-discriminatory Capital Facilities Capacity Charge assessed to public agencies for connecting directly or indirectly to the District's sewerage system facilities, and a connection permit must be obtained. Section 3.04. Capital Facilities Capacity Charge: Payment Required. No application for a permit for a connection of a structure to a District sewerage facility, or to any sewerage facility which discharges into a District sewerage facility, shall be approved, nor a permit issued, until a District Capital Facilities Capacity Charge is paid by the applicant, except as provided for discharges under a Special Purpose Discharge Permit. No connection permit shall be issued unless there is an established category of use of the property to be served or a valid building permit issued which establishes the category of use of said property. WS&S -BRH:pj:201660:04/20/05 16 Book Page 243 ( I I L L Section 3.05. Capital Facilities Capacity Charge: Time of Payment. A. Payment of the Capital Facilities Capacity Charge established by this Ordinance for connection to the District's sewerage system facilities shall be required at the time of issuance of the building permit for all construction within the District, excepting in the case of a building legally exempt from the requirement of obtaining a permit. The payment of the Capital Facilities Capacity Charge for such exempt buildings will be required at the time of and prior to the issuing of a plumbing connection permit for any construction within the territorial limits of the District, or if none, prior to the issuance of a Certificate of Occupancy. B. Upon application of any property owner seeking to connect to the District's system, the Board of Directors of District, in its sole and absolute discretion and upon a finding of compelling need, may, pursuant to the authority of California Health & Safety Code Section 5474, approve of an agreement with the property owner for the payment of the applicable connection charge in installments over a period of not to exceed five (5) years, bearing an interest rate on the unpaid balance of not to exceed ten (10%) percent per annum, and that the charges and interest shall constitute a lien on the property. Section 3.06. Capital Facilities Capacity Charge: Schedule of Amounts. Every person or entity connecting any new or expanded building or structure to the District's system facilities shall pay a Capital Facilities Capacity Charge in the amount for the applicable category of use set forth on Table C, below. WS&S-BRH:pj:201660:04/20/05 17 Book Page 244 TABLE C CAPITAL FACILITIES CAPACITY CHARGES Use Category Commercial -Industrial Low Demand2 Average Demand4 High Demand3 Single Family Residential (SFR) 5+ Bedrooms 4 Bedrooms 3 Bedrooms 2 Bedrooms 1 Bedroom Multi-Family Residential (MFR) 4+ Bedrooms 3 Bedrooms 2 Bedrooms 1 Bedroom Studio Rate Basis Per 1,000 square feet1 Per 1,000 square feet Per 1,000 square feet Per 1,000 square feet *%of Base (Per Unit) 1.39 (Per Unit) 1.19 (Per Unit) 1.00 (Base) (Per Unit) 0.81 (Per Unit) 0.62 *%of Base (Per Unit) 1.08 (Per Unit) 0.89 (Per Unit) 0.70 (Per Unit) 0.50 (Per Unit) 0.32 Supplemental CFCC for Permit Users, includes 5% cost of funds. Flow, gallons per day BOD, pounds per day SS, pounds per day Base Charge $ 210.001 $1,310.001 $3,110.001 Base Charge $6,060.00 $5,190.00 $4,360.00 $3,530.00 $2,700.00 l3ase Charge $4,710.00 $3,880.00 $3,050.00 $2,180.00 $1,400.00 $0.001344 $0.754730 $0.09172Q 1Provided that the minimum Capital Facilities Capacity Charge for such new construction shall be $4.360.00; and all calculations shall be on a 1,000 square foot, or portion thereof, basis. A schedule of the Capital Facilities Capacity Charges specified herein will be on file in the Office of the Board Secretary of the District, and in the Building Department of each City within the District. 2Low Demand connections are the following categories of Users: Nurseries; Warehouses; Parking Structures; RV Storage; Churches; Truck Terminals; RV Parks; Lumber/Construction Yards; and other dischargers whose flow is similar in volume to these listed categories. 3High Demand connections are the following categories of users: Restaurants, Supermarkets; Car Washes; Coin Laundries; Amusement Parks; Shopping Centers with Restaurants; Food Processing Facilities; Textile Manufacturers; and other dischargers whose flow is similar in volume to these listed categories. 4AII other connections are Average demand users. *SFR -The rates for each size of SFR and MFR are established with a 3-bedroom SFR having a base of 1.0, and all others are a relative percentage higher or lower than 1.0, depending on size of unit, as noted. WS&S -BRH:pj:201660:04/20/05 18 Book Page 245 r i , r f I l , ! j Lt L L Section 3.07. Supplemental Capital Facilities Capacity Charge: Significant Commercial -Industrial Users and Special Purpose Dischargers - Definitions. A. A Significant Commercial -Industrial User ("SCIU") is any person or entity who discharges commercial or industrial process flow, but excluding domestic sewage flow, in an amount greater than 25,000 gallons per day ("gpd"), or Biochemical Oxygen Demand ("BOD") greater than 150 pounds per day, or Suspended Solids ("SS") greater than 150 pounds per day, or who is required to obtain a Waste Discharge Permit, as prescribed by Ordinance No. OCSD 01 , as amended, Article 3 of the District's Wastewater Regulations, due to having federally or District regulated or significant discharges. B. A special purpose discharger ("SPD") is any person or entity who discharges to the sewer system wastewater or process flow in an amount greater than 25,000 gpd (excluding domestic, industrial or commercial) and who is required to obtain a Special Purpose Discharge Permit as prescribed in Section 305 of Ordinance No. OCSD 01 or its su the District's Wastewater Regulationsccessor. C. An Existing SCIU or SPD is any SCIU or SPD connected and discharging to the District's system prior to January 1, 2000. D. A New SCIU or SPD is any user who connects and discharges to the District's system pursuant to a Waste Discharge Permit issued on or after January 1, 2000; or if previously connected and not an SCIU, as defined in Subparagraphs 3.07A and B above, but, subsequent to January 1, 2000, increases flow, or BOD, or SS to a level as to constitute an SCIU or SPD. E. The maximum discharge allowed to a user, for which a base Capital Facilities Capacity Charge is paid, as per Table C, above, is 25,000 gallons per day ("gpd"), or 150 pounds each of BOD and SS (the "base use"). Discharge of flow, or BOD, or SS in amounts greater than allowed by this Subsection 3.07E shall be subject to the provisions of Sections 3.08 and 3.09 hereof. F. Each Existing SCIU shall have a baseline of allowed discharge of flow, and BOD, and SS established by the District as of January 1, 2000. The baseline shall be based upon the discharge for Fiscal Year 1998-99, or upon such other discharge data which the District determines is representative of the user's actual annual discharge to the sewerage system. Dischargers who are deemed to be SCIU's solely because of the requirements to obtain a Waste Discharge Permit, pursuant to Section 3.07 A above, shall have a minimum baseline established as follows: Flow -25,000 gallons per day; BOD -150 pounds per day; and SS -150 pounds per day. The SCIU shall be authorized to WS&S -BRH:pj:201660:04/20/05 19 Book Page 246 discharge flow, and BOD, and SS up to the baseline amounts without payment of a Supplemental Capital Facilities Capacity Charge. G. Each Existing SPD shall have a baseline of 25,000 gpd, 150 pounds per day of BOD and 150 pounds of SS. The Existing SPD shall be authorized to discharge flow up to 25,000 gpd without payment of a Supplemental Capital Facilities Capacity Charge. H. The Supplemental Capital Facilities Capacity Charge, as prescribed by Sections 3.08, 3.09, and 3.10 below, shall be payable commencing with the effective date of this Ordinance. I. Within two (2) years from the date of the District's written notice to the existing SCIU of its baseline amounts, the existing SCIU, as described in Section 3.07C, shall have a right to appeal the District's established baseline for the SCIU. The appeal shall be to the General Manager, or his designated representative, who shall have discretion, based upon extraordinary circumstances, wherein the established baseline is not representative of the historical average daily discharge by the SCIU for a yearly period, to modify the baseline amounts for the current year, or on a permanent basis, subject to terms and conditions as prescribed by the General Manager. The decision of the General Manager shall be final. Section 3.08. Supplemental Capital Facilities Capacity Charge: New Significant Commercial -Industrial Users. In addition to the base Capital Facilities Capacity Charge, as prescribed in Table C, for commercial -industrial use category properties, all New SCIU's shall pay a Supplemental Capital Facilities Capacity Charge for each gallon of flow, or pound of BOD, or SS, exceeding the base use discharge maximums, in the amount shown in Table D. Section 3.09. Supplemental Capital Facilities Capacity Charge: New Special Purpose Dischargers. All New SPDs shall pay a Supplemental Capital Facilities Capacity Charge of $0.001344 per gallon per day for each gallon of flow exceeding 25,000 gallons per day. Upon issue of permission to discharge, SPD with discharges above 25,000 gpd shall pay a nonrefundable Supplemental Capital Facilities Capacity Charge, prior to discharge, for one million gallons above 25,000 gpd. The deposit will be credited by the District against future Supplemental Capital Facilities Capacity Charges. Section 3.10. Supplemental Capital Facilities Capacity Charge: Existing Significant Commercial -Industrial Users and Special Purpose Dischargers. A. All Existing Significant Commercial -Industrial Users connected to and discharging to the District's system shall be required to pay a Supplemental Capital Facilities Capacity Charge upon the occurrence of either (i) an increase of discharge flow of 25,000 gallons per day ("gpd"), or 25% per day WS&S -BRH:pj:201660:04/20/05 20 Book Page 247 r r r f r- l ,- l l L 1 l • L L over its established baseline authorization, whichever is lesser; or (ii) an increase of either BOD or SS discharge of 150 pounds each per day, or 25% each per day, whichever is lesser, over its established baseline authorization. B. The Supplemental Capital Facilities Capacity Charge shall be in the following amounts for each component that is increased as provided in Section 3.1 0A above: TABLED SUPPLEMENTAL CAPITAL FACILITIES CAPACITY CHARGES Flow BOD ss Gallons Per Day Pounds Per Day Pounds Per Day Da ily Charge $0.001344 $0.754730 $0.09172Q C. All Existing SPDs connected and discharging to the sewer shall be required to pay a Supplemental Capital Facilities Capacity Charge upon occurrence of an increase of discharge flow over 25,000 gpd. The Supplemental Capital Facilities Capacity Charge shall be $0.001001 0.001344 per gallon per day of discharge for each gallon above 25,000 gpd. D. The Supplemental Capital Facilities Capacity Charge shall be calculated on the basis of the average daily quantity of discharge in excess of the User's baseline or 25,000 gpd for SPDs. The daily averages will be based on the daily discharges for a year, utilizing discharge records and reports of the District. Section 3.11 . Capital Facilities Capacity Charge: Replacement Structures. For new construction replacing former structures, the Capital Facilities Capacity Charge shall be calculated and paid to the District on the rate basis of the category of the new use and the ~mounts as set forth in Table C, less a credit amount, up to the amount of the new Capital Facilities Capacity Charge, equal to a charge, as prescribed in Table C that would be for the prior category of use which was terminated and removed. Section 3.12. Capital Facilities Capacity Charge: Remodeled Structures. In the case of existing structures connected to the District's system facilities, to which new construction or alteration is made to change or increase the category of use, a Capital Facilities Capacity Charge shall be calculated and paid to the District on the rate basis of the category of the new use and the amounts as set forth in Table C, less a credit amount, up to the amount of the new Capital Facilities Capacity Charge, equal to a charge, as prescribed in Table C for the prior category of use. WS&S-BRH:pj:201660:04/20/05 21 Book Page 248 Section 3.13. Payment of Capital Facilities Capacity Charge: Off- Site Sewers Not Part of Master Plan Relative to Reimbursement Agreements. A charge for connection to off-site sewers which are not included as part of the District Master Plan and for which a Non-Master Plan Reimbursement Agreement has been entered into between the District and the property owner, shall be paid in the amount provided for in said Agreement, to be known as a Non-Master Plan Capital Facilities Capacity Charge. The amount set forth in said Agreement shall be the amount due, provided the original Agreement is still in force. The Non-Master Plan Capital Facilities Capacity Charge shall be in addition to the other Capital Facilities Capacity Charges provided for in Sections 3.06 through 3.10 hereinabove, established for property connecting to said facilities. Section 3.14. No Refund or Transfer. A Capital Facilities Capacity Charge is paid for the connection of a specific building or structure on a parcel of property. No refund of any charge shall be made because of non-use or change of use, or any other reason. The connection permit is non-transferable to any other parcel of property. Section 3.15. Baseline Transferability. The baseline of allowed discharge of flow, BOD and SS used to calculate a Supplemental Capital Facilities Capacity Charge shall not be transferable, nor shall a credit for such previously existing baseline be provided to another SCIU concurrently or subsequently occupying the same property. Each such SCIU shall pay Supplemental Capital Facilities Capacity Charges in accordance with Section 3.08 above. WS&S-BRH:pj:201660:04/20/05 22 Book Page 249 Section 4.07. Administrative Appeals. A. Any user, permit applicant, or permittee affected by any decision, action, or determination by the District may, within forty-five (45) days of the date of mailing by the District of the initial invoice for fees imposed pursuant to this Ordinance, request that the District reconsider imposition of such fees. Following review of such a request, the District shall notify the user, permit applicant, or permittee by certified mail of the District's decision on the reconsideration request. B. Any user, permit applicant, or permittee adversely affected by the District's decision on the reconsideration request, may file an appeal in accordance with Sections 617 and 619 of the District's Wastewater Discharge Regulations Ordinance No . OCSD 01 , as amended. WS&S -BRH:pj:201660:04/20/05 24 Book Page 251 TABLE F INDUSTRIAL DISCHARGER, SOURCE CONTROL AND NON-COMPLIANCE SAMPLING FEES Cost of Processing and Sampling Following a Minor Violation Cost of Processing and Sampling Following a Major Violation Cost of Analysis Heavy Metals: -Aluminum -Antimony -Arsenic -Cadmium -Chromium -Copper -Gold -Lead -Molybdenum -Nickel -Palladrum -Platinum -Selenium -Silver -Thallium -Zinc Mercury 601/602 604 606 608 610 WS&S -BRH:pj:201660:04/20/05 26 Book Page 253 Charge $225. 00/event $500. 00/event Charge $35.00/each $78.00 $152.00 $223.00 $254.00 $523.00 $73.00 r r ( TABLE F (CONTINUED) INDUSTRIAL DISCHARGER, SOURCE CONTROL AND NON-COMPLIANCE SAMPLING FEES 612 624 625 Ammonia Analysis as Nitrogen Biochemical Oxygen Demand (BOD) BOD and Suspended Solids (SS) Analysis Chemical Oxygen Demand Conductivity Cyanide (Amenable) Dissolved Mineral Solids Gamma Radiation Determination Gross Alpha and Beta Determination Tritium Determination Oil & Grease (Hexane Soluble Matter) Oil & Grease (Mineral Partition) Total Organic Nitrogen pH Fluoride Suspended Solids (Total) Suspended Solids (Total and Volatile) Total Dissolved Solids Total Sulfides Charge $200.00 $355.00 $661.00 $ 21.00 $ 44.00 $ 67.00 $ 44.00 $ 15.00 $ 70.00 $ 15.00 $115.00 $ 50.00 $ 50.00 $ 74.00 $ 74.00 $ 48.00 $ 8.00 $ 51.00 $ 23.00 $ 44.00 $ 14.00 $ 29.00 SELF-MONITORING AND DATA REPORTING NON-COMPLIANCE Cost of Processing and Issuing Significant Non-Compliance Notification Cost of Processing Annual SNC and Publication WS&S -BRH:pj:201660:04/20/05 27 Book Page 254 $165.00 $260.00 TABLE G CLASS I AND CLASS II PERMITTEES AND SPECIAL PURPOSE DISCHARGE PERMITTEES CHARGES FOR USE Class I and II Permit User FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 Flow(*) $316.38 $577.30 $637.55 $665.15 B.O.D. (**) $216.13 $270.68 $288.50 $348.36 S.S. (***) $207.35 $414.27 $432.14 $333.09 S12ecial Pur12ose Discharge Permit Flow(*) B.O.D. (**) S.S . (***) (*) Flow (**) B.O.D. (***) S.S. FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 $316.38 $577.30 $637.55 $665.15 $216.13 $270.68 $288.50 $348.36 $207.35 $414.27 $432.14 $333.09 Per million gallons of Flow Per thousand pounds of Biochemical Oxygen Demand Per thousand pounds of Suspended Solids J;:¥ 2Q07 08 $773.32 $330.53 $473.50 F¥ 2007 08 $773.32 $330.53 $473 .. 5Q. All properties located within Revenue Area No. 14 pay no annual service fees. District costs relating to providing service to these properties are billed by OCSD directly to the Irvine Ranch Water District, the local agency providing the local sewer service. WS&S -BRH:pj:201660:04/20/05 28 Book Page 255 r f ( { l Wastehauler Fees TABLE H WASTEHAULER CHARGES FOR USE Charge for Use -Waste originating within Orange County Charge for Use -Waste originating outside Orange County Charges $0.0§_/gallon of truck capacity $0.1~gallon of truck capacity Waste hauled from a source that is not within the District's service area is prohibited unless authorized by the General Manager. Service area is defined as anyt:Ae area the District has an agreementagreements to serve. WS&S -BRH:pj:201660:04/20/05 29 Book Page 256 II- II- II- ARTICLEV MISCELLANEOUS Section 5.01. Application of Ordinance. The provIsIons of this Ordinance shall be in addition to the provisions of the District~ Ordinance No . OCSD 01 , as amended, Establishing Wastewater Discharge Regulations for gYse of District's ~Sewage f~acilities, including provisions for payment of charges or fees related thereto; District's QGrdinance No. OCaD 21 , as amended,_g-----€-stablishing Fees Concerning Annexations of Territory to the District; and any other District Ordinances and Resolutions not in conflict herewith. Section 5.02. Exceptions. The provisions of this Ordinance shall apply to all owners of properties within the District, including those properties otherwise deemed exempt from payment of taxes or assessments by provisions of the State Constitution or statute, including properties owned by other public agencies or tax-exempt organizations, except as expressly provided herein. The Board of Directors of the Orange County Sanitation District does further hereby ORDAIN: Section II. Severab ility. If any provision of this Ordinance, or the application to any-_person or circumstances is held invalid by order of Court, the remainder of the_---Ordinance, or the application of such provision to other persons or other -circumstances, shall not be affected. Section Ill. Effective Date. This Ordinance shall take effect July 1, 200§. Section IV. Repeal. Ordinance No. OCSD-2§ is hereby repealed. Section V. Certification and Publication. The Secretary of the Board shall certify to the adoption of this Ordinance, and shall cause a summary to be published in a n11ewspaper of general circulation as required by law. WS&S-BRH:pj:201660:04/20/05 30 Book Page 257 f PASSED AND ADOPTED by a vote of not less than two-thirds of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held May 25, 2005 __________ _ CHAIR, BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT ATTEST: SECRETARY, BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT r I D·ISTRICTBRADLEY R. HOGIN, -GENERAL COUNSEL { L L L WS&S -BRH:pj:201660:04/20/05 31 Book Page 258 Two Year Budget Summary Revenues: Fees & Charges General Income Debt Proceeds Total Expenditures: CIP, including Debt Treatment and Disposal Costs Central Agency Costs± Total 2006-07 $179 million (47%) $102 million (27%) $100 million (26%) $381 million 2006-07 $326 million (71%) $ 71 million (16%) $ 61 million (13%) $458 million ± Includes self insurance requirements. PRIOR COMMITTEE/BOARD ACTIONS None. PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT D This item has been budgeted. (Line item: ) 2007-08 $205 million (36%) $111 million (20%) $250 million (44%) $566 million 2007-08 $424 million (75%) $ 76 million (13%) $ 66 million (12%) $566 million D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. 1Z1 Not applicable (information item) ADDITIONAL INFORMATION Two-Year Budget The Proposed 2006-07 District Budget is approximately $458 million. The District's Capital Improvement Program and Treatment and Disposal Program represent 71 % ($321M) and 16% ($71M) of the budget respectively. These two activities represent the largest portion of the budget (87%) and are vetted through a separate and established approval process. Of the remaining 13%, approximately half is related to staffing costs. The General Manager has recommended no increase to the current authorized staffing level. Given that 87% of the budget is reviewed separately and nearly 6% is related to staffing \ where no increases are proposed, only 7% of the budget remains. It is for these reasons, that staff recommends adopting a two-year budget. Staff will continue to report on the CIP and Treatment and Dispo:;al program. Staff will also report annually on all staffing changes. The full budget will be officially adopted on a biannual basis. H:ldeptlagenda\FAHRIFAHR2006\0406\06.06-29.District Budget 06-07-08.doc Revised: 01 /04/06 Book Page 260 Page2 [ L L L L L The Budget Development Process Staff completed a comprehensive list of assumptions to apply to the budget relating to costs, revenue, rates, inflation, etc. These assumptions were subsequently recommended by the Finance, Administration and Human Resources (FAHR) Committee and approved by the Board. With these guidelines in mind, District finance staff reviewed all major District resources and expenditures. The General Manager met with each department head and division leader to review, discuss and prioritize each department's major activities. These activities were also reviewed to ensure alignment with the District's goals. A formal process for reviewing these goals will be established as a part of the development of the District's Strategic Plan and will be updated annually. Revenues and Expenditures Revenues The Sanitation District obtains it revenues from three main sources: 2006/07 2007/08 Fees and Charges General Income Debt $179 million (47%) $102 million (27%) $100 million (26%) $381 million $205 million (36%) $111 million (20%) $250 million (44%) $566 minion Total A) Fees -$179 million (47%) $205 million (36%) 1) General User Fees $153 million $175 million User fees are ongoing fees for service paid by customers connected to the sewer system. A property owner, or user, does not pay user fees until connected to the sewer system and receiving services. Once connected, a user is responsible for his share of the system's costs , both fixed and variable, in proportion to his demand on the system. These fees are for both Single Family Residences (SFR) and Multiple Family Residences (MFR). 2) Permit User Fees $15 million $17 million Permit fees are paid by large industrial and commercial property owners connected to the sewer system. These fees are for the owner's share of the system's costs, both fixed and variable, in proportion to his demand on the system. Since the inception of the Permit User Fee program in 1970, users of the District's system that discharge high volume or high strength wastewater have been required to obtain a discharge permit and pay extra fees for the costs of service. The fees are initially calculated on the basis of actual flow, Biochemical- Oxygen Demand (BOD), and Suspended Solids (SS) discharged to the sewer and are subsequently reduced by the actual property taxes they have paid to the District. This practice is intended to ensure that these users pay their actual cost of service through a combination of user fees and property taxes. H:\deptlagenda\FAHRIFAHR2006\0406\06.06-29.District Budget 06-07-08.doc Revised: 01/04/06 Book Page 261 Page 3 3) Capital Facilities Capacity Charge (CFCC) $12 million $12 million The Capital Facilities Capacity Charge charged to newly connected customers and to customers with facility expansions which indicate a potential for increased flows. It is intended to pay for costs of future plant growth that is necessitated by the additional capacity needed as customers connect or increase their flow capacity. The recent independent study of the District's rate structure indicates that these rates should be adjusted upward. Residential CFCC will increase at a greater that sewer service fees because the CFCC have remained flat for several years and must also be adjusted to reflect the increased Capital Improvement Program (CIP). B) General Income -$102 million (27%) $111 million (20%) 1) Property Taxes $56 million $58 million The County is permitted by State law (Proposition 13) to levy taxes at 1 percent of full market value (at time of purchase) and can increase the assessed value no more than two percent per year. The District receives a share of the basic levy proportionate to what was received in the 1976 to 1978 period less $3.5 million, the amount that represents the State's permanent annual diversion from special districts to school districts that began in 1992-93. The District's share of the one percent ad valorem property tax is dedicated for the payment of COP debt service. The apportionment of the ad valorem tax is pursuant to the Revenue Program of the Environmental Protection Agency and the State Water Resources Control board and in accordance with COP documents and Board policy. As a result of the State fiscal crisis, the District did not receive its full allocation of property tax funds for the previous two fiscal years. The Governor's Proposed 2006-07 Budget includes the restoration of these funds. If included and adopted within the official State budget, the District would receive an additional $20 million over the 2005-06 allocation. 2) Interest $19 million $17 million Interest earnings are generated from the investment of accumulated reserves consisting of a cash flow/contingency, a capital improvement, a renewal/replacement, and a self-insurance reserve. 3) Other $28 million $36 million The Other General Income category is comprised of a variety of smaller dollar items. Charges to Irvine Ranch Water District for Revenue Area 14's share of the treatment plant's operating costs, capital costs, and equity are approximately $14M annually. The Sanitation District is anticipating selling additional capacity to the Santa Ana Watershed Project Authority in FY 2006-07 for $3M. The Groundwater Replenishment System project, a cost-sharing project with the Orange County Water District, will give the Sanitation District credit for our proportionate share of grant revenues which are estimated to be $2M in FY 2006-07. H:ldeptlegenda\FAHR\FAHR2006\0406106.06-29.District Budget 06-07-08.doc Revised: 01104/06 Book Page 262 Page4 C) Debt-$100 million (26%) $250 million (44%) 1) Certificates of Participation (COP) Certificates of Participation (COPs) are the District's primary mechanism for financing capital projects. COPs are repayment obligations based on a lease or installment sale agreement. COPs are not viewed as "debt" by the State of California, but rather a share in an installment arrangement where the District serves as the purchaser. Expenditures The District spends it funds on three activities: CIP, including Debt Treatment and Disposal Central Agency Total 2006-07 $326 million (71 %) $ 71 million (16%) $ 61 million (13%) $458 million A) Capital Improvement Program (CIP) -$326 million (71 %) The District's CIP can be divided into five distinct areas 1) Secondary Treatment Facilities 2) Ground Water Replenishment 3) Treatment Plant Rehabilitation and Upgrades 4) Collections 5) Debt 2007-08 $424 million (75%) $ 76 million (13%) $ 66 million (12%) $566 million $424 million (72%) Also related to the CIP are the District's debt service payments. Primarily, debt is issued to support the capital program because the program is too large to be supported by a "pay-as-you-go" basis. Additionally, if the District were able to fund these projects on a "pay-as-you-go" basis, there would be an equity issue to be addressed, as current rate payers would fund all of the costs of projects for which future rate payers would receive a portion of the benefits. As previously mentioned, the District issues debt in the form of Certificates of Participation (COPs). COPs are a form of lease revenue bond that permits the investor to participate in a stream of lease payments, installment payments or loan payments relating to the acquisition or construction of specific equipment, land or facilities. B) Treatment and Disposal Costs -$71 million (16%) $76 million (13%) The District allocates $71 million and 250 positions annually to perform the operations at its two treatment plants and other related treatment activities. Activities include wastewater treatment processes, biosolids disposal, disinfection and odor control. Expenditures for the purchase of chemicals represent the largest non-salary related component of the budget. C) Other Central Costs -$61 million (13%) $66 million (12%) The District allocates $59 million or 12% of its resources to support activities not directly charged to the CIP or Treatment and Disposal (Regional Assets, Technical Services and Administration). H:\depllagenda\FAHRIFAHR2006\0406\06.06-29.District Budget 06-07-08,doc Revised: 01104106 Book Page 263 Page 5 Less than 5% of the District's budget is allocated to the Administration units ($22M). As the proposed budget includes no increases to the current authorized staffing, only 3% of the total budget is dedicated to salaries and benefits in these units ($15M). Most central costs are for non-labor expenditures, such as property and general liability insurance, training, materials and supplies, and service agreements. H:ldept\agenda\FAHR\FAHR2006\0406106.06-29.District Budget 06-07-08.dac Revised: 01/04/06 Book Page 264 Page6 Expenses by Department Budget($ Millions) Total Staffing -Positions (FTEs) (Operating Costs OnJy) 2005-06 2006-07 2007-08 2005-06 2006-07 2007-08 Administation Budget Proposed Proposed Budget Proposed Proposed General Manager $ 1.6 $ 2.4 $ 2.5 2.0 3.0 3.0 Finance 7.6 7.1 8.0 49.5 50.5 50.5 Human Resources (1) 6.1 6.2 6.4 50.5 41.0 41.0 Information Technology (2) 6.5 6.5 6.9 45.0 32.0 32.0 r Administration -Subtotal 21.8 22.2 23.8 147.0 126.5 126.5 l Operating Regional Assets (3) 11.2 10.7 10.9 62.0 51.0 51.0 r Technical Services 23.2 22.2 23.5 114.0 119.0 119.0 Engineering 4.3 3.6 4.4 98.7 98.2 98.2 Operations & Maintenance(4) 57.3 70.9 76.2 222.3 249.3 249.3 Operating -Subtotal 96.0 107.4 115.0 497.0 517.5 517.5 Grand Total $ 117.8 $ 129.6 $ 138.8 644.0 644.0 644.0 i Expenses by Category (Operating Costs Only) 2005-06 L Revised 2005-06 2006-07 2007-08 Description Budget Projected Proposed Proposed l Salaries, Wages, & Benefits $ 69.6 $ 69.5 $ 72.5 77.4 Administrative Expenses 1.3 1.2 1.3 1.3 Printing & Publication 0.5 0.5 0.5 0.6 Training & Meetings 1.3 1.0 1.4 1.4 Operating Expenses 20.5 18.6 23.0 26.4 Contractual Services 14.4 15.1 17.2 17.9 Professional Services 4.5 3.5 3.6 3.0 L Research & Monitoring 1.4 1.3 1.3 1.4 Repairs & Maintenance 8.3 8.0 10.5 10.4 l Utilities 6.1 7.8 8.8 9.1 Other Materials, Supplies, and Services 2.9 2.8 2.2 2.7 Total Other Non-Operating 0.7 0.1 1.3 1.3 L Capital Grants to Member Agencies 2.5 3.8 2.5 2.5 Cost Allocation (16.1) (15.7) (16.6) (16.6) Net Operating Requirements $ 117.8 $ 117.5 $ 129.6 $ 138.8 Self Insurance Requirements 2.3 2.0 2.3 2.6 Total Treatment & Disposal and L Central Agency Costs * $ 120.1 $ 119.5 $ 131.9 $ 141.4 Notes: 1) Elimination of ( 17) intern positions (8.5 FTE positions) and the elimination of ( 1) Executive Assistant L position 2) Transfer (13) positions to Operations and Maintenance 3) Transfer of (13) positions to Operations and Maintenance and addition of (2) positions L 4) Transfer in of (26) positions from IT and Regional Assets and the net addition of (1) position Book Page 265 ALTERNATIVES NIA CEQA FINDINGS NIA ATTACHMENTS None. H:\deptlagenda\FAHRIFAHR2006\0406106.06-29.District Budget 06-07-08 doc Revised: 01/04/06 Book Page 266 Page 8 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 OCSD'S Benefits Program Background The benefits provided by OCSD are designed to attract, retain and encourage top level employee performance. The benefits program component is an essential part of OCSD's human resources related programs. It is intended to meet the needs of the OCSD workforce while containing associated costs. Employee benefits are governed by Board approved human resources policies and procedures established primarily by collective bargaining agreements. Individuals working in positions that are not represented by a recognized employee organization are subject to the provisions of human resources policies and procedures relating to eligibility for participation in the benefits program. Individuals working in positions that are assigned to a particular bargaining unit are subject to the terms and conditions in the applicable memorandum of understanding (MOU) that provide eligibility requirements to participate in the benefits program. Benefits involving monetary disbursements such as retirement, deferred compensation and flexible spending accounts are subject to criteria set forth by federal tax legislation. A key goal during the last contract negotiations was cost sharing on benefits. Collective bargaining agreements are structured so that all eligible employees share costs associated with premiums for medical and dental insurance. Employees also share costs associated with retirement. The current bargaining unit agreements reflect recently reapportioned costs for medical and retirement benefits. Prior to the current contract, the insurance for "employee only" coverage was completely paid by OCSD. Now employees pay 10%-20% of the premium. Also, OCSD retirement contributions (employer contributions to employee's share) were reduced from 4.50% to 3.50% of employee salaries and employees assumed the 1.00% difference. The average employee contribution rate increased by approximately 4.00%; therefore, there has been a total average contribution rate increase of 5.00% for employees. Overview The OCSD'S Benefits Program includes government mandated, voluntary and organization-provided benefits. H:\deptlagenda\FAHR\FAHR2006\0406\06.06-30.l.abor Update ARBA,doc Page2 Book Page 268 l r l L L L Government Mandated Benefits Medicare, unemployment insurance, workers' compensation, continued health insurance coverage after termination (COBRA), family medical leave and short- term disability. Voluntary Benefits Deferred compensation, flexible spending accounts, long-term disability insurance, tuition/certification reimbursement, incentives for District employee achievements (IDEA awards), health fair, rideshare program, voluntary insurance options, cellular phone plan, Microsoft home purchase program, computer loan program, credit union and local amusement park/entertainment venue discounts. Organization-Provided Benefits Medical, dental, vision care, life insurance, retirement, retiree paid medical premium program, retiree medical premium offset program -ARBA, paid time off, uniforms, and employee assistance program. Additional information about the organization-provided benefits can be found in the attached Organization-Provided Benefits Table. Additional Retiree Benefit Account (ARBA) Background In 1994, the ARBA benefit was established at OCSD through collective bargaining agreements in order to offset the cost of retiree health premiums. The ARBA program was implemented by OCSD in 1996 through an agreement with the Orange County Employees Retirement System (OCERS). ARBA provides OCSD retirees $10 per month for every year of service up to a maximum of $250 per month. The purpose of the benefit is to assist retirees with medical premium payments. For retirees hired prior to July 1988 who receive 2.5 months of OCSD-paid medical premiums for every year of service, ARBA benefits begin when that paid benefit expires. For many years, ARBA was funded through OCERS' Unallocated Fund Balance (UFB) that contained excess earnings of the system. In addition to providing post-retirement medical benefits to eligible retirees, the UFB funds are subject to and available for satisfying general retirement benefit obligations of OCERS in the event statutory reserves are not adequate. If the actual system returns are below the levels required to credit the assumed rate of interest to all statutory reserves, monies are transferred from the UFB to credit the reserves. Thus, the level of ARBA assets available for post-retirement medical benefits is subject to variation depending on investment volatility. The statutory basis for the ARBA account is found in the County Employees Retirement Law of 1937 (CERL). As OCERS' returns on investment have diminished in recent years, the UFB no longer reflects excess monies, and the large ARBA balances of prior years have been used by OCERS to make statutorily required "earnings" deposits into other OCERS funds. H:\dept\agenda\FAHRIFAHR200610406106.06-30.Labor Update ARBA.doc Page 3 Book Page 269 Due to the diminishing funds available for ARBA payments, in December 2002 the ARBA agreement was amended and a special reserve account, the Retiree Medical Benefit Reserve (RMBR), was established. OCERS set aside three (3) years worth of projected ARBA payments in this account to provide a safeguard as well as an opportunity for agencies to evaluate future funding in the event ARBA funds were depleted. The RMBR account is not part of the UFB and is not affected by statutory reserve requirements. Currently, post-retirement medical benefits are being paid through the RMBR account because all UFB funding is being used to support statutorily required obligations. Issue As of July 2003, the ARBA accounts for OCSD, the County of Orange and all other participating agencies reflected a zero balance. Since that time, the RMBR accounts have been used to pay the additional retiree benefit, which is approximately $16,000 per month for OCSD retirees. OCSD's RMBR fund has a current total balance of approximately $99,000. The RMBR fund is projected to be depleted by September 2006. Since the ARBA benefit was established through the original 1995 agreement with OCERS, as well as subsequent OCSD Memorandums of Understanding (MOUs), an obligation exists for OCSD to continue to provide this benefit for existing retirees. In addition, current MOUs also provide for the ARBA benefit to be paid to active OCSD employees upon retirement. The District is currently facing the issue of the projected depletion of the ARBA fund. Also at issue is the current contract with the OCERS pertaining to the administration of the ARBA program. Current Trends Other OCERS members such as the County of Orange, Orange County Transportation Authority (OCTA) and Orange County Fire Authority (OCFA) were facing the same issue. These organizations have amended ARBA agreements with OCERS to assure future funding for this retiree benefit. These agreements maintain the original provision allowing OCERS excess earnings to be a source of funding when investment returns are available, while ensuring future funds through employer contribution payments to OCERS when necessary. The agreements provide for a balance of three (3) years worth of projected ARBA payments to be maintained in the RMBR Accounts, and when the balance falls below the established "safety level" of two (2) years worth of projected payments, employer contributions are increased. The employer increase is the lesser of a) the amount necessary to restore the RMBR Account to the Safety Level, orb) an amount equal to 1 % of payroll. A number of recommended options for OCSD are being identified to address the issue of depleted ARBA fund benefits and will be presented in closed session to the FAHR Committee for consideration and direction at the May 2006 meeting. H:\deptlagenda\FAHR\FAHR2006\0406\06.06-30 Labor Update ARBA.doc Page4 Book Page 270 L l L L ALTERNATIVES NIA CEQA FINDINGS N/A ATTACHMENTS 1. Organization-Provided Benefits Table H:\dept\agende\FAHRIFAHR2006\0408\06.06-30.Labor Update ARBA.doc Pages Book Page 271 L L ORGANIZATION-PROVIDED BENEFITS TABLE BENEFIT DESCRIPTION Medical Insurance Medical health insurance coverage is provided through Blue Cross of California and Kaiser Permanente. Employees may elect either a Health Maintenance Organization (HMO) or an indemnity type group health plan. Depending on the employee group, OCSD contributes either 90% or 100% of employee only premiums for the HMO medical health plans and either 80% or 90% of employee only premiums for the indemnity type group health plan. Also, depending on the employee group, OCSD contributes either 80% or 75% for employee +1 dependent and full family premiums. Dental Insurance Dental health insurance coverage is provided through Delta Dental. OCSD contributes 80% of employee only and full family premiums for dental insurance. Vision Insurance Vision care health insurance coverage is provided through Vision Service Plan (VSP). OCSD contributes 100% of all vision insurance premiums for employees and eligible dependents. Life Insurance Life insurance coverage is provided through MetLife. OCSD pays the full premium for $50,000 term life insurance for each employee and an additional $50,000 for management employees. Retirement OCSD's retirement plan is administered by the Orange County Employees Retirement System (OCERS). Depending on an employee's age and date of membership, employees may be considered either Plan A, G or H members. Plan A At age 57, members receive 2.00% of compensation for each year of service. Plan G & H At age 55, members receive 2.50% of compensation for each year of service. Retiree Paid Medical Retiring employees hired prior to 7/1/88 are paid 2.5 months Premium Program premium for each year of continuous service towards the premium costs of coverage for the employee and eligible dependents under OCSD's medical plan. Once this benefit is exhausted, the retiree begins receiving ARBA benefits. Retiree Medical Retiring employees are provided with $10 per month for Premium Offset every year of service up to a maximum of 25 years or $250 Program -ARBA per month to offset the costs associated with health insurance premiums. H:\dept\agenda\FAHR\FAHR2006\0406\06.06-30.Labor Update ARBA-Att 1.doc Page 1 of 2 Book Page 272 REFERENCE(S) MOU Article 20 Policy D50.00 MOU Article 20 Policy D50.00 MOU Article 20 Policy D50.00 MOU Article 20 Policy D50.00 MOU Article 25 Policy D70.00 MOU Article 20 Policy D50.00 MOU Article 20 Policy D50.00 ORGANIZATION-PROVIDED BENEFITS TABLE BENEFIT DESCRIPTION Paid Time Off Depending on the group, employees are provided with either 1) personal leave accruals or 2) vacation and sick leave accruals. Employees are also provided with holiday benefits. Personal Leave Personal leave is accrued on a bi-weekly basis and ranges from 2.31 to 8.46 hours, depending on the employee's years of service. Vacation Leave Vacation leave is accrued on a bi-weekly basis and ranges from 3.08 to 7.69 hours, depending on the employee's years of service. Sick Leave Depending on hire date, employees accrue either 3.50 or 3.00 hours of sick leave on a bi-weekly basis. Holidays Depending on work schedule, an employee may receive paid time off, compensatory time and/or overtime pay for 12 holidays per vear. Uniforms Designated employees are provided with ten uniform pants and shirts, which may include the name of the employee and District's seal, at no cost. Designated employees are also provided with jackets. The District will provide for the cleaning of the jacket, and will determine when the jacket needs to be replaced. Employee Provides confidential professional consultation and support Assistance Program to employees and their families who are experiencing emotional or medical problems to help them solve personal problems that affect their personal lives or job performance. H:\dept\agenda\FAHR\FAHR20D6\0406\06.D6-30.Labor Update ARBA-Alt 1.doc Page 2 of 2 Book Page 273 REFERENCE(S) MOU Article 16, 27 Policy D10.00, D30.00 MOU Article 44 Policy D80.00 In addition to the District's overall service area, the Sanitation District has more specific information on suspected septic parcels within Revenue Area No. 7 because the Sanitation District is responsible for maintaining the local sewers within Revenue Area No. 7 and directly collects the capital facilities capacity charge (connection fees) for property owners who connect to the system. The Sanitation District's Engineering Department maintains maps of Revenue Area No. 7 indicating those parcels that have paid and have not paid connection fees. There are a total of 659 parcels located within Revenue Area No. 7 that we have no record of having paid connection fees. Although staff believes that we have contacted these property owners in the past to verify that their parcels are not connected to the system and should not be billed, no documentation has been maintained on the results of these prior reviews. Following are the steps recently completed by the Revenue Section on parcels within Revenue Area No. 7 where there is no record of a connection fee having been paid: • Generated a listing of the 659 parcels located within Revenue Area 7 where there is no record of a connection fee every being paid from Engineering's connection fee maps; • Determined that 571 parcels are currently being billed after reconciling these parcels against our user fee database. • For those parcels still being billed, we have sent out our standard septic tank letter and exemption form to be completed, if applicable. • Again, documentation will be maintained on all outcomes of this review. PRIOR COMMITTEE/BOARD ACTIONS None. PROJECT/CONTRACT COST SUMMARY Not applicable. BUDGET IMPACT 0 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) ATTACHMENTS 1. Map from the County of Orange on Septic Tank locations as of January 2003; 2. Septic Tank Refund Letter. H:\deptlagenda\FAHRIFAHR2006\0406\06.06-31.Septic Tanks.doc Revised: 06/04/03 Page2 Book Page 275 ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS None. H:ldept\agenda\FAHRIFAHR2006\0406\06.06-32.Approval of Audit Program.doc Revised: 06/04/03 Book Page 279 Page2 l l ORANGE COUNTY SANITATION DISTRICT PAYROLL AUDIT PROGRAM 2005-2006 B. TIME KEEPING ----1. From sample selected in procedure A.4, obtain applicable timecards. ----a. Verify timesheet turned into accounting in the appropriate timeframe and the employee and supervisor signatures are present. ----b. Timesheet columns down and rows across are totaled and properly checked to assure correct reporting. ----c. All hours are recorded including leave used or compensatory time earned for the work week. ----d. Timesheet reviewed and appropriate sub ledger, project, and phase coding used. ----e. Timesheet hours properly recorded in payroll register. C. VACATION, SICK LEAVE, PERSONAL LEAVE ----1. From the sample selected in procedure A.4, obtain leave accrual reports. ----a. Current accrual agrees with applicable Memoranda of Understanding. ----b. Agree leave accrual report with hours used or compensatory time earned in the timesheet. ----2. Obtain a listing of leave payoffs for the period under review and select a sample. ----a. Agree to supporting documentation. i.e. employee request for payoff. ----b. Recalculate. Verify proper hourly wage rate used. ----c. For mandatory payoffs, verify payoff was in accordance with applicable District policies and procedures. ORANGE COUNTY SANITATION DISTRICT TRAVEL AND BUSINESS EXPENSES AUDIT PROGRAM 2005-2006 A. TRAVEL AND BUSINESS EXPENSES ----1 . Obtain and review travel and business expenses policies. ----2. Obtain and review the District's travel and business expense forms. ____ 3. Complete an internal control questionnaire 4. Select a sample of items to test. ---- ---- ---- ---- ---- ---- ---- ---- ---- a. Determine that a Travel Expense Reimbursement Form and a detailed Daily Expense Breakdown Form is completed and submitted for all eligible business and travel expenses. b. Verify that all related documentation and original receipts are submitted to substantiate eligible expenses. c. Verify that the designated department/division travel coordinator has audited, signed, and forwarded the Travel Expense Reimbursement Form to the appropriate division. (Note: An employee cannot approve their own expense reimbursement.) d. Recalculate all amounts on the Travel Expense Reimbursement Form and verify expenses are in accordance with District policy. i.e. mileage rates, per diem, etc. e. Verify all exceptions are approved and documented through the "Exceptions-Unauthorized Expenditures Memo" f. Verify timeliness of submission of the Travel and Expense Reimbursement Form by the employee (Note: to be submitted no later than two weeks after the completion of travel). g. Test timeliness of payment to employees. h. Review a sample of cash advances and verify they are in accordance with policy guidelines. ORANGE COUNTY SANITATION DISTRICT CONTRACTS/PURCHASING AUDIT PROGRAM 2005-2006 A. PROCUREMENTPROCEDURES ---- ---- ---- ---- 1. Obtain and review policies and procedures for the Contracts / Purchasing procurement process. 2. Obtain and review the District's forms related to the Contracts / Purchasing procurement process. 3. Complete an internal control questionnaire 4. Select a sample of transactions to test from check registers for the period under review. (i.e. professional design service consultants, public works projects, materials, equipment, professional services, capital equipment, and other). a. Requisitions ---1. Verify requisition requests are properly completed and authorized in accordance with District's policies. ---2. Agree approval signatures to the authorized signature listing maintained by the Accounting Division. b. Purchase order/blanket purchase orders/contract agreement 1. Verify approval and proper completion of forms. --- ---2. Verify the existence of a list of bidders and prices bid for the materials or equipment purchased or if no bids or quotes taken a full statement as to the reason. ---3. Verify documented records and written statements exist which detail the necessary considerations given to the factors pertinent to good buying. ---4. Verify that an approved close-out agreement is executed, when applicable. ORANGE COUNTY SANITATION DISTRICT CONTRACTS/PURCHASING AUDIT PROGRAM 2005-2006 c. Informal/formal bidding process ----1. Verify informal bid process followed for purchases within the appropriate dollar limits. ____ 2. For informal quotes, review support for quotes obtained. ----3. Verify formal bid process followed for purchases exceeding appropriate dollar threshold. ----4. For formal quotes, review bid package including published notice inviting bids and all vendor bids. ----5. Verify that the basis for selection for the final award is clearly documented. e.g. lowest responsive and responsible bidder ____ 6. Exemptions from the bidding process are properly approved. d. Change orders ----1. Verify change orders are properly documented in accordance with District policy. ____ 2. Verify that a request for change order is properly submitted and approved prior to additional work. e. Sole source purchases ----1. Verify sole source purchases are in accordance with District policies and procedures. ____ 2. Determine that sole source justification exists and that a Sole Source Form is completed when applicable. f. Emergency purchases ----1. Verify that emergency purchases were made in accordance with District policy and guidelines. ORANGE COUNTY SANITATION DISTRICT CONTRACTS/PURCHASING AUDIT PROGRAM 2005-2006 g. Long-term contracts ----1. Verify that long term contracts are established in accordance with District policy and guidelines. ----2. Verify that pre approval by the Board of Directors if obtained, when applicable. h. Capital equipment purchases ----1. Verify that capital equipment procurement is in accordance with District policy and guidelines. ----2. Verify property control numbers are assigned. i. Records Retention ----1. Verify purchasing documentation is being retained in accordance with the District's Record Retention Policy. B. PROCUREMENTCARD(PROCARD)PROGRAM 1. Obtain and review policies and procedures for Procard Program. ---- ----2. Select a sample of procurement card monthly statements. ----a. Verify Procard user is properly authorized and has completed a fully executed Employee Procard Agreement. ----b. Verify employees authorized for a Procard have attended a Procard training session prior to activation of card. ----c. Verify reconciliation completed timely. Procard Transaction Log appropriately completed and all necessary documentation attached with monthly statement. ----d. All purchases are made in accordance with District policies including limits. Any exceptions appropriately approved in writing. ----e. Properly paid through accounts payable and recorded properly in general ledger. OCSD -PERSONNEL REQUISITION .z POSITION TITLE: DIVISION: 0 D Full-time D Part-time REASON FOR VACANCY: 0 Transfer O New O LOA ~ Promotion .= en NO. OF OPENINGS: •Separation (Name): 0 I IMMEDIATE SUPERVISOR: 0.. WORK SCHEDULE (DAYS & HOURS): NOTE: Information provided by the department in the following two sections is important to ensure an effective recruitment process. This will assist the Human Resources Recruiter in developing an appropriate job posting. Please add specific information separate from the position description. -LIST MAJOR JOB DUTIES (Indicate areas,of major respaflsiollities, supervis0ry·G1Utles, etc.) L- u, ·buted at . g w ~p.\-lR Meetin > i= 0 w ., m 0 oa KEY PERFORMANCE OBJECTIVES FOR POSITION u, (Thi.s will assist HR in establ1shiril9 pre-soreenirig questions fer potential candidates, w i= (Note: Minimum qualifications from 1Me positi0n descr[ptio_n will automalicallv be lhcluded in the postinal· ::::> C ' APPLICATIONS SHOULD BE SOLICITED FROM: SUGGESTED INTERVIEW PANEL MEMBERS: ~ • w • > D Comparison Agencies a:: • w f-D Internet: list website(s) below • z • --(Final panel selection subject to HR approval) Submitted By Date General Manager Date I Department Head Date u, Business Need (To be completed by Dept. Head): __ ...I ~ 1. Critical: Compliance, legislative, or permit related; planned recruitments; staffing imperative in meeting organizational 0 project deadlines. a:: 0.. 2. Important: Replacement of high level or professional positions that could impact proj ect or divisional success; staffing 0.. required to meet project deadlines. <( 3. Regular: Promotional opportunities; Interns; all other positions. Date Received in HR: Human Resources Approval Signature Date Recruitment Assigned To: JUSTIFICATION: Ple~se pr0vide specifics as to why ~his positj0ri1 is ~eing requested. Use w0*load data and' staffing, r,!:lquirement~ t0 sui;,port the re€Juest. DLscuss alternatives, if any, and the potential impact of n0t filling the position at this tirne. Revised: 08/13/04 GUIDELINES Purpose of Position • Explain purpose of position within the current operational requirements • List critical factors Changes to Purpose of Position • Describe changes that have occurred • Describe conditions and circumstances that have brought about the changes • If purpose of position no longer exists -describe circumstances that brought this about or how the work has been redistributed Job Duties -No Longer Applicable • List any job duties that no longer apply -responsibilities that previously applied to this position • If job duties no longer apply -what position has assumed those duties or are the duties no longer necessary due to operational requirements -Please describe and list circumstances • Position can be filled at a lower classification level -explain changes in operational requirements Job Duties -Additional • List those duties that have not previously been the responsibility of this position -what circumstances in the current operational requirements brought this about • List new or significantly revised responsibilities that have been added to job content Other Factors Impacting Job Purpose and Duties • Provide additional information not covered in any of the other sections Highlights of the proposed budget include: • Limited Growth -$3 million (Fvos-os = $455M Fvos-01 = $458M) • Flat Staffing Levels -644 Positions • Revised Capital Improvement Program (CIP) • $500 million reduction • 29% reduction in the projected rate increase • Strong Financial Positioning -Maintains AA Bond Rating • Two-Year Budget -Annual updates 1 Most OCSD revenue is related to User Fees. FY 06-07 FY 07-08 General User Fees $153 M $175 M Permit User Fees $ 14 M $ 17 M Capital Facilities Capacity $ 12 M $ 13 M Charge Total Fees & Charges $179 M $205 M 4 Non-fee related General Income represents more than one fourth of total revenue, exceeding $100 million. Property Tax Interest Other FY 06-07 FY 07-08 $ 56 M $ 58 M $ 19 M $ 17 M $ 36 M $ 36 M Total General Income $ 102 M $ 111 M 5 Expenditures will increase > $100 million in FY 07-08, primarily as a result of the CIP. FY 06-07 FY 07-08 CI P (including Debt Service) $ 326 M (71%) $ 424 M (75%) Treatment and Disposal $ 71 M (16%) $ 76 M (13%) Central Agency Costs± $ 61 M (13%) $ 66 M (12%) Total Expenditures $458 M $566 M + Includes self insurance requirements. 7 The Capital Improvement Program can be divided into five distinct areas. 1 . Secondary Treatment Facilities 2. Groundwater Replenishment System 3. Treatment Plant Rehab / Upgrades 4. Collections 5. Debt Service FY 06-07 FY 07-08 $ 22 M $ 49 M $134 M $ 63 M $ 58 M $112 M $ 23 M $172 M $ 46 M $ 71 M Total Capital Improvement Program $ 326 M $ 424 M 8 More than $130 million c2s% -30%) is allocated to OCSD's other operating requirements. FY 06-07 FY 07-08 CIP (including Debt Service) $ 326 M (71%) $ 424 M (75%) Treatment and Disposal $ 71 M (16%) $ 76 M (13°1o) Central Agency Costs± $ 61 M (13%) $ 66 M (12%) Total Expenditures $458 M $566 M 9 The majority of the expenditure increase will occur in five categories: Category 1 . Salaries and Benefits 2. Contractual Services 3. Utilities 4. Operating Expenses s. Repairs & Maintenance Millions $ 2.9 $ 2.8 $ 2.7 $ 2.5 $ 2.2 12 . Biosolids hauling costs continue to rise, increasing the contractual services budget. Solids Removal Budget FY 05-06 Total Contractual $ 14.4 M Services Proposed FY 06-07 + 2.8 M $ 17.2 M 14 Utilities costs represent 20% of the operating increase, as electricity costs continue to rise. Budget Proposed FY 05-06 FY 06-07 Natural Gas -1.5 M Electricity + 3.8 M Other + 0.4 M Total Utilities $ 6.1 M $ 8.8 M 15 Various repairs at the OCSD operation plants will increases the repairs and maintenance budget. Increase Diffuser Replacement CenGen Engine Overhauls Digester Cleaning Total Repairs & Maintenance Budget FY 05-06 $ 8.3 M Proposed FY 06-07 + 2.2 M $ 10.5 M 17 Next Steps • Additional FAHR Committee meetings • Budget presentations for each Committee • Presentation and adoption at the June Board meeting 18 ORANGE COUNTY SANITATION DISTRICT PAYROLL AUDIT PROGRAM 2005-2006 A. PAYROLL POLICIES AND PROCEDURES Distributed at .Y(, ~(av FAHR Meeting ----1. Obtain and review the policies and procedures established for payroll and the various Memoranda of Understanding. ----2. Obtain and review the District's payroll related forms. ____ 3. Complete an internal control questionnaire ___ 4. Select a sample of payroll items to test. ____ a. Verify that appropriate documentation and approval exists for various payroll maintenance items. i.e., new hires, terminations, retirements, promotions, demotions, reclassifications, merit increases, additional pays, w-4, wage garnishments, deferred compensation, and direct deposit. ----b. Verify that the most recently dated Employee Withholding Certificate (W-4) is being applied. Recalculate withholding for the selected pay period. ----c. Verify salaries and benefits conform with the applicable memoranda of understanding and employee personnel file. ----d. Verify gross pay is properly allocated and expenditure coding agrees with supporting documentation. ----e. Agree cancelled check date, amount, and payee information to the payroll register. ____ 5. Select one payroll register for the period under review. a. Foot the payroll register. ---- ----b. Trace payroll register through labor distribution report to general ledger expenditure detail and cash. ____ c. If applicable, verify board approval. ORANGE COUNTY SANITATION DISTRICT PAYROLL AUDIT PROGRAM 2005-2006 B. TIME KEEPING 1. From sample selected in procedure A.4, obtain applicable timecards. ---- ----a. Verify timesheet turned into accounting in the appropriate timeframe and the employee and supervisor signatures are present. b. Timesheet columns down and rows across are totaled and properly ----checked to assure correct reporting. ____ c. All hours are recorded including leave used or compensatory time earned for the work week. ----d. Timesheet reviewed and appropriate sub ledger, project, and phase coding used. ----e. Timesheet hours properly recorded in payroll register. C. VACATION, SICK LEAVE, PERSONAL LEAVE ___ 1. From the sample selected in procedure A.4, obtain leave accrual reports. a. Current accrual agrees with applicable Memoranda of ----Understanding. ----b. Agree leave accrual report with hours used or compensatory time earned in the timesheet. ____ 2. Obtain a listing of leave payoffs for the period under review and select a sample. ----a. Agree to supporting documentation. i.e. employee request for payoff. ____ b. Recalculate. Verify proper hourly wage rate used. ____ c. For mandatory payoffs, verify payoff was in accordance with applicable District policies and procedures. ORANGE COUNTY SANITATION DISTRICT TRAVEL AND BUSINESS EXPENSES AUDIT PROGRAM 2005-2006 A. TRAVEL AND BUSINESS EXPENSES 1. Obtain and review travel and business expenses policies. ---- 2. Obtain and review the District's travel and business expense forms. ---- ----3. Complete an internal control questionnaire ----4. Select a sample of items to test. ---- ---- ---- ---- ---- ---- ---- ---- a. Determine that a Travel Expense Reimbursement Form and a detailed Daily Expense Breakdown Form is completed and submitted for all eligible business and travel expenses. b. Verify that all related documentation and original receipts are submitted to substantiate eligible expenses. c. Verify that the designated department/division travel coordinator has audited, signed, and forwarded the Travel Expense Reimbursement Form to the appropriate division. (Note: An employee cannot approve their own expense reimbursement.) d. Recalculate all amounts on the Travel Expense Reimbursement Form and verify expenses are in accordance with District policy. i.e. mileage rates, per diem, etc. e. Verify all exceptions are approved and documented through the "Exceptions-Unauthorized Expenditures Memo" f. Verify timeliness of submission of the Travel and Expense Reimbursement Form by the employee (Note: to be submitted no later than two weeks after the completion of travel). g. Test timeliness of payment to employees. h. Review a sample of cash advances and verify they are in accordance with policy guidelines. ORANGE COUNTY SANITATION DISTRICT CONTRACTS/PURCHASING AUDIT PROGRAM 2005-2006 A. PROCUREMENTPROCEDURES ---- ---- ---- ---- 1. Obtain and review policies and procedures for the Contracts / Purchasing procurement process. 2. Obtain and review the District's forms related to the Contracts / Purchasing procurement process. 3. Complete an internal control questionnaire 4. Select a sample of transactions to test from check registers for the period under review. (i.e. professional design service consultants, public works projects, materials, equipment, professional services, capital equipment, and other). a. Requisitions ----1. Verify requisition requests are properly completed and authorized in accordance with District's policies. ----2. Agree approval signatures to the authorized signature listing maintained by the Accounting Division. b. Purchase order/blanket purchase orders/contract agreement 1. Verify approval and proper completion of forms. ---- ----2. Verify the existence of a list of bidders and prices bid for the materials or equipment purchased or if no bids or quotes taken a full statement as to the reason. ---3. Verify documented records and written statements exist which detail the necessary considerations given to the factors pertinent to good buying. ----4. Verify that an approved close-out agreement is executed, when applicable. ORANGE COUNTY SANITATION DISTRICT CONTRACTS/PURCHASING AUDIT PROGRAM 2005-2006 c. Informal/formal bidding process ----1. Verify informal bid process followed for purchases within the appropriate dollar limits. ----2. For informal quotes, review support for quotes obtained. ----3. Verify formal bid process followed for purchases exceeding appropriate dollar threshold. ----4. For formal quotes, review bid package including published notice inviting bids and all vendor bids. ----5. Verify that the basis for selection for the final award is clearly documented. e.g. lowest responsive and responsible bidder ----6. Exemptions from the bidding process are properly approved. d. Change orders ---1. Verify change orders are properly documented in accordance with District policy. ---2. Verify that a request for change order is properly submitted and approved prior to additional work. e. Sole source purchases ----1. Verify sole source purchases are in accordance with District policies and procedures. ----2. Determine that sole source justification exists and that a Sole Source Form is completed when applicable. f. Emergency purchases ---1. Verify that emergency purchases were made in accordance with District policy and guidelines. ORANGE COUNTY SANITATION DISTRICT CONTRACTS/PURCHASING AUDIT PROGRAM 2005-2006 g. Long-term contracts ----1. Verify that long term contracts are established in accordance with District policy and guidelines. ----2. Verify that pre approval by the Board of Directors if obtained, when applicable. h. Capital equipment purchases ____ 1. Verify that capital equipment procurement is in accordance with District policy and guidelines. ----2. Verify property control numbers are assigned. i. Records Retention ----1. Verify purchasing documentation is being retained in accordance with the District's Record Retention Policy. B. PROCUREMENT CARD CPROCARD) PROGRAM 1. Obtain and review policies and procedures for Procard Program. ---- ----2. Select a sample of procurement card monthly statements. ----a. Verify Procard user is properly authorized and has completed a fully executed Employee Procard Agreement. ---b. Verify employees authorized for a Procard have attended a Procard training session prior to activation of card. ----c. Verify reconciliation completed timely. Procard Transaction Log appropriately completed and all necessary documentation attached with monthly statement. ----d. All purchases are made in accordance with District policies including limits. Any exceptions appropriately approved in writing. ----e. Properly paid through accounts payable and recorded properly in general ledger.