attachment c - regional san

Attachment C

Table of Contents

Message from the District Engineer ............................................................... 2

Service Area................................................................................................... 3

Board of Directors ......................................................................................... 4

Organizational Chart ...................................................................................... 5

Overview ....................................................................................................... 6

Operating Fund Budget Summary ................................................................... 7

Official Operating Fund Budget Schedule ....................................................... 8

Top Budgeted Expenditures ........................................................................... 9

Budget Program Summary ............................................................................ 10

Program Descriptions & Budgets .................................................................. 11

Capital Fund Budget Summary ..................................................................... 28

Official Capital Fund Budget Schedule .......................................................... 29

Capital Projects List ..................................................................................... 30

Reserves Schedule ....................................................................................... 31

Summary of Positions .................................................................... Appendix A

Regional San Page 2

Message from the District Engineer

he Sacramento Regional County Sanitation District (Regional San) is proud to present its 2015-16 Budget. This budget book presents to our ratepayers, stakeholders, Board of Directors, and staff our fiscal plans for the upcoming year. This document is critical in guiding our

expenditures as we continue to provide our customers in the Sacramento Region with wastewater conveyance, treatment, and disposal services in a safe, efficient, and innovative manner. For the second year in a row, the operating budget is slightly below the prior year, despite absorbing staffing cost increases from cost-of-living adjustments and inflationary adjustments for energy, services, and supplies. Also, for the second year in a row, there will be no new positions. Prudent management has allowed us to maintain lean operating budgets while delivering the services our customers expect. Despite the cost containments, for the first time in Regional San’s history the total budget crossed the “half-a-billion” mark. These increases will fund construction of the EchoWater Project required for compliance with regulatory requirements. This project has been the main driver for budget increases in recent years. Such increases are reflected in various places such as costs for additional staff, consultants, and public outreach and education. Increases in staffing have been strategically planned with recognition of the finite nature of the construction efforts and the need to be able to make adjustments to appropriate long-term staffing levels after the project is complete. During this period of increasing costs, staff remains attentive to the need to take prudent fiscal and financial actions to ensure costs are closely managed and ways to minimize expenditures are aggressively pursued.

To learn more about Regional San, review previous budget books, and read about our activities and performance, please visit us at www.RegionalSan.com.

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Regional San Service Area

Regional San Page 4

Regional San Board of Directors

Regional San Page 5

Organizational Chart

Regional San Page 6

Regional San Overview

acramento Regional County Sanitation District (Regional San) provides wastewater conveyance and treatment services for residential, industrial, and commercial customers throughout unicorporated Sacramento County; the cities of Citrus Heights, Elk Grove, Folsom, Rancho Cordova, Sacramento, and West Sacramento; and the communities of Courtland and Walnut Grove.

The region’s wastewater travels through 169 miles of interceptor pipelines, 46 miles of force mains (pressurized pipes), and 11 pump stations before it reaches the Sacramento Regional Wastewater Treatment Plant (SRWTP) near Elk Grove where it is treated and safely discharged to the Sacramento River. In normal weather years, we treat, on average, approximately 150 million gallons of wastewater each day.

Regional San is now embarking on the most significant upgrade to SRWTP since its original construction. Stringent state-mandated regulations require facility updates and construction of additional major treatment facilities. These upgrades, known as the EchoWater Project, are expected to cost between $1.5 to $2.1 billion to design and build and approximately $50 million per year in additional operation and maintenance costs.

Regional San is governed by a 17-member Board of Directors composed of the Sacramento County Board of Supervisors; representatives of the cities of Citrus Heights, Elk Grove, Folsom, Rancho Cordova, Sacramento, and West Sacramento; and a representative of the Yolo County Board of Supervisors.

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Regional San Page 7

Operating Fund Budget Summary

he 2015-16 Operating Fund Budget is $113,148,033 net of depreciation and amortization, a decrease of $40,941 or.04 percent, from the 2014-15 approved budget. Budget includes costs largely associated with salary adjustments and increased regulatory requirements in the new National Pollution Discharge Elimination Systems (NPDES) permit issued in December 2010. Highlights of the budget are as follows:

The Salary & Benefits budget increased by approximately $1.1 million, or 1.8 percent, from the 2014-15 budget. Labor charged to the capital fund for EchoWater projects is $5.8 million and will be fully reimbursed to the operating fund.

Services & Supplies decreased by about $1.3 million, or 2.7 percent, from the 2014-15 budget. Main decrease due to expected change in chemical usage for disinfection and odor control.

Contingency remained the same at $2 million. This is an allowance for potential increases in operating costs due to weather or other abnormal conditions that are not included in routine budget requests. Use of contingencies is authorized as needed by the District Engineer.

Depreciation is unchanged from the 2014-15 budget. Amortization increase of $170,000 is a result of Government Accounting and Standards Board Statement 51 regarding intangible assets. Depreciation and amortization are non-cash budget items.

General Reserve increase of $978,350 funded by the expected year-end increase to working capital and brings the Reserve to approximately 25 percent of the Operating Budget (excluding contingency, depreciation and amortization).

Working Capital is the difference between current assets and current liabilities and is an indication of short-term financial strength. The estimated ending balance of Working Capital for the 2014-15 fiscal year is about $90.0 million. The 2015-16 Operating Fund budget results in an increase of $5,008,383 to Working Capital to fund the General Reserve increase. The estimated 2015-16 ending Working Capital is about $95.3 million.

Funding for the Operating Fund is primarily derived from monthly service charg es and interest earnings on cash balances. Effective July 1, 2015, the monthly service rate will increase from $29.00 per month per equivalent single-family-dwelling (ESD) to $32.00 per month per ESD. A portion of the monthly service rate, $11.00 per month per ESD, is earmarked to specifically fund the EchoWater Project in the capital fund budget. The cost of the Sewer Lifeline Rate Assistance Program (SLRAP), which credits $8.33 per month for qualifying customers, is also included in this budget. Funding for SLRAP is provided from non-rate and non-fee revenues and a program-specific endowment fund.

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Regional San Page 8

Official Operating Fund Budget Schedule

FISCAL YEAR 2015-16

FUND # 261A

OPERATING BUDGET 3028000

REVENUES

Monthly Service Charges 102,540,317$ 102,533,560$ 108,152,177$ 106,023,163$

Capital &Other Labor Reimbursements 10,741,961$ 10,149,258$ 12,792,476$ 11,428,965$

Other Revenue 1,894,231$ 1,988,650$ 1,943,800$ 1,889,095$

Interest Income 198,880$ 468,100$ 501,965$ 158,000$

Total Operating Revenues 115,375,389$ 115,139,568$ 123,390,418$ 119,499,223$

EXPENSES

Salaries 55,084,206$ 58,697,782$ 54,595,871$ 59,775,554$

Services & Supplies 47,218,508$ 50,546,628$ 48,027,100$ 49,199,323$

Depreciation & Amortization 45,233,379$ 47,562,000$ 47,362,819$ 47,732,000$

Other Charges 1,777,310$ 1,484,564$ 1,910,441$ 1,734,156$

Fixed Assets

Equipment 32,318$ 460,000$ -$ 439,000$

Contingency -$ 2,000,000$ -$ 2,000,000$

Total Operating Expenses 149,345,721$ 160,750,974$ 151,896,231$ 160,880,033$

Depreciation/Amortization Offset (45,233,379)$ (47,562,000)$ (47,362,819)$ (47,732,000)$

Operating Fund Budget 104,112,342$ 113,188,974$ 104,533,412$ 113,148,033$

SOURCE OF WORKING CAPITAL 11,263,047$ 1,950,594$ 18,857,006$ 6,351,190$

Reserve Contribution 11,861,650$ 1,360,000$ 1,360,000$ 1,342,807$

Net Change Increase (Decrease) (598,603)$ 590,594$ 17,497,006$ 5,008,383$

Beginning Working Capital 73,435,269$ 62,312,293$ 72,836,666$ 90,333,672$

Ending Working Capital 72,836,666$ 62,902,887$ 90,333,672$ 95,342,055$

Actual

2013-14

Estimated

2014-15

Requested &

Recommended

2015-16

Operating DetailsBudget

2014-15

Regional San Page 9

Top 10 Budgeted Expenditures Depreciation 15-16 $47,732,000 Depreciation expense that is charged against Regional

San assets reflects an increase of $170,000. This is a non-cash account for asset accounting purposes. Amortization is expected to increase.

14-15 $47,562,000

Salaries 15-16 $38,235,423 Salaries paid for permanent and temporary employees. Anticipated costs increased approximately $1.5 million due to salary increases from equities and Cost of Living Adjustments (COLA's).

14-15 $36,758,410

Electricity 15-16 $11,934,200 Projected electricity costs reflect an increase of $252,150 due to SMUD rate increases and EchoWater Project load increases. Vast amounts of electricity are used to operate the treatment plant and pump stations. Electrical usage varies depending on the weather each year, and the associated costs may need to be covered by contingencies.

14-15 $11,682,050

Retirement Costs 15-16 $11,366,394 Retirement contributions reflect a decrease of $411,698 due to higher contributions from employees. 14-15 $11,778,092

Chemical Supplies 15-16 $7,495,450 Projected chemical costs reflect a decrease of $964,977, primarily as a result of expected change in chemicals by February 2016 for disinfection and odor control. Treatment plant process conditions vary from year to year and can result in significant variations in costs. Unusual events that may cause chemical costs to exceed the budget would be covered by Regional San contingency funds.

14-15 $8,460,427

Sewage Disposal Services

15-16 $5,750,000 Payments to Synagro for biosolids recycling and to the City of Sacramento for the operation of Regional San facilities reflect a decrease of $175,000 due to the refinancing of the Biosolids Recycling Facility.

14-15 $5,925,000

Group Insurance 15-16 $5,694,350 Health, dental, life, and vision insurance costs reflect a decrease of $90,584. 14-15 $5,784,933

Engineering and Consulting Contracts

15-16 $3,100,145 Payments to engineering and consulting firms are anticipated to decrease $31,679. 14-15 $3,131,824

Social Security and Medicare

15-16 $2,881,568 Social Security and Medicare costs are anticipated to decrease $21,562. 14-15 $2,903,130

Contingency 15-16 $2,000,000 Contingency funds are budgeted in the event of an unanticipated event, such as a drastic increase in electrical or chemical costs due to significant wet-weather or abnormal conditions. The contingency appropriation remains unchanged.

14-15 $2,000,000

Regional San Page 10

Regional San Budget Program Summary

PROGRAM 2013-14

Actual 2014-15 Budget

2014-15 Est. Year-End

2015-16 Recommended

SRWTP Operations $29,829,588 $29,863,709 $29,984,986 $30,579,855

SRWTP Maintenance $17,329,940 $17,646,899 $16,644,099 $18,248,940

Fiscal/Admin $9,298,803 $10,390,891 $8,902,442 $9,806,108

Policy & Planning $7,162,498 $7,791,946 $7,432,012 $8,197,424 Interceptor Operations & Maintenance $8,821,329 $9,151,374 $9,359,432 $8,102,248

Information Technology $5,984,035 $7,120,916 $6,109,565 $6,624,135

Operations Support $4,071,665 $4,880,821 $3,916,196 $5,107,298

Engineering $4,734,363 $5,354,352 $4,723,831 $5,077,416

Operations & Maintenance Admin $4,163,931 $4,490,410 $4,281,323 $4,739,781

Laboratory $3,857,597 $4,344,800 $3,819,644 $4,302,105

Wastewater Source Control $1,926,414 $2,176,157 $1,867,582 $2,204,181

Purchasing/Stores $1,513,905 $1,844,027 $1,555,841 $1,897,773

Bufferlands $1,380,576 $1,441,981 $1,425,703 $1,519,185

Office of Operations Director $1,297,866 $1,364,164 $1,533,276 $1,455,718

Office of Finance $979,808 $1,322,580 $1,060,953 $1,323,105

Program Management Office $831,574 $1,285,417 $1,206,263 $1,288,714

Office of Public Affairs $1,143,084 $1,302,684 $924,898 $1,258,201

SUBTOTAL $104,326,976 $111,773,128 $104,748,046 $111,732,187

Contingency $0 $2,000,000 $0 $2,000,000

Derivative Amortization (GASB 53) ($214,634) ($584,155) ($214,634) ($584,155)

Depreciation & Amortization $45,233,379 $47,562,000 $47,362,819 $47,732,000

TOTALS $149,345,721 $160,750,974 $151,896,230 $160,880,033


Program Descriptions & Budgets SRWTP Operations

Responsible for the 24/7 operation of SRWTP and staffed by five shifts of Operators (Day, Swing, Grave, Swing

Relief, and Grave Relief). Staff includes State of California certified wastewater treatment plant operators and

supervisors. Operators use a centralized Plant Computer Control System and field activities to operate the

treatment plant for the protection of the public and environment.

The 2014-15 estimated year-end is $121,277 over budget due to permit charges and other maintenance and

administrative costs.

Salaries and benefits are 27 percent of the budget and include COLAs. Increase for chemicals for wastewater

disinfection due to effluent diversions, as well as higher chemical use for odor control, both brought on by

low-flow conditions due in part to drought conditions. Electricity costs include an expected Sacramento

Municipal Utility District rate increase and allowance for drought-related charges for hydroelectric power

generation.

Category Name FY 2014-2015 Approved

Budget:

FY 2014-2015 Est Year

End:

FY 2015-2016 Budget

Request:

Salaries & Benefits 7,642,494 7,738,351 8,109,283

Electricity 9,380,000 9,380,000 9,600,000

Biosolids Recycling Facility 6,050,000 5,776,857 5,940,000

Chemicals 5,460,427 5,445,596 5,589,950

Permit Charges 730,000 1,046,385 750,000

Grit Hauling 240,000 182,462 215,000

Other 360,788 415,336 375,622

GRAND TOTAL 29,863,709 29,984,986 30,579,855


Program Descriptions & Budgets SRWTP Maintenance

Responsible for the maintenance of SRWTP facilities and equipment, including mechanical, electrical, control

systems, and all buildings and structures. Electrical systems include 69 kilovolt (kV) service, 12kV distribution,

and 4kV and 480 volt for process equipment. Control systems include security, fire alarm, public address, and

process instrumentation. Mechanical equipment includes all treatment-process systems, oxygen-generation

facilities, and buildings and structures. Major work activities involve preventive maintenance, such as

inspection, testing, cleaning, and lubrication; corrective maintenance; and other maintenance-related

activities such as analyses of asset data and information.

The 2014-15 estimated year-end is $1.0 million under budget and consists of savings in salaries and benefits

due to vacancies and reduced allocation for Workers Compensation, and savings in maintenance services and

supplies; fuel and lubricants; and other professional services.

Salaries and benefits are 73 percent of the budget and include COLAs. Fuel and lubricant costs expected to

decrease slightly.


Budget:


End:

FY 2015-2016 Budget

Request:


Regional Stores 1,558,000 1,626,034 1,507,000

Maint Serv & Supp 1,343,056 1,000,258 1,270,491

Heavy Equipment Serv & Supp 545,834 525,520 561,058

Fuel & Lubricants 312,330 228,194 302,205

Personnel Services 154,990 155,099 148,721

Other 1,016,140 980,162 1,071,372

GRAND TOTAL 17,646,899 16,644,099 18,248,940


Program Descriptions & Budgets Fiscal/Administration

Includes the Office of the District Engineer and all fiscal and general administration staff for both Regional San

and SASD. Responsible for budget development and monitoring; program cost accounting; accounts

payable/receivable; personnel/payroll; training; records management; Sewer Lifeline Rate Assistance

Program; and all administrative support.

The 2014-15 estimated year-end is $1.5 million under budget and consists of savings in salary and benefits due

to vacancies; various reductions in some allocated costs; and lower business/conference and training

expenses.

Salaries and benefits are 49 percent of the budget and include COLAs. Decreases include lower allocated costs

from the County of Sacramento (e.g. property), and reductions in liability insurance. Staff time in support of

SASD activities is reimbursed to Regional San by SASD. Service and supply costs for SASD fiscal/administrative

activities are contained in the SASD Budget.


Budget:


End:

FY 2015-2016 Budget

Request:


Sewer Lifeline Rebate 1,500,000 1,459,754 1,500,000

Property & Liability Insurance 1,247,380 1,247,304 1,051,303

Contributions 395,000 222,150 483,931

County Overhead 143,719 74,964 304,380

COMPASS Costs 284,295 284,297 273,983

Legal Services 250,000 198,789 238,000

Memberships 190,000 197,444 209,610

Other 1,044,724 992,013 1,075,885

GRAND TOTAL 10,390,891 8,723,113 10,106,108


Program Descriptions & Budgets Policy & Planning

Responsible for monitoring and engaging in state and federal legislative and regulatory processes; long-range

strategic planning to optimize wastewater conveyance and treatment; sustainability and “green” efforts;

watershed management programs; scientific research and technical support related to environmental and

process needs; rates and fees development; and policies including development and oversight of ordinances

and agreements with contributing and other agencies.

The 2014-15 estimated year-end is $359,934 under budget due to a staff vacancy for a portion of the fiscal

year and reduced cost for group insurance. Savings in services and supplies include reductions for business

conferences, lobbying services, water-related legal services, and fewer services provided by SASD to support

P&P special projects.

Salaries and benefits are 55 percent of the budget and include COLAs. Consulting contracts are for permit

compliance, facilities plan development for water recycling, and Delta research support. Legal services are for

permit-related litigation. Other professional services include state and federal lobbying assistance. Staff time

in support of SASD activities is reimbursed to Policy and Planning by SASD. Policy & Planning includes budget

for its service and supplies in the SASD budget.


Budget:


End:

FY 2015-2016 Budget

Request:


Consulting Contracts 1,970,000 2,170,913 2,144,913

Legal Services 546,000 100,850 1,023,000

Other Professional Services 405,560 340,706 180,000

Other 527,262 735,707 339,678

GRAND TOTAL 7,791,946 7,432,012 8,197,424


Program Descriptions & Budgets Interceptor Operations & Maintenance

Responsible for the operations and maintenance of the Regional San conveyance facilities, which include eight

pump stations and 169 miles of interceptor pipe. Major maintenance activities include preventive and

corrective maintenance. Preventive maintenance includes testing equipment and systems, inspection,

lubrication, adjustment, predictive-maintenance testing to evaluate equipment health, and cleaning and line-

flushing to prevent solids deposition. Corrective maintenance, while less frequent, includes repair of

equipment and systems that are broken or have failed.

The 2014-15 estimated year-end is $208,058 over budget and consists of higher costs in chemicals for odor

control as a result of the impacts to the collection system and SRWTP from the drought conditions.

Salaries and benefits are 31 percent of the budget and include COLAs. Low rainfall and subsequent poor

flushing of the interceptor collection system cause odors in the conveyance system and at the SRWTP,

resulting in an increase for odor control chemicals. Sewage-disposal cost is for reimbursement to the City of

Sacramento for operation of Regional San facilities such as Sump 2/2a that is part of the Regional San-owned

City Interceptor system.


Budget:


End:

FY 2015-2016 Budget

Request:


Electricity 1,930,000 1,930,000 1,952,000

Chemicals 3,000,000 3,841,356 1,905,500

Sewage Disposal 750,000 322,485 750,000

Equipment 130,000 0 130,000

Electrical Serv & Supplies 90,000 126,794 100,000

Mech Serv & Supplies 90,000 90,963 90,000

Other 727,631 587,499 697,024

GRAND TOTAL 9,151,374 9,359,432 8,102,248


Program Descriptions & Budgets Information Technology

Provides staffing for Regional San’s help desk; IT troubleshooting; hardware and software configuration;

systems administration; programming; intranet development and maintenance; network and server support;

video conferencing and conference room audio-visual support; and IT project management.

The 2014-15 estimated year-end is $1.01 million dollars under budget and consists of savings in salary and

benefits due to vacancies; reductions in contract staff, hardware and software costs; and Department of

Technology (DTech) support costs for systems development services.

Salaries and benefits are 50 percent of the budget and include COLAs. Computer hardware/software costs

increased to match projected needs. Contract staff positions decreased due to not backfilling contractor

positions. County Network, Countywide IT Services, and DTech support are allocated costs from the County of

Sacramento. Staff time in support of SASD activities is reimbursed to Regional San by SASD. All service and

supply costs for SASD activities are contained in the SASD budget.


Budget:


End:

FY 2015-2016 Budget

Request:


DTech Support 1,108,371 972,144 1,166,454

Hardware & Software 888,361 879,526 1,008,239

Contract Staff 1,234,560 1,238,388 868,909

Other 359,957 185,225 264,984

GRAND TOTAL 7,120,916 6,109,565 6,624,135


Program Descriptions & Budgets Operations Support

Responsible for process optimization and providing operations engineering support to various sections at

SRWTP. Duties include process pilot studies; regulatory and permit compliance and reporting; support of

SRWTP and interceptor operations; coordination of construction activities; security coordination; and

support/technical assistance to the EchoWater Project, Program Management Office, and AWTP pilot project.

The 2014-15 estimated year-end is $964,625 under budget and consists of savings in salaries and benefits due

to vacancies and reduced allocation for Workers Compensation. Savings in services and supplies consist of

reduced costs for equipment rental for pilot studies, equipment maintenance, laboratory services, other

operating expenses, and telephone services.

Salaries and benefits are 80 percent of the budget and include COLAs. Consulting contracts include special

studies needed for the Waste Discharge Requirement permit renewal for the solids management program

along with other consultant support.


Budget:


End:

FY 2015-2016 Budget

Request:


Consulting Contracts 573,000 123,053 468,000

SASD Support 78,000 48,377 54,000


Other 209,092 142,925 482,997

GRAND TOTAL 4,880,821 3,916,196 5,107,298


Program Descriptions & Budgets Engineering

Provides engineering and project management support services for capital and non-capital projects. Project

phases and tasks include planning, lifecycle-cost analysis, design, construction, start-up and commissioning,

and overall project management. Larger capital projects generally involve the hiring and management of

engineering consultants. Smaller capital projects are typically designed in-house and may utilize specialty

consultants to supplement staff resources. Engineering provides significant staff resources to assist as Project

Engineers, Project Managers, and other technical support to the EchoWater Project.


to vacancies, fewer than anticipated small maintenance projects, and reduced modeling support from SASD.

Salaries and benefits are 77 percent of the budget and include COLAs. Other costs include condition-

assessment work, non-capital maintenance, rehabilitation, and repair projects. Services and supplies related

to capital projects are charged directly to the Capital Fund and are not included in the budget.


Budget:


End:

FY 2015-2016 Budget

Request:


Small Maintenance Projects 1,231,000 809,192 994,500


SASD Modeling 50,000 755 0

Other 149,088 120,317 168,575

GRAND TOTAL 5,354,352 4,723,831 5,327,416


Program Descriptions & Budgets Operations & Maintenance Administration

Responsible for management and support of the Operations & Maintenance (O&M) Section. Activities include

development of operations and maintenance policies and procedures; administration of the Risk Management

Program/Process Safety Management Program related to the use of hazardous chemicals at SRWTP; energy

management; and continued implementation of asset-management activities. This program also includes the

documentation group, which maintains current and accurate records for all Regional San facilities.


to vacancies. Savings in services and supplies include lower costs for consulting contracts and personnel

services.

Salaries and benefits are 88 percent of the budget and include COLAs. Continuing consulting contracts for

services related to testing and monitoring requirements contained in the new permit and other regulations

have decreased.


Budget:


End:

FY 2015-2016 Budget

Request:


Consulting Contracts 335,000 170,492 220,000


Other 173,575 350,207 306,313

GRAND TOTAL 4,490,410 4,281,323 4,989,781


Program Descriptions & Budgets Laboratory

Responsible for providing environmental laboratory analytical services to Regional San and other public

agencies, including the Sacramento County Water Agency, Kiefer Landfill, and the cities of Sacramento and

Isleton. Laboratory functional units include the Chemistry, Biology, and Conventional Chemistry Sections.

Laboratory Program Coordinators are responsible for the coordination of lab services with customers. Staff

also provides sample collection services for assorted drinking water, groundwater, river water, and SRWTP

process-control samples. Most testing is performed by laboratory staff except when the lab is not certified for

a specific test, or the testing requires specialized capabilities of an outside lab.

The 2014-15 estimated year-end is $525,000 under budget and consists of savings in salaries and savings

related to delayed purchase of lab equipment.

Salaries and benefits are 74 percent of the budget and include COLAs. The majority of service and supply

expenses are for supplies needed for sample collection, sample analysis, and lab-services cost for testing

provided by other commercial labs. All services performed by the Laboratory for other agencies are billed to

those agencies to recover Regional San costs.


Budget:


End:

FY 2015-2016 Budget

Request:


Lab Supplies 280,000 248,624 320,000

Lab Services 300,000 242,433 290,000

Lab Equipment 330,000 0 150,000

Regional Stores 130,000 143,654 150,000

Other 213,063 228,444 228,368

GRAND TOTAL 4,344,800 3,819,644 4,302,105


Program Descriptions & Budgets Wastewater Source Control Section

Provides regulatory oversight of industrial and commercial types of wastewater discharges into the sewer

system. Responsible for protecting the conveyance system and SRWTP from harmful effects of non-residential

discharges through the implementation of the federally-mandated Pretreatment Program and local permit

programs regulating groundwater remediation dischargers, surface cleaners, dry cleaners, liquid waste

haulers, and temporary dischargers. Conducts permitting; inspection; sampling; enforcement; source

reduction; incident response; pollutant tracking and trending; and education and outreach.

The 2014-15 estimated year-end is $308,575 under budget with savings related to one vacancy and a decrease

in allocation for Workers Compensation.

Salaries and benefits are 88 percent of the budget and include COLAs. Primary expenses are for security

services for the Roseville-Watt Liquid Waste Disposal Station and support from SASD to maintain flow-

monitoring equipment and provide flow-modeling. Staff time in support of SASD activities is reimbursed to

Regional San by SASD. All service and supply costs for SASD activities are contained in the SASD budget.


Budget:


End:

FY 2015-2016 Budget

Request:


SASD Support 50,000 45,693 50,000

Security Services 45,000 43,038 45,000

Goethe Building Cost Share 35,285 41,286 36,678

Other 144,459 102,654 139,877

GRAND TOTAL 2,176,157 1,867,582 2,204,181


Program Descriptions & Budgets Purchasing/Stores

Responsible for purchasing, professional contracting, and stores functions for both Regional San and SASD.

Administers procurement card and surplus property programs. Processes approximately 8000 purchasing

requests per year. Regional San store has more than 5,500 line items with an inventory of $3.5 million to

support operations.

The 2014-15 estimated year-end is $288,186 under budget because of savings in salaries and benefits due to

one vacancy and reduced allocation for Workers Compensation. Savings in services and supplies include

reductions for professional services contracts, business conferences, and publications.

Salaries and benefits are 84 percent of the budget and include COLAs. Obsolete stock is write-off of old SRWTP

equipment that has been replaced with newer, updated equipment. More surplus items are expected due to

EchoWater Project construction and shutdown of old plant facilities. Staff time in support of SASD activities is

reimbursed to Regional San by SASD. All service and supply costs for SASD activities are contained in the SASD

budget.


Budget:


End:

FY 2015-2016 Budget

Request:


Obsolete Stock 150,000 0 150,000


Other 66,715 78,700 138,635

GRAND TOTAL 1,844,027 1,555,841 1,897,773


Program Descriptions & Budgets Bufferlands

Provides professional biological guidance and support to Regional San projects and operations that may

impact sensitive environmental resources. Support includes review of project and program designs and

specifications; negotiation of appropriate impact-mitigation measures; implementation, oversight, and

monitoring of project mitigation; and tracking and coordination of projects by other entities that may impact

Regional San natural resources. Other responsibilities include stewardship of Bufferlands’ natural resources

and other Regional San properties through wildlife habitat restoration and conservation, landscaping, weed

abatement, agricultural lease administration, oversight of Park Rangers, other grounds-maintenance and

security-related tasks, and participation in public outreach and education as requested.

The 2014-15 estimated year-end is $16,278 below budget.

Salaries and benefits are 62 percent of the budget and include COLAs. Expenses include costs for the park

ranger security patrols of Bufferlands, landscaping, weed abatement, real estate services, and light vehicles for

staff.


Budget:


End:

FY 2015-2016 Budget

Request:

Salaries & Benefits 906,674 892,909 940,851

Park Rangers 220,168 220,168 220,875

Landscape 60,600 57,656 73,000

Weed Abatement 47,500 82,239 47,000

Real Estate Services 30,000 40,000 45,000

Other 177,039 132,732 192,459

GRAND TOTAL 1,441,981 1,425,703 1,519,185


Program Descriptions & Budgets Office of Operations Director

Includes the Regional San Director of Operations and Safety Office staff. Director is responsible for managing

the operation and maintenance of the interceptor collection system and SRWTP. Specifically, this includes

oversight of the following workgroups in the Department: Engineering, Operations & Maintenance,

Operations Support, Laboratory, EchoWater Project – Program Management Office, and Safety. The Safety

Office is responsible for all safety activities required to operate and maintain Regional San assets in a safe

manner and to ensure a safe working environment for all staff.

The 2014-15 estimated year-end is $169,112 over budget due to staffing levels and higher salaries and

benefits costs.

Salaries and benefits are 52 percent of budget and include COLAs. Security services increase is to continue to

provide security presence in areas recommended by federal and state agencies, as well as provide EchoWater

Project security during construction. Other expenses include safety-related services and supplies, including

hazardous-waste removal.


Budget:


End:

FY 2015-2016 Budget

Request:


Security Services 350,000 401,900 400,000

Safety Serv & Supp 185,000 168,774 200,000

Other 171,744 232,847 99,706

GRAND TOTAL 1,364,164 1,533,276 1,455,718


Program Descriptions & Budgets Office of Finance

Responsible for financial activities, including preparation of the Comprehensive Annual Financial Reports,

grant reports, and other financial reports; debt issuance and management; investment management; long-

term financial planning and revenue projections; development of financial policies and procedures; budget

review and monitoring; and auditing of contributing agencies and internal financial activities.

The 2014-15 estimated year-end is $261,627 under budget and consists of reductions in investment and

accounting services, and unused budgeted consulting contracts.

Salaries and benefits are 72 percent of the budget and include COLAs. Increase in consulting contracts is

needed to conduct an audit of contributing agencies. Investment services remain the same as estimated year-

end. Staff time in support of SASD activities is reimbursed to Regional San by SASD. All services and supply

costs for SASD activities are contained in the SASD budget.


Budget:


End:

FY 2015-2016 Budget

Request:


Consulting Contracts 150,000 0 200,000

Accounting Services 80,600 55,000 57,600

Investment Services 100,000 50,000 50,000

Other 67,181 42,816 65,831

GRAND TOTAL 1,322,580 1,060,953 1,323,105


Program Descriptions & Budgets Program Management Office (PMO)

Manages the planning, design, construction, and commissioning of the EchoWater Project, which will provide

the facilities required to meet the NPDES permit issued to SRWTP in December 2010. PMO is led by Regional

San staff, assisted by consultant expertise and resources, and integrated with substantial Regional San

resources. Responsible for the overall management and coordination of the large number of EchoWater

projects with their associated design consultants, construction managers, and contractors. PMO is expected to

provide program services at least until the new facilities are constructed and commissioned by May 2023.

The 2014-15 estimated year-end is $79,154 under budget and consists of savings in unspent costs associated

with the PMO.

Salaries and benefits are 95 percent of budget and include COLAs. Increase in salaries and benefits are due to

filling a vacant position for the EchoWater Project.


Budget:


End:

FY 2015-2016 Budget

Request:


Telephone Services 28,984 11,061 13,500


Other 56,663 8,850 45,160

GRAND TOTAL 1,285,417 1,206,263 1,288,714


Program Descriptions & Budgets Office of Public Affairs

Provides internal and external communications and public affairs management. Responsible for education of

and outreach to customers, stakeholders, Board of Directors, and policymakers. Implements communication

strategies for projects; produces print and internet-based communications; facilitates media relations;

oversees Proposition 218 activities; and coordinates public meetings, communications training, event

planning, and strategic communications.


to one position that was vacant for a portion of the fiscal year and savings in printing services, postage, and

public-relations services.

Salary and benefit costs are 51 percent of the budget and include COLAs. Other line items include

communications-consultant contracts related to the EchoWater Project; mailing and print costs for one

newsletter direct-mailed to all Regional San customers; and several minor contracts for professional design

assistance and public-relations support. Staff time in support of SASD activities is reimbursed to Regional San

by SASD. All service and supply costs for SASD activities are contained in the SASD budget.


Budget:


End:

FY 2015-2016 Budget

Request:


Mail & Postage Services 175,000 136,886 175,000

Advertising 140,000 36,987 130,500

Public Relations Services 137,250 62,924 112,500

Other Professional Services 91,800 50,171 57,800

Other 127,667 111,473 135,772

GRAND TOTAL 1,302,684 924,898 1,258,201


Capital Fund Budget Summary

he Regional San Capital Fund Budget is $387,465,082. This is a $194.5 million increase from the 2014-15

budget. The 2015-16 budget includes $261.8 million for the EchoWater Project.

Funding for the Capital Budget is derived from sewer impact fees charged to new users of Regional San

facilities, a portion of the monthly service charge for projects benefiting existing users, cash, interest earned

on cash balances, and bond proceeds. Effective July 1, 2015, the monthly service rate will increase from

$29.00 per month per equivalent single family dwelling (ESD) to $32.00 per month per ESD. Of this amount,

$11.00 per month per ESD is specifically earmarked for the EchoWater Project.

Things to note regarding the 2015-16 capital budget are:

Impact Fee Revenue – Budgeted at $11.5 million reflects the increase in impact fees charged per ESD effective July 1, 2015.

Impact fees from Infill areas - $5.2 million. Impact fees from New areas - $6.3 million.

Debt Service on outstanding bonds – Approximately $89.4 million.

Reserves – Reserves increased from the 2014-15 budget by $3.8 million.

Working Capital is the difference between current assets and current liabilities and is an indication of

short-term financial strength. The 2014-15 estimated working capital of $219.6 million includes $150

million of bond proceeds from the 2015 Revenue Bond issue. The 2015-16 Capital Fund Budget results

in a decrease of about $39.5 million to the Capital Fund working capital due to the EchoWater Project,

bringing the available balance to about $180 million.

A complete list of the projects planned for design or construction during 2015-16 can be found on pages 30

and 31.

T


Official Capital Fund Budget Schedule

FISCAL YEAR 2015-16

FUND # 262A

CAPITAL BUDGET 3030000

REVENUES

Monthly Service Charges 88,587,404 111,220,487 92,501,488 129,991,533

Impact Fees 7,346,376 9,717,732 9,717,732 11,521,710

Other Revenue 63,763 0 7,599,443 0

Interest Income 1,396,413 1,130,759 1,002,724 240,000

Total Capital Revenues 97,393,956 122,068,978 110,821,387 141,753,243

EXPENSES

Services & Supplies 39,266,582 81,137,668 67,050,903 87,865,096

Depreciation & Amortization 2,089,825 2,355,000 2,355,000 2,900,000

Other Charges 4,128,576 981,606 0 1,436,606

Debt Service

Principal 22,600,000 23,425,000 34,635,000 30,100,000

Interest 54,455,622 56,773,000 42,847,946 59,300,000

Fixed Assets

Land 0 0 0

Improvements 7,670,820 30,643,706 15,563,207 208,763,380

Equipment 0 0 0

Contingency 0 0 0

Total Capital Expenses 130,211,425 195,315,980 162,452,056 390,365,082

Depreciation/Amortization Offset (2,089,825) (2,355,000) (2,355,000) (2,900,000)

Capital Fund Budget 128,121,600 192,960,980 160,097,056 387,465,082

Bond/Loan Proceeds 0 150,000,000 210,000,000

SOURCE OF WORKING CAPITAL (30,727,644) (70,892,002) 100,724,331 (35,711,839)

Reserve Contribution 0 0 3,818,606

Net Change Increase (Decrease) (30,727,644) (70,892,002) 100,724,331 (39,530,445)

Beginning Working Capital 149,567,596 295,218,128 118,839,952 219,564,283

Ending Working Capital 118,839,952 224,326,126 219,564,283 180,033,838

Capital DetailsActual

2013-14

Estimated

2014-15

Requested &

Recommended

2015-16

Budget

2014-15


Capital Projects List

Project Name Project Description (and status) Total Project

Budget 2015-16 Budget

Arden Parallel Force Main Scour study review and Central Valley

Flood Protection negotiations regarding the old force main. (Evaluation)

$38,700,000 $10,000

Arden Parallel Force Main Mitigation Project

Monitoring costs. (Post-Construction) $1,500,000 $70,000

South River Pump Station Flood Protection Project

Increase flood protection by constructing levee around the pump station. (Design)

$18,000,000 $5,425,000

Regional San/SPA/City Recycled Water Project

Construct a recycled water transmission pipeline to convey recycled water to the SPA Cogeneration Plant located near 47th Avenue and Franklin Blvd. (Design)

$17,900,000 $8,251,000

Digester Rehabilitation Implementation of rehabilitation strategy for active digesters. (Design/Construction)

$13,614,500 $6,055,000

Digester Gas Management System Modifications

Rehabilitation and upgrades to existing gas management system to improve performance and ensure regulatory compliance. (Planning)

$2,000,000 $750,000

Cathodic Protection System Rehabilitation

Repairs to cathodic protection systems for critical piping systems to maintain system integrity and extend useful life. (Planning)

$1,900,000 $715,000

BioGas Enhancement - FOG Facility

Implementation of activation work to address material incompatibility issues and maintenance difficulties experienced during initial operation. (Construction)

$3,562,159 $240,000

Mixed Sludge Valve Replacement

Replace critical and necessary valves in the Mixed Sludge system that have failed or reached the end of their useful life. (Construction)

$700,000 $300,000

PCCS Operating System Migration to Windows 7

Migrate Plant Computer Control System from Solaris to Windows 7. (Implementation)

$3,900,000 $1,214,000

Ethernet Input/Output Bus Converter Replacement

Replace existing old and obsolete Ethernet Input/Output bus controllers in areas 8 & 13. (Construction)

$5,000,000 $500,000


Capital Projects List Line Dedicated Lined Disposal Unit 5

Install new liner and reactivate DLD-5 to provide additional solids handling capacity. (Design)

$18,500,000 $1,900,000

Emergency Storage Basin-D Rehabilitation

Replacement of existing failing membrane liner necessary to perform treated water diversions required pursuant to the plant's NPDES discharge permit. (Design)

$20,500,000 $926,667

N19 Arden Pump Station Wet Well Rehabilitation

Rehabilitation of the pump station wet well and related appurtenances to improve reliability and extend the facilities useful life. (Construction)

$459,480 $459,480

Sump 2/2A Reimbursement to City of Sacramento

Annual payments to the City of Sacramento related to pump station improvements and pursuant to cost share Agreement No. 52085, Resolution SR-1657. (Construction)

$11,632,120 $581,606

City of Folsom Cost Share - Highway 50 Tunnel

Cost share with the City of Folsom for tunnel under Highway 50 to serve new development area with the City's expanded Sphere of Influence. Tunnel will be used initially by the City and be used for regional conveyance in the future. (Planning)

$520,000 $520,000

Advanced Wastewater Treatment Plant Pilot Study Project

Pilot testing of advanced treatment technologies to refine design information for the selected technologies to meet the new NPDES permit requirements. (Operation)

$22,900,050 $1,600,000

EchoWater Project Planning, design, and construction costs for upgrades required by the new NPDES permit. (Planning/Design/Construction)

$1,857,409,321 $261,779,133

Allowance for Interceptor Small Projects

Provides for smaller capital projects for the interceptors. (Planning)

$5,000,000 $550,000

Allowance for SRWTP Small Projects

Provides for smaller capital projects for the SRWTP. (Planning)

$5,000,000 $620,000

Interceptor Projects in Close-out Process

Upper Northwest Interceptor Section 1 & 2 Ground Improvement Project Phase 2 (Construction)

$124,000,000 $130,000

TOTAL CAPITAL PROJECTS $2,172,697,630 $292,596,886


Reserve Schedule

Reserve Name Reserve Description Reserves Balance 6/30/15

Adopted Decrease

Adopted Increase

Total Reserves For Budget Year

Regional San - OPERATING FUND #261A

General

For unexpected expenses not included in budget. Targeted at 25 percent of budget.

$27,221,650 $0 $978,350 $28,200,000

Rate Stabilization

Required by bond documents to ensure 120 percent coverage met.

23,200,000 0 0 23,200,000

Facilities Closure

State-mandated to finance closure costs of SSBs and DLDs and required corrective action.

10,543,592 0 313,832 10,857,424

Equipment Replacement

Replacement of existing heavy equipment.

1,000,000 0 50,625 1,050,625

Economic Incentive Funds Industrial Incentive Program.

3,500,000 0 0 3,500,000

Rate Assistance Program

Endowment to generate revenue to fund SLRAP.

6,505,000 0 0 6,505,000

TOTAL $71,970,242 0 $1,342,807 $73,313,049

Regional San – CAPITAL OUTLAY #262A

Expansion Mitigate shortfalls in sewer impact fees due to growth slowdown.

$20,908,124 $0 $0 $20,908,124

Replacement

Portion of future rehabilitation and replacement of existing facilities.

75,429,250 0 3,818,606 79,247,856

Debt Service Stabilization

Covers fluctuations in debt service for Regional San's variable rate bonds.

5,864,554 0 0 5,864,554

TOTAL $102,201,928 $0 $3,818,606 $106,020,534

GRAND TOTAL $174,172,170 $0 $5,161,413 $179,333,583


Appendix A

Summary of Positions

Following is a summary of the positions with class designations allocated to the Sacramento Regional County Sanitation District, as of April 1, 2015. The number of positions remained the same from the prior year; however, to meet operational needs some positions may have been reallocated to different positions. Other reallocations may occur for the same reason in this fiscal year.

Class Number Job Class Number of Positions

27539 Account Clerk Lv 2 2.0

27548 Accountant 1.0

27560 Accounting Mgr 2.0

27610 Accounting Technician 3.0

27603 Admin Svcs Officer 1 3.0



28912 Administrator Sanitation Districts Agenc 1.0

27706 Assoc Civil Engineer 36.0

27914 Assoc Electrical Engineer 3.0

28141 Assoc Mechanical Engineer 2.0

27711 Asst Engineer - Civil Lv 2 18.0

28144 Asst Mechanical Engineer Lv 2 1.0

28159 Asst Mechanical Maint Technician 7.0

27636 Biologist 2.0

27640 Building Maintenance Wkr 1.0

27628 Business Citizen Assistance Officer 1.0

27630 Business Citizen Assistance Rep Lv 2 1.0

27659 Carpenter 2.0

27719 Chemist 4.0

28901 Chief Financial Administrative Officer 1.0

29497 Chief Scientist 1.0

27790 Chief Storekeeper Rng B 2.0

27783 Clerical Supv 1 1.0

29017 Communication and Media Officer 1 2.0

29018 Communication and Media Officer 2 2.0

28990 Contract Services Officer Lv 2 2.0

29208 Contract Services Specialist Lv 2 3.0

29491 Dep Director Sac Reg Co San Dist Ops 1.0

29443 Dir of Internal Services 1.0

29410 Dir of Policy and Planning 1.0

29414 Dir of Sac Reg Co Sanitation Dist Ops 1.0

27932 Electrician 21.0

27961 Engineering Technician Lv 2 2.0

27930 Environmental Laboratory Analyst 9.0

28953 Environmental Program Manager 1 2.0


Appendix A (continued)

Summary of Positions 28954 Environmental Program Manager 2 1.0

28957 Environmental Specialist 3 7.0

28958 Environmental Specialist 4 4.0

28956 Environmental Specialist Lv 2 3.0

27953 Executive Secretary 1.0

27646 Facilities Manager 1.0

29291 Geographic Info System Analyst Lv 2 1.0

28080 Industrial Waste Inspector Lv 2 1.0

27517 Information Technology Analyst Lv 2 9.0

27514 Information Technology Mgr 1.0

27522 Information Technology Technician Lv 2 1.0

28172 Maintenance Wkr 2.0

28156 Mechanical Maintenance Mgr 1.0

28157 Mechanical Maintenance Supv 13.0

28158 Mechanical Maintenance Technician 24.0

28201 Natural Resource Specialist Lv 2 3.0

28199 Natural Resource Supv 1.0

28206 Office Assistant Lv 2 2.0

28216 Office Specialist Lv 2 Conf 2.0

28229 Painter 4.0

28238 Principal Civil Engineer 1.0

28244 Principal Engineer/Architect 3.0

28245 Principal Engineering Technician 9.0

27515 Principal Information Technology Analyst 1.0

28399 Safety Specialist 3.0

29434 Sanitation Dist Asst Business Analyst 1.0

29484 Sanitation Dist Data Mgt Tech Lv 2 1.0

29421 Sanitation Dist RTPC Systems Supv 1.0

29436 Sanitation Dist Sr Business Analyst 1.0

29485 Sanitation Dist Sr Data Mgt Tech 1.0

29422 Sanitation Dist Sr RTPC Systems Analyst 2.0

29400 Sanitation District Interceptor Supt 1.0

28568 Sanitation District Lab Mgr 1.0

29403 Sanitation District Lab QA Officer 1.0

29457 Sanitation District Public Affairs Mgr 1.0

29305 Sanitation District Purchasing Mgr 1.0

29495 Scientist Lv 2 1.0

28378 Secretary 4.0

27541 Sr Account Clerk 1.0

27545 Sr Accountant 1.0


Appendix A (continued)

Summary of Positions 27564 Sr Accounting Mgr 1.0

27526 Sr Administrative Analyst Rng B 1.0

27709 Sr Civil Engineer 23.0

28991 Sr Contract Services Officer 2.0

27915 Sr Electrical Engineer 2.0

27958 Sr Engineering Technician 4.0

27931 Sr Environmental Laboratory Analyst 8.0

27936 Sr Equipment Mechanic 1.0

27516 Sr Information Technology Analyst 12.0

27521 Sr Information Technology Technician 1.0

28068 Sr Instr Cntrl System Engineer 1.0

28142 Sr Mechanical Engineer 1.0

29093 Sr Natural Resource Specialist 3.0

28203 Sr Office Assistant 19.0

28212 Sr Office Specialist 1.0

28211 Sr Office Specialist Conf 1.0

29087 Sr Safety Specialist 1.0

28374 Sr Stationary Engineer 1.0

28966 Sr Training and Development Specialist 2.0

29201 Sr Wastewater Treatment Plant Operator 22.0

28567 Sr Water Quality Control System Tech 7.0

28376 Stationary Engineer 1 8.0

28377 Stationary Engineer 2 2.0

28364 Stock Clerk 2.0

28468 Storekeeper 1 4.0

28469 Storekeeper 2 2.0

27959 Supv Engineering Technician 2.0

28965 Training and Development Specialist Lv2 1.0

28978 Treatment Plant Operations & Maint Mgr 1 2.0

28979 Treatment Plant Operations & Maint Mgr 2 1.0

28503 Treatment Plant Operator 3 1.0

28504 Treatment Plant Operator 4 (SRWWTP) 1.0

28502 Treatment Plant Operator Lv 2 11.0

29200 Wastewater Treatment Plant Operator Lv 2 35.0

29202 Wastewater Treatment Plant Ops Supv 12.0

28565 Water Quality Control System Supv 1.0

28566 Water Quality Control System Technician 9.0

28085 Water Quality Laboratory Assistant 1.0

28569 Water Quality Laboratory Supv 3.0

TOTAL POSITIONS 480.0

attachment c - regional san

Documents