ORANGE COUNTY SANITATION DISTRICT A SENSE OF PURPOSE. Annual Report

Transcription

1 ORANGE COUNTY SANITATION DISTRICT A SENSE OF PURPOSE Annual Report

2 A MESSAGE FROM THE GENERAL MANAGER As the Orange County Sanitation District (OCSD) approaches its 65th year of operation, we have had the opportunity to reflect on the most pressing issues facing public utilities today and how OCSD must adapt to serve our public more effectively, more transparently, and be more engaging. It is a great privilege and responsibility to manage the $10 billion wastewater infrastructure system that is in use every day to protect the public health and environment here in Orange County. This year our Annual Report focuses on our agency s Sense of Purpose and our dedication to providing our communities a high level of reliable, and costeffective service. Under the leadership of our Board of Directors, and efforts of our staff, OCSD stayed the course in We upheld our Sense of Purpose. We managed the collection, treatment and recycling of 185 million gallons of wastewater every day. We accomplished this while addressing rising treatment and chemical costs, aging infrastructure, and increased regulatory requirements with a minimal rate increase, averaging 1.2 percent per year over the next five years. We were successful in replacing and rehabilitating over $123 million in regional wastewater infrastructure. We had zero sewer spills, and significantly reduced the number of odor complaints, while operating a complex wastewater treatment process in full compliance with our ocean discharge permit. In fact, this was our fifth consecutive year with no ocean discharge permit violations, earning OCSD the Platinum Peak Performance Award from the National Association of Clean Water Agencies a first for our agency. All of this was accomplished while recovering enough energy from our treatment process to power more than 60 percent of our plant operations, and recycle 100 percent of our biosolids. With our partner, the Orange County Water District we set the Guinness World Records for the most recycled water production in a 24-hour period - over 100 million gallons. Without a Sense of Purpose, no organization can achieve its full potential. We at OCSD have our purpose, and that is to protect public health and the environment and serve our community. Sincerely, James D. Herberg General Manager 2 ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

3 BOARD OF DIRECTORS Cities Director 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 Denise Barnes Glenn Parker Fred Smith Mariellen Yarc Steve Nagel Gregory C. Sebourn (Chair) Steve Jones Erik Peterson Donald P. Wagner Tim Shaw Peter Kim Richard Murphy Scott Peotter Teresa Smith Chad Wanke Sal Tinajero Ellery Deaton David Shawver (Vice Chair) Allan Bernstein Robert Collacott Sanitary Districts Costa Mesa Sanitary District James Ferryman Midway City Sanitary District Charlie Nguyen Water Districts Irvine Ranch Water District John Withers Yorba Linda Water District Phil Hawkins County Areas Member of the Board of Supervisors Michelle Steel EXECUTIVE MANAGEMENT TEAM James D. Herberg General Manager Edward Torres Director of Operations and Maintenance Robert Thompson Assistant General Manager/Director of Engineering Lorenzo Tyner Assistant General Manager/Director of Finance and Administrative Services Celia Chandler Director of Human Resources Bradley R. Hogin Legal Counsel (Woodruff, Spradlin and Smart) James Colston Director of Environmental Services ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

4 OUR MISSION To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. OUR VISION Ocean Outfall at Plant No. 2 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. 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. 4 ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

5 WHO WE ARE The Orange County Sanitation District (OCSD) is a special district governed by a 25-member Board of Directors comprised of 20 cities, four special districts, and one representative from the Orange County Board of Supervisors. OCSD provides wastewater collection, treatment, and recycling for approximately 2.6 million people living within a 479-square-mile area of central and northwestern Orange County. Our facilities include 396 miles of sewer pipes and 15 pump stations, located throughout the county. Each day we treat approximately 185 million gallons of wastewater from residential, commercial, and industrial sources that is sent to our two treatment plants: Plant No. 1 in Fountain Valley and Plant No. 2 in Huntington Beach. Located in the third most densely populated county in the state, OCSD has operated since 1954 and is the third largest wastewater agency west of the Mississippi River. Top of Digester at Plant No. 2 ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

6 LEADING THE WAY OCSD s laboratory has always been accredited by the state, but now we are the FIRST municipal laboratory in California to be nationally accredited. In 2014, the State of California began the process of revising its laboratory accreditation standards. In 2018, new standards went to the State Water Resources Control Board and are based on the National Environmental Laboratory Accreditation Program (TNI) standards. NELAP NELAP ACCREDITED TNI is the standard in 13 other states, with four additional states currently in the process of adopting these standards. With the California accreditation standards in transition, OCSD s laboratory began transitioning to the TNI standards as our model for laboratory operations. OCSD is the first public agency to receive TNI accreditation out of the 631 accredited laboratories in the State of California. TNI ACCREDITATION BODY LABORATORY 6 ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

7 BEACH WATER QUALITY REPORT CARD ORANGE COUNTY BEACHES RATED HIGH Report cards aren t just for students. According to the Heal the Bay Beach Report Card, beaches in OCSD s service area running from Seal Beach to Crystal Cove were rated the highest across Southern California. All of these coastal beaches rated A+ or A during both the summer and winter (dry) seasons. Photo by: Bob Bell, OCSD employee Lower rated beaches in other areas are predominantly influenced by land-based runoff. OCSD has continued with its commitment to collect and treat up to 10 million gallons per day of dry weather urban runoff to help protect local beaches from contamination. These results demonstrate the effectiveness of OCSD s Urban Runoff Program in protecting our beaches. ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

8 PROTECTING OCEAN WATERS NEAR AND FAR: 2018 BIGHT STUDY This past summer, OCSD s laboratory and ocean monitoring staff along with about 70 other organizations, including Los Angeles County Sanitation Districts, City of Los Angeles, and the City of San Diego participated in the Bight 18 Regional Ocean Monitoring Study. A bight is defined as a bend in the coastline, and the Southern California Bight is 400 miles of recessed coastline from Point Conception, in Santa Barbara County to Cabo Colnett, just south of Ensenada, Mexico. This will be the sixth such Bight study conducted since The study is designed to assess the overall condition of the coastal ocean in the Southern California Bight. The results will allow OCSD to compare ocean conditions in our monitoring area to other areas in Southern California. Photo by: Bob Bell, OCSD employee 8 ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

9 Central Generation System Engines AIR QUALITY ANNUAL EMISSIONS REPORT SHOWS SIGNIFICANT REDUCTIONS Protecting public health and the environment aren t just words to us. As an agency under the jurisdiction of the South Coast Air Quality Management District, we must comply with many rules and regulations including an annual Emissions Report, which showed significant reductions in our emissions in The reductions can be attributed in part to the installation of post combustion catalysts on OCSD s eight Central Generation System engines. Emissions were reduced by as much as 90 percent for some pollutants. The new emission control system also allows OCSD to use natural gas to run extra engines during peak demand periods, thus saving money for our rate payers. This system was used to set state regulations for other municipalities. ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

10 Planning for today Planning for tomorrow 10 ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

11 OCSD IS READY AND PREPARED As part of our advanced planning efforts, an agency-wide Continuity of Operations Plan was developed. The plan identifies the most critical business and operational functions that ensures OCSD can resume operations following a major disaster or emergency. Additionally, as part of our annual review process to test our staff and emergency equipment, we held our first complete plant-wide power outage drill this past spring. The drills were conducted at both our plants in Fountain Valley and Huntington Beach. During these drills, standby generators supplied power to maintain plant flow and compliance standards. The drill proved successful and provided much needed data to help staff prepare in the event of an actual emergency. Like the adage says: Practice Makes Perfect, and so we will take what we learned from this drill to ensure that in the event of an actual emergency, we will be prepared to provide essential services to our community. OCSD is ready and prepared. Odor Control Complex at Plant No. 1 ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

12 FACILITIES MASTER PLAN Planning for the future comes in many shapes and sizes and that is true for OCSD. In December, the OCSD Board of Directors unanimously adopted the Facilities Master Plan which provides a 20-year roadmap setting forth OCSD s long term Capital Improvement Program. The world of technology is always evolving and each year comes with new and developing innovations; this most definitely applies to OCSD and the world of wastewater treatment. The plan provides a framework for the evolution of sustainable wastewater collection, treatment and resource recovery facilities. Additionally, this roadmap guides the infrastructure improvements needed at plant facilities, 15 pump stations, and 396 miles of regional sewers. Understanding the condition and capacity of the existing facilities, new technology opportunities, anticipated regulatory changes, and resource recovery options will help guide OCSD for the next 20 years. Sludge Digester Rehabilitation Project at Plant No ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

13 BUILDING FOR THE FUTURE A wastewater facility provides an essential service to our community and we work each and every day to ensure that our Capital Improvement Program is continually improving and providing innovative solutions to the resource recovery process. Some of the highlights from the past year include: Red Hill Avenue Sewer Project: Regional sewer construction in the cities of Irvine, Santa Ana, and Tustin on Red Hill Avenue is complete. The project rehabilitated and improved the capacity of the Gisler-Red Hill Sewer System constructed in the early 1960 s and 1970 s. Newhope Placentia Project: Split into two phases (A and B), this project replaces seven miles of sewer on State College Blvd. from Yorba Linda Blvd. in Fullerton to Orangewood Ave. in Anaheim. Phase A of the project installed over 2.5 miles of sewer pipeline. Sludge Digester Rehabilitation Project: Upgraded twelve digesters in phases to maintain plant operations at Plant No. 1 in Fountain Valley. The digesters were cleaned, grit was removed, and equipment such as pumps, grinders, heat exchangers, and piping were replaced. The Newport Boulevard Sewer Project: Replaced an existing 60-year old sewer pipeline with a larger line to increase the sewer flow capacity and reduce the risk of spills. This project is scheduled to be complete by winter Newport Boulevard Sewer Project ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

14 THE CAPITAL IMPROVEMENT PROGRAM BUDGET FISCAL YEAR Fiscal Year Expenditures Plant No. 2 $42 M 34% $123 million Collection System $19 M 15% Plant No. 1 $20 M 17% Joint Facilities $42 M 34% 14 ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

15 HEADQUARTERS COMPLEX As part of our ongoing efforts to streamline the work we do and increase efficiencies, we have purchased approximately 7.5 acres across the street from our wastewater treatment facility in Fountain Valley. The buildings on those properties will be demolished to make room for a headquarters building that will house the staff that are currently located in various buildings and trailers spread out on the existing 100-acre wastewater treatment facility. Adding a headquarters complex will provide needed space for future wastewater treatment infrastructure and one centralized location for our administrative functions. Preliminary Concept Rendering of New Headquarters Complex ENERGY SELF SUFFICIENCY As regional partners helping meet the state s new regulation of reducing organic material entering landfills by 75 percent by 2025, OCSD issued a request for proposal for the design of the Interim Food Waste Receiving Facility in May A design firm was selected in August The team will design an interim station to receive, store, and feed preprocessed food waste slurry to the digester complex at Plant No. 2 in Huntington Beach to generate additional methane gas for on-site power production. This project helps OCSD move towards its goal of becoming 100 percent energy self sufficient. Digesters at Plant No. 2 ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

16 EXPANDING AND GROWING The definition of collaboration is: the action of working with someone to produce or create something, and that is exactly what OCSD and the Orange County Water District have accomplished with the Groundwater Replenishment System (GWRS). During the fiscal year, the GWRS produced 105,000 acre-feet or 34 billion gallons of ultra-pure water, which is the largest quantity of purified water that the GWRS has ever produced in a year since the project came online in 2008! 10 Year Milestones: January 2018 GWRS turned 10 years old. In celebration of this milestone, staff from both agencies took bottled GWRS water on the road letting community members taste the ultrapure water. Nearly 16,000 commemorative bottles were distributed. A highlight of the event was the setting of the Guinness World Records title for the most wastewater recycled to drinking water in 24 hours. The final official number for the 24 hour period was registered at 100,008,000 million gallons of ultra-pure recycled water. The year-long tour ended with a Winter Fest community celebration complete with a winter wonderland playground, snow slides, music, GWRS tours and food. Snow Slide at Winter Fest Celebration Expansion: Headworks Modifications: Completed evaluations of influent pumping system and diversion pipe layouts and finalized alternative plans that will separate the Plant No. 2 in Huntington Beach headworks for non-reclaimable and reclaimable treatment systems in support of GWRS final expansion. Ocean Outfall System Rehabilitation: Finalized design for pump station and plant water pump station. Project to bid in ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

17 SECURING A RELIABLE SOURCE OF WATER FOR ORANGE COUNTY OCSD was awarded $1.325 million from the United States Bureau of Reclamation Title XVI under the Water Infrastructure Improvements for the Nation Act. OCSD has been selected to receive the funding for the expansion of the Groundwater Replenishment System (GWRS), a joint effort with the Orange County Water District. The GWRS was one of 38 projects to qualify for funding through a competitive process. The project will implement necessary OCSD facility improvements to provide an adequate supply of highly treated wastewater needed for the operation of the GWRS Final Expansion. The expansion will bring an additional 30 million gallons a day (MGD) of water to the region; enough water for more than 250,000 people annually. This would bring the total water production to 130 MGD, enough water for over one million people. Additionally, the U. S. Environmental Protection Agency Potable Reuse Compendium recognized the GWRS as an example and highlighted the role of source control as a fundamental element of potable reuse. The compendium outlines key science, technical, and policy considerations regarding the practice of water reuse. ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

18 OUR EMPLOYEES 636 AUTHORIZED FULL-TIME EMPLOYEES DIVERSITY 75.5% MALE 24.3% FEMALE AVERAGE AGE 46.8 AVERAGE YEARS OF SERVICE NUMBER OF RETIREMENTS EQUALS 522 YEARS OF SERVICE EDUCATION LEVEL BACHELOR S DEGREE OR HIGHER 346 EMPLOYEES 58.05% OF THE ORGANIZATION MASTER S DEGREE OR HIGHER % OF THE EMPLOYEES ORGANIZATION 2.22% TURNOVER RATE 58 NEW HIRES 168 EMPLOYEES HOLD POSITIONS THAT REQUIRE A STATE LICENSE OR CERTIFICATION 18 ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

19 BLAST FACTS Leaders, L Building Abilities, Skills for & Tomorrow Skill, Abilities, morrow Building Leaders, Abilities, & Skills for Tomorrow (BLAST) is an employee designed leadership development program. BLAST was created as an innovative tool to ensure OCSD is adapting to the challenges of retaining and growing leadership talent by providing training opportunities to staff. The program focuses on building and strengthening people skills and promoting productivity to develop successful leaders at all levels of the organization. Programs offered through BLAST reached 65 percent of staff. The Job Shadowing Program received 31 new applications bringing the grand total of applications since the inception of the program to employees were paired with mentors. Raising the total to 70 employees paired with mentors. 6 employees completed the California State University, Fullerton Leadership Development Program bringing the total number of OCSD graduates to 33 with 12 of them now in leadership roles. BLAST completed 11 sessions of onboarding modules providing 46 employees opportunities to learn more about OCSD. IDEA For the past 38 years, the employee based Incentives for District Employee Achievement (IDEA) program has provided a way for employees to submit their innovative ideas that enhance or improve procedures, working conditions, and methods. This year, the IDEA Committee received 29 submissions and awarded 12 prizes for projects having merit and creating cost savings of over $2 million. OCSD s return on investment for the IDEA program this year, based on approved IDEAs, was $3.39 for every $1 spent. ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

20 FINANCIAL PLANNING In June, the Board of Directors adopted the budget. This two year budget includes operational, capital, and debt service expenditures necessary to effectively support our mission and execute our Strategic Plan. The budget also reflects our commitment to efficiency, while continuing to provide outstanding wastewater treatment, recycling, infrastructure maintenance, and ocean monitoring. OCSD s financial practices and strong reserves have earned the agency AAA bond ratings, the highest possible rating assigned by credit rating agencies. Providing a reliable service also includes prudent financial management. Many government agencies are faced with growing long-term liabilities, particularly in the area of employee pensions. We are a member of the Orange County Retirement System (OCERS). Four years ago, OCSD had an Unfunded Actuarial Accrued Liability (UAAL) of close to $200 million. We have been aggressive in reducing our liability and as of today, have a fully funded pension, saving tens of millions of dollars in premium payments. WHERE THE MONEY COMES FROM Interest $6.5M / 1.4% Intradistrict Transfers $3.7M / 0.8% Other $10.8M / 2.2% Property Taxes $99.6M / 21.2% Fees & Charges $350.3M / 74.4% WHERE THE MONEY GOES Intradistrict Transfers $3.7M / 0.9% Debt Service $80.5M / 19.1% Operating Expenses $163.6M / 38.7% Capital Improvement Program $174.5M / 41.3% 20 ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

21 PREPARING FOR THE FUTURE Keeping our rates low while providing quality service is a top priority. The Board of Directors approved a user fee increase of 1.2 percent per year for the next five years, which is less than the anticipated rate of inflation. The increase will help fund the inspection, repair, operation, maintenance, debt service and reserves needed to support OCSD s regional collection and treatment system. OCSD s sewer service fees remain among the lowest in California for wastewater treatment facilities. At the end of the proposed rate program in 2023, OCSD s rates are expected to remain below the projected statewide average. Annual Single Family Residential User Rate Current Rate Structure beginning July 1, 2018 through June 30, $331 $335 $339 $343 $347 $351 LEADING BY EXAMPLE Every day, we strive to be transparent and open in all that we do. For the 25th consecutive year, OCSD has earned the Certificate of Achievement for Excellence in Financial Reporting. This award is a representation of the dedication of the OCSD staff in preparing comprehensive annual financial reports. ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

22 COMMUNITY OUTREACH 27 COMMUNITY EVENTS 24 SPEAKING ENGAGEMENTS 183 TOURS 2,343 SEWER SCIENCE STUDENTS REACHING OVER 27,000 PEOPLE 581 SOCIAL MEDIA POSTS REACHING OVER 51,600 PEOPLE PUBLISHED 10 NEWS RELEASES WITH OVER 30 ARTICLES MENTIONING OCSD 49 WEBSITE POSTS LEGISLATIVE AFFAIRS 98 BILLS TRACKED & ANALYZED TOOK 10 POSITIONS 1 GRANT AWARDED TOTALING $1.325 MILLION 22 ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

23 OCSD S GREEN FLEET IS GROWING Here at OCSD we operate a fleet of approximately 200 vehicles, of which 10 percent are green fuel vehicles and this number is growing. During the fiscal year, we added eight new green fuel vehicles including electric, hybrid and compressed natural gas. As part of our practice of looking ahead, our Fleet Services is working with a fleet business expert to review fleet size, composition, green vehicle use, and our business practices. ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

24 HIGHLIGHTS FROM THE YEAR ZERO sewer spills 11 odor complaints significantly lower than the number that has come in historically 7 digesters cleaned historically only 1-2 cleaned per year 107 miles of sewers cleaned and inspected Completed power outage exercises at both plants 25,000 maintenance work orders completed Created an oversight program to implement the new federal dental amalgam rule Estimated Electricity Generated: Plant No ,121,508 kwh Plant No ,677,613 kwh TOTAL...93,799,121 kwh Estimated Average Daily Influent: Plant No MGD Plant No MGD TOTAL MGD Biosolids Tons per day (avg) : 778 Annual offsite biosolids management average cost: $ per ton Trucks per day (avg): ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

25 LOOKING FORWARD TO 2019 OCSD will celebrate its 65th anniversary. Development of the Five-Year Strategic Plan for The solids handling and disposal system at Plant No. 1 in Fountain Valley is being replaced with a new thickening and dewatering facility that once fully operational, will result in cost savings of nearly $4 million per year. OCSD is currently in the planning stages for the largest single energy storage system ever to be installed at a public wastewater agency. This project will allow OCSD to store energy, making it available when demand for power from the grid is at peak levels and the cost for electricity is higher. Secondary Clarifier at Plant No. 1 ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

26 AWARDS For the first time EVER, the National Association of Clean Water Agencies awarded OCSD the Platinum Award for achieving 100 percent water discharge permit compliance over a consecutive five-year period. Silver Award of Distinction Annual Report, Communicator Award Silver Award of Distinction CIP Annual Report, Communicator Award Silver Award of Distinction The Flushable 3, Communicator Award Environmental Communications Award OCSD s and OCWD s GWRS Bottled Water Campaign, 2018, American Academy of Environmental Engineers and Scientists Distinguished Budget Presentation Award 2018, Government Finance Officers Association District Transparency Certificate of Excellence , Special District Leadership Foundation Plant Operator of the Year Larry Andresen, 2018, Santa Ana River Basin Section of the California Water Environment Association Pretreatment, Pollution Prevention and Stormwater Person of the Year Jonathon Powell, 2018, Santa Ana River Basin Section of the California Water Environment Association Quarter Century Recognition Michelle Hetherington, 2018, Santa Ana River Basin Section of the California Water Environment Association Quarter Century Recognition Vicki Francis, 2018, Santa Ana River Basin Section of the California Water Environment Association Quarter Century Recognition Sharon Yin, 2018, Santa Ana River Basin Section of the California Water Environment Association National Environmental Achievement Award, Urban Runoff Program, 2018 National Association of Clean Water Agencies Honorable Mention Urban Runoff Program 2017, Orange County Business Council s Turning Red Tape Into Red Carpet Honorable Mention OCSD s and OCWD s GWRS Bottled Water Campaign 2018, Ragan s PR Daily in Press Event or Media Tour Category Platinum Hermes Award OCSD s and OCWD s GWRS Bottled Water Campaign 2018, Association of Marketing and Communication Professionals 26 ORANGE COUNTY SANITATION DISTRICT ANNUAL REPORT /

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28 Reclamation Plant No. 1 (Administration Offices) Ellis Avenue, Fountain Valley, California Treatment Plant No Brookhurst Street, Huntington Beach, California Phone: Follow us on: 10/2018