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06-11-2025 Administration Committee Meeting Complete Agenda Packet
OC6SAN ORANGE COUNTY SANITATION DISTRICT SPECIAL NOTICE PUBLIC ATTENDANCE & PARTICIPATION AT PUBLIC MEETINGS Administration Committee Meeting Wednesday, June 11, 2025 5: 00 p.m. Your participation is always welcome. OC San offers several ways in which to interact during meetings. You will find information as to these opportunities below. IN -PERSON MEETING ATTENDANCE You may attend the meeting in -person at the following location: Orange County Sanitation District Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 ONLINE MEETING PARTICIPATION You may join the meeting live via Teams on your computer or similar device or web browser by using the link below: Click here to join the meeting We suggest testing joining a Teams meeting on your device prior to the commencement of the meeting. For recommendations, general guidance on using Teams, and instructions on joining a Teams meeting, please click here. Please mute yourself upon entry to the meeting. Please raise your hand if you wish to speak during the public comment section of the meeting. The Clerk of the Board will call upon you by using the name you joined with. Meeting attendees are not provided the ability to make a presentation during the meeting. Please contact the Clerk of the Board at least 48 hours prior to the meeting if you wish to present any items. Additionally, camera feeds may be controlled by the meeting moderator to avoid inappropriate content. HOW TO PARTICIPATE IN THE MEETING BY TELEPHONE To join the meeting from your phone: Dial (213) 279-1455 When prompted, enter the Phone Conference ID: 286 995 134# All meeting participants may be muted during the meeting to alleviate background noise. If you are muted, please use *6 to unmute. You may also mute yourself on your device. Please raise your hand to speak by use *5, during the public comment section of the meeting. The Clerk of the Board will call upon you by using the last 4 digits of your phone number as identification. NOTE: All attendees will be disconnected from the meeting at the beginning of Closed Session. If you would like to return to the Open Session portion of the meeting, please login or dial -in to the Teams meeting again and wait in the Lobby for admittance. WATCH THE MEETING ONLINE The meeting will be available for online viewing at: https://ocsd.leaistar.com/Calendar.as SUBMIT A COMMENT You may submit your comments and questions in writing for consideration in advance of the meeting by using the eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx or sending them to OCSanClerk(a)ocsan.gov with the subject line "PUBLIC COMMENT ITEM # (insert the item number relevant to your comment)" or "PUBLIC COMMENT NON -AGENDA ITEM". You may also submit comments and questions for consideration during the meeting by using the eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx. The eComment feature will be available for the duration of the meeting. All written public comments will be provided to the legislative body and may be read into the record or compiled as part of the record. For any questions and/or concerns, please contact the Clerk of the Board's office at 714-593-7433. Thank you for your interest in OC San! Or6SAN Fountain'Ualley, CA 92708 714.9-62.2411 ORANGE COUNTY SANITATION DISTRICT www-ocsan.gaw June 4, 2025 NOTICE OF REGULAR MEETING ADMINISTRATION COMMITTEE ORANGE COUNTY SANITATION DISTRICT Wednesday, June 11, 2025 — 5:00 P.M. Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 ACCESSIBILITY FOR THE GENERAL PUBLIC Your participation is always welcome. Specific information as to how to participate in this meeting is detailed on the Special Notice attached to this agenda. In general, OC San offers several ways in which to interact during this meeting: you may participate in person, join the meeting live via Teams on your computer or similar device or web browser, join the meeting live via telephone, view the meeting online, and/or submit comments for consideration before or during the meeting. The Regular Meeting of the Administration Committee of the Orange County Sanitation District will be held at the above location and in the manner indicated on Wednesday, June 11, 2025 at 5:00 p.m. Serving Anaheim Brea Buena Park GYPS Fountain Valley Fullerton Garden Grove Hun#ingon Beach I rvine La Habra La Palma Los Alamitos Newport Beach Orange Placentia Santa Ana Seal Beacr Stanton Tustin Villa Park County of orange Costa Mesa Sanitary district Midway City Sanitary district Irvine Ranch Water District Yorba Linda Water District Our Mission. To protect public health and the environment by providing effective wastewater collectionr &eatmenta and recycling- ADMINISTRATION COMMITTEE MEETING DATE BOARD MEETING DATE 06/11 /25 06/25/25 07/09/25 07/23/25 AUGUST DARK 08/27/25 09/10/25 09/24/25 10/08/25 10/22/25 11 /12/25 11 /19/25 * 12/10/25 12/17/25 * JANUARY DARK 01/28/26 02/11 /26 02/25/26 03/11 /26 03/25/26 04/08/26 04/22/26 05/13/26 05/27/26 * Meeting will be held on the third Wednesday of the month ROLL CALL ADMINISTRATION COMMITTEE Finance, Information Technology, Environmental Services and Human Resources Meeting Date: June 11, 2025 Time: 5:00 p.m. COMMITTEE MEMBERS (13) Christine Marick, Chair Glenn Grandis, Vice -Chair Melinda Liu Jose Medrano Jordan Nefulda Andrew Nguyen David Shawver Chad Wanke Erik Weigand John Withers Jordan Wu Gallagher Board Chair -Ryan Jon Dumitru (Board Vice -Chair) OTHERS Scott Smith, General Counsel STAFF Rob Thompson, General Manager Lorenzo Tyner, Assistant General Manager Jennifer Cabral, Director of Communications Mike Dorman, Director of Engineering Laura Maravilla, Director of Human Resources Riaz Moinuddin, Director of Operations & Maintenance Wally Ritchie, Director of Finance Lan Wibor , Director of Environmental Services Kelly Lore, Clerk of the Board AGENCY/CITIES Anaheim Brea Buena Park Cypress Fountain Valley Fullerton Garden Grove Huntington Beach Irvine La Habra La Palma Los Alamitos Newport Beach Orange Placentia Santa Ana Seal Beach Stanton Tustin Villa Park Sanitary/Water Districts Costa Mesa Sanitary District Midway City Sanitary District Irvine Ranch Water District Yorba Linda Water District County Areas Board of Supervisors ORANGE COUNTY SANITATION DISTRICT BOARD OF DIRECTORS Complete Roster ACTIVE DIRECTOR Carlos A. Leon Christine Marick Joyce Ahn Scott Minikus Glenn Grandis Jamie Valencia Stephanie Klopfenstein Pat Burns Melinda Liu Jose Medrano Debbie Baker Jordan Nefulda Erik Weigand Jon Dumitru Chad Wanke Johnathan Ryan Hernandez Lisa Landau David Shawver Ryan Gallagher Jordan Wu Bob Ooten Andrew Nguyen John Withers Tom Lindsey Doug Chaffee Effective 2/11/2025 ALTERNATE DIRECTOR Ryan Balius Cecilia Hupp Lamiya Hoque Bonnie Peat Ted Bui Shana Charles Cindy Ngoc Tran Gracey Van Der Mark Kathleen Treseder Rose Espinoza Vikesh Patel Tanya Doby Michelle Barto John Gyllenhammer Ward Smith Jessie Lopez Ben Wong John D. Warren Austin Lumbard Kelly McBride Art Perry Tyler Diep Dan Ferons Gene Hernandez Janet Nguyen 2 SAN ORANGE COUNTY SANITATION DISTRICT ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, June 11, 2025 - 5:00 PM Board Room Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 ACCOMMODATIONS FOR THE DISABLED: If you require any special disability related accommodations, please contact the Orange County Sanitation District (OC San) Clerk of the Board's office at (714) 593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. AGENDA POSTING: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted outside OC San's Headquarters located at 18480 Bandilier Circle, Fountain Valley, California, and on the OC San's website at www.ocsan.gov not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including those distributed less than 72 hours prior to the meeting to a majority of the Board of Directors, are available for public inspection with the Clerk of the Board. AGENDA DESCRIPTION: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. MEETING RECORDING: A recording of this meeting is available within 24 hours after adjournment of the meeting at https://ocsd.legistar.com/Calendar.aspx or by contacting the Clerk of the Board. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, the item must be submitted to the Clerk of the Board: Kelly A. Lore, MMC, (714) 593-7433 / klore@ocsan.gov at least 14 days before the meeting. For any questions on the agenda, Board members may contact staff at: General Manager: Rob Thompson, rhompson@ocsan.gov / (714) 593-7110 Asst. General Manager: Lorenzo Tyner, Ityner@ocsan.gov / (714) 593-7550 Director of Communications: Jennifer Cabral, jcabral@ocsan.gov / (714) 593-7581 Director of Engineering: Mike Dorman, mdorman@ocsan.gov / (714) 593-7014 Director of Environmental Services: Lan Wiborg, Iwiborg@ocsan.gov / (714) 593-7450 Director of Finance: Wally Ritchie, writchie@ocsan.gov / (714) 593-7570 Director of Human Resources: Laura Maravilla, Imaravilla@ocsan.gov / (714) 593-7007 Director of Operations & Maintenance: Riaz Moinuddin, rmoinuddin@ocsan.gov / (714) 593-7269 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, June 11, 2025 CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL AND DECLARATION OF QUORUM: Clerk of the Board PUBLIC COMMENTS: Your participation is always welcome. Specific information as to how to participate in a meeting is detailed in the Special Notice attached to this agenda. In general, OC San offers several ways in which to interact during meetings: you may participate in person, join the meeting live via Teams on your computer or similar device or web browser, join the meeting live via telephone, view the meeting online, and/or submit comments for consideration before or during the meeting. :7=1:101NA "I The Committee Chairperson and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. CONSENT CALENDAR: Consent Calendar Items are considered to be routine and will be enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1. APPROVAL OF MINUTES 2025-4321 RECOMMENDATION: Approve minutes of the Regular meeting of the Administration Committee held May 14, 2025. Originator: Kelly Lore Attachments: Agenda Report 05-07-2025 Operations Committee Meeting Minutes 2. GANN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2025-26 2024-3836 RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OC SAN 25-XX, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District Establishing the Annual Appropriations Limit for Fiscal Year 2025-26 for the Orange County Sanitation District in Accordance with the Provisions of Division 9 of Title 1 of the California Government Code". Originator: Wally Ritchie Page 1 of 5 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, June 11, 2025 Attachments: Agenda Report Draft Resolution No. OC SAN 25-XX - Gann 3. FY 2025-26 USE CHARGES FOR SANTA ANA WATERSHED 2025-4274 PROJECT AUTHORITY RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OC SAN 25-XX, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District Establishing Use Charges for the 2025-26 Fiscal Year Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority ("SAWPA")". Originator: Wally Ritchie Attachments: Agenda Report 2025-26 SAWPA Resolution 4. ORANGE COUNTY WASTE AND RECYCLING WASTE DISPOSAL 2025-4316 AGREEMENT, AMENDMENT NO. 2 RECOMMENDATION: Recommend to the Board of Directors to: Approve Amendment No. 2 of the OC Waste and Recycling Waste Disposal Agreement, extending the initial term of the Agreement from June 30, 2025 to June 30, 2026, for a total amount not to exceed $748,000 which includes the unit price per ton for solid waste disposal and the associated escalation costs. Originator: Lan Wiborg Attachments: Agenda Report Amendment No. 2 5. PUBLIC AFFAIRS UPDATE FOR THE MONTH OF MAY 2025 RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Public Affairs Update for the month of May 2025. Originator: Attachments NON -CONSENT: Jennifer Cabral Agenda Report Outreach Report for May 2025 6. LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF MAY 2025 RECOMMENDATION: Recommend to the Board of Directors to: 2025-4226 2025-4140 Page 2 of 5 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, June 11, 2025 7. Receive and file the Legislative Affairs Update for the month of May 2025. Originator: Jennifer Cabral Attachments: Agenda Report Federal Legislative Update Federal Matrix State Legislative Update State Matrix Local Legislative Update H.R. 2269, WIPPES Act - Letter of Support SB 496 (Hurtado) - Letter of Support Cap -and -Trade Funding Request PrPCPntafinn FY 2025-26 PROPERTY - LIABILITY INSURANCE RENEWALS RECOMMENDATION: Recommend to the Board of Directors to: 9n9A-3R37 Approve the Orange County Sanitation District FY 2025-26 Property -Liability Insurance Renewals included in the FY 2025-26 Budget for the not -to -exceed amounts specified below: Property and Boiler & Machinery - Not to Exceed $3,118,944 Excess General Liability Insurance - Not to Exceed $1,429,942 Excess Workers' Compensation Insurance - Not to Exceed $ 476,000 Earthquake Insurance - Not to Exceed $ 206,744 Cyber Liability $ 143,935 TOTAL $5,375,565 Originator: Attachments Wally Ritchie Agenda Report a:;[Q 00.4 411 a I:Y9T_1 d :F_1111110 :1111 III111J U 17_1114 RECOMMENDATION: Recommend to the Board of Directors to: pilyZ 51;:K.] Approve the proposed Operating, Capital, Debt Service, and Self -Insurance Budgets for FY 2025-26 as follows: FY 2025-26 Net Operating $ 246,365,399 Self -Insurance $ 6,745,565 Net Capital Improvement Program $ 254,276,633 Debt/COP Service $ 60,431,104 Intra-District Joint Equity Purchase/Sale (1) $ 3,500,000 Other Requirements $ 10,000,000 TOTAL $ 581,318,701 Page 3 of 5 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, June 11, 2025 (1) Cash to/from Revenue Area 14 (RA14) in exchange for capital assets to/from Consolidated Revenue Area 15 (RA15) Originator: Wally Ritchie Attachments: Agenda Report Budget Update Presentation Proposed FY 2025-2026 Budget Update INFORMATION ITEMS: 9. OC SAN - OPERATIONS & MAINTENANCE WASTEWATER 101 PART 2025-4322 2: COLLECTIONS RECOMMENDATION: Information Item. Originator: Riaz Moinuddin Attachments: Agenda Report Presentation - WW101 Collections 10. STRATEGIC PLAN: LEVELS OF SERVICE 2025-4323 RECOMMENDATION: Information Item. Originator: Rob Thompson Attachments: Agenda Report OC San Strategic Plan 2023 GM's FY 2024-25 Work Plan Presentation - Levels of Service DEPARTMENT HEAD REPORTS: CLOSED SESSION: 10. rem OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Page 4 of 5 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, June 11, 2025 BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: At this time Directors may request staff to place an item on a future agenda. ADJOURNMENT: Adjourn the meeting until the Regular Meeting of the Administration Committee on July 9, 2025 at 5:00 p.m. Page 5 of 5 Headquarters ADMINISTRATION COMMITTEE 18480 Bandilier Circle �SAN Fountain Valley, CA 92708 714 593-7433 Agenda Report File #: 2025-4321 Agenda Date: 6/11/2025 Agenda Item No: 1. FROM: Robert Thompson, General Manager Originator: Kelly A. Lore, Clerk of the Board SUBJECT: APPROVAL OF MINUTES GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve minutes of the Regular meeting of the Administration Committee held May 14, 2025. BACKGROUND In accordance with the Board of Directors Rules of Procedure, an accurate record of each meeting will be provided to the Directors for subsequent approval at the following meeting. 1:74AA%1'11&3IF_1z117_1:711� :Z .7M7MR.1<iZOy_1,0i8z"Ki0'7 ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • May 14, 2025 Administration Committee meeting minutes Orange County Sanitation District Page 1 of 1 Printed on 6/1/2025 powered by LegistarT" Orange County Sanitation District Minutes for the OPERATIONS COMMITTEE SAN ORANGE COUNTY SANITATIO14 DISTRICT CALL TO ORDER Wednesday, May 7, 2025 5:00 PM Board Room Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714) 593-7433 A regular meeting of the Operations Committee of the Orange County Sanitation District was called to order by Committee Chairman Pat Burns on Wednesday, May 7, 2025 at 5:00 p.m. in the Orange County Sanitation District Headquarters. General Manager Rob Thompson led the Pledge of Allegiance. ROLL CALL AND DECLARATION OF QUORUM: Clerk of the Board Kelly Lore declared a quorum present as follows: PRESENT: Joyce Ahn, Debbie Baker, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Johnathan Ryan Hernandez, Lisa Landau, Carlos Leon, Tom Lindsey, Scott Minikus, Robert Ooten, Jaime Valencia and Cindy Tran (Alternate) ABSENT: None STAFF PRESENT: Rob Thompson, General Manager; Lorenzo Tyner, Assistant General Manager; Jennifer Cabral, Director of Communications; Mike Dorman, Director of Engineering; Laura Maravilla, Director of Human Resources; Riaz Moinuddin, Director of Operations and Maintenance; Wally Ritchie, Director of Finance; Lan Wiborg, Director of Environmental Services; Kelly Lore, Clerk of the Board; Mo Abiodun; Jon Bradley; Cheri Calisang; Morty Caparas; Jackie Castro; Sam Choi; Raul Cuellar; Don Cutler; Thys DeVries; Martin Dix; Justin Fenton; David Haug; Mark Kawamoto; Tom Meregillano; Nick Oswald; Jonathon Powell; Olga Prado; Valerie Ratto; Sammady Yi; and Ruth Zintzun were present in the Board Room. OTHERS PRESENT: Mal Richardson, General Counsel; and Gus Garcia, Center for Contract Compliance were present in the Board Room. PUBLIC COMMENTS: Gus Garcia, Center for Contract Compliance commented in opposition of Item No. 3 and provided a letter for distribution to the Directors. REPORTS: Chair Burns announced that the OC San Honor Wall Ceremony would be held on June 23, 2025, at 3.30 p.m. and that OC San's Administrative Offices would be closed on Monday, May 26th in observance of Memorial Day. General Manager Rob Thompson announced that it was Municipal Clerks Week and acknowledged the Clerk of the Board and the Assistant Clerk of the Board. Page 1 of 6 OPERATIONS COMMITTEE Minutes May 7, 2025 CONSENT CALENDAR: 1. APPROVAL OF MINUTES 2025-4252 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Approve minutes of the Special meeting of the Operations Committee held April 2, 2025. AYES: Joyce Ahn, Debbie Baker, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Tom Lindsey, Scott Minikus, Robert Ooten and Cindy Tran (Alternate) NOES: None ABSENT: Johnathan Ryan Hernandez and Jaime Valencia ABSTENTIONS: None 2. PURCHASE AND INSTALLATION OF CENTRIFUGE ISOLATORS AT 2025-4107 PLANT NO. 1 Originator: Riaz Moinuddin MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Sole Source General Services Contract to GEA Mechanical Equipment US, Inc. for the purchase and installation of isolator units on six (6) Thickening and Dewatering centrifuges, for a total amount not to exceed $696,726; and B. Approve a contingency of $69,673 (10%). AYES: Joyce Ahn, Debbie Baker, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Tom Lindsey, Scott Minikus, Robert Ooten and Cindy Tran (Alternate) NOES: None ABSENT: Johnathan Ryan Hernandez and Jaime Valencia ABSTENTIONS: None 3. SAFETY SHOWER AND EYEWASH STATIONS INSPECTIONS AND 2025-4228 TESTING, SPECIFICATION NO. S-2025-669BD Originator: Riaz Moinuddin MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Page 2 of 6 OPERATIONS COMMITTEE Minutes May 7, 2025 A. Receive and file Zeco, Inc. protest statement dated April 2, 2025; B. Receive and file Orange County Sanitation District's Protest Response letter dated April 16, 2025; CI 5. C. Approve a General Services Contract to Haws Corporation for Safety Shower and Eyewash Stations Inspections and Testing, Specification No. S-2025-66913D, for a total amount not to exceed $224,594; and D. Approve a contingency of $33,689 (15%). AYES: Joyce Ahn, Debbie Baker, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Tom Lindsey, Scott Minikus, Robert Ooten and Cindy Tran (Alternate) NOES: None ABSENT: Johnathan Ryan Hernandez and Jaime Valencia ABSTENTIONS: None MANHOLE CCTV INSPECTION SERVICES, SPECIFICATION NO. 2025-4245 S-2024-658BD Originator: Riaz Moinuddin MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a General Services Contract to Mattucci Plumbing, Inc. to perform manhole CCTV inspection services, Specification No. S-2024-658BD, for a total amount not to exceed $164,000, with four (4) one-year renewal options; and B. Approve an annual contingency of $16,400 (10%) increase over the prior year for all renewal periods. AYES: Joyce Ahn, Debbie Baker, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Tom Lindsey, Scott Minikus, Robert Ooten and Cindy Tran (Alternate) NOES: None ABSENT: Johnathan Ryan Hernandez and Jaime Valencia ABSTENTIONS: None BUILDING 6, CONTROL CENTER, AND LABORATORY ELEVATOR 2025-4280 REHABILITATION AT PLANT NO. 1, PROJECT NO. FE24-06 Originator: Mike Dorman MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Page 3 of 6 OPERATIONS COMMITTEE Minutes May 7, 2025 A. Approve a Purchase Order Contract to TK Elevator (TKE) for Building 6, Control Center, and Laboratory Elevator Rehabilitation at Plant No. 1, Project No. FE24-06, using Sourcewell Cooperative Contract No. 080420-TKE, for a total amount not to exceed $633,000-1 and B. Approve a contingency of $126,600 (20%). AYES: Joyce Ahn, Debbie Baker, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Tom Lindsey, Scott Minikus, Robert Ooten and Cindy Tran (Alternate) NOES: None ABSENT: Johnathan Ryan Hernandez and Jaime Valencia ABSTENTIONS: None 6. QUARTERLY ODOR COMPLAINT REPORT 2025-4233 Originator: Riaz Moinuddin MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Fiscal Year 2024-25 Third Quarter Odor Complaint Report. AYES: Joyce Ahn, Debbie Baker, Pat Burns, Doug Chaffee, Jon Dumitru, Ryan Gallagher, Lisa Landau, Carlos Leon, Tom Lindsey, Scott Minikus, Robert Ooten and Cindy Tran (Alternate) NOES: None ABSENT: Johnathan Ryan Hernandez and Jaime Valencia ABSTENTIONS: None NON -CONSENT: None. Director Jamie Valencia arrived at the meeting at approximately 5.07 p.m. and Director Johnathan Ryan Hernandez arrived at approximately 5:12 p.m. INFORMATION ITEMS: 7. FY 2025-26 CAPITAL IMPROVEMENT PROGRAM BUDGET UPDATE 2025-4074 Originator: Mike Dorman Director of Engineering Mike Dorman introduced Engineering Manager Justin Fenton and Finance Manager Ruth Zintzun who provided a joint PowerPoint presentation regarding the Capital Improvement Program (CIP) FY 2025-26 Budget Update which included an overview of the CIP Asset Management Plan, the proposed active and upcoming projects, net capital expenses overview and budget update, the 10-year net CIP outlay, the 20-year net CIP outlay, top budget increases and decreases, the FY Page 4 of 6 OPERATIONS COMMITTEE Minutes May 7, 2025 91 4 2025-26 CIP reserves, and key meeting dates. ITEM RECEIVED AS AN: Information Item. OC SAN - OPERATIONS & MAINTENANCE WASTEWATER 101 PART 1: TREATMENT AND RECYCLING Originator: Riaz Moinuddin 2025-4070 Director of Operations & Maintenance Riaz Moinuddin introduced Operations Manager Jon Bradley who provided a PowerPoint presentation regarding the wastewater treatment process. The presentation included a diagram overview of the plant process, the metering and diversion structure, the preliminary and secondary treatments, illustrations of solids removal during treatment, the solids recovery process, dewatering operation, truck loading, and an overview of biogas. ITEM RECEIVED AS AN: Information Item. STRATEGIC PLANNING - CORE VALUES Originator: Laura Maravilla f►llTi►1� yl:�!1 Director of Human Resources Laura Maravilla provided a PowerPoint presentation regarding OC San's core values. The presentation also provided an overview of upcoming topics scheduled for Committee meetings, including the level of service in June and the risk register in July. ITEM RECEIVED AS AN: Information Item. DEPARTMENT HEAD REPORTS: None. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. Page 5 of 6 OPERATIONS COMMITTEE Minutes May 7, 2025 BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Burns declared the meeting adjourned at 5:39 p.m. to the next Regular Operations Committee meeting to be held on Wednesday, June 4, 2025 at 5.00 p.m. Submitted by: Kelly A. Lore, MMC Clerk of the Board Page 6 of 6 Headquarters ADMINISTRATION COMMITTEE 18480 Bandilier Circle ,SAN Fountain Valley, CA 92708 puNOE COYi/*' BRNR npw prsTACn Agenda Report 714 593 7433 File #: 2024-3836 Agenda Date: 6/11/2025 Agenda Item No: 2. FROM: Robert Thompson, General Manager Originator: Wally Ritchie, Director of Finance SUBJECT: GANN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2025-26 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OC SAN 25-XX, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District Establishing the Annual Appropriations Limit for Fiscal Year 2025-26 for the Orange County Sanitation District in Accordance with the Provisions of Division 9 of Title 1 of the California Government Code". BACKGROUND This routine annual action adopts a resolution establishing the spending limit for "proceeds of taxes" in accordance with Article XIII B of the Constitution of the State of California (Section 7910 of the Government Code). The Orange County Sanitation District's (OC San) annual appropriations are well below the limit. In 1979, Proposition 4 (the Gann Initiative) was approved, adding Article XIII B to the State Constitution. The provisions of this article place limits on the amount of revenue that can be appropriated by all entities of government. This initiative was designed to constrain government expenditures by placing an annual limit on jurisdictions' revenue and appropriation growth. The Appropriations Limit is based on actual appropriations during the 1978-1979 fiscal year, as increased each year using specified population and inflationary growth factors. This annual growth allowance is linked to changes in population and cost of living. The passage of Proposition 111 in June 1990 amended Article XIII B, making changes in the base year upon which the Appropriations Limit is based, establishing new cost of living factors and new population factors for use by local governments, and increasing appropriations not subject to the limit (primarily qualified capital outlay projects). The financial constraints of Article XIII B apply to the State, all cities, counties, special districts, and all other political subdivisions. RELEVANT STANDARDS • Produce Operations and CIP budgets every two years, with annual update Orange County Sanitation District Page 1 of 2 Printed on 6/1/2025 powered by LegistarTM File #: 2024-3836 PROBLEM Agenda Date: 6/11/2025 Agenda Item No: 2. Article XIII B of the State Constitution places limits on the amount of revenue that can be appropriated by all entities of government. PROPOSED SOLUTION Approval of the proposed Resolution establishing the annual Appropriations Limit for fiscal year 2025- 26 in accordance with the Provisions of Division 9 of Title 1 of the California Government Code. TIMING CONCERNS The proposed two-year budget, effective July 1 of this year, will be finalized and presented to the Board for adoption in June. The Appropriations Limit Resolution needs to be adopted in conjunction with the budget. RAMIFICATIONS OF NOT TAKING ACTION OC San will not be able to carry out its financial fiduciary duties beyond June 30, 2025. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Draft Resolution No. OC SAN 25-XX Orange County Sanitation District Page 2 of 2 Printed on 6/1/2025 powered by LegistarTM RESOLUTION NO. OC SAN 25-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ESTABLISHING THE ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEAR 2025-26 FOR THE ORANGE COUNTY SANITATION DISTRICT IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE 1 OF THE CALIFORNIA GOVERNMENT CODE WHEREAS, Article XIII B of the Constitution of the State of California as proposed by the Initiative Measure approved by the people at the special statewide election held on November 6, 1979, provides that the total annual appropriations limit of each local government agency shall not exceed the appropriations limit of such entity for the prior year, adjusted for changes in the cost of living and population, except as otherwise specifically provided for in said Article; and, WHEREAS, the State Legislature added Division 9 (commencing with Section 7900) to Title 1 of the Government Code of the State of California to implement Article XIII B of the California Constitution; and, WHEREAS, Section 7910 of the Government Code provides that each year the governing body of each local jurisdiction shall, by resolution, establish its appropriations limit for the following fiscal year pursuant to Article XIII B at a regularly -scheduled meeting or a noticed special meeting and that fifteen (15) days prior to such meeting, documentation used in the determination of the appropriations limit shall be available to the public; and, WHEREAS, Section 7902 (a) of the Government Code sets forth the method for determining the appropriations limit for each local jurisdiction for the 2023-24 fiscal year; and, WHEREAS, the Board of Directors wishes to establish the appropriations limit for fiscal year 2025-26 for the Orange County Sanitation District. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: That it is hereby found and determined that the documentation used in the determination of the appropriations limit for the Orange County Sanitation District, for fiscal year 2025-26, was available to the public in the Finance Department of said Orange County Sanitation District at least fifteen (15) days prior to this date. OC SAN 25-XX-1 Section 2: That the appropriations limit for fiscal year 2025-26 for the Orange County Sanitation District, as established in accordance with Section 7902(b) of the California Government Code is $151,435,847. The budgeted appropriations from proceeds of taxes is within this maximum authorized spending limitation for fiscal year 2025-26. Section 3: That the Board of Directors of the Orange County Sanitation District, has determined that the percent change in California per capita personal income from the preceding year would be the cost of living factor to be used and the weighted average population change of the cities within the Orange County Sanitation District would be the population factor to be used in calculating the Orange County Sanitation District's appropriations limit for the fiscal year 2025-26. Section 4: The determination of the appropriation limit is based upon the best and most complete information available at this time. The Orange County Sanitation District reserves the right to review and re-establish a new and different limit in the event that it subsequently determines that a modification of the limitation amount is appropriate. PASSED AND ADOPTED at a regular meeting of the Board of Directors held June 25, 2025. Ryan P. Gallagher Board Chairman ATTEST: Kelly A. Lore, MMC Clerk of the Board OC SAN 25-XX-2 STATE OF CALIFORNIA ss COUNTY OF ORANGE I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OC SAN 25-XX was passed and adopted at a regular meeting of said Board on the 25th day of June 2025, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 25th day of June 2025. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District OC SAN 25-XX-3 Headquarters ADMINISTRATION COMMITTEE 18480 Bandilier Circle ,SAN Fountain Valley, CA 92708 puNOE COYi/*' BRNR npw prsTACn Agenda Report 714 593 7433 File #: 2025-4274 Agenda Date: 6/11/2025 Agenda Item No: 3. FROM: Robert Thompson, General Manager Originator: Wally Ritchie, Director of Finance SUBJECT: FY 2025-26 USE CHARGES FOR SANTA ANA WATERSHED PROJECT AUTHORITY GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OC SAN 25-XX, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District Establishing Use Charges for the 2025-26 Fiscal Year Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority ("SAWPA")". BACKGROUND Currently, the Orange County Sanitation District (OC San) invoices SAWPA on a quarterly basis for the wastewater discharge received from the Santa Ana River Interceptor (SARI) line. Annually, the rates for flow, BOD, and TSS are calculated based upon the fiscal year budget for treatment and disposal costs and the 1996 Wastewater Treatment and Disposal Agreement. The rates calculated for each constituent for FY 2025-26 for wastewater discharge are: FLOW $307.66 per million gallons of flow BOD $414.76 per thousand pounds TSS $520.39 per thousand pounds The FY 2025-26 rates are an average 4.8 percent increase from the FY 2024-25 rates due to an increase in the treatment and disposal costs in the proposed FY 2025-26 Budget. These rates are separate from the rates charged for additional capacity purchases by SAWPA. RELEVANT STANDARDS • Comply with OC San Policy - Establishing Annual SAWPA Treatment and Disposal Rates • Support of 1996 Treatment and Disposal Agreement with SAWPA TIMING CONCERNS Rates should be effective July 1, 2025 (FY 2025-26). Orange County Sanitation District Page 1 of 2 Printed on 6/2/2025 powered by LegistarTM File #: 2025-4274 Agenda Date: 6/11/2025 Agenda Item No: 3. RAMIFICATIONS OF NOT TAKING ACTION Rates would not be established for FY 2025-26 for cost recovery for treatment and disposal of SAWPA's wastewater discharge. PRIOR COMMITTEE/BOARD ACTIONS A resolution is adopted annually in June pursuant to the Wastewater Treatment and Disposal Agreement with SAWPA. ADDITIONAL INFORMATION The FY 2025-26 proposed budget to operate, maintain, and manage OC San's sewage collection, treatment, and disposal system is $246.4 million, an increase of approximately 3.5 percent, or $8.3 million, from the prior year budget. The Operating Budget increase is primarily driven by increased outside contractual, utility, and personnel costs. Inflation that has impacted the nation's economy over the past year is also driving up OC San's cost of doing business. CEQA FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Draft Resolution No. OC SAN 25-XX Orange County Sanitation District Page 2 of 2 Printed on 6/2/2025 powered by LegistarTM RESOLUTION NO. OC SAN 25-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ESTABLISHING USE CHARGES FOR THE 2025-26 FISCAL YEAR PURSUANT TO THE WASTEWATER TREATMENT AND DISPOSAL AGREEMENT WITH THE SANTA ANA WATERSHED PROJECT AUTHORITY ("SAWPA") WHEREAS, the Board of Directors has approved the Wastewater Treatment and Disposal Agreement with the SANTA ANA WATERSHED PROJECT AUTHORITY ("SAWPA"); and, WHEREAS, said agreement provides for payment of Disposal Costs for the measured and sampled flow of Wastewater discharged from SAWPA's SARI Service Area to Districts' facilities; and, WHEREAS, said agreement provides for adjustment of said Disposal Costs on an annual basis. NOW, THEREFORE, The Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1. That pursuant to Section C4 of the Wastewater Treatment and Disposal Agreement, the 2025-26 fiscal year charges for Disposal Costs are hereby established as follows: For Flow: For Biochemical Oxygen Demand For Total Suspended Solids: $ 307.66 per million gallons of flow $ 414.76 per thousand pounds $ 520.39 per thousand pounds PASSED AND ADOPTED at a regular meeting of the Orange County Sanitation District's Board of Directors held June 25, 2025. Ryan P. Gallagher Board Chairperson /_VAaIMI Kelly A. Lore, MMC Clerk of the Board OC SAN 25-xx-1 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OC SAN 25-XX was passed and adopted at a regular meeting of said Board on the 25'" day of June 2025, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 2511 day of June 2025. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District OC SAN 25-xx-2 Headquarters ADMINISTRATION COMMITTEE 18480 Bandilier Circle ,SAN Fountain Valley, CA 92708 puNOE COYi/*' BRNR npw prsTACn Agenda Report 714 593 7433 File #: 2025-4316 Agenda Date: 6/11/2025 Agenda Item No: 4. FROM: Robert Thompson, General Manager Originator: Lan C. Wiborg, Director of Environmental Services SUBJECT: ORANGE COUNTY WASTE AND RECYCLING WASTE DISPOSAL AGREEMENT, AMENDMENT NO. 2 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Approve Amendment No. 2 of the OC Waste and Recycling Waste Disposal Agreement, extending the initial term of the Agreement from June 30, 2025 to June 30, 2026, for a total amount not to exceed $748,000 which includes the unit price per ton for solid waste disposal and the associated escalation costs. BACKGROUND Since 2013, OC Waste and Recycling (OCWR) has been providing Orange County Sanitation District (OC San) with a low-cost, in -county option to properly dispose up to 50 tons per day (tpd) of solid waste generated from the grit, screenings, and drying beds from both Plant Nos. 1 and 2, which is currently transported to the Frank Bowerman Landfill (Bowerman) located in the city of Irvine. In addition, OCWR provides a fail-safe option for the potential disposal of biosolids at the Prima Deshecha Landfill (Prima) located in the city of San Juan Capistrano when OC San's biosolids cannot be beneficially used. OCWR proposes a one-year extension of the existing Waste Disposal Agreement (WDA) from June 30, 2025 to June 30, 2026. As part of the extension, the landfill disposal fee will increase by 2.6%, from $42.65 to $43.76 per ton, in accordance with the escalation formula in the current WDA. This extension allows continued access to OCWR's landfill services under existing terms while negotiations continue with a long-term successor agreement. OCWR recently sent the Orange County Sanitation District (OC San) a proposed amendment to the WDA. The extension will enable OC San to fully assess future cost impacts, infrastructure needs, and regulatory requirements associated with OCWR's proposal. RELEVANT STANDARDS • Maintain and adhere to appropriate internal planning documents (2023 Strategic Plan, 2017 Biosolids Master Plan, etc.) Orange County Sanitation District Page 1 of 3 Printed on 6/2/2025 powered by LegistarTM File #: 2025-4316 Agenda Date: 6/11/2025 Agenda Item No: 4. • Sustain 1, 5, 20-year planning horizons • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities • Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard PROBLEM OC San's current WDA with OCWR is expiring on June 30, 2025, and an amended agreement is needed to routinely haul solid waste (grit, screenings, drying bed materials and/or any biosolids that cannot be beneficially used) to the various in -county landfills. PROPOSED SOLUTION Approve Amendment No. 2 of the WDA extending the initial term of the Agreement from June 30, 2025, to June 30, 2026. TIMING CONCERNS OC San will need the WDA executed and processed before the June 30, 2025 expiration date to ensure there is no lapse with the current agreement. RAMIFICATIONS OF NOT TAKING ACTION If the amendment is not approved, OC San may not have a way to dispose of the solid waste (grit, screenings, drying bed materials, etc.) produced at Plant Nos. 1 and 2. While alternative options may include transporting and disposing of the waste at landfills in other counties/states, this would pose logistical challenges and significant cost increases. Furthermore, in the event that disposal services are not available, screening and grit waste would back up and foul OC San's treatment systems. Onsite long-term storage of this waste would present a public health risk. PRIOR COMMITTEE/BOARD ACTIONS June 2015 - Approved Amendment No. 1 of the OC Waste Recycling Waste Disposal Agreement, extending the initial term of the Agreement from June 30, 2020 to June 30, 2025. November 2012 - Approved a Waste Disposal Agreement with the County of Orange (Orange County Waste and Recycling) for the County to receive and dispose of the Orange County Sanitation District's biosolids at the Prima Deshecha Landfill, subject to available capacity, for the period commencing on December 1, 2012 through June 30, 2020, with a renewal option of 10-years in a total annual amount not to exceed $3,605,288. ADDITIONAL INFORMATION N/A Orange County Sanitation District Page 2 of 3 Printed on 6/2/2025 powered by LegistarT" File #: 2025-4316 CEQA N/A FINANCIAL CONSIDERATIONS Agenda Date: 6/11/2025 Agenda Item No: 4. This request complies with authority levels of OC budgeted (Budget FY 2024-25 and 2025-26 Line i for this action. San's Purchasing Ordinance. This item has been em: Section 6, Page 5) and the budget is sufficient ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Amendment No. 2 Orange County Sanitation District Page 3 of 3 Printed on 6/2/2025 powered by LegistarTM SECOND AMENDMENT TO WASTE DISPOSAL AGREEMENT Between THE COUNTY OF ORANGE, CALIFORNIA and the ORANGE COUNTY SANITATION DISTRICT County Amendment Authorization Date , 2025 County Notice Address: Director, OC Waste & Recycling 601 N. Ross Street 5t" Floor Santa Ana, CA 92701 June 30, 2025 Orange County Sanitation District Amendment Authorization Date: , 2025 Orange County Sanitation District Notice Address: 18480 Bandilier Circle Fountain Valley, CA 92708 Page 1 of 4 SECOND AMENDMENT TO WASTE DISPOSAL AGREEMENT THIS SECOND AMENDMENT TO THE WASTE DISPOSAL AGREEMENT ("Second Amendment") is made and dated as of the date indicated on the cover page hereof between the County of Orange, a political subdivision of the State of California (the "County"), and the Orange County Sanitation District, a county sanitation district duly existing under the laws of the State of California (the "District"). County and District may be referred to as "Party" individually or "Parties" when referred to jointly. RECITALS The County owns, manages, and operates a Waste Infrastructure System to manage municipal and solid waste generated within Orange County, California or imported from outside Orange County, California pursuant to contractual agreements (hereafter used referred to as "Disposal System" or "Waste Infrastructure System"). The Waste Infrastructure System collectively includes active Class III sanitary landfills ("County Landfills"), resource recovery, recycling and organics programs, infrastructure and operations, and regional household hazardous waste collection centers and other waste management related systems as may be deemed necessary by the County. The County is also responsible for the long-term management of 20 closed landfills as required under Applicable Law. County Landfills are used for the management of municipal solid waste pursuant to legislation including, but not limited to, the California Integrated Waste Management Act of 1989 (Division 30 of the California Public Resources Code) (the "Act") and the Short-lived Climate Pollutants Reduction Act ("SB 1383"). County Landfills are also subject to other state and federal regulations designed to ensure that landfill operations minimize the impacts to public health and safety and the environment. District and County entered into a Waste Disposal Agreement ("WDA") dated January 8, 2013 ("2013 Waste Disposal Agreement") wherein the County agreed to receive and dispose of the District's biosolids at County landfills, subject to available capacity, through June 30, 2020 at a base rate of 110%of the rate payable by Participating Cities under City Waste Disposal Agreements, subject to CPI adjustments. Thereafter on June 24, 2015 the Parties entered into the First Amendment of the 2013 Waste Disposal Agreement ("First Amendment" or "Current WDA") extending the term of the agreement through June 30, 2025. The County has similar WDAs with cities and sanitary districts throughout Orange County ("City WDAs"), which are also expiring on June 30, 2025. The Orange County City Manager Association ("OCCMA") is currently negotiating with the County updated rates and terms on a new WDA. The OCCMA has requested, and the County has agreed to, a one-year extension to allow time to complete negotiations. The terms of District's WDA are closely tied to the terms that will be negotiated with the Cities and sanitary districts. Therefore, the Parties seek to extend the term of the Current WDA for one year to allow the County additional time to negotiate mutually agreeable terms with OCCMA for a new WDA, and obtain approval from their respective governing bodies. The Parties have determined that the execution this Second Amendment will serve the public health, safety, and welfare by continuing to provide a stable, predictable solid waste services to District, and reliable supply of municipal solid waste to the Disposal System. Page 2 of 4 Official action approving this Second Amendment and determining it to be in the public interest and authorizing its execution and delivery was duly taken by the County on the County authorization date indicated on the cover page hereof. Official action approving this Second Amendment and determining it to be in the public interest and authorizing its execution and delivery was duly taken by the District on the District authorization date indicated on the cover page hereof. It is, therefore, agreed as follows: 1. Extended Term. (a) Section 6.1(A) of the Current WDA is deleted in its entirety and replaced with the following: "Extended Term. This Agreement shall continue in full force and effect until 11:59 p.m. on June 30, 2026 (the "Extended Term"), unless earlier terminated in accordance with its terms, in which event the Extended Term shall be deemed to have expired as of the date of such termination." (b) Section 6.1(B) is deleted in its entirety. (c) Section 6.1(C) of the Current WDA is deleted in its entirety and replaced with the following: "Contract Rate Negotiations During Extended Term. The County shall provide periodic updates to District regarding anticipated changes to the new WDA that result from its negotiations with the OCCMA with the goal of having a final terms negotiated by September 30, 2025. (d) Appendix 2 of the City WDA is deleted in its entirety and replaced with the following: APPENDIX 2 Cumulative County Acceptable Waste Tonnage Target to be Used for Purposes of Section 4.2(B) Fiscal Year County Acceptable Waste Tonnage Cumulative County Acceptable Waste Tonnage FY 2025-26 3,166,659 3,166,659 2. Effectiveness of Second Amend The provisions of this Second Amendment shall not become effective unless approved by the County Board of Supervisors and executed by the County. The County shall give written notice of the Amendment effective date to the District within 30 days of the County Board approval. 3. Reoresentations and Warranties of the Parties. Each of the parties to this Second Amendment represent and warrant that they validly existing under the laws of the State of California and that they have duly authorized the execution and delivery of this Second Amendment to each other Party. Page 3 of 4 6. Remaining Terms. All other terms and conditions of the Current WDA not specifically changed by this Second Amendment, shall remain in full force and effect. IN WITNESS WHEREOF, COUNTY and DISTRICT have caused this Second Amendment to be executed by their duly authorized officers or representatives as of the day and year first above written. County of Orange By Director, OC Waste & Recycling Date Approved as to Form By County Counsel Date Orange County Sanitation District RTA Board Chairman, Ryan P. Gallagher Orange County Sanitation District Date M Clerk of the Board, Kelly Lore Orange County Sanitation District Date Page 4 of 4 Headquarters ADMINISTRATION COMMITTEE 18480 Bandilier Circle ,SAN Fountain Valley, CA 92708 puNOE COYi/*' BRNR npw prsTACn Agenda Report 714 593 7433 File #: 2025-4226 Agenda Date: 6/11/2025 Agenda Item No: 5. FROM: Robert Thompson, General Manager Originator: Jennifer Cabral, Director of Communications SUBJECT: PUBLIC AFFAIRS UPDATE FOR THE MONTH OF MAY 2025 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Public Affairs Update for the month of May 2025. BACKGROUND Included in this report are recent activities of interest, managed by the Public Affairs Office for the month of May 2025. RELEVANT STANDARDS • Maintain influential legislative advocacy and a public outreach program • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities • Listen to and seriously consider community input on environmental concerns PROBLEM The Orange County Sanitation District (OC San) is a distinguished entity in the water/wastewater industry. Despite our industry recognition, there may be limited awareness among our customers regarding the pivotal role we play in protecting public health and the environment. The absence of direct communication through a billing method may contribute to this gap in knowledge. It is our responsibility to ensure that our ratepayers comprehend the vital services we provide. Many customers may not realize that improper waste disposal into the sanitation system can adversely impact our sewer lines, reclamation plants, and the quality of water supplied through GWRS. By enhancing communication channels and fostering understanding, we aim to bridge the gap and empower our ratepayers with the knowledge needed to support and appreciate the essential work we undertake for the well-being of our community and the environment. Orange County Sanitation District Page 1 of 4 Printed on 6/2/2025 powered by LegistarTM File #: 2025-4226 Agenda Date: 6/11/2025 Agenda Item No: 5. PROPOSED SOLUTION By providing tours, community outreach, education, and general communication via OC San's website, social media, and direct mailings, we can share information with the community, local agencies, and businesses on our messaging such as the What2Flush program, energy production, water recycling, biosolids, and our source control program. This, in turn, helps improve the quality of wastewater that is recycled or released to the ocean and the knowledge and understanding of wastewater treatment. RAMIFICATIONS OF NOT TAKING ACTION Neglecting to inform the community, local agencies, and area businesses about OC San could lead to insufficient support for our mission, hindering our ability to fulfill our responsibilities effectively. PRIOR COMMITTEE/BOARD ACTIONS June 2024 - Received and filed the Public Affairs Strategic Plan for Fiscal Years 2024-2026. ADDITIONAL INFORMATION Activities in May: Outreach Report An outreach report that includes tours, website updates, social media posts, construction notifications, speaking engagements, and more is attached to this Agenda Report. Social Media (through May 27) OC San messaging, announcements, and program updates are posted across OC San's social media platforms. Our social media handle is @OCSanDistrict. • Facebook: 18 posts reaching 2.5k people • X: 16 posts reaching 544 people • Instagram: 28 posts reaching 7.6k people • Linkedln: 4 posts reaching 2.5k people • Nextdoor: 2 posts with 8.2k impressions Presentations and Outreach Events In May, OC San hosted 11 tours, welcoming a variety of groups including Orange Coast College, Servite High School, University of California Irvine, Fountain Valley Chamber of Commerce, members of the California Water Environment Association, Director Carlos Leon and his staff, and a general public tour. Staff also participated in a Career Day at Curtis Middle School. Overall, we reached approximately 230 people. Internal Communication Over the course of the month, there were 65 posts on the employee intranet -The San Box, and four emails were distributed to staff on relevant weekly topics through our Three Things to Know email. Orange County Sanitation District Page 2 of 4 Printed on 6/2/2025 powered by LegistarTM File #: 2025-4226 Agenda Date: 6/11/2025 Agenda Item No: 5. Construction Outreach Update Outreach efforts for OC San construction activities are ongoing throughout the service area. Updates were shared for projects taking place in Orange and Costa Mesa and Newport Beach through our website, email text alerts, and direct notifications reaching over 2000 subscribers via our GovDelivery platform. For details on each project, visit www.ocsan.gov/construction. Awards OC San was awarded the Platinum Peak Performance Award from the National Association of Clean Water Agencies (NACWA), which recognizes member agencies for achieving 100 percent water discharge permit compliance over a consecutive five- year period. OC San has received Platinum status for eight straight years. The award is for both Plant Nos. 1 and 2. Employee T-shirt Design Contest OC San held a staff -inspired T-Shirt Design Contest that celebrates creativity and pride in our mission. The winning design was voted by staff in May, the t-shirt will soon be available for purchase on the OC San company store. The intent is for the t-shirt to be worn by staff, family, and community members. Introducing the RISE Program As industry pioneers, OC San has various ongoing efforts that highlight our innovation to protect the environment. To promote those efforts, we have launched a new program- Resource Innovation for a Sustainable Environment (RISE). This program captures many of the efforts previously undertaken by OC San, currently underway, and new initiatives such as Supercritical Water Oxidation and Deep Well Injection. Explore www.ocsan.gov/RISE to see how we're implementing transformative technologies and initiatives. OC San Featured in OC Register's Online Water Insert For the sixth consecutive year, OC San participated in the Orange County Register California Water Supplemental Educational online insert. The water insert features OC San and several other local agencies. The article highlights our newly launched Resource Innovation for a Sustainable Environment (RISE) program. The insert is now published and available at www.ocsan.gov and via our social media channels. Celebrating Public Works Week The third week of May is nationally recognized as Public Works Week. OC San recognized employees with treats at our various locations, a video message from the General Manager posted on our intranet, social media posts featuring our staff, and a raffle to win OC San swag bags. The week is an opportunity to acknowledge the various departments throughout the agency and the work we do to provide an essential service. Activities in June: Social Media OC San continues to share messaging across the various social media platforms. Launching New Employee Intranet Site The Public Affairs Office in collaboration with the IT Division has developed an updated OC San Orange County Sanitation District Page 3 of 4 Printed on 6/2/2025 powered by LegistarTM File #: 2025-4226 Agenda Date: 6/11/2025 Agenda Item No: 5. intranet site - The San Box. This revamped platform will introduce much -needed upgrades to improve internal communication and enhance the overall employee experience. The new San Box is expected to launch in mid -June. Presentations & Outreach In June, OC San has eight (8) scheduled tours, welcoming a variety of groups including County of Orange, Cal State Fullerton, San Diego Public Utilities, Achievement Institute for STEM Scholars, United for Student Success, new employees, and Orange County Emergency Management Organization. Honor Wall Ceremony This year's celebration is honoring five outstanding contributors to OC San's success. Former General Manager, Jim Herberg; Principal Environmental Specialist, Mike McCarthy; Engineering Supervisor, Brian Bingman; Senior Scientist, Yu -Li Tsai and former Board Member and Board Chairman, Greg Sebourn. They will be recognized on Wednesday, June 25, 2025, at 3:30 pm in front of OC San Headquarters. Internal Communication The bimonthly issue of the employee newsletter, the Pipeline, will be published highlighting our talented staff and promoting various programs. Community Newsletter The summer issue of the OC San Connection newsletter is scheduled to be published in late June featuring various informative articles for the over 3,000 subscribers. Construction Outreach Outreach efforts will commence in June for two construction projects starting this summer, the Bay Bridge Pump Station and Force Main project in Newport Beach; and the Cypress Trunk Sewer project in Cypress and Los Alamitos. Presentations will be provided at the City Council meetings for Los Alamitos and Cypress on the Cypress Trunk Sewer Project. CEQA N/A FINANCIAL CONSIDERATIONS All items mentioned are included in OC San's FY 2024-25 and FY 2025-26 Budget. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Outreach and Media Report for May 2025 • Presentation Orange County Sanitation District Page 4 of 4 Printed on 6/2/2025 powered by LegistarTM Outreach and Media Summary OC6SAN ORANGE COUNTY SANITATION DISTRICT May 2025 OC San Public Affairs Office Table of Contents OUTREACH REPORT..................................................................PAGE 1 FACEBOOK POSTINGS..................................................................PAGE 3 TWITTER POSTINGS..................................................................PAGE 4 INSTAGRAM POSTINGS...............................................................PAGE 5 LINKEDIN POSTINGS...................................................................PAGE 6 NEWSARTICLES........................................................................................ PAGE 7 Outreach Report May 2025 Date Tours Attendees Tour Guide 5/1/25 South Coast Air Quality Management 8 Randa AbuShaban District 5/5/25 Orange Coast College 16 Randa AbuShaban 5/5/25 Orange Coast College Group 2 26 Randa AbuShaban 5/6/25 General Public 13 Donald Herrera 5/7/25 Servite High School 16 Chris Cervellone 5/7/25 Servite High School Group 2 13 Chris Cervellone 5/12/25 University of California Irvine 4 Eric Halverson 5/16/25 Orange Coast College 12 Eric Halverson 5/19/25 Fountain Valley Chamber 12 Randa AbuShaban 5/20/25 OC San Ocean Monitoring Team 5 Charles Falzone 5/21/25 CWEA Conference 33 Charles Falzone/ Donald Herrera 5/21/25 Director Leon and Guests 3 Rob Thompson 5/21/25 HQ Tour for CWEA Conference 15 HDR Staff Date Speaking Engagements/Events Attendees Presenter 5/9/25 Curtis Middle School Career Day 40 Larry Polk # of People Output Method Project Area Outreach Notifications Reached Airway — Airport Loop Sewer 15 page views 1 website post Costa Mesa Rehabilitation Project 356 subscribers 1 email Costa Mesa Costa Mesa Sewer Rehabilitation 27 page views 1 website post Along 1-405 380 subscribers 1 email 223 page views 3 website posts Orange Taft Ave. Sewer Improvement Project 476 subscribers 3 emails 37 people signed 3 text Alerts up for texts External # of People Distribution Communications Reached 5 Minutes Per Celebrating the Hidden Heroes of Our Month Communities 130 Board Member One 50 Email Talking Points Website Posts 6 posts 100 views Website Facebook 18 posts 2.5k reached Social Media Twitter 16 tweets 544 reached Social Media Instagram 28 posts 7.6k reached Social Media Linkedln 4 posts 2.5k reached Social Media Nextdoor 2 posts 2.8k impressions Social Media ZHootsuite° Post performance - Facebook Pages Data from 01 May, 2025 to 27 May, 2025 Sources ii Orange County Sanitation District DATE w Orange County Sanitation 0 District M ay 25, 22:55 Orange County Sanitation 0 District May 23, 17:50 POST in observance of Memorial Day, our Ad ministrative Offices will be closed on Monday, May 26.Our reclamation plants will continue to operate as always. In case of a sewer emergency, please call 714-593-7025. Wrapping up Public Works and Special Districts Week with one more big shoutout to ourstaff. Whetherthey're working at a desk or in the field, ourteam goes above and beyond to uphold our mission of protecting public health an... Orange County Sanitation District It's Special Districts Week! For over70 years, OC San has provided safe, reliable "6" @�:•� 0�� wastewater collection, treatment, and recycling services — and it's all thanks to �. May21,15:01 �'( b*team! Ourwork isessential, and soare our people #SpecialDistrictsWe... Orange County Sanitation WATER District Check outthe Orange County Register's new e-edition focused on California's 0 water and wastewater industry. Inside you'I l learn all about how we're turning May 20, 20:30 waste into resources, along with exciting projects like Supercritical Water... Orange County Sanitation 0 District May 19, 16:06 Happy Public Works Week! From engineers to operators, ourdedicated team works hard to sere Orange County every single day. Check out the amazing "characters" that make up OC San! #NPWW Orange County Sanitation ? District Curious aboutwhatwe're up to? Learn all about ourcutting-edge initiatives and 0 research, including Supercritical Water Oxid ation and Deep Well Injection May 18, 17:35 Zise through our RISE Program. Dive right inand visit www.ocsan.gov RISEformor... Orange County Sanitation District Today we're highlighting our Dry Weather Urban Runoff (DWUR) Program! Last 0 fiscal year, we received a daily average of 2.81 million gallons of DWUR - M May 16, 16:40 4eping pesticides & bacteria out of local waterways! f,. Learn more at o... Orange County Sanitation 0 District May 16, 02:07 An unfortunate incident occurred last night at our Headquarters, thankfully no one was hurt. OC San is working closely with FVPD and oursecurity contractor. Orange County Sanitation District a' Qthing beats the view from ourocean monitoring vessel, Nerissa As a key part of our Ocean Monitoring Program, Nerissa al.lows our team to do important May 14, 19:00 a tests and analyses of the offshore environment. Orange County Sanitation District 6 It's Bike to Work Week, but here at OC San, everyday is Bike Around Work 0 Day! Our staff have access to bikes to easily navigate our facilities. We're May12,16:35 reducing carbon emissions, staying active, and getting the job done efficiently... Orange County Sanitation District + + The Administration Committee Meeting is happening Wednesday, May 14 at5 0 )istrict PM. Click here to view the agenda: May 12, MD :ALIFORNIA Orange County Sanitation 0 District M ay 09, 19:20 As #MunicipalClerksWeek wraps up, we're shining a spotlight on our incred ible Board Services team! Their behind -the -scenes dedication keeps our Board of Directors, OC San staff, and the public connected and informed —ensuring... Orange County Sanitation } District r Happy Skilled Trades Day to all the hardworking men and women who hold our 0 gknmunity together ® From electriciansand mechanics towelders, we're May 07, 15:35 especially thankful to our OC San staff who work daily to keep our operations... Orange County Sanitation 0 District May 05, 22:30 V? Construction Safety Week! At OC San, safety is more than a priority, it's one of ourcore values.All week long, we will be answering your questions about safety on the job. Because when it comes to staying safe, there's no such thing ... Orange County Sanitation 0 District Lookingfora meaningful career that serves yourcommunity? Look no further - Ma L5,19.15 explore ourexcitingopportunities atocsan.gov careers! 0 Orange County Sanitation District M At OC San, nothing goes to waste. Every day, we turn solids leftoverfrom the wastewater treatment process into anutrient-rich soil amendment for nurseries, May 04, 16:15 agriculture, and home gardens! Learn more atocsan.gov/biosolidsY... Orange County Sanitation District#FlashBackFriday to an inspection of ourocean outfatl pipeline in 2020. This 0 pipeline extends five miles from shore and sits on the seafloor at a depth of 200 May 02, 16:30 feet. Using a remotely operated vehicle, ourteam was able to access inside th... IMPRESSIONS 55 200 260 179 174 75 79 412 124 157 52 205 89 60 153 103 106 REACH 55 200 256 175 167 71 70 395 116 146 48 194 85 56 142 97 99 ESAN y Orange County Sanitation H0110RE6WITH 1� District {�� Good news! OC San was honored for the 31st consecutive yea rwith the 0Certificate ofAchievementfor ExceIlenceinFinancialReporting for ourFisca1 MayO1, . Yea r2023-24AnnuaI Comp rehensive Rep ort. This honor, awa rd ed by the... 96 3 89 ZHootsuite-, Post performance - Twitter Data from 01 May, 2025 to 27 May, 2025 Sources V @OCSanDistrict DATE w POST ENGAGEMENT RATE @OCSanDistrict In observance of Memorial Day, our Administrative Offices will be closed on 0 R Monday, May 26.Our reclamation plants will continue to operate as always. In 0% © May 25, 22:55 case of a sewer emergency, please call 714-593-7025. https://twittercom/OC... @OCSanDistrict 'o } Wrapping up Public Works and Special Districts Week with one more big 0 May 23, 17.50 shoutout to our staff. Whether they're working at ad esk or in the field, our team 0% © goes above and beyond to uphold our mission of protecting public health an... @OCSanDistrict It's Special Districts Week! For over70 years, OC San has provided safe, reliable 0 May 21 15'Ol Y-� wastewater collection, treatment, and recycling services —and it's all thanks to 9.33% 'rteam!Ourworkisessential,and © kIN M 16" scare ourpeople #SpecialDistrictsWe... WATER" @OCSanDistrict Mom Checkout the OCRegisters e-editionfocused onCgs water and wastewater 0 May 20, 20.30 Z. industry. Inside you'll team all about how we're turning waste into resources, 7.69% © alongwith exciting projects like Supercritical WaterOxidation and ourRISE... @OCSanDistrict Happy Public Works Week! From engineersto operators, our dedicated team ©0 Ma19 16.05 works hard to sere Orange County every single day. Check out the amazing 6.38% — = y , "characters" that make up OC San! #NPWW https://twitLercom/OCsanDistrict... @OCSanDistrict Curious aboutwhatwe're up to? Learn all about our cutting-ed ge initiatives and O© May 18, 17.35 research, including Supercritical Water Oxidation and Deep Well Injection 0% through our RISE Program. Dive right in and visit http://www.ocsan.gov RISE f... 15B @OCSanDistrict ROW, Today we're highlighting our Dry Weather Urban Runoff (DWUR) Program! Last fiscal 0 May 16 16:40 year, we received a daily average of 2.81 million gallons of DWUR - 9.38% © 4eping pesticides & bacteria out of local waterways! &L. Learn more at ht... @OCSanDistrict Qthingbeats the view from ouroceanmonitoring vessel, Nerissa Asa key 0 May 14, 19.00 part of our Ocean Monitoring Program, Nerissa al lows our team to d o important 3.7% tests and analyses of the offshore environment. �, https://twittercom/OCSan... @OCSanDistrict It's Bike to Work Week, but here at OC San, everyday is Bike Around Work May12,16.35 Day! Ourstaff have access to bikes to easily navigate our facilities. We're 3.03% ©0 r reducing carbon emissions, staying active, and getting the job done efficiently... @OCSanDistrict ® As #Municipa[ClerksWeek wraps up, we're shining a spotlight on our incredible 0 May09,19.20 Board Services team! Their behind-the-scenesdedicationkeeps our Board of 0% © Directors, OC San staff, and the public connected and informed —ensuring... @OCSanDistrict� Happy Skilled Trades Day to the hardworking men and women who hold our 0 May 07 15'35 community together From electricians to welders, we're thankful to our staff 2.94% © y , ' ' who work to keep our operations running. Looking for a job in the trades? Visit ... @OCSanDistrict ?11. Construction Safety Week! At OC San, safety is more than a priority, it's a 0 May05,22.30 r core value. We wil I be answering your q uestions about construction safety. 0% © Because when it comes to staying safe, there's no such thing as a sit ly q uestion... @OCSanDistrict Looking fora meaningful careerthat serves your community? Look nofurther - 0 May 05, 19.15 explore our exciting opportunities athttp: ocsan.gov careers! https://twitterco 0% © m/ 0 CSa nD istrict/status/ 1919470915227619451/v id eo/ 1 @OCSanDistrict At OC San, nothing goes to waste. Every day, we turn solids leftover from the 0 May 04 16'15 wastewater treatment process into a nutrient -rich soil amendment for nurseries, 2.38% © Y agriculture, and home gardens! Learn more athttp: ocsan.gov/biosolidsY... @OCSanDistrict #FtashBackFriday to an inspection of our ocean outfatl pipeline, which extends 0 May 02, 16.30 five miles from shore and sits on the seafloor at a depth of 200 feet. Using a 4.65% © remotely operated vehicle, ourteam was able to go inside to assess its... N" HOH DRED WITH @OCSanDistrict yfa, OCSanwashonoredfor the 31stconsecutive year with the Certificate of 0 May oamarEa�aon' Achievement for Excellence in Financial Reporting for our FY 2023-24 Annual 0% Achievement © L Comprehensive Report. This honor, awarded by the GFOA, is the highest form ... ry ENGAGEMENTS 0 0 7 N 3 0 3 1 1 0 1 0 0 1 2 0 IMPRESSIONS 15 23 75 pig 47 24 32 27 33 25 34 44 25 42 43 29 4 zHootsuite-, Post performance - Instagram Business Data from 01 May, 2025 to 27 May, 2025 Sources 00 ocsandistrict DATE . POST ocsandistrict In observance of Memorial Day, our Administrative Offices will be closed on Mdy25,22'S5 �• Monday, May 26. Our reclamation p[ants will continue tooperate asalways. In O_ case of a sewe r e m e rge ncy, please call 714-593-7025. ocsandistrict 00 May 24, 19.50 (No description) ocsandistrict Wrapping up Public Works and Special Districts Week with one more big May 23 17'50 y� shoutout to ou r sta ff. W hethe r they're worki ng at a d esk or i n the fie I d, ou r tea m 0 goes above and beyond to uphold our mission of protecting public health an... ocsandistrict 00 May23,03:41 (No description) ocsandistrict 00 O May 22, 18.05 Confined Space Training at Plant No.1 ocsandistrict 00 May 21, 18:45 CWEAtraining and vendor exhibition at OC San's HQ @cweamembers ocsandistrict It's Special Districts Week! Forover70 years, OC San has provided safe, reliable 00wasMay 21 15'Ol y tewater collection, treatment, and recycling services — and it's all thanks to 'i-team!Ourworkis essential, and soare ourpeople #SpecialDistrictsWeek WATER' ocsandistrict Check outthe Orange County Register's new e-edition focused on California's May 20, 20.30 water and wastewater industry. Inside you'I l learn all about how we're turning Owaste into resources, along with exciting projects like Supercritical Water... ._.,. 0 ocsandistrict May 20, 15.40 - (Nodescription) ocsandistrict 00 O May 19, 23.12 Happy Public Works Week! ocsandistrict Happy Public Works Week! From engineers to operators, our dedicated team May 19 16.05 works hard to sere Orange County every single d ay. Check out the amazing "characters" Oy� that make up OC San! #NPWW ocsandistrict l Curious about what we're up to? Learn all about ourcutting-edge initiatives and OMay 18, 17:35 r research, includ ing Supercritical Water Oxid ation and Deep Well I njection through our RISE Program. Dive right inand visit www.ocsan.gov/RIS formor... ocsandistrict 0 May 16, 19:21 Beautiful Day at Epcot aka Plant No.2's Primary Clarifiers ocsandistrict .�A i1 Today we're highlighting our Dry WeatherUrban Runoff(DWUR) Program! Last 0 May 16 16.40 y� fiscal year, we received a daily average of 2.81 million gallons of DWUR - 0 *eping pesticides & bacteria outof local waterways! fi,. Learn more at o... ocsandistrict Qthingbeats the view from our ocean monitoringvessel,Nerissa Asa key May 14, 19.00 part of our Ocean Monitoring Program, Nerissa al lows our team to d o important 0 tests and analyses of the offshore environment. fi ocsandistrict M', It's Bike to Work Week, but here at OC San, every day is Bike Around Work oO May 12, 16.35 Day! Our staff have access to bikes to easily navigate our facilities. We're reducing carbon emissions, staying active, and getting the job done efficiently... ocsandistrict As #MunicipalClerksWeek wraps up, we're shining a spotlight on our incred ible 00 May 09, 19.20 Board Services team! Their behind -the -scenes dedication keeps our Board of Directors, OC San staff, and the public connected and informed —ensuring... ocsandistrict oO May 08, 14.18 j l _ #ConstructionSafetyWeek wr. w.dav w.rn 00 ocsandistrict ' We would say it's to always wear proper personal protective equipment 0 y 07, 17:16 May r = (PPE) That is the first step to ensuring the safety of the team. ocsandistrict 00 May 07, 17.00 #ConstructionSafetyWeek n ocsandistrict Happy Skilled Trades Day to all the hardworking men and women who hold our 00 May 07 15'35 y, r 916mmunitytogether® From electricians and mechanics towelders, we're especially thankful to our OC San staff who work daily to keep our operations... ocsandistrict 00 May 06,18:09 t Spill Drill Training at Plant No. 1 ocsandistrict oO May 06, 16:28 #ConstructionSafetyWeek ocsandistrict V-1 Construction Safety Week! At OC San, safety is more than a priority, it's May 05, 22.30 one of our core values. All week long, we will be answering your q uestions about IO safety on the job. Because when it comes to staying safe, there's no such thing ... 0 ocsandistrict Looking for a meaningful careerthat serves your community? Look no further - 0 May 05, 19:15 explore our exciting opportunities atocsan.gov careers! ocsandistrict At OC San, nothing goes to waste. Every day, we turn solids leftoverfrom the May 04 16.15 y� wastewater treatment process into a nutrient -rich soil amend mentfor nurseries, 0 agriculture, and home gardens! Learn more at ocsan.gov/biosolidsY... ocsandistrict #FtashBackFriday to an inspection of our ocean outfatl pipeline in 2020. This 00 May 02, 16.30 pipeline extends five miles from shore and sits on the seafloor at a depth of 200 feet. Using a remotely operated vehicle, ourteam was able to access inside th... HQNORFBWII9 ocsandistrict /6 Good news! OC San was honored forthe 31st consecutive yearwith the Ma Q1 17'30 y� `�V Certificate of Achievement for Excellence in Financial Reporting forour Fiscal 0 Year2023-24 Annual Comprehensive Report. This honor, awarded by the... +FIDMIM i __sue f- - ocsandistrict 00 May Ol, 00.02�SSAN @cityoforange_ca For more information visit: M�1�/IIYR:�m ENGAGEMENT RATE IMPRESSIONS LIKES REACH 1.04% 0 1 96 0% 134 0 10.6% 0 22 0% 165 0 0% 236 0 0% 345 0 13.43% 0 35 10.92% 0 23 0% 121 0 0% 145 0 11.82% 0 67 3.48% 0 4 0% 172 0 3.01% 0 4 11.48% 0 23 11.85% 0 33 10.33% 0 28 0% 197 0 0% 120 0 0% 132 0 9.17% 0 18 0% 155 0 0% 167 0 5.46% 0 9 3.13% 0 4 10.1% 0 20 10.04% 0 23 5.63% 0 11 0% 1,839 0 5 zHootsuite° Post performance - Linkedln Pages Data from 01 May, 2025 to 27 May, 2025 Sources Qb Orange County Sanitation District DATE w POST Orange County Sanitation District Special Districts Week! For over70 years, OC San has provided safe, reliable O wastewater collection, treatment, and recycling services — and it's all thanks to ® May21,15:01 2'It's tea m!0urwork isessentia1,andsoareour people #SpecialDistrictsWe... �T�a a Orange County sanitation WATER' District Check outthe Orange County Register's new e-edition focused on California's 0 water and wastewater Ind ustry. I nsid a you'I l learn all about how we're turning ® May 20, 20:30 waste into resources, along with exciting projects like Supercritical Water... Orange County Sanitation District f Curious aboutwhatwe're up to? Learn all about ourcutting-edge initiatives and 0 research, including Supercritical Water Oxid ation and Deep Well Injection ® M ay 18, 17:35 gme through our RISE Program. Dive right in and visit www.ocsan.gov/RI SE for mor... g Orange County Sanitation HoxDREW oREowliH District �� OC San was honored for the 31st consecutive year with the Certificate of 0 Achievement for Excellence in Financial Reporting for our Fiscal Yea r2023-24 ® May 01, 17:30 A�rvnnr I Annual Comprehensive Report. This honor, awarded by the Government Finan... __Bµ ENGAGEMENT RATE 12.72% 8.82% 7.76% 3.11% IMPRESSIONS 692 839 438 579 REACTIONS 35 38 12 13 SHARES 1 2 1 1 11 News Articles for May 2025 Article Date Source Link Let It Flow: Building the World's Largest Recycling Plant — in Orange County 4/29/2025 USC Magazine https://magazine.viterbi.usc.edu/spring- 2025/alumni/let-it-flow-building-the-worlds- largest-recycling-plant-%E2%80%95-in-orange- countyZ How Water Utilities Can Support The Electric Grid While Reducing Costs 5/2/2025 Water Online https://www.wateronline.com/doc/how-water- utilities -can -support -the -electric -grid -while - reducing-costs-0001 FROM WASTE TO RESOURCE: The Journey of OC San's Water 5/12/2025 OC Register https://ocsdgov.sharepoint.com/:b:/s/External /EYO2NzBOVRJOvLZUscP8 rwBDEnHMb hYvm SKywvpXVBDA?e=WiCUex Heal the Bay report: OC earns 34'Honor Roll' spots; Santa Monica Pier area is most polluted I 5/22/2025 OC Register https://ocsdgov.sharepoint.com/:b:/s/External /EesiDw-OSg5AoJbOgIF2eTUB4M2O P- bSOyScaW26yfWaA?e=blJhOu Headquarters ADMINISTRATION COMMITTEE 18480 Bandilier Circle ,SAN Fountain Valley, CA 92708 puNOE COYi/*' BRNR npw prsTACn Agenda Report 714 593 7433 File #: 2025-4140 Agenda Date: 6/11/2025 Agenda Item No: 6. FROM: Robert Thompson, General Manager Originator: Jennifer Cabral, Director of Communications SUBJECT: LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF MAY 2025 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Legislative Affairs Update for the month of May 2025. BACKGROUND The Orange County Sanitation District's (OC San) legislative affairs program includes advocating for OC San's legislative interests; sponsoring legislation (where appropriate); and seeking local, state, and federal funding for projects and programs. RELEVANT STANDARDS • Maintain influential legislative advocacy and a public outreach program • Build brand, trust, and support with policy makers and community leaders • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities PROBLEM Without a strong advocacy program, elected officials may not be aware of OC San's mission, programs, and projects and how they could be impacted by proposed legislation. PROPOSED SOLUTION Continue to work with local, state, and federal officials to advocate for OC San's legislative interests. Help to create and monitor legislation and grants that would benefit OC San, the wastewater industry, and the community. To assist in relationship building efforts, OC San will continue to reach out to elected officials through facility tours, one-on-one meetings, and trips to Washington D.C. and Sacramento. RAMIFICATIONS OF NOT TAKING ACTION Orange County Sanitation District Page 1 of 3 Printed on 6/2/2025 powered by LegistarTM File #: 2025-4140 Agenda Date: 6/11/2025 Agenda Item No: 6. If OC San does not work with Local, State, and Federal elected officials, legislation could be passed that negatively affects OC San and the wastewater industry. Additionally, a lack of engagement may result in missed funding opportunities. /_111Ilk I[67ki/_11111V1MOULTi/_N11[67611 Activities in May: WIPPES Act Letter On May 1, a letter of support for the Federal Wastewater Infrastructure Pollution Prevention and Environmental Safety (WIPPES) Act (H.R. 2269) was issued. The bill proposes to create a uniform federal "Do Not Flush" labeling requirements for non-flushable wipes packaging. This proposed bill mirrors California's wipes labeling law and is supported by the California Association of Sanitation Agencies and its membership. On Wednesday, May 21 the Senate Committee on Commerce, Science, and Transportation favorably reported out S 1092, WIPPES Act, as amended, by voice vote. The bill now goes to the Senate Floor for consideration and a vote. The House bill, HR 2269, is awaiting floor consideration. Senate Bill (SB) 496 - Clean Fleets On May 7, OC San submitted a letter of support for SB 496 to Senator Hurtado. This bill would create an Advanced Clean Fleets Appeals Advisory Committee, ensure disaster service workers are able to effectively respond to emergency situations, and provide needed and common-sense reforms for compliance. Cap and Trade Funding Request On May 8, OC San submitted a letter to Senator Limon and Assembly Member Irwin to request the inclusion of biosolids management in the Cap -and -Trade Expenditure Plan. The letter included a request for a $100 million discretionary allocation to support the development and deployment of innovative biosolids treatment technologies across the state. California Association of Sanitation Agencies (CASA) State Legislative Committee Meeting On Friday, May 16 OC San staff and our State lobbyist attended the virtual CASA State Legislative Committee Meeting where topics discussed included bill updates, the current State budget, per- and polyfluoroalkyl substances (PFAS) bills, and proposed legislation related to environmental concerns. Local Lobbyist During the month of May, Whittingham Public Affairs Advisors (WPAA) OC San's Local Lobbyist has continued to monitor the various City Council agendas of each of OC San's member agencies and highlighted issues and items of relevance to OC San. Activities for June: Federal Advocacy Days Planning is underway for the Federal Advocacy Days in Washington, D.C. Board Chairman Gallagher, General Manager Thompson and our advocacy team are actively preparing for a scheduled trip on July 15-17. Throughout June, we'll be focused on finalizing meeting schedules, developing key messaging, and coordinating logistics to ensure a successful and productive trip. Orange County Sanitation District Page 2 of 3 Printed on 6/2/2025 powered by LegistarTM File #: 2025-4140 Agenda Date: 6/11/2025 Agenda Item No: 6. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Federal Legislative Update • Federal Matrix • State Legislative Update • State Matrix • Local Legislative Update • H.R. 2269, WIPPES Act - Letter of Support • SB 496 (Hurtado) - Letter of Support • Cap -and -Trade Funding Request • Presentation Orange County Sanitation District Page 3 of 3 Printed on 6/2/2025 powered by LegistarTM ■' 1 M LLl ♦V RESOURCES TO: Rebecca Long FROM: Eric Sapirstein DATE: May 22, 2025 SUBJECT: May Washington Update Since the last federal update, Congress has continued to target development of a final budget reconciliation with implications for federal program spending over the next ten years. The U.S. Environmental Protection Agency (USEPA) continued to address regulation of "forever chemicals" with USEPA Administrator Lee Zeldin issuing a series of policy priorities that are generally in alignment with the past Administration's positions. However, Zeldin's priorities are notable for the acknowledgement that water sector's liability, attributable to the agency's designation of per- and polyfluoroalkyl (PFAS) as hazardous substances under Superfund, demands the development of a new liability standard to protect the sector. Lastly, the Administration transmitted to Congress a fiscal year (FY) 2026 budget request that is certain to generate bipartisan push back its request to eliminate funding for USEPA's clean water infrastructure assistance program. The following details a number of issues of interest to OC San. Budget Reconciliation Emerges But Reveals Divisions Each of the House committees with jurisdiction of program spending authorization and tax policies succeeded in approving, along party lines, recommendations to govern spending and tax cuts for the next decade. These actions and decisions do not impact the wastewater sector, as the policies do not target spending levels for programs that support water infrastructure, like the State Revolving Loan Fund (SRF). Overall, the combined budget recommendations would cut federal program spending by more than a trillion dollars and retain the 2017 tax cuts into perpetuity. The next step in the process involves packaging the various elements of the committees' recommendations into a formal enforceable budget reconciliation measure that the president would sign into law. This is the purview of the Budget Committees in both chambers. Procedurally, the House acts first, and the Senate follows. The House Committee on the Budget passed the bill along a party -line vote of 17-16. Floor debate and a vote on the bill has yet to be scheduled as of this writing. 11Page However, policy disagreements still exist among House Republicans about the bill. Specifically, some Members are seeking deeper spending cuts. Secondly, Members from high tax states (including California) have insisted that the State and Local Tax (SALT) deduction be increased and demanded an increase of at least $60,000 annually (the current level is $10,000). Absent this increased level, these Members (including Rep. Young Kim) have indicated that they are unable to vote for any measure on the floor. Other disagreements exist, notably impacts to Medicaid assistance availability. As of this writing, it remains an open question as to whether House leadership will be able to appease these concerns and secure enough support to pass the bill on the House Floor. Importance of Budget Debate For OC San, the importance of the ongoing budget debate is found in the fact that depending upon how final spending cuts are determined, it could, ultimately, force federal programs of importance to water quality to be reduced from existing spending levels. This is because any overall budget limits that Congress passes in a final reconciliation measure will dictate how much spending the Committees on Appropriations will have to allocate to individual programs. Fiscal Year 2026 Appropriations Process Jump Started with White House Budget Request On May 1, the White House transmitted its Fiscal Year 2026 budget request. The budget, referred to as a "Skinny Budget" because of its limited details, which is customary for a new Administration's first budget, is notable because of the overall philosophy guiding policy. The budget request rests on a fundamental notion that many of the domestic programs are best left for the states to fund and manage. To this end, USEPA's State Revolving Loan Fund and Categorical Grants are terminated. The justification for this is the programs have outlived their purposes or are not federal responsibilities. The congressional reception to the Skinny Budget has been chilly. USEPA Administrator Zeldin testifying before the House and Senate Committees on Appropriations received bipartisan comments from leadership that requested programs' funding levels were unacceptable. Aside from statements in support of a robust federal partnership with the states and local communities, Members also expressed skepticism as to whether the agency would have the necessary qualified staff to manage its responsibilities given the reductions in workforce. Importance of Congressional Budget Review As Congress works to finalize a budget reconciliation package that will guide overall spending, the committees that must comply with any spending ceilings appear prepared to support funding of critical infrastructure funding programs at USEPA and most likely other agencies. These committees must also determine funding levels for agency staffing levels. Concerns over the past months' voluntary retirements, probationary firings and imminent reductions 2 1 P a g e in force may create new tensions between Congress and the Administration over the composition of any final Fiscal Year 2026 spending bills that might prevent a final budget being enacted by October 1. This could, again, end in a year -long spending bill that would limit how federal programs would be implemented. NPDES Permitting Reforms Legislation Introduced In a recent House Committee on Transportation & Infrastructure hearing, witnesses discussed the importance of speeding up project construction under the Clean Water Act, while reducing bureaucratic delays. Representative John Garamendi (D-CA) announced a bipartisan bill that would allow states to issue 10-year National Pollutant Discharge Elimination System (NPDES) permits to clean water agencies. After the hearing, Representatives Ken Calvert (R-CA), Garamendi, and David Rouzer (R-NC) introduced H.R. 2093, which includes provisions from last year's House -passed Confidence in Clean Water Permitting Act. This bill would help wastewater, water recycling, and desalination projects. The Senate Committee on Environment and Public Works also recently held a hearing on permitting issues, where all witnesses agreed that reforms are needed. Committee members, from both parties, pointed out that the current federal permitting process is too slow and costly, without benefiting the environment. As a result, committee staff are considering broad reforms to energy and environmental permitting in the coming months, including discussions about 10-year NPDES permit terms Importance of Ten -Year Permits Legislation The 119th Congress and the Administration have placed priority on permitting reforms. As a result, the environment to authorize ten-year NPDES permit terms has become more receptive than in past years. If reforms are passed, a bill would likely be signed into law. If enacted into law, water sector agencies would realize reduced administrative red tape associated with Clean Water Act to permit renewals and deliver efficiencies in complying with the Clean Water Act. 'Do Not Flush' Legislation Advances in the Senate Following last month's House committee action approving the WIPPES Act (H.R. 2269), floor action is likely within the next several weeks. As the bill passed the House last Congress, it is hoped that floor action on H.R. 2269 will be pro forma with little if any complications for passage. In the Senate, a major advancement of the Senate version of the WIPPES bill, S. 1092, is slated for mark-up on May 21. Assuming the Senate Committee on Commerce approves the legislation on a bipartisan basis, it should lead to Senate floor debate and a vote. Once this happens, and the House passes its bill, a conference committee will be scheduled between the two chambers to reconcile any differences, if such differences exist. Importance of Senate Action on WIPPES Act 3 1 P a g e Senate committee consideration and approval of the legislation would remove a major hurdle for passage of the bill. The limited calendar during the past Congress precluded Senate committee action. The decision to move forward on the bill early in this Congress suggests that final congressional action on the WIPPES Act is highly probable. Regardless of the contours of any final agreement, it appears the legislation would establish a federal standard requiring manufacturers to label such products with a 'Do Not Flush' warning, aligning with California's state law. USEPA Administrator Details Priorities To Address PFAS Chemicals USEPA Administrator Zeldin released an extensive policy statement on how he expects the agency to proceed on developing policies and rules surrounding the management of PFAS and successor chemicals. Uppermost in his position is the priority to rely upon science and real time data to help make decisions. The outline of the Administrator's priorities track the agency's earlier PFAS policies, but with some notable policy shifts. The Administrator emphasizes that one official will be tasked with managing the agency's PFAS agenda. This should enhance coordination and transparency in PFAS policy and rule development. He also highlighted the importance attached to addressing "passive receiver" liability under Superfund for PFAS. The Administrator cited his interest in working with industry stakeholders and Congress to develop a liability regime that protects passive receivers like the wastewater sector. In addition, the Administrator affirmed his desire to finalize a risk assessment model for biosolids, impose effluent limitation guidelines on metal finishers and manufacturers and users of PFAS to protect against discharges, require real time monitoring of PFAS presence, and rely upon the Clean Air, Safe Drinking Water, Clean Water, Solid Waste Management and Toxic Substances Control Acts to address PFAS. Importance of Administrator Position The Administrator's announced PFAS priorities carries important weight and supports OC San's interests. Congress is preparing to address PFAS policy issues, including liability and treatment needs. Zeldin's public statements on a desire to work with stakeholders on liability means that a key policymaker is on the record in support of the development of an approach to protect innocent parties that currently face potential liability because of USEPA's hazardous substance designation under Superfund. Additionally, the priority to update acceptable management practices for biosolids on an annual basis, instead of the current three year schedule, should enhance the development and acceptability of new management technologies. This along with the priority to finalize a validated risk assessment model for biosolids and land application should support the use of accepted management approaches. Overall, the Administrator's stated priorities signal a renewed commitment to rely upon science and validated research in setting standards for PFAS. 41Page QC6SANTRIQT Federal Legislative Report - May 2025 US HR 2269 & Support Title: WIPPES Act Current Status: In House Introduction Date: 2025-03-21 Summary: H.R. 2269 would direct the Federal Trade Commission to estabilsh federal "Do Not Flush" labeling requirements for nonflushable wet wipes packaging. The labeling requirements would be enacted one year after the bill's enactment. The bill mirrors California's state labeling law and is supported by clean water, industry, environmental advocates, and civil engineer stakeholders. Senate companion legislation is S.1092. Location: United States US HR 1265 Title: To amend the Save Our Seas 2.0 Act to expand eligibility for certain wastewater infrastructure grants, and for other purposes. Current Status: In House Introduction Date: 2025-02-12 Summary: H.R.1265 aims to expand eligibility for certain wastewater infrastructure grants under the Save Our Seas 2.0 Act12. This expansion would allow communities and projects to qualify for Federal funding, which can be used to improve and modernize wastewater treatment Facilities. By increasing access to these grants, the bill seeks to enhance the capacity of wastewater management systems to handle pollutants, reduce environmental impacts, and support public health. This could lead to more efficient and effective wastewater treatment processes, ultimately contributing to cleaner waterways and a healthier environment. Location: United States US HR 2344 Title: Water ISAC Threat Protection Act Current Status: In House Introduction Date: 2025-03-25 1 of 4 Summary: Would establish a program to enhance the preparedness and resilience of drinking water and wastewater systems against various threats. The bill's primary focus is on safeguarding these critical utilities from risks such as natural disasters, cyberattacks, and other vulnerabilities that could disrupt essential water services. Introduced by Rep. Jan Schakowsky (D-IL). Location: United States USS1118 Title: Water Intelligence, Security, and Cyber Threat Protection Act of 2025 Current Status: In Senate Introduction Date: 2025-03-25 Summary: S.1118 would provide funding and additional access for clean water and wastewater utilities to become members of the Water Information Sharing and Analysis Center (WaterISAC). The WaterISAC is a critical source of information and best practices for water systems to protect against, mitigate, and respond to threats. House Companion bill H.R. 2344. Endorsed by American Water Works Association, Association of Metropolitan Water Agencies, National Association of Clean Water Agencies, National Association of Water Companies, and Water Environment Federation. Location: United States US S 1092 & Support Title: WIPPES Act Current Status: In Senate Introduction Date: 2025-03-24 Summary: S.1092 would direct the FederalTrade Commission to estabiish federal "Do Not Flush" labeling requirements for nonflushable wet wipes packaging. The labeling requirements would be enacted one year after the bill's enactment. The bill mirrors California's state labeling law and is supported by clean water, industry, environmental advocates, and civil engineer stakeholders. House companion legislation is HR 2269. UPDATE: S.1092 IS SLATED FOR MARK-UP BEFORE THE SENATE COMMITTEE ON COMMERCE 5/21/25 Location: United States US HR 2093 Title: To amend the Federal Water Pollution Control Act with respect to permitting terms, and for other purposes. Current Status: In House Introduction Date: 2025-03-14 2 of 4 Summary: H.R. 2093 would amend the Clean WaterAct's permitting provisions to allow for delegated states or USEPA to issue ten year National Permit Discharge Eliminate System (NPDES) permits. The bill, if enacted, would extend current terms from five years. Location: United States USS857 Title: Water Conservation Rebate Tax Parity Act Current Status: In Senate Introduction Date: 2025-03-05 Summary: Amends Federal tax law so that homeowners would not need to pay income tax when they receive rebates from water utilities for water conservation and water runoff management improvements. S. 857 - Introduced by Senator John Curtis (R-UT) HR 1871 - Companion legislation introduced by Rep. Jared Huffman (D-CA) Location: United States US HR 1285 Title: Water Infrastructure Subcontractor and Taxpayer Protection Act of 2025 Current Status: In House Introduction Date: 2025-02-13 Summary: H.R.1285 would amend the Water Infrastructure Finance and Innovation Act of 2014. The key points: Payment and Performance Security Requirements: The bill establishes new requirements for payment and performance security for projects funded under the act. Project Funding: Ensure that projects financed through the Water Infrastructure Finance and Innovation Act have adequate Financial safeguards. Location: United States US HR 1267 Title: Water Systems PFAS Liability Protection Act Current Status: In House Introduction Date: 2025-02-12 Summary: H.R.1267 is a reintroduction of last Congress' legislation to provide the water sector with explicit liability protection from liability under Superfund due to USEPA's rule to designate PFAS as a hazardous substance that could impose liability upon the water sector due to the law's strict, joint and several liability standard. Introduced by Rep. Gluesenkamp Perez (D-WA). and Rep. Maloy (R-UT). Description: Water Systems PFAS Liability Protection Act This bill exempts specified water management entities from liability under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) for releases of certain perfluoroalkyl or 3 of 4 polyfluoroalkyl substances, commonly referred to as PFAS. Specifically, the entities covered under the bill are public water systems, publicly or privately owned or operated treatment works, municipalities with a stormwater discharge permit, political subdivisions or special districts of a state that act as a wholesale water agency, and contractors performing the management or disposal activities for such entities. Under the bill, the exemption only applies if a specified entity transports, treats, disposes of, or arranges for the transport, treatment or disposal of PFAS consistent with applicable laws and during and Following the conveyance or treatment of water under Federal or state law, such as through the management or disposal of biosolids consistent with the Federal Water Pollution Control Act. Liability for damages or costs associated with the release of certain PFAS must not be precluded if an entity acted with gross negligence or willful misconduct. Location: United States 4 of 4 T%C)'WNSEND TPA MEMORANDUM To: Orange County Sanitation District From: Townsend Public Affairs Date: May 22, 2025 Subject: May 2025 Legislative Monthly Report The rapid pace of legislative activity is expected to continue through May and June, as lawmakers work toward several upcoming deadlines. The first, on May 2, was the deadline for policy committees to hear and report fiscal bills to fiscal committees. Just one week later, on May 9, policy committees reported non -fiscal bills to the Floor. By May 23, fiscal committees are required to complete their hearings and report all bills to the Floor in their respective house of origin. This leads into the first week of June, which will be reserved exclusively for Floor sessions in each house. The legislative cycle will then reach a key milestone on June 6, the deadline for bills to move to the second house for further consideration. The legislative transition from policy review to fiscal analysis aligns with the state's budget process, which intensifies in May with the release of the Governor's May Revision. This revised budget proposal offered an updated assessment of the state's fiscal outlook and evaluated the viability of funding new spending proposals included in pending legislative measures. Below is an overview of pertinent actions from the past month. State Budget Governor's May Revise On May 15, the Governor provided a presentation overview of the State's updated budget proposal. The May Revision, or "May Revise," is an update to the January budget proposal that reflects new revenue projections, economic trends, caseload updates, and evolving policy priorities. The May Revision provides the Governor with an opportunity to modify funding proposals and strategies ahead of final budget negotiations with the Legislature. By law, the State must enact a balanced budget by June 15. The 2025 May Revision responds to significant fiscal pressures and broader macroeconomic uncertainty, particularly in light of federal policy developments and inflationary pressures affecting state program costs. General Fund Outlook and Budget -Balancing Strategy The Governor's May Revision identifies a combined $12 billion deficit to close an estimated $7.5 billion shortfall in the state's Special Fund for Economic Uncertainties (SFEU), while also building that reserve to a $4.5 billion year-end balance. These adjustments are in addition to a proposed drawdown of $7.1 billion from the state's rainy -day reserve, the Budget Stabilization Account (BSA). Following these actions, total General Fund reserves for FY 2025-26 are projected to be $15.7 billion, including $11.2 billion in the BSA and $4.5 billion in the SFEU. Total state spending under the May Revision is proposed at $321.9 billion, including $226.4 billion in General Fund expenditures —down slightly from the Governor's January proposal. Key budget -balancing proposals include: • Cost Reductions: $5 billion in 2025-26 from reductions to Medi-Cal, In -Home Supportive Services, and other health and human services programs. These include an enrollment freeze for certain adult undocumented residents and limitations on program expansions. • Fund Shifts and Borrowing: $5 billion in temporary savings, including: o $1.3 billion in Proposition 35 MCO tax revenue redirected to Medi-Cal. o $3.4 billion in delayed General Fund repayment to Medi-Cal. o $550 million borrowed from other special funds, including the Unfair Competition Law Fund and Labor and Workforce Development Fund. • Cap -and -Trade Shifts: $1.5 billion in cap -and -trade revenues repurposed to support CAL FIRE operations, reducing General Fund obligations. • Trigger Reductions: $456 million in conditional cuts beginning in FY 2027-28 if revenues fall short, including: o $117 million for the expansion of California Food Assistance Program to undocumented adults 55+. o $339 million for tiered foster care rate expansions. While the May Revision balances the 2025-26 budget, projected structural deficits remain significant, with the Department of Finance forecasting annual shortfalls of $14 billion in 2026- 27, $19 billion in 2027-28, and $13 billion in 2028-29—even if all proposed corrective actions are adopted. Cap and Trade Program Details in May Revise The May Revision marks a conceptual shift from "Cap and Trade" to "Cap and Invest," with the Governor advancing a proposal to extend California's Cap and Trade program beyond 2030 and secure long-term revenue streams for high -impact climate investments. During his presentation, the Governor specifically advocated extending the program to 2045. The Governor's proposal puts a floor of $1 billion dedicated to the High -Speed Rail Project as an ongoing funding stream, a deviation from the current 25% dedicated allocation, which fluctuates based on auction revenues. As a rebate to utility customers, the newly named Cap and Invest Program would allocate $60 billion in credits to taxpayers through 2045. The Governor also proposes trailer bill language to streamline financing and construction for the Delta Conveyance Project, signaling continued interest in climate resilience, water conveyance, and wildfire mitigation. 2 As part of the extension of the program, Legislators have started gathering stakeholder feedback on the impacts of the Greenhouse Gas Reduction Fund. It is likely that some legislative priorities currently being funded through the Greenhouse Gas Reduction Fund will shift as legislators take a closer look at the revenue being generated by the program. TPA has been working with OC San staff to include innovative biosolids management funding as a part of the Cap and Trade Re - Authorization and associated Greenhouse Gas Reduction Fund expenditure plan. Senate Local Government Committee Advances Brown Act Modernization Legislation In early April, the Senate Local Government Committee, chaired by Senator Maria Elena Durazo, heard 16 bills, including two focused on modernizing the Brown Act, which governs open meetings for local legislative bodies. These measures aim to expand teleconferencing options, improving public access, particularly for vulnerable communities such as the disabled and non-English speakers. The first bill, SB 239 (Arreguin), proposes allowing local and regional non -voting advisory bodies to conduct remote meetings, provided the physical meeting location is staffed by the body or the legislative body. This measure excludes advisory bodies with oversight over sensitive matters, such as police oversight, elections, and budgets, from remote participation. During the hearing, committee members raised concerns about maintaining public access and transparency while allowing remote meetings. Questions were raised regarding effective public participation, quorum requirements, and potential impacts on decision -making when fewer members attend in person. There was also discussion on why certain advisory bodies would be excluded from remote meetings. Additionally, the requirement for staff at the in -person meeting locations raised logistical concerns, especially for bodies without dedicated staff. Overall, the committee sought a balance between flexibility for members with caregiving or disability challenges and the need to ensure public participation and transparency. Senator Arreguin accepted amendments, including a sunset provision that expires on January 1, 2030, and emphasized that the bill strikes a balance between transparency and flexibility, especially for those unable to attend in person due to caregiving, disabilities, or logistical issues. The second Brown Act bill in the hearing, SB 707 (Durazo), aims to modernize and extend key provisions of the Act, including teleconferencing, which is set to expire in 2026. SB 707 requires certain local governments to livestream meetings, offer remote public comment, provide materials in multiple languages, and implement interpretation services to promote inclusivity. Some stakeholders raised concerns about inconsistencies in the flexibility offered to different types of multi -member bodies, which could undermine transparency. According to the Author, SB 707 is seen as a collaborative effort to balance flexibility with the need for public access. The discussion in the committee hearing reflected progress made thus far but also emphasized that conversations with stakeholders will continue to address remaining concerns. Both SB 239 and SB 707 passed the Senate Local Government Committee, as amended, and will continue through the legislative process. These bills will have an impact on OC San through increased transparency requires and could be challenging to implement. However, both bills are expected to undergo additional changes in the coming weeks. 3 OC San State Bills of Interest -77:: Mir •. AB 259 Rubio [D] This bill would remove the January 1, 2026, date from the provisions of AB Passed the Assembly Watch Legislative and Regulatory ACC-OC - NYC 2449 (Rubio), thereby extending the alternative teleconferencing Currently in the Senate. Policies: Special Districts - LOCC - Support procedures that are currently in effect indefinitely. Oppose further state CASA - Support regulations that adversely CSDA - Sponsor impact special district ACWA - Support financing, operations, and administration. AB 339 Ortega [D] This bill would require the governing body of a public agency, and boards Currently in the Oppose Legislative and Regulatory ACC-OC - NYC and commissions designated by law or by the governing body of a public Assembly Appropriations Policies: Labor LOCC - Oppose agency, to give the recognized employee organization no less than 120 Committee Relations/Human CASA - Oppose days' written notice before issuing a request for proposals, request for Resources: Oppose efforts CSDA - Oppose quotes, or renewing or extending an existing contract to perform services reducing local control over ACWA - Not Favor that are within the scope of work of the job classifications represented by public employee disputes the recognized employee organization. The bill would require the notice to and imposing regulations on include specified information, including the anticipated duration of the an outside agency. contract. AB 340 Ahrens [D] This bill would also prohibit a local public agency employer, a state Currently in the Watch Legislative and Regulatory ACC-OC - NYC employer, a public school employer, a higher education employer, or the Assembly Appropriations Policies: Labor LOCC - Oppose district from questioning any employee or employee representative Committee Relations/Human CASA - NYC regarding communications made in confidence between an employee and Resources: Oppose efforts CSDA - Oppose an employee representative in connection with representation relating to reducing local control over ACWA - NYC any matter within the scope of the recognized employee organization's public employee disputes representation. and imposing regulations on an outside agency. OC San State Bills of Interest M �•. SUMMARY LATEST ACTION OC SAN OTHER POSITIONS AB 370 Carrillo [D] This bill would revise the definition of unusual circumstances as it applies Currently in the Senate Support Legislative and Regulatory ACC-OC - NYC to a state of emergency to require the state of emergency, in addition to Rules Committee Policies: Special Districts - LOCC - Support currently affecting the agency's ability to timely respond to requests as Oppose further state CASA - Support described above, to also require the state of emergency to directly affect regulations that adversely CSDA - Support the agency's ability to timely respond to requests as described above. By impact special district ACWA - NYC restricting the time period in which a local agency may respond to financing, operations, and requests, thus increasing the duties of local officials, this bill would create a administration. state -mandated local program. Current law requires each agency, within 10 days of a request for a copy of records, to determine whether the request seeks copies of disclosable public records in possession of the agency and to promptly notify the person of the determination and the reasons therefor. Current law authorizes that time limit to be extended by no more than 14 days under unusual circumstances, and defines "unusual circumstances" to include, among other things, the need to search for, collect, and appropriately examine records during a state of emergency when the state of emergency currently affects the agency's ability to timely respond to requests due to staffing shortages or closure of facilities, as provided. AB 405 Addis [D] Creates the Fashion Environmental Accountability Act of 2025 and Currently in the Watch State Priorities: Source ACC-OC - NYC requires fashion sellers, as defined, to carry out effective environmental Assembly Appropriations Control - Support legislation LOCC - NYC due diligence. Requires, by January 1, 2028, in accordance with Committee and/or regulations that CASA - Work with internationally recognized methodologies for chemical management and restrict the non -essential use Author wastewater testing, a fashion seller to require all of its significant tier 2 of microplastics and CSDA-NYC dyeing, finishing, printing, and garment washing suppliers to do all of the contaminants of emerging ACWA - NYC following: concern in any product that (a) Sample and annually report to the fashion seller on wastewater is disposed or has the chemical concentrations and water usage; potential to be introduced (b) Report on chemical inventory; and, into the sanitary sewer (c) Provide evidence that the supplier is in compliance with local chemical system. management laws. The bill empowers the Department of Toxic Substances Control to oversee compliance regarding chemicals in fashion products and sets penalties for violations. AB 430 Alanis [R] Current law provides that an emergency regulation adopted by the State Currently in the Watch Legislative and Regulatory ACC-OC - NYC Water Resources Control Board following a Governor's proclamation of a Assembly Appropriations Policies: Water Quality and LOCC - Watch state of emergency based on drought conditions, for which the board Committee Supply: Support (generally) CASA - Watch makes specified findings, may remain in effect for up to one year, as measures to increase water CSDA - Watch provided, and may be renewed if the board determines that specified supply and improve water ACWA - NYC conditions relating to precipitation are still in effect. This bill would require quality in the region, the board, before the 2nd renewal of any emergency regulation or upon its including drought relief repeal, to conduct a comprehensive economic study assessing the impacts legislations and regulations. of the regulation and would require the board to make the study publicly available on its internet website OC San State Bills of Interest AUTHORBILL SUMMARY llp��N LATEST ACTION OC SAN •.. POSITIONS AB 538 Berman [D] Current law requires certified copies of records to be available upon Currently in the Watch Legislative and Regulatory ACC-OC - NYC request by the public and sets forth a process for the public to request the Assembly Appropriations Policies: Special Districts - LOCC - Oppose records either through the awarding body or the Division of Labor Committee Oppose further state CASA - Watch Standards Enforcement. Current law makes any contractor, subcontractor, regulations that adversely CSDA - Oppose agent, or representative who neglects to comply with the requirements to impact special district ACWA - NYC keep accurate payroll records guilty of a misdemeanor. This bill would financing, operations, and require the awarding body, if a request is made by the public through the administration. awarding body and the body is not in possession of the certified records, to obtain those records from the relevant contractor and make them available to the requesting entity. The bill would authorize the Division of Labor Standards Enforcement to enforce certain penalties if a contractor fails to comply with the awarding body's request within 10 days of receipt of the notice. AB 638 C. Rodriguez [D] The Stormwater Resource Planning Act authorizes one or more public Currently in the Watch Legislative and Regulatory ACC-OC - NYC agencies to develop a stormwater resource plan that meets certain Assembly Appropriations Policies: Special Districts - LOCC - Watch standards to address the capture of stormwater, as defined, and dry Committee Oppose further state CASA - NYC weather runoff, as defined. The act requires the State Water Resources regulations that adversely CSDA - Watch Control Board, by July 1, 2016, to establish guidance for purposes of the impact special district ACWA - NYC act. This bill would require the board, by June 1, 2026, to establish financing, operations, and guidance for stormwater capture and use for the irrigation of urban public administration. lands, as defined. AB 643 Wilson [D] This bill would authorize a local jurisdiction to include organic material used Two-year bill Watch Legislative and Regulatory ACC-OC - NYC as a beneficial agricultural amendment towards its recovered organic Policies: Special Districts - LOCC - Watch waste procurement target if the material is processed at a facility Oppose further state CASA - Support in authorized by the department using specified approved technologies, and if regulations that adversely concept the material is licensed for end use as an agricultural fertilizer by the impact special district CSDA - Watch Department of Food and Agriculture. financing, operations, and ACWA - NYC administration. OC San State Bills of Interest M �•. SUMMARY LATEST ACTION OC SAN OTHER . POSITIONS AB 647 M. Gonzalez [D] This bill would require a proposed housing development containing no Two-year bill Watch Legislative and Regulatory ACC-OC - NYC more than 8 residential units that is located on a lot with an existing single- Policies: Special Districts - LOCC - Oppose family home or is zoned for 8 or fewer residential units to be considered Oppose further state CASA - NYC ministerially, without discretionary review or hearing, if the proposed regulations that adversely CSDA - NYC housing development meets certain requirements, including, among other impact special district ACWA - NYC requirements, that the proposed housing development dedicates at least financing, operations, and one residential unit to deed -restricted affordable housing to households administration. making at or below 80% of the area median income, as specified. The bill would prohibit a local agency from applying any development standard that will have the effect of physically precluding the construction of a housing development that meets those requirements, as specified, and from imposing on a housing development subject to these provisions any objective zoning standard or objective design standard that meets certain criteria, including imposing any requirement that applies to a project solely or partially on the basis that the housing development receives approval pursuant to these provisions. AB 794 Gabriel [D] The California Safe Drinking Water Act requires the State Water Currently in the Watch State Priorities: ACC-OC - NYC Resources Control Board to administer provisions relating to the regulation Assembly Appropriations Contaminants of Emerging LOCC - Oppose of drinking water to protect public health. The state board's duties include, Committee Concern - Support Unless Amended but are not limited to, enforcing the federal Safe Drinking Water Act legislation that will eliminate CASA - Oppose (federal act) and adopting and enforcing regulations. Current law non -essential PFAS uses to CSDA - Watch authorizes the state board to adopt as an emergency regulation, a reduce and mitigate PFAS in ACWA - Oppose regulation that is not more stringent than, and is not materially different in everyday consumer goods. Unless Amended substance and effect than, the requirements of a regulation promulgated under the federal act, with a specified exception. This bill would provide that the authority of the state board to adopt an emergency regulation pursuant to these provisions includes the authority to adopt requirements of a specified federal regulation that was in effect on January 19, 2025, regardless of whether the requirements were repealed or amended to be less stringent. The bill would prohibit an emergency regulation adopted pursuant to these provisions from implementing less stringent drinking water standards, as provided, and would authorize the regulation to include requirements that are more stringent than the requirements of the federal regulation. OC San State Bills of Interest AUTHORSUMMARY LATEST ACTION OC SAN •. POSITIONS AB 810 Irwin [D] Current law requires that a local agency that maintains an internet website Currently in the Watch Legislative and Regulatory ACC-OC - NYC for use by the public to ensure that the internet website uses a ".gov" top- Assembly Appropriations Policies: Special Districts - LOCC - Watch level domain or a ".ca.gov" second -level domain no later than January 1, Committee Oppose further state CASA - Watch 2029. Current law requires that a local agency that maintains public email regulations that adversely CSDA - Oppose addresses to ensure that each email address provided to its employees impact special district ACWA - Not Favor uses a ".gov" domain name or a ".ca.gov" domain name no later than financing, operations, and January 1, 2029. Current law defines "local agency" for these purposes as administration. a city, county, or city and county. This bill would recast these provisions by instead requiring a city, county, or city and county to comply with the above - described domain requirements and by deleting the term "local agency' from the above -described provisions. The bill would also require a special district, joint powers authority, or other political subdivision to comply with similar domain requirements no later than January 1, 2031. AB 818 Avila-Farias [D] This bill would prohibit, during the period of a local emergency, a local Currently on the Watch Legislative and Regulatory ACC-OC - NYC agency from denying an application for a permit necessary to rebuild or Assembly Floor Policies: Special Districts - LOCC - NYC repair a residential property affected by a natural disaster unless the permit Oppose further state CASA - Oppose would result in the property being deemed a substandard building. The bill regulations that adversely Unless Amended would require the local agency to approve or disapprove that application impact special district CSDA - Watch within 45 days of receipt of the application, and would require other financing, operations, and ACWA - NYC expedited approvals. administration. AB 823 Boerner [D] The Plastic Microbeads Nuisance Prevention Law prohibits a person, as Currently in the Watch State Priorities: Source ACC-OC - NYC defined, from selling or offering for promotional purposes in this state a Assembly Appropriations Control - Support legislation LOCC - Watch personal care product containing plastic microbeads that are used to Committee and/or regulations that CASA - Support exfoliate or cleanse in a rinse -off product, including, but not limited to, restrict the non -essential use CSDA - NYC toothpaste. Current law exempts a product containing less than one part of microplastics and ACWA - NYC per million (ppm) by weight of plastic microbeads from the prohibition. The contaminants of emerging Plastic Microbeads Nuisance Prevention Law imposes a civil penalty not to concern in any product that exceed $2,500 per day for each violation of the prohibition, as provided, is disposed or has the and authorizes the Attorney General and local officials to enforce the potential to be introduced prohibition. This bill would, on and after January 1, 2029, prohibit a person into the sanitary sewer from selling, offering for sale, distributing, or offering for promotional system. purposes in this state a cleaning product, as defined, or a personal care product in a non -rinse -off product, containing one ppm or more by weight of plastic microbeads that are used as an abrasive, as specified. OC San State Bills of Interest BILL AU M E•. SUMMARY LATEST ACTION OC SAN OTHER . POSITIONS AB 872 Rubio [D] Current law, known as the Green Chemistry program, requires the Two-year bill Watch State Priorities: Source ACC-OC - NYC Department of Toxic Substances Control to adopt regulations to establish a Control - Support legislation LOCC - Watch process to identify and prioritize chemicals or chemical ingredients in and/or regulations that CASA - Oppose consumer products that may be considered as being chemicals of concern. restrict the non -essential use CSDA - NYC Current law requires the regulations to include criteria by which chemicals of microplastics and ACWA - NYC and their alternatives may be evaluated by the department, as provided. contaminants of emerging Current law requires the department, following the completion of an concern in any product that alternatives analysis, to provide a regulatory response that may include, is disposed or has the but is not limited to, not requiring any action and restricting or prohibiting potential to be introduced the use of the chemical of concern in the consumer product. This bill into the sanitary sewer would, beginning January 1, 2028, prohibit a person from distributing, system. selling, or offering for sale a covered product, as defined, that contains intentionally added PFAS, as defined, unless the department has issued a regulatory response for the covered product pursuant to the Green Chemistry program or the prohibition is preempted by federal law. AB 874 Avila Farias This bill would require a local agency to waive fees or charges that are Two-year bill Watch Legislative and Regulatory ACC-OC - NYC collected by a local agency to fund the construction of public improvements Policies: Special Districts - LOCC - NYC or facilities for residential developments subject to a regulatory agreement Oppose further state CASA - Oppose with a public entity, as provided, that includes certain income and regulations that adversely Unless Amended affordability requirements. impact special district CSDA - Oppose financing, operations, and ACWA - Oppose administration. Unless Amended SB 31 McNerney [D] The Water Recycling Law generally provides for the use of recycled water. Currently in the Senate Watch Legislative and Regulatory ACC-OC - NYC Existing law requires any person who, without regard to intent or Appropriations Policies: Special Districts - LOCC - Support negligence, causes or permits an unauthorized discharge of 50,000 gallons Committee Oppose further state CASA - Support or more of recycled water in or on any waters of the state to immediately regulations that adversely CSDA - Support notify the appropriate regional water board. This bill would, for the impact special district ACWA - Favor purposes of the above provision, redefine "recycled water" and provide that financing, operations, and water discharged from a decorative body of water during storm events is administration. not to be considered an unauthorized discharge if recycled water was used to restore levels due to evaporation. OC San State Bills of Interest AUTHORBILL SUMMARY LATEST ACTION OC SAN •.. POSITIONS SB 72 Caballero [D] This bill would revise and recast certain provisions regarding The California Currently in the Senate Watch Legislative and Regulatory ACC-OC - NYC Water Plan to, among other things, require the department to expand the Appropriations Policies: Special Districts - LOCC - Support membership of the advisory committee to include, among others, tribes, Committee Oppose further state CASA - Support labor, and environmental justice interests. The bill would require the regulations that adversely CSDA - Support department, as part of the 2033 update to the plan, to update the interim impact special district ACWA - Support planning target for 2050, as provided. The bill would require the target to financing, operations, and consider the identified and future water needs for all beneficial uses, administration. including, but not limited to, urban uses, agricultural uses, tribal uses, and the environment, and ensure safe drinking water for all Californians, among other things. The bill would require the plan to include specified components, including a discussion of the estimated costs, benefits, and impacts of any project type or action that is recommended by the department within the plan that could help achieve the water supply targets. SB 239 Arreguin [D] Current law, until January 1, 2026, authorizes specified neighborhood city Currently on the Senate Watch Legislative and Regulatory ACC-OC - NYC councils to use alternate teleconferencing provisions related to notice, Floor Policies: Special Districts - LOCC - Sponsor agenda, and public participation, as prescribed, if, among other Oppose further state CASA - NYC requirements, the city council has adopted an authorizing resolution and regulations that adversely CSDA - Support 2/3 of the neighborhood city council votes to use alternate teleconference impact special district ACWA - Favor provisions, as specified. This bill would authorize a subsidiary body, as financing, operations, and defined, to use alternative teleconferencing provisions and would impose administration. requirements for notice, agenda, and public participation, as prescribed. The bill would require the subsidiary body to post the agenda at the primary physical meeting location. The bill would require the members of the subsidiary body to visibly appear on camera during the open portion of a meeting that is publicly accessible via the internet or other online platform, as specified. OC San State Bills of Interest M SUMMARY I•. LATEST ACTION OC SAN OTHER . POSITIONS SIB 317 Hurtado [D] Would require the State Department of Public Health, in consultation with Currently in the Senate Support Legislative and Regulatory ACC-OC - NYC participating wastewater treatment facilities, local health departments, and Appropriations Policies: Public Health - LOCC - Watch other subject matter experts, to maintain the Cal-SuWers network of Committee Support (generally) CASA - Support in monitoring programs to test for pathogens, toxins, and other public health measures that provide for Concept indicators in wastewater. The bill would require participation in the Cal- improved public health CSDA - Watch SuWers network from local health departments and wastewater treatment through regulation. ACWA - NYC facilities to be voluntary. The bill would authorize the department to coordinate with health care providers, local health departments, and emergency response agencies through the regional public health office to ensure wastewater surveillance data is used for early intervention, outbreak response, epidemiological investigations, and public health planning. The bill would authorize the department to communicate to the general public, through a publicly accessible internet website, as specified, to provide transparency and public awareness of wastewater -based disease monitoring. The bill would authorize the department to utilize external funding sources, in addition to the department's existing, noncontinuously appropriated funding sources, to implement these provisions. The bill would make related findings and declarations. SB 318 Becker [D] Existing law designates the State Air Resources Board as responsible for Currently in the Senate Watch Legislative and Regulatory ACC-OC - NYC controlling vehicular air pollution, while air pollution from non -vehicular Appropriations Policies: Air Quality - LOCC - NYC sources is managed by air pollution control districts. Air districts can Committee Monitor legislative and CASA - Watch require permits to construct or operate equipment emitting air regulatory developments in CSDA - Watch contaminants, with certain exceptions. Under the Clean Air Act, new or response to State's goal of ACWA - NYC modified major sources must use best available control technology for achieving Carbon Neutrality emissions. This bill defines "best available control technology" for these including the Advanced purposes and establishes a process for evaluating permits. It requires the Clean Fleets and the Zero - executive officer of the state board to review permits for Title V sources Emission Forklift Fleets and object if they do not comply with the Clean Air Act. The bill also regulations pertaining to the requires a technical feasibility analysis for certain renewal permits and electrification of engine - allows for more stringent measures than those proposed by applicants. driven equipment and fleets. The bill revises the precertification program by updating criteria every eight years and expanding it to include various types of equipment and processes. It allows for temporary employee assignments to leverage expertise and invites other regulatory agencies to join the expansion of the precertification program. OC San State Bills of Interest BILL SUMMARY LATEST ACTION OC SAN OTHER A� •. . POSITIONS SB 454 McNerney [D] This bill would create the PFAS Mitigation Fund in the State Treasury and Currently in the Senate Watch State Priorities: ACC-OC - NYC would authorize certain moneys in the fund to be expended by the state Appropriations Contaminants of Emerging LOCC - Sponsor board, upon appropriation by the Legislature, for specified purposes. The Committee Concern - Support CASA - Support bill would authorize the state board to seek out and deposit nonstate, legislation that will eliminate CSDA - Support federal, and private funds, require those funds to be deposited into the non -essential PFAS uses to ACWA - Sponsor PFAS Mitigation Fund, and continuously appropriate the nonstate, federal, reduce and mitigate PFAS in and private funds in the fund to the state board for specified purposes, everyday consumer goods. thereby making an appropriation. The bill would authorize the state board to establish accounts within the PFAS Mitigation Fund. The bill would authorize the state board to expend moneys from the fund in the form of a grant, loan, or contract, or to provide assistance services to water suppliers and sewer system providers, as those terms are defined, for multiple purposes, including, among other things, to cover or reduce the costs for water suppliers associated with treating drinking water to meet the applicable state and federal maximum perfluoroalkyl and polyfluoroalkyl substances (PFAS) contaminant levels. SB 496 Hurtado [D] Current law requires the State Air Resources Board to manage vehicle Currently in the Senate Support Legislative and Regulatory ACC-OC - NYC emissions and fuel standards to control air pollution effectively, ensuring Appropriations Policies: Air Quality - LOCC - Sponsor they are feasible and cost-effective. The California Global Warming Committee Monitor legislative and CASA - Watch Solutions Act of 2006 designates this board to regulate greenhouse gas regulatory developments in CSDA - Sponsor emissions. Under this authority, the board implemented the Advanced response to State's goal of ACWA - NYC Clean Fleets Regulation, mandating that government and high -priority achieving Carbon Neutrality fleets transition to zero -emission vehicles, with some exemptions including the Advanced permitted. This bill proposes the establishment of an Appeals Advisory Clean Fleets and the Zero - Committee to review denied exemption requests. This committee, Emission Forklift Fleets comprising specified government and non -government representatives, regulations pertaining to the must meet monthly, with meetings recorded and accessible online. They electrification of engine - must review appeals and provide recommendations within 60 days, which driven equipment and fleets. the board must consider publicly within another 60 days. Certain vehicles involved in emergency responses would be exempt from the regulations, and fleet owners will not be pressured to produce zero -emissions vehicle purchase agreements to delay transitioning mandates. OC San State Bills of Interest BILL AU 1901 SUMMARY LATEST ACTION OC SAN OTHER POSITION POSITIONS SB 595 Choi [R] Existing law regulates how local agencies can invest public funds in Currently in the Senate Watch Legislative and Regulatory ACC-OC - NYC specific securities and financial instruments, subject to certain conditions. Appropriations Policies: Special Districts - LOCC - NYC Until January 1, 2026, agencies with under $100 million in assets can Committee Oppose further state CASA - NYC invest up to 25% in eligible commercial paper, while those with $100 regulations that adversely CSDA - Watch million or more can invest up to 40%. Starting in 2026, this changes to a impact special district ACWA - NYC uniform 25% limit, regardless of asset size. This bill would extend the financing, operations, and current distinction until January 1, 2031, postponing the universal limit administration. change to that date. Additionally, the bill extends until 2031 the authority for agencies to invest in certain U.S. government securities that might accrue zero interest if held to maturity. Regarding financial reporting, the law requires the Controller to publish annual financial and compensation reports for all counties, cities, and school districts. Currently, if a local agency fails to submit these reports within 20 days after notification, they must pay a penalty based on revenue. This bill changes the deadline to 10 months after the fiscal year's end and mandates the Controller to assess whether machine-readable audited financial statements can replace traditional reports. The Controller must report to the Legislature on this by December 31, 2026. SB 601 Allen [D] The bill proposes changes to existing water quality control laws in Currently in the Senate Watch Legislative and Regulatory ACC-OC - NYC California. It modifies requirements for businesses involved in regulated Appropriations Policies: Special Districts - LOCC - Oppose industries to demonstrate compliance with water quality permit programs Committee Oppose further state CASA - Oppose when applying for permits. It extends the requirement to include regulations that adversely CSDA - Oppose businesses seeking construction permits for activities disturbing over one impact special district ACWA - Oppose acre of land, with specific information such as planned disturbed acreage financing, operations, and and identification numbers needed. Additionally, the bill permits the State administration. Water Resources Control Board to adopt water quality control plans for all state waters, termed "nexus waters" (non -navigable waters), aligning them with federal Clean Water Act standards. The bill mandates that state's water quality control standards incorporate nexus waters in federal compliance processes, and reiterates state policies for managing proposed discharge activities. It specifies financial penalties for violating waste discharge requirements, adjusting annually from 2026, with funds directed towards the State Water Pollution Cleanup and Abatement Account. OC San State Bills of Interest AUTHORBILL SUMMARY LATEST ACTION OC SAN •.. POSITIONS SB 682 Allen [D] Current law requires the Department of Toxic Substances Control, on or Currently in the Senate Support State Priorities: ACC-OC - NYC before January 1, 2029, to adopt regulations to enforce specified covered Appropriations Contaminants of Emerging LOCC - Support perfluoroalkyl and polyfluoroalkyl substances (PFAS) restrictions, which Committee Concern - Support CASA - Sponsor include prohibitions on the distribution, sale, or offering for sale of certain legislation that will eliminate CSDA - Support products that contain specified levels of PFAS. Current law requires the non -essential PFAS uses to ACWA - Favor department, on and after July 1, 2030, to enforce and ensure compliance reduce and mitigate PFAS in with those provisions and regulations, as provided. This bill would, on and everyday consumer goods. after January 1, 2027, prohibit a person from distributing, selling, or offering for sale a covered product that contain intentionally added PFAS, as defined, except for previously used products and as otherwise preempted by federal law. The bill would define "covered product" to include cleaning products, cookware, dental floss, juvenile products, food packaging, and ski wax, as specified. SB 707 Durazo [D] The Ralph M. Brown Act requires, with specified exceptions, that all Currently on the Senate Watch Legislative and Regulatory ACC-OC - NYC meetings of a legislative body, as defined, of a local agency be open and Floor Policies: Special Districts - LOCC - Concerns public and that all persons be permitted to attend and participate. This bill Oppose further state CASA - Watch would, until January 1, 2030, require a city council or a county board of regulations that adversely CSDA - Oppose supervisors to comply with additional meeting requirements, including that impact special district Unless Amended all open and public meetings include an opportunity for members of the financing, operations, and ACWA - NYC public to attend via a 2-way telephonic service or a 2-way audiovisual administration. platform, as defined, that a system is in place for requesting and receiving interpretation services for public meetings, as specified, and that the city council or county board of supervisors encourage residents to participate in public meetings, as specified. For special districts, this bill will require agenda translation for all languages spoken by 20 percent of the residents of the county, as well as interpretation services for public meetings. SB 740 Rubio [D] Current law authorizes a municipal wastewater agency to enter into Two-year bill Watch Legislative and Regulatory ACC-OC - NYC agreements with entities responsible for stormwater management, Policies: Special Districts - LOCC - Watch including, but not limited to, municipal, industrial, and commercial Oppose further state CASA - NYC stormwater dischargers, for the purpose of managing stormwater and dry regulations that adversely CSDA - Watch weather runoff. Current law requires a municipal wastewater agency, if the impact special district ACWA - NYC agency enters into a new agreement or amends an agreement pursuant to financing, operations, and those provisions, to file a copy of the agreement or amendment with the administration. local agency formation commission in each county where any part of the municipal wastewater agency's territory is located within 30 days after the effective date of the new agreement or amendment. This bill would extend that filing requirement timeline to 40 days. Legend: ACC-OC - Association of California Cities, Orange County LOCC - League of California Cities NYC - Not Yet Considered CASA - California Association of Sanitation Agencies ACWA - Association of California Water Agencies CSDA - California Special Districts Association PUBLI C AFFAI R S ADVI SO R S TO: Orange County Sanitation District (OC San) FROM: Whittingham Public Affairs Advisors DATE: May 22, 2025 SUBJECT: May Local Legislative Report Following is a few of the more notable developments and issues that have transpired in Orange County over the last several weeks: • Public relations consultant Betty Martinez -Franco was sworn in to represent the residents of the 5th District on the Irvine City Council. This position had been vacant since Councilmember Larry Agran was elected Mayor last November. • A majority of the Costa Mesa City Council voted to terminate the contract of City Manager Lori Ann Farrell Harrison, who had served in that capacity since 2019. In addition to Costa Mesa, the cities of La Palma, Orange, and Placentia are also currently in the process of identifying and selecting a new City Manager. • The Anaheim Chamber of Commerce, which first opened its doors in 1895, had announced mid -April that it would be officially terminating its operations at the end of the month. However, a new interim President & CEO, along with new leadership of the Board of Directors, have been identified to enable the Chamber to continue its business advocacy in the city while discontinuing any political activity or fundraising. The changes come roughly three years after the Chamber's former CEO pleaded guilty to federal criminal charges. • The County of Orange has deferred for a year proposed increases to waste disposal rates at County landfills after cities and sanitary districts strongly opposed raising "tipping" fees by more than 92 percent. While hikes were initially set to hit this year, city leaders and the county agreed to a new, one-year extension with just a 2.6 percent increase that would give them until June 2026 to work out a long- term plan. City councils across the county have considered and approved the extension and increase over the past few weeks. 11Page • The Stanton City Council voted to direct its staff to research the potential of the City joining the Orange County Power Authority (OCPA), the Community Choice Aggregation (CCE) provider of electricity to residents and business in the cities of Irvine, Buena Park, Fullerton, and the CCE's newest member, Fountain Valley. The OCPA Board also voted to reduce the amount of renewable energy it purchases due to rising energy costs, with member cities lowering the default offering levels. As part of our scope of work, Whittingham Public Affairs Advisors has continued to monitor the various City Council agendas of each of OC San's members and highlighted issues and items of relevance. We also continue to monitor activities at the South Coast Air Quality Management District and South Orange County Wastewater Authority. It is a pleasure to work with you and to represent the Orange County Sanitation District. Sincerely, Peter Whittingham 2 18480 Bandilier Circle OC6SA Fountain Valley, CA c92708 le 714.962.2411 ORANGE COUNTY SANITATION DISTRICT www.ocsan.gov May 1, 2025 The Honorable Lou Correa U.S. House of Representatives Washington, D.C. 20515 RE: H.R. 2269, WIPPES Act Support — Orange County Sanitation District Serving: Anaheim Brea Buena Park Cypress Fountain Valley Fullerton Dear Congressman Lou Correa: Garden Grove On behalf of the Orange County Sanitation District (OC San), I write to express our strong support for the bipartisan Wastewater Infrastructure Huntington Beach Pollution Prevention and Environmental Safety (WIPPES) Act (H.R. 2269). Irvine This important legislation would establish uniform federal "Do Not Flush" La Habra labeling requirements for non-flushable wipes packaging —mirroring California's successful law —and was favorably reported by the House La Palma Committee on Energy and Commerce in April. We respectfully urge you to Los Alamitos support H.R. 2269 and vote in favor of it when it comes to the House Floor Newport Beach for consideration. Orange Every day, clean water utilities like OC San confront the growing challenge caused by improperly flushed non-flushable wipes. Despite being marketed Placentia for a variety of purposes, these products are not engineered for sewer Santa Ana systems. When flushed, they can clog pipes, damage critical treatment Seal Beach equipment, burden operations, and lead to costly maintenance and environmental harm through sewer overflows. These impacts are felt not Stanton only by utilities but by the communities we serve. Tustin The WIPPES Act offers a simple, yet highly effective, source control Villa Park solution by requiring consistent, clear "Do Not Flush" labeling on non- County of orange flushable wipe products. This commonsense measure will empower consumers with the information needed to properly dispose of wipes and Costa Mesa Sanitary District protect our nation's wastewater infrastructure. It is notable that the legislation has earned broad and sustained support from diverse Midway City Sanitary District stakeholders across industry, clean water agencies, environmental organizations, and civil engineering sectors. Irvine Ranch water District Yorba Linda Water District Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. S, SAN ORANGE COUNTY SANITATION DISTRICT Page 2 of 2 Passage of the WIPPES Act will strengthen the resiliency of America's clean water infrastructure, safeguard public health, protect our environment, and save ratepayers significant costs associated with avoidable damage and repairs. OC San is proud to support H.R. 2269, and we urge you to do the same by voting in favor when it is considered on the House Floor. If you have any questions or would like additional information, please feel free to contact Jennifer Cabral, Director of Communications, at (714) 593-7581 or via email at JCabral(c ocsan.gov. Thank you for your leadership and commitment to protecting our nation's clean water resources. Sincerely, Ryan P. Gallagher Board Chairman SAN ORANGE COUNTY SANITATION DISTRICT May 7, 2025 18480 Bandilier Circle Fountain Valley, CA 92708 714.962.2411 www.00san.gov serving. The Honorable Melissa Hurtado California State Senate Anaheim 1021 O Street, Room 6510 Brea Sacramento, CA 95814 Buena Park RE: Senate Bill (SB) 496 (Hurtado) Advanced Clean Fleets. Cypress Notice of Support — Orange County Sanitation District Fountain Valley Dear Senator Hurtado, Fullerton Garden Grove I write to you today on behalf of the Orange County Sanitation District (OC San) to express my support for SB 496 (Hurtado). This bill would create an Advanced Huntington Beach Clean Fleets (ACF) Appeals Advisory Committee, ensure disaster service workers Irvine are able to effectively respond to emergency situations, and provide needed and La Habra common-sense reforms for compliance. La Palma OC San has been working diligently to reduce the carbon intensity of fleet Los Alamitos operations while ensuring that we continue to provide the many critical services Newport Beach our communities rely upon for their most essential daily needs. Orange The ACF regulation has established ambitious and often impractical compliance Placentia deadlines for fleets to transition to Zero Emission Vehicles (ZEVs). The ACF's ZEV transition requires access to adequate utility infrastructure for alternative Santa Ana fueling, such as EV charging, as well as access to ZEVs that are capable of Seal Beach providing a comprehensive range of essential and specialized services offered by Stanton fleets, many of which are vital for the health and safety of Californians. While the ACF allows fleets to seek exemptions in cases where fleets cannot meet the Tustin compliance timetables, it lacks clarity regarding the evaluation and determination Villa Park process for these exemption requests. Additionally, it does not outline a procedure for the administrative review of denied exemption requests by the California Air County of Orange Resources Board (CARB). costa Mesa Sanitary District SB 496 establishes an Appeals Advisory Committee by which local agencies may Midway City request a review of exemption request denials. Allowing a formal appeals process Sanitary District ensures transparency while protecting due process for those seeking further Irvine Ranch Water District review. Yorba Linda Water District Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. OC6SAN ORANGE COUNTY SANITATION DISTRICT Honorable Melissa Hurtado SB 496 Advanced Clean Fleets Page Two Additionally, SB 496 would update the emergency vehicle exemption, allowing those vehicles that respond to and support critical operations related to emergencies and disasters, often under difficult or harsh conditions, to continue to protect our communities. Also, SB 496 modifies the requirements of the daily usage exemption, removing barriers for the applicant to comply with the mandate. SB 496 would create much -needed improvements to the ACF while protecting the health and safety of Californians, avoid unnecessary costs detrimental to our shared long-term goals, and ensure that local agencies can continue to work diligently to decarbonize their fleet operations and comply with the ACF without being penalized for factors beyond their control. For these reasons, OC San supports SB 496. If you have any questions, please contact Jennifer Cabral, Director of Communications, at (714) 593-7581 or via email at JCabral@ocsan.gov. Sincerely, Ryan P. Gallagher Board Chairman 18480 n Valley, y, C 92 le Fountain Valley, CA 92708 OC6SAN7.4..62.2411 ORANGE COUNTY SANITATION DISTRICT www.ocsan.gov May 8, 2025 serving. The Honorable Monique Limon Anaheim CA State Senator, 21 st District Brea 1021 O Street Suite 7610 Buena Park Cypress The Honorable Jacqui Irwin CA State Assembly Member, 42nd District Fountain Valley 1021 O Street Fullerton Suite 6220 Garden Grove RE: Cap and Trade Expenditure Plan Request — Innovative Biosolids Huntington Beach Management Programs Irvine Dear Senator Limon and Assembly Member Irwin: La Habra On behalf of the Orange County Sanitation District (OC San), I am writing to La Palma respectfully request the inclusion of biosolids management as a priority strategy in Los Alamitos the Cap -and -Trade Expenditure Plan. Specifically, we would like to request a $100 million discretionary allocation to support the development and deployment of Newport Beach innovative biosolids treatment technologies across the state. This proposed Orange program and funding source can build off the success of previous programs administered by the state and reduce emissions in a more efficient and cost- Placentia effective manner. Santa Ana As California advances toward carbon neutrality and deep reductions in short-lived seal Beach climate pollutants (SLCPs), biosolids management presents a significant Stanton opportunity to meet those goals while protecting public health and advancing environmental justice. OC San is actively piloting and implementing two Tustin groundbreaking technologies that align with the priorities of the Cap -and -Trade Villa Park Program and the Greenhouse Gas Reduction Fund (GGRF): County of Orange • Supercritical Water Oxidation (SCWO) Demonstration Project Costa Mesa This emerging process uses water at elevated temperatures and pressure Sanitary District to destroy organic compounds in sludge and scum, converting them into benign elements such as carbon dioxide and water. The SCWO process Midway City Sanitary District also destroys emerging contaminants such as per- and polyfluoroalkyl substances PFAS , pharmaceuticals, and microplastics. This process has ( ) p p Irvine Ranch Water District the potential to eliminate several steps in the current wastewater solids treatment process, lowering chemical and energy consumption, and Yorba Linda Water District reducing long haul trucking of the solids removed as part of the wastewater process. OC San is currently advancing a demonstration -scale project and anticipates regional and statewide scalability. Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. �SAN ORANGE COUNTY SANITATION DISTRICT Page 2of3 • Deep Well Injection This method permanently sequesters biosolids more than 5,000 feet underground into porous geological formations beneath multiple layers of impermeable rock, at their source of generation, rather than moving them into other jurisdictions while at the same time eliminating odors and sources for groundwater and soil contamination, and road traffic. This proven technology provides a long-term, secure solution for carbon -rich materials and residuals that contain trace amounts of harmful substances. It is especially well -suited for handling materials with persistent contaminants like PFAS, microplastics, and pharmaceutical residues. Each wet ton of biosolids sequestered in this way eliminates the emissions of more than 5 tons of CO2e, thus providing enormous support to the goals of the GGRF. These two technologies provide a measurable and scalable path to reducing greenhouse gas emissions through: • Avoiding GHG emissions by eliminating landfilling or land applying of organic materials • Reducing vehicle miles traveled (VMT) by limiting long -haul biosolids transport— OC San currently transports over 500 wet tons of biosolids per day with a total of approximately 2,900,000 miles traveled annually to various composting facilities in California and/or farmlands in Arizona. Avoided trucking could reduce up to 5,500 metric tons of COze per year must for OC San. • Finding a forever home for harmful pollutants and avoiding the future emissions and health impacts associated with environmental contamination. These technologies support multiple priorities of the Cap -and -Trade Expenditure Plan, including: • Reducing GHG emissions and SLCPs • Promoting innovation in climate solutions • Advancing clean energy and sustainable waste management • Reducing VMT and local air pollution • Delivering co -benefits to public health, especially for disadvantaged communities • Supporting the principles of a circular economy OC San is committed to advancing sustainable, long-term solutions for biosolids management that are practical, cost-effective, and protective of public health and the environment. OC6SAN ORANGE COUNTY SANITATION DISTRICT Page 3 of 3 We respectfully urge the Cap -and -Trade Working Group to consider a $100 million funding allocation to create a statewide competitive grant program that will help agencies like ours implement emerging biosolids management technologies. We thank you for your continued leadership in advancing California's ambitious climate agenda and look forward to the opportunity to contribute innovative solutions that move the state closer to a more sustainable, equitable, and climate -resilient future. If you have any questions, please contact Jennifer Cabral, Director of Communications, at (714) 593-7581 or via email at JCabral(a ocsan.gov. Sincerely, Ryan P. Gallagher Board Chairman CC: Orange County Legislative Delegation Senate pro Tempore Mike McGuire Assembly Speaker Robert Rivas Cap and Trade Working Group Members: Assembly Member Cottie Petrie -Norris Assembly Member Chris Rogers Assembly Member Esmerelda Soria Assembly Member Corey Jackson Assembly Member Diane Papan Assembly Member Isaac Bryan Assembly Member Lori Wilson Assembly Member Rebecca Bauer -Kahan Assembly Member Steve Bennett Assembly Member Cecilia Aguiar-Curry Assembly Member Al Muratsuchi Assembly Member Damon Connolly Assembly Member David Alvarez Assembly Member Dawn Addis Assembly Member Rick Zbur Assembly Member Gregg Hart Assembly Member Rhodesia Ransom Senator Ben Allen Senator Henry Stern Senator Catherine Blakespear Assembly Budget Subcommittee No. 4 Senate Budget Subcommittee No. 2 06/02/2025 Legislative Priorities: Reconciliation, Fiscal Year 2026 Budget, Authorizations J.S. Environmental Protection Agency: 3er- and polyfluoroalkyl substances (PFAS) Looking Ahead Page No. 1 LEGISLATIVE PRIORITIES ❑ Reconciliation ✓ State and Local Tax (SALT) ✓ Regulation Approval ✓ Spending/Taxes ❑ Fiscal Year 2026 Appropriations ✓ White House Spending Priorities: "Cooperative Federalism" ✓Program Impacts ❑ Authorizations ❑ WIPPES (Flushable Wipes), H.R. 2269/S.1092 ❑ Permit Reform PFAS - NEXT STEPS ❑EPA Administrator PFAS Priorities Align with prior Administration but key differences: ✓ Complete Biosolids Risk Assessment Model ✓ Review Superfund Hazardous Substance Designation ✓ Conduct annual reviews of biosolids treatment technologies ✓ Issue Effluent Limitations on industry discharges ✓ Re-evaluate "hazard index" for Gen-X PFAS chemicals rulemaking 3 4 OUTLOOK ❑ Reconciliation: Find Common Ground Among House and Senate Factions ✓ House Freedom Caucus: Spending Cuts ✓ House and Seante Moderates: Medicaid ✓ Senate Conservatives: Deficits ❑ Appropriations: Avoid Government Shut -Down in October ✓ Challenge: White House budget priorities rejected by key spending leaders ■ Program consolidations/elimination ■ Reductions in Force (layoffs) ✓ Policy Riders: Lightning Rod ❑ Authorizations in solid position for House and Senate passage ANY QUESTIONS Headquarters ADMINISTRATION COMMITTEE 18480 Bandilier Circle ,SAN Fountain Valley, CA 92708 puNOE COYi/*' BRNR npw prsTACn Agenda Report 714 593 7433 File #: 2024-3837 Agenda Date: 6/11/2025 Agenda Item No: 7. FROM: Robert Thompson, General Manager Originator: Wally Ritchie, Director of Finance SUBJECT: FY 2025-26 PROPERTY - LIABILITY INSURANCE RENEWALS GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Approve the Orange County Sanitation District FY 2025-26 Property -Liability Insurance Renewals included in the FY 2025-26 Budget for the not -to -exceed amounts specified below: Property and Boiler & Machinery - Not to Exceed $3,118,944 Excess General Liability Insurance - Not to Exceed $1,429,942 Excess Workers' Compensation Insurance - Not to Exceed $ 476,000 Earthquake Insurance - Not to Exceed $ 206,744 Cyber Liability $ 143,935 TOTAL $5,375,565 BACKGROUND Financial Management staff and the Orange County Sanitation District's (OC San) operational insurance broker, Alliant, began the renewal process in January and received final quotes in June. After negotiating with the insurance carriers, Alliant was able to secure competitive rates for OC San without compromising the quality of coverage provided. The insurance market has been in a state of flux due to reduced reinsurer capacity, weather extremes, sea level rise, wildfires, catastrophic losses, social inflation, and cybersecurity threats around the world and in the state of California. There is a lot of uncertainty in the market and insurers have taken losses for previous years and, as a result, insurance costs will increase to absorb the losses. The uncertainty in the market due to the above -mentioned factors will impact the insurance rates. As such, OC San will need to pay higher rates to obtain the same coverage limits. The current extreme degree of uncertainty in the insurance industry means significant rate increases, at least in the short term, until the numbers play out for the insurance industry over the next few years. The proposed cost of insurance coverage for FY 2025-26 is $5,375,565, an increase of $353,772 (7%). A summary of the insurances is included in the Additional Information section below. Orange County Sanitation District Page 1 of 4 Printed on 6/2/2025 powered by LegistarTM File #: 2024-3837 Agenda Date: 6/11/2025 Agenda Item No: 7. RELEVANT STANDARDS • Protect OC San assets PROBLEM Current insurance coverage expires June 30, 2025, and insurance coverage is necessary to protect OC San assets and financial well-being. PROPOSED SOLUTION Approve the insurance renewals as described to ensure continued coverage of OC San assets. TIMING CONCERNS Board approval is necessary since current coverage expires June 30, 2025. RAMIFICATIONS OF NOT TAKING ACTION Without Board approval, OC San cannot finalize the contracts with the insurance carriers and OC San's insurance will lapse. PRIOR COMMITTEE/BOARD ACTIONS May 2025 - Informational presentation to the Administration Committee providing an overview of the insurance renewal market. ADDITIONAL INFORMATION The cost of insurance coverage for FY 2025-26 is $5,375,565, an increase of $353,772 (7%). OC San's budget provides funds for the renewal of the following four major insurances for OC San operations: 1) All -Risk Property and Flood Insurance (Includes Boiler & Machinery) The All -Risk Property and Flood Insurance Program (Property Insurance) provides comprehensive coverage for much of OC San's real and personal property regarding virtually all perils including fire, flood, and business interruption. Current Property Insurance limits are $1 billion dollars for most perils other than flood and earthquakes, and $25 million dollars for flood, with many sub -limits for various situations. In order to reach $1 billion dollars in limits, the broker had to arrange for more than a dozen different insurers. The self -insured retention (SIR) is $1,000,000 per occurrence for most types of losses. Since the late 1990's, the Property Insurance has been with a nationwide joint purchase property insurance program called Public Entity Property Insurance Program, one of the world's largest property programs. It is important to note that this joint purchase property insurance offers the Orange County Sanitation District Page 2 of 4 Printed on 6/2/2025 powered by LegistarTM File #: 2024-3837 Agenda Date: 6/11/2025 Agenda Item No: 7. purchasing power of numerous large public entities without the pooling or sharing of coverage or losses. The Boiler & Machinery Insurance component of the property insurance provides comprehensive coverage for loss caused by machinery breakdown and explosion of steam boilers or other covered process equipment, including damage to the equipment itself and damage to other property caused by covered accidents. The current Boiler & Machinery Insurance Program provides coverage of $100 million per occurrence with deductibles ranging from $25,000 to $350,000 for losses caused by covered machinery breakdown (e.g., motors, steam turbines, digesters, co-gen engines). Damages to the equipment, as well as damage to other property and improvements from machinery breakdown, are covered by the Boiler & Machinery Insurance. This program augments OC San's All -Risk Property Insurance that covers perils such as fire and flood. The estimated cost for All -Risk Property and Flood is $3,118,944, a decrease of $7,618 (0.2%). 2) Excess General Liability Insurance OC San's Excess General Liability Insurance Program is currently provided through the California Municipal Excess Liability Program (CAMEL) and its sister program, the Alliant National Municipal Liability Program. OC San has participated in the CAMEL program since FY 1996-97. This program currently provides OC San with a $40 million dollar policy of comprehensive coverage for municipal liability, bodily injury and property damage, and personal injury. The program was structured to include Employment Practices and Public Officials Errors & Omissions coverage. The $40 million dollar coverage has a planned self -insured deductible of $1,000,000. The estimated cost for Excess General Liability is $1,429,942, an increase of $238,324 (20%). 3) Excess Workers' Compensation The Excess Workers' Compensation insurance coverage is with Public Risk Innovation, Solutions, and Management (formerly California State Association of Counties Excess Insurance Authority). OC San has participated in this program or its predecessor since 2003. The Excess Workers' Compensation program currently provides "Statutory" (unlimited) coverage with a SIR, or deductible, of $1 million. The use of Excess Workers' Compensation Insurance dates back to the late 1980's. The estimated cost for Excess Workers' Compensation is $476,000, an increase of $97,658 (26%). 4) Earthquake Insurance OC San previously carried earthquake insurance as part of its Property Insurance, but in the last 15 years earthquake insurance proved difficult to obtain or not cost-effective. Each year, OC San asked its insurance broker to survey the market to see if rates changed. In 2015, a plan was created to maintain coverage on several key OC San structures identified by Engineering, thus keeping the cost manageable. The insurance is a high deductible plan with a limit of $25 million dollars in total. The estimated cost for Earthquake Insurance is $206,744, an increase of $21,216 (11%). 5) Cyber Liability Insurance OC San currently maintains Cyber Liability Insurance to protect against data breaches, network Orange County Sanitation District Page 3 of 4 Printed on 6/2/2025 powered by LegistarTM File #: 2024-3837 Agenda Date: 6/11/2025 Agenda Item No: 7. security failures, and other cyber-related incidents. As the cyber risk landscape continues to evolve, coverage has become increasingly vital. This renewal year, OC San's insurance broker Alliant, reviewed the market to evaluate available options and pricing trends. The current policy structure balances comprehensive protection with cost control, maintaining a $250,000 retention, while providing adequate coverage for potential cyber events. The estimated cost for Cyber Liability Insurance is $143,935, an increase of $4,192 (3%). CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of OC San's Purchasing Ordinance. This item has been included in the FY 2025-26 Budget Update. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: N/A Orange County Sanitation District Page 4 of 4 Printed on 6/2/2025 powered by LegistarT" Headquarters ADMINISTRATION COMMITTEE 18480 Bandilier Circle ,SAN Fountain Valley, CA 92708 puNOE COYi/*' BRNR npw prsTACn Agenda Report 714 593 7433 File #: 2024-3838 Agenda Date: 6/11/2025 Agenda Item No: 8. FROM: Robert Thompson, General Manager Originator: Wally Ritchie, Director of Finance SUBJECT: PROPOSED FISCAL YEAR 2025-26 BUDGET UPDATE GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Approve the proposed Operating, Capital, Debt Service, and Self -Insurance Budgets for FY 2025-26 as follows: FY 2025-26 Net Operating $ 246,365,399 Self -Insurance $ 6,745,565 Net Capital Improvement Program $ 254,276,633 Debt/COP Service $ 60,431,104 Intra-District Joint Equity Purchase/Sale (1) $ 3,500,000 Other Requirements $ 10,000,000 TOTAL $ 581,318,701 (1) Cash to/from Revenue Area 14 (RA14) in exchange for capital assets to/from Consolidated Revenue Area 15 (RA15) BACKGROUND The FY 2025-26 Proposed Budget Update is included for the Committee's consideration. The budget has been presented to the Operations Committee at the regular June meeting in order to allow each Standing Committee an opportunity to review the proposal prior to the June Board meeting. Although each Committee has had an opportunity to review the proposal, it remains the responsibility of the Administration Committee to recommend approval. The Administration Committee is requested to recommend that the Board of Directors approve this budget at the June 26, 2025, Board of Directors meeting. RELEVANT STANDARDS • Ensure the public's money is wisely spent • Produce appropriate financial reporting - Operating and CIP budgets every two years Orange County Sanitation District Page 1 of 3 Printed on 6/3/2025 powered by LegistarTM File #: 2024-3838 Agenda Date: 6/11/2025 Agenda Item No: 8. PROBLEM The Orange County Sanitation District (OC San) cannot maintain and monitor its financial condition, operations, and future capital improvements without examination and transparency into its resources, revenues, reserves, and outlays, and cannot continue to operate without an approved budget. PROPOSED SOLUTION Approve the Proposed FY 2025-26 Budget Update. TIMING CONCERNS OC San is currently operating in the final year of its two-year budget which runs through June 30, 2025. The new budget will be effective July 1 of this year upon adoption by the Board of Directors in June. RAMIFICATIONS OF NOT TAKING ACTION OC San will not have an updated budget to be able to carry out its financial fiduciary duties or other operations beyond June 30, 2025. PRIOR COMMITTEE/BOARD ACTIONS June 2023 - Adopted the proposed Operating, Capital, Debt Service, and Self -Insurance Budgets for FY 2024-25 and FY 2025-26 as follows: FY 2024-25 FY 2025-26 Net Operating $ 232,674,493 $ 239,114,716 Self -Insurance - Workers' Comp. $ 1,124,029 $ 1,182,835 Self -Insurance - Property & Gen. Liability $ 4,402,500 $ 4,767,000 Net Capital Improvement Program $ 223,075,113 $ 279,436,128 Debt/COP Service $ 61,027,421 $ 60,431,104 Intra-District Joint Equity Purchase/Sale (1) $ 3,500,000 $ 3,500,000 Total $ 525,803,556 $ 588,431,783 (f ) Cash to/from Revenue Area 14 (RA14) in exchange for capital assets to/from Consolidated Revenue Area 15 (RA15) ADDITIONAL INFORMATION OC San's proposed FY 2025-26 operating ($246.3 million) and capital improvement ($254.3 million) budget is proposed at $500.6 million; a 3.7 percent ($19.1 million) decrease from the FY 2025-26 adopted budget that was approved last year as the second year of the adopted two-year budget. This overall decrease is primarily attributable to a decrease of $25 million in net CIP Outlay offset by an $8.3 million increase in operating costs. Orange County Sanitation District Page 2 of 3 Printed on 6/3/2025 powered by LegistarTM File #: 2024-3838 Agenda Date: 6/11/2025 Agenda Item No: 8. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • FY 2025-26 Budget Presentation • Proposed FY 2025-26 Budget Update Orange County Sanitation District Page 3 of 3 Printed on 6/3/2025 powered by LegistarTM 06/03/2025 Proposed FY 25-26 Budget Update • Stable revenues • Expenses include: • Operating • Capital Improvement Program • Debt service • Staffing: FY 2025-26 (664.5 FTE) • No new debt *All figures in millions unless otherwise noted Page No. 1 06/03/2025 Car $27 4i Adopted Proposed Intradistrict Transfers $4M 1% Other $28M 5% Interest $17M 3% Total Revenues - $570Mi Debt Other $60.4 $9.5 10% 2% 1 _j Total Expenses - $587.4 )erating i238.1 40% Car $2E 4z Intradistrict Transfers $4M 1% Total Revenues - $588M Other Debt $20.2 $60.4 4% Total Expenses - $581.3 est 3 )erating i246.4 42% 1 Page No. 2 06/03/2025 Revenues Expenses 10 w N'O N N'O N N'O N v° v w Ln w v v 0 v v° v O O O O o O o O- N N o N O �N O ON � N� O lrl Q >- d lrl Q LL LL a l}L LL a LL a Adopted Regulatory Additional 3% Capacity 6% Net CIP- $279 ategic Initiatives 11% Proposed Regulatory 6% 5 strategic iitiatives 13% Additional Capacity 10% Net CIP- $254 � Page No. 3 06/03/2025 $500 $450 $400 $350 $300 c 0 $250 $200 $150 $100 $50 $0 I I I I O I I I I N N N N M M M M M M m 10 I, 00 O1 O e-1 N M V } } } } } m m m m m LL LL LL LL LL LL LL LL LL LL ■ Authorized Projects ■ Future Projects $700 $600 $500 $400 0 $300 $200 $100 $0 �o 00 m 0 .� N N N N N M M m �n W r, 00 of O N N N N N M m O O O O O O O N N N N N N N • Total outstanding debt—$572 Million • No new debt planned • All debt to be paid off by 2040 m m m m m m m a m m m m m m m m O O O O O O O O N N N N N N N N Page No. 4 7 06/03/2025 CASH PLOW PROJECTION CASH FLOW PROJECTION Beginning 894 901 931 872 799 697 593 529 532 664 9 Revenues 588 618 611 636 662 689 715 744 778 814 Requirements 581 588 670 709 764 793 779 741 746 710 Ending 901 931 872 799 697 593 529 532 664 768 SFR Rate $385 $397 $411 $431 $452 $474 $497 $521 $547 $574 Rate Increases 3.77% 3.12% 3.53% 4.87% 4.87% 4.85% 4.85% 4.83% 4.99% 4.94% Page No. 5 06/03/2025 Summary __.M No new debt Planned cash flow for healthy CIP • Rate increases below 5% • Conservative revenue assumptions Constant monitoring throughout budget cycle Revenues and Reserves CIP Operations Operations Administration Administration Budget Assumptions Expenditures Insurance Proposed 2-Year and Calendar Budget Operations Administration Board Administration Operations Administration Board Page No. 6 06/03/2025 RECOMMEND TO THE BOARD OF DIRECTORS TO: Approve the proposed Operating, Capital, Debt Service, and Self -Insurance Budgets for FY 2025-26 as follows: FY 2025-26 Net Operating $ 246,365,399 Self -Insurance $ 6,745,565 Net Capital Improvement Program $ 254,276,633 Debt/COP Service $ 60,431,104 Intra-District Joint Equity Purchase/Sale (1) $ 3,500,000 Other Requirements $ 10,000,000 TOTAL $ 581,318,701 (1) Cash to/from Revenue Area 14 (RA14) in exchange for capital assets to/from Consolidated Revenue Area 15 (RA15) Questions? 14 Page No. 7 Budget Update Fiscal Year 2025-26 il 1 Mic jf x y Orange County. Sanitation DistM t, California its I1 ,LI a ORANGE COUNTY SANITATION DISTRICT MISSION STATEMENT Ilutj mtwet health and the environment by providing e Wiling For Fiscal Year ,July 1 2025 through June 30, 2026 GFOA BUDGET PRESENTATION AWARD GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO Orange County Sanitation District California For the Riennium Reginnina July 01, 2024 f Executive Director IbEs Gsveoio lent (FfirthiecUrQed States and Canada P02Pented a Distinguished 0bidigeitk %eskitbbdig4lAardlte IdienOwnge County Sanitation District Waning July 1 Ira qmWffntmneffrteuwetthiiesh\paftlish a budget document that meets program criteria as a pF31iaNr dpeumbent; guide fbwkiad plsommunication device TABLE OF CONTENTS D?C.San.Sery ce.Area....................................................................................... i Boa.rd..of.D.ire..tors............................................................................................ Boa.rd..Corn.mittees............................................................................................ i i i D)ra n.g e..C.a unty. Sa n.itatiran. Distri ct.0 rga n.izati o.n. Ch art iv biidJninistrative.0................................................................................................ v Messagefrom the General Manager.............................................................................................................................. vi Finance Summary IaJi�ri.................................................................................... 1 W..here..th.e. M.o n.ey. Co.m es..F.ram.................................................................... 3 FundingSources by Category............................................................................................................................... 3 W...here..th.e.M.on.ey.Goes.................................................................................. 5 FundingUses by Category............................................................................................................................... 5 .. ..iegtPr.ocess.Overview................................... 7 StrategicPlanning............................................................................................................................... 8 AssetManagement............................................................................................................................... 10 Capital. Impro..vement.Program .................................................................... 13 DebtFinancing Program............................................................................................................................... 14 OperatingExpenses............................................................................................................................... 15 Departments Summary............................................................................................................................... 18 GeneralManager MD............................................................................................................................... 20 Administrative.Services................................................................................... 22 Comm.unications............................................................................................... 24 Hu.man.ResoLaces............................................................................................ 26 E.nuiranmental.Services................................................................................... 28 E.nginenrin.g........................................................................................................ 30 Operations and Maintenance............................................................................................................................... 32 Appendix Cash.F.Jow.P.roj.ectimn....................................................................................... A ProjectSummary............................................................................................................................... A Cap.itaJ.Jmp.rovem.ent.Ex.penditure.Graphs................................... >:A S.um.mary..of..Cap.ital.Req.uirem.ents............................................................... a New...Project.D.escri.pti.ons............................................................................... a CapitalEquipment Budget Summary.......................................................................................................................... X0 Capital.EclLdpment.Budget.Detail................................................................. T6 Levelsof Service............................................................................................................................... X8 Satfded.Insurance..P.lans................................................................................. AO WSIrmai&O ............................................................................................................................... A2 ffr elz l..Sta...................................................................................................... A3 Apprnpriati.an s. Li.m it......................................................................................... A4 M.iscellaneaus.Stati.stics.................................................................................. A5 s„;Faott.: IN %1: e.R"V OC SAN SERVICE AREA Orange County Sanitation District Service Area and Reclamation Plant Locations in Orange County,CA Service Area Boundary 0 OC San Headquarters Reclamation Plants Nos. 3 and 2 (P1 & P2) Pump Stations Unincorporated Orange County (White Areas) OC SAN BOARD OF DIRECTORS Cities Active Director Anaheim >Tladns A Brea Christine Marick Buena Park Joyce Ahn Cypress Scott Minikus Fountain Valley Glenn Grandis Fullerton Jmie Valencia Garden Grove Stephanie Klopfenstein Huntington Beach Pat Burns Irvine Minda Liu La Habra Jose Medrano La Palma Debbie Baker Los Alamitos Jordan Nefulda Newport Beach Erik Weigand Orange Jon Dumitru Placentia Chad Wanke Santa Ana Johnathan Ryan Hernandez Seal Beach Lisa Landau Stanton David Shawver Tustin Ryan Gallagher Villa Park Jordan Wu RtatilaQistricts F-M E)Mesa Sanitary District any City Sanitary District IRWID Ranch Water District 1'6.VdD Linda Water District County Member of the Board of Supervisors Robert Ooten Andrew Nguyen John Withers Tom Lindsey loug Cha BOARD COMMITTEES OPERATIONS COMMITTEE FUtBurns ObbbDote n Joyce Ahn Debbie Baker ftug Cha Johnathan Ryan Hernandez Stephanie Klopfenstein Lisa Landau Tledas A Tom Lindsey Scott Minikus Jamie Valencia Ryan Gallagher,Board Chair 0&M5dftb Mii(tIW ADMINISTRATION COMMITEE 93tTittine Marick ¢lip Grandis Melinda Liu Jose Medrano Jordan Nefulda Andrew Nguyen David Shawver Chad Wanke Erik Weigand John Withers Jordan Wu Jordan Wagher,Board Chair #h5dDil Wiiibm STEERING COMMITTEE Ryan Gallagher,Board Chair F&hd3urns Operations Committee (tiribatine Marick ,Administration Committee Chad Wanke Glenn Grandis John Withers ORGANIZATION CHART General Administrative Communications Human Resources Environmental Engineering Operations & Management Services Administration Services Admin[stration Maintenance Administration Administration Board Services Administration Administration Risk fvlanagemerrt Planning Financial Public Affairs Resource Collection Facilities Management Protection Project Operations & Management Maintenance Contracts, Environmental Office Purchasing & Laboratory & Ocean Maintenance Materials Monitoring Design Support Services Management Environmental Construction Plant No. 1 Information Compliance Management Operations Technology Plant No. 2 Facilities Operations Maintenance Plant No. 1 Fleet Services Maintenance Plant No. 2 Maintenance TYtff 25 iv ADMINISTRATIVE OFFICIALS General Manager Robert Thompson Assistant General Manager Lorenzo Tyner Director of Communications Jennifer Cabral Director of Engineering Mike Dorman Director of Environmental Services Lan Wiborg Director of Finance Wally Ritchie Director of Human Resources Laura Maravilla M"otenehOperations Riaz Moinuddin a0IM: SAN 0846 a Avenue F OC 6Fountainrk Valley, CA 92708 714.962.24ii ORANGE COUNTY SANITATION DISTRICT www.ocsan.gav '253 Serving: Anaheim Honorable Chair and Board of Directors Brea It is a privilege to present the Orange County Sanitation Districts PDCW Update for 213¢al a ta(�2Blines our strategic direction and fiancial plan as we carry Buena Park ffmtwaErd our mission to protect public health and the environment by providing e trq)llection Cypress QGh6bTg redmhssotcErenvitted to its long a1Tub\stdmrardship Fountain Valley WJYm butirIpEbubkaed irfoEstsnffrit long fiancial Fullerton sustainability, and operational performance fhthWW fusititeir2ng a residents we serve. Garden Grove fterrg Vision and Strategic Planning Huntington Beach -!6cbF'ig"`M2ffigns with OC San 'sn%iAte#erRlyrupdated in November Irvine Iden environmental stewardship , infrastructure resiliency, j Td*p mxie-Vb)opairbTdrships #ctuidgetswable La Habra pKagrWkffcen these areas through targeted investments in capital improvements dRi&byptaEmtnodernization La Palma 5�aarlddalbi�abdrn*%OTN!atioarment Program and 20 PF?e Los Alamitos a�becVYcontinues to address aging infrastructure while planning for future demands -ft[J! dg4Atisupports essential upgrades to reclamation facilities Newport Beach 0mm'du0m"WmipltiVeteqyftWumed service Orange reliability. P#acentia Strategic Capital Investments Santa Ana OC San'2-oIfeposed operating and captial improvement budget for FY 2025 $00 6 million tmsiapdrhalrpp#ffmUsd Seal Beach ffi4ogli&0ldatirqyaging systems and ensuring regulatory compliance. Major projects include Stanton Rehabilitation of Plant No"! wiftadhWorks and Sedimentation Basins Tustin 6fiealippater processing and operational e Villa Park Primary treatment upgrades and power system enhancements at Plant No. 2, PMARffiEft*resiliency and Groudwater Replensihment System County of Orange Replacement of critical pump stations, including Seal Beach and Bay Bridge. Costa Mesa Sanitary District Construction of a new laboratory and operations complex, enhancing functionality and Midway City teng operational capacity Sanitary District I$fteswe*�alceOC San 's 0daitlicitrastructure renewal strategy Irvine Ranch bf the most ambitious in the agency s history. Water District Debt Management and Financial Stewardship YorbResponsible Wate Linda Water District OC San continues to demonstrate strong fiancial discipline fiMids t¢ftal outstanding Certi Participation RQ0t held at OK rme4kafebt issuance is planned in FY 2025 Insobd projects are being fianced using a combination of reserves and current service fee revenue. Z6EKMTYfllA2AM5 vi t1SAN ORANGE COUNTY SANITATION DISTRICT dnlgruTportunities to re 1FJgilsi h h6Wroach helps preserve our AAA credit ratings and ensures tbed,rn'taM5tial sewer service fee is proposed at IFalecstwcItnee with the Board ffvdkbdilqnd9dvhile maintaining a Benmylitment to Performance and E $84 per year -OKAing a modest This adjustment supports necessary Operational performance and cost containment remain central to OC San' ffAt2t�rnt approach operations budget of Willion includes necessary increases to support maintenance prmfessional services erath with only 664 ffrEdUD on from dmistpitealotaAs expansion and increasing regulatory demands I¢i�e�m�r¢�i®e�aectFkjttaror�gh technology upgrades service delivery, @4ew2i5sl ereeritaof rttmtbpidlglk is dedicated to employee costs #gtngi&C SanVc¢hii�esafaadtaccountability Forward Momentum OC San continues to lead in water reuse through our longstanding partnership with the Orange County Water District Tog etheremUsoolbDah tts1at) million gallons per day 6�titimec61Fe11sls�vay to optimize integration and delivery of reclaimed 6ws from Plant No ,Pltnq�5o remain focused on innovation in biosolids management independence, cybersecurity f tlbol:reegimoFdbimation OC San navigate future challenges while continuing to deliver safe,reliable service to our community. lbuaiUijtQ6xp'mess my appreciation to the Board of Directors for their leadership and vision tii� rr�lritf��eelrctf�osionalism fical integrity ,enditiberh�gtel t)sAechods of public service Ag�;5�5L- Rob Thompson General Manager Orange County Sanitation District I Z1193831TYRARAM5 vii DIUMEW ANNHIMMETARY ISSUES Budget Overview OC San's FY 26dl5erating and capital improvement budget is proposed at $00 Famillion $15million decrease from the FY 2 ted bTkdg(tecrease is mostly comprised of a $5 1 raNlgn 0 percent net decrease in cash outlays for ffbWbjynAtc3n projects $ rrTiBii3Dn increase in operating expenses fictuation in capital outlay requirements over the next two years is attributable to the timing of the construction schedule on the implementation of the overall yeaTbined ten $ (billion CIP . iffbtstbudgeinc9ntinues to re s ongoing i#rts to meet the operational standards and f etcedy Eequib®iWts pr6pbtieib c-dcVaMlent Fff(Eitions hn FiTiErease of 1 FTE position over the 663 ff@ level that was approved for FY 2024 Financing G34rtR!@eficin pod' fiancing capital improvements that cannot be completely funded from current revenue. Before ottW rievaadL-bif iddbtus&vice payments on total annual fa"fiatatosts is analyzed COP indebtedness is currently at $ l2ereillion fiei)cebenal}p0KD4uraidds to re callable debt during FY 20-25 will produce sN,dnUs&ovwrt* dlt�DfiJf the debt fiancings are currently forecasted to assist in the funding of the $Bbillion in capital improvements required over the next ten years ft Reting the organization 1fieacgmitment to e and providing the expected high level of service, the Barret includes an increase of one authorized full positions for FY 2625 .Total fled positions will not 5xf dbtinC64quivalent Witions If4des4elgabntinues to re @-;Eduapprovfadm the Fiscal Year 1995 ffp level of 678 positions O&er&Mill personnel costs for FY 2025 approximate the original adopted budget due to reductions in labor and retirement premiums to Orange County Employees' Retirement System PCERS following the retirement of approximately seventy employees in the last two years Costs for medical insurance and workers compensation bL-raee also expected to remain the same as the IeOfC (S4naUVI agaitoumal to tfctively manage these expenses with approximately 26 peam#nt of the budget allocated to employee costs less than most other government agencies Cost of Treatment The agency �IdvwdarddfarBetaotaiplants VpffE);esmdh IdantlDigfiah 1B6ach million gallons of wastewater each day generated by approximately B million people in central and northwest Orange County. The FY 2ftr2fiosed budget to operate maintain ortd=atnanalgeandur sewage collection disposal system is $46 %pdrimebse of 3 $rasMibm previously adopted budget Sewer Service Fees The FY 2Ei2figle family residential rate , the OpoecipbsyiiaMis for all sewer rates $84 a year.This represents an increase of $3pwraent per the rate structure approved by the Board of Directors PWR6dwater Replenishment System The OC San Strategic Plan includes water reclamation Partnered with the Orange County Water District PCWD 13IG, IDatiompleted the GWRS 's largest water rwc11arniatiq1i2PbJ)ct .06 SagiaalJGWRS facility reclaimed 70 mgd OCWD equally shared the expenses of this project Initial expansion of the GWRS increased the production of t alj@wbter to 100 mgd funded entirely by the OCWD,OQs completed in 2015 San is directing all reclaimable 6ws from Plant No .1 to OCWD in support of providing maximum amounts of treated wastewater for reclamation The plan to achieve the fial expansion of the GWRS was approved by both OC San and OCWD Board of Directors inTW16 fial expansion of GWRS brings the total [:8brfrecOfnSAirreclaimed water to 130 mgd has maximized the available reclaimable wastewater treated at Plant NofftffcdndaT)'lant No .2 dffitheatnt to the GWRS for reclamation existing Plant No,2 hiawd4iwYkWater pump 5t4iroaiizmidr-construction of new pumping and conveyance facilities will be funded by the OCWD. DIERWEW ANNHIMMETARY ISSUES itatilbre BiaotlWnroject is impacting OC San's critical infrastructure,OC San will manage the design and construction of these projects and were reimbursed by OCWD up to $Khe-iillion fial expansion of the GWRS went online in 2023 Poital Improvement Program 26eistoltAinWt CIP budget for FY 2025 proposed at Wbxease of $5 1 million 96mbddgepreviously approved FY 2025 primarily due to changes in project schedules and estimates that result in deferred spending over the r0ji $Aryears 's Capital Improvement Program will provide needed improvements and rehabilitation oirrdsrgliao dheDftIIwsitVareas highlights Relpifv h&e the headworks trbaatdhes(bcondary treatment at Plant No.1 Replace a third of the primary treatment fc-rdhiad3gitate the aeration basins and renew the digester complex via rehabilitation and the construction of six new digesters at Plant No.2 Construct new administrative facilities including a new Operations Maintenance Complex and a new Laboratory. Replace or rehabilitate OC San's aging pump stations and trunk sewers in the c-iA(bEkadi Yg3 i Bys(betnnt full replacements of Edinger, Sedl Beach Bay Bridge Pump Stations $erating Budget Increase Ttreatrperdtions budget for the collection and disposal of wastewater is proposed at $46 hellion $ million Pirlret above 2ffDfdoptffdllbiudgEqse to the operating budget is primarily attributable to the fiAaaing speci *Miewhmiml Services The increase is primarily due to delays in projects and higher than anticipated costs for consulting service for the development of a progressive design build program and a survey of all OC San easements $Whirs Maintenance This expense category includes parts and services for repairing aging treatment plant and collection facilities bottrlease budgets for equipment maintenance as Arced amhual service contracts and 2-ffimea a20R§reements iarieadoeover the adopted budget for FY 2025 to increased cost of goods and service needed to maintain the reclamation plants Operating Budget Comparison "ilFibns 300 250 238 246 233 227 - 200 150 100 50 0 Series 1 FY 2024-25 Adopted FY 2024-25 Projected FY 2025-26 Adopted FY 2025-26 Proposed TYURRAM 5 2 FMERW6Ai',IL ANNHIMMETARY ISSUES Where The Money Comes From Fees: 7: Funding Sources by Category in Millions 2924 2625 Category Adopted Adopted Service Fees Property Taxes 13 Permit User Fees 5 Capital Capacity Charges 5 Interest I Intradistrict Transfers 5 Debt Proceeds Other Revenue Total 10 3 6 U Taxes: 21% Interest & Misc: 7% 2025 Proposed E$ 3 2 9 !'..031 f1`:NIFLI:101:7IIP11; 3 DIERWEW ANNHIMMETARY ISSUES OC San has a variety of revenue sources available for D�bmtingjoanrbwopital expenses sources are feral Service Fees User fees are ongoing fees for service paid by customers connected to the sewer system and are the primary source of OC San's revenue.A property owner, or user, does not pay user fees until connected to the sOvvw spsteectmid receiving services users are responsible for their share of the system's (-bs& fled and variable , in proportion to their dftmaacfaosthe4Wtbath Single Family Residences FFRnd Multiple Family RW,Qdences 028perty Taxes 7M The County of Orange is permitted by State law Ptop"ctaxta at one percent of full market value JArtdn arApE rr dhe assessed value no more than two percent per year.00 San receives a share of the basic levy proportionate to yi,,E& was received in the 1976 to 1978 period $ Mithen amount that represents the State s permanent annual diversion from special districts to 9aQSladistricts that began in 1992 's share of this revenue is dedicated for the payment of debt service before other operational expenses Otmit User Fees Permit user fees are paid by large industrial and commercial properties owners connected to the sewer t7 tem fees are for the owner s share of the system' hts fled and variable ,in proportion to the user sSdwua*d dmv icWstem of the Permit User Fee Program in 1970, users of OC San's system that discharge high volumes or high strength wastewater have been required to obtain a discharge permit and pay extra fees for the cost of service received tbpital Facilities Capacity Charges 7M Th-e Capital Facilities Capacity Charge is a one charge imposed at the time a building or structure is newly connected to OC San's d fign or indirectly,or an existing structure or category of use is 61isndlealrgo OVeFfsecDC San facilities that exist at the time the charge is imposed to pay for new facilities to be constructed in the future fitht?v0tblperrl1V being charged Brest Earnings Interest earnings are generated from the investment of accumulated reserves consisting of a cash bontingency � a rail improvement Oepbaamifitrdserve $frFadistrict Transfers In accordance with Amendment No.2 to the Agreement for Purchase and Sale of Capacity Rights in Treatment Disposal and Sewer Facilities between Irvine Ranch Water District IIOC San dated November 15 6otndlrrsbipuiEentdjusted annually to re fJg5ity percentage ownership based on sewage $ebt Proceeds 0M Eaftklis of Participation POPOC San s primary mechanism for fi2WPi sj acapital projects repayment obligations based on a lease or installment sal@Pag eenmmttviewed as tk�Dtthe tlerafhQalifoshiiFre in an installment arrangement where OC San serves as the purchaser. @Wc1ogO008ancwhdre bene ftEreiinmabuTbNcImbdallable issues issuances are being proposed as the $ 1 billion in future rapidKIE�&atitishment projects anticipated over the next ten years will be adequately funded through current sewer service fee charges and existing reserves $fter Revenue ldtlaeaneweawesinuladhss feelf workers' compensation and general liability coverage as well as reimbursements from other agencies for shared CIP and operating costs and miscellaneous revenue such as rents and leases EMMWE 1L ANUNIMSETARY ISSUES Debt service: 11% Operations: 42% Where the Money Goes Other: 4% Funding Requirements by Category in Millions Capital Facilities g3 FY 2624 FY 2625 FY 2625 Category Adopted Adopted Proposed Capital Improvement Program $ $?79 4 $?54 Operating Expense 2 2381 Debt Service 6 0 f) Other 6 95 @ Total Outlays $25 $87 4 $81 ill 1H2 5 5 BMMWEN L ANUMIMMETARY ISSUES OC San budgets its funds in four distinct areas $Wrating Expenses The proposed budget allocates resources to operate, Itreiaftentnd manage our sewage collection reoyicfmigargdadigo Wctystem administrative or technical requirements J"ital Improvement Program To provide an appropriate level of service to OC San's rAbegeyeapital improvements are required The CIP provides for the management and imphEmalgtion of these improvements fiaO3 dWath5s speci irWoss CIP project budgets for 2023 total $89 OhoviJWer ttel CIP cash outlays irorgs and deferrals $&bt Service E4M ffdb%n*eMe cost of repaying debt gearing allows OC San to complete large multi capital projects by providing funds not always immediately available. Currently, OCSD is on track to pay $million outstanding debt by 2040 Ether Requirements 2M +Yt$ierileoe iraalitdGandedifn amount in accordance with Amendment No.2 to the Agreement for Purchase and Sale of Capacity Rights in Treatment Disposal and Sewer Facilities between IRWD and OC San iNbOisbadgd!ted annually fhetr(the current equity percentage ownership based Swsewage Z693831TYHRRAM5 6 ,AND RECYCLING PROCESS OVERVIEW OC San's system includes over 380 miles of sewers that convey wastewater generated within OC San's 51�e¢ileAmati€mto its two treatment facilities Plant No.1 located in the City of Fountain Valley,and Treatment Plant No.2 located in the City of Huntington Beach Rent wastewater undergoes Preliminary Treatment upon entry to the treatment plants where it is ftered tbnaUghtborchdelanisare removed It then #iWsidb Et irnsaftfi Ta�atment large settling basins where solids are settled out pafndrmod by the addition of chemicals SoWdasteRr&eessitiWn 6ws to $wbk1ddqy aTrieMogi inbl process using either the trickling fter or activated sludge p8c&Issremoved in Secondary Treatment are also sent to digestion Methane gas generated during the natural decomposition of the solids in the digesters fuels the Central Power Generation System producing enough #iedtridafythe pxebrtweeded to run both treatment plants SOlipereeottlsefiddewatered to a 25 consistency, eadledieb�cbEJdia direct land application or composting 004o 130 million gallons per day of secondary e is sent to the Orange County Water District PRWD r-@bycling in its two treatment processes fst is the Groundwater Replenishment System PAS fbfferst p&cajL-ct poLfri its kind in the vft-I d1 jointly by OCWD and OC San million gallons per day, the GWRS generates enough pure water to meet the needs of 1 million people. The second is OCWD's Green Acres Project PAP of 8ttfrartEm0ialgsareclaimed water for laodkba4alf irrigation at parks awrl as for industrial uses such as carpet d7diegdemand for GAP water is about four million gallons per day. T16ff 25 7 STRATEGIC PLANNING Introduction Dahv&nhioudse mission tfgit FUtinues aggressive e pbBdt1bCet ae nitffbitt%nof the bioTiflit:�rape'bple we serve while protecting the environment where we live. Mission Statement The Mission Statement is the basic foundation that files why we exist To protect public health and the ffoi;iirennwwdtevterproviding e anAVaboydling Vision Statement The Vision Statement supports the Mission Statement by expressing a broad philosophy of what the Orange County Sanitation District strives to achieve now and in fhe future in the delivery of services to our customers "enpTat:ilosblic and each other. Orange County Sanitation District will be a leader in Providing reliable, responsive ffrdadlea services in line with customer needs and expectations Protecting public health and the environment fftitivieg maffinpretctical and e wastewater, energy, and solids resource recovery. GentilEmtly eeektegNat the public's money is wisely spent Communicating our mission and strategies with those we serve and all other stakeholders f?wtxnedugoMbrsothers to bene thixlreg icin d ustry Creating the best possible workforce in terms of safety, productivity, customer service ,and training OC San Planning Environment The Orange County Sanitation District p!C cSan resource recovery agency focused on providing ffWiEWSpebdc cseytvices gees a two steer management process that creates and maintains vision alignment between the Ord of Directors and the public we serve .It all begins with a Strategic Plan developed by the Board ffhdtgtaovides guidance and direction for long ffahWU*erational e Core Values Our Core Values support the Mission and Vision ,Stm§defents by expressing the values plfifieyoj la�pthat guides our daily actions form the framework of our organization and reinforce our professional work ethic Integrity,hlah:ueitVi ,and Respect We aspire to the highest degree of integrity, irbibusishy , and respect in our interaction with each other, ead supoinErs our community. We strive to demonstrate these Addm tr0mxtsctions Leadership,3ealrOftblem Solving We lead by example, acknowledging the value of our resources and using them wisely to achieve DWerrsttiqnto reach OC San goals ffrtet@#d mndlabrtt4cre with eW-* wtfrtkrtend our constituencies solve problems in a creative#ctis and safe manner, and we acknowledge team and fifTtlividual e Customer Service, Transparency, and Accountability We are committed to acting in a timely, accurate, accessible, and transparent manner through excellent customer service. We are committed to act in the best interest of our internal and external stakeholders R e s i l i e n cy, hrmbire ti oYi n g V�bmhmTidingously develop ourselves OffittsEbbiWeiYe that only through personal growth and development will we progress as an agency and as individuals Safety We are committed to providing a safe work eftirorvadbntlemonstrate leadership , promote individual accountability, and participate actively in the advancement of our health and safety practices TYRARA"M 5 8 STRATEGIC PLANNING Monitoring New or Altered and Evaluation _ Levels of Service Ed ApprevaiPLANNING Budget PROCESS Budget e ' Goal and Objectives Strategic Planning IrhhNd3ean1ieof2M2ktors adopted a new comprehensive strategic plan to steer OC San's €#Ftge Strategic Plan developed by the Board of ffrei0dateand\&Ey two years prior to threostaVemfhtloeinbudget process fil *a9tr2l@q3ic initiatives to be pursued by OC San and provides a ta'stE for long tieabitblperational Wiliftnipodities for long tfoetiybAh}saftainym as Board and sta over the many years it takes to deliver public works infrastructure. Environmental Stewardship Energy Independence Climate and Catastrophic Event Resiliency Food Waste Treatment Water Reuse Environmental Water Quality,Stormwater Management and Urban Runo Wastewater Management Chemical Sustainability Biosolids Management Constituents of Emerging Concern Pffisbvn bgncbuid%sMelwes Strategic Plan continues OC San'ffrzbp�nessive e Workplace Environment Proiditrthe public health of the more than 2 Safetyand Physical Security nt Sta Safety people we serve while protecting the environment where we live. The Strategic Plan is comprised of four broad categories with fteeoupolicy areas that de responsibilities and the services we provide. These areas are Business Principles Budget Control and Fiscal Discipline Asset Management Cybersecurity Property Management Organizational Advocacy and Outreach The Strategic Plan is not a departure from the current 0kdddiadfiivthe pvWadbD tWitdirtl-elioudeotiOC cffathe ftdWgI a Plating the Asset M@a0#eI-ndnfpr@ifflment Plan Fewnbiadl"bn that are the basis of a two tff&ewill be adopted by the Board of Directors Budget goals and the General Managers work plan are the accountability steps that measure achievable progress toward the strategic initiatives listed in the Strategic Plan TYHARAM5 9 ASSET MANAGEMENT Asset Management Program OC San's Asset Management Program continues to evolve and advance as a comprehensive decision OThIeirpgcfg3am4vuikades the planning OE,dgcronstruction of quality facilities as well as 1hnmbonifined operation refurbishment or replacement of assets to meet OC San'enaTdirtds oordinated decision process allows OC San to consistently meet mandated Jmv9EWLnA service while balancing short teng needs at the lowest overall lifecycle cost The ongoing improvement and maturation of the Asset Management Program has resulted in the annual publication of an Asset Management Plan which pnm6ddscad-Wi ksn on the program 5rTtmdn#iiaetgetary considerations evaluates the remaining useful life of assets by discipline within each of the major areas collection tamation Plant No Ind Reclamation Plant No) —The Asset Management Plan is not only useful for documenting the current condition of OC San's 0REktGtPsbyheIps to develop the 20 identifying what projects are necessary,when they are Oechow best to accomplish them fjddnyrtf"st5eb &1 aide m e n t Program is a focus on renewal expenditures which is expected given the average age of OC San's assets The value of OC San'yems6lPOnInthe 20 to sustain them are summarized in the following sections and described in more detail in the CIP Budget Request Summary section of this report 500M 400M 300M 200M Asset Valuation The replacement valuation for all of OC San's assets was updated in 2018 as part of the 2017 Facilities Master Plan The table below presents the current valuations of OC San'sT&BetqDlacement value represents the cost inTW25 dollars to construct similar facilities depreciated value is the book value of the assets based on their age. Valuation Plants Collections Total $eplacement .11113 Value -Jn billions 16eisestimated replacement value in FY 2024 16 7 RdMmmd based on the Engineering News Construction Cost Index PCt:rease since the 2017 Facilities Master Plan Planned CIP Outlays Eder f6116\,®iva*yh.<ic4bows the 20 includes both current and projected future Capital ILAOd iWena&rhtfBra"cm p mjects the proposed CIP outlay for Board Authorized Projects is provided in the CIP Budget Request Summary section of Rher d adllc*kt of the 20 primarily comprised of future projects which are 6nkva*tedwand adjusted annually to re information available. Op year CIP Outlay 100M 0 1 tiO LO tiO y�0 3ti 3� 33 31 3� 3O rbA ;3O 3O tO py 0 bO Olh O1�o l Orly O, O�0 O3ti OOti OP OOP O3� OOP 03� OOP OOP OHO O�ti O�ti O�3 O�� ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti Future CIP, Rehabilitation and Refurbishment 10 Proposed CIP Outlay for Board Authorized Projects TYU1ARAM 5 10 ASSET MANAGEMENT Maintenance and Capital Projects Below is a summary of the maintenance activities and 2f6ociated capital projects for FY 2025 Collection System OC San's collection system consists of over 380 miles ofMaeitmancand 15 pump stations activities are based on established levels of service to ensure compliance with OC San'wgi6re-dt Sewer System Management Plan FBMPSSPM is designed to both reduce spills and increase reliability and safety. Planned activities help extend the useful life of the assets and minimize nuisance odors Typical gravity sewer maintenance consists of closed circuit television PQIVection and cleaning op[Fuwatijongstation maintenance activities jncjnrc+ eentiuetinegndassessments poreebbvk*aintenance of all electrical onalindinsti ni:ption equipment acfFvd*sencies are based on process r-onditions #idiAdmfaaitureEords road rindiaskl 4p&m; practices Collection systems generate odors and corrosive gaTkese odors and gases are proactively addressed to mitigate nuisance odors and limit degradation of collection system assets Collection System Capital Projects OC San's collections projects go through a planning and design process to ensure all elements of the prblmde apEpoj#oftoughly assessed typically renew or replace aging pipelines and pump 5 � d>alcilitiissut s mcTuErent codes and standards jristzroess Sw capacity due to growth in localized portions of our service area K FcY f0625 continues to be on the replacement of three of OC San's important pump 62t®jimdt &- t B in construction and will replace Seal Beach Pump $tefipecllrnellyBay Bridge Pump Station The construction at Seal Beach Pump Station is expected to be one of the greatest contributors to capital spending in the coming year. Project No Fit ngesgthsrsipgStation Replacement through design and is expected to advertise for construction within the coming fical year . The reliability of all of OC San's pump stations are critical OmpmxEErnting sanitary sewer over these three pump stations are a priority for replacement with an average age of 58 years since original installation These projects are projected to spend a combined $5 261lion in FY 2025 Additionally,as the system continues to age,associated condition issues are being addressed throughout the c61dejAi3JnWstem Santa Ana Trunk $Br ct2 bilitation f)g& Alamitos $ u,bik and Westside Relief Interceptor Rehabilitation abdIR11 Interceptor and Baker Force Win tlhnpeovjuadnt9campies of this dAgothg=eep*&At;icffree in construction and are projected to spend a combined $6 million in FY 2025 Reclamation Plant No.1 and Reclamation Plant No .2 Maintenance The maintenance program is continually being optimized with a focus on predictive and preventative maintenance "hdmdideddresses issues early on approach not only allows for a more planned and less disruptive maintenance program but is also more cost #ctive Each year the maintenance divisions complete tens of thousands of these predictive and preventative maintenance tasks Reclamation Plant No.1 Capital Projects These projects are intended to rehabilitate or reconstruct major components of our treatment process and support facilities to ensure reliable operations One of the largest projects at Plant No.1 continues to be the Headworks Rehabilitation at Plant No.1 Project No. FUEhd facility is over 30 years old comprehensive refurbishment is required to ensure the continued reliable operation of the facility into the future. The project will rehabilitate systems including the metering and diversion structure, the bar screen btfNelirt jainloadurorggdDuilding odhtp oht"siirs (-hb Tmellseadworks odor control scrubbers plectdcatorlloDter distribution systems eTbi-9gmtject is in construction and is projecting to spend $&vittmillion in FY 2025 fial completion scheduled in 2030. AmdtllxmjeighM Plant No .1 is Project No .J INSe Laboratory Replacement at Plant No , 40ich will replace the existing onsite laboratory at Plant No.1 ffAth faoilitp located near the new Hffiisigadrtpre\&ieldJngew facility which meets current codes and also make additional TYHARA"M 5 11 ASSET MANAGEMENT land within the treatment plant footprint available for fLT iwiqDwws9 and construction needs the fist projects planned for execution as a progressive design build project for OC San and is $6ojlfiote ht516l2025 Major overhauls of aging infrastructure continue Q&nstream of headworks with projects P1 Primary Sedimentation Basins NoS3Replacement at Plant NoJ48nd P1 I Paitdiated Sludge 8Bcftt¢!*gijtUwiba re expected to be nearing completion of design in the coming fical year and anticipate to spend $D million 2ffY 2025 r Reclamation Plant No.2 Capital Projects These projects are intended to rehabilitate or reconstruct major components of our treatment process to ensure (--oEFnlble-- weitbr regulatory permits reiaodi fgty One of the largest and longest duration active projects at Plant No92 remains Project P2 Primary Treatment Rehabilitation at Plant No). This project is in construction and will renew the useful life of the 14 ¢riTmro al-,ffmciated support facilities at Plant No. Thteaer6hdbtlbation and replacement date back to the late 1950 s and need seismic and bUmddiapgrades fial phase of this project is now under construction and is projecting to spend $3 JtWibn cbmWtiZ025cheduled in 2027. ► TYlff25 12 PAPITAL IMPROVEMENT PROGRAM CIP Budget Request Summary OC San utilizes an asset management focused ffpjwe4cWtm&ge 15 7 billion of aging assets which require ongoing investment and aTteistiWproach includes both the consistent evaluation of the condition of existing assets and the consideration of what future facilities will be needed to pc wgra0hi-cging regulations stCKeg$anin#Mv1mrforms annual reviews of active and future projects through our Wdatibnp cYement Program ffbenrArr4gelsl agaaent O schedule, bsktg(Ather key project irtdpaMtos afeacticercjffdjects monthly so that individual project and programmatic irOCffingtisralidatiolae monitored ffE vieta each ongoing capital improvement project to ensure that the scopes of the projects remain appropriate, that cost estimates are current and that prioritization and schedule fi within the program Ftbef ttarmipg)pistsion reviews how foal best package and schedule those items identi via the Asset Management Program to facilitate their execution and maintain operational reliability. During #0&e slaiew all future projects to ensure timing needs are accurate and no further scope changes are required The result of this asset management focused approach and validation process is an updated 20 year CIP budget each year. The following information summarizes the outcome of the 2025 budget validation process which results in the proposed 9¢dltel tFiYtWn 2024 budget The validated CIP includes 74 large capital projects > na4dh36hi9&boafsh $fbiflic presents a net $19 million increase 26 n aF9h 0Q94 F�affea listing of capital projects and their budgets Summary of Capital Requirements :in the appendix The CIP also includes a variety of individually smaller programs that are grouped together within the CIP — ,SmR1bnnCWst&cdbes Projects FTEft6sledlarmation Technology Capital ffrts are consolidated under their own project f5ES that are listed as M RRWRC"ely Six new projects were created during the 2025 validation *&kii*inrejects are 1@®nGen Monitoring System Improvements at Plant No.1 and No .2 114�blic Address System Replacement 34dwer Distribution Systems and Power Building C Replacements at Plant No.1 and No .2 19bep Well Biosolids Management Facility I42ygen Gas Generation Facility at Plant N o.2 tl%ste Sidestream Pump Station A Improvements at Plant No.2 AhEpfutloMhg budget update process projects are closed or cancelled Closed ImedwetlRdI06610 .2 for GWRS Final Expansion I110turn Activated Sludge Piping Replacement at Plant 2 SP4UQM Software and Process Implementation >Naer and Red Hill Interceptor Repairs 30-Atural Gas Pipelines Replacement at Plant Need 2 Cancelled R1UkV Switchgear Replacement at Central Generation at Plant No.1 1P36 was cancelled as this project s scope of work was 00�idtm be incorporated into a new project ffrtadietrb sarralagle/ork from various e firdWtdecision will allow for the more e execution of these improvements 96itioinsthNappendix are descriptions and justi the capital improvement projects which are new projects 06o0ask0tfaptia$eFY 2025 They give jtta?rbodgetsfbrief overview of each project than dotfrhyp tial changes in the operating budget resulting from the implementation of the ffiepAdedeription of ongoing projects 8 of the Adopted Budget for FY,2(2024 2025 Z693831TYRARAM5 13 DEBT FINANCING PROGRAM Debt Financing A Ten Year Financial Plan is maintained to establish fiancing parameters regarding the issuance of debt the levying of user charges and the funding level for required reserves in accordance with OC San's reserve policy€fMe Financial Plan is revised annually to re the most current cost and revenue fiures resulting from capital program revisions and operating changes fkffffsof Particiaption The primary debt fiancing mechanism used is EEI:ids of Participation JPCG@Ps are repayment obligations based on a lease or installment sTJfm Btentture was selected over other structures because COPs are not viewed as debt Jzqs ttfe-- *artehz&0a bbei9ianof actually receive a Obad rather a share in an installment sale arrangement where OC San serves as the purchaser. Accordingly, OC San is not subject to the usual State restrictions surrounding the issuance of dCOPs can be issued with Red or variable j2@kffBthdhP&standing SEP indebtedness is million Dedicated Funding Source In 1992 and 2004 the Board of Directors formalized the dTdiestioredfi(Eertain funding sources pumbnuatkmeybfavorable credit ratings dedicated to debt service in the following order 1 Ad valorem property taxes 2 Sanitary sewer service charges 3. Other Revenues This apportionment of the ad valorem tax was consistent with and pursuant to the Revenue Program adopted in April 1979 to comply with regulations of the Environmental Protection Agency and the State Water Resources Control Board and in accordance with COP documents and Board policy. Debt Coverage Ratios OC San has no legal debt limits as imposed by state IETYelalJiTlrp legal debt limits pertaining to OC San are those that are provided within the existing COP indenture agreements requiring minimum coverage Offiosrom n lmum coverage ratio is the ratio of net annual revenues available for debt service requirements to total annual debt service requirements fdrhe I I cs&eraigdjeratrbC* rdebt Wnfor FYn COP debt is proposed at 5 2025 26. Build America Bonds Financing OC San issued the $0 D million Wastewater Revenue ge!�o2010A in May 2010 and the $57 0 r5dit s\'®dGfwater Revenue Obligations December 2010 as Build America Bonds " PABs fled rate debt The American Recovery and Reinvestment Act of 2009 created a new f@AfflW rlawdciplal issuer, BABs are issued as higher interest taxable bonds however,the U Sfreasury provides a 35 percent subsidy eft&l gsifVMofdrs TIfmq15er11VcmAjItvb9idy payment lower net costs to the issuerflapydn the maturity years beyond ten years �RWeutitrcll government implemented certain automatic spending cuts known as the sequester. As a result of the sequester, federal subsidy payments on BABs have been reduced annually from a high of 87 percent for the federal fical year ended September 30 , 2013 to a low of 57 percent for the federal fical year ended September 30,2030 . BEY S2620repaid approximately $30 rnfiltlmia� Ike 2010C BABs debt obligation total term of the debt portfolio,with fial payment date in 2040. Future Financings As a result of having a prudent reserve policy,experienced r-0&�$amnelrAsabdeprudent planning able to secure "AAA;' credit ratings from Fitch Ratings Moody &CGbadsb6rRa5eg6ce and S San'saimjfg fiancing plan is designed to maintain JKbQbGth0iisTeMnd9 years projecting an additional $Bbillion in future treatment plant and collection system capital replacement reftabishment and rehabilitation improvements accordance with OC San'telimncgiebt fical policy ,OC fiffm laborroudng to capital improvements that cannot be fianced from current revenue, 819arepaiaV dew debt is issued debt service payments on total annual Red costs will be analyzed OC San's cash fbw forecast does not require any new money debt issuances over the next ten years as all capital improvements planned over this time period prhakdb)shTwistst army replacement rehabilitation of existing projects which are to be funded through existing reserves and current sewer charges BRALTYRARAM5 14 OPERATING EXPENSES Summary of Operating and Maintenance Expenses 2024 2024 2925 2925 Description Adopted Projected Adopted Proposed W 11111 Administrative Expenses l$ 2720 ffl`C dlk9tion 394733 abjefts J)47 414 Spippltft Materials pt $07 230 Contractual Services Professional Services 7086 Rdeedodng 0 Bdoniten a n ce 0 0 022 0 Utilities 0 R6 772 0 5boStdate ri a l s 0 0 $149313 Cost Allocation 08B Net Operating Requirements $t38 114 716 !� Salaries Wa3gpsoposed budget is set at 66Pull Time Equivalent FITEsitions for FY 2925increase in salaries and wages is fittributable to anticipated salary and bene adjustments for all employee bargaining units Refirementployees of OC San are members of the Orange County Employees FEstpNryemYs%aftidpate in one of tRtse Idlans depending on hire date Older Pd)ffnPBn U hewer, with a lower retirement Pei be estimated employer s required contribution rate, based on employees' base $Ialmridecreased for Plan H 191 employees 915rpdr�enttnd13Plan B P2 to 12 increased for Plan U P156rrerOployees 82 percent to 997 percent for FY 26'B6 contribution rate for Plan H includes OC San's �icoeKemft If employees required contributions GTbiEp iin tdanc®C San I share of employees;arEodlifel and dental insurance plans alihGhl&s6bdliWr wthrence premiums ti1hlEkftM3ra@lC tom» is ol5hptgobLtp osyrdaceretirees fidget approximates C558 per employee. Tuition M&irdn Reimbursements To encourage OGCAepment and training of employees Satnorhamirabhok(tom r-and certi pT(hgraappropriation is set at 066 for FY 2625 Development Pay trrbsfurther promote employee e that increase job knowledge, @Qsabilities Safior hmmpds iEhed this bene obtaining educational degrees and job related ti-6tilks l fitwrfses $1339 for FY 2625 based on estimated employee participation Uniforms This budget projection is for uniforms provided to fiId and lab employees in accordance with employee MOUs TYHARA3M 5 15 OPERATING EXPENSES Administrative Expenses Tpestagff:counts include supplies technical Wkudk and publications ecfhi¢ms+mdall computer items equipment and computer items cost less than $DO per item and exclude items that are capitalized Printing and Publication li-ibesebuai#t opteWdes for in ftbsodaatiorexpeested and re management information system and administrative requirements as well as a continuing demand by the pTiblir and regulatory agencies for information group of accounts also includes costs for photo PH egfents Weethms This category includes ongoing technical and safety ffaining and materials for sta , required training for can*uteritmEdl piatdmmonitoring training to allow for a more adaptive and fixible workforce.00 San continues to place an emphasis on safety,teatletsblip and management training Oppohig Materials Chemical Coagulants: Chemical coagulants are used to enhance the primary treatment process by ffiena�aingandhe solids removal e metering and thickening solids for disposal flm le'sel# to tfotrol hydrogen sul digester gas The costs for these chemicals are expected to imeapadsslightly due to increasing costs expected to remain stable over the next budget year2(ghis budgeted amount for FY 2025 16mitltiorease of 0 8 percent over the 219 20(215ted budget Odor Control Chemicals: OC San uses sodium hydroxide OvAtWemd as the primary odor control chemicals within the treatment plants' f 6adgkid it i cimigb imr sa n odor control chemical used for cleaning the scrubbers Ferrous chloride, magnesium hydroxide, calcium nitrate, and caustic soda are the primary odor control chemicals used within the collection system and work fig! tedbeing the generation of hydrogen sul finical dosage and costs re ffstabditMedEpefformance level and a chemicals at the treatment plants The odor control budget is $0 5 million for FY 2025 2fhly 010 higher than the adopted budget for FY 2625 Contractual Services The major component of this category is biosolids rCrootrdctsltiatrenbpertation costs executed with fins for agricultural reuse of residual sd5hdstetad composting for biosolids disposal costs budgeted for solids removal is $imillion for FY 2BdIRIs have been dried above original targets due to the success of the centrifuges over the belt pim ed costs in fuel and disposal contracts ffeVdDpdw gmvings from reduced tonnage being hauled away. This category also includes appropriations for other y4iEdbmtWkwYp1ng and security saspr\eoWlent 5YDAlclmdio level out periodic increases in sta termytGildpoedion vacancies JabafttJqstbAhddstion line and outfall inspection and cleaning services Professional Services TJrie¢jabup of accounts includes General Counsel Wkwilmmowl oaodw-Ettegpsegrivas consulting other technical consulting services Research and Monitoring The costs in this category consist of contract services to carry out the extensive ocean monitoring program required by EPA Region IX under the provisions of OC San'sGNPQFEE8it)pemorhitoring costs San's contribution to the Southern California Coastal PJWdYR@sxhrcte@roject TYRARAM 5 16 OPERATING EXPENSES Under a joint powers agreement with other Southern C-abtnartiagnw.o-attpkrdischargers OC San'5aodepmov te`ong vessel operational and ocean research and evaluation to develop optimum operating parameters in the trChtmehteg&Vitsof costs is expected to increase slightly from the need to putRdtinxyitaxonomy and mooring services $19 202§et of 97 million Repairs and Maintenance The majority of the materials and services budgets support the maintenance of the collection system and tkfbitrtrathadet phebt overlays and rsaffdnhPkgaisimg purchases 5er nw'At improvements maintenance, and outsourced service contracts and mT3h #e€Ynce agreements 2625get includes repairs and maintenance costs totaling $7 6 million Materials and services for FY 26215cle siphon pleanilngle rehab and replacement services digadtemafkrd�iapgand services to maintain OC San'bet Service agreements for FY 262alude Information Technology maintenance, aaplport licenses and disaster recovery and cybersecurity hardware and software, Operations &Maintenance fiefidgOne contracts for crane certi rdooitarriraigg4etem intenance scale, fie extinguisher , and #iaticsprinkler certi uninterruptible power supply electrical maintenance, ogee trimming Utilities ilihiet oust 1�amatititdgstlis? a signi ol3tmtiagedlldgEtt for utilities is $hticipated to be D million for FY 2625 Natural Gas Natural gas is purchased to supplement the digester gas that is used to run the cThtYatog6nealdjwi �Wdlities $Lrdoi3ldsfor FY 2625 Electricity. Electricity is the largest utility cost iRcwcteTbb0 amity is used to rump4bertptaAtdipgmesses pDOrSatatipnscures electricity under the Southern California Edison gMI2ect Access program from third party supplier, and SCE is paid only for delivering the electricity. This arrangement has allowed OC San to secure a faed rate for the power and should result in savings IdrtT testimated consumption and resulting costs for electrical energy purchased for the plant processes and support buildings is $J 8 million for FY -�8281uding contingencies and electricity re�hisements of all outlying pump stations estimate includes normal operations of CenGen and assumes $00 Q00 in savings due to battery utilization at Plant No. The total budgeted amount for Fmilkia�eFefa'@� is Other Operating Costs Insurance Premiums Other than the budget of $90 for FY -2Q215ie operating section to insure OC San'5tbEewstvtasaJieneral liability and property insurance premiums is budgeted bTVd ralVcai#6ntthe Self Wapbr* kaaiaility in Premium This item is used to maintain the level of accumulated reserves for property and general liability b-cdfarance . The recommended budget is $ million for FY 20115e total estimated expenditures for the insurance program are set forth in bhst9h irthec%dkl5 n Other Operating &► wting Expenses Expenses not chargeable elsewhere, such as annual regulatory fees assessed by SCAQMD and SWRCB #fedjtlete inventory write , and other miscellaneous items are recorded within these groups Df accounts Cost Allocation flatsaajtesents direct labor and bene rradoobk%vices cost allocation to the capital projects where the related work is performed Net Operating Requirements This line item represents the net salary#bages msOW81isTvices related to operating ¢ 11 licl'oDdGhbettivities after bhska do CIP 96838MPAHARAM5 17 DEPARTMENTS SUMMARY fxp4himsby Department Authorized Authorized Proposed Department 2824 2625 2625 General Manager Administrative Services Communications Human Resources Environmental Services Engineering nkineisce LOast Allocation Net Operating Requirements �291 105 !W7 �71 0 RIDES 040 720 ROB 009 570 offi) 007 556 � ;tom 13% 0 1305 260 �69 . 27,�35 065 W 546 $?38 114 716 sw ffjpby Department Department Authorized 21B84 Authorized "E25 Proposed "12-5 General MangertfiJ 0 0 Administrative Services Bla Communications ® B Human Resources Environmental Services B ® B Engineering A A A Operations and Maintenance 13 OME&3etbhents iB 9 ill 1ff2 5 18 DEPARTMENTS SUMMARY Administration Units General Manager >O $udget 7M Stp4 FTEs The General Managerffb Cprovides general oversight of all OC San operations and incorporates functions in the areas of Public Atfirs and Board Services Administrative Services Wget Sttp132 FTEs The Administrative Services Department maintains fiancial oversight and administration of all OC San funds and accounts and is responsible for contract ad-h-kniAcht inistart&eprocurement Services Department also oversees all OC San computer, networking and customer support issues fi widet;acilities maintenance and Communications $Wget 5tp16 FTEs The Communications Department is designed to streamline communication and enhance transparency bqmblqpvernment entities eWploypesialize in meeting management pubid ¢Esdbrub� clear and engaging kAgvs that convey important information abhrirfifia vesotlDs our stakeholders diligently to ensure that our agency actions are understood and accessible, fostering trust and accountability within both our internal and external communities Human Resources $udget 7M Stp28 FTEs The Human Resources Department works with f cAhkEgement and employees to ensure an e and productive employment relationship. The department also provides risk management services to the organization to create a safe, healthy and secure ffnvironment for sta ,00dtxdsitors Operating Units Environmental Services $&bget 8tfT6s The Environmental Services Department manages all emvyohrtuffrytal monitoring , compliance and reporting elements to ensure that OC San meets the r(stokearmhthDcrdl feq*rWtions for tt dreeyc§igEj discharge into the ocean piimdusidsiloymste , sewer system operations land use controls and biosolids and stormwater management Engineering $9dget 3M 91�9124 FTEs The Engineering Department is responsible for the planning and execution of OC San's capital improvement program and asset management program Operations and Maintenance **get 91�9265 FTEs The Operations and Maintenance Department is responsible for the operation and maintenance of OC San's two wastewater treatment plants as well as the sTakn#ary sewer system pipeline and pumping facilities department also provides f#et management services for OC San #ifflb Equivalent Positions MSMIPAHARAM5 19 GENERAL MANAGER Service Description The General Manager reports directly to the Board of Directors and provides general oversight to all OC San I►411' . 4Aunning inm*M ria jememrtl<Am_4OvhisthdiBoard of Directors to establish standards p3iitihbmam&ptgedIHesid Strategic Plan of the agency -NHAR M5 20 GENERAL MANAGER 2024 2824 2625 2625 Description Adopted Projected Adopted Proposed Personnel �gH $53 $ 759496 $ 787,759 Supplies 0 0 0 Koffsadnal Services 0 g Needoirl'mg - - - l doni enance - - - Utilities - - - Other 0 ID 0 0 Total $91 105 $D7 ;?71 Budget Overview 26epFYps2dR2!fDudget for the General Manager fflaftean increase of 7 3 percent 0k@dbpt@&@ffl§et is primarily due to increases in costs for personnel and other professional services RdEftarmeece Objectives Ensure that the Board approved Strategic Plan is implemented Create a new Work Plan for Fiscal Years FY 21324id 2025 Update Two Year Strategic Plan 8Recommend 2:6 Board Adoption in FY 2025 Managing operating expenditures to within 96 to 100 percent of the approved budget Ensure OC San does not exceed authorized FTEs IEigMthorized FTE Positions Executive Managers 2 3irpbTvigorm I s 1 dernti a I 1 Total 4 ftTrends 4 4 4 4 4 3 2 2021-22 2022-23 2023-24 2024-25 2025-26 Z6flMMTYUIR2AM5 21 ADMINISTRATIVE SERVICES Service Description The Administrative Services Department oversees all of OC San's fiance Orark�ftsettn technology, facilities maintenance , and fill tsiilestrategic rtifirts as a liaison to Executive Management dfI008partment includes seven divisions Administrative Services provides leadership and oversight to all Administrative Services divisions GoosolittatedvSeindGe C San expenses that are not attributed to one division Financial Management oversees and administers all OC San'sPiuxj lanasidlnstnirbteasury and dEtdomak3agmai&Bble and payable , payrdibes fiancial reporting fled assets accounting p xD*cbooatitralsng the capital and operating budget process rdpls Management is responsible for contract administration and procurement for all d6gkft Batt this division manages OC San's warehouse, receives and maintains inventory, and pliudd3toomfluolies irgormp ianibTecfaroWgpmer support related information technology assets and services networking and infrastructure, telecommunications service operation and maintenance ,databases and programming smidto��tsdcap #Vcation support Facilities Maintenance ffhn sp¢ieNs ftxpporiagement and maintenance the OC San facilities fdr2A3ed&yatyiAeMplants Additim lquarters buildings the division p ewa&tetatass Remntvch as easements overall property management Fleet Servicesffprovides vehicles and equipment to serve the logistics and mobility needs of all OC San sta . The division ensures vehicles and equipment are reliably maintained and readily available and provides crane services and tour bus operation ZUflMMTYHP2AM5 22 ADMINISTRATIVE SERVICES 2024 2824 2625 2625 Description Adopted Projected Adopted Proposed Personnel 047 228 V2 123181 SHFD 154 Supplies 091 13 309 ,740 0 Kofdsadnal Services $47 �00 $ 055 0 Needogtng - - - - l doni enance �93 700 0 023 0 Utilities IB02 0 170'M 0 Other 0 513 702 13 Totals lid ,720 Budget Overview Abe prcrposhm2n budget for the Achniais2rhtive Services Department re 6 06rca&phedease from the FY 2025 FgMthorized FTE Positions bT*tncrease is primarily due to an increase In FTE.5 pev2dbnnmhpdits items minor furniture and #iftairdng and meetings Executive Managers 1 trWeE§onal services Managers 4 gAavide theidrtmr fece agreements fo the facilities maintenance and f4et services 3:rp&$$orals 75 functions being transferred to this department rAtinance 7 ldefi ffineece Objectives Kdwio�dtrative 4 Manage operating expenditures to within 96 to 100 percent of the approved budget Technical Services 1 Comply with the California State Government Total 132 Code 100 percent of the time with all treasury investments ftTrends Submit the annual sewer service fee property parcel database to the County in time for 140 133 placement on annual secured property tax bills 132 Continue the cycle count program and maintain a 97 percent accuracy rate or better. 120 109 109 Replace obsolete desktop, mobile, server 102 103 C-en*uletwork infrastructure for OC 100 San'ftcomputing 2021-22 2022-23 2023-24 2024-25 2025 26 Cyber Security Awareness Protection —report ffotivdwssovefall phishing campaign Maintain a Work Order backlog of less than 5 weeks TYlff25 23 COMMUNICATIONS General Manager's Office Administrative Services Board of Directors General General Human Counsel Office Manager Resources Environmental Services Engineering Operations & Maintenance Service Description Communications Administration is designed to streamline communication and enhance transparency between g4W izhbW0eeseeting management q�9imkjtizitiveoW enigWika haidsTeges that convey important information Our team works diligently to ensure that our agency actions are understood and accessible, fostering trust and &oountabditya ithftd ibttstaartid ntovffflsaied t )deBmAydommunities Services and Public Af irs Divisions Board Services j rovides a high level of customer service through the Clerk of the Board tfeo . The Clerk of the Board fkopla esepubdinprLmtdbpcbeeadrs�;ttredelgtfflarUW by eiteht records of OC San as their o pvEpEdWmg amcd peoehiiliigg��pndas and notices in accordance with legal requirements ferartmsihs for records ffiieg for Statement of Economic Interest fingseiving and processing sigubpoiesias and complaints fbEchdhgahiata(i)Qg5ansters of the Board of Directors appointed committees and historical events Public Affirs provides services and implements programs to meet the communications and legislative needs of both jail tm�satra�llaiir�nie�c�imhsth��i�r&tions c-empiDgilitynddfidetten and outreach adrpoebtalevelopment j " development iffoslgbabisto create a comprehensive communications program that promotes clear and transparent §dnaeraiireieeds) ran d/itinladbidetdithe understanding of OC San 's mission to protect public health and the environment -NHARAM 5 24 COMMUNICATIONS 2024 2824 2625 2625 Description Adopted Projected Adopted Proposed Personnel 02 700234 01 Supplies is 0 169595 11 Koffsadnal Services p Weedogtng - - - l doni enance - - - Utilities - - - Other I9 Total $109 570 01 411W Budget Overview 16e pFd'pos(M25 budget for actEp ai tiam o� 10 8 percent dbpt@&@W§et is primarily due to increases in professional services Rdeksumeece Objectives Maintain the Special District Leadership Foundation FLEistrict Transparency Eafdiof Excellence Ensure that the Board approved Strategic Plan is implemented Managing operating expenditures to within 96 to 100 percent of the approved budget Maintain the Special District Leadership Foundation �LE[F'istrict Transparency Cafdiof Excellence Respond to 95 percent of public records requests within seven business days Provide services and implement programs that meet the communications needs of OC San's internal audiences by producing a minimum of 500 internal communication pieces Provide services and implement programs that meet communication needs of OC San's external audience by reaching a minimum of 1300 people horized FTEPositions F ive Managers1l$orim I s 6 Kderio�dtrative 7 de nti a I 2 Total 6 ftTrends 18 16 16 16 16 14 12 12 12 10 2021-22 2022-23 2023-24 2024-25 2025-26 Z6flMMTYU1ARAM5 25 HUMAN RESOURCES General Counsel Office Service Description Board of Directors General Manager General Manager's Office Administrative Services Communications Environmental Services Engineering Operations & Maintenance HuMee deistrahaest idephathient responsible for Human Resources and Risk Management grbedsadTKhurdbsmnAo0ng OC San '�dkwaiaipicqgpkad administering programs that a edemjaltyiiaotepliant and ensuring a productive and safe workplace that attracts and retains top talent ffeeoppratidralresilient workforce The Human Resources Department is committed to a workplace gTbis�ir ryWntas>d*zpjaaldesieatpt4igrment decisions and safe work practices partner and advisor to the General Managerffexecutive sta ftDfit&§nsWkWWgbnts quality services Human Resources serves as a strategic partner to departments on employment matters and organizational programs The division ensures compliance with labor and employment laws and develops programs and services designed to Cdltraetop motivate ,JY tbrbdain a high performing workforce that meet the needs of the organization bNyfoaspopisiiaeirig rvices and expert consultation in key areas 0hbkpJeW9ArWud beptie#ati o n s Jq9&dbddni§IJ0trabuagement and employee engagement strategies the division is responsible for developing and implementing organizational policies and procedures ensuring alignment with legal requirements and evolving business needs FhsREMim3bU*Wepi6otecting the wellbeing of employees through robust safety and health programs p66aWtddw0Edi9Dns trtiutkhpAensj lieirnt iavelstiipah[sitrtal hygiene assessments cThetsectftEraswetractors and develops and implements injury and illness prevention strategies itubina�ti�teiit� I�¢� rs p�ngYei�ts and injuries M11httfirwgared sjmbnsatigestie mergency preparedness and response e developing and leading emergency exercises and minimizing organizational disruptions in the event of a disaster. Additionally, thaiit0f bWafacisesesponsible for physical security contract oversight infrastructure surveillanceOqgeeabeowcjaldtenspfepemdandseb3sure business continuity and a safe and secure workplace. ZIIflMMTYflARAM 26 HUMAN RESOURCES 2024 2824 2625 2625 Description Adopted Projected Adopted Proposed Personnel $D0 575 OE9 .162 Supplies is 11 511137 0 Koffsadnal Services ID I Needogtng - - - l donirenance 13 0 p 0 Utilities - - - Other 13 0 R 13 Total 0 "S 1111 Budget Overview TbepF`S budget for the Human Retiouraces3 Department re 7 percent 22mdeptfrdrbddgEftY 2025 increase is primarily due to the addition of supplies Meks=eace Objectives Work with upper management to resolve issues at the lowest level through focused training and ftdmesolution techniques Complete labor negotiations with all bargaining units Full implementation of a centralized training program and employee development plans Wri,bbtlre training level of service of 40 per employee. ImmodIMSi of safety training and contractor safety orientations Ongoing evaluation of safety and health programs through third party safety audits pEEriubicke0spExfbnsance indicators Ongoing implementation of physical security plans on new designs and renovation projects Develop and conduct routine emergency response exercises and facilitate emergency response training rM orized FTE Positions Executive Managers 1 Managers 2 &trp&si$or6aI s @ K'rllerini�ltrative 4 fide ntial 1 Total 8 ftTrends 29 28 28 28 28 27 26 26 26 L.2021-222022 23 2023-24 2024 25 2025 26 TYUTARAM 5 27 ENVIRONMENTAL SERVICES Service Description The Environmental Services Department manages OC San's Iad3uriab=TeistEiviaeenitoring environmental compliance, prmtreatrrpJiaheefc(PpexAiTiq elements to ensure that OC San psi the requirements of federal and local regulations for ocean discharge , aisternhadycltng industrial wasteOEUVktbdetbaterurrhanagenment Environmental Services Department consists of four divisions Environmental Services Administration provides leadership, aapipmEtnagement oversight for the Department to accomplish OC San's Strategic Plan and departmental annual goals Resource Protection provides regional enforcement of federal pretreatment regulations and ensures continuous improvement in OC San'fjielnbias dscwse control program to sustain water recycling and bene #ta i�ier��hega�fl�lrai i�i m¢aer rtrt®I laoMbVD(b Siamst e 's fpni b#aEA inWonment � a�rttp�ll r�tq�ocaa� 0ce-iibrM19nitoring �atimalq�� research services to support OC San 's operations and to protect receiving water quality.The division is responsible for collaborating with OC San 's coastal monitoring partners and advancing analytical innovation in key regulatory areas such as compounds of emerging concern and toxic air contaminants EFfvir&m9WntatyC6mp0haicee group is tasked with ensuring adherence to environmental regulations and permit conditions for ocean discharge, ato ndischarge ftsaitary sewer over �d advocates for responsible and pragmatic environmental regulations relevant to wastewater treatment and resource recovery. ZUflMMTYHARAM5 28 ENVIRONMENTAL SERVICES 2024 2824 2625 2625 Description Adopted Projected Adopted Proposed Personnel $7 ,;Z68 $63 109 $87 269 Supplies $ 7 it Woffsaidnal Services 0 EMsei#oatn g Is R+4o&6nance 098 Utilities - - - Other 11 I� Total o SM rp69 Budget Overview 16e pF(Ypos'&25 budget for the goteroamental Services Department re 9kqmasenbf from the FY 2025 adfbptecicrlmadgeis primarily due to le"irsm ogtEdervices 06eh§4ti1agory operating fees ftekarnesce Objectives Manage operating expenditures to within 96 to 100 percent of the approved budget Ensure that reporting divisions achieve no less than 90 percent of individual performance objectives Ensure that all environmental compliance reporting requirements are met on or before required submission dates Conduct audits of all major environmental permits at least once every three years Complete 100 percent of Safety Scorecard requirements each quarter. E'SMthorized FTE Positions Executive Managers Managers &trp&vi$orm I s 6 Kdmioi�ltrative Technical Services Total 9 ftTrends 0 98 97 97.5 96 95.5 94 93 93 M 1 3 0 2021-22 2022-23 2023-24 2024-25 2025-26 TYU1ARAM5 29 ENGINEERING Service Description The Engineering Department is responsible for the planning and execution of OC San's Capital Improvement Program tlsbiaridiia comprised of fie divisions Engineering Administration provides management to all Engineering Divisions Planning is responsible for developing and maintaining a comprehensive Capital Improvement Program for OC San o"g ted�caobkyede#Ldiar0eatshanges arPJaW�dhgois)giEsOmpftduftitiOC San 's Asset Management program to ensure that required levels of service are met by performing planned repair,baement of facilities at optimal lilftiGokii3jastts responsible for California Environmental Quality Act preparation and review , mcatlpet n *ge@IbTemftexations Brngepthtd ia4errtbettimely delivery of planning studies and capital and facilities repair projects Wsijdes technical leadership engineering design and quality assurance, design standards development and read a*tgmaiiolorogramming Construction Management, pcm its Gbffdi*dasOeatierxdineering and other technical support for construction projects ZUflMMTYHR2AM5 30 ENGINEERING 2024 2824 2625 2625 Description Adopted Projected Adopted Proposed Personnel V5 484 SM 129 Supplies 0 �21137 Wofissahual Services 'b adeedwfng - - - Rdoniten a n ce 0 0 (D Utilities - - - Other Total $!7 ,$36 lid 01 Budget Overview 16e pF(Ypos'&25 budget for the flotfieewiRg Department re iaredeptfrdrbddgEHY 2025 increase is primarily due to an increase in personnel r-oRathingoftwmale meetings programing consulting ftekatnesce Objectives Expend 90 to 105 percent of project annual ffwpital Improvement Program cash Manage operating expenditures to within 90 to 100 percent of the approved budget Ensure that reporting divisions achieve 90 percent of individual performance objectives ?eeparCap6tzdl maintain a 20 Improvement Program coordinating condition 4*Wtrequirements levels of service, and projected capacity requirements EISMthorized FTE Positions Executive Managers 1 Managers 4 &trp&vi$orm I s 9 K'rlerini�ltrative 13 Total BtpTrends 12s 123 124 124 124 120 116/ 115 2021-22 2022-23 2023-24 2024-25 2025-26 TYU1ARAM 5 31 OPERATIONS AND MAINTENANCE Service Descript_ The Operations and Maintenance RDepartment is responsible for treating wastewater ,reusing or disposing of the trpptual1iiuqs6ada0emanod sUppEaid0alsall treatment facilities maidtfbnipg)VixfirEgnitary sewer system pipeline and pumping facilities bet management services The Department consists of seven divisions Operations and Maintenance AdministrationlordMidiEmlEadership and oversight to all O Collection Facilities QperaticmsrahchNh&tentmcegional facilities which include gravity r¢jdsnla5tietOdor and Corrosion Control System fEMCSnates with Resource FCaibEtt(bicn toN4Bieteeacmme pdIaode cNMties I b ha3a -ti I4ofgr pEbIrm its maintenance activities as well as reliability engineering for both Plants and the Collections System Plant No.1 and Plant No . 2rDMlatiiosible for the daily management of the wastewater treatment paid bbbgkEii$ltosc e'atrhprdoffEdd!sading processes gkbipMtmfitE6dnclude ensuring compliance with all Federal and State regulatory permits t&6dbbo#EdihgomwafrmorfisPatogremand maintenance work No.1 and Plant No ti�NtbpeAfften$oatbaOrswTEdvthtL-d(R"e�niof spgTdi System for recycling Plant No.1 and Plant No .2 Maintenance Nibmiffor civil r0ftdErtrescandfrtia> ntwnstCaetrhnehiGpla tiand pump stations facilities facilities ll'1E25 32 OPERATIONS AND MAINTENANCE 2024 2824 2625 2625 Description Adopted Projected Adopted Proposed Personnel %9 1354 $UD 070 $m %9 992 Supplies 902 31 $4M 420 981 Wofdsadnal Services 17,797290 $95 791 111 Weeidogtng - - - ldonienance 31777949 Utilities 098 W2 Other 177�78 11 13 AJ Total floe $48 546 $42 787529 Budget Overview 16e pF(Ypos2R25 budget for the "erations and Maintenance Department re 8QDeddecrease from the FY 2025 bThipldtcrease is primarily due to the transfer of facilties maintenance and f#et services to the Administrative Services depaertment Adeaarmesce Objectives Achieve zero enforceable compliance actions for water,aaWdsir requirements Achieve 100 percent compliance level of 90 to 100 percent of the Levels of Service targets Manage operating expenditures to within 96 to 100 percent of the approved budget E'SMthorized FTE Positions Executive Managers 1 Managers 3 &trp&vi$or6a I s r0boasce Kdeiio�dtrative 6 Total ftTrends 300 287 286 286 287 2 265 80 266 L 260 2021-22 2022-23 2023-24 2024-25 2025-26 TYU1ARAM 5 33 six CASH FLOW PROJECTION Orange County Sanitation District Consolidated Cash Flow Projections Ref Description Mlim Welim amlim Enlim amlim a@lim Revenues 1 General User Fees 9 0 P P A 9 2 Permitted User Fees IB P li 9 P P 3 IRWD Assessments P 9 P P A 4 SAWPA Assessments $ 9 P P 5 Property Taxes P 0 P 9 $ A 6 New COP Issues 7 Interest Revenues P P I$ P P P 8 Capital Facilities Capacity Charges P P P P P $ 9 Other Revenues 9 P P P P P a Revenues P P P B • • Requirements 1 Mtee Exp P P P P P P 2 P-Wpital Improvement Program P A P 9 P P 3 006aalsgs P P P P P P 4 Allocation for Future Rehabilitation P 0 0 9 P 5 COP Debt Service 9 P 9 P 9 9 6 MmaIn(HkMldfds:)ng P P P 7 Other Requirements P 9 P $ $ $ 9 Requirements P P P P P P 9 Regainaesents P P P P P P Accumulated Funds Beginning of Year P P P P B P 3 End of Year P P P P 0 P 2 Consolidated Reserve Policy Y P i li P II 8 serve Policy P P P R P Y Sewer Service User Fees a Avg SFR Annual User Fee P $ $ # 9 Percentage Change $ Z S 91 91 91 a Equivalent Dwelling Units P d 9 $ P P 2 SFR Connection Fee $ $ $ $ $ $ 8 Outstanding COPS P P P $ $ $ Reserve Policy_ 9 %&xt Year Operating Expense A 9 0 9 A A 0 Vext Year Operating Expense 0 P P P P 8 3 TWA Year AUG COP Svc 0 $ P P 0 P 3 Werage Ten Year CIP Balance P P P P P P 3 11111111YiE&,rding COP P P 9 P P P a SIMunded Insurance P iD iD iD 9 9 B Reserve Reduction 3 Total 19 P P P P P COP Ratios 8 Sr Lien Coverages n 1 B B 9 ® B 6 a�81 ETYf MAM5 1 CASH FLOW PROJECTION Orange County Sanitation District Consolidated Cash Flow Projections Ref Description slim slim E&lim ER@lim Mar Total Revenues 1 General User Fees 2 Permitted User Fees 3 IRWD Assessments 4 SAWPA Assessments 5 Property Taxes 6 New COP Issues 7 Interest Revenues 8 Capital Facilities Capacity Charges 9 Other Revenues a Revenues Requirements 1 80ee Exp T r-Wpital Improvement Program 3 laalsgs 4 Allocation for Future Rehabilitation 5 COP Debt Service E6 fflmalaG.liahldfdsong 7 Other Requirements 8 Requirements 9 Regentosents Accumulated Funds 9 Beginning of Year 3 End of Year 2 Consolidated Reserve Policy 3 Pderve Policy Sewer Service User Fees Avg SFR Annual User Fee 9 Percentage Change R Equivalent Dwelling Units z SFR Connection Fee R Outstanding COPs Reserve Policy_ 9 %ft?xt Year Operating Expense 0 Vext Year Operating Expense 3 2@0xt Year AUG COP Svc 8 Werage Ten Year CIP Balance 3 111111111tl5%nding COP a SIMunded Insurance 9 Mobrb 8 Reserve Reduction 3 Total COP Ratios 8 Sr Lien Coverage2Sin 1 P P P P P P P P P P 9 P P 9 P P P P P P # 0 P P P P P P P P Q P 1� 1� P P P P P P P P P P P P to P P P P P P P P P P P P P 8 9 9 9 iTYlff25 R PROJECT SUMMARY 26145ct Summary FY Item Rehabilitation and Replacement Strategic Initiatives Additional Capacity Regulatory Total Budget Authority Collections Facilities Skil* 1 xndling I$ N Support Facilities # 9 Utility Systems ID Liquid Treatment Headworks !la !la Primary Treatment 0 Ocean Outfall Systems !� Secondary Treatment Liquid Treatment Subtotal 11 Other Information Management Systems Ilf Equipment P P 11 P 11 Research II p &tl dtgPlanning Others Water Management Projects Other Subtotal R Grand Total P p p .vings A Allocation for Future Rehab. Proposed Net CIP Outlay l TYU11ADV M 5 A SUMMARY OF CAPITAL REQUIREMENTS Other: 73.E 04 Liquid Treatment: 70.8 (24 Solids: 17.9 (6.2%) Support Facilities: 40.7 (14.1%) Utility Systems: 23.3 (8.1%) Collection Facilities: 62.5 (21.6%) Ital Improvement Program Outlay by Process 0 Million $let CIP Outlay 3Wion Strategic Initiatives: 37.2 (12.9%) Additional Capacity: 28.2 (9.8%) Regulatory: 18.8 (6.5%) Rehab and Replace: 204.8 p0 ffi) , $Wtal Improvement Program Outlay by Driver 0 Million $let CIP Outlay WWion ll'tff1 25 A SUMMARY OF CAPITAL REQUIREMENTS ffintle�ityroSpdp talrRpquilearreaMProjects Project Number Total Project Budget Proposed 2025 Outlay Future Outlay Collections Facilities Edinger Pump Station Repl 3 ID 18 Slater Pump Station Rehab. 4 0 North Huntington Beach Sewer Rehab. 9 0 Santa Ana Trunk Sewer Rehab. 2 9 Greenville Trunk Impr. a 8 Taft Branch Impr. 9 (� ¢ fRlgeemtia Sewer Facilities Demo &Rehab -2 {� ®dl\na Canyon Sewer Rehab 2 R! g Rdid tir Holder Artesia Branch Rehab 6 0 0 Westminster Blvd Force Main Repl 8 0 Rehab.of Western Regional Sewers 6 9 I! BNidening Project Impacts on OCSD Sewers 6 (3 Seal Beach Pump Station Repl id Id! Seal Beach Sewer Facilities Impr. 6 Crystal Cove Pump Station Rehab. 6 #i Bay Bridge Pump Station Repl 6 p lit Newport Beach Pump Station Pressurization Impr. 6 0 6 East Coast Highway Sewer Rehab. 6 Fairview Sewer Rehab. 13 MacArthur Pump Station Rehab. id Main Street Pump Station Rehab. i fliqlEbrii 6 13 III MacArthur Force Main Impr. 8 0 8 13 0cff gTL8tiwer Rehab 6 9 Collections Facilities Total 01 TYIE£ 25 a SUMMARY OF CAPITAL REQUIREMENTS Erweall, qynt)6?z4eift1Mpqaimn7wWProjects Total Proposed Project Project 2625 Future Number Budget Outlay Outlay Equipment Equipment Purchases Equipment 9 Equipment Total 0 Headworks Headworks Rehab'ht P ® 0 Headworks Total p Primary Treatment FRbmbW l$ed -gRbpI a a FRbmbWl$ed (Reliability Impr fit P a 0 MdeifAaiRehyflSed it P a IR Primary Treatment Rehab,2)t P g 1 la Primary Treatment Total 1p It Secondary Treatment AbAhabed Sludge ht P ® Id 0 fitdRling Filter Media Repl E p 111 9 Activated Sludge Aeration Basin Rehab,2)t P ® 9 is 0 Secondary Treatment Total Iaf / P U§ds1ibandling ffeeitiWell Biosolids Mgmt 3 0 fll 0 Interim Food Waste Receiving Facility 2 ID 1 0 IbWster Repl a 13 p Digesters Rehab2it P 2 Truck Loading Bay Odor Control Impr2t P e ¢ ffiih,�s1i�n�8taj P � � Ocean Outfall System Ocean Outfall System Rehab. 7 0 B p Ocean Outfalls Rehab. 3 {D Chemical Systems Rehab23t P a 6Wfgpe3d sjRD+aib 2)t P ® ♦3 Ocean Outfall Systems Total p SUMMARY OF CAPITAL REQUIREMENTS Small. aeftb6gsilphaIrli pttProjects Project Number Total Project Budget Proposed 2625 Outlay Future Outlay Utility Systems Digester Gas Facilities Rehab. 4 ® g 13 flen Gen Engine Overhauls at P 3 is a 13 EePpmt Buildings Seismic Impr sat P ... 3 13 5 Public Address System Repl 3 ® 0 12 F<nMbT1MErtftI*0dhptems ... 4 g 9 Electrical Power Distribution System Impr. 9 g 9 Uninterruptable Power Supply Impdat P 2 0 !H &iTdD GantEIr( E8y&Wton at P a ® 8 Headworks Electrical Distribution Impr2t P 2 ® 13 8 Utility Systems Total P p Information Management Systems Process Control Systems Upgrades a 8 Rn6outzlgmSystem 2 1 9 Process Control System Alarm Optimization g 0 5 0 Information Technology Capital Program MC (D # 9 Information Management Systems Total It p li SdanagiVianning Planning Studies Program 6'irUDIES p $ 8fiaalboPlanning Total p Water Management Projects GWRS Final Expansion Coordination a 9 Water Management Projects Total p Research Research Program RESEARCH (U (i Research Total p It ; TYII£l 2 5 A SUMMARY OF CAPITAL REQUIREMENTS Sweall, ernb69i1W a1i pqukmw itProjects Total Proposed Project Project 2625 Future Number Budget Outlay Outlay Support Facilities nARratory Repl a CenGen Monitoring System Impr&IcP 2 g Ia 0 p Small Construction Projects Program w 111 0 111 Headquarters Complex a 0 0 &&ttyRapmeter Security ht P B i) Support Buildings Seismic Impr.'ht P 2 9 B 13 Administrative Facilities Demo. 9 0 8 0 dMmh mm )0atrlaelocation 2A P 2 9 9 $ roaisce Complex at P a 0 ■ Oxygen Gas Generation Facility at P 2 R 0 Waste Sidestream Pump Station A ImprIt P 6 13 is Support Facilities Total p * 0 Others f,SapiiiEddmprovement Program Mgmt SPS 0 9 Others Total Q 8 Total Treatment and Disposal Projects 8 Total Collections Facilities 8 0 p Capital Equipment Purchases A 59,TA8 Total Capital Improvement Program Budget $88 719 tea&Isgs P Proposed Net CIP Outlay $gg TYURRAM 5 a CIP PROJECT DETAIL SHEETS WojebleName CenGen Monitoring System Impr&IloP1 sto Project Category Support Facilities Project Status Description This project will replace the obsolete Central Generation engine and generator vibration ronitoring systems at Plant Nos &lo ;IEhabtjpmrarteaw lition monitoring systems y>tfl�e a L'.eqffmem thecbplfiuiiie0iddiksnal instrumentation to monitor auxiliary systems Sawn New Support Facilities Thu?aqdging pitffktion monitoring systems are obsolete and need to be replaced fing pressures are currently measured manually using a portable analyzer. The new monitoring systems with additional instrumentation pgetiulaoW§inesystems will help provide early warning of adverse conditions and will enable kiadEk&fqamnvmstudn�pfe support operational and maintenance decision ,reliable operation Financial Consideration The project$estimated construction contract cost is Budget Projections Budget Phase Cost to Date 2025 Proj Dev Prelim Design Design Construction Commissioning Udse Contingency Total 2026 2026 2028 2028 Thereafter Total Project Budget - R � R R R TYIff1ARAM 5 CIP PROJECT DETAIL SHEETS EMajebleName 8Wlic Address System Repl Project Category Utility Systems Project Status Description This project will install a new public address system at both reclamation plants and the seven tfftatWiiisbie &et0tach will integrate into OC San'fizck4lhdrrahBt syetsogiisgch as Satbn New Utility Systems The current public address system is both nearing the end of its useful life and doesnt provide the full desired coverage of OC San'f pi &g3dhm Osting system is becoming increasingly di becoming obsolete.A functional public address system is critical to maintaining safety at the reclamation plants and critical pump stations during emergencies Financial Consideration The project$estimated construction contract cost is Budget Projections Budget Phase Cost to Date 2025 Proj Dev Prelim Design Design Construction Commissioning GWse Contingency Total TYURRAM 5 2026 2028 2028 2028 Thereafter Total Project Budget CIP PROJECT DETAIL SHEETS EMajebleName ®etllatim@idhl&M3tems 932 Project Category Utility Systems Project Status New Description f, - „n This project will replace the Central Generation and Service Center medium voltage switchgear, motor control centers and other power distribution equipment along with cabling infrastructure at Plant No. This project will also construct a new Power Building C and demolish the existing power building at Plant No.T2ie new power building will include all new electrical equipment jszfibdhggg tansformers gt6dbadbMrplace&eeffds and battery system Utility Systems Setbn The electrical equipment and cabling infrastructure inside the Central Generation Facility and Service Center is a o®dbthMtReveEFrdBsfiIdirouCIKteiAldlediiramwopiurdrieratso approaching end of useful Iife.A new Power Building C will ensure long term electrical reliability for Digesters P,Q ,R and S while simplifying construction sequencing and replacement of these digesters in the future. Financial Consideration The project$estimated construction contract cost is This project will not have an impact on operational budgets gttEfrbmeesedti a&�siag(Bult of changes in the project elements identi Budget Projections Budget Phase Cost to Date 2026 2026 2028 2028 2028 Proj Dev Prelim Design Design Q Construction p Commissioning GWse Contingency Total 01 Thereafter Total Project Budget - 9 - 9 6 TYURRAM 5 CIP PROJECT DETAIL SHEETS EMajebleName VA30iWell Biosolids Mgmt Project Category 13d§dsftb ndling Project Status Description This project will construct a deep well injection facility at Plant No.1 for the storage and disposal of bTdrm)lielsiIitytoNobiuIlien diuW6dscfrgimlogicaI formations Reclamation Plant No.1 and No .The major process equipment will include a receiving facility for NaidsdidkoscdiEtming facility injection pufts fish water facility , and an electrical building Sawn Cfi iwdk0vGtGr6dn produces approximately 550 wet tons per day of Class B dewatered biosolids bTbedhiablimp dnl.BtltRcdtjeQf 2Fndvarious composting facilities within California approximately 6@0 000 . Potential future regulations could limit OC San 'MaWitydoebleilosolids for la[ddeEpDpkdhtn)ectiod oPtivoflWsdasiltlqosud\AMdDiosolids are not guaranteed a reliable0m*alltWetidnej tiemirfgs bn dstklIca tt+lbydd6aEfigfing and hauling of biosolids Financial Consideration The project$estimated construction contract cost is Budget Projections Budget Phase Cost to Date 2025 Proj Dev Prelim Design Design Construction Commissioning GWse Contingency Total New U Solids Handling & Digestion 2026 2028 2028 2028 Thereafter Total Project Budget TYURRAM 5 T2 CIP PROJECT DETAIL SHEETS EMajebleName GWgen Gas Generation Facility at P2 Project Category Support Facilities Project Status Description This project will install an oxygen generation facility for the secondary treatment process at Reclamation Plant No. This facility will serve as the primary source for the oxygen and the existing liquid oxygen storage and supply system will provide reliable backup and peaking service . The generation facility will include sound attenuation to mitigate equipment noise. New Support Facilities Sawn OC San currently purchases liquid oxygen to supply oxygen needed for secondary treatment at Reclamation Plant No. 20nsite oxygen generation will increase the reliability of oxygen supply ,mitigate future liquid oxygen supply risks bffr¢hpBvA compared to the purchase of LOX Financial Consideration The project $ estimated construction contract cost is Budget Projections Budget Phase Cost to Date 2025 Proj Dev Prelim Design Design Construction Commissioning GWse Contingency Total 2026 2028 2028 2028 Thereafter Total Project Budget TYURRAM 5 IS CIP PROJECT DETAIL SHEETS EMajebleName Waste Sidestream Pump Station A Impr3112P2 Project Category Support Facilities Project Status Description This project will replace the Waste Sidestream Pump Station A F#EffiJffisthe wet yveptdDfblme#Nxi iepiteteatdiaatlii.,Wtpmmdt IttiEa*psfietfie piping Md@e iAMSSd?&tructed by Project 88A $awn New Support Facilities Ahi5 Wt SSRSI in a recessed area within Tremblay Tunnel that is subject to 6Mdiragpumps are tequirepletatioT tigatb ralisdi#ed risks to assuring long Structural rehabilitation and Ambit dg#e(l%F*%ent is required due to age and associated conditions §ild(Eofrt 0torywQlaprevent recirculation of scum which is currently causing process challenges ff tsAlting in additional maintenance e Financial Consideration The project$estimated construction contract cost is This project will not have an impact on operational budgets This project is being converted from Project No.Xdo Project P Budget Projections Budget Phase Cost to Date 2025 Proj Dev Prelim Design Design Construction Commissioning GWse Contingency Total TYURRAM 5 2026 2028 2028 2028 is Thereafter Total Project Budget CAPITAL EQUIPMENT BUDGET SUMMARY Division General Management Admin Financial Management obwlftiels Mgmt Information Technology Fleet Services Resource Protection Environmental Laboratory and Ocean Monitoring Design Mollection Facilities O Maintenance Support Services Plant No.Dperations Plant No.Maintenance Plant NoWaintenance Total Proposed Capital Equipment TYU1AR49U 5 Proposed Capital Equipment Budget 2925 3xucks Other Mobile Vehicles Eq 09410000 09410001 Machine Eq Sfools 09410002 Comm Equipment 09410003 Continued to next page T6 CAPITAL EQUIPMENT BUDGET SUMMARY Proposed Capital Equipment Budget 2925 Division Sistr Test Equipment 09410004 Safety iBiq 09410005 1* Fix &q 0941000G Computer Equipment 09410007 2025 Proposed Budget General Management Admin p 0 Financial Management 9 9 [ Tiets Mgmt (D (D Information Technology Fleet Services $ Resource Protection (� Environmental Laboratory and Ocean Monitoring Design l bIlection Facilities O 6 Maintenance Support Services Plant No.*Operations 0 0 Plant No:Maintenance Plant NoWaintenance 9 Total Proposed Capital Equipment A 0 p ¢ Continued from previous page TYURRAM 5 CAPITAL EQUIPMENT BUDGET DETAIL Division Equipment Type Proposed Equipment Budget 03eneral Management Admin Property Purchase 0 Total 0 g=inancial Management Customer Portal i3 Total i3 rtaWffiMgmt OpenGov Procurement Software 0 Total 0 gnformation Technology Automated Records Retention i3 gnformation Technology SBITA renewals 0 gnformation Technology Metwork TAPS for ICS and O 13 gnformation Technology Zero Trust Network Access 13 gnformation Technology Outdoor wireless AP Replacement 13 gnformation Technology EEIoud Backup B gnformation Technology CCTV Husky Server B gnformation Technology Beffsword Reset Solution g Total 0 g leet Services Portable PumpONEWWpuried g leet Services Portable Pumppumied 0 g leet Services 10ectric Cart 13 g leet Services GeneratorOW d 13 g leet Services KEY MANAGEMENT SYSTEM !111 g leet Services BEVELING SCISSOR LIFT g leet Services PERSONAL DRIVEABLE MAST LIFT g leet Services RHETMGSTOM EQUIPMENT p g leet Services HEAZ DVEfdY VEHICLES 13 g leet Services NARROW ARTICULATING BOOM LIFT Total Wesource Protection ii1dbb�tafentry photone evidence Wesource Protection HACH Autosamplers ID Total ¢ (Environmental Laboratory and Ocean Monitoring Oil and Grease Extractor 13 (Environmental Laboratory and Ocean Monitoring P4LddrG Mam meter (Environmental Laboratory and Ocean Monitoring Ocean Monitoring Program Research Vessel (Environmental Laboratory and Ocean Monitoring Benchtop Fume Hood (Environmental Laboratory and Ocean Monitoring POIDir Chemiluminescence Detector I3 (Environmental Laboratory and Ocean Monitoring HACH Autosampler 9 Total TMffIA2A"M5 IV CAPITAL EQUIPMENT BUDGET DETAIL Division Equipment Type Proposed Equipment Budget design ABB Commissioning Systems Total l9ollection Facilities O Emergency Capital Critical Spares for plant and collections 9 Total 9 Maintenance Support Services ROTALIGN TOUCH WITH COMPLETE BRACKET KITS Maintenance Support Services Em Ea V83Tthge S Maintenance Support Services IDffasound Maintenance Support Services flatiagoWtAmnslyzer 13 Maintenance Support Services ffl2&nkiM_VMachine Maintenance Support Services Ercolina Angle and Pipe Roller 9 Maintenance Support Services Burr King Vibratory Tumbler p Maintenance Support Services RDI Data Acquisition Unit p Total $ plant No lDperations Serome ¢ Total ¢ Ill No 'Maintenance Oil Lubrication Work Center tD Ill No 'Maintenance Emergency Capital Critical Spares for plant and collections {D Ill No 'Maintenance 8wer Gear Box and Rotating Parts Is Ill No 'Maintenance Cooper LSVB Intake Manifolds 11 Total U)lant No 24aintenance Emergency Capital Critical Spares for plant and collections {D U)lant No 2vlaintenance Trickling Filter Critical Spare Parts U)lant No 2,laintenance Additional Bar Screen Work Platform ¢ U)lant No 2,laintenance Portable External Flowmeter System U)lant No 2,laintenance Aart4l2lerl%iltwork Cable Testing U)lant No 2,laintenance Calibration Work Station Q U)lant No 2,laintenance Cooper LSVB Intake Manifolds Total 9 Total Proposed Budget 01 TYIHIARA"M 5 X8 LEVELS OF SERVICE ENVIRONMENTAL STEWARDSHIP 2V 12823ts; Levels of Service Target OC San will protect public health and the environment Compliance with Ocean Discharge Permit Too ?Do f1q)le(aet1hendrbeatia.Eho 81 MGD Up to 10 MGD hUgtg zEmce audit 0 v Per permit per audit Respond to corrective actions within regulatory timeline for 700 700 air,EioWJ&ater compliance audits Comply with Fleet Air Emission Regulations To0 ?D0 Number of odor complaints under normal operations 11 events for both 45 per events per plants combined treatment plant 10 events for collection 42 per events for system collection system Sanitary Sewer Spills per 100 miles 0 <2 1 Compliance with core industrial pretreatment requirements V0 ?D0 OC San'fiNsWs and biogas will be recycled fFhfidd3EGpu9jcndwater Replenishment Too ?D0 System dehy? reuse biosolids during normal operations ?00 T90 WASTEWATER MANAGEMENT OC San will be a good neighbor and will be responsive to its customers Respond to collection system spills within 1 hour of 100 ?00 fiefion Respond to odor complaints Within 1 hour in plants Within 1 hour in plants Nttri�n i 84 IaP[itlTi3n i i24 collection system collection system Respond to public complaints or inquiries regarding 700 T@0 construction within 24 hours Respond to biosolids contractor violations within one week V0 ?D0 of violation notice Respond to Public Records Act requests within the statutory 700 40 days requirements Dig alert response within 48 hours w0 ?00 Z6flMMTYflR2AM5 T9 LEVELS OF SERVICE OC San will manage its assets to ensure reliability and =Wts Levels of Service Target security. C-ybersecurity event monitoring and incident handling %5 %7 percent successful Aispeatim-W property assessments 9 23 the properties 48niles of sewer 70 miles of sewers collection system 373 manholes 880 manholes BUSINESS PRINCIPLES MMGiarh iwAheyeffaisetsound Wfilladgaimelielf0su 700 Too Mdd4dttpdsal costs per million gallons Wftbiad(�et wtBitudlpt Maiz6 in Credit Rating 05itch AAA AAA WORKPLACE-• OC San will provide a safe,productive workplace. Employee injury incident rate per 100 employees B 41 AesftimtddyEctivitW from work or job 85 days 5? transfer resulting from a workrelated injury Annual training hours per employee Too 45 hours -NHARA"M 5 FAO SEINDED INSURANCE PLANS Selfded Insurance Plans Mfu&Eihftsr pjmteN §ebility and workers ' TbaipGasetWnLiability and Property program and the Workers'Compensation program have been in existence since 1979fiEhepnernulahis and c5ap_WsE19 the Revenue Areas or Operating Divisions are the revenue sources within these programs $rojected at 100000 000. General Liability and Property OC San's current outside excess general liability insurance coverage is $0 million per occurrence with an annual Ilreglaltetbntibalrmf with a self 000. OC San's current property insurance coverage is $ billion for perils of fie and $5 million for perils of Dod 4tdn4em1l tcetmistidfn of "ffizI fcff partl*ya4E6f but does carry $5 million in coverage on 15 key structures with a $ million deductible .00 San also has a $0 million sublimit for builders risk under the property insurance program to ensure upcoming construction projects are adequately covered In order to maintain a reserve balance of $8 million for the Property and General Liability program tipprppiaiai.l>jms 6biaiged to the operating divisions are recommended at $ million for FY 2625 Workers'Compensation OC San's current excess workers'compensation coverage has unlimited statutory coverage per occurrence and $ million employer IsleAfiiper occurrence In order to maintain the reserve balance of $ million for the Workers ;Qgmppriabboa fmlogram I�-,u premiums charged to operating divisions are recommended 49b M215Y )I Liability Self :ers Compensation Self DESCRIPTION OR ACCOUNT TITLE Insurance Insurance ar¢ Fund Beginning Reserves Revenues trieu Premiums 0 Reserve Contribution 0 Service Department Allocation Total Revenues 0 Expenses >fs 0 Legal Services Professional Services Subtotal is Policy Premium Expense $ Total Expenses 0 Expessftvenue Ending Reserves 9 7:J 0 STAFFING ALLOCATION Authorized Authorized Authorized Authorized Proposed Department and Division Name RIES 22 IMES 23 2SEs 24 211fiEs 25 REES 25 General Manager HiCHeader General Manager Administration General MangerEiU Administrative Services Department Administrative Services Administration Financial Management Mwdrtaiding and Materials Management Information Technology Facilities Maintenance Fleet Services Administrative Services Communications Department Communications Administration Board Services Public Affirs Communications ® @ ® ft 0 B 0 0 0 @ a @ @ @ 0 @ B B 0 0 0 0 0 0 0 0 0 0 8 9 B fi A 0 Human Resources Department Human Resources Administration Human Resource 0 BM&Wagement 0 Human Resources 0 Environmental Services Department Environmental Services Administration 0 Resource Protection 0 Environmental Laboratory and Ocean Monitoring Environmental Compliance Environmental Services B Engineering Department Engineering Administration 0 Planning 0 Wboject Management O 0 Design Construction Management Engineering 0 Operations and Maintenance Department Operations and Maintenance Administration @ Collection Facilities Operations and Maintenance B Maintenance Support Services C 15Idet Services 6 Plant No.1 Operations Plant No.2 Operations Plant No.1 Maintenance Plant No.2 Maintenance Operations and Maintenance 0 dir MIFethhents ■ 0 0 0 @ B B 0 0 0 9 0 0 0 0 0 0 0 0 0 0 0 0 ® 0 ® 0 ® 3700 ® B B ® 0 0 0 0 0 9750 0 B 0 0 0 0 0 0 0 0 ® 0 B 0 0 0 0 0 0 0 0 @ @ @ @ 0 0 0 2 @ 0 @ 0 B ® 0 B B BB B ® 085 0 0 B 603 B 0 TYtffl25 HISTORICAL STAFFING DETAIL Authorized Authorized Authorized Authorized Proposed FTEs FTEs FTEs FTEs FTEs ffividti n 2822 2023 2824 2025 2025 General Manager 0 0 0 0 Assistant General Manager 0 0 0 0 Administration Manager 0 0 - flkmdol Sta 0 0 0 Secretary to the General Manager 0 0 0 0 4Mneral Management Admin 0 B 0 0 488neral Manager 0 B 0 0 Assistant General Manager 0 Director of Finance 0 0 0 Maintenance Manager 0 0 flAh-aJol Sta 0 0 Senior Accountant 0 0 Administrative Assistant 0 0 210ministrative Services Admin 0 0 0 0 Controller 0 Hinacmment Manager 0 0 0 Accounting Supervisor D D D D Principal Project Controls Analyst 0 Principal Accountant 0 D D D flkinalol Sta D 0 D D Senior Accountant D 0 0 0 Sk3naQrsSta 0 D D D Accountant 0 D D D Payroll Technician 0 0 0 0 Accounting Technician B B B Accounting Assistant II B Administrative Assistant 0 0 JMncial Management 8 0 0 0 0 0 0 0 0 0 TYU1AR42U 5 A3 HISTORICAL STAFFING DETAIL Authorized Authorized Authorized Authorized Proposed FTEs FTEs FTEs FTEs FTEs Willi 2022 2023 2024 2025 2025 KoulhasitgAanager Contracts Supervisor Purchasing Supervisor Materials Mgmt Supervisor Principal Contracts Administrator Senior Contracts Administrator Principal Buyer Contracts Administrator Senior Buyer ffaA sSta Buyer Ewdlnastng Technician Emrdlnastsg Assistant Lead Storekeeper Lead Materials Management Clerk Senior Storekeeper Materials Management Clerk Storekeeper Materials Management Technician M Assistant Mgmt Information Technology Manager Information Technology Supervisor Principal Information Technology Analyst Senior Information Technology Analyst Information Technology Analyst III Information Technology Analyst II Data Management Technician II Data Management Technician I %aalyst Administrative Assistant Information Technology Technician II Information Technology Technician i5111il ion Technology m m m m m m m m m m m m m m m m m m 0 D 0 0 0 0 D 0 0 0 D D @ 0 @ m 0 0 0 0 0 D m m m m m s ® o o a m m m m m D D 0 0 D 0 D D D m m m m m D @ 8 0 8 D 0 D 8 0 D 0 0 0 0 D D D 0 D m m m m m m m m m m @ 0 9 B B B ll'1E1 2 5 24 HISTORICAL STAFFING DETAIL Minn Authorized FTEs 2022 Authorized FTEs 2023 Authorized FTEs 2024 Authorized FTEs 2025 Proposed FTEs 2025 Facilities Worker B Maintenance Specialist 0 111hi3f0l Sta m Electrical Tech II 0 Building Maintenance Tech m Lead Elec Tech m Maintenance Manager 0 Lead Facilities Worker m Maintenance Supervisor m 2Wilities Maintenance Maintenance Supervisor m Lead Mechanic 0 A46euyclEiWeipment Technician B Mobile Crane Operator 0 Met Services 2QDninistrative Services 9 9 9 9 9 Administration Manager 0 Director of Communications 0 m 876mmunications Administration 9 9 9 Clerk of the Board 0 0 0 0 0 Assistant Clerk of the Board (1) g @ @ 0 Data Management Technician 1 ID Records Management Technician m 0 0 ID Program Assistant 0 0 0 0 0 tre Assistant ip 0 @ @ 0 211193rd Services B 0 0 D 0 Public Airs Supervisor m 0 0 ID Principal Public Airs Specialist 0 0 0 0 0 Senior Public Af irs Specialist iD iD 0 0 ID Public Airs Specialist 0 0 9 Graphics Designer iD (1) !3 @ 0 Administrative Assistant 0 0 0 m m 34(blic A firs 8 0 0 B B A30nmunications 9 0 8 9 9 TYffl 25 25 HISTORICAL STAFFING DETAIL Braidtblm Authorized FTEs 2022 Authorized FTEs 2023 Authorized FTEs 2024 Authorized FTEs 2025 Proposed FTEs 2025 Director of Human Resources 0 0 0 870man Resources Administration 0 0 0 Director of Human Resources 0 0 Human Resources and Risk Manager 0 Human Resources Manager 0 0 0 0 Human Resources Supervisor @ @ @ @ @ Principal Human Resources Analyst @ D 0 0 0 Senior Human Resources Analyst 0 @ 0 Human Resources Analyst 0 0 @ Human Resources Technician II 0 0 0 0 Human Resources Assistant @ Human Resources Technician 1 0 0 0 0 820nan Resources 0 0 8 0 0 Safety and Health Manager 0 0 0 0 &66alsh Supervisor 0 &dIPWilibaSpeb *st @ @ @ @ Senarj�pncy Planning Specialist 0 0 0 0 0 Senior Construction Inspector 0 Safety Inspector @ @ @ @ &Eemtth3bfpt)Psentative @ @ Sr.Safety and Health Spclst @ @ @ UW Specialist @ @ Safety and Health Specialist @ @ @ UW Representative @ Human Resources Technician II 0 0 0 0 Administrative Assistant 0 889k Management 0 0 0 0 0 3410nan Resources B Y ZfiK2MTYffRffV=5 26 HISTORICAL STAFFING DETAIL Authorized Authorized Authorized Authorized Proposed FTEs FTEs FTEs FTEs FTEs lFaMiDn 2022 2023 2024 2025 2025 Director of Environmental Services 0 0 0 0 Environmental Protection Manager 0 Environmental Supervisor 0 Senior Regulatory Specialist @ @ Regulatory Specialist 0 @ Principal Environmental Specialist 0 @ Senior Environmental Specialist 0 @ Executive Assistant 0 Administrative Assistant 0 0 0 MWIronmental Services Administration 9 D D 0 Environmental Protection Manager 0 0 0 0 Engineering Supervisor @ @ @ @ Environmental Supervisor 0 0 0 0 Senior Engineer @ 0 0 0 Engineer B 0 0 Associate Engineer @ 0 00 0 Senior Regulatory Specialist 0 0 0 Principal Environmental Specialist 0 0 0 0 Lead Source Control Inspector 0 0 0 0 Senior Environmental Specialist 0 0 0 @ Source Control Inspector II 6 B 6 0 Source Control Inspector 1 0 0 0 Administrative Assistant 0 0 0 Environmental Technician 0 0 0 Program Assistant 0 0 0 Hie Assistant 0 0 0 0 GUBource Protection D D 3700 D D 0 ZUMBMTYffRffV=5 27 HISTORICAL STAFFING DETAIL Authorized Authorized Authorized Authorized Proposed FTEs FTEs FTEs FTEs FTEs WoMinn 2022 2023 2024 2025 2025 Environmental Protection Manager 0 0 0 ti aiinm ft datiag Manager 0 Environmental Supervisor 0 0 0 0 Senior Scientist 0 0 @ @ Scientist @ ® 0 0 Principal Environmental Specialist B 0 0 0 Senior Environmental Specialist 0 0 0 0 Environmental Specialist @ 0 0 0 Boat Captain 0 0 0 0 Assistant Boat Captain 0 0 0 Administrative Assistant 0 0 0 0 Environmental Technician 0 0 0 0 639ironmental Laboratory and Ocean Monito 9 0 0 0 Environ Protection Manager 0 0 Pr Environmental Specialist Senior Regulatory Specialist 0 0 Sr Environmental Specialist 0 0 Regulatory Specialist 0 0 69ironmental Compliance 9 9 61101ronmental Services 9 9 9 9 Director of Engineering 0 0 0 0 fAm3dol Sta 0 0 0 0 Maalyst 0 Administrative Assistant 0 ZOgineering Admin 0 0 0 0 Engineering Manager 0 0 0 0 Engineering Supervisor @ @ @ @ Senior Engineer @ @ @ 0 Engineer @ @ D D fAhadiol Sta 0 0 0 0 Associate Engineer 0 @ @ Engineering Associate 0 0 Assistant Engineer 0 0 0 ;IOnning 0 0 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9 9 0 0 0 0 @ 0 0 0 ill1ff1 2 5 28 HISTORICAL STAFFING DETAIL Authorized Authorized Authorized Authorized Proposed FTEs FTEs FTEs FTEs FTEs !oMinn 2022 2023 2024 2025 2025 Engineering Manager 0 0 0 0 0 Engineering Supervisor 0 9 0 0 0 CIP Project Manager 0 0 0 0 0 Senior Engineer 0 0 0 0 0 Engineer 0 0 0 0 0 Associate Engineer 0 0 0 @ 0 Engineering Associate 0 0 0 0 Administrative Assistant 0 0 0 0 0 F6ject Management D D D D • Engineering Manager 0 0 0 0 0 Engineering Supervisor ® 0 0 0 0 Information Technology Supervisor 0 0 0 0 Senior Engineer 0 0 0 0 0 Principal Information Technology Analyst 0 0 0 0 0 Engineer D 0 0 0 0 Senior Information Technology Analyst 0 0 0 0 0 Associate Engineer 0 0 0 0 0 Information Technology Analyst III 0 0 0 0 0 Information Technology Analyst II 0 0 0 0 0 %aalyst 0 0 0 0 Administrative Assistant 0 0 0 0 0 Assistant Engineer 0 0 0 0 Zl'Ebign • D D D D Engineering Manager 0 0 0 0 0 Engineering Supervisor 0 0 0 0 0 Construction Inspection Supervisor 0 0 0 0 0 Senior Engineer 0 0 0 0 0 Engineer 0 0 0 0 0 Senior Cost Estimator 0 0 0 0 0 SehedOnner 0 0 0 0 0 Associate Engineer 0 0 0 0 0 Blireokler 0 0 0 0 0 Cost Estimator 0 0 0 0 Senior Construction Inspector 0 0 0 0 0 Construction Inspector D 0 0 0 0 Engineering Assistant II 0 Engineering Technician 0 0 0 0 Administrative Assistant 0 0 0 0 0 .XMinstruction Management • • • • • ;Bftineering • • • • • HISTORICAL STAFFING DETAIL Authorized Authorized Authorized Authorized Proposed FTEs FTEs FTEs FTEs FTEs wwwmn 2022 2023 2024 2025 2025 MaiotenefiGperations 13atat m&a 8111104dministration Maintenance Manager Maintenance Supervisor Engineering Supervisor Rkhi3d tl Sta Associate Engineer Maintenance Specialist Principal Environmental Specialist Senior Environmental Specialist Lead Mechanic Senior Mechanic Environmental Specialist Administrative Assistant Mechanic Maintenance Worker Environmental Technician EMlection Facilities O Senior Mechanic Reliability Maintenance Technician Maintenance Specialist PMdeator Lead Electrical Technician Associate Engineer Machinist Maintenance Supervisor Lead Mechanic 80intenance Support Services Maintenance Supervisor Lead Mechanic A-(deu)oEgeipment Technician Mobile Crane Operator Program Assistant 8.28et Services m m m 0 0 0 m m m @ @ @ a m m 6 ill1ff1 2 5 AO HISTORICAL STAFFING DETAIL WuMixn Authorized FTEs 2822 Authorized FTEs 2023 Authorized FTEs 2824 Authorized FTEs 2825 Proposed FTEs 2825 Operations Manager 0 D 0 0 0 Chief Plant Operator m D 0 0 0 Operations Supervisor 0 0 0 0 0 Senior Engineer 0 0 0 0 Engineer m D 0 0 0 Associate Engineer 0 0 0 0 0 Lead Plant Operator 0 0 0 0 Senior Plant Operator 9 9 ® A A Staalyst 0 D 0 0 0 Administrative Assistant m D 0 0 0 Plant Operator Program Assistant 0 0 0 93@nt No .1 Operations Chief Plant Operator m D 0 0 0 Operations Supervisor 0 0 0 0 0 Lead Plant Operator 0 0 0 0 Senior Plant Operator g ® ® 9 9 Administrative Assistant m D 0 0 0 Plant Operator ® ® 0 94&t No .2 Operations 0 0 0 0 0 Z693031TYURRAM5 Al HISTORICAL STAFFING DETAIL Authorized Authorized Authorized Authorized Proposed FTEs FTEs FTEs FTEs FTEs limMivn 2022 2023 2024 2025 2025 Maintenance Manager 0 0 0 0 Maintenance Superintendent 0 @ @ @ Maintenance Supervisor 0 0 0 0 Engineer 0 Associate Engineer 0 0 0 0 Maintenance Specialist 0 m 71 18 Lead Instrumentation Technician @ @ @ @ Lead Electrical Technician 0 0 0 8 Lead Power Plant Operator @ @ @ @ Reliability Maintenance Technician 0 0 0 8 Instrumentation Technician II 0 0 0 0 Electrical Technician II 0 0 0 0 Lead Mechanic @ 0 0 D Power Plant Operator II 0 0 0 0 Machinist 0 0 0 ID Seratys8ta 0 0 0 Administrative Assistant 0 0 0 ID Senior Mechanic 0 0 0 @ PMdeator 0 0 0 D Lead Facilities Worker 0 0 0 tD Instrumentation Technician 1 0 Electrical Technician 1 @ @ Paaitities Worker 0 BadliBties Worker 0 Facilities Worker @ @ @ Mechanic 0 @ @ @ VZ®nt No .1 Maintenance O B 9 ID ID 0 0 m 0 ID 0 ID ID TYlffl 25 A2 HISTORICAL STAFFING DETAIL Authorized Authorized Authorized Authorized Proposed FTEs FTEs FTEs FTEs FTEs wwmblm 2022 2023 2024 2025 2025 Maintenance Superintendent 0 0 0 0 0 Maintenance Supervisor 0 0 0 0 0 Lead Instrumentation Technician 0 0 0 0 Lead Electrical Technician 0 0 0 0 0 Instrumentation Technician II 0 0 900 0 0 Electrical Technician II 0 0 900 900 0 Lead Mechanic 0 0 00 0 Senior Mechanic 0 0 ® ® 0 Administrative Assistant 0 0 0 0 0 Lead Facilities Worker 0 0 0 0 Instrumentation Technician I @ 0 Electrical Technician 1 0 0 Paaitities Worker 0 Badlifties Worker 0 Facilities Worker i 0 0 0 Mechanic 0 0 00 DO 0 Maintenance Worker 0 00- 00 BMt No .2 Maintenance ■ 0 Be 0 0 icffnce I G i 0B5 ■ B Orange County Sanitation District 0 603 0 ll'1E1 2 5 W APPROPRIATIONS LIMIT Artimie XIIIB of the California State Constitution commonly referred to as the Gann Initiative or Gann ��ait approved by California voters in 1979 . The Gann Limit placed limits on the amount of proceeds of taxes that state and local governmental agencies can tedbWom td approriate iffhantliftit isach agency and the limit changes each year. The annual limit is based on the amount of tax proceeds that were authorized to be gpeftt ieadhY alj)�y fichdFdir fitianguEdipbpulation in each subsequent year. Proposition 111 was passed by the State's voters in June 1990. This legislation made changes to the manner in which the Appropriations Limit is to be calculated iffienaandal adjustment factors for in Ooplmlatloorf baimgbeen changed the lesser of California per capita income,or U S CdNch agency may choose either the growth in the California per capita income,or the growth in assessed valuation due to new nonresidential construction within the agency, For population instead of using only the population growth of an agency, each agency may choose to use the population growth within its county. These are both annual elections The revised annual adjustment factors will be 8pibiieidi fbr#ffeRYaWRfties and each year in between in order to calculate €TEHUY` d,990limits for the jhbaveaming years ffutedot a Expenditures for 461latiaoital outlay are capital assets with a value of more than $DO 000 and an expected life of 10 years or more,are excluded from the limit An agency which exceeds the limit in any one year may choose to not give a tax refund if they fall below the limit in the next fical year . They then have two more years to refund any remaining excess or to obtain a successful override vote. I rp mau46ds s¢tf JAbw s may be spent on emergencies without having to reduce the limit in future years Each agency also conducts a review of its Appropriations Limit during its annual fiancial audit lld law requires a governing body to annually adopt tes*o1i ilompriations limit for the following year along with a recorded vote regarding which of the annual adjbetn@rdndJectors have been selected County Sanitation Districts appropriations limit and annual adjustment factors are adopted at the same meeting as €iEicIbiadgtiitment factors used for FY 2025 are the weighted average change in city population and the change in state per capita personal income. The following table shows the annual appropriations limit for each of the last two Reel years and for FY 2025 The increase in the limit is based upon population changes ranging from negative 041 percent to positive 068 percent for representative cities within the Orange County Sanitation Districts service area and a per capita bye change of 6 the State Department of Finance. Annual Appropriation Limits 2923 $37 $�B 21024 21025 As a result of the July 1998 consolidation of the Orange QmuBtq@l6alfihAtidn plDisteimted in contrast to individual limits shown in years prior to 1998 Population changes for representative cities have continued to be used in order to ensure consistency and fiardlip llatikign�rowth in parts of the county outside of Orange County Sanitation Districts s�Ftu,ernetbad results in a lower limit than iasftdharqj3Eu my 969399ETYRARAM5 A4 MISCELLANEOUS STATISTICS General Information Yea r..of.Formation ............................ 1948 M.i.I.es.of.S.ewers more than 380 miles F..arm.of..Government County Sanitation District 0ant.P.ump..Statio.ri.... 2 Authority ................................ SL-gion 4700 et ffl.ant.P.ump..Stations......... 15 ............................................... SaIfbIWOoldealth Dperating Authority N` EMMPermit No S.ervice.Area..............................4-911sq............................................................................ CA0110604 S.ervice.P..opulation Approximately 6 million ............................................. WDR Order Now 2924 Assessed..VaJue.. Million Pi hcFti4eidatmt 664 2423 flent BOD Plant No P-7.9..millig.rams.per.Jiter Plant No .215milligrams.per.bter. 2423 flent Suspended Solids Plant No P-82.rnjJh,gra.ms.p.er..I.iter Plant No .298.miJJigra.ms.per..liter 2423 fE5r7hEKgDams..per liter 2423 flhrrtiIBgs�mi3q8qt Stdids 2423 AR4 i3fis Produced Treatment Information Ba lyffdDw to Total Primary jD*EDy Comparison 500 390 250 208 182 184 116 68 ,156 wet tons 0 Plant 1 Plant 2 Total ?rdudre)sTstwAd*nt Capacity Plant No.1................................................. 182 MGD PlantNo.2............................................... 2WD T.OT.AL......................... 390 MGD Secondary Treatment Capacity Plant No.1....................................................... 182 MGD PlantNo.2.................................................... 19GD .T.OT.AL ............................... Legend 1 tGfibn gallons per day 1 Uftwatts per hour 2023-24 Estimated Influent Primary Treatment Capacity (includes stan... 2924 f EsU rnated Average Daily In Plant No.1............................................... 116 MGD Plant No.2.............................................. 68 MGD T.OT.AL................... 184 MGD 2924 :Estimated Electricity Generated Plant No.:1.................................. 42 206 kwh Plant No .2.......................... 523 180 kwh 332 MGD T.OT.AL.................. 9@ 416 kwh TYIE£�Ad(ff25 A5 MISCELLANEOUS STATISTICS Fees and Charges obm Residence Connection AUeri�REAWO�6 Local SRF Fee OC San'sSftage of Ad Valorem Property Tax jMjs0ibcsCofl49Ae Million Gallons Summary of COP Issues Series A Series 2 Series A Series m Series la Series 2 Series Q Series Total Outstanding COP Balance Financial Information 2023 Actual 2824 Adopted 2625 Adopted 2625 Proposed $B4 $45 75 $26 $48 Outstanding Par fo Z6flMMTYU1R2AM5 A6 OC6SAN OM AMr-OOE N'ff Sk fTAr Md DISTRICT Headquarters ADMINISTRATION COMMITTEE 18480 Bandilier Circle ,SAN Fountain Valley, CA 92708 puNOE COYi/*' BRNR npw prsTACn Agenda Report 714 593 7433 File #: 2025-4322 Agenda Date: 6/11/2025 Agenda Item No: 9. FROM: Robert Thompson, General Manager Originator: Riaz Moinuddin, Director of Operations & Maintenance SUBJECT: OC SAN - OPERATIONS & MAINTENANCE WASTEWATER 101 PART 2: COLLECTIONS GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Information Item. BACKGROUND Each month, staff provides an informational presentation on topics of interest to the Board of Directors. This month's topic: Orange County Sanitation District Wastewater Collections. 1:7 411 A%1,11 &3IF_1 Z117_1:711� • 24/7/365 treatment plant reliability • Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting • Listen to and seriously consider community input on environmental concerns • Build brand, trust, and support with policy makers and community leaders ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • Presentation Orange County Sanitation District Page 1 of 1 Printed on 6/1/2025 powered by LegistarTM 5/28/2025 Operations & Maintenance Wastewater 101 Part 2: Collections Administration Committee Meeting — June 11, 2025 = - Our La Habra Brea A- Fullerton Y°rba Linda ° unry Service Area Placentia Palma Buena Park Anaheim 479 -190 2.6 Cypress Stanton -Nlla PaA square million gallons million Los Alamitos Garden Grove Orange miles per day population g wes[minster , Seal 20 4 388 ".Beach Santa Ana :. FouMein Valley Tustin cities special miles of Huntington districts sewers Beach °". Costa '- f/ Irvine p 2 15 Mesa / reclamation pump ❑ plants stations 0 ❑ Newport unincorporated _ ■ — - Beach `\ park of County of orange 2 2 5/28/2025 Gravity Sewers • Various pipe materials • Trunks, interconnections, reliefs • Inverted siphons • Diversions 3 Trunklines _ and Diversions Fi Comparing Sewer Pipelines Pipeline Maintenance Responsibilities: • Private Lateral Home/Business Owner W am Local Sewer The City or Local Agency Private Local OC San Regional Trunkline Wastewater Agency Lateral Sewer Regional Trunkline 4 inch 4-12 inch up to 10 ft diameter diameter diameter 4 3 2 5/28/2025 Upstream pipe at higher water level than downstream pipe FLU i Smaller diameter pipe than connecting pipes L 5 Pump Stations Ilk - � "M h 5 R L ethe Wa.rhi►r fair .Shrlr C onal Fremont Siphon WOR Sediment 3 5/28/2025 Line Cleaning Types • Flush work , • Grit removal • Spill prevention • Tire cleaning 1 - • Grit removal 1 • Spill prevention G • Line proofing Q. -- • gyp.: 7 E. M 5/28/2025 Mechanical Cleaning - Tire 0 10 5 5/28/2025 Smart j Manhole Covers 1 La Mirada U- U grea lJ Stale P: No walk 0 •Yuba Linda Wer 0low Buena Park rlan Placentia CalO e ryq HF�M HILLS v Anaheim 5] CyP1B9S Oisneyland16kv Villa Park LOSAlamltas Stanton Prange OPark Acres a9 eHAHfiM aEsovT Orange ® 4 GNrden Grove L O �.Vestminster © Norlh Tustin ]fit d Beath Midwayclly ! Santa Ana Tustin LOWER PETERS Fountain ss _ alley SOUTH COAST TVSTIH LEGACY a C,Eio ® we 40 Irvine 2O]1-11-91 15:05 - PN1-11-1E LSM Mil Uvd above Teti Him E�.N M.",=tr�.O in �, ...•.� ,.�.=1: sw.s.a, on v-. 1A.a.e Huntington costa Mesa soon-- - ----•--•-•.............................•--•- •- --- Beach � tRwHE "in CO cEHrEv PON San Joaquin la un n Hills fl Wood "i PA n [ORONe OEL MAP LJ 8 b 8 6 $ $ 8 S •Crystal Cove 9 A115o V State Park 4 1 11 • State Enforcement • Damage Prevention • Other entity request • Centralized system through state: • Dig -Alert system • Field locating and marking 12 m M. 5/28/2025 Regional Odor Control i.naRA Pacific quality PartnersiPQPI eREA Polfrt Wellness Inc Yorba Linda �__ -roaaA wtoA Odor Control Station Fut B Siphon Treatment Hager- %w flc Puc�+tu Bucru Park at4g SARI Vapor er To Be Demolished Liquid Treatment Chemical Tanks ,�L PArt%� n�dg ss Industrial Center (GIC) Fenous Chloride (5) Calauml.b to(d) CYPRE s s'n at TA t4a Magneswm Hydrozde ldl u.n dwros © WRUE- .- !n Conslructron /!n Progress (3) City of S 1 U' airy pr5°0� Adolfo Lopez PS 0rtsTe Trunk Lines rn Canst—Mon a Seal Beac 1 Midway City - Continuous liquid -Treatment gEPump Statiol Sanitary District" Baker -Man - Tnsro E-tid Kroft—l", T., P1 Main St eEzc+. iller-Holder Station M ernRe Newport -sn CMSD Z Mendota PS N.4 AT 36 Caustic Batching Manholes Rena. - Bay Bridge 1Sth St'_ Station Pump Station In Progress Crystal Coyfe Pump Station 13 N A R., 111121 13 *Asset inspection -Structural degradation and cleaning *Project scoping -Spill prevention rXg D t cto 0c of _ t Roots Medium Joint Position: 7 To 1 74.6 Severity: None Percent. 10 Joint Main? Weight: 3 14 14 7 5/28/2025 Questions? 15 ADMINISTRATION COMMITTEE ,SAN Agenda Report puNOE COYi/*�' BRNR npw prsTA�Cn File #: 2025-4323 Agenda Date: 6/11/2025 FROM: SUBJECT: Robert Thompson, General Manager STRATEGIC PLAN: LEVELS OF SERVICE GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Information Item. BACKGROUND Headquarters 18480 Bandilier Circle Fountain Valley, CA 92708 (714)593-7433 Agenda Item No: 10. The Orange County Sanitation District's (OC San) Strategic Plan consists of various elements including the Levels of Service (LOS). OC San's LOS are the commitments made to our ratepayers, regulators, employees, and the Board of Directors on our operational efforts. The LOS were updated in 2023 and were designed to better align with the Strategic Plan and showcase how the initiatives are being implemented and monitored. As part of the 2025 Strategic Plan update, the LOS are being updated once again to address improvements made. The LOS consists of four categories which coincide with the Strategic Plan policy areas: Environmental Stewardship, Wastewater Management, Business Principles, and Workplace Environment. Environmental Stewardship Levels of Service OC San will protect public health and the environment. Compliance with Ocean Discharge Permit 100% Dry weather urban runoff collected and treated Up to 10 MGD Major non-conformance audit findings <5 per permit per audit Respond to corrective actions within regulatory timeline for air, solids, and water compliance audits 100% Comply with Fleet Air Emission Regulations 100% Number of odor complaints under normal operations < 10 events for the treatment plants < 12 events for the collection system Sanitary Sewer Spills per 100 miles <2.1 Compliance with core industrial pretreatment requirements 100% Orange County Sanitation District Page 1 of 3 Printed on 6/1/2025 powered by LegistarTM File #: 2025-4323 Agenda Date: 6/11/2025 Agenda Item No: 10. OC San's effluent, solids and biogas will be recycled. Provide specification effluent to Groundwater Replenishment System 100% Beneficially reuse biosolids during normal operations 100% Wastewater Management OC San will be a good neighbor and will be responsive to its customers. Respond to collection system spills within 1 hour of 100% notification Respond to odor complaints Within 1 hour in plants Within 24 hours in collections Respond to public complaints or inquiries regarding 100% construction within 24 hours Respond to biosolids contractor violations within one week of 100% violation notice Respond to Public Records Act requests within the statutory <=10 days requirements Dig alert response within 2 business days 100% OC San will manage its assets to ensure reliability and security. Respond to all cybersecurity events and incidents to mitigate >90% risks and maintain an overall cyber health rating according to security operations standards. Annual real property assessments/inspections 20% of the properties Annual Inspection, documentation, and evaluation of 70 miles of sewers collection system 880 manholes Business Principles OC San will exercise sound financial management. Annual user fees sufficient to cover 100% of O&M Budget 100% Collection, treatment, and disposal costs per million gallons Within 10% of budget Maintain Credit Rating (Moody's, Fitch, S&P) AAA Workplace Environment OC San will provide a safe, productive workplace. Employee injury incident rate per 100 employees <4.2 Annual days away from work, restricted activity, or job transfer resulting from a work -related injury <3.2 Annual training hours per employee <=40 Each quarter, a section of the LOS's is reported in the General Manager's Monthly Report, providing a high-level overview of OC San's performance. Orange County Sanitation District Page 2 of 3 Printed on 6/1/2025 powered by LegistarTM File #: 2025-4323 Agenda Date: 6/11/2025 Agenda Item No: 10. RELEVANT STANDARDS • Build brand, trust, and support with policy makers and community leaders • Make it easy for people to understand OC San's roles and value to the community PROBLEM The Strategic Plan needs to be updated to ensure its relevancy. PROPOSED SOLUTION Solicit and incorporate the Board of Directors' input in the development of the proposed Strategic Plan. PRIOR COMMITTEE/BOARD ACTIONS November 2023 - Adopted the OC San Strategic Plan 2023. /_1QQ111ICkiF-11>l1ki1;101NLT, I_%I1*]011 The adopted Strategic Plan for 2025 will be the basis of Fiscal Year 2026-27 and 2027-28 budget development. CEQA N/A ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: • OC San Strategic Plan 2023 • General Manager's Fiscal Year 2024-2025 Work Plan • Presentation Orange County Sanitation District Page 3 of 3 Printed on 6/1/2025 powered by LegistarTM 611 '23 OC�.SAN ORANGE COUNTY SANITATION DISTRICT 2 I STRATEGIC PLAN - 2023 Table of Contents Board of Directors 4 Message from the General Manager 5 Executive Summary 6 Our Mission and Vision 8 Core Values 9 Levels of Service 10 Risl< Register 12 Policy Areas 13 Appendix Business Principles Budget Control and Fiscal Discipline Policy 23 Asset Management Policy 29 Cybersecurity Policy 32 Property Management Policy 34 Organizational Advocacy and Outreach Policy 35 Environmental Stewardship Energy Independence Policy 40 Climate and Catastrophic Event Resilience Policy 43 Food Waste Treatment Policy 46 Water Reuse Policy 50 Environmental Water Quality, Stormwater Management, and Urban Runoff Policy 52 Wastewater Management Chemical Sustainability Policy 56 Biosohds Management Policy 60 Constituents of Emerging Concern Policy 63 Workforce Environment Resilient Staffing Policy 68 Safety and Physical Security Policy 73 STRATEGIC PLAN — 2023 13 Board of Directors City Anaheim Brea Buena Park Cypress Fountain Valley Fullerton Garden Grove Huntington Beach Irvine La Habra La Palma Los Alamitos Newport Beach Orange Placentia Santa Ana Seal Beach Stanton Tustin Villa Park AGENCIES Costa Mesa Sanitary District Midway City Sanitary District Irvine Ranch Water District Yorba Linda Water District Member of the Board of Supervisors Active Director Stephen Faessel Christine Marick Susan Sonne Scott Minikus Glenn Grandis Bruce Whitaker Stephanie Klopfenstein Pat Burns Farrah N. Khan Rose Espinoza Marshall Goodman Jordan Nefulda Brad Avery Jon Dumitru Chad Wanke (Chairperson) Johnathan Ryan Hernandez Schelly Sustarsic David Shawver Ryan Gallagher (Vice Chairperson) Robbie Pitts Robert Ooten Andrew Nguyen John Withers Phil Hawkins Doug Chaffee 4 I STRATEGIC PLAN — 2023 Message from the General Manager The Orange County Sanitation District (OC San) serves a critical mission for 2.6 million residents in North Central Orange County, "To protect public health and the environment by providing effective wastewater collection, treatment, and recycling." To achieve this mission in an ever -changing world, OC San must adjust the level of service it delivers and the methods of delivering those services. The creation of a new Strategic Plan every two years is the first step in a comprehensive planning process at OC San. By understanding the risks it is facing, shifts in the regulatory environment, opportunities in the business climate, and the condition of its assets, OC San is able to balance its services defined by fifteen policy areas and levels of service provided to our customers. This adopted Strategic Plan, along with the annual Asset Management Plan, will serve as the basis for staff to develop a new two-year budget which will be adopted by the Board of Directors in June 2024. The General Manager's Work Plan is developed annually to deliver tangible progress toward the goals in the Strategic Plan within the parameters of the budget. The planning process for OC San is key for creating unity. The Board of Directors experience significant turnover every two years due to term limits and changing representation as decided by the twenty-five agencies we serve. This biennial process allows each Board of Directors to make the plan their own, while at the same time continuing to develop and extend the vision of the prior Boards. Having a clear, written Strategic Plan allows staff to align itself with this direction and continue to be high achieving. I would like to thank our former Board Members for their vision and guidance that sets the expectations we are delivering today and our current Board Members who have improved the plan to meet our new and evolving challenges and opportunities. Staff are committed to innovating our service delivery to meet the expectations of this Strategic Plan. Sincerely, Robert Thompson General Manager STRATEGIC PLAN — 2023 15 Executive Summary The Orange County Sanitation District (OC San) is a resource recovery agency focused on providing reliable and cost-effective public services. OC San uses a two-year, four -step management process that creates and maintains vision alignment between the Board of Directors, staff, and the public we serve. It all begins with a Strategic Plan developed by the Board with input from staff that provides guidance and direction for long-term financial, capital, and operational efforts. The four steps of the strategic planning process are: 1. Defining OC San's ability to have people and assets in place to meet its agreed upon mission. 2. Developing the budget which lays out the tactical planning and resource allocation based on the adopted Strategic Plan. 3. Implementing the budget which is the day in and day out delivery of services to the public we serve. 4. Reporting on our level of service delivery and goal attainment. These four steps are repeated every two years to maintain alignment and are adjusted based on the Board of Directors input, legal and regulatory changes, and the needs of the communities we serve. This management system is intended to carry on over the course of transitioning Board Members and staff to deliver resilient daily services and morph our facilities and systems over time to meet new challenges facing Orange County. The policy areas from the 2021 Strategic Plan were evaluated and determined to be relevant today, with modifications made to address new findings or continue to advance the original goal with new initiatives. We are continuing with four broad categories with 15 policy areas that define our role in the wastewater environment for Orange County. The areas are: Business Principles • Budget Control and Fiscal Discipline • Asset Management • Cybersecurity • Property Management • Organizational Advocacy and Outreach Environmental Stewardship • Energy Independence • Climate and Catastrophic Event Resiliency • Food Waste Treatment • Water Reuse • Environmental Water Quality, Stormwater Management and Urban Runoff Wastewater Management • Chemical Sustainability • Biosolids Management • Constituents of Emerging Concern 6 1 STRATEGIC PLAN — 2023 Workplace Environment • Resilient Staffing • Safety and Physical Security Collaboration and engagement with the Board of Directors and our employees took place over the course of the year to update the Board of Directors on the elements that make up the Strategic Plan. The updates began with a review of the policy areas and the specific policy topics and initiatives. Feedback and recommendations were made by the Board leading to revisions of some of the proposed initiatives for each area. The 15 policy topics include a policy statement, background, the current situation, and updated initiatives to meet the policy goal. The policy topics and initiatives will be incorporated into supporting documents such as the Budget and General Manager's Work Plan. The work plan is where we will note measurable results of each goal and the supporting initiatives. Subsequent updates to the Board of Directors consisted of a presentation on the Levels of Service (LOS), the Core Values, and the Risk Register. Our Levels of Service are our commitment to our various stakeholders, that includes the public, regulators, our Board, and our employees. As regulations change, technology advances, and expectations change, so must our service to the public. Our LOS remain unchanged from the previous plan as they align with the current Strategic Plan. The Core Values are intended to reflect and guide the culture practiced at OC San and how we are able to achieve the LOS. OC San's Risk Register captures the appropriate areas of concern as well as our action plan to mitigate those risks. STRATEGIC PLANNING PROCESS 2021I I 2026 mmm Q4 Q1 I Q2 Q3 Q4 Q1 Q3 . m Strategic Plan Budget General Manager Development Development Worl< Plan Budget General Manager Update Work Plan is Pl General Manager Development Development Worl< Plan Five Year Prop Budget General Manager Rate Study 218 Update Worl< Plan Strategic Plan Budget Development Development STRATEGIC PLAN — 2023 17 Our Mission "To protect public health and the environment by providing effective wastewater collection, treatment, and recycling." Our Vision ORANGE COUNTY SANITATION DISTRICT WILL BE A LEADER IN: • Providing reliable, responsive, and affordable services in line with customer needs and expectations. • Protecting public health and the environment utilizing all practical and effective means for wastewater, energy, and solids resource recovery. • Continually seeking efficiencies to ensure that the public's money is wisely spent. • Communicating our mission and strategies with those we serve and all other stakeholders. • Partnering with others to benefit our customers, this region, and our industry. • Creating the best possible workforce in terms of safety, productivity, customer service, and training. ■ Core Values OC San's Core Values support the Mission and Vision Statements by expressing the values, beliefs, and philosophy that guides the agency's daily actions. They help form the framework of the organization and reinforce a professional work ethic. These Core Values accurately express the philosophy and practice of OC San's workforce. Integrity, Inclusion, Honesty, and Respect We aspire to the highest degree of integrity, inclusion, honesty, and respect in our interaction with each other, our suppliers, our customers, and our community. We strive to demonstrate these values in our actions, commitments, and service. Leadership, Teamwork, and Problem Solving We lead by example, acknowledging the value of our resources and using them wisely to achieve our mission. We strive to reach OC San goals through cooperative efforts and collaboration with each other and our constituencies. We work to solve problems in a creative, cost-effective, and safe manner, and we acknowledge team and individual efforts. Customer Service, Transparency, and Accountability We are committed to acting in a timely, accurate, accessible, and transparent manner through excellent customer service. We are committed to act in the best interest of our internal and external stakeholders. Resiliency, Innovation, and Learning We continuously develop ourselves, enhancing our talents, skills, and abilities. We recognize that only through personal growth and development will we progress as an agency and as individuals. Safety We are committed to providing a safe work environment. We will demonstrate leadership, promote individual accountability, and participate actively in the advancement of our health and safety practices. STRATEGIC PLAN — 2023 19 Levels of Service OC San's Levels of Service (LOS) are the commitment made to our rate payers, regulators, employees, and the Board of Directors on our operational efforts. The LOS align with the Strategic Plan and showcase how the initiatives are being implemented and monitored. ENVIRONMENTAL STEWARDSHIP I LEVELS OF SERVICE OC San will protect public health and the environment. • Compliance with Ocean Discharge Permit 100% • Dry weather urban runoff collected and treated Up to 10 MGD • Major non-conformance audit findings <5 per permit per audit • Respond to corrective actions within regulatory timeline for air, solids, and water compliance audits 100% • Comply with Fleet Air Emission Regulations 100% • Number of odor complaints under normal operations < 5 per events per treatment plant < 12 per events for collection system • Sanitary Sewer Spills per 100 miles <2.1 • Compliance with core industrial pretreatment requirements 100% OC San's effluent, solids and biogas will be recycled. • Provide specification effluent to Groundwater Replenishment System 100% • Beneficially reuse biosolids during normal operations 100% WASTEWATER MANAGEMENT OC San will be a good neighbor and will be responsive to its customers. • Respond to collection system spills within 1 hour of notification 100% • Respond to odor complaints Within 1 hour in plants Within 24-hours in collection system • Respond to public complaints or inquiries regarding construction within 24 hours 100% • Respond to biosolids contractor violations within one week of violation notice 100% • Respond to Public Records Act requests within the statutory requirements <=10 days • Dig alert response within 48 hours 100% OC San will manage its assets to ensure reliability and security. • Cybersecurity event monitoring and incident handling, percent successful >87% • Annual real property assessments/inspections 25% of the properties • Annual Inspection, documentation, and evaluation of collection system 70 miles of sewers 1880 manholes 10 1 STRATEGIC PLAN — 2023 BUSINESS PRINCIPLES OC San will exercise sound financial management. • Annual user fees sufficient to cover 100% of 0&M Budget 100% • Collection, treatment, and disposal costs per million gallons Within 10% of budget • Maintain Credit Rating (Moody's, Fitch, S&P) AAA WORKPLACE ENVIRONMENT OC San will provide a safe, productive workplace. • Employee injury incident rate per 100 employees <4.4 • Annual days away from work, restricted activity, or job transfer resulting from a work -related injury <2.5 • Annual training hours per employee 45 hours STRATEGIC PLAN — 2023 111 Risk Register The Risk Register is a collection of the various risks facing OC San for the annual review by management. The findings from this assessment are utilized in the development of the Strategic Plan and the General Manager's Work Plan to ensure OC San's operations are not affected. The analysis allows management to identify solutions and prioritize the concerns in a manner that is efficient and effective. The risks analyzed range from staffing, to cybersecurity, to operational concerns. The 2023 Risk Register is a tool used by management to keep OC San in a forward moving position while considering the risks identified. NCO(/, i ail o \- RULES STANDARDS rj MP,1ANCE #1 POLICIES �o IAA 12 1 STRATEGIC PLAN — 2023 Policy Areas The Strategic Plan is divided into four categories with 15 topic areas. Below are the policy statements and corresponding initiatives to achieve the goals of the plan. The complete policy papers can be found in the appendix. BUSINESS PRINCIPLES Budget Control and Fiscal Discipline Policy Statement OC San has practices and safeguards in place to ensure its long-term fiscal stability. These provide direction so that OC San's finances are managed in a manner that will continue to support the daily collection and treatment of wastewater; meet the mission of the organization; maintain our AAA Bond Rating; ensure a responsible budget, consisting of Revenues, Operating Expenditures, Capital Improvement Program (CIP), Debt Service; and establish reserves necessary to meet known and unknown future obligations. OC San has established Fiscal Policies and Reserve Criteria, which are included in the budget, and separately adopted Investment and Debt Policies. Initiatives • Use established resources, along with developing and implementing additional resources to assist OC San staff in tracking and monitoring expenditures to ensure smooth business operations while maintaining budgetary control. • Maintain a fiscally responsible financial plan that is based on long-term planning which supports stable rate setting and a pay-as-you-go philosophy for operating and capital expenditures. • Leverage the centralized training program to provide targeted training opportunities for employees to remain current with financial best practices and OC San fiscal policies and procedures. • Monitor the long-term debt program and continually assess market conditions to identify possible opportunities to reduce outstanding debt balance and term, while maintaining a AAA rating. Maintain reserve levels within policy guidelines, while optimizing the use of available funds to finance capital programs and ensure a balanced budget. Asset Management Policy Statement OC San will assess and manage the collection and treatment plant systems and assets to improve resilience and reliability while lowering lifecycle costs. This will be accomplished through adaptive operation, coordinated maintenance and condition assessment, and planned capital investment. Staff will balance maintenance, refurbishment, and replacement strategies to maximize useful life, system availability and efficiency. Initiatives • Continue developing an annual Asset Management Plan documenting the condition of the collection system and treatment plants, and upcoming maintenance or capital projects. • Coordinate the efforts of operations, collections, mechanical maintenance, electrical maintenance, instrument maintenance and engineering through process teams to assure OC San's resources are focused on the high priority work functions. • Identify critical collections and plant assets that have long lead times for parts and replacement and mitigate procurement risks and impacts to collections and plant resiliency based on market conditions. STRATEGIC PLAN — 2023 1 13 • Maintain a 20-year forecast of all CIP projects needed to maintain or upgrade OC San's $12.6 billion in assets on a prioritized risk basis to establish rate structures. Cybersecurity Policy Statement OC San must maintain adequate cybersecurity (information technology security) techniques that protect computer assets, networks, programs, data, and industrial control equipment from unauthorized access, denial of service, or attacks that are aimed for exploitation. Initiatives • Conduct various tabletop exercises to determine the organization's ability to respond to a targeted cyberattack and to improve the quality of the response, should an attack occur. • Evaluate, enhance, and monitor network security including activities to protect the usability, reliability, integrity, and safety of the network by developing Security Operations Center capabilities that support continuous monitoring and is responsible for the continuous threat protection process. • Conduct a comprehensive third -party cybersecurity operations assessment (Red Team). A thorough Red Team engagement will expose vulnerabilities and risks regarding: o Technology — Networks, applications, routers, switches, appliances, etc. o People — Staff, independent contractors, departments, business partners, etc. o Physical — Offices, warehouses, substations, data centers, buildings, etc. Property Management Policy Statement OC San owns and operates assets throughout its service area located in property owned in fee, through easements, and in the public right-of-way. OC San will identify and protect all of its property rights to assure that its assets are not encumbered or encroached upon so that the facilities may be properly operated, maintained, upgraded, and replaced. Initiatives • Leverage technology to review property rights and identify encroachments or encumbrances that restrict operation, maintenance, inspection, or emergency repair access to remove encroachments or encumbrances. • Collaborate with Engineering to obtain property, easements, and right-of-way in a timely manner for capital projects. • Augment OC San resources with contracted specialized real estate services to limit the need for additional staffing. Organizational Advocacy and Outreach Policy Statement OC San will create and disseminate information to our stakeholders with an end goal to educate, inform, and garner support for the services provided thus allowing us to operate in a more efficient and effective manner. OC San will deliver messages that are accurate, transparent, and designed to foster public trust and confidence. Additionally, legislative activity will ensure OC San's interests are explained and considered. Initiatives • Develop an educational display in the Headquarters building to illustrate OC San's reuse and recycling efforts in support of the environment and public health. Display to be revealed when new building is unveiled. Phase 2 of the hands-on educational display will consist of content on 14 1 STRATEGIC PLAN — 2023 the exterior of the building to create a complete experience from walking up to OC San to entering the building. • Implement a multipronged outreach strategy that will include industry and media coverage for the Supercritical Water Oxidation project. • Develop and implement a Local Government Affairs Outreach Program to enhance OC San business goals and build local relationships that benefit OC San, cities we serve, member agencies and officials. • Engage a local lobbyist to assist in advancing strategic initiatives as identified with the Strategic Plan. • Actively monitor and engage in regulatory and legislative activity across California and Washington, D.C., and take appropriate action in support of, or opposition to, legislative and regulatory initiatives affecting OC San and the wastewater industry. This includes using Monitoring and Analysis, Advocacy Days, Position letters and Funding Requests (as deemed suitable). STRATEGIC PLAN — 2023 115 ENVIRONMENTAL STEWARDSHIP Energy Indepenaence Policy Statement OC San will strive to be energy neutral. Electrical, thermal, and methane gas generation will be maximized. Energy utilization will be minimized using sound engineering and financial principles. Initiatives • Maximize the anaerobic digestion conversion of organics to methane through receipt of food waste and operational techniques. • Investigate and install energy storage and photovoltaic systems where practical to achieve energy independence/resilience. • Investigate the treatment and sale of biogas to external users. • Continue to support the conversion of biomethane into electricity and heat for process use. Improve systems as necessary to comply with air regulations. • Pursue technology innovation to reduce energy use, reduce transportation energy impacts, and reduce greenhouse gas impacts. • Investigate the optimum wastewater influent flow split between Plant No. 1 and Plant No. 2 that satisfies OCWD specification water requirements and energy efficiency. Climate and Catastrophic Event Resilience Policy Policy Statement OC San aims to design, maintain, and operate valuable wastewater assets that withstand or adapt to adverse conditions in a reasonable manner that is both cost-effective and sustainable for present and future generations. These adverse conditions include drought, heavy rains, flooding, sea level rise, earthquakes, tsunamis, extreme heat, wildfires, pandemic, and electrical grid interruptions. Initiatives • Evaluate the seismic vulnerabilities of Plant No. 2 flow processes (primary clarifiers, activated sludge facility, and ocean outfall piping) within the plant. Determine the required improvements to maintain dry weather flow capacity after a seismic event. Incorporate necessary upgrades into future capital improvement projects. • Complete the biannual high flow exercise to assure readiness for a high flow event. Maintain a higher level of readiness October 15 through March 15 and in advance of predicted significant rain events. Food Waste Treatment Policy Statement The State of California limits the volume of organic waste that is diverted to landfills. OC San will collaborate with the County of Orange, other local agencies, and waste haulers to find ways to beneficially reuse food waste, a type of organic waste to assist cities in our service area in meeting their diversion requirements while increasing OC San's energy production. Initiatives • OC San will accept a preprocessed food waste slurry from an in -county partner that is compatible with its existing anaerobic digesters. OC San will charge a tipping fee to offset its costs for capital construction, operations, handling, maintenance, and biosolids disposal. 16 1 STRATEGIC PLAN — 2023 • Design, build, and operate a food waste receiving station. Utilize a county -wide specification for food waste slurry and contract with OCWR to receive and co -digest food waste slurry. Water Reuse Policy Statement OC San will seek to beneficially reuse all reclaimable water for potable, industrial, irrigation and environmental uses. Initiatives • Support Groundwater Replenishment System and maximize reclaimable wastewater availability to OCW D. • Support Green Acres project water production to provide reclaimed water for industrial and irrigation uses. • Conduct a Dry Weather Urban Runoff Optimization Study in collaboration with OCWD and OCPW to identify additional opportunity to accept up to 10 MGD of dry weather urban runoff. Environmental Water Quality, Stormwater Management and Urban Runoff Policy Statement OC San will collaborate with regional stakeholders to accept up to ten (10) million gallons per day of dry weather urban runoff at no cost to the dischargers through its permit -based Dry Weather Urban Runoff Diversion Program. The primary objective of this program is to improve water quality in streams, rivers, and beaches in OC San's service area without adversely impacting the OC San occupational safety, collection and treatment systems, reuse initiatives, or permit compliance. Unauthorized discharge of urban runoff to OC San is strictly prohibited. Initiatives • Issue dry weather urban runoff connection permits to accept up to a total of ten million gallons per day of controlled discharge of dry weather urban runoff where existing conveyance capacity exists, and the constituents within the flow will not adversely impact OC San. • Safeguard OC San's sanitary sewer system against uncontrolled and unregulated discharge by supporting responsible industry practices for flow management and urban runoff pollutant reduction at the source. Utilize OC San's pretreatment expertise to support effective urban runoff best management practices and special purpose discharge requests among OC San's regional stakeholders. • Support responsible and practicable urban runoff management and reuse legislations and regulations. STRATEGIC PLAN — 2023 117 WASTEWATER MANAGEMENT Chemical Sustainability Policy Statement OC San has a need to use chemicals in its treatment process to improve plant performance, reduce odor and corrosion potential, and meet its regulatory requirements. These commodity chemicals are provided by outside vendors through the purchasing process. Some of these chemicals are subject to price swings due to market condition changes such as energy cost impacts, raw material cost changes, commercial competition changes, and transportation cost volatility. OC San will identify chemicals key to its operation, investigate the market risks for those chemicals and devise strategies to mitigate identified risks to availability and pricing. Initiative • Reduce the exclusive reliance on particular chemicals and individual vendors to establish flexibility to utilize other chemicals/processes to accomplish operational objectives. Biosolids Management Policy Statement OC San will remain committed to a sustainable biosolids program and will continue the beneficial reuse of biosolids in accordance with Resolution No. OC San 13-03 and the 2017 Biosolids Master Plan. Initiatives • Proceed with implementation of new thermophilic biosolids facilities at Plant No. 2 to improve OC San's operational resiliency against seismic events while enhancing biosolids quality and marketability. • Engage with local, state, and federal agencies to ensure that biosolids will continue to be safely and legally used as a soil amendment. • Refresh both short- and long-term hauling and management options to ensure reliability and availability of failsafe options, promote local biosolids management options, and enable compliance with Advance Clean Fleet and Greenhouse Gas reduction regulations. • Stay abreast of new biosolids management options, technologies, and biosolids recycling and renewable energy partnerships in Southern California, with special emphasis on technologies that address the removal, sequestration, and destruction of contaminants of emerging concern, such as Supercritical Water Oxidation. Constituents of Emerging Concern Policy Statement OC San will partner with other agencies, associations, and institutions to support the use of sound science to inform policy and regulatory decisions on constituents or contaminants of emerging concern (CECs) at the federal, state, and regional levels. Staff will obtain and maintain current knowledge on CECs under regulatory consideration, including occurrence, analytical methods, regulations, and treatment to support OC San's mission and regulatory compliance. Initiatives • OC San will continue to actively engage water and wastewater stakeholders to stay abreast of the scientific progress and any potential operational and financial impacts of CECs and provide timely briefings to OC San's Executive Management Team and Board of Directors to facilitate informed decision making. 19 1 STRATEGIC PLAN — 2023 • OC San will continue to develop capacity to identify, detect, quantify, and characterize CEC sources throughout the service area and treatment process to promote source reduction, treatment effectiveness, communication of credible risks, and responsible reuse and disposal. • OC San will proactively establish internal expertise and develop laboratory capability to research the potential impact of CECs on beneficial reuse of water and biosolids. OC San will use science - based knowledge to help shape CEC legislation and regulations to protect the public health and environment. • In the absence of promulgated regulatory limits for specific CECs, OC San will work with regulatory agencies to establish interim source control measures to safeguard its water and biosolids reuse initiatives and ocean discharge against potential adverse impacts. - .i W t a. ..y vim. .; {:�`.:;n; •_��!_� i. •\'i "fir:.. iYti J4tr STRATEGIC PLAN — 2023 1 19 WORKPLACE ENVIRONMENT Resilient Staffing Policy Statement OC San has comprehensive programs in place to attract, develop and retain high -quality talent to support its mission of protecting public health and the environment. Some of these programs include training and development, employee recognition, diversity and inclusion, recruitment and selection, and competitive benefits and compensation, which help promote employee engagement and productivity and make OC San an employer of choice. Initiatives • OC San's employee training programs and activities will be transitioned from individual departments and centralized in the Human Resources department over a two-year period. The centralized approach will streamline processes, ensure legal compliance, and provide greater consistency, transparency, and access for all employees, while also being responsive to the needs of the organization. • Maintain and enhance workforce planning initiatives to efficiently and effectively identify, develop and select the next generation of prepared, capable, and engaged employees through: o Vocational/Professional Student Internship Programs o Workforce Vulnerability Assessments o Talent Readiness Assessments o Orange County Sanitation District University (OC San "U") • Continue to build the OC San "U" program and evaluate various options to partner with member agencies to share content and interactive development opportunities. Safety and Physical Security Policy Statement OC San will ensure the safety, health, and security of employees, contractors and the public through industry best practices, policies, and procedures that support a safe and secure environment, provide an appropriate level of security and safeguard OC San's property and physical assets. Initiatives Safety • Identify regulatory gaps and opportunities to continually improve OC San's safety and health management system to participate in the Cal/OSHA Voluntary Protection Program (VPP). • Continue to foster a culture where employees are accountable for their safety, as well as the safety of others. Emergency Management • Support facility and countywide emergency preparedness, response, and recovery efforts by partnering with entities such as, the Water Emergency Response Organization of Orange County (WEROC), Orange County Sherriff Department, and local fire departments to plan and conduct disaster preparedness exercises and drills. • Train new employees or retrain existing employees who staff OC San's Emergency Operation Center (EOC) on the Incident Command System (ICS) and emergency disaster forms. Security • Identify and assess security vulnerabilities and improve physical security systems such as CCTV monitoring, access control systems, physical key management systems, and physical patrols of occupied buildings and plant facilities. 20 1 STRATEGIC PLAN — 2023 M.a WWr yAIv R • . ' _ rT .-. • ` - �' yam, _ _ *LdFr. "���-��,3'+- �`-]�. �•' - •f .s �"Ty-,-.''ram J^ �,s^ '. �.+ r$a •�'' �' ��. �' ♦. � z w flay •`� 22 1 STRATEGIC PLAN - 2023 Appendix IS T STRATEGIC PLAN - 2023 123 Budget Control and Fiscal Discipline Policy Summary Policy Statement The Orange County Sanitation District (OC San) has practices and safeguards in place to ensure its long-term fiscal stability. These provide direction so that OC San's finances are managed in a manner that will continue to support the daily collection and treatment of wastewater; meet the mission of the organization; maintain our AAA Bond Rating; ensure a responsible budget consisting of Revenues, Operating Expenditures, Capital Improvement Program (CIP), and Debt Service; and establish reserves necessary to meet known and unknown future obligations. OC San has established Fiscal Policies and Reserve Criteria, which are included in the budget, and separately adopted Investment and Debt Policies. These policies set the guidelines for planning the cashflow of OC San and have helped to stabilize the rates that our residents pay. Background OC San's annual budget for Operating, Capital, and Debt Service expenses is approximately $600 million. OC San maintains all physical assets at a level adequate to meet its mission, protect OC San's capital investment and to minimize future maintenance and replacement costs. OC San strives to maintain budgetary and accounting procedures that balance the budget in the current cycle, rather than through future budgets. These efforts are supported by OC San's pay-as-you-go policy for its capital projects and expenditures. OC San focuses its fiscal policy around seven distinct areas, (1) Revenues, (2) Operating Budget, (3) CIP, (4) Long -Term Debt, (5) Reserves, (6) Investments, and (7) Accounting, Auditing, and Financial Reporting. These areas are reviewed, updated annually, and described as follows: 1) Revenues OC San's revenues come from three general areas: Fees and Charges, Property Taxes, and other smaller revenue sources. Because revenues are sensitive to both local and regional economic conditions, revenue estimates are conservative. Staff estimates annual revenues by an objective, analytical process that utilizes trend, judgment, and statistical analysis as appropriate. Property tax revenues of OC San are first dedicated to debt service. OC San sets fees and user charges at a level that fully supports the total direct and indirect costs of operations, capital improvements, and debt service requirements not covered by property taxes and reserves. 2) Operating Budget The budget is used as a fiscal control device as well as a financial plan. Budget preparation and monitoring are performed by each division within OC San at the organizational level to ensure accountability and control. An annual operating budget is developed by Financial Management and the respective divisions, conservatively projecting expenditures for the current and forthcoming fiscal years. During the annual budget development process, the existing programs are examined to assure removal or reduction of any services or programs that could be eliminated or reduced in cost. Annual budgets provide for adequate repair and maintenance of facilities and equipment. Current operating expenditures are supported by current revenues. 3) Capital Improvement Program OC San makes all capital improvements in accordance with an adopted and funded CIP. OC San maintains a current Asset Management Plan and a twenty-year plan for capital improvements, including design, construction, and OC San staff costs. All capital projects approved in the annual 24 1 STRATEGIC PLAN — 2023 budget are approved for the budgeted amounts through the completion of the project. The Board of Directors approves both the individual project total budget and the projected cash outlays for all capital projects. Staff identifies which capital projects may have a significant impact to on -going operating and maintenance costs, staffing impacts and estimates the impact as the project is developed. Staff coordinates development of the CIP budget with the development of the operating budget. All operations and maintenance resources required to implement the CIP have been considered and appropriately reflected in the operating budget for the year the project is to be implemented. Cost tracking for components of the project is updated quarterly to ensure project completion against budget and established timelines. 4) Long -Term Debt OC San maintains a Board of Directors adopted Debt Policy. Before any new debt is issued, the impact of debt service payments on total annual fixed costs is analyzed. Proceeds from long- term debt cannot be used for current on -going operations. OC San maintains a AAA credit rating from Moody's, S&P, and Fitch. 5) Reserves OC San has a Board of Directors Reserve Policy which governs the establishment of our reserve level and the use of those funds. To ensure an adequate and diverse reserve policy, we have established seven different criteria. These criteria ensure that OC San will have sufficient funds for debt covenants, operating expenditures, and debt service payments prior to receiving our revenue from the county, operating contingency, rehabilitations and refurbishment, CIP contingency, and self-insurance for catastrophic loss. Any amounts in excess of these criteria are used to fund capital projects on a pay-as-you-go basis. 6) Investments OC San annually submits an investment policy to the Board of Directors for review and adoption. The investment policy emphasizes safety and liquidity before yield. OC San contracts with an Investment Manager to manage its portfolio in accordance with State Code and the investment policy. 7) Accounting, Auditing, and Financial Reporting OC San's accounting and financial reporting systems are maintained in conformance with accepted accounting principles. Quarterly financial reports are submitted to the Board of Directors and made available to the public. Monthly Operating Budget Reports are compiled, analyzed, and distributed to each division. An annual audit is performed by an independent public accounting firm with the subsequent issue of an official Annual Comprehensive Financial Report, including an audit opinion and a management letter. Various internal audits are undertaken each year under the direction of the Audit Ad Hoc Committee to ensure adherence to policies, processes, and procedures. Current Situation 1) Revenues Most of OC San's revenue is generated by user fees and charges. This category accounts for approximately 70 percent of OC San revenue in a year. Currently, OC San fees are in the lower third of its comparison agencies. After completing a rate study, a new five-year rate schedule was adopted by the Board of Directors in March 2023. STRATEGIC PLAN — 2023 125 OC San receives a share of the basic property tax levy proportionate to what was received in the 1976 to 1978 period, less $3.5 million allocated to school districts. These funds make up approximately 22 percent of the total revenue for the year. Other Revenue includes Interest Earnings, Intra-District Transfers, and small revenue sources that make up the remaining eight percent of the annual revenue. Budget Expenditures OC San adopts a biennial budget with an update in the second year of the adopted budget. The annual budgeted expenditures are approximately $600 million. This document lays out the framework of OC San's activities during the upcoming fiscal year and serves as a source of information for the Board of Directors, our ratepayers, investors, and our employees. This budget includes the operational, capital and debt service expenditures necessary to cost-effectively support our mission and execute the Strategic Plan adopted by our Board of Directors. OC San has received the Government Finance Officers Association Distinguished Budget Presentation Award for the last 27 years. 2) Operating Budget OC San's Operating Budget is the financial plan and fiscal control mechanism for the 25 divisions that comprise the six departments. The Operating Budget accounts for the costs to operate, maintain, and manage OC San's two treatment plants, 15 pump stations, and 388 miles of collection systems. Outside of salaries and benefits, the largest expenditure categories are repairs and maintenance and operating supplies. The budget preparation process is collaborative among the divisions, departments, Finance, and upper management. The General Manager and Assistant General Manager met with each of the departments to ensure their budget proposals were prudent and cost-effective. This process assists to develop a comprehensive budget for OC San that meets the needs of the organization and is fiscally responsible. 3) CIP OC San's CIP has evolved over time. It began by focusing on creating the initial infrastructure of the collections and treatment system, shifted to expanding capacity, and now our focus is on aging infrastructure, incorporating climate resiliency, seismic risk, and maximizing resource recovery in every project we execute. There are $3.1 billion in planned capital projects over the next ten years. The CIP is supported by the Asset Management Plan, which is updated annually and provides a comprehensive analysis of the condition and capacity of OC San's wastewater infrastructure. The Asset Management Program continuously validates and updates the projects that are within the CIP. Current and near -term future projects are validated annually to ensure accurate schedule, scope, and budget. 4) Long -Term Debt OC San's long-term debt fiscal policy restricts long-term borrowing to capital improvements that cannot be financed from current revenue. Before any new debt is issued, the impact of debt service payments on total annual fixed costs will be analyzed. OC San has $790 million in outstanding debt. No new money debt issuances are planned. The debt issuances are regularly reviewed and evaluated for potential savings through refinancing. All existing debt is scheduled to be paid off by 2044. 26 1 STRATEGIC PLAN — 2023 5) Reserves OC San conducted an in-depth review of the agency's reserve policies. This review included a survey of the reserve policies of 23 other public agencies and is periodically updated. It serves as a tool to assist in the evaluation of the underlying economic reasons supporting OC San's reserve policies. There are seven distinct reserve criterion which together comprise OC San's reserve fund target. These criteria are cash flow, operating contingency, capital improvement, catastrophic loss/self-insurance, replacement and refurbishment, debt service, and accumulated funds. Collectively, these individual criteria require a minimum average reserve amount of approximately $580 million a year over the current ten-year cash flow forecast. This reserve amount, while significant, totals less than five percent of the replacement value of our $12.6 billion in assets. 6) Investments OC San invests public funds in a manner which ensures the safety and preservation of capital while meeting reasonably anticipated operating expenditure needs, achieving a reasonable rate of return, and conforming to all state and local statutes governing the investment of public funds. OC San uses a bank checking account and sweep account for its daily transactions. Liquidity needs are met through funds invested with the Local Agency Investment Fund managed by the State Treasurer's Office. Most of OC San's investments are separated into two distinct portfolios, Long-term and Short-term, with a primary focus on the Long-term portfolio, which are managed by an outside investment manager. Monthly, quarterly, and annual reporting and review mechanisms are in place. 7) Accounting, Auditing, and Financial Reporting An audit of the books, financial records, and transactions of OC San is conducted annually by independent certified public accountants. The Annual Comprehensive Financial Report includes the financial position and activity of the organization and is prepared by the Financial Management Division. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with OC San. The auditor's report on OC San's basic financial statements and supplementary information renders an unmodified opinion on OC San's basic financial statements for the year ended June 30, 2022. OC San has been awarded the Government Finance Officers Association Certificate of Achievement in Financial Reporting for 28 consecutive years. Along with monthly budget reviews and quarterly reporting to the Board, OC San's internal accounting controls adequately safeguard assets and provide for proper recording of financial transactions. Budget Control Resources OC San has various structures, procedures, and resources in place to help assist with project and operating budget controls. Several software systems such as PM Web, Request to Purchase, JDE reports, and monthly operating budget reports provide information and have controls in place to be able to restrict purchases to budgeted amounts and monitor overall spending per division. Contract structures have also been optimized to fix costs over longer periods to ensure controlled and predictable expenditures for goods, services, and labor. Future Policy Statement OC San will maintain and enhance the sound fiscal condition of the organization by regularly updating and following the individual policies that provide guidelines for OC San's day-to-day financial affairs. The scope of these policies includes, accounting, purchasing, auditing, financial STRATEGIC PLAN — 2023 1 27 reporting, internal controls, operating and capital budgeting, pay-as-you-go for capital expenditures, revenue management, cash and investment management, expenditure control, debt management, and planning concepts. OC San will actively monitor budget expenditures, be transparent, submit quarterly financial reports to the Board, have financial information available to the public, and follow industry best practices. OC San's accounting and financial reporting systems will be maintained in conformance with generally accepted accounting principles and standards promulgated by the Governmental Accounting Standards Board. Initiatives to Support Progress Toward the Policy Goal • Use established resources, along with developing and implementing additional resources to assist OC San staff in tracking and monitoring expenditures to ensure smooth business operations while maintaining budgetary control. • Maintain a fiscally responsible financial plan that is based on long-term planning which supports stable rate setting and a pay-as-you-go philosophy for operating and capital expenditures. • Leverage the centralized training program to provide targeted training opportunities for employees to remain current with financial best practices and OC San fiscal policies and procedures. • Monitor the long-term debt program and continually assess market conditions to identify possible opportunities to reduce outstanding debt balance and term, while maintaining a AAA rating. Maintain reserve levels within policy guidelines, while optimizing the use of available funds to finance capital programs and ensure a balanced budget. 28 1 STRATEGIC PLAN — 2023 Asset Management Policy Summary Policy Statement The Orange County Sanitation District (OC San) will assess and manage the collection and treatment plant systems and assets to improve resilience and reliability while lowering lifecycle costs. This will be accomplished through adaptive operation, coordinated maintenance and condition assessment, and planned capital investment. Staff will balance maintenance, refurbishment, and replacement strategies to maximize useful life, system availability, and efficiency. Background OC San is a regional governmental agency principally chartered to protect the public health through collection and treatment of wastewater. The governing Board of Directors has defined this role to include the recovery and utilization of resources from wastewater for the public good as a part of that mission. The environmental impact mitigation of the human activity of 2.6 million people and the natural drainage of the 479 square miles OC San serves is our principal concern. OC San owns and operates extensive facilities to achieve its mission. OC San estimates the replacement value of the civil, mechanical, and electrical assets in its collection system, Plant No. 1 in Fountain Valley, and Plant No. 2 in Huntington Beach to be $12.6 billion. OC San has been building the piping, pumping, and treatment infrastructure it utilizes for nearly 70 years. It is necessary to expand, renew, replace, demolish, and rebuild components of the system to deal with wear and tear and meet new challenges. The early years for OC San were characterized mostly by capacity expansion to meet the challenges of increased flows as the county grew. The late 1970s to the 2000s were more defined by improved levels of treatment. The last ten years have been focused on increasing the level of recycling while rehabilitating and replacing facilities to maintain reliable operations. One of the key success factors for OC San has been the ability to maximize the life of our facilities, through cost-effective maintenance and long-range planning to ensure reliable systems. Current Situation OC San is a highly planned, forward -looking organization. The collection system and each of the treatment plants are broken down into granular functional parts. Each part is well defined and future requirements are routinely updated within the annual asset management plan. This plan may also be supplemented with detailed planning studies to optimize the timing and extent of upcoming projects. OC San has a detailed understanding of what is owned, what condition it is in, and how it is capable of performing. The collection system is made up of independent pipe networks that were installed by the former independent sanitation districts to deliver flow to the joint treatment works. The natural watershed drainages in the service area are served by major trunk sewer systems. OC San has worked with member agency staff to understand future development plans, flow estimates, and has collected historical inflow and infiltration rates during wet weather events to assure adequate flow carrying capability exists in each trunk sewer system. OC San also factors in the effects of drought and lower domestic water usage rates to make sure the sewers operate properly at low -flow rates. Detailed modeling efforts are used to determine when upgrades are required. The treatment plants are broken down into the discrete process units. Each plant has preliminary treatment to remove debris and grit, primary treatment for gravity settling solids, multiple biological STRATEGIC PLAN — 2023 129 secondary treatment systems, solids handling and dewatering, power generation and distribution utilities, water and air system utilities, and an outfall system to release treated water to the ocean. Each plant can treat 320 million gallons per day of wet weather flow, but only 185 million gallons total on average is treated by both plants. OC San must always maintain the ability to treat both the average flow and peak wet weather flow. OC San understands that every asset has an expected life. Electrical systems with electronics are generally limited by component obsolescence to 20 years of life and electrical distribution equipment is limited to 30 to 40 years of life. Mechanical and coating systems are also generally limited by erosion, corrosion, and wear to 20 years of life. Civil structures and pipes are generally limited to 60 to 80 years of life if maintained on a regular basis. Generally, process facilities are renewed about every 25 years. OC San has created a Facilities Master Plan that plans to renew or replace facilities on this regular basis. Collection system projects are driven by growth projections or condition findings. Pipes are upsized or renewed based on flow projections, corrosion observation, or coating system failure. The 15 regional pump stations are renewed about every 25 years due to the mechanical wear and tear, and electrical component obsolescence needs. The master plan for the treatment plants is much more dynamic. In addition to the electrical, mechanical, and civil asset considerations, there is also the need to meet new requirements. The new requirements are driven by regulatory requirements or by the Board of Directors to change a discretionary level of service. Examples include capacity demands (more water, more solids), lower discharge requirements (lower BOD/TSS to the outfall, lower nutrients to the ocean), more water for reclamation, better energy conversion of solids. The 2017 Facilities Master Plan took a snapshot in time looking at the anticipated needs and levels of service to lay out a detailed project plan to morph OC San infrastructure over time to meet the expectation. Renewal or replacement projects with costs and schedules were laid out for each individual unit of the treatment plants to address capacity, condition, level of service, and anticipated new regulatory drivers. Future Policy Statement OC San will continue to invest in the infrastructure necessary to meet its mission. OC San will seek to provide its required level of service at the minimum lifecycle cost for its collection and treatment systems. The 2017 Facilities Master Plan was the snapshot basis of the Capital Improvement Program (CIP), but the annual Asset Management Plan is the means to update and modify the CIP to meet new requirements and conditions as time goes by. OC San will understand in a transparent way: what it owns, the condition of those assets, the capacity of collections and treatment required, the level of service required by its regulators and Board of Directors and will anticipate new regulations that may require system improvement. This understanding will drive coherent operations, targeted maintenance, and capital investment strategies to assure resilient, lowest lifecycle cost compliance with the requirements. Operations is committed to optimizing the operation of the systems to extend equipment life and minimize energy and chemical utilization, while meeting all regulatory and level -of -service requirements. Staff is committed to maintain the installed assets in a ready state for operations. Maintenance will seek to balance individual component preventive maintenance, repair, and renewal in harmony with the CIP. The CIP is based on the annual Asset Management Plan, and will execute the projects to install, renew, or replace trunk sewers and treatment plant units on a scheduled basis. 30 1 STRATEGIC PLAN — 2023 Asset Management at OC San is the living management of the operation strategies, maintenance plans, and implementation of the CIP. OC San will find creative ways to maximize asset life and meet capacity or level of service goals through operations and maintenance. OC San will annually reassess its condition, capacity, level of service, and regulatory conditions to drive operations and maintenance practices and modify the CIP. Initiatives to Support Progress Toward the Policy Goal • Continue developing an annual Asset Management Plan documenting the condition of the collection system and treatment plants, and upcoming maintenance or capital projects. • Coordinate the efforts of operations, collections, mechanical maintenance, electrical maintenance, instrument maintenance and engineering through process teams to assure OC San's resources are focused on the high priority work functions. • Identify critical collections and plant assets that have long lead times for parts and replacement and mitigate procurement risks and impacts to collections and plant resiliency based on market conditions. • Maintain a 20-year forecast of all CIP projects needed to maintain or upgrade OC San's $12.6 billion in assets on a prioritized risk basis to establish rate structures. STRATEGIC PLAN — 2023 1 31 Cybersecurity Policy Summary Policy Statement The Orange County Sanitation District (OC San) must maintain adequate cybersecurity (information technology security) techniques that protect computer assets, networks, programs, data, and industrial control equipment from unauthorized access, denial of service, or attacks that are aimed for exploitation. Background Developing an effective, sustainable cybersecurity program is a pressing challenge for organizations of all sizes. The reasons behind the scope of the challenge are many. Cyber risk continues to grow at an exponential rate with routine attacks from nation states, criminal elements, hacktivists, and insider threats. The bottom line is cybercrime pays. The booming cybercrime economy is productizing malware and making cybercrime as easy as shopping at Amazon. With this easy access to cybercriminal tools and services, enterprises are experiencing rapid increases in the volume, scale, and sophistication of cyberattacks. Complex and dynamic information security disciplines are subject to continuous changes in the business, technology, and threat environments. Many organizations will struggle to implement security programs that support continuous improvements in this challenging environment. Current Situation OC San has evolved over recent years from dedicating less than half of a position towards cybersecurity, to one position, to currently two full-time positions. OC San's cybersecurity portfolio consists of strategic policy management, defense in depth practices, periodic risk assessments, ongoing awareness communication and operational (e.g., security monitoring and incident response, threat and vulnerability management, user provisioning) processes. For example: • Cybersecurity Awareness and Training Program - OC San understands that our employees are our best line of defense in protecting and defending our enterprise from attack. We have built a comprehensive security awareness program by focusing on four critical functions: phishing attack simulations and reporting, quarterly education requirements, targeted training for IT developers and SCADA engineers, and pervasive communications utilizing internal communication tools. • Vulnerability Management - IT staff subscribe to and monitor security advisories and threat bulletins from Microsoft, US-CERT, ICS-CERT, KnowBe4, Cisco, and other vendors to understand and manage new vulnerabilities. All internet accessible servers and applications are scanned weekly for vulnerabilities and remediated, as necessary. Microsoft operating system and application patches are deployed monthly while third party updates are deployed weekly. We use a vulnerability platform for continuous assessment of our security and compliance posture. • Intrusion Detection and Response - We have implemented several security solutions to be able to detect, prevent and respond to malicious network activity. These include firewalls, intrusion prevention systems, web security gateways, and next -generation anti-malware. In addition, we also have user behavior analysis tools to identify insider threats and ransomware activity. • Privileged Access Management Program - We use a privileged access management solution to remove and manage local administrative rights on workstations/servers to prevent lateral movement. The solution is also used to protect, control, and monitor privileged access across files and systems. 32 1 STRATEGIC PLAN — 2023 • Backup and Restore Capabilities - IT practices a 3-2-1 backup strategy: 3 - Keep three copies of critical data 2 - Have your data on two types of media 1 - One copy must be offsite and offline Restores are performed on at least a weekly basis in response to customer incidents. Disaster Recovery Testing is performed monthly by selecting a major system and testing restore capabilities of that system to our secondary treatment facility. We isolate the restores and provide access to our application subject matter experts to conduct application specific testing. These tests are logged and kept for auditing and management purposes. • Security Incident Response - A security incident response plan is an organized approach to handle a cyberattack. We have developed an incident response plan, playbooks, and procedures for various attacks as well as trained IT security staff. In addition, there are external contacts we can call for assistance including the Federal Bureau of Investigation, Department of Homeland Security and organizations that specialize in incident response like Mandiant, Cylance, and Microsoft. • Security Assessments - The purpose of a security assessment is to identify the current security posture of a system, network, or organization. The assessment provides recommendations to improve the security posture by mitigating identified risks. Our goal is to do one or two security assessments per year. Future Policy Statement The main objective of our information security program is the establishment of a continuous, iterative regimen of planning, building, running, and governing security capabilities that are derived from business requirements. Our security program cannot be a static entity. It must be adapted and continuously refined to keep pace with the ever -changing threat environment and changes in how OC San adopts digital business practices. Cybersecurity incidents are inevitable. Mistakes and/or a lack of preparation in the response can have serious repercussions. The ability of an organization to respond effectively to a security incident is a direct result of the time spent preparing for such an eventuality. If you fail to prepare, then you effectively prepare to fail. OC San will be prepared. This will be accomplished by the following proposed initiatives. Initiatives to Support Progress Toward the Policy Goal • Conduct various tabletop exercises to determine the organization's ability to respond to a targeted cyberattack and to improve the quality of the response, should an attack occur. • Evaluate, enhance, and monitor network security including activities to protect the usability, reliability, integrity, and safety of the network by developing Security Operations Center capabilities that support continuous monitoring and is responsible for the continuous threat protection process. • Conduct a comprehensive third -party cybersecurity operations assessment (Red Team). A thorough Red Team engagement will expose vulnerabilities and risks regarding: o Technology — Networks, applications, routers, switches, appliances, etc. o People — Staff, independent contractors, departments, business partners, etc. o Physical — Offices, warehouses, substations, data centers, buildings, etc. STRATEGIC PLAN — 2023 133 Property Management Policy Summary Policy Statement The Orange County Sanitation District (OC San) owns and operates assets throughout our service area located in property owned in fee, through easements, and in the public right-of-way. OC San will identify and protect all its property rights to assure that our assets are not encumbered or encroached upon so that the facilities may be properly operated, maintained, upgraded, and replaced. Background OC San owns and operates $12.6 billion in assets. A portion of those assets include buildings, easements, rights -of -way, and other encroachments. OC San has a real property analyst that serves as a resource in support of OC San's real property assets. The position acts as project leader and/or technical expert for real property matters, including purchase, sale, lease, rent, acquisition, disposition, appraisal, inspection, title, right-of-way, easements, permits, licenses, contracts, agreements, relocation, property and space management, and other related activities. Periodically, OC San sells and purchases property to support its efforts. Since these transactions are limited and not core to OC San, it has been determined that it is more cost effective to augment OC San resources with contracted specialized real estate services. Current Situation OC San manages its physical property and property rights in support of Reclamation Plant No. 1, Treatment Plant No. 2, fifteen pump stations, and 388 miles of trunk sewer lines in the Collection System. The real property analyst works closely with Operations and Maintenance staff to ensure that OC San has the necessary easements and rights -of -way for operations along with unencumbered access for repairs and maintenance. Staff works with Engineering to obtain property, easements, and rights -of -way to facilitate the completion of projects for our Capital Improvement Program (CIP). Additionally, OC San manages landscaping, building maintenance, and security for its facilities. Future Policy Statement OC San will effectively manage its property assets and actively maintain all encroachments, encumbrances, easements, and rights -of -way. When prudent, OC San will augment resources with contracted specialized real estate and property management services. OC San staff will work to support the property needs of Operations and Maintenance and the CIP. Initiatives to Support Progress Toward the Policy Goal • Leverage technology to review property rights and identify encroachments or encumbrances that restrict operation, maintenance, inspection, or emergency repair access to remove encroachments or encumbrances. • Collaborate with Engineering to obtain property, easements, and rights -of -way in a timely manner for capital projects. • Augment OC San resources with contracted specialized real estate services to limit the need for additional staffing. 34 1 STRATEGIC PLAN — 2023 Organizational Advocacy and Outreach Policy Paper Summary Policy Statement The Orange County Sanitation District (OC San) will create and disseminate information to our stakeholders with an end goal to educate, inform, and garner support for the services provided, thus allowing us to operate in a more efficient and effective manner. OC San will deliver messages that are accurate, transparent, and designed to foster public trust and confidence. Additionally, following legislative activity will ensure OC San's interests are explained and considered. Background OC San provides regional sewer service for 2.6 million people living, working, and commuting in central and northwest Orange County. The various stakeholders include over 600 employees, 50 local elected officials appointed to our Board of Directors, regulators, policy makers, and the public. It is critical for OC San to have a multi -pronged outreach program to reach the intended audiences and to gain support for OC San's mission. OC San provides services and tools to effectively communicate about the various programs that help achieve its mission. These programs include: • Student Educational Outreach OC San is interested in promoting and educating the youth within our service area on OC San's mission and the essential services we provide. Reaching out to students allows for future generations to be aware of the environmental impact we each make and what we can accomplish working together. This knowledge will help our future generations to act and make positive changes. It also introduces them to an industry that they may be unaware of as a career choice. We do this through programs such as Inside the Outdoors which goes directly into classrooms to teach the wastewater treatment process; school -based plant tours that give them an inside view into a treatment plant and how the system works; events such as the Children's Water Festival, which provides an opportunity to reach thousands of local children in a short amount of time with clear and direct messaging; our partnership with the Heritage Museum, and contests such as the Public Service Announcement which is an incentive for students to get involved in developing messages for environmental issues. • Infrastructure Outreach OC San has $12.6 billion in infrastructure that must be designed, operated, maintained, replaced, and enhanced to continue providing the essential service of protecting public health and the environment. Forming a positive presence in the community prior to the start of construction projects or maintenance activities is imperative to build trust, understanding, and support for the necessary construction. This is done through an extensive outreach program that develops and implements communication tools to engage the communities affected by OC San construction projects. This includes dedicated community liaisons, construction webpages, collateral material, presentations, etc. Over the next fiscal year, about two dozen projects will be in construction with various degrees of public impacts. • Employee Engagement Open and honest communication with our employees creates a positive and trusting environment which can result in a more engaged workforce and ambassadors for our agency. OC San creates employee engagement by utilizing various communication methods to share agency -wide STRATEGIC PLAN — 2023 135 messages. A diverse toolkit of communication pieces allows messages to be delivered to over 600 staff with various professional backgrounds, work shifts, work locations, and access to online materials. This toolkit of communication pieces includes The San Box (intranet), Pipeline Newsletter, Three Things to Know email, etc. • Brand Recognition As an industry leader, OC San must ensure its brand and image are portrayed accurately and positively. A cohesive voice, message, look, and feel are critical to maintaining a positive public perception and the trust granted to us by the community we serve and the stakeholders we work with. To build and maintain a positive image, we engage in general outreach efforts such as plant tours; community newsletters; a Speakers Bureau Program (which allows us to go into the community and meet with various groups to inform them of who we are and what we do); an informative and educational website, an active social media presence; and the development of programs such as Wastewater 101 Academy which provides an opportunity to showcase OC San's operations and initiatives for our ratepayers, fellow agencies, and influential public. • Regulatory and Legislative Advocacy OC San also recognizes the need for an active regulatory and legislative advocacy program at the local, state, and federal levels to ensure that the interests of the rate payers and the Board of Directors are communicated, understood, and supported. Towards this end, the legislative and regulatory team actively monitors and engages officials across California and in Washington, D.C., and takes appropriate action in support of, or opposition to, legislative and regulatory initiatives. Current Situation OC San is an industry leader involved in innovative and significant programs. However, it is most often seen as a silent utility due to its consistent attainment of its mission. News coverage for a wastewater resource recovery agency is most often about a mission failure. People tend not to think about their wastewater or where it goes until a beach is closed or a spill occurs. In addition, OC San has no direct connection to its ratepayers. User fees are paid via property tax bills thus eliminating an opportunity to reach our customers directly. This ultimately results in a limited understanding of OC San, what we do, and the important service provided to the community. OC San's outreach efforts are imperative to positively inform and educate the public we serve about the value we provide, including policy makers and regulators. OC San actively works with other public agencies in its service area to develop opportunities to provide additional value from the assets we own and operate to the ratepayers we serve. Initiatives like dry weather urban runoff diversion, conversion of food waste to energy and compost, and full reclamation of wastewater to potable water are examples of public -to -public partnerships. Future Policy Statement OC San will creatively and effectively develop communication tools and tactics to inform and educate our various stakeholders. As a silent utility, is it imperative that OC San connect with the public we serve in a clear and transparent way to create a bank of trust, and garner support for the programs that allow us to continue protecting the public health and the environment. OC San will maintain an active legislative and regulatory outreach program to help inform and guide leaders to ensure the wastewater industry is able to protect the public health and environment in a cost-effective way. 36 1 STRATEGIC PLAN — 2023 OC San will engage with other local government entities and nonprofit organizations to coordinate our existing messaging and services; and will search for new and innovative ways to add more value from our assets and operations. Initiatives to Support Progress Toward the Policy Goal • Develop an educational display in the Headquarters building to illustrate OC San's reuse and recycling efforts in support of the environment and public health. Display to be revealed when new building is unveiled. Phase 2 of the hands-on educational display will consist of content on the exterior of the building to create a complete experience from walking up to OC San to entering the building. • Implement a multipronged outreach strategy that will include industry and media coverage for the Supercritical Water Oxidation project. • Develop and implement a Local Government Affairs Outreach Program to enhance OC San business goals and build local relationships that benefit OC San, cities we serve, member agencies, and officials. • Engage a local lobbyist to assist in advancing strategic initiatives as identified within the Strategic Plan. • Actively monitor and engage in regulatory and legislative activity across California and Washington, D.C., and take appropriate action in support of, or opposition to, legislative and regulatory initiatives affecting OC San and the wastewater industry. This includes using Monitoring and Analysis, Advocacy Days, Position letters and Funding Requests (as deemed suitable). STRATEGIC PLAN — 2023 1 37 dIL _Ji —71 is 1 f �a a � � srst �_ — �� ti• �.lFL. # li MIND Environmenta w wardship STRATEGIC PLAN - 2023 139 Energy Independence Policy Summary Policy Statement The Orange County Sanitation District (OC San) will strive to be energy neutral. Electrical, thermal, and methane gas generation will be maximized. Energy utilization will be minimized using sound engineering and financial principles. Background OC San strives to maximize the positive impacts of its operation between land, air, and water. For example, as an agency dedicated to protecting public health and the environment, OC San is an industry leader in protecting ocean health and providing a drought -proof and reliable local water supply through the Groundwater Replenishment System, which is currently the world's largest potable reuse project. A natural result of wastewater treatment is the separation and concentration of solid and gaseous materials which provide opportunities to create sustainable and renewable energy and reduce greenhouse gas emissions. OC San is also committed to be a good neighbor. As such, significant amounts of energy are spent capturing and converting odorous air and vapor streams. OC San has pursued a comprehensive program to cover and seal its liquid and solid processes. Air streams are ducted to large fans which move thousands of cubic feet of foul air per minute through chemical, biological, and activated carbon beds to scrub the air of odorants that are regulated or may be perceived as a nuisance by the community. OC San has utilized an anaerobic digestion process that relies on biological conversion of solid organic material to methane and carbon dioxide gas or biogas. The biogas is converted to electrical and heat energy in power plants for internal use. OC San's secondary treatment system is another example of using energy to convert water impacts to air emissions. Approximately 23 percent of OC San's energy usage within the treatment process is devoted to aerating water so biological agents can convert soluble organic material to nitrogen and carbon dioxide. The generation of energy itself creates an impact on the environment in air and thermal emissions. Current Situation The potential exists to further shift environmental impacts between land, air, and water through the utilization of energy. OC San is an environmental steward that seeks to maximize the harvesting of energy available in the incoming wastewater. On the energy use side of the ledger, OC San invests prudently in lifecycle energy efficiency to minimize the use of energy to achieve its mission. Pumping systems to lift water and move material are at premium efficiency. Thermal energy is harvested from power production for use in the process and to heat and cool occupied buildings. Aeration compressors and diffusers are selected by overall efficiency. Lighting systems are upgraded over time to more efficient technologies and lighting levels are balanced between safety and security needs versus energy utilization and light pollution concerns. Facility designers and operators make careful choices regarding the utilization of every watt of electricity, BTU of heat, and therm of gas consumed. On the energy generation side of the ledger, OC San seeks to maximize the internal creation of energy. The primary source of energy creation is in biogas. Organic solids collected and concentrated in the water treatment processes are converted biologically to biogas composed of 65 percent methane, 34 percent carbon dioxide, and other trace constituents. OC San has been 40 1 STRATEGIC PLAN — 2023 using this technology since the 1950s. Research has been ongoing since that time to maximize the production of digester gas. Some of the areas of research include improved mixing and heating; improved feeding; chemical addition to limit trace pollutant production; introduction of food waste; injection of fats, oils, grease; cell lysing; and microaeration to minimize hydrogen sulfide production. OC San cleans the biogas and converts this biogas into electricity, heat, and exhaust gas. The exhaust gas is regulated even more tightly for nitrogen compounds, carbon monoxide, particulates, and volatile organic compounds which require costly and performance degrading engine control technologies. This is another example of an air impact/energy trade off. These internal systems of energy harvesting provide roughly 66 percent of OC San's electrical demand and 92 percent of OC San's thermal demand in the treatment plants. OC San can shift the digester gas between treatment plants via an interplant pipeline and has roughly 11 MW of additional generation capacity if more gas is produced. The additional capacity was originally designed to provide standby to the large outfall pumping system during an electric utility power outage using natural gas. In addition, OC San has a 5 MW, 32 MWh electrical battery storage system at Plant No. 1. The operation of this system is scheduled by Southern California Edison to offset plant loads and reduce the demand on the electric utility grid for during peak demand times in the early evening hours when solar produces little to no energy. Future Policy Statement OC San seeks to be energy independent by self -generating all the electrical and thermal energy necessary to sustain its operations. This will be accomplished by economically minimizing its utilization requirements and maximizing energy harvested from the wastewater it receives. Energy independence will improve OC San's environmental impact and improve its operational reliability and resiliency. The Plant No. 1 electricity imports vary between 1 MW and 6 MW, based on the time of day and if the battery storage system is charging or discharging. Currently, the Plant No. 2 load is close to zero on average. OC San will also study and use photovoltaic cells in non -process areas where it makes economic sense. For example, the new Headquarters Building will include photovoltaic panels linked to the treatment plant. Staff will also investigate the installation of photovoltaic arrays over OC San owned property between the treatment plants with additional battery storage systems. OC San will also investigate the treatment and sale of biogas to external users. The State of California has set goals for renewable energy utilization for electrical production and hydrogen transportation fuels. OC San's biogas is viewed favorably in these industries to meet the State of California targets. OC San is working very diligently and creatively to maximize the production of gas and reduce its own energy needs. The selling of biogas would require additional natural gas or electricity to offset the loss of electricity generated using biogas. Staff recommends that innovative research continue to maximize energy harvesting and to minimize energy usage to make OC San energy independent in the most basic mission of protecting the public health and the environment. Supercritical Water Oxidation and other biosolids thermal conversion technologies offer some exciting opportunities to cut power use, reduce diesel fueled transportation, and create useful energy. STRATEGIC PLAN — 2023 141 Initiatives to Support Progress Toward the Policy Goal • Maximize the anaerobic digestion conversion of organics to methane through receipt of food waste and operational techniques. • Investigate and install energy storage and photovoltaic systems where practical to achieve energy independence/resilience. • Investigate the treatment and sale of biogas to external users. • Continue to support the conversion of biomethane into electricity and heat for process use. Improve systems as necessary to comply with air regulations. • Pursue technology innovation to reduce energy use, reduce transportation energy impacts, and reduce greenhouse gas impacts. • Investigate the optimum wastewater influent flow split between Plant No. 1 and Plant No. 2 that satisfies the Orange County Water District specification water requirements and energy efficiency. 42 1 STRATEGIC PLAN — 2023 Climate and Catastrophic Event Resilience Policy Summary Policy Statement The Orange County Sanitation District (OC San) aims to design, maintain, and operate valuable wastewater assets that withstand or adapt to adverse conditions in a reasonable manner that is both cost-effective and sustainable for present and future generations. These adverse conditions include drought, heavy rains, flooding, sea level rise, earthquakes, tsunamis, extreme heat, wildfires, pandemic, and electrical grid interruptions. Background OC San owns and operates extensive wastewater collection and treatment facilities valued at $12.6 billion. OC San's service area faces special challenges because of the geographic location of its facilities. These challenges include: its position on and near seismic risk factors, its proximity to the Pacific Coast, adjacency of its treatment facilities to the Santa Ana River, and being served by increasingly fragile energy utilities. OC San's facilities are situated on or near several seismic risk factors. Plant No. 2 is located directly on top of the Newport -Inglewood fault. Both plants and the collection system are influenced by many adjacent major and minor faults capable of delivering damaging energy. Both of our treatment plants and most of our collection system sit on top of silty, alluvial soils that can have the effect of amplifying the earth motion and risk liquefaction during a seismic event. OC San has invested significantly over the last 50 years to improve the soils, foundations, and structures to mitigate these seismic risks. As geotechnical and structural knowledge and building codes progress, upgrades and facility replacements will be necessary. Another seismic risk associated with having a treatment plant and several pump stations located on the Pacific Coast is the risk of tsunami inundation. OC San has been working with and reviewing the plans of the City of Huntington Beach and the City of Newport Beach to understand and quantify this risk. The American Society of Civil Engineers (ASCE) has created a new standard, ASCE 7-22, to layout design parameters for lateral forces and inundation zone associated with potential tsunamis. OC San understands that climactic factors we face change widely over time. OC San's systems must perform in extreme wet weather situations (atmospheric rivers), extreme dry weather conditions (drought), extreme tidal conditions (king tides, rising sea levels), and high and low temperature extremes. OC San generally designs for historical and expected "average conditions" for optimal performance but must also assure operations for extreme weather events. OC San serves a critical public health role. Its operations must be reliable 24 hours per day, 365 days a year. Electricity, and to a lesser extent natural gas, are necessary for pumping and treatment operations. Both electricity and natural gas supplies have become increasingly vulnerable to interruption. Electricity deliveries are more vulnerable due to wildfire outage criteria, loss of local generation assets, aging infrastructure, and extreme weather events. Natural gas supplies are more vulnerable due to the loss of local storage capacity, aging infrastructure, line corrosion, and more stringent regulatory requirements. OC San has significant capacity to self -supply critical energy requirement for extended periods. Current Situation OC San has spent considerable effort quantifying its seismic, climate, and utility supply risks. Several key studies were completed over the past several years. The most acute risk factor faced by OC San is seismic risk. Climate and utility supply risks are more accurately described as chronic risks. STRATEGIC PLAN — 2023 143 Seismic risk factors include ground shaking, liquefaction, lateral spreading, and fault rupture. Both treatment plants are situated in historic riverbed with poor soil conditions. The collection system is vulnerable to failures during seismic events. State of the art seismic design has changed greatly over OC San's history and will continue to do so. Many of our critical structures were designed or installed prior to the advancements that occurred because of the various earthquakes of the 1990s. Significant effort has been expended to better characterize the soil conditions under our treatment plants and pump stations. Projects to replace existing unit processes will be scoped and budgeted to provide seismic resilience. These measures include soil mixing to stiffen the soil, various foundation designs, and building structure improvements. For refurbished facilities, the cost to provide soil improvements for existing structures to mitigate liquefaction will be evaluated based on the importance of the structure and the associated impact on pumping and treatment plant operations during dry weather conditions. Tsunami resilience and flooding protection can go hand in hand. Tsunami protection requires a more robust wall footing and wall structure. To a great extent, these two risk factors can be mitigated in the same way. The tsunami guidelines for inundation in ASCE 7-22 are a reasonable peer reviewed standard. By complying with this standard for Huntington Beach and Newport Beach, OC San will be reasonably prepared for flooding caused by extreme storm events and conservative sea level rise estimates at Plant No. 2 and pump stations in the City of Newport Beach. A tsunami wall has been designed for a large portion of the southern perimeter wall of Plant No. 2. A future project will construct the remaining portion of the tsunami wall. OC San has also expended significant effort to prepare for the effects of weather extremes on its operations. Extreme wet weather impacts operations. Inflow and infiltration during intense storm activity have multiplied average dry weather flow rate by up to three times in past years. During recent storms, peak wet weather flows have exhibited fewer extreme peaks due to inflow and infiltration improvements throughout the collections system. OC San has significant wet weather capacity and will continue to maintain a 640 million gallon per day influent and outfall capacity which is roughly 3.5 times our average dry weather flow. Historically, high rains as seen in 1863, 1938, 2017, and 2023 will push our systems to the limit. Recently we are seeing king -tides higher than previously anticipated which is impacting our coastal pump stations. OC San has also adapted its systems to perform in extreme dry weather. OC San, in cooperation with the Orange County Water District, operates the largest potable water reuse system in the world. This is made possible by replumbing our treatment plants and adding new smaller pump stations to deal with extreme low outfall flow rates during dry weather conditions. OC San can also shift significant influent flow from Plant No. 1 to Plant No. 2 through the interplant line and a portion of the flow from Plant No. 2 to Plant No. 1, which creates additional resilience for risk factors. Finally, on the topic of utility supply, OC San built redundant supplies for its most critical needs: electricity, natural gas, and water. OC San has maintained three sources of electricity supply for more than 25 years. The treatment plants can be supplied with power from Southern California Edison, OC San's Central Generation Plants, or onsite diesel generation systems to maintain basic operation to protect public health. In terms of natural gas, OC San has been producing bio- methane through anaerobic digestion since the 1950s with enough capacity to provide electricity for half of the loads at Plant No. 1, all the loads at Plant No. 2, heating and cooling loads at Plant No. 1, and heating loads at Plant No. 2. Select pump stations are provided with standby generators and 24 hours of fuel for pump stations that require response in two hours or less during a power supply failure. Portable generator connections are being installed at the pump stations to provide increased reliability and maintain pump station operation in the event the onsite standby generators fail or there is an electrical fault. 44 1 STRATEGIC PLAN — 2023 Future Policy Statement OC San will continue to build and improve its facilities to meet the seismic, climate and energy infrastructure risks that it faces with a long-term, planned approach. Acute life -safety risks that are identified or facilities that are damaged or fail in a catastrophic event will be addressed very quickly. However, it is not practical to update $12.6 billion in facilities every time a code is updated, or a new climate change estimate is released. OC San will stay abreast of code and climate change estimates as they occur and will implement improvements or replacements to facilities on a long-term basis in line with its asset management practices. OC San generally plans to refurbish or replace its mechanical and electrical assets every 20 to 25 years with an average capital improvement investment of $300 million per year over the next 10 years. OC San facilities are designed to meet industry codes. As time goes on and codes are updated, it is not required to upgrade existing facilities to meet those latest codes unless there is a mandate to do so, or an unacceptable risk in not doing so is recognized. OC San will accept some incremental risk in having some facilities that are not necessarily compliant with latest building codes until a project to rehabilitate or replace these facilities is developed. All of OC San's facilities have a planned life span with two to three refurbishment cycles. Identified seismic or flooding vulnerabilities may drive a replacement versus refurbishment decision in the normal capital planning process. OC San will continue to aspire to energy independence which will help mitigate vulnerabilities to loss of electrical and gas utilities. In addition, OC San will continue to maintain third level, diesel generator, electrical supply capability for critical loads. Onsite diesel storage will provide up to 48 hours of fuel to power the plants. Pump stations diesel generation will be site specific in its design based on flow risks, hydraulic storage capacity, and site constraints. Either onsite generation or quickly deployable mobile generators will provide standby power. Initiatives to Support Progress Toward the Policy Goal: • Evaluate the seismic vulnerabilities of Plant No. 2 flow processes (primary clarifiers, activated sludge facility, and ocean outfall piping) within the plant. Determine the required improvements to maintain dry weather flow capacity after a seismic event. Incorporate necessary upgrades into future capital improvement projects. • Complete the biannual high flow exercise to assure readiness for a high flow event. Maintain a higher level of readiness October 15 through March 15 and in advance of predicted significant rain events. STRATEGIC PLAN — 2023 145 Food Waste Treatment Policy Summary Policy Statement The State of California limits the volume of organic waste that is diverted to landfills. The Orange County Sanitation District (OC San) will collaborate with the County of Orange, other local agencies, and waste haulers to find ways to beneficially reuse food waste, a type of organic waste to assist cities in our service area in meeting their diversion requirements while increasing OC San's energy production. Background Whether supplying secondary treated wastewater for the Groundwater Replenishment System, creating renewable energy in the form of biogas from anaerobic digestion to produce electricity, or benefiting from the use of biosolids as a soil amendment, OC San is a resource recovery agency committed to providing resilient and reliable wastewater treatment service while protecting the public health and the environment. In recent years, there has been a significant change in the regulatory landscape regarding the management of organics in California. This encompasses a range of materials including food, green waste, wood, paper, biosolids, digestate, and sludges, all of which are typically disposed of in the landfills. Currently, much of the state's diverted organics undergo composting or serve as alternative daily cover on landfills. In response to the impending phaseout of organics as alternative daily cover, a regulatory shift is creating an organics market within the wastewater sector that is providing a solution to manage organics such as food waste by way of co -digestion. Co -digestion is the mixing of sewage solids and food waste in an anerobic digester to create biogas. There is an opportunity for OC San to produce additional biogas, reducing the reliance to purchase electricity from local utilities. Anaerobic digestion is currently at the nexus of important mandates within California, namely: (1) organics diversion from landfills (AB 1826 and SB 1383), and (2) increased renewable energy and fuels generation (SB 32 and SB 100). The primary alternatives for organics management are anaerobic digestion and composting — of which anaerobic digestion is the only process offering energy recovery potential. Over the next few years, California's cities and counties, along with municipal solid waste haulers, material recovery facilities, and landfills will need to develop collection, processing, and energy recovery infrastructure to address new state legislation and goals. In this context, existing wastewater treatment plants such as OC San are uniquely positioned to play a role in the new organics' marketplace since solid waste management facilities do not typically have anaerobic digesters, the energy recovery infrastructure in place, or experience regarding the management of biosolids for beneficial use. In 2017, OC San completed a comprehensive Biosolids Master Plan (Plan) that provides a roadmap and framework for sustainable and cost-effective biosolids management options and future capital facilities improvement over a 20-year planning horizon. Considering the timeliness of the regulatory mandates requiring organic diversion from landfills and increased renewable energy, the Plan evaluated the feasibility of implementing a high strength organic waste receiving program involving the co -digestion of preprocessed food waste. While food waste digestion appears to be feasible, OC San's existing infrastructure is not well suited or permitted for receiving, handling, or digesting green waste. Current digester feed, mixing, heating, dewatering and truck loading facilities aren't designed to deal with cellulosic products in green waste. The highly fibrous material does not readily break down and clogs the various 46 1 STRATEGIC PLAN — 2023 systems optimized for sewage sludge treatment. In addition, there are legal hurdles specified in the California Health and Safety Code, Section 4700, that must be addressed before OC San could operate a solid waste refuse transfer facility. Current Situation Project Viability OC San's Plan concluded that the costs to construct and operate a food waste receiving facility could be offset by tipping fees charged to food waste processors/haulers and by additional power generated from the increased digester gas production. The Plan recommended that OC San build an interim food waste receiving station immediately to take advantage of existing digestion and power generation capacity of approximately 150-250 wet tons per day at Plant No. 2. OC San will construct a more permanent facility in the future to utilize OC San's available capacity. Based on these recommendations, in 2018, OC San's Board approved a project (P2-124) to construct an interim (10 to 15-year service life) food waste facility to receive, store, and feed preprocessed food waste slurry to the digester complex at Plant No. 2 to generate additional digester gas. The facility is designed to accept approximately 150 wet tons per day of preprocessed food waste and will produce approximately 15 percent more methane gas for on -site energy production, resulting in a greenhouse gas reduction of approximately 10,800 metric tons of carbon dioxide which is equivalent to the annual greenhouse gases generated by approximately 2,000 passenger vehicles. This is consistent with OC San's Energy Independence Policy which is to strive to be energy neutral by minimizing energy utilization and maximizing useful energy recovery from the wastewater it receives. The final biosolids product currently produced by OC San is anticipated to be largely unaffected by the addition of food waste slurry. Pilot testing conducted by OC San indicates that there will be increased gas production due to mixing sewage sludge and food waste feed stock, but the final biosolids product will remain largely unchanged. A draft Preliminary Design Report was issued in June 2019 for the interim receiving facility which included a viability evaluation concluding that the project is economically justifiable based on project costs and anticipated tipping fees. Final design of the interim food waste receiving station is complete and ready to bid for construction. The 2019-2020 tipping fee was established by the Board of Directors and the food waste slurry specifications were developed by OC San staff. Between 2020 and early 2023, OC San hosted quarterly check -in meetings with several large municipal solid waste haulers to discuss procuring pre-processed food waste slurry. Although most haulers expressed interest in working with OC San, none were willing to meet OC San's food waste slurry specifications. In spring 2023, OC San initiated a series of meetings with Orange County wastewater digester owners and Orange County Waste and Recycling (OCWR) to discuss partnership opportunities for in -county food waste preprocessing, co -digestion, composting, biosolids management, and biogas production. The meetings were highly productive, and as of August 2023, the parties have agreed to assess the feasibility of constructing a centralized food waste pre-processing facility at an OCWR landfill to provide high -quality food waste slurry for co -digestion at in -county wastewater treatment plants. Future Policy Statement Food Waste Slurry OC San will only accept a preprocessed food waste slurry. We do not have land or air permits to handle, sort, and process solid or green waste. OC San will work with other regional partners to STRATEGIC PLAN — 2023 147 develop a county -wide standard for food waste slurry that specifies water, organic, metal, plastic, and glass content requirements. A common specification for slurry will help all parties make investment decisions. Food Waste Volume OC San plans to construct a permanent food waste facility based on the lessons learned from the interim system and the anticipated availability of food waste feedstock. The permanent facility will be able to accept up to 300 wet tons per day and utilize the total available capacity of the existing digesters and gas compressors. OC San also has at least 6 MW of installed electrical generation capacity that can convert the produced digester gas to electricity and heat. OC San believes that the full implementation of the current regulations will create a food waste slurry market significantly greater than 500 wet tons per day in Southern California. Tipping Fee Basis The acceptance of food waste has the opportunity to more fully utilize the system capacity that already exists for the benefit of OC San's rate payers. OC San staff will develop an updated base tipping fee rate schedule for Board of Directors' approval that meets the following criteria: • Recover all capital costs to construct facilities within ten years (this will allow OC San and waste haulers to properly invest in processing facilities). • Recover all on -going costs including operating cost, maintenance cost, electricity usage, biosolids dewatering, and reuse costs. • Food waste will not be operated "for profit" but rather a cost recovered service with tipping fees offsetting costs to not impact OC San's wastewater service fee structure. Food waste generated and processed within the service area will be charged the base rate and will be prioritized over food waste from outside the service area. This is justified by the fact that the underlying infrastructure of OC San is already owned by service area rate payers. OC San contracts with service area waste haulers must provide for a pass -through savings to OC San ratepayers. That means waste haulers may charge for collection and processing of food waste but must disclose OC San's tipping fees and negotiate pricing adjustments as necessary with City or Special District franchise partners. If additional capacity exists, but isn't utilized by in-service area users, then that capacity may be contracted by out -of -service area users at a premium to help offset the cost of the underlying infrastructure necessary to process the food waste. OC San will pursue grant opportunities to the extent possible to reduce the overall capital and operating cost basis for the program to reduce the tipping fee base rate. Initiatives to Support Progress Toward the Policy Goal • OC San will accept a preprocessed food waste slurry from an in -county partner that is compatible with its existing anaerobic digesters. OC San will charge a tipping fee to offset its costs for capital construction, operations, handling, maintenance, and biosolids disposal. • Design, build, and operate a food waste receiving station. Utilize a county -wide specification for food waste slurry and contract with OCWR to receive and co -digest food waste slurry. 48 1 STRATEGIC PLAN — 2023 000 --266.— 4wolk 40 U A Water Reuse Policy Summary Policy Statement The Orange County Sanitation District (OC San) will seek to beneficially reuse all reclaimable water for potable, industrial, irrigation and environmental uses. Background For over 40 years, OC San and the Orange County Water District (OCWD) have partnered to beneficially reuse treated wastewater from OC San. OCWD, which serves roughly the same service area as OC San, manages and replenishes the groundwater basin in northern and central Orange County, ensures water reliability and quality, prevents seawater intrusion, and protects Orange County's rights to Santa Ana River water. Beginning in 1975, OC San contributed treated wastewater from its Plant No. 1 to OCWD for the operation of Water Factory 21, which reclaimed the treated wastewater and injected it along with deep well water into the groundwater basin to prevent seawater intrusion. In the mid-199Os, OCWD needed to expand Water Factory 21. At the same time, OC San faced the challenge of having to build a second ocean outfall pipe to discharge treated wastewater into the Pacific Ocean. Both agencies collaborated to build an advanced water purification facility to resolve these challenges. This state-of-the-art facility, known as the Groundwater Replenishment System (GWRS), took the place of Water Factory 21, and began operation in 2008. The GWRS further treats secondary treated wastewater from OC San Plant Nos. 1 and 2 to drinking water standards and uses the purified water for both injection and percolation, through injection wells and recharge basins, as source water to replenish the groundwater basin's drinking water supplies. With approximately 75 percent of the water demand in northern and central Orange County cities coming from the groundwater basin, GWRS supplements existing water supplies by providing a new, reliable, high -quality source of water. OC San made a considerable investment to improve its level of treatment and source control to support the GWRS partnership. The upgrade to full secondary treatment and shifting the source control regulations, testing, and enforcement from a focus on ocean discharge to drinking water supply was very significant. While the original GWRS facility was initially constructed to supply up to 70 million gallons per day (MGD) of purified water, the facility was designed for an ultimate treatment and conveyance capacity of 130 MGD. The Final Expansion of GWRS was completed in December 2022 and can produce a maximum capacity of 130 MGD. In addition to providing treated wastewater to the GWRS, OC San also provides treated water to OCWD's Green Acres Project and OC San uses treated effluent within the treatment plants to offset potable water use. The Green Acres Project provides recycled water for landscape irrigation at parks, schools, and golf courses; industrial uses, such as carpet dying; toilet flushing; and power generation cooling. OC San uses nearly 10 MGD of treated effluent, called Plant Water, within the treatment plants for engine and equipment cooling, polymer make -down, equipment flushing and washdown, and other uses. Current Situation The GWRS currently produces up to 130 MGD of purified water - enough water for 1 million people. All of OC San's Plant No. 1 secondary effluent and Plant No. 2 secondary reclaimable effluent is made available to OCWD for the GWRS and Green Acres Project. Non -reclaimable secondary effluent from OC San's Plant No. 2, such as discharges from inland desalters, GWRS's reverse 50 1 STRATEGIC PLAN — 2023 osmosis process, and OC San's process sidestreams, are appropriately treated and released into the ocean. Future Policy Statement The treated effluent produced from OC San's Plant Nos. 1 and 2 is a valuable resource that can help boost local water resources, improve groundwater quality, and reduce dependence on imported water, while reducing the volume of effluent discharged to the ocean. OC San will continue to support GWRS by providing secondary effluent as source water free of charge; allowing OCWD to discharge brine via OC San's ocean outfall free of charge; leasing approximately 10 acres of land to OCWD at $1 per year for GWRS; and allowing OCWD to discharge North and South Basin extraction well flows to OC San sewers. OC San will continue to maximize the delivery of secondary effluent available to GWRS and the Green Acres Project to maximize full production of purified recycled water for indirect potable reuse, and industrial and irrigational uses. The two agencies regularly communicate and coordinate on operations and construction projects, regulatory compliance, and source water quality to sustain reliable GWRS operation. OC San has adequate flow to maximize the production of the GWRS. OC San, OCWD, and Orange County Public Works (OCPW) are currently studying opportunities to utilize the available 10 MGD sewer capacity allocated to dry weather urban runoff under OC San's Urban Runoff Resolution No. OCSD 13-09. Urban runoff diversions will be utilized during dry weather conditions and jointly monitored by the dischargers and OC San to avoid surcharges in the collection system and introduction of contaminants that may compromise OC San's water and biosolids reuse initiative. Initiatives to Support Progress Toward the Policy Goal • Support Groundwater Replenishment System and maximize reclaimable wastewater availability to OCWD. • Support Green Acres project water production to provide reclaimed water for industrial and irrigation uses. • Conduct a Dry Weather Urban Runoff Optimization Study in collaboration with OCWD and OCPW to identify additional opportunity to accept up to 10 MGD of dry weather urban runoff. STRATEGIC PLAN — 2023 151 Environmental Water Quality, Stormwater Management, and Urban Runoff Policy Summary Policy Statement The Orange County Sanitation District (OC San) will collaborate with regional stakeholders to accept up to ten (10) million gallons per day of dry weather urban runoff at no cost to the dischargers through its permit -based Dry Weather Urban Runoff Diversion Program (DWURD Program). The primary objective of the DWURD Program is to improve water quality in streams, rivers, and beaches in OC San's service area without adversely impacting OC San's occupational safety, collection and treatment systems, reuse initiatives, or permit compliance. Unauthorized discharge of urban runoff to OC San is strictly prohibited. Background OC San is a regional governmental agency principally chartered to protect public health and the environment through an extensive regional sanitary sewer system and a highly effective wastewater treatment operation. The governing Board of Directors (Board) has refined this role to include the recovery and utilization of resources from wastewater for the public good. In addition to beneficial reuse of biosolids and responsible ocean discharge, OC San delivers high -quality treated wastewater to Orange County Water District's (OCWD) Groundwater Replenishment System (GWRS) for advance treatment and purification followed by storage in the Orange County groundwater basin. OC San operates its regional wastewater collection system in accordance with its Sewer System Management Plan, which was developed in compliance with the California Statewide General Waste Discharge Requirements for Sanitary Sewer Systems, Water Quality Order No. WQ 2022- 0103-DWQ. The Board periodically updates OC San's Wastewater Discharge Regulations Ordinance (Ordinance) to set uniform requirements for all users of OC San's system and enables OC San to comply with all applicable state and federal regulations. The Ordinance establishes limits on all wastewater discharges which may adversely affect OC San's system and includes language that prohibits sewer users from discharging groundwater, stormwater, surface runoff, or subsurface drainage to the sewer without written authorization or a valid permit. Uncontrolled discharge of any type is strictly prohibited and any person who violates any provision of the Ordinance is subject to administrative, civil, and criminal penalties. Most of the local sanitary sewer systems within OC San's highly urbanized service area are owned and operated by cities, water districts, or sanitary districts. These local systems are designed to transport wastewater from homes and businesses to OC San's regional sewers. These local and regional wastewater systems are designed to be wholly separate from Orange County's Municipal Separate Stormwater Sewer System (MS4), which is a system of conveyances that includes roads, streets, catch basins, curbs, gutters, ditches, man-made channels, or storm drains that carry surface runoff into receiving waters and is regulated by the Santa Ana Regional Water Quality Control Board. Throughout the year, dry and wet weather urban runoff are collected through the MS4 and discharged along the coastline. During wet weather, the vast majority of urban runoff is comprised of stormwater from rainfall that either travels at a flow rate that does not allow enough time to soak into the ground or whose volume has exceeded the ability of the soil to hold any more moisture. In communities with a high percentage of covered or impervious surfaces, the runoff volume and velocity can be considerably greater when compared to rural areas. Additionally, sheets of runoff in these communities can pick up pollutants and debris from transportation, construction, industrial, and residential sources as they travel by gravity toward storm drains or other low points. Stormwater runoff carries trash, 52 1 STRATEGIC PLAN — 2023 debris, bacteria, chemicals, oil, silt, sediments, microplastics, and other common and emerging contaminants, and is the responsibility of MS4 permittees, who typically have jurisdiction over land use practices and flood control. During wet weather, the volume of surface runoff is well beyond the capacity of OC San's conveyance and treatment systems. Inflow and infiltration into the sanitary sewer system during storm events can strain the hydraulic capacity of OC San to its limit of under 1,000 cubic feet per second. In addition, storm flow runoff also contains a much greater debris load that would compromise the sanitary sewer system. During dry weather, OC San has the capacity normally reserved for inflow and infiltration to accept urban runoff. The Best Management Practices (BMPs) required of MS4 permit holders such as screening, street sweeping, spill prevention, and waste reduction campaigns help to effectively remove trash, silt, and other debris which help make these relatively small flows more compatible with the sanitary sewer. However, pollutants and pathogens that are not removed by the BMPs are carried by runoff from sources such as excess outdoor irrigation into storm drains which is discharged along the coastline. In response to the significant and persistent adverse impacts from urban runoff to coastal beaches and waters, OC San sought support from the California legislature to accept controlled discharge of surface urban runoff into its wastewater system and was authorized in April 2000 to initiate a permit -based DWURD Program to accept up to three (3) million gallons of dry weather flow per day. OC San Board Resolution No. 00-04 allowed local agencies to apply for a Dry Weather Urban Runoff (DWUR) Permit where there was not an economically or practically feasible alternative and permittees are subject to requirements of the Ordinance. Since its inception, the DWURD Program has significantly improved beach water quality throughout OC San's service area as evidenced by excellent ratings in Heal the Bay's Annual Beach Report Cards and a notable decrease in water quality -based beach closures. In June 2013, OC San modified the Dry Weather Urban Runoff Policy (Resolution No. 13-09) to cap discharges received to ten (10) million gallons per day (MGD) and waived fees associated with the program until discharges exceeded 10 MGD, or until the policy is revised. The Board established an action threshold of 9 MGD to trigger revisiting the policy. In addition to DWURD Permits, OC San's Ordinance allows for normally prohibited wastes such as groundwater, stormwater, surface runoff, and subsurface drainage to be discharged to OC San through a Special Purpose Discharge Permit (SPDP) or written authorization from OC San when no alternate method of disposal is reasonably available to mitigate an environmental risk or health hazard. Both DWURD and Special Purpose Discharge permits carry strict wet weather shut-off and debris limiting provisions to protect the sanitary sewer system from hydraulic overload and the associated sewer spills. These permits also require flow monitoring and constituent sampling so that OC San can assure that water reused, water discharged to the ocean, and biosolids reused for agriculture are safe and fit for their greater environmental and resource recovery programs. Current Situation As of August 2023, OC San is administering 21 DWURD Permits for diversions that are owned and operated by the City of Huntington Beach, the City of Newport Beach, OC Public Works, Irvine Ranch Water District, and an LLC responsible for the areas in and around Pelican Point community. Since the program's inception in 2000, the Dry Weather Urban Runoff Program has treated over 10 billion gallons of urban runoff. For the July 2022 through June 2023 reporting period, OC San received on average 1.55 MGD from these facilities, which is well below the current 10 MGD policy cap and nine MGD action threshold. STRATEGIC PLAN — 2023 153 Under special circumstances, OC San may also accept runoff on a limited -term and limited -volume basis through the SPDP or direct authorization process if there is adequate capacity, the runoff/ wastewater meets applicable effluent discharge standards, there is no practical alternative method of disposal, and the runoff/wastewater is captured and held until it can be safely discharged to OC San. In combination, these practices have enabled responsible management of persistent urban runoff challenges in OC San's service area and support a thriving and healthy local economy. Key Issues for the Future Since the inception of OC San's DWURD Program, the program success has depended on collaboration among stakeholders to improve beach water quality and urban runoff diversion water quality, coordinate flow management, and minimize any potential adverse impact on OC San's ocean discharge, biosolids management, and potable reuse. OC San's enhanced source control program and vigilant operations provide a solid foundation for GWRS water's safety and reliability. Much of the current urban runoff diversion is attributable to Plant No. 2 in Huntington Beach which now provides source water for OCWD. OC San is keenly aware of the critical role of source water quality and the need for a region -wide commitment to prevent Constituents of Emerging Concern from entering OC San's system. Although OC San will continue to accept controlled discharge from DWURDs in accordance with Resolution No. 13-09, which supports long-term integrated regional water management, OC San recognizes that urban runoff is a well -established carrier for surface contaminants. The best available scientific studies continue to highlight the need for enhanced surveillance and best management practice for pollution control prior to discharge to OC San consistent with MS4 permit requirements of diversion owners. For example, a 2020 study by the San Francisco Estuary Institute showed that runoff into San Francisco contained over 300 times the amount of microplastics when compared with treated wastewater. A 2021 study that was co-authored by the Southern California Coastal Research Project showed that tire debris in urban runoff released a rubber preservative (6-PPD) that is highly toxic to aquatic life in the Pacific Northwest. As residents within OC San's service area continue to reduce their indoor water use, there is increasing interest in utilizing dry weather urban runoff as a new source of water for the GWRS. Coupled with the completion of GWRS Final Expansion, the need to reassess available sewer capacity for accepting dry weather urban runoff was recognized by OC San. A feasibility study was initiated in 2023 by OC San in collaboration with OCWD and Orange County Public Works to identity opportunities to optimize dry weather urban runoff to sewer to augment local water supply. Initiatives to Support Progress Toward the Policy Goal: • Issue dry weather urban runoff connection permits to accept up to a total of ten million gallons per day of controlled discharge of dry weather urban runoff where existing conveyance capacity exists, and the constituents within the flow will not adversely impact OC San. • Safeguard OC San's sanitary sewer system against uncontrolled and unregulated discharge by supporting responsible industry practices for flow management and urban runoff pollutant reduction at the source. Utilize OC San's pretreatment expertise to support effective urban runoff best management practices and special purpose discharge requests among OC San's regional stakeholders. • Support responsible and practicable urban runoff management and reuse legislations and regulations. 54 1 STRATEGIC PLAN — 2023 vrastewatl Manageme STRATEGIC PLAN - 2023 155 Chemical Sustainability Policy Summary Policy Statement The Orange County Sanitation District (OC San) has a need to use chemicals in its treatment process to improve plant performance, reduce odor and corrosion potential, and meet its regulatory requirements. These commodity chemicals are provided by outside vendors through the purchasing process. Some of these chemicals are subject to price swings due to market condition changes such as energy cost impacts, raw material cost changes, commercial competition changes, and transportation cost volatility. OC San will identify chemicals key to its operation, investigate the market risks for those chemicals and devise strategies to mitigate identified risks to availability and pricing. Background OC San's treatment plants and collection system use several bulk chemicals. A sustainable supply of these chemicals is critical to maintaining an acceptable level of treatment and for ensuring compliance with all regulatory requirements. OC San spends about $24 million annually on the procurement of eight key chemicals which generally can be broken down into four categories: coagulants, odor/corrosion control, disinfection, and boiler water treatment. Boiler water treatment chemicals are low volume and readily available and will not be considered here. Coagulant Chemicals Coagulant chemicals include ferric chloride, anionic polymer, and cationic polymer. These chemicals are the workhorses of the sewage treatment process. Coagulant chemicals work to clump together organic material so it can more readily be separated from water. Ferric chloride is the first chemical added in the treatment process. It is a powerful settling agent that causes organics to clump together and settle to the bottom of primary basins. It is a double -duty chemical in that it also controls the formation of hydrogen sulfide gas, which is a major odorant, by binding to suspended sulphur compounds and causing them to settle before they can be converted by natural bacterial processes to hydrogen sulfide. Ferric chloride is an iron salt that is produced by reacting iron with hydrochloric acid. It is generally a byproduct of steel treatment, a leftover pickling agent. Ferric chloride is commonly used in the water and wastewater industries. Historically, this chemical has been the subject of a limited supplier base in Southern California. OC San has been actively splitting supply contracts to multiple vendors to ensure multiple vendors are available. On -site generation of the chemical is impractical due to the hazardous nature of the manufacturing process and acid handling, the bulk steel handing logistics, and waste products disposal. Anionic polymer works with ferric chloride to further aid in the coagulation or settling of organic compounds in the primary treatment process. These long -chain molecules are designed to be negatively charged to attract or collect positively charged ferric chloride induced organic clumps or flocculant. The use of ferric chloride and anionic polymer is called Chemically Enhanced Primary Treatment or CEPT. OC San has been using CEPT for more than thirty years. Anionic polymers are specially designed chains with many potential variants and multiple vendors. Part of the purchasing process for polymers involves polymer trials to document the efficacy of different products from different vendors to get the best cost -performance balance. Cationic polymer is generally used to thicken sludge or biosolids in centrifuges or dissolved air floatation thickeners (DAFT). These long -chained, positively charged molecules are essential to the proper operation of centrifuges and DAFT units. Part of the purchasing process for these polymers 56 1 STRATEGIC PLAN — 2023 also involves polymer trials to document the efficacy of different products from different vendors to get the best cost -performance balance. It is important to note that it is entirely possible that four different cationic polymers will be used to optimize the performance of Plant No. 1 dewatering centrifuges, Plant No. 1 thickening centrifuges, Plant No. 2 dewatering centrifuges, and Plant No. 2 DAFTs, because the performance can vary greatly depending on the equipment or process. Each process will have its own polymer trial to determine the cost -performance balance for each application. Odor Control Chemicals OC San uses several chemicals in the collection system and the treatment plant to reduce the odors normally attributed to sewage and sewage treatment. These chemicals can either prevent the formation of odor causing compounds, called odorants, or they can destroy odorants that already exist. Chemicals that prevent the formation of odorants include ferrous chloride, calcium nitrate, magnesium hydroxide, and caustic. Chemicals used in the collection systems tend to be more benign than chemicals used in the treatment plants due to their proximity to the public. Ferrous chloride is closely related to Ferric chloride as described above. It is a powerful settling agent that prevents the formation of hydrogen sulfide by tying up and settling sulfide compounds in the collection system. It is a preferred chemical because of its dual role, but it is not as benign as other choices. Calcium nitrate is another choice for collection system odor control. It works in a different way. Calcium nitrate alters the biological equilibrium in sewage. Generally, bacteria that live by respirating oxygen are the most robust organisms, followed by nitrogen respirating bacteria, and finally sulfur respirating bacteria. Adding calcium nitrate to sewage creates an environment where sulfur loving bacteria do not thrive or create hydrogen sulfide. Magnesium hydroxide is a third choice for collection system odor control. It works primarily by raising the pH of sewage to a point that is not conducive for odor causing bacteria to thrive. Magnesium hydroxide is the most benign of the chemical choices as it is the main ingredient in Milk of Magnesia. All three of these chemicals are continuously fed into sewer systems at different points to consistently control the formation of odorants in the system. Where OC San does not have the ability to site a chemical dosing station and persistent odors are being experienced, there is the option to utilize caustic slug dosing. Caustic slug dosing involves using tanker trucks to discharge up to 6,000 gallons of sodium hydroxide into a sewer manhole structure. The very high pH has the effect of killing the bioslime layer on sewer pipes that creates hydrogen sulfide. This treatment has an instant benefit that reduces hydrogen sulfide production for days to weeks depending on system conditions. The final major odor fighting chemical is bleach. Bleach is used in treatment plant chemical scrubbers to oxidize odorants in air scrubber units. Bleach is an effective neutralizer of hydrogen sulfide, methyl mercaptan, methyl disulfide, dimethyl disulfide, and many others. Disinfection After a significant amount of work with the regulators, and noticeable degradation of the ocean environment, OC San successfully discontinued disinfection of its effluent to the long outfall in 2012. This means that thousands of gallons of bleach and sodium bisulfate are no longer required to be purchased or discharged to the ocean. However, in the event of a discharge to the short outfall or river overflow, disinfection by bleach will be required. Significant on -site storage of bleach and dechlorination chemical, sodium bisulfite, is necessary for this emergency contingency. Bleach STRATEGIC PLAN — 2023 157 does have a shelf life of about six months. OC San rotates its disinfection supply to its odor control and plant water treatment systems to prevent product waste. Process Specific Chemicals OC San uses pure oxygen to support its activated sludge secondary treatment process for Plant No. 2. OC San previously self -generated pure oxygen using a cryogenic oxygen plant rated at 70 tons per day. This plant was removed because it was inefficient at the current average utilization of 35 tons per day and was at the end of its useful life. OC San contracts for delivery of liquid oxygen and uses a vaporization system to deliver pure gaseous oxygen to the activated sludge process. Chemical Supply — Purchase vs. Make OC San has relied on purchasing bulk commodity chemicals for its treatment plants and collection system. This has proven to be an effective strategy for operational flexibility and to allow concentration on core business. Operationally, the types and volume of chemicals change over time. Over time the types of polymers that are most efficient change. The volume and dosing of chemicals is based on sewage flow rates, sewage composition, and flow splits between plants. Managing the generation of specialized chemicals using hazardous materials imposes a significant training burden on staff, increases the regulatory oversight and requirements, and increases overall risk to the organization. OC San maintains a policy to split the volume of orders between two vendors to assure competition exists in the marketplace for ferric chloride. While OC San generally cooperates with other public agencies to pool purchasing power to secure the lowest possible cost through high volume purchasing, some specialty chemicals like ferric chloride require split orders to maintain competitive market forces. Current Situation OC San is constantly changing and improving its facilities to meet new challenges. Each of the facility changes offer new opportunities to reconsider how OC San operates its processes and how chemicals are used. The best chemical stability outcome is to cost-effectively eliminate the use of the chemical. This is the strategy behind cessation of bleach disinfection of the outfall effluent. Staff is studying the potential to operate the treatment plants differently to minimize or eliminate use of selected chemicals. Facilities like centrifuge sludge thickening provide new opportunities to adjust ferric chloride and anionic polymer usage. Opportunities for substitute chemicals will be explored to understand overall cost and efficiency savings potential. This includes iron vs. aluminum coagulant studies, anionic polymer trials, cationic polymer trials, and microaeration of anaerobic digesters to reduce hydrogen sulfide production. Staff also evaluates operating parameters such as in -basin sludge co -thickening, primary basin sludge blanket level parameters, as well as the greater loading of the secondary treatment systems. Future Policy Statement OC San will thoroughly understand its treatment processes, the potential modes of operation, and the benefit and cost of chemicals to improve or stabilize its process. OC San will maintain a list of necessary chemicals for optimal treatment operations which will consider chemical cost, chemical availability, treatment stability, energy utilization, energy creation, nuisance odor control, biosolids generation/cost, and regulatory permit compliance risks. Chemicals that are deemed most beneficial will be procured at the lowest overall cost from market 58 1 STRATEGIC PLAN — 2023 providers to the extent possible. Where there are market stability concerns, the purchasing division will devise procurement strategies to mitigate procurement risks. Where procurement risk cannot be satisfactorily mitigated, technical staff will evaluate alternatives such as alternate operating methods, substitute chemical usage, or on -site generation of a chemical if feasible. Initiatives to Support Progress Toward the Policy Goal • Reduce the exclusive reliance on particular chemicals and individual vendors to establish flexibility to utilize other chemicals/processes to accomplish operational objectives. STRATEGIC PLAN — 2023 159 Biosolids Management Policy Summary Policy Statement The Orange County Sanitation District (OC San) will remain committed to a sustainable biosolids program and will continue the beneficial reuse of biosolids in accordance with Resolution No. OC San 13-03 and the 2017 Biosolids Master Plan. Background Wastewater solids at both our treatment plants are separated, thickened, digested, and dewatered before being recycled offsite by contractors for composting and land application. Biogas generated from the digesters offsets electricity needs, minimizing the need to purchase power from a local utility. Prior to 2019, OC San produced an average of 800 wet tons per day (-20 percent solids) of Class B biosolids that were dewatered by belt presses. Following the commissioning of the co -thickening sludge and dewatering centrifuge system in 2019, OC San has been producing approximately 500-600 wet tons per day (23-28 percent solids), which resulted in an approximately $4 million per year reduction of biosolids hauling costs. OC San's biosolids program is developed in compliance with federal, state, and local regulations, OC San's biosolids policy (Board Resolution 13-03), biosolids management system, and the 2017 Biosolids Master Plan (Plan). OC San's adaptive and highly effective biosolids program emphasizes diversification of beneficial reuse options and markets for biosolids. Although cost is a key consideration, the incorporation of failsafe options is considered paramount. These principles align with the policy and Plan and provide a framework for identifying and adopting reliable and sustainable biosolids management options while minimizing cost. Moreover, through innovation and continuous improvements in its biosolids management practice, OC San has been well - positioned to sustain regulatory compliance and its commitment to beneficially reuse biosolids. Currently, about 54 percent is used to produce Class A compost in California, and about 46 percent is used for Class B land application in Arizona. The Plan forecasted future capital improvement projects needed to sustain responsible and cost- effective biosolids management over a 20-year planning horizon. As an example, OC San has initiated a project at Plant No. 2 to construct new thermophilic digesters and batch holding tanks that will generate Class A biosolids beginning in 2030. These new digesters are needed to increase operational resiliency against seismic events and biosolids reuse options. Plant No. 1 will continue to produce Class B biosolids. According to the Plan, upon commissioning the new thermophilic digesters, future biosolids management options may include: • Emerging markets: Management options and technologies that become available following the adoption of the Plan, such as mine and fire reclamation, gasification, pyrolysis, supercritical water oxidation, fluidized bed combustion, and cement kiln drying. • Soil blending: Partner with local soil blenders to deliver and blend Class A biosolids with soil to produce a high -quality soil amendment that can be used in a larger variety of markets than current Class A compost such as construction back -fill. • California land application: While Class A compost and granules are currently land -applied in California, land application of Class A biosolids is still restricted in most counties. However, with the recent implementation of California's organics diversion regulations and planned enforcement in 2022, stringent local ordinances that unreasonably restrict land application of biosolids are prohibited. 60 1 STRATEGIC PLAN — 2023 • Arizona land application: Land application in Arizona will continue to be a part of OC San's overall biosolids program and serves as a large -capacity outlet for biosolids management. Current Situation The legislative and regulatory landscapes in California are changing regarding organics management. Since 2003, direct land application of Class B biosolids in Southern California has largely been prohibited due to strict ordinances and conditional use requirements that preempted state recycling laws. However, in recent years there has been a greater focus on healthy soils, renewable energy, organics diversion from landfills, and reduction of Greenhouse Gases (GHGs), which are reflected in several bills and initiatives that have been adopted: • AB 1826 (2014) - Mandatory Organics Recycling for Businesses. • SB 1383 (2016) - 50% organics diversion from landfill by 2020 and 75% by 2025, which includes biosolids and mandatory organics procurement (compost and biogas) for impacted jurisdiction. • SB 32 (2016) - 40% Reduction of GHG below 1990 levels by 2030. • SB 100 (2018) - 50% renewable resources (i.e., anaerobic co -digestion of food waste) target by December 31, 2026, and to achieve a 60% target by December 31, 2030. • Increasing soil carbon and carbon sequestration under the Healthy Soils Initiative and Forest Carbon Plan. In combination, these measures are expanding the "organic waste markets", thereby stimulating interest in siting more composting facilities and organic waste -to -energy projects. It will also support soil blending and direct land application of biosolids and create opportunities for wastewater agencies to innovate. Agencies such as the State Water Resources Control Board (SWRCB), CalRecycle, California Department of Food and Agriculture, California Air Resources Board, and California Energy Commission are developing regulations to implement the new laws. Throughout the rulemaking process, OC San has been actively involved through the California Association of Sanitation Agencies (CASA) and the Clean Water SoCal (formerly Southern California Alliance of POTWS, SCAP) to encourage regulators to open more biosolids management options in California. In particular, the recently adopted regulations for SB 1383 require jurisdictions such as cities and counties to procure recycled organics like compost and biogas for localized beneficial reuse. In addition, CASA, in coordination with CalRecycle, has met with counties in California to restrict enforcement of local ordinances on land application of biosolids that are unreasonably restrictive or prohibitive, thus paving the way for more local biosolids management options. It is worth noting that, while there is growing interest in California for enhanced organics management, there has also been a rising concern from the regulatory community regarding emerging contaminants such as polyfluoroalkyl substances (PFAS) and microplastics. These ubiquitous, often household compounds have been detected in the wastewater pathway and biosolids, and OC San has been actively monitoring the development of the science and regulations across all water, wastewater, air, and soil sectors. To date, PFAS regulations have been established for drinking water and a series of phased investigative orders were issued by the SWRCB to examine the fate and transport of PFAS. OC San was among 249 wastewater treatment plants that participated in Phase 3 of the investigative order and is actively participating in collaborative studies to evaluate the potential impact of PFAS on beneficial reuse of biosolids. Future Policy Statement As California's evolving environmental regulations influence the organic waste markets, OC San will continue to leverage its memberships with various professional/industry associations to encourage STRATEGIC PLAN — 2023 1 61 local, state, and federal agencies to promote the beneficial reuse of biosolids. OC San will also continue to monitor the development of regulations for constituents of emerging concern that may impact the beneficial reuse of biosolids. OC San's long-standing leadership role in key professional organizations will continue to ensure timely and meaningful engagement on key regional, state, and national biosolids management policies. OC San will continue to stay abreast of new biosolids management options, technologies, and regional biosolids recycling and renewable energy partnerships within Southern California, especially those that address the removal, sequestration, and destruction of constituents of emerging concern. Based on the findings from the above mentioned pyrolysis PFAS demonstration project and any regulations that are developed in the coming years, staff will update OC San's biosolids strategy to account for emerging contaminant management. Consistent with the Plan, staff will work with OC Waste and Recycling (OCWR) to explore regional biosolids management opportunities as well as local solutions to meet SB 1383's organics diversion mandates, with emphasis on in -county biosolids utilization, composting, food waste co - digestion, and biogas production. Initiatives to Support Progress Toward the Policy Goal • Proceed with implementation of new thermophilic biosolids facilities at Plant No. 2 to improve OC San's operational resiliency against seismic events while enhancing biosolids quality and marketability. • Engage with local, state, and federal agencies to ensure that biosolids will continue to be safely and legally used as a soil amendment. • Refresh both short and long-term hauling and management options to ensure reliability and availability of failsafe options, promote local biosolids management options, and enable compliance with Advanced Clean Fleets and Greenhouse Gas reduction regulations. • Stay abreast of new biosolids management options, technologies, and biosolids recycling and renewable energy partnerships in Southern California, with special emphasis on technologies that address the removal, sequestration, and destruction of contaminants of emerging concern, such as Supercritical Water Oxidation. 62 1 STRATEGIC PLAN — 2023 Constituents of Emerging Concern Policy Summary Policy Statement The Orange County Sanitation District (OC San) will partner with other agencies, associations, and institutions to support the use of sound science to inform policy and regulatory decisions on constituents (or contaminants) of emerging concern (CECs) at the federal, state, and regional levels. Staff will obtain and maintain current knowledge on CECs under regulatory consideration, including occurrence, analytical methods, regulations, and treatment to support OC San's mission and regulatory compliance. Background CECs are pollutants that are not necessarily subject to existing regulations but have the potential to pose significant risk to public health and/or the environment. Wastewater treatment systems are generally not designed to remove or destroy CECs but can serve as a pathway for persistent CECs such as per- and polyfluoroalkyl substances (PFAS, commonly known as the "Forever Compound") and microplastics that enter the system from sources such as residential dwellings, commercial establishments, industrial facilities, dry weather urban runoff diversions, and special purpose discharges. In fact, certain CECs have the potential to compromise wastewater treatment and reuse operations, if found at levels that impair OC San's biological treatment systems, digester gas utilization, or advanced water purification at the Groundwater Replenishment System. As with most pollutants, reduction of CECs at the source is by far the most effective means of safeguarding public health and the environment. However, since the full range of adverse effects associated with each CEC is often unknown until contamination has become wide -spread, OC San routinely coordinates with environmental regulators, industry partners, and community stakeholders to maintain up-to-date scientific knowledge, technological developments, and relevant regulatory and legislative initiatives. It is worth noting that some of today's regulated pollutants were once considered CECs, such as 1,4-dioxane and polychlorinated biphenyls (PCBs), and OC San is engaged in multiple regional collaborations to continuously increase our collective understanding of pollutant fate and transport and develop integrated water quality improvement strategies. With steadfast support from the OC San Board of Directors, multiple generations of staff have acquired and conveyed considerable institutional knowledge and experience with identifying, monitoring, and reducing CECs through a combination of source control, treatment optimization, analytical innovations, outreach, and responsible reuse and disposal. A key takeaway from OC San's decades -long experience with CECs is that there is no such thing as `away' for some pollutants. Thus, we must consider CEC management in every facet of OC San operation, with special emphasis on advance planning for source control, beneficial reuse, and responsible ocean discharge. Current Situation OC San has prioritized CEC source control to prevent potential adverse impacts to its mission of protecting public health and the environment. Industrial and certain non -domestic discharges are regulated by OC San's Pre-treatment Program through a permitting and source control inspection program that enforces OC San's Waste Discharge Ordinance and federal, state, and local mandates. For CECs that are undergoing regulatory development, OC San may choose to utilize interim guidelines and recommended thresholds from federal, state, and local regulatory agencies to safeguard our ocean discharge and beneficial reuse of water and biosolids. STRATEGIC PLAN — 2023 163 Specifically, OC San has worked with regulators at the federal, state, and local levels in advance of CEC regulations to develop special projects that can be incorporated into its National Pollutant Discharge Elimination System (NPDES) Permit to evaluate the presence and quantity of CECs in our final discharge to the ocean and the background levels in the receiving environment. OC San's current CEC monitoring program includes constituents in the following category: Hormones (8), Industrial Endocrine Disrupting Compounds (7), Pharmaceuticals and Personal Care Products (13), and Flame Retardants (9). Data from OC San's ongoing CEC program were reviewed by the regulatory and natural resource agencies during the recent NPDES permit renewal consultations, and additional CECs have been added to the 2021 NPDES permit. Over time, OC San's source control program has been enhanced and updated to meet the needs of the Groundwater Replenishment System (GWRS) as it underwent expansion to increase water supply reliability for north -central Orange County. Through formal agreements and staff -level coordination, OC San and the Orange County Water District (OCWD) have forged a world -class partnership that currently produces up to 130 million gallons per day (MGD) of purified water. To safeguard this potable reuse effort against CECs and other pollutants that are not removed by conventional wastewater treatment systems, OC San and OCWD established a response plan that is activated whenever a pollutant or pollutant precursor becomes a concern to either agency. Where the source can be identified, the plan organizes responsive actions from OC San and OCWD for industrial and commercial facilities. A typical response could include source investigation by OC San that begins with data review, accelerated sampling, laboratory analysis, and result in inspections and enforcement actions. CECs from suspected domestic and residential sources are typically addressed by way of educational outreach to the public. However, OC San's Board of Directors have also authorized financial and in -kind services to support targeted research at academic institutions that investigate CECs from domestic and residential origins. CECs that are not removed through the treatment process can also be found in biosolids. At high concentrations, CECs may preclude beneficial reuse of biosolids as soil amendments for non-food crop and force OC San to dispose of biosolids in landfills or pursue costly means of destruction. Thus, responsible legislations and regulations that reduce the production and use of CECs, encourage substitution with less toxic materials, and promote adaptive source control programs are essential for sustaining OC San's mission and commitments to the community. If source control, education and outreach, or legislative and regulatory efforts are not successful, OC San may be required to implement a technological or operational process change/investment to address a CEC. Future Policy Statement OC San shall align its resources to manage CECs throughout its service area and treatment process to comply with existing and anticipated regulatory requirements and sustain beneficial reuse of treated effluent and biosolids. OC San shall acquire and maintain a high level of subject matter expertise and engagement across the wastewater, water, water reuse, air quality, ocean monitoring, and biosolids sectors to monitor the environmental, operational, and financial threats posed by CECs. OC San shall continue to work with other agencies and professional organizations to develop robust analytical methods and routinely monitor its local limits to shape and comply with regulation to protect public health and the environment. OC San shall continue to implement and update the GWRS Response Plan to sustain effective water reuse and prepare for next -generation CECs and emerging regulatory obligations. 64 1 STRATEGIC PLAN — 2023 Initiatives to Support Progress Toward the Policy Goal • OC San will continue to actively engage water and wastewater stakeholders to stay abreast of the scientific progress and any potential operational and financial impacts of CECs and provide timely briefings to OC San's Executive Management Team and Board of Directors to facilitate informed decision making. • OC San will continue to develop capacity to identify, detect, quantify, and characterize CEC sources throughout the service area and treatment process to promote source reduction, treatment effectiveness, communication of credible risks, and responsible reuse and disposal. • OC San will proactively establish internal expertise and develop laboratory capability to research the potential impact of CECs on beneficial reuse of water and biosolids. OC San will use science - based knowledge to help shape CEC legislation and regulations to protect the public health and environment. • In the absence of promulgated regulatory limits for specific CECs, OC San will work with regulatory agencies to establish interim source control measures to safeguard its water and biosolids reuse initiatives and ocean discharge against potential adverse impacts. STRATEGIC PLAN — 2023 165 t • i, i i, i � r. i. ,. i i,�i i i .�;:i��• M 'J", fx I 4iR Worl Envin STRATEGIC PLAN - 2023 1 67 Resilient Staffing Policy Summary Policy Statement The Orange County Sanitation District (OC San) has comprehensive programs in place to attract, develop, and retain high -quality talent to support its mission of protecting public health and the environment. Some of these programs include training and development, employee recognition, diversity and inclusion, recruitment and selection, and competitive benefits and compensation, which help promote employee engagement and productivity and make OC San an employer of choice. Background At OC San, employees are the organization's most valuable resource. OC San employs over 600 highly skilled and dedicated individuals committed to providing outstanding service to the community, and whose collective efforts make OC San an industry leader. OC San invests in its employees by providing targeted educational and training opportunities, resulting in a highly skilled and educated workforce tasked with carrying out our mission. OC San has a diverse workforce and a wide range of expertise with approximately 70 percent of positions requiring a degree, certification, and/or license. Occupations include scientists, engineers, environmental and regulatory specialists, operators, mechanics, construction inspectors, as well as professionals in public affairs, finance, contracts, IT, safety, and human resources. Effective strategic workforce planning allows management to project the loss of institutional knowledge and experience caused by employee turnover. OC San utilizes a variety of methods to ensure we have access to internal talent pools through effective performance management, talent assessments and training, development plans, and external talent pools by actively sourcing for passive candidates and leveraging social media outlets and career fairs. OC San has a competitive recruitment process that prioritizes hiring the best candidate for any given position based on qualifications and merit. Human Resources utilizes an objective multi - hurdle recruitment and selection process which includes assessment centers and skills testing, screening for minimum qualifications, secondary screening of applications by the hiring manager, panel interviews (for technical skills and fit), and a full background investigation and reference check of the selected candidate. OC San utilizes several strategies to attract, retain, and develop highly skilled staff for key positions. These include fostering a strong values -based culture, being intentional with our hiring practices, promoting employees' growth and development, supporting a healthy work/life balance, rewarding and recognizing exemplary achievements, and maintaining a competitive benefits and compensation philosophy, in addition to the following: • Equal Opportunity Employer As an Equal Opportunity Employer, OC San advertises vacant positions to all segments of the public providing a fair opportunity to all. Jobs are generally advertised on the Internet, e-mailed to employees, and posted on social media and other internet sites, and in trade magazines or on trade -specific websites for hard -to -fill, specialized, or technical positions. Recruiters also utilize Linkedln and other platforms to reach active and passive candidates in the market. • Vocational/Professional Student Internship Programs Vocational students from the Water Utility Science Program at Santiago Canyon College and Los Angeles Trade Technical College work 28 hours a week and rotate through five technical trades for 52 weeks in our Operations and Maintenance Department. OC San has experienced success through the program with 23 of the participants hiring on full-time since the program's inception. 68 1 STRATEGIC PLAN — 2023 OC San also offers a Professional Student Internship Program that allows students at local Universities an opportunity to work within the professional ranks while attending college full- time for a one-year maximum duration. OC San partners with Cal State Fullerton, Cal State Long Beach, Cal Poly Pomona, Chapman University, and UC Irvine, among others in Southern California. • Employee Training and Development Program In addition to providing all legally mandated training, OC San provides training and development opportunities to increase job knowledge and maximize skill sets in employees' current positions, and to prepare them for future opportunities. Comprehensive training programs include legally mandated training, and technical training through industry -specific associations or groups, local schools, and professional associations, including informal on the job training. Employee development is profiled and tracked to ensure compliance with legally mandated training as well as requirements for licenses and certifications. Staff obtains targeted job -related training necessary to keep OC San current with industry best practices and developments in their respective fields of expertise and are eligible to receive Development Pay for job -related licenses and certifications. OC San also promotes professional development through its tuition and certification reimbursement programs for courses completed toward obtaining an associate's, bachelor's or master's degree at accredited colleges, universities, or other institutions or industry -specific certifications. • Orange County Sanitation District University (OC San "U") OC San has a comprehensive employee development program called OC San "U" that offers learning opportunities that increase knowledge, skills, abilities, and enhance organizational awareness. The elective training courses are focused on leadership, technology, communication, OC San business systems, and partnerships for the future. The program is designed to address knowledge transfer as attrition occurs and to develop employees from within the organization for succession management and business continuity. Human Resources oversees the program with volunteers from across the organization serving as program ambassadors. Under this program, employees may also apply to participate in the Cal State Fullerton 14-week Leadership Academy for Public Agencies. • Workforce Vulnerability Assessments OC San management conducts a systematic assessment of its workforce to forecast staffing requirements and identify key and vulnerable positions based on three criteria: criticality, retention, and difficulty to fill. Human Resources facilitates annual workforce vulnerability assessments and works closely with departments to identify potential gaps and develop action plans to respond to future staffing needs. • Talent Readiness Assessments OC San evaluates staff readiness for key positions on a regular basis and focuses its employee development efforts based on identified gaps. Key positions and feeder roles are also identified along with the knowledge, skills, and abilities needed to perform these jobs to create Individual Development Plans (IDP) for employees to prepare to compete for future job opportunities and ensure seamless movement of talent within the organization. Additionally, there are employees who are active members of various professional associations, serve on a Board, or volunteer in various capacities within the wastewater industry. OC San is regularly invited to present and teach others about resource recovery and succession management efforts. Recruiters attend job fairs, and work closely with universities, professional organizations, and serve on advisory committees for career planning, bringing awareness to the organization and reinforcing OC San's image as an industry leader. STRATEGIC PLAN — 2023 169 To remain competitive in the labor market and ensure retention of top talent, OC San conducts Classification & Compensation studies to ensure job classifications accurately reflect the work being performed, set compensation levels accordingly, and stay abreast of market benefit and salary data. The process includes feedback from multiple stakeholders including employees, management, bargaining groups, legal counsel, and Human Resources. Current Situation Currently, 42 percent of OC San's executives and managers are eligible for retirement. In the next five years, the number of eligible management increases to 68 percent. For trades and professional occupations, 26 percent are currently eligible to retire, and that increases to 44 percent by 2028. OC San has many long-term employees with vast knowledge in their respective areas of expertise. The average years of service is nine years with some employees having been a part of the OC San family for over 35 years. Looking at OC San's total attrition over the last five years, we have lost 4,780 years of knowledge and experience by 292 individuals leaving the agency since July 2018. In 2010, OC San proactively implemented a second retirement benefit formula ("classic open plan") ahead of the Public Employee Pension Reform Act, which offered candidates moving from other public sector agencies to OC San a retirement benefit of 2.43 percent at 65, with zero employer paid member contribution. Based on OC San's classic open retirement plan, competing for experienced and highly skilled talent from surrounding municipalities, who offer a more attractive retirement benefit of 2.5 percent or 2.7 percent at 55 in addition to paying for a portion of the employees' contribution, has been challenging. In the last five years, approximately 35 percent of new hires come from other public sector agencies which limits our ability to hire already trained and experienced staff which can be particularly difficult for technical, scientific, and management positions. OC San has had recent experience in competing with the private sector labor market, as well as with public sector candidates withdrawing from the process or declining job offers once they learn of the impact to their retirement benefit formula. Given the legal restrictions which bind OC San to the classic open retirement formula, it is critical that OC San focus its efforts on retaining current staff, attracting qualified and experienced candidates, and investing in developing and growing employees' knowledge, skills, and abilities for the future, to address any potential talent shortages. Future Policy Statement OC San will continue to implement strategic workforce planning processes to ensure workforce capabilities match the work required to meet OC San's current and future needs. OC San will continue to proactively monitor the changing work environment, labor market, and legal landscape to ensure human resources programs are compliant, relevant, competitive, and help facilitate the behaviors, culture and competencies needed to achieve organizational goals. Initiatives to Support Progress Toward the Policy Goal • OC San's employee training programs and activities will be transitioned from individual departments and centralized in Human Resources department over a two-year period. The centralized approach will streamline processes, ensure legal compliance, and provide greater consistency, transparency, and access for all employees, while also being responsive to the needs of the organization. 70 1 STRATEGIC PLAN — 2023 • Maintain and enhance workforce planning initiatives to efficiently and effectively identify, develop, and select the next generation of prepared, capable, and engaged employees through: o Vocational/Professional Student Internship Programs o Workforce Vulnerability Assessments o Talent Readiness Assessments o Orange County Sanitation District University (OC San "U") • Continue to build the OC San "U" program and evaluate various options to partner with member agencies to share content and interactive development opportunities. STRATEGIC PLAN — 2023 171 .wpmAaw11 WWI r r f � 1 irr i R Safety and Physical Security Summary Policy Statement The Orange County Sanitation District (OC San) will ensure the safety, health, and security of employees, contractors, and the public through industry best practices, policies, and procedures that support a safe and secure environment, provide an appropriate level of security, and safeguard OC San's property and physical assets. Background Safety and Health In California, employers must furnish employees with a place of employment free from known or recognized hazards that cause serious physical harm or death, that is compliant with all legal requirements, and aligns with industry best practices. OC San is committed to identifying all hazards through regular inspection, with the goal of eliminating the hazard or providing an acceptable engineering control, implementing administrative controls such as safe work procedures and training, as well as provision of personal protective equipment. Our safety programs have proven effective in ensuring the safety of OC San's workforce, contractors, and members of the public. Emergency Management OC San must be prepared to control risks to the organization, and routinely recognize, evaluate, and prepare for emergencies. An emergency can include an explosion, fire, verified bomb threat, civil disorder, active shooter, or uncontrolled hazardous materials release which interrupts OC San's ability to provide safe and environmentally responsible wastewater treatment. OC San's protocol to control and respond to emergencies is contained within the Integrated Emergency Response Plan (IERP). The IERP identifies and assesses hazards regarding emergency events which OC San may be confronted with. It contains policies, plans, and procedures for preparing and responding to emergencies. When OC San cannot effectively respond to an emergency under routine operations, the Emergency Operations Center (EOC) is activated. OC San's EOC adheres to the National Incident Management System (NIMS) Incident Command System (ICS) framework, which is a standardized approach to command, control, and coordinate emergency response for incidents of any size. Once the immediate emergency has been controlled, then OC San must resume normal operations. In the event of a prolonged emergency state, the return to normal operations is guided by OC San's Continuity of Operations Plan (COOP). In May 2018, a COOP was completed with all divisions contributing to its development. The IERP and COOP programs are updated annually at a minimum, or more frequently, based on emergency response exercises, or due to changes in plant processes or personnel. OC San collaborates, and has mutual aid agreements in place, with other Orange County agencies to ensure available resources are identified and engaged in the event of an emergency. OC San is a member and funding agency of the Water Emergency Response Organization of Orange County (WEROC), which is administered by the Municipal Water District of Orange County (MWDOC). WEROC supports and manages countywide emergency preparedness, planning, response, and recovery efforts among Orange County water and wastewater utilities. Physical Security The Department of Homeland Security (DHS) has designated 16 critical infrastructure sectors, which includes water and wastewater systems. Wastewater systems are vulnerable to a variety STRATEGIC PLAN — 2023 173 of attacks, including acts of terrorism, contamination with deadly agents, physical attacks, and cyberattacks. In addition, DHS indicates that the average time it takes for a critical incident to take place is up to 12 minutes while the average police response time can be up to 11 minutes, and that time could increase should there be a natural disaster. Additional security concerns include physical violence, vandalism, theft, and trespassers. With a footprint of approximately 100 acres at each plant, and over 600 employees, contractors, and members of the public onsite for tours and meetings, it is essential to maintain a security presence that can respond to security threats promptly. OC San contracts with a security firm that includes armed guards to provide round the clock security monitoring of plant access, doors, cameras, and patrolling the perimeter at both plants. Current Situation Risk Management identifies potential risks to the organization and provides solutions for mitigation or reduction of the risk to acceptable levels. Through this process, the Risk Management Division will create a safe, healthy, and secure environment for OC San employees, contractors, and members of the public. Risk Management partners with management and employees to take ownership of identifying risks and mitigating risks within their sphere of control. Risk Management, managers, and staff collaborate to develop written procedures (e.g., policies) that are used for eliminating and controlling hazards at OC San; thus, ensuring compliance with occupational health and safety standards and laws. Safety OC San strives to achieve safety excellence and continually advance our safety and health culture and associated programs. This is exemplified by our pursuit of the California Voluntary Protection Program (Cal/VPP) designation, which is recognized as a higher level of protection for the workplace. The Cal/VPP is a program created by Cal/OSHA to recognize organizations that have implemented safety and health programs that effectively prevent and control occupational hazards. A Cal/VPP workplace is expected to continually improve its safety program, which means a safe workplace for all. A reduction in injuries and illness has been documented at sites that have committed to the VPP approach. In June of 2020, OC San submitted its application to Cal/OSHA for the Cal/VPP program. In October of 2020, the Cal/VPP Manager confirmed through a preliminary site inspection that OC San's Plant No. 1 was eligible, and a subsequent program audit was delayed because of the COVID-19 pandemic. On May 22, 2023, Cal/OSHA completed a weeklong audit of Plant No. 1's safety and health management system, which included physical walkthroughs, employee interviews, as well as a review of our safety programs and procedures. OC San anticipates a decision regarding its Cal/ VPP application in the last quarter of 2023. OC San updated its Safety Incentive Program in December 2022 to a user friendly, virtual point - based platform that makes recognition more transparent, flexible, and meaningful to employees. OC San's Safety Incentive Program recognizes and rewards employees for their improvement of safe work practices, resolving unsafe working conditions, and achieving safety excellence in job performance. The new program provides a broader selection of awards, ranging from OC San apparel to an assortment of sanctioned products. OC San continues to conduct third party annual comprehensive surveys. The goal of the surveys is to identify regulatory gaps in safety, health, industrial hygiene, and emergency management. Opportunities for improvement that are identified as part of the survey process are tracked to completion. 74 1 STRATEGIC PLAN — 2023 Emergency Management OC San partners with local agencies to ensure available resources are identified and engaged in the event of an emergency. In 2023, OC San conducted plant -wide building evacuations and a multi -agency tabletop exercise that included a shelter -in -place drill. These simulation exercises are an instrument to train for, assess, and evaluate OC San's emergency response performance and test our employee notification capabilities. Security The designation of wastewater systems as critical infrastructure by the Department of Homeland Security requires OC San to be diligent in protecting people and property from security breaches. OC San seeks to continually improve the security program. On May 11, 2023, OC San partnered with the Cybersecurity & Infrastructure Security Agency (CISA) to complete a Cyber Tabletop Exercise to examine OC San's ability to identify, protect against, detect, and respond to a significant cyber incident affecting plant processes. The exercise examined internal and external information sharing, notifications, incident response, analysis of procedures, roles and responsibilities, and the ability of plant operations to operate equipment without use of computer systems. OC San will issue a Request for Proposal (RFP) in late 2023 for Security Services, which will include the expansion of security services for OC San's new Headquarters Complex. As part of the RFP evaluation, OC San will review procedural and technical enhancements and innovations that may improve the existing program. OC San's Security Committee, which includes stakeholders from a cross-section of the organization, continues to meet quarterly to collect input and assess physical and cyber security concerns and suggestions. Responsibilities of the committee include, but are not limited to, reviewing security orders and policies, reviewing security incident reports, and planning drills. Future Policy Statement Risk Management will continue to implement strategic initiatives that will ensure the safety, health, and security of its workforce, and proactively plan for emergencies to ensure continuity of operations. Staff is dedicated to proactively monitoring the changing work environment and requirements to implement programs now that address future vulnerabilities. Assessments of changes in business needs, plant processes, and legal requirements are necessary to ensure a safe and secure work environment. The results of improvement will be measured using leading metric indicators and reported to the workforce to foster employee engagement. Initiatives to Support Progress Toward the Policy Goal Safety • Identify regulatory gaps and opportunities to continually improve OC San's safety and health management system to participate in the Cal/OSHA Voluntary Protection Program (VPP). • Continue to foster a culture where employees are accountable for their safety, as well as the safety of others. STRATEGIC PLAN — 2023 175 Emergency Management • Support facility and countywide emergency preparedness, response, and recovery efforts by partnering with entities, such as, the Water Emergency Response Organization of Orange County (WEROC), Orange County Sherriff Department, and local fire departments to plan and conduct disaster preparedness exercises and drills. • Train new employees or retrain existing employees who staff OC San's Emergency Operation Center (EOC) on the Incident Command System (ICS) and emergency disaster forms. Security • Identify and assess security vulnerabilities and improve physical security systems such as CCTV monitoring, access control systems, physical key management systems, and physical patrols of occupied buildings and plant facilities. 76 1 STRATEGIC PLAN — 2023 �. ;� -`.�� ��-_i n •Pig-,�4r;t��4g-�i1fl •- � I "' ' •_'J7'fliliin'r.yiic{IPrt7 Reclamation Plant No. 1 (Administration Offices) 10844 Ellis Avenue Fountain Valley, California 92708 714.962.2411 Treatment Plant No. 2 22212 Brookhurst Street Huntington Beach, California 92646 For more information Email: Forinformation@ocsan.gov Ph-- 71 d QR9 9di 1 10/2023 tirASANMEMORANDUM ORANGE COUNTY SANITATION DISTRICT June 26, 2024 TO: Members of the Steering Committee FROM: Robert C. Thompson/�CC / General Manager SUBJECT: General Manager's FY 2024-2025 Work Plan I am pleased to present my Work Plan for Fiscal Year 2024-2025. The plan has been developed to support the Strategic Plan and is organized under four Strategic Planning categories: Business Principles, Environmental Stewardship, Wastewater Management, and Workplace Environment. The 21 goals for next year include two goals from the previous year as well as new goals that will ensure ouroperations are safe and efficient. In addition, we will continue leading the way in innovation, financial management, and work force while maintaining the level of service we have committed to. 1. Business Principles • Asset Management Plan —Implement a siphon cleaning program by June 30, 2025. • Progressive Design -Build —Select an Owner Advisorfor Progressive Design - Build by March 31, 2025. Develop Progressive Design -Build contracttemplates by June 30, 2025. • Earned Value — Review Engineering's earned value processes for project reporting and compare with industry best practices by June 30, 2025. • NPDES Permitting Legal Support— Secure legal and technical resourcesfor 2026 NPDES permit renewal by March 31, 2025. • Permit Fees — Complete analysis of the current Capital Facilities Capacity Charge program to identify deficiencies forthe member agencies and provide program improvement recommendation by December 31, 2024. Create a customer portal for online submission and payment of fees by June 30, 2025. • Headquarters Educational Display — (Carried over from FY 23124) Develop a Board approved design for the hands-on educational displayforthe outdoor patio by June 30, 2025. General Manager's FY 2024-2025 Work Plan June 26, 2024 Page 2 of 3 • Regional Sewer Spill Training —Con duct regional sanitary sewer spill training for the collections system by June 30, 2025. 2. Environmental Stewardship • Plant No. 2 Process Facilities Seismic Resilience — Select a consultantfor the Plant No. 2 Process Facilities Seismic Resiliency Study by December 31, 2024. • Urban Runoff Optimization Study — Receive draft Urban Runoff Study identifying opportunities within Orange County Water District, County of Orange, and OC San's services area for additional dry weather urban runoff by June 30, 2025. • Enforcement Response Plan — Update pretreatment/source control enforcement response plan in alignmentwith State of California's 2024 water quality enforcement guidance document for legal review by June 30, 2025. • Pretreatment Management — Expand OC San's Pretreatment Honor Roll program to include wastehaulers by June 30, 2025. • Food Waste — Finalize Memo of Understanding with Orange County Waste and Recycling by December 31, 2024. Agree on deal points fora cooperative agreement and make go/no-go decision to move forward by June 30, 2025. 3. Wastewater Management • Plant No. 1 Distributed Control System Human Machine Interface (HMI) — Complete the conversion ofthe Plant No. 1 HMI system from CRISP to ABB by June 30, 2025. Deep Well Injection — Evaluate the initial feasibility of deep well injection of biosolids. Issue and evaluate Request for Information for potential deep well injection design -build-operate vendors and review permitting requirement by June 30, 2025. Supercritical Water Oxidization —(Carried over from FY 23124) Complete the commissioning and begin demonstration of the pilot project by March 31, 2025, subject to regulatory permitting. Publicize project status. General Manager's FY 2024-2025 Work Plan June 26, 2024 Page 3 of 3 Property Management — Complete a physical assessment of all current OC San easements and rights -of -way. Document the assessment in written and visual forms as part of the OC San easement management program. Complete the assessment and report by June 30, 2025. 4. Workplace Environment • Staff Training —Create development plans for each employee with associated training plans by June 30, 2025. • Scanning and Paper Reduction — Complete Scope of Work for Phase III, issue a Purchase Order Agreement Request for Proposal and award the contract for implementation of the trusted system, Phase III for Environmental Services. Complete Phase III by June 30, 2025. • Labor Agreements — Complete all labor agreements for all labor groups by June 30, 2025. • OSHA Voluntary Protection Program (VPP) certification for Plant No. 2 — Apply for VPP certification for Plant No. 2 by June 30, 2025. • Employee Engagement Survey— Conductan employee engagement survey by June 30, 2025 to gather feedback on workplace en vi ron men t satisfaction, communication effectiveness, recognition programs, and professional development opportunities. Utilize survey results to identify areas for improvement and develop action plans aimed at enhancing employee engagement and satisfaction levels. :Z01111011111 Rob Thompson General Manager The Process 2021 20 :illm'm'm'm'm Strategic Plan Budget Development Development Five Rate General Manager Work Plan Budget General Manager Update Work Plan Strategic Plan Budget Development Development Year Prop Study 218 w aria' oc - SAN ORANGE COUNTY S NnAnON DISTRICT 2026 General Manager Work Plan Budget General Manager Update Work Plan strategic plan Budget Development Development Timeline March 19 April 16 April 30 Strategic Plan Strategic Plan EMT Planning Session Workshop #1 13 Workshop #2 July 23 June 25 May Risk Register Levels of Service Adopt GM Work Plan Proposed & Yr End Core Values New Policy Paper GM Work Plan September 24 November 19 August Draft Strategic Plan Final Strategic Plan Strategic Plan Presented to Presented to Development 0 the Board 0 the Board OC San's Policy Areas Business Principles • Budget Control and Fiscal Discipline • Asset Management • Cybersecurity ARTIFICIAL INTELLIGENCE • Property Management • Organizational Advocacy and Outreach astewater Management Chemical Sustainability Biosolids Management DEEP WELL INJECTI Constituents of Emerging Concern POTABLE WATER SALINITY CONTROL md Environmental Stewardship • Energy Independence Climate and Catastrophic Event Resilience Food Waste Treatment • Water Reuse • Environmental Water Quality, Stormwater Management and Urban Runoff Workplace Environment Resilient Staffing Safety and Physical Security 5/23/2025 Our Commitment to... • Ratepayers • Regulators • Employees • Board of Directors Levels of Service OC San's Levels of Service (LOS) are the commitment made to our ratepayers, regulators, employees, and the Board of Directors on our operational efforts. The LOS align with the Strategic Plan and showcase how the initiatives are being implemented and monitored. 5 Compliance with Ocean Discharge Permit Dry weather urban runoff collected and treated Major non-conformance audit findings Respond to corrective actions within regulatory timeline for air, solids, and water compliance audits Comply with Fleet Air Emission Regulations Number of odor complaints under normal operations Sanitary Sewer Spills per 100 miles Compliance with core industrial pretreatment requirements I 100% Up to 1oMGD <5 per permit per audit 100% 100% <510 events for the treatment plants <12 events for the collection system <2.1 100% 3 5/23/2025 Provide specification effluent to Groundwater Replenishment System Beneficially reuse biosolids during normal operations Respond to collection system spills within 1 hour of notification Respond to odor complaints Respond to public complaints or inquiries regarding construction within 24 hours Respond to biosolids contractor violations within one week of violation notice Respond to Public Records Act requests within the statutory requirements Dig alert response within ^Q hews 2 business days 100% 100% 100% Within 1 hour in Plants Within 24 hours in collections 100% 100% <=10 days 100% M 5/23/2025 event FnenitE)Fing and incident handling, peFeeF�t successfulCybeFseGHFity Respond to all cybersecurity events and incidents to >97% mitigate risks and maintain an overall cyber health rating >90% according to security operations standards Annual real property assessments/inspections 20% of the properties Annual inspection, documentation, and evaluation of collection 70 miles of syste m sewers 0 Annual user fees sufficient to cover 100% of 0&M Budget Collection, treatment, and disposal costs per million gallons Maintain Credit Rating (Moody's, Fitch, S&P) 10 880 manholes 100 % within 10% of budget INTO 5 5/23/2025 Employee injury incident rate per 100 employees 44.-4 <4.2 Annual days away from work, restricted activity, or job transfer 4 resulting from a work -related injury <3.2 Annual training hours per employee 11 45 hA--Pr, <= 40 hours Questions'?. 12 ACWA APWA AQMD ASCE BOD CARB CASA ORANGE COUNTY SANITATION DISTRICT COMMON ACRONYMS Association of California LOS Water Agencies American Public Works MGD Association Air Quality Management District MOU American Society of Civil NACWA Engineers Biochemical Oxygen Demand NEPA California Air Resources Board NGOs California Association of Sanitation Agencies NPDES CCTV Closed Circuit Television I NWRI California Environmental CEQA Quality Act O & M Capital Improvement CIP Program OCCOG California Regional Water CRWQCB Quality Control Board OCHCA CWA Clean Water Act OCSD California Water Environment CWEA Association OCWD EIR Environmental Impact Report OOBS EMT Executive Management Team I OSHA EPA US Environmental Protection I PCSA Agency FOG Fats, Oils, and Grease I PDSA gpd gallons per day PFAS GWRS Groundwater Replenishment PFOA System ICS Incident Command System PFOS IERP Integrated Emergency POTW Response Plan JPA Joint Powers Authority Ippm LAFCO Local Agency Formation I PSA Commission Level Of Service RFP Request For Proposal Million Gallons Per Day RWQC Re Tonal Water Qualit Memorandum of SARFP Understanding National Association of Clean SARI Water Agencies National Environmental Policy SARW Act Non -Governmental SAWP Organizations National Pollutant Discharge SCADA Elimination System B g y Control Board A Santa Ana River Flood Protection Agency Santa Ana River Interceptor Santa Ana Regional Water QCB Quality Control Board A Santa Ana Watershed Project Authority Supervisory Control And Data Acquisition National Water Research Southern California Institute SCAP Alliance of Publicly Owned Treatment Works Operations & Maintenance SCA South Coast Air Qualit Orange County Council of SOC Governments Orange County Health Care SRF Agency Orange County Sanitation SSM District Orange County Water District ISSO QMD y Management District WA South Orange County Wastewater Authority Clean Water State Revolving Fund P Sewer System Management Plan Sanitary Sewer Overflow Ocean Outfall Booster Station 1SWRCState Water Resources B Occupational Safety and TDS Health Administration Professional Consultant/Construction TMDL Services Agreement Professional Design Services TSS Agreement Per- and Polyfluoroalkyl Substances WDR Perfluorooctanoic Acid IWEF Perfluorooctanesulfonic Acid WERF Publicly Owned Treatment WIFIA Works parts per million 1WIIN Professional Services I WRDA Agreement Control Board Total Dissolved Solids Total Maximum Daily Load Total Suspended Solids Waste Discharge Requirements Water Environment Federation Water Environment & Reuse Foundation Water Infrastructure Finance and Innovation Act Water Infrastructure Improvements for the Nation Act Water Resources Development Act ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS ACTIVATED SLUDGE PROCESS — A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater. BENTHOS — The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone. BIOCHEMICAL OXYGEN DEMAND (BOD) — The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. BIOGAS — A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. BIOSOLIDS — Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high -quality product can be recycled as a soil amendment on farmland or further processed as an earth -like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. CAPITAL IMPROVEMENT PROGRAM (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. COLIFORM BACTERIA — A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere, used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. COLLECTIONS SYSTEM — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. CERTIFICATE OF PARTICIPATION (COP) — A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. CONTAMINANTS OF POTENTIAL CONCERN (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. DILUTION TO THRESHOLD (D/T) — The dilution at which the majority of people detect the odor becomes the D/T for that air sample. GREENHOUSE GASES (GHG) — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect"). GROUNDWATER REPLENISHMENT SYSTEM (GWRS) — Ajoint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and OCSD provides 70 million gallons per day of drinking quality water to replenish the local groundwater supply. LEVEL OF SERVICE (LOS) — Goals to support environmental and public expectations for performance. N-NITROSODIMETHYLAMINE (NDMA) — A N-nitrosamine suspected cancer -causing agent. It has been found in the GWRS process and is eliminated using hydrogen peroxide with extra ultra -violet treatment. NATIONAL BIOSOLIDS PARTNERSHIP (NBP) —An alliance of the NACWA and WEF, with advisory support from the EPA. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS) — A large group (over 6,000) of human -made compounds that are resistant to heat, water, and oil and used for a variety of applications including firefighting foam, stain and water-resistant clothing, cosmetics, and food packaging. Two PFAS compounds, perfluorooctanesulfonic acid (PFOS) and perfluorooctanoic acid (PFOA) have been the focus of increasing regulatory scrutiny in drinking water and may result in adverse health effects including developmental effects to fetuses during pregnancy, cancer, liver damage, immunosuppression, thyroid effects, and other effects. PERFLUOROOCTANOIC ACID (PFOA) — An ingredient for several industrial applications including carpeting, upholstery, apparel, floor wax, textiles, sealants, food packaging, and cookware (Teflon). PERFLUOROOCTANESULFONIC ACID (PFOS) — A key ingredient in Scotchgard, a fabric protector made by 3M, and used in numerous stain repellents. PLUME — A visible or measurable concentration of discharge from a stationary source or fixed facility. PUBLICLY OWNED TREATMENT WORKS (POTW) — A municipal wastewater treatment plant. SANTA ANA RIVER INTERCEPTOR (SARI) LINE — A regional brine line designed to convey 30 million gallons per day of non - reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. SANITARY SEWER — Separate sewer systems specifically for the carrying of domestic and industrial wastewater. SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD) — Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. SECONDARY TREATMENT — Biological wastewater treatment, particularly the activated sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. SLUDGE — Untreated solid material created by the treatment of wastewater. TOTAL SUSPENDED SOLIDS (TSS) — The amount of solids floating and in suspension in wastewater. ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS TRICKLING FILTER — A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. URBAN RUNOFF — Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. WASTEWATER — Any water that enters the sanitary sewer. WATERSHED — A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River Watershed.