OC San Commits to Investing into OC’s Regional Wastewater Infrastructure
Post Date:07/28/2022 4:14 PM
This month OC San’s Board of Directors approved a two year budget for fiscal years 2022-23 and 2023-24. This budget lays out the framework of OC San’s activities during the next two years and serves as a source of information for OC San’s Board of Directors, our ratepayers, and our employees. This budget includes the operational, capital, and debt service expenditures necessary to support our mission and execute the Strategic Plan adopted by our Board of Directors in November 2021.
OC San’s fiscal year 2022-23 total Operating and Capital Improvement Program (CIP) budget is $476.5 million, which is an increase of $61 million (14.7 percent) compared to the fiscal year 2021-22 budget. The Operating Budget increase is primarily driven by increased chemical, utility, and infrastructure maintenance/repair costs. The historically high inflation that has impacted the nation’s economy over the past year is also driving up OC San’s cost of doing business.
Here are some areas of focus for OC San for the next two years:
- Operational Readiness – OC San continues to a look ahead, preparing for our future infrastructure needs and for emergency events such as line breaks, earthquakes, and potential cybersecurity breaches. We are updating our Business Continuity Plans and conducting tabletop exercises for emergency scenarios to allow us to respond quickly and effectively without compromising our mission or levels of service. This focus on preparation, response, and recovery has served us well during the COVID-19 pandemic as we continued to provide uninterrupted service while making progress on important projects to ensure that we continue to deliver our mission into the future.
- Expanded Recycling Efforts – In partnership with the Orange County Water District (OCWD), our agency continues to move forward with the final expansion of the Groundwater Replenishment System (GWRS). Scheduled for completion in 2023, the final expansion will allow our agencies to recycle 100 percent of OC San’s reclaimable wastewater, making the GWRS capable of providing a reliable water source for over one million people in central and northern Orange County.
- Headquarters Complex – Construction of our headquarters building which will house OC San’s centralized administrative functions is underway and scheduled to be completed in late 2023. Efforts are also ongoing to construct the pedestrian bridge that will connect the new building with Reclamation Plant No. 1. When the new headquarters is complete, outdated office buildings currently located on the plant site will be demolished, freeing up space for future wastewater treatment infrastructure.
- Capital Improvement Program (CIP) – OC San continues to construct essential wastewater infrastructure, investing $500 million in projects in the next year and a half. These projects are focused on upgrading aging infrastructure incorporating climate resiliency, seismic risk, and maximizing resource recovery. While the COVID-19 pandemic has resulted in operational modifications, OC San’s CIP has not been significantly impacted
- Infrastructure Reliability and Asset Management – It is essential for OC San’s infrastructure to operate continuously day and night. To ensure the reliability of our $11 billion wastewater system, we evaluate our infrastructure annually as part of the Asset Management Plan. This annual plan updates the state of OC San’s assets and includes integrated planning for recurring maintenance, repairs, and CIP implementation. The plan lays out how we will operate and maintain those assets to deliver the required level of service at the lowest lifecycle cost with an acceptable level of risk. The proposed budget includes $32.1 million in repairs and maintenance for next year.
Details are available in the full budget book.