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
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(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.
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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
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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
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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
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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.
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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.
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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
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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.
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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
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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.
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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.
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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~
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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.
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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.
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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
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~ 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.
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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
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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
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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
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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
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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
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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
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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)
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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
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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
-
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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
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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
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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
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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
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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. ---
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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.
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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. ---------------
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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.
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Record Series with Definitions
r r
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i
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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
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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
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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
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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
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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
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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
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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~
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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-
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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
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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:
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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
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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.
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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.
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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.
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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
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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
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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
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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.
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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
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As used in this Section, the following terms and words shall have the
following meanings:
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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.
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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
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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.
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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
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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
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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?
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Orange County Sanitation District
Revenue Program and Rate Update
FINAL
April 2006
Book Page 175
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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
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Project Calculations
User Categories
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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
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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.
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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 .
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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.
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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
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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
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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.
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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.
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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.
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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
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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
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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.
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• 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.
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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.
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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.
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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.
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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
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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:
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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
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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.
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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
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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.
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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
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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.
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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..
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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
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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
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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
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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
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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
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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.
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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,
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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
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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.
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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.
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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%
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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%
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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.
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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
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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.
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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.
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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.
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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
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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
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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.
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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.
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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.
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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
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Charge
$225. 00/event
$500. 00/event
Charge
$35.00/each
$78.00
$152.00
$223.00
$254.00
$523.00
$73.00
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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
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$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.
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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.
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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.
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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
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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.
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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.
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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
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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).
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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
($15M).
Most central costs are for non-labor expenditures, such as property and general
liability insurance, training, materials and supplies, and service agreements.
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Expenses by Department Budget($ 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.
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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.
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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.
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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.
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ALTERNATIVES
NIA
CEQA FINDINGS
N/A
ATTACHMENTS
1. Organization-Provided Benefits Table
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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.
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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.
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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.
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ALTERNATIVES
N/A
CEQA FINDINGS
N/A
ATTACHMENTS
None.
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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.