2012 Annual Report

Full Secondary Treatment2 0 0 2 – 2 0 1 2

Promise Kept.

Since our first NPDES permit was issued in 1981, the Sanitation District operated under a special provision of the Clean Water Act allowing us to treat wastewater at a level less than full secondary treatment. That night, the Board of Directors courageously committed to moving to 100 percent secondary treatment. The decision would ultimately cost hundreds of millions of dollars and take 10 years to complete.

Today, we stand at the precipice of our remarkable achievement. December 31, 2012 signals the formal end to our job. Ten years later, our work is complete, on time and on budget.

We kept our promise. It is constructed and in full operation—producing clean secondary effluent to protect the ocean environment and to provide increased flows for recycling to enhance our water supplies.

I especially wish to thank our Board of Directors for their vision and support planning and implementing the Capital Improvement Program and all those directors that offered their support and guidance since the vote in 2002.

This year also signals the end to my tenure at the Orange County Sanitation District. I am extremely proud of the work accomplished these past seven years. And I look forward with anticipation to watching the Sanitation District continue to build on our success.

James D. RuthGeneral Manager

promise kept.

On July 17, 2002, the Orange County Sanitation District Board of Directors voted to change course

{ }2012-2013 annual report | p.1

commitment strong.

p.2 | 2012-2013 annual report

In the fall of 2002, a core group of 34 Orange County Sanitation District employees laid out and signed a Capital Improvement Program Charter. With those signatures, we began the process of defining, developing, and meeting our goals.

Central to that process was the development of our Guiding Principles. They included sharing all that we learned honestly and respectfully, and in an understandable and clear manner—total transparency. We would hold each other and ourselves accountable, be open to new ideas, and apply lessons learned. Those tenets were essential to our success, without them, we would not be where we are today.

Over the years, our passionate employees, and committed board members worked diligently to keep our promise to you the ratepayer.

2012-2013 annual report | p.3

passion stronger.

Ichallenge met.

n order to meet the compliance regulations of the 2002 Federal Consent Decree, we needed to complete four massive construction projects by December 31, 2012.

The trickling filter and clarifier project constructed two new trickling filters and two clarifiers. Also included was the construction of a new power building and two effluent lines. One line ran to the Groundwater Replenishment inlet structure and the other in the 66-inch interplant line.

Each clarifier holds approximately 3 million gallons of water and 12 million square feet of media surface area (enough to cover Plant No. 1 three times.) The structures supported by 1,902 precast concrete pilings weighing 6 tons each, if laid end-to-end would span 12 miles. The amount of dirt excavated would fill a football field 11 ft. high.

Design: Black & VeatchContractor: J.R. Filanc Construction CompanyConstruction budget: $39,145,000 (under budget)Construction cost: $35,185,946 Construction duration: 1803 daysConsent Decree: 29 days ahead of scheduleAwards: CMAA Southern California Chapter, Project of the Year, 2007

P1-76 Trickling Filter Rehabilitation and New Clarifiers29 days ahead of schedule

{ }p.4 | 2012-2013 annual report


“P1-76 was a successful project because there was excellent team support all working together to meet both the process demands of the new facility as well as ensure we meet the consent decree requirements. A key element

of the success is during the preliminary development a collaborative project team was established which

included team members from Operations and Maintenance, Process Automation Group,

Engineering, Compliance, and the Laboratory.” Tony Lee

Chief Plant Operator

Project P1-76

Ion time.

n 2008 the Activated Sludge Plant was completed allowing us to successfully check off another milestone requirement. The goal was met 290 days ahead of schedule.

The rehabilitation project consisted of replacing major mechanical equipment such as gates, valves, impeller blades, and piping that had begun to fail or was at the end of its useful life. Large diameter pipes were relined, odor control was added to the aeration basin splitter box, bleach pipelines and injection points were installed and instrumentation and controls were updated.

Design: MWH Americas, Inc.Contractor: J.F. Shea ConstructionConstruction budget: $10,679,019 (under budget)Construction cost: $10,330,573 Construction duration: 749 daysConsent Decree: 290 days ahead of schedule

P2-74 Rehabilitation of the Activated Sludge Plant290 days ahead of schedule



“Moving into rehab means you’re moving into risk. In particular, this project involved handling pure

oxygen and sensitive biological processes. Through teamwork and problem solving, we worked through

the risks, sweated the details, and successfully completed construction 290 days ahead of the

Consent Decree milestone.”Kathleen Millea

CIP Project Management Supervisor

Project P2-74

Ton budget.

he Trickling Filters at Plant No. 2 are the largest facilities of its kind in the United States and second in the world. It consists of three trickling filters, six clarifiers, a pump station, solids contact station, piping, and electrical controls. It cost $180 million to construct.

The mammoth structure consists of 5.3 million square feet of media surface area. Workers poured over 50,000 cubic yards of concrete—the equivalent of a 4-inch layer of concrete from the Huntington Beach Pier to Las Vegas.

Planning, design and construction spanned over nine years. Originally delayed, the project made up time despite numerous challenges.

Design: Brown and CaldwellContractor: J.F. Shea ConstructionConstruction budget: $184,618,097 (under budget)Construction cost: $180,722,248 Construction duration: 1600 daysConsent Decree: 64 days ahead of scheduleAwards: CMAA Southern California Chapter, Project of the Year, 2012

P2-90 Trickling Filters at Plant 264 days ahead of schedule in spite of numerous challenges



Project P2-90

“At the commissioning of P2-90, I asked employees to stand if they prepared correspondence, attended a meeting, applied for permits,

performed a laboratory test, attended training, oversaw safety, helped regulate an industry that could damage the new facility,

cleaned a sewer so that sewage could get into the plant and or other duties related to the construction of the project. Most, if not

all, of the employees stood up. That is a testament to the hundreds of people it took to get this done.”

Jim Herberg Assistant General Manager/ Director of Engineering

Tdirection clear.

he largest project constructed at our Fountain Valley facility required crews to install almost 49 miles of piles, 9½ miles of pipe, and excavate 325,000 cubic yards of dirt. That’s enough dirt to fill up 440 single-family homes.

It consists of six aeration basins, six clarifiers, a blower building and return sludge and waste pumping station over 12 acres of land. It took them about two years and close to 40 truck trips a day to pour 56,000 cubic yards of concrete.

The civil, structural, and mechanical work for this project, took over 370,000 labor hours over a course of four years.

Our Capital Improvement Program is now entering a new phase geared toward rehabilitation and modernization of older facilities to ensure that our ratepayers receive reliable, environmentally responsible service 24/7.

Design: Black & VetchContractor: Kiewit Pacific Co.Construction budget: $208,483,860 (under budget)Construction cost: $208,400,502Construction duration: 2008 daysConsent Decree: 115 days ahead of scheduleP1-102

New Secondary Treatment System115 days ahead of schedule{ }



Project P1-102

“I think the reason for the success is that we were provided clear direction (Board vote) and then had the entire OCSD team make it happen. From upper

management to us team members on the rungs below, we knew where we had to go and we worked

together to get there. We also received excellent support from our IPMC folks as well as design

consultants and contractors.”Brian Bingman

Resident Engineer

Afinances solid.

Adequately funded reserves, experienced management, and prudent planning{ }


Where the Money Comes From

Other$7.5M1%

Beginning Reserves

$603.9M61%

Fees & Charges

$303.9M31%

Property Taxes

$64.0M6%

Interest

$12.1M1%

Where the Money Goes

CIP$137.3M

14%

Ending Reserves

$613.6M62%Operating

$153.7M15%

Debt$82.6M

8%

Intradistrict

$4.2M1%

n “AAA” rating is one of the highest for a government agency. To maintain this rating, OCSD adheres to its coverage ratios and Board approved Debt Policy. This Board-adopted policy serves as the agency’s guide to manage existing debt and the issuance of future debt.

As the result of having adequately funded reserves, experienced management, and prudent planning, the District was able to secure “AAA” credit ratings from both Fitch Ratings and Standard and Poor’s.

Lorenzo TynerDirector of Finance and Administrative Services

LACS

DO

ro L

oma

Irvin

e Ra

nch

Sacr

amen

toO

CSD

East

Bay

MU

D

Uni

on

Dub

lin

Hay

woo

dCn

tl Co

ntra

Cos

taCi

ty o

f LA

Valle

joSa

n D

iego

San

Fran

cisc

o0

100

200

300

400

500

600

700

800

Fres

no

How do our rates compare

Ofuture bright.

ur commitment to preserving a healthy way of life and economic well-being for Orange County remains firm and extends well into the future with an aggressive, ongoing capital improvement program.

During the past 10 years alone, we have spent $1.9 billion in construction projects to improve and sustain our quality of life. We continue to research new technologies to further protect the environment and recycle treated sewage.

We are doing things to maintain healthy infrastructure topromote sustainable communities{ }


Iworld’s first.

n collaboration with the University of California Irvine and the National Fuel Cell Research Center, we launched an experimental fuel cell—the first of its kind in the world. It turned our Fountain Valley treatment plant into a filling station for hydrogen cars.Drivers of hydrogen-fueled cars can fill up with converted sewage waste that offers the equivalent of 70 miles per gallon. The project simultaneously converts wastewater to electricity and heat in a highly efficient, clean manner.

The station was designed by UCI, FuelCell Energy Inc., which makes pollution-free power plants, and Air Products & Chemicals Inc., the biggest U.S. supplier of industrial gases. The U.S. Department of Energy, the California Air Resources Board, and the South Coast Air Quality Management District provided funding.

The world’s first hydrogen fuel station powered by wastewater{ }


Oleading edge.

ur ocean monitoring team is investigating the cause of changes to fish and invertebrate communities near the ocean outfall. It is a two-phased multi-disciplinary study comprised of about 12 smaller projects designed to identify the source(s) of the change. A final project report detailing the studies and providing recommendations for mitigation is due in January 2013.

Another effort currently underway by ocean program scientists is a sediment mapping study. This study will optimize the placement of our sediment sampling stations to provide the best quality data to detect potential environmental change in the most efficient way possible. The study utilizes advanced statistical techniques taking advantage of three decades of our ocean monitoring data coupled with targeted field sampling to fill in identified data gaps. The project is being conducted with assistance from the Southern California Coastal Water Research Project.

Leading the way in marine science{ }


Wcourse set.

e’re committed to recycling our biosolids in a sustainable manner that includes a diverse portfolio of options. Biosolids will continue to enrich soils through land application (producing hay at desert farms) and composting (producing soil amendment).

Due to recent changes in our program (ending an expense energy option, renewing land application contracts, and allocating a small portion to landfill), OCSD will see significant savings in our $18 million biosolids hauling and management program. In addition, new dewatering centrifuges and the cessation of Irvine Ranch Water District solids to our treatment plant will reduce our biosolids production by about one-third by 2017, slashing future program cost projections to about $12 million.

Diversity remains the key to our biosolids program{ }


Ogoals defined.

dors are inherent to treating wastewater and we continue our good neighbor policy. Our goal is to limit offsite odor impacts in a comprehensive and cost effective manner. That means no odors leave the plant boundaries and affect our surrounding communities.While significant reductions of offsite odors occurred during the last five years, we are in the process of designing or constructing projects that will further limit odors.

The goal is to limit offsite odor impacts { }


T

simple message. powerful results.

echnology and science can accomplish amazing things but when it comes right down to it, often-simple things we do every day can create or solve the problem.

This year we launched our new campaign “What 2 Flush.” It is simple—only three things go down the drain—the three “P’s.” Human waste and toilet paper should be the only things going down the toilet.

Over the years, people have turned the toilet into a trashcan. From medications and sanitary products to deceased pet fish and cigarette butts, if it fits, people flush it. Flushing these types of items down the toilet causes home pipes to clog, wastes water (up to 5 gallons of water every time you flush) and most importantly can have a huge impact on our sewers, not to mention our ocean.

The new campaign with its simple universal logo is recognizable on stickers, t-shirts, hats and grocery bags throughout the county. A high school video contest produced four fun public services announcements that will soon be on screens near you! Over 250,000 of Orange County residents learned about the program at various community events this year.

The only thing that should be going down the drain is what comes out of the faucet!

Only three things go down the drain—the three “P’s{ }



AnaheimGail Eastman

BreaDon Schweitzer

Buena ParkFred Smith

CypressPrakash Narain

Fountain ValleyLarry Crandall

FullertonGreg Sebourn

Garden GroveBill Dalton

Huntington BeachJoe Carchio

IrvineJeffrey Lalloway

La HabraTom Beamish

La PalmaMark Waldman

Los AlamitosTroy Edgar

(Chair)

Newport BeachSteven Rosansky

OrangeJon Dumitru

PlacentiaScott Nelson

Santa AnaSal Tinajero

Seal BeachMichael Levitt

StantonDavid Shawver

TustinJohn Nielsen

Villa ParkBrad Reese

Yorba LindaJohn Anderson

(Vice Chair)

Costa Mesa Sanitary DistrictJames M. Ferryman

Midway City Sanitary District Joy L. Neugebauer

Irvine Ranch Water DistrictJohn Withers

Member of the Board of SupervisorsJanet Nguyen

the board.

awards.National Awards2012 National Environmental Achievement Award National Association of Clean Water Agencies

Bitter Point Pump Station—Award of Merit for Best Civil Works/Infrastructure ProjectEngineering News Record

Peak Performance Gold Award (Plant No. 1 and Plant No. 2) National Association of Clean Water Agencies

2012 Jennings Randolph Fellowship Award—Dr. Carla Dillon The Eisenhower Institute

17th Annual Achievement of Excellence in Procurement Award National Procurement Institute

100 Best Fleets Award Savvy Award City-County Communications and Marketing Association

Certificate of Achievement for Excellence in Financial Reporting Government Finance Officers Association

State AwardsGeneral Manager of the Year—James D. Ruth California Special District Association

Outstanding Public Outreach/Education Award (large agency)—social media efforts California Association of Sanitation Agencies

Award for Excellence, Information Technology Practices Municipal Information Systems Association of California

Regional Awards Operator of the Year—Mike Haworth California Water Environment Association—Santa Ana River Basin Section

Engineering Achievement Award for Plant No. 2 Headworks Project California Water Environment Association—Santa Ana River Basin Section

Research Achievement Award for engine emissions control demonstration project California Water Environment Association—Santa Ana River Basin Section

CMAA 2012 Project of the Year—Plant No. 2 Trickling Filters Project Construction Management Association Of America—Southern California Chapter

Orange County Analyst of the Year—Marty England Help Desk Institute


To the most important characters in this story…

A special thank you to our employees who made this day happen—on time and on budget. To those who stood by—from beginning to end, contributed and moved on, or joined us along the way… thank you. Your contributions will not be forgotten. This greatness of this institution lies in all who dedicated themselves to the hard work of the past 58 years and those who will continue our mission to protect the health and the environment of Orange County.

strong team.IPMC. A revolutionary approach to managing a nearly impossible goal.

In 2002, we set out on a 10-year, multibillion-dollar capital improvement program consisting of 179 projects to be planned, designed, and constructed in order to have the necessary treatment facilities in place by December 2012.

Integrated Program Management Consultants (IPMC), a joint venture of CH2M HILL and Parsons, provided program and construction management support services to upgrade our two-wastewater treatment plants, upgrade and/or replace regional pump stations, and refurbish/replace numerous large-diameter sewer lines that collect and transport the wastewater.

IPMC staff were collocated and integrated with OCSD staff onsite at our two operating plants allowing all three companies to use their collective experience in scheduling the projects, managing design consultants, conducting engineering reviews on submittals, and reporting on program/project status. This novel approach allowed us to pull from a wealth of uniquely qualified professionals with unique skill sets. We pulled from IPMC staffing to scale up and down as needed to meet the fluctuating resource needs of the program. It provided a unified—and seamless—team approach with each organization learning skills from the other.


Reclamation Plant No. 1 (Administration Offices)10844 Ellis Avenue • Fountain Valley, California 92708 • 714.962.2411

Treatment Plant No. 222212 Brookhurst Street • Huntington Beach, California 92646

www.ocsewers.com

© OCSD 10/2012

2012 Annual Report

Documents

construction duration

budget construction

rehabilitation project

days consent decree

clarifier project

met290 days

successful project

new clarifiers