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1 { } 5year strategic plan november 2012

2 Orange County Sanitation District Five-Year Strategic Plan November 2012 {5 year} strategic plan update november 2012

3 Table of Contents OCSD Board of Directors Message from the General Manager ii iii Executive Summary 1 The Strategic Planning Framework 2 Mission Statement 3 Vision Statement 4 Core Values 5 Risk Register 6 Strategic Goals & Levels of Service 7 Goals Completed Since Environmental Stewardship 11 Business Principles 13 Wastewater Management 15 Workplace Environment 17 Appendix A: New Issue Papers 19 Appendix B: Previous Issue Papers 27 Appendix C: Glossary 47 {5 year} strategic plan update november 2012 i

4 OCSD Board of Directors Chair Vice Chair 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 Yorba Linda Troy Edgar John Anderson Active Director Gail Eastman Don Schweitzer Fred Smith Prakash Narain Larry Crandall Gregory Sebourn Bill Dalton Joe Carchio Jeffrey Lalloway Tom Beamish Mark Waldman Troy Edgar Steven Rosansky Jon Dumitru Scott Nelson Sal Tinajero Michael Levitt David Shawver John Nielsen Brad Reese John Anderson Sanitary/Water Districts Costa Mesa Sanitary District Midway City Sanitary District Irvine Ranch Water District James M. Ferryman Joy L. Neugebauer John Withers Orange County Board of Supervisors Janet Nguyen ii {5 year} strategic plan update november 2012

5 Message from the General Manager Five years ago, the Board of Directors and staff charted a course for success in the future through the development of the first Five-Year Strategic Plan. We committed to the execution of that plan and implementation of the goals necessary to achieve success. The Strategic Plan established Levels of Service to ensure that the quality of wastewater treatment would protect the health of residents served by the District and the environment in which they live. Annually, the Goals and Levels of Service have been adjusted when necessary and new goals have been added to meet the changes in operating, regulatory, and very challenging economic conditions. I am pleased to present successes from attained goals. Many goals have been completed that improved technical operations, biosolids management, odor control, departmental strategic planning, succession planning, and regulatory compliance. Some very important goals are ongoing, such as the Santa Ana River Interceptor relocation, the continuing effort to prepare staff for the future, and the transfer of local sewer lines to responsible cities. The greatest achievement during these last five years has been the construction of nearly $623 million of secondary treatment facilities, meeting all the regulatory requirements ahead of schedule, treating wastewater to secondary treatment standards, and doing it on time and on budget. We focused on four key strategies while developing the original Strategic Plan in 2007 and in subsequent updates while facing complex issues and challenges: Our most important responsibility is to provide safe, effective wastewater treatment; We continue to make decisions by incorporating social, environmental and financial considerations; We remain leaders in the protection of the environment, collaborating with other stakeholders in the watershed to ensure we effectively meet the needs of our customers; and We continue to provide employees with resources to do their jobs and give them opportunities for career growth. Those same four points have focused staff for the last five-years and still remain the drivers for our Level of Service updates and each new goal that has been presented in subsequent Strategic Plans. Today we set the course for this next year with a new set of goals and modifications to the Levels of Service. I am confident in the staff and the leadership at the Sanitation District, and I am confident that this organization will continue to remain a leader within our industry, and will continue to protect the public health and environment for our rate payers. My tenure at the Orange County Sanitation District will end soon. I look forward with anticipation to watching the Sanitation District continue to build on our success. I am grateful to the Board of Directors for their leadership and support and to our staff for their continued dedication. Respectfully submitted, James D. Ruth General Manager {5 year} strategic plan update november 2012 iii

6 Executive Summary In November 2007, the Board of Directors adopted the first five-year comprehensive strategic plan to steer OCSD s efforts and engage the organization to envision service levels and operational needs. This year marks the end of that five-year strategic plan cycle. Since 2007, 31 strategic goals have been completed, two have been cancelled after further evaluation and three new or modified goals remain and are scheduled to be completed by The plan has continued to provide direction for moving from good to great through annual assessments and incremental changes. As a result of the discussion at the October 17, 2012 Strategic Planning Workshop, three new goals were added, three modifications to existing levels of service were made and two goal modifications were included in the plan. New Goals: Chemical Sustainability Ensure a reliable and sustainable chemical supply using multiple vendors to reduce the risk of supply disruption while benefiting from competitive pricing. Targeted for completion in FY Business Continuity Planning Develop a business continuity plan that will define how OCSD will continue its everyday business functions after an event that interrupts normal operations for an extended period of time. Targeted for completion in FY Biosolids Recycling Policy Assess and revise the 2006 Biosolids Board Resolution (Policy) to reflect recent developments, experiences, and circumstances concerning biosolids management. Targeted for completion in FY Modification to Level of Service: Number of Odor Complaints Establish a new level of service target = 0 (zero) under normal operating conditions for Treatment Plants 1 and 2. Meet Secondary Treatment Standards Establish a new level of service target for CBOD = 25 mg/l and TSS = 30 mg/l. (CBOD = carbonaceous biological oxygen demand; TSS = total suspended solids). Biosolids Recycling Establish a new level of service target through 2017 of less than or equal to 100 tons per day to landfill. Goal Modification: Odor Control Update and Action Plan Assess the performance of current odor control systems, validate the appropriate level of service, align future odor control improvements with asset management objectives, and update the capital improvement program for odor control to meet the level of service target. Targeted for completion in FY Workforce Planning and Workforce Development Design and implement comprehensive workforce planning and development activities to improve workforce capability, adaptability, efficiency, and accountability. Targeted for completion in FY The issue papers describing these goals and level of service are contained in Appendix A. The Strategic Plan continues to chart a focused roadmap of success for the future of the Orange County Sanitation District. It continues to address critical issues and challenges, and to communicate clear and concise future direction to OCSD staff. p. 01 {5 year} strategic plan update november 2012

7 Strategic Planning Framework The planning framework is illustrated below and shows how the Board of Directors play a critical role in strategic planning and resource allocation. The strategic planning effort starts with the Board of Directors setting overall policy and priorities for the Sanitation District. Based on that policy direction, staff develops the annual operational plan and budget. Monitoring and Evaluation Strategic Planning New or altered Levels of Service Board Approval of Budget Strategic Planning Framework Board Approval of Strategic Plan Budget Operational Planning Goals and Objectives {5 year} strategic plan update november 2012 p. 02

8 OCSD Mission Statement The Mission Statement is the basic foundation that defines why we exist. We protect public health and the environment by providing effective wastewater collection, treatment, and recycling. p. 03 {5 year} strategic plan update november 2012

9 OCSD 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 the future in the delivery of services to our customers, vendors, other agencies, the general public, and each other. The Orange County Sanitation District is committed to: Making decisions in an open and honest way to produce optimum financial, environmental and societal results. Cooperating with other stakeholders to protect the ocean and regional water resources for the people we serve. Beneficially recycling wastewater, biosolids and other resources using safe and effective processes and systems. Developing the best possible workforce by providing employees with opportunities to advance their careers through enhanced growth, responsibility, and professional development. {5 year} strategic plan update november 2012 p. 04

10 Core Values The Core Values support the Mission and Vision Statements by expressing the values, beliefs, and philosophy that guides our daily actions. They help form the framework of our organization and reinforce our professional work ethic. Honesty, Trust and Respect We aspire to the highest degree of integrity, honesty, trust, and respect in our interaction with each other, our suppliers, our customers, and our community. Teamwork and Problem Solving We strive to reach OCSD 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. Leadership and Commitment We lead by example, acknowledging the value of our resources and using them wisely and safely to achieve our objectives and goals. We are committed to act in the best interest of our employees, our organization, and our community. Learning/Teaching We continuously develop ourselves, enhancing our talents, skills, and abilities, knowing that only through personal growth and development will we continue to progress as an agency and as individuals. Recognition/Rewards We seek to recognize, acknowledge, and reward contributions to OCSD by our many talented employees. p. 05 {5 year} strategic plan update november 2012

11 Risk Register The Risk Register is an annual compilation of the various risks, opportunities and continuity challenges facing the Orange County Sanitation District, as seen by the Sanitation District s management team. The Risk Register Update in 2012 was conducted as the world dealt with a variety of crises. In the previous several months, there were a number of major earthquakes and floods around the world, a large cruise ship went aground, the San Onofre nuclear plant was shut down due to deteriorating pipes and the Eurozone struggled with high sovereign debt levels. For the Risk Register Update this year, managers and executive management of OCSD focused their attention on District concerns deemed particularly compelling, giving higher scores to several risks than in past years. The 2012 Risk Register Update identified these as the top risks: California financial instability points to the continuing monetary turmoil in California state government and the possibility that decisions by the state could impact OCSD funds collected. Retirement of experienced employees reflects the fact that many long-time OCSD employees are nearing or are eligible for retirement. The top opportunities for the 2012 update are: Hire good staff refers to the opportunity to find and hire competent and experienced people during a time when many are available. Train staff for new facilities, develop new skills and career growth identify and value employees with people skills as new construction finishes and comes online, and as long-time employees retire, there is an opportunity to prepare OCSD and its staff for these changes. Prioritize activities and resources reflects the fact that money is tight in these economic times, and so it is valuable to carefully allocate money where needed the most. The major continuity challenges include: Maintaining chemical supply if disruption refers to the Sanitation District s use of important chemicals used to treat wastewater, and our need to keep the supply coming even in the face of a disaster. Development of formal business continuity plan that reflects that while the District has an emergency response plan, along with safety and risk management procedures, it requires a focus on a formal longer-term business continuity plan which includes the smooth continuation of business operations after a disaster. Staff is in the process of developing plans to mitigate the identified risks and challenges, and take advantage of the opportunities. For example, as the successful effort to commission full secondary treatment is coming to fruition, the Sanitation District recently completed a reorganization of its staff to streamline its operations and eliminate duplicative functions, saving $500,000. The District s BLAST program seeks to give employees opportunities to improve the skills needed to successfully work in a high-performance environment. Regarding continuity, staff is developing a formal business continuity plan that focuses on the ability to continue treating wastewater even under difficult conditions. {5 year} strategic plan update november 2012 p. 06

12 Strategic Goals & Levels of Service On the following pages are the strategic goals and levels of service for the next five years. New goals for this report are noted and all goals include a projected completion time. The levels of service standards are measures of service that are seen by our customers as high priorities. Goals and levels of service are divided into four areas: Environmental Stewardship OCSD participates collaboratively in the protection of regional water resources for the benefit of the people we serve. Business Principles OCSD makes every decision based on short and long-term environmental, societal, and financial impacts (the triple bottom line). Wastewater Management OCSD beneficially reuses and recycles water and other resources using safe and effective wastewater systems. Workplace Environment OCSD provides an environment of partnership, growth, opportunity, responsibility and accountability. p. 07 {5 year} strategic plan update november 2012

13 Goals completed since adoption of the 2007 Five-Year Plan Environmental Stewardship 1. Contaminants of Potential Concern (CPC) Complete three phase testing and analysis of 550+ CPC, prepare report on findings and recommendations, develop initial source control strategy if there are CPCs identified that require control. Completed FY Management System for Environmental Compliance Implement a management control system for environmental compliance information that incorporates a dashboard-style report. Completed FY Engine Emission Compliance Complete study to evaluate alternatives for complying with lower emission limits in the South Coast Air Quality Management s Rule Initiate planning and design of demonstration testing of the most promising technology(s) identified in the study. Completed FY Fuel Cell Evaluation Start up 300 kw demonstration unit. Completed FY10-11 a. Evaluate cost feasibility of replacing or supplementing CGS engines with fuel cells. Completed FY Climate Change/Environmental Footprint Initiative Develop an overall strategy for responding to climate change regulations and proactively adapting to the effects of climate change including identification and mitigation of greenhouse gases and adapting to any impacts to our facilities and operations. Completed FY a. Develop models to estimate greenhouse gas and traditional pollutant emissions for determination of our environmental footprint. (Functional predictive greenhouse gas model completed.) Completed in FY Reclaiming Santa Ana River Interceptor Line (SARI) Flows Meet with stakeholders, develop a list of obstacles that need to be overcome to reclaim the SARI Line and develop a strategy to obtain regulatory approval of reclaiming SARI Line flows. This goal was canceled in FY due to inability to obtain regulatory approval. The tunneling machine entering the receiving shaft indicates the completion of one of the critical tunneling segments of the Santa Ana River Interceptor project. This project is relocating the OCDS s pipeline to safer ground outside the Santa Ana River alignment. {5 year} strategic plan update november 2012 p. 08

14 Business Principles 1. Sewer Rate for Green Development Submit for Board approval an amendment to sewer rate ordinance with incentives for green developments. Completed FY Complete Facilities Master Plan Update Complete a comprehensive update of the Facilities Master Plan and obtain Board approval. Completed FY Enterprise Information Technology Strategic Plan Complete a District-wide Information Technology Strategic Plan. Completed FY Updating OCSD s Risk Register Review and update OCSD s risk register to include an assessment of technical, regulatory, financial, and political risks (among others) and possible mitigation strategies. Completed FY Annex Unincorporated Areas With Board concurrence, annex unincorporated areas into OCSD s service area. Completed FY Review Interagency Agreements Conduct a comprehensive review of agreements with the Santa Ana Watershed Project Authority and Irvine Ranch Water District, and, if appropriate, reopen for discussion. Completed FY Strategic Business Plan With Board concurrence, annually update and implement the Strategic Plan and Business Plan. Completed FY Business Accountability Charters Create Business Accountability Charters for each department, consistent with those developed by managers and supervisors. Completed FY Chemical Supplies Develop a Chemical Sustainability Plan that provides OCSD with options for obtaining wastewater treatment chemicals during chemical shortages, emergencies or complete stoppages. Completed FY Full-Cost Recovery Conduct a comprehensive review of the Sanitation District s Urban Runoff Program to ensure a fair share recovery of costs for services. Completed in FY Full-Cost Recovery Implement a direct charging mechanism to recover the full cost of urban runoff treatment starting July 1, 2013 when the new rate structure is in place. Completed in FY p. 09 {5 year} strategic plan update november 2012

15 Wastewater Management 1. Groundwater Replenishment System Maximize the production of GWR System product water to augment and protect the Orange County groundwater basin with a goal of 70 mgd. Completed FY Sustainable Biosolids Program Complete new in-county Compost Take-Back Program Plan strategy. Completed FY a. Evaluate the feasibility of deep injection/methane recovery including commissioning a study of the geological formations below Plants 1 and 2, and availability and acceptability of any existing wells. Completed FY b. Evaluate option of processing some biosolids at the City of Los Angeles Terminal Island demonstration well. Completed FY Implement Energy Master Plan After the completion of the plan, assess final recommendations to ensure adequate power resources and energy management. Completed FY Disinfection of Final Effluent Develop a cost effective program to sustain protection of public health associated with bacteria in the effluent and incorporate program elements into our NPDES Permit. Completed in FY Workplace Environment 1. Space Planning Study Recommendations Complete relocation of staff housed in Information Technology Trailers to the Administration Building, Control Center and Building 6. Completed FY Improve the Sanitation District Security Provide long-term security enhancements at both treatment plants and within OCSD s Collections System. Completed FY Safety and Health Strategic Plan Develop and implement a Safety and Health Strategic Plan for all OCSD activities. Completed FY Human Resources Strategic Plan Design, develop and implement human resources policies, practices, systems and tools to ensure OCSD has a workforce that meets future needs of OCSD and the public it serves. Completed FY Succession Plan Implement the Succession Management Plan including management training and the creation of a Leadership Academy. Completed FY North County Yard Open the North County Maintenance Yard and complete the relocation of selected staff and equipment to the facility. Implement flex space for added agency-wide needs as appropriate. This goal was canceled in FY and the facility is leased. {5 year} strategic plan update november 2012 p. 10

16 Environmental Stewardship Goals OCSD participates collaboratively in the protection of regional water resources for the benefit of the people we serve. 1. Santa Ana River Interceptor Line Relocation Work in conjunction with the County of Orange and the Federal Government to relocate the Santa Ana River Interceptor Line by June Targeted for completion in FY Engine Emission Compliance Implement capital improvements or operational modifications in order to achieve compliance. Targeted for completion in FY Fuel Cell Evaluation Evaluate performance and fuel clean up effectiveness. Targeted for completion in FY Environmental Stewardship Levels of Service FY Level of Service OCSD will protect public health and the environment Results Target Accept dry weather urban runoff diversion flows without imposing fees. 1.8 mgd Up to 4 mgd Maximum off-site odor impact Reclamation Plant No D/T 14 D/T Treatment Plant No D/T 17 D/T (Target dates will be established as part of the Odor Control Master Plan update scheduled for 12/2014.) Air emissions health risk to community and employees, per one million people (for each treatment plant) 9 < 10 No Notices of Violation (NOVs) with air, land, and water permits 2 0 FY Level of Service OCSD will be a good neighbor Results Target Odor complaint response: Treatment Plants within 1 hour 100% 100% Collection System within 1 working day 100% 100% Number of odor complaints: Reclamation Plant No * Treatment Plant No * Collection System * New target under normal operating conditions Respond to collection system spills within 1 hour 100% 100% p. 11 {5 year} strategic plan update november 2012

17 Headworks Biotowers Odor control system to reduce offsite odors. Research project for hydrogen fuel cell and fueling station has been installed and is operational at Plant No. 1, converting digester gas into electricity for on-site use and hydrogen gas for fueling automobiles. SARI dedication ground breaking ceremonies at the relocation of the Santa Ana River Interceptor line October 11, Olfactometry uses the sense of smell or olfactory stimuli in a controlled group of people to measure the concentration of an odorant in an air sample. Biosoilds Recycled biosolids used on non-food crops as a land application. Chemical dosing station Odor and corrosion control for the collection system. {5 year} strategic plan update november 2012 p. 12

18 Business Principles Goals OCSD makes every decision based on short and long-term environmental, societal, and financial impacts (the triple bottom line). 1. Local Sewer Transfers Complete the transfer of local sewers to member agencies and cities, focusing on completion of the Tustin transfer. Targeted for completion in FY Five-Year Rate Plan Prepare an updated 5-year rate schedule for Board consideration to go into effect July 1, Targeted for completion in FY Chemical Sustainability (new) Ensure a reliable and sustainable chemical supply using multiple vendor contracts to reduce the risk of supply disruption while benefiting from competitive pricing. Targeted for completion in FY Business Continuity Planning (new) Develop a Business Continuity Plan (BCP) that will define how OCSD will continue its everyday business functions after an event that interrupts normal operations for an extended period of time. Targeted for completion in FY Trickling filter at Plant No. 2. p. 13 {5 year} strategic plan update november 2012

19 Business Principles Levels of Service FY Level of Service OCSD will exercise sound financial management Results Target COP service principal and interest < O&M expenses < O&M expenses Annual user fees Sufficient Sufficient to cover all O&M requirements Actual collection, treatment, and disposal costs million gallons in comparison with the budget 8.7% under budget 10% of budget Annual variance from adopted reserve policy % Budgeted reserves Maintain AAA Bond Rating 100% 100% FY Level of Service OCSD will be responsive to our customers Results Target Respond to public complaints or inquiries regarding 100% >90% construction projects within 1 working day New connection permits processed within one working day 100% >90% Comparison of Single-Family Residential Rates Per Year $700 $600 $500 $400 $300 $200 $100 0 San Francisco San Diego Vallejo City of LA Cntl Contra Costa Dublin Haywood Union Fresno East Bay MUD OCSD Sacramento Irvine Ranch Oro Loma LACSD Source: 2012 {5 year} strategic plan update november 2012 p. 14

20 Wastewater Management Goals OCSD beneficially reuses and recycles water and other resources using safe and effective wastewater systems. 1. Sustainable Biosolids Program a. Conduct research to reduce the amount of biosolids produced and increase digester gas production. Targeted for completion in FY b. (new) Assess and revise the 2006 Biosolids Board Resolution (Policy) to reflect recent developments, experiences, and circumstances concerning biosolids management. Targeted for completion in FY Odor Control Update and Action Plan (modified) Assess the performance of current odor control systems, validate the appropriate LOS, align future odor control improvements with asset management objectives, and update our Capital Improvement Program for odor control to meet our LOS goals. Targeted for completion in FY Ocean Protection Undertake studies to determine the cause of benthic community changes near the ocean outfall and take corrective action to return affected areas to reference conditions. Targeted for completion in FY (Board presentation 1st quarter 2013) Ocean Monitoring Program p. 15 {5 year} strategic plan update november 2012

21 Wastewater Management Levels of Service FY Level of Service OCSD will provide a safe reliable effluent for recycling Results Target Concentration of emerging chemical constituents 11.0 NDMA < 150 ppt of concern in Plant No. 1 secondary effluent ,4-Dioxane < 10 ppb Meet GWRS specification requirements for Plant 1 secondary effluent NTU Thirty-day geometric mean of total coliform bacteria in effluent after initial dilution of 250: < 1,000 mpn Compliance with core industrial pretreatment requirements 100% 100% Meet secondary treatment standards BOD 12 mg/l CBOD 25 mg/l TSS 8.9 mg/l TSS 30 mg/l FY Level of Service OCSD will manage flows reliably Results Target Frequency of unplanned use of emergency one-mile 0 0 per year during (78-inch diameter) outfall dry weather less than once per 3 years in peak wet weather Sanitary sewer spills per 100 miles 0.23 < 2.1 Contain sanitary sewer spills within 5 hours 100% 100% FY Level of Service OCSD s effluent will be recycled Results Target Provide up to 104 mgd specification effluent 89 mgd 104 mgd to the Groundwater Replenishment System OCSD will implement a sustainable biosolids FY Level of Service management program Results Target National Biosolids Partnership Certification for 5 year recertification Maintain Biosolids Management Program July 2008 certification Biosolids recycled 0 tons to landfill 100 tons per day (New Target Level of Service through 2017) 100% recycled to landfill Respond to all biosolids contractor violations 100% 100% within a week of violation notice {5 year} strategic plan update november 2012 p. 16

22 Workplace Environment Goals OCSD provides an environment of partnership, growth, opportunity, responsibility and accountability. 1. Workforce Planning and Workforce Development (Updated) Design and implement comprehensive workforce planning and development activities to improve workforce capability, adaptability, efficiency, and accountability. Ongoing plan for preparing employees for the future., Abilities, Leaders, Abilities, L Building Skills & for Tomorrow Skill morrow BLAST is an internal program that is being developed by employees for employees with the ongoing support from management. BLAST continuously promotes and offers opportunities for lifelong learning in an effort to build OCSD s bench for future leadership positions. p. 17 {5 year} strategic plan update november 2012

23 Workplace Environment Levels of Service FY Level of Service OCSD will take care of its people Results Target Training hours per employee per year Employee injury incident rate accidents per 100 employees 4.3 Industry average 4.6 Meet mandatory OSHA training requirements 91% >95% Hours worked since last lost work day 140,000 1,000,000 Achieve annual agency target of days away from work, days of restricted work activity, or job transferred as a result of a work-related injury or illness {5 year} strategic plan update november 2012 p. 18

24 Appendix A: New Issue Papers In preparation for the October 17, 2012 Board of Director Strategic Planning Workshop to discuss the proposed goals for 2012, staff prepared five issue papers related to the new goals. The appendix includes issue papers on the following topics: Revisiting OCSD s 2006 Biosolids Recycling policy Chemical Sustainability Odor Control Update and Action Plan Workforce Planning and Workforce Development Business Continuity Planning p. 19 {5 year} strategic plan update november 2012

25 OCSD s Biosolids Recycling Policy Should OCSD revisit the 2006 Biosolids Recycling policy to reflect recent developments, experiences, and circumstances? Why is this issue important to the District? Since the 2006 OCSD Board Resolution (OCSD 06 10) supporting the Long Range Biosolids Management Plan (LRBMP) was adopted, OCSD implemented the diversity guidelines, managed our long-range contracts, changed our biosolids recycling level of service, and renewed our land application commitment as part of our diverse portfolio. The long-term strategy requires modifications since the EnerTech contract has ended and our biosolids volumes will drop significantly by 2017 when IRWD will be processing their own solids and new centrifuge dewatering facilities are operational. Goals Recognize historic milestones as key rationale for biosolids policy (e.g., grand jury report, county ordinances banning biosolids, etc.). Recognize importance of best management practices and contractor investment that build sustainability of OCSD s biosolids program. Reaffirm the continued importance of onsite research to reduce the volume of biosolids that require offsite management. Reaffirm our commitment to maintaining an environmental management system (EMS) for our biosolids program for which we were first certified by the National Biosolids Partnership in Remain committed to recycling our biosolids with a level of service (updated in 2011) of at least 88% of biosolids recycled (not more than 12% to landfill) through the solids peak in The Long-Range Plan also recommended the use and development of in-county biosolids options. Continue to adhere to the diversity goals recommended by the Long Range Plan: Not more than half of our biosolids to any market or contractor; Not more than one-third to any facility; Maintain fail-safe backup options for at least 100% of OCSD s biosolids production (current more than 1000%) Develop in-county production facilities and markets working with member agencies and local stakeholders. Once the Orange County Waste and Recycling landfill (Prima Deshecha) comes online (anticipated in January 2013), there will be a further increase in our biosolids program diversity and provide an in-county option. Move into energy, composting, and a few other specific markets using merchant facilities as recommended in the Long Range Plan (not risking any OCSD capital). These recommendations were implemented through the EnerTech Rialto and Synagro South Kern compost facilities. {5 year} strategic plan update november 2012 p. 20

26 Given the currently available high-quality, lower-cost biosolids management options, the sustainability of these options, and significant reduction in biosolids produced (one-third of current production) by 2017, OCSD staff believes that we can continue to meet our diversity criteria with the current contracts and without issuing a request for proposals in the near future. The Synagro South Kern Compost facility contract renewal will be the next significant biosolids contract decision point. The new contract with Tule Ranch allows OCSD to provide biosolids to prospective facilities to ensure they meet quality standards before committing to a contract with these facilities. OCSD s quality and sustainability standards include best management practices, truck cleanliness, onsite housekeeping, and compatibility with our biosolids and certified program requirements. More detailed information can be found online at Staff will propose amending the Synagro contract to match the new Tule Ranch contract language to be equally as flexible. Desired Outcome Update current Synagro contract to address inadequate not to exceeds value and to allow transportation and delivery of OCSD s biosolids to facilities for research or demonstration purposes to further diversify OCSD s biosolids management options. Update OCSD Board Resolution (OCSD 06-10) with considerations listed herein. Continue to balance biosolids among existing contractors in conformance with diversity goals set by 2003 Long-Range Biosolids Management Plan and to be incorporated into updated Board Resolution until at least 2016 when renewal of the Synagro contract will be considered. p. 21 {5 year} strategic plan update november 2012

27 Chemical Sustainability Should OCSD provide additional efforts to promote chemical sustainability? Why is this issue important to the District? The District treatment plants and collection system use several bulk chemicals. A sustainable supply is critical to maintaining an acceptable level of operations and for ensuring compliance with all regulatory requirements. The District spends about $16,500,000 annually on the procurement of eleven key chemicals. For certain chemicals failure in supply could result in violation of our permit or shut-down of key assets such as our Central Generation System engines. Therefore, maintaining a reliable supply at a fair market price is critical to the District s mission. Goals Contract with multiple vendors to provide OCSD chemicals in the quantities required. Reduce reliance on a particular chemical and establish flexibility to utilize other chemicals/ processes to accomplish the same operational objectives. Implement chemical optimization measures. Desired Outcome Ensure a reliable chemical supply Ensure that multiple vendor contracts are in place to supply the needed chemicals Seek options for competitive pricing for the chemicals {5 year} strategic plan update november 2012 p. 22

28 Odor Control Update and Action Plan Should OCSD defer the offsite odor level of service target dates in order to validate the scope, priority, and measurement approach for the odor control program? Why is this issue important to the District? Odors are inherent to wastewater and OCSD has a good neighbor policy to not be a nuisance to its neighbors. Controlling nuisance odor represents a significant operational and capital expense to OCSD. In 2007 the Levels of Service (LOS) for Odor Control were adopted by the Board as part of the Five-Year Strategic Plan. The District adopted a dilution to threshold (D/T) measurement system for a level of service goal. The standard was set for 14 D/T at Plant No. 1 by 2016 and 17 D/T at Plant No. 2 by This means that no odors leave the plant boundaries and affect surrounding communities. Staff believes that offsite odor impacts have been significantly reduced since the adoption of the 2007 LOS Standards. The District is continuing with its collection system chemical dosing program on four of eleven trunkines. This continuous dosing approach helps reduce corrosion and odors in the collection system and headworks odors of both treatment plants. Additionally, a significant number of projects have been completed, some including new odor control technologies. Projects completed since the 2007 LOS adoption that reduce offsite odor impacts include: Steve Anderson Lift Station at Plant No. 1 Trickling Filters at Plant No. 2 Headworks replacement at Plant No. 2 Solids Thickening and Processing Upgrades at Plant No. 2 Conversion of the Plant No. 1 Headworks Scrubbers from hydrogen peroxide to bleach. Conversion of the Plant No. 2 Primary Scrubbers from hydrogen peroxide to bleach. The following projects are in the design or construction phases that will further reduce offsite odor impacts: Sludge Thickening/Dewatering and Odor Control at Plant No. 1 Trunk Line Odor Control Improvements at Plant No. 1 Headworks. Sludge Dewatering and Odor Control at Plant No. 2 Much of the basis for the work originally planned while adopting the current odor control standard was based on engineering studies and assumed process performance for new or altered process technologies. Recent testing of a portion of the existing odor control systems shows their performance exceeding planning expectations. Thus, before moving ahead on new odor control projects designed to meet the current standard, further performance assessment of the other components of the newly-installed odor systems including the secondary treatment facilities at both Plants and the new Headworks at Plant 2 is appropriate to verify the performance of the existing odor systems versus the original assumptions. p. 23 {5 year} strategic plan update november 2012

29 Also, new odor measurement technologies have been developed since 2007, which may potentially provide a better odor-impact measurement than the current D/T based LOS standard. Staff is requesting additional time to conduct a performance assessment of the existing odor systems and potentially develop alternatives for the existing D/T based LOS standards. Goals The performance of completed odor control projects should be thoroughly evaluated to assess the actual performance versus original performance assumptions. (This will be done through an update of the Odor Control Master Plan Project SP1-166.) Future planned odor control projects involving the following Plant 1 processes Headworks, Trickling Filter and Primary Basins, and Plant 2 Primary Basins should be combined with Asset Management scopes of work to implement comprehensive refurbishment plans that limit offsite odor impacts on a priority basis. Reassess whether dilution to threshold is the most appropriate measurement system. This may include investigating odorant based measurement systems, or shifting the dilution to threshold system to the Engineering Design Guidelines for future comprehensive Asset Management based project designs, or develop a new level of service recommendation as part of the odor control Master Plan (SP-166). Assess retaining the odor complaint level of service measurement and reporting system, modifying our goal to achieve no offsite odor complaints during normal process operations. Desired Outcome The District remains committed to being a good neighbor and limiting offsite odor impacts in a comprehensive and cost effective manner. Completion of the Odor Control Master Plan is necessary to make sure the District s investment in current and if needed future process systems will produce the benefits intended. {5 year} strategic plan update november 2012 p. 24

30 Workforce Planning and Workforce Development Should OCSD design and implement comprehensive workforce planning and development activities to improve workforce capability, adaptability, efficiency, and accountability? Why is this issue important to the District? OCSD faces staffing challenges, including a changing workforce, leadership loss and difficulty finding replacement talent for some core jobs. From March 2010 through March 2012, 88 employees left OCSD, taking 1,898 years of knowledge and experience with them. OCSD has been preparing for these challenges since 2005, focusing on leadership development and technical skills training. However, these challenges continue. Over the next three-years, 50 percent of management personnel and 40 percent of staff members in core wastewater occupations are eligible to retire. Therefore, it is essential that OCSD continues to act on preparing for future staffing needs and ensuring access to qualified applicants while developing the existing workforce. The current budget outlines a commitment to effectively manage staffing resources to meet service level requirements at the lowest cost. Key elements associated with the commitment are authorized staffing levels and strength of the workforce. District-wide workforce planning and development activities will be designed to ensure the ongoing delivery of efficient and effective levels of service and to meet our mission. Workforce planning will reinforce authorized staffing levels while addressing future needs and changing work requirements. Workforce development will strengthen the workforce by preparing employees for future opportunities and focusing efforts on growth of technical skills to ensure staff is well-trained. It is important that workforce planning and workforce development be elevated to the level of an OCSD Strategic Plan Goal for the Board to emphasize to OCSD management that this is an issue requiring organization-wide attention and resource allocation. This Goal will continue to help OCSD get the right people with the right skills in the right positions at the right time. Goals Design and implement comprehensive workforce planning processes. Design and implement comprehensive workforce development plans. Increase the levels of workplace accountability. Desired Outcome Integrate workforce planning and workforce development efforts to improve workforce capability, adaptability, efficiency, and accountability. p. 25 {5 year} strategic plan update november 2012

31 Business Continuity Planning What level of a Business Continuity Plan should OCSD implement? Why is this issue important to the District? OCSD has a comprehensive Integrated Emergency Response Plan (IERP) which reflects our commitment to ensuring the safety and health of employees, the community we serve and the environment. In addition, the IERP was developed to ensure that we meet the legal and regulatory requirements to be prepared for and respond to man-made hazards, accidental disruptions, technology failures and natural disasters. Natural disasters include earthquake, flood, tornado, tsunami and other emergencies. The development of the Business Continuity Plan (BCP) will improve OCSD s ability to prepare for, respond to, remediate and effectively manage an incident in order to return to normal operations as soon as possible. The development of the BCP reflects OCSD s commitment to the integration of risk management principles into the District s culture. Goals The development of the BCP is to enhance OCSD s resilience and its ability to withstand an emergency or natural hazard without interruption of services to the community or, if the services are interrupted, to restore the services rapidly. The overall goals of the District are: Identify and protect potentially critical assets. Identify the critical functions of the District to determine which assets perform or support the critical functions. Identify response-capable staff for critical operation and maintenance positions that have staff backup. Determine line of succession for critical operations and maintenance positions. Establish emergency power for critical operations: establish a minimum benchmark of 72 hours for back-up power for critical operations and assets. Monitor critical parts and equipment: current longest lead time (e.g., hours or days) for repair, replacement, or recovery of operationally critical parts or equipment that may represent single points of failure. Documented procedures for protecting and maintaining critical IT and Supervisory Control and Data Acquisition (SCADA) systems. Documented procedures and protocols for testing and maintaining IT, SCADA and communication systems during emergency response and recovery. Establish an alternative recovery facility. Protection of critical records and databases. Review and update the IERP and Business Continuity Plan as necessary. Test the Business Continuity Plan regularly. Desired Outcome Develop a Business Continuity Plan (BCP) that will define how OCSD will continue its everyday business functions in a not-so-everyday environment. This includes potential financial effects of a crisis as well as having the flexibility to adapt human resource policies to meet the changing needs of employees during an event, how to get back into somewhat normal operations, how to keep and pay employees and how to continue to provide effective wastewater treatment for our 2.5 million customers. {5 year} strategic plan update november 2012 p. 26

32 Appendix B: Previous Issue Papers Due to the complex nature of many of the challenges that went into the preparation of this Strategic Plan, a series of issue papers were created to assist in better understanding the issues facing the Orange County Sanitation District. Included in this appendix are past year position papers on the following subjects: 2011 Issue Papers Revisiting OCSD s 95 Percent Recycling Level of Service for Biosolids Management Full-cost recovery: Urban Runoff Diversion Program Evaluation of Natural Community Decline Around Ocean Outfall Leadership of the Future Updating the Sewer Service Fee Five-Year Rate Plan 2010 Issue Paper Full-Cost Recovery: Urban Runoff Diversion Program 2009 Issue Papers Providing Ongoing Leadership Development Assessing and Mitigating the Risks of Chemical Supply Shortages Full-Cost Recovery: External Agreements 2008 Issue Papers Groundwater Replenishment System Disinfection of Final Effluent Environmental Footprint Initiative Updating OCSD s Risk Register Human Resources Strategic Plan 2007 Issue Papers Biosolids Management Groundwater Replenishment System Air Quality Odor Control Proposition 218 Notification p. 27 {5 year} strategic plan update november 2012

33 Revisiting OCSD s 95 Percent Recycling Level of Service for Biosolids Management November 2011 Should OCSD consider landfill options for biosolids? Why is this issue important to the District? OCSD s Board Resolution (OCSD 06-10) supports biosolids reuse and encourages its member agencies to use OCSD compost. This policy is implemented through a 95 percent recycling Level of Service goal. OCSD s solids are increasing from a historic average of 650 tons per day to a peak of about 800 tons per day until dewatering centrifuges are installed at both plants and the Irvine Ranch Water District manages its own solids. These projects are all scheduled for completion by The use of in-county landfills for OCSD s biosolids could potentially reduce the costs of managing solids during this interim period. Goals Use landfills as a biosolids management option during the interim peak production period when there is a clear advantage to OCSD to do so. Clear advantages include: costs, problems with existing contractors, weather, and other management challenges. Change short term diversion goals to allow greater amounts of biosolids going to the landfill during the interim period. Continue to investigate and evaluate the use of landfills as a biosolids management option and at the same time consider the triple bottom line (environmental, financial, and societal), State of California s recycling policies, greenhouse gas emissions, and our recent survey of stakeholders to prioritize biosolids management. Recognize that there is an interest by the County of Orange to work with OCSD to utilize local landfills as a potential biosolids management option. Continue dialogue with the County of Orange and local agencies to build relationships and partnerships for local landfill options. Utilize landfills that use biogas recovery and energy production. Desired Outcome Allow the use of landfills as a biosolids management option during the interim peak production period. Develop a biosolids management strategy that benefits both OCSD and local county landfills. Continue recycling biosolids and utilizing them for their nutrients, carbon sequestration, and energy values. Maintain a diversity of biosolids options. Maintain operational flexibility. Maintain fail-safe biosolids management options and capacity, including local options. {5 year} strategic plan update november 2012 p. 28

34 Full-Cost Recovery: Urban Runoff Diversion Program November 2011 Should OCSD charge the County of Orange the cost of providing urban runoff treatment or continue to absorb the costs within our budget? Why is this issue important to the District? In September 2000, the Board of Directors adopted a dry weather urban runoff policy to assist in remediation of the public health and environmental problems associated with urban runoff. The original resolution and its subsequent amendment, (Resolution No ), initially waived all fees and charges associated with the urban runoff discharges for flows below 4 million gallons per day (MGD). During the past 11 years, the District has treated a total of 5.8 billion gallons of urban runoff from the city of Huntington Beach, Orange County Public Works, city of Newport Beach, Irvine Ranch Water District, and The Irvine Company. The District s urban runoff treatment cost for was $976,593 based upon a reported discharge flow of 538 million gallons. These treatment costs are projected to increase steadily. While the program has been successful in reducing beach contamination, OCSD continues to provide benefits to agencies without capturing the cost of delivering this service, while our costs increase as we move to full secondary treatment in The Board of Directors directed staff to review this matter during its discussion of the 2010 strategic plan update and to return with a recommendation for this year s strategic plan update. Because of the current economic environment, OCSD must review this program and ensure that our agreements provide full cost recovery for the treatment of urban runoff from participating agencies and cities. Goals Meet with participating agencies and cities to explain the issues and costs associated with the current Urban Runoff Diversion Program. Amend the District s Fee Ordinance to include Urban Runoff User charges to the appropriate agency or agencies. Recover the cost of providing the service from the agencies currently receiving the benefit. Desired Outcome Charge the County of Orange, the NPDES permit holder of the Municipal Separate Storm Sewer Systems (MS4s), for Urban Runoff costs starting July 1, 2013 when the new rate structure is in place. p. 29 {5 year} strategic plan update november 2012

35 Evaluation of Natural Community Decline Around Ocean Outfall November 2011 Should OCSD reconsider its use of chlorine disinfection? Why is this issue important to the District? The Clean Water Act requires the District to protect the natural communities that live around the ocean outfall pipe. Communities of small animals that live in the sediments in the vicinity of the outfall pipe began changing in 2005, and showed significant degradation by Changes in small animal populations have been seen up to one-half mile beyond the pipe. The District is at risk of being noncompliant with its ocean discharge permit requirements unless this trend is reversed. Ocean monitoring data shows this trend is not caused by usual sewage contaminants and is not the result of natural changes occurring in the ocean environment. There are no discernible changes over time in animal populations at clean reference areas, nor are other treatment plants (POTWs) experiencing similar occurrences, including those POTWs that disinfect their effluent. There appears to be a strong correlation between these changes and the District s use of chlorine as a disinfectant. Total chlorine use and daily maximum chlorine residual concentrations correlate to the changes we are seeing in the communities of small animals. The use of chlorine as an anti-fouling agent for the Groundwater Replenishment System s (GWRS) reverse osmosis membrane filters may also be a contributing factor. There is also a correlation with decreased final effluent flows discharged out the ocean outfall as a result of water going to GWRS. If chlorine byproducts, and their interactions with the more concentrated solids during periods of low flow are determined to be significant causes of these changes, staff would recommend discontinuing effluent disinfection to eventually reverse these adverse effects in the ocean around our outfall. Such a recommendation would be controversial because some interest groups believe disinfection prevents beach water contamination, despite evidence to the contrary. Goals Determine if chlorine is the cause of the decline and changes in animal communities near the outfall. Develop and implement mitigation strategies to reverse the decline. Communicate results to regulators and stakeholders and seek approval to cease chlorine disinfection if shown to be the cause. Desired Outcomes Definitive identification of the source(s) of the decline and changes. Successful mitigation of the cause(s). Return affected area to reference conditions. {5 year} strategic plan update november 2012 p. 30

36 Leadership of the Future November 2011 Should OCSD continue devoting resources toward leadership development programs to meet future challenges of employee attrition? Why is this issue important to the District? During the past year, we have experienced increasing numbers of employees retiring, resulting in a rapid loss of institutional knowledge. We expect this trend to continue. Currently, fifty-six percent of all managers and supervisors are eligible to retire. Five year projections indicate that the retirement eligibility trend will continue. The Board has indicated that future leadership is important to maintaining service levels and ensuring our continued success. Building a bench of leaders is an important initiative that helps meet this challenge of staff attrition. The retirement impact coincides with plans to reduce the overall number of OCSD management positions; a direction given by the Board to maintain our financial strength and sustainability. While these events are complementary, they emphasize the importance of developing a pool of individuals who possess skillful and competent abilities to be eligible to compete for future leadership positions. Leadership development efforts can also aid in retaining talent. Goals Apply Workforce Planning Assessments to advanced development efforts. Strengthen staffing processes. Improve talent management programs. Increase accessibility of leadership development programs. Support initiatives that provide the essential skills needed to develop successful leaders. Ensure programs reinforce core values, promote fairness and equity, and are inclusive and open to all. Partner with other organizations to share resources aimed at leadership development. Desired Outcome Enhance and accelerate the development of diverse, dedicated, and talented employees ready to lead OCSD into the future. p. 31 {5 year} strategic plan update november 2012

37 Updating the Sewer Service Fee Five-Year Rate Plan November 2011 Should OCSD develop a new five-year rate plan in 2013? Why is this issue important to the District? Long-term financial planning is critical to meeting the objectives of the District s long-term strategic plan. In February 2008, the Board approved a five-year rate plan to meet the objectives of the five-year strategic plan including the design and construction of full secondary treatment facilities by December 2012 as mandated by the U. S. Court Consent Decree. This rate plan is set to expire June 30, As a result, the District will need to establish a new rate plan. The benefits of implementing a five-year rate plan include the assurance that funding will be available to support the initiatives contained within the five-year strategic plan. It also provides our rate payers the ability to plan for future business expenses and personal finances. Approving a five-year rate plan for sewer service fees is fiscally advisable considering the preparation and cost of annual public notices to our 550,000 rate payers. Lastly, it provides sustainability of wastewater collection and treatment services into the future. Goals Identify key stakeholders impacted by sewer service fee rates and develop an outreach strategy. Prepare an updated sewer service fee rate study for the regional and local areas served. Utilizing the sewer service fee rate study, update the 10-year forecast. Prepare a Proposition 218 Notice which includes sewer service fee rates for the next five years. Present the proposed five-year sewer service fee rate schedule to the Board for approval. Desired Outcome The establishment of a new five-year sewer service fee rate schedule that balances users fees, service levels and the use of debt to ensure the sustainability of the Orange County Sanitation District. {5 year} strategic plan update november 2012 p. 32

38 Full-Cost Recovery: Urban Runoff Diversion Program November 2010 Why is this issue important to the District? Dry weather urban runoff is contaminated water that is generated from day-to-day activities such as overirrigating lawns, washing cars and hosing down driveways. This untreated, bacteria-laden water flows into storm drains and eventually makes its way to the Pacific Ocean. A 1999 Huntington Beach closure investigation found this runoff may have caused or contributed to shoreline contamination and high bacteria levels. As part of a regional best management practice, OCSD agreed to reroute the dry weather urban runoff from storm water pump stations and storm channels located in the cities of Huntington Beach and Newport Beach into OCSD s sewer system for treatment. The Urban Runoff Program began in December 1999 and was formalized in September 2001 with a Board-approved resolution that allowed up to 10 million gallons per day of runoff into the District s system and waived any fees associated with the approved discharge of urban runoff into OCSD s sewer system if the total volume of all dry weather urban runoff discharges does not exceed four million gallons a day. This threshold was established to accommodate the expected volume of runoff from coastal cities that were experiencing beach contamination problems. While the program has been successful in reducing beach contamination, OCSD continues to provide benefits to agencies without fully capturing the cost of delivering this service. As the district moves to full secondary treatment in 2012, the cost of providing this service will increase. And, in light of the current economic environment and requirements of Proposition 218, OCSD must review this program and ensure that our agreements provide full cost recovery from participating agencies. Goals Meet with all affected parties to understand the issues and costs associated with the Urban Runoff Diversion Program. Conduct a comprehensive review of the Urban Runoff Program to delineate the costs and benefits of moving to a full cost recovery business model. Negotiate new agreements that ensure all agencies are paying a fair share for services provided by the District. Desired Outcome Finalize agreements that are comprehensive and agreeable to all agencies and ensure a fair share recovery of costs for District services. p. 33 {5 year} strategic plan update november 2012